How Cost Adjustment Works in iDempiere

The Cost Adjustment in iDempiere lets you manually adjust the cost price of products in inventory. This is used when historical or system-calculated costs need correction — for example after an audit, pricing change, or reconciliation.

Cost Adjustment Importance

• Corrects product cost values without directly editing underlying cost tables
• Ensures inventory valuation accuracy
• Drives correct profit, margin, and cost accounting
• Creates GL postings for cost differences automatically

Adjustments are transparent and auditable, with tracking in cost detail records.

Cost Adjustment Usage

In iDempiere, first navigate to the Cost Adjustment menu and create a new record to open the header. In the Cost Adjustment tab, enter essential document details including Document Type , Costing Method , Movement Date , and Currency/Currency Type (for proper financial postings and conversions). Once header details are complete, move to the Lines tab to select specific Products and Attribute Set Instances (lot/serial numbers), specify the New Cost Price, then click Process Inventory Count to apply adjustments across inventory records.

Adjustment Lines

Under the Cost Adjustment Lines tab:

• Select the Product whose cost you want to adjust
• System displays the Current Cost Price
• Enter your New Cost Price
• The difference between current and new cost is recorded
• Optionally add Charges for cost allocation (e.g., handling or restocking charges)

This lets you define exactly how much and why cost is changing.

Adjustment Processing

Once the lines are complete:

• Process (Complete) the Cost Adjustment document
• iDempiere calculates the difference between current and new cost price for each line
• A cost detail record is created to record this change
• Financial postings are generated to:
  • Adjust the product asset value
  • Post the cost difference to the configured cost adjustment account
  • If a specific charge account is selected for a line, that account is used instead of the default cost adjustment account.

The Cost Adjustment in iDempiere allows businesses to manually correct product cost prices and ensure inventory valuation and financial records reflect the most accurate cost data. It supports key costing methods and creates both cost detail and accounting entries automatically.