New Inventory Spend Categories

 Listed below are new inventory spend categories have been created to improve visibility into inventory write offs and adjustments.

• Inventory - Shrinkage (SC10744) - Used to reduce or increase the value of inventory when your on-hand quantity is lower or higher than the expected amount.  This could be due to loss, theft, or clerical error. 
• Inventory - Cost Adjustment (SC11040) - Used to reduce or increase inventory due to changes in average cost, or other value adjustments (i.e. manually increasing inventory that was not marked with ET131).  
• Inventory - Obsolete (SC11039) - Used to fully reduce the value of inventory due to obsolescence. 
• Inventory - Spoilage (SC11041) - Used to reduce inventory for items that are passed their expiration date (e.g. pharmaceuticals) 

When adjusting inventory balances with a cost center journal, you will need to record a debit using the appropriate spend category above, with ledger account: 61020 Cost of Sales. The credit side will be ledger account 15000 Inventories to reduce your inventory balance.