Background: Inventory Adjustment Codes Maintenance

Use the Inventory Adjustment Codes Maintenance (TIAC) program to add, change, copy, and delete codes that explain an inventory or cost adjustment and can be used as criteria for posting inventory adjustments to the general ledger. See Road Map for work flow.

Inventory adjustment codes are used by several different programs. This topic has these subtopics:

Inventory Adjustments
Cost Adjustments
Scrap Controlled Components

Inventory Adjustments

The Material Issues and Adjustments (IMI) program requires you to select an inventory adjustment code for each type of transaction:

  • Adjust on-hand and floor stock quantities

  • Consume items that you do not track as you use them; for example, reams of paper

  • Issue on-hand inventory to floor stock or floor stock to on-hand inventory

  • Move inventory between warehouse locations

  • Scrap components

  • Adjust component picking for a manufacturing order

You should be sure to set up codes that are appropriate for each of these transaction types. If you selected the Inventory interfaced to GL? option in the System Options Maintenance (XM) program (Inventory Control Options), you can use adjustment code as a posting criterion in the Posting Criteria Maintenance (XPC) program for the INVENTORY, INVTY ADJ, INVTY EXP, and WIP MATL postings.

If you are using the Automatic Location Warehouse Movement (bulk movement inventory) feature, you should set up at least one ALWM code and select it for the Default adj code for ALWM transactions option in the System Options Maintenance (XM) program (Inventory Control Options).

Cost Adjustments

In the Manufacturing Cost Adjustments (MCA) program, you can select an adjustment code to explain the reason for a cost adjustment. If you selected the Inventory interfaced to GL? option in the System Options Maintenance (XM) program (Inventory Control Options), you can use adjustment code as a posting criterion in the Posting Criteria Maintenance (XPC) program for the INVENTORY, LABOR ADJ, LABOR BURD, LABR BURAJ, and WIP ADJEXP postings.

Scrap Controlled Components

When you scrap a controlled component in the WIP Movement (WIPM) or Labor Entry (LLE) program, you can select a scrap code. The codes that display are inventory adjustment codes.