How To: Create a Cost Adjustment (Fix Calculated Cost)

How To: Create a Cost Adjustment (Fix Calculated Cost)

The Cost Adjustments feature allows users to correct inaccurate calculated costs resulting from improper item management, ensuring consistent inventory valuation and reporting.

All client types can take advantage of this feature, though it is recommended to only be used by high-level or admin employees.

Employee permissions should be assigned according to each employee’s required level of access:
  1. Cost Adjustment List – Allows the user to view the list of all cost adjustments.
  2. Cost Adjustment Editor – Grants access to open and view the Cost Adjustment Editor.
    1. Set On Hand – Enables the user to update on-hand quantities within a cost adjustment.
    2. Change Effective Date – Allows the user to modify the effective date of a cost adjustment.
Figure 1. Employee Permissions related to Cost Adjustments.




  1. Go to Physical Inventory > Cost Adjustments.
  2. Select Create New Cost Adjustment.
  3. Click to highlight the store for the Cost Adjustment, then click Select.
    1. You will only complete this step if you have multiple stores in your Yellow Dog Inventory.
  4. In the Accounting Code drop-down, select the account.
  5. Enter a Description and Reference in the corresponding fields.
  6. Select Add Item.
  7. Search for and click to highlight the item, then click Select.
  8. In the New Unit Cost field, enter the new calculated cost.
  9. Select Save, then review the Cost Adjustment for accuracy.
  10. Select Commit.
  11. In the confirmation pop-up, select Yes Commit.

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