So this latest HS update has added new option anytime you edit a serial item cost. You are now prompted with a Question if you would like to also create an AP credit. (This will be a helpful change to the process so you do not have to go Create your AP credit as a separate step.)
Create AP Credit?
No- Adjustment Only
So a few things happen when you edit serial items costs. If you are making an adjustment only, The RPS system automatically reduces the appropriate Inventory account. That would be a credit in the amount of the difference in cost. The other half of the entry will increase your Inventory adjustment account. The accounts will come from your G/l setting for the product location.
For this piece, I lowered the cost by 50 dollars
When I view the G/l entry, this is what it shows.
Yes- Create AP credit
When you answer Yes to the a/p credit, The same adjustment takes place where RPS will lower Inventory and add to Inventory adjustment account.
But it will also create an AP credit as well. After you select your Vendor, RPS will pop up the AP credit screen:
For the posting you will want to use your Inventory adjustment account to relieve the amount.
That way you wont end up with anything in the Inventory COMS adjustment account .
This is what the entry will look like when you post the credit:
If you have done this correctly, the net change is that the Inventory Asset account will be lowered (credited)by the amount of the cost change. And the Accounts payable will decrease(debited) by your credit total.