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.

    • Related Articles

    • How To: Create a Full Physical Inventory

      Regular physical inventories help maintain accurate on-hand quantities and ensure reports reflect true inventory valuation. Permissions: View and edit Physical Inventories System Preparation: For the most accurate count, complete the following ...

    • FAQs: What is the Estimated Variance Cost in the Physical Inventory Editor?

      Question: What is Estimated Variance Cost in the Physical Inventory Editor? Answer: Estimated Variance Cost is calculated by multiplying the variance quantity by the item’s last calculated cost for that store. This value is an estimate only. The ...

    • How do I manually adjust on-hands (track waste)?

      Manually adjusting on hand quantities is used to correct discrepancies or changes in inventory levels that cannot be accounted for through regular transactions (sales, purchasing or physical inventory adjustments). Purpose of Manual Adjustments ...

    • How To: Create a Count Sheet?

      Count Sheets help ensure that no items are missed during Physical Inventory, especially for Food and Beverage operations. Permission to view and edit Count Sheets 1. Navigate to Count Sheets Go to Physical Inventory > Count Sheets and select Create ...

    • Troubleshooting: Variances in a Physical Inventory

      A Physical Inventory shows variances, and you need to identify the cause Most variances occur because of: Missing or committed receiving/invoicing Missing or unprocessed sales The Item History Report is the most reliable tool for determining where an ...

    • Popular Articles

    • How To: Find Your Yellow Dog Inventory Version

      Understanding which version of Yellow Dog Inventory you're using is essential when exploring new features, as some enhancements and functionalities are specific to certain versions. All client types can benefit from knowing their Yellow Dog Inventory ...

    • How do I use Par & Re-Order Points?

      What is a Reorder Point? The minimum quantity you would like inventory of the item to be before ordering more. Items must go below this level to trigger reorder. Items set to 0 will not reorder until you go into negative stock. This is not ...

    • Tips & Tricks: How do I download and install drivers for my Zebra Printer?

      **As a note: Admin rights will be required to complete this task. If you do not have admin rights on your PC, please contact your IT for assistance** ZD410 Desktop Printer Support Site 1. Navigate to Drivers: 2. Select Zdesigner V. 5 Driver for ...

    • How To: Swap the On-Hand/Parent Size (Edit Base Unit)

      When managing items with multiple sizes, it’s essential to configure them correctly. The on-hand/parent size should always represent the base unit or smallest measurement, while additional sizes should be created for purchasing or counting sizes. If ...

    • What are Bins and how can I use them?

      Bins are supplemental location markers. Unlike flags they do not have to be created prior to assigning them to items and are primarily used in in the stores tab to identify more precisely where an item is located. They can also be used in Physicals ...