The Cost Adjustment Source screen is used for setting up source codes for use in cost adjustments in inventory.

These codes are used in Inventory Cost Adjustments Entry. Cost adjustments are a way to add a dollar amount to an inventory item after it has been updated into the Item Detail File Maintenance. A good example is adding a freight amount to an inventory item after it has been posted with the quantity received. A cost adjustment can be entered, which will add a fixed dollar amount to the value of a specific inventory item and therefore increasing the unit cost of that item.

This screen also allows the user to set up a source code for identifying any cost adjustment entries. The user may also set up source codes for freight adjustment versus handling fee adjustment. The entry of a source code is an optional entry when the user enters cost adjustments.