A unit cost adjustment lets you increase or decrease the recorded cost or price of a stocked unit — for example, to add a freight charge, apply a vendor rebate, or correct a keying error. This article explains when to use a cost adjustment and walks through each step of the process in Blackpurl.
When to Process a Unit Cost Adjustment
You may need to process a cost adjustment to a unit record for a number of reasons, including:
Adding a freight charge to the unit's cost
Applying a vendor rebate
Giving a discount on the unit record itself
Correcting a dollar-figure keying error made when the unit was received into stock
A cost adjustment can be either positive or negative depending on whether you need to increase or decrease the cost. It can be processed against a Vendor or Customer — which creates a Vendor or Customer document in your accounting package — or with no Vendor or Customer selected, in which case the transaction posts to a Stock Adjustment General Ledger instead.
How to Process a Unit Cost Adjustment
1. Navigate to the relevant stocked unit record, then scroll down to the B. Price & Cost Tracking section.
2. Click Actions, then select Add adjustment.
3. In the Add adjustment window, work through each field and complete as required.
Add Adjustment Field Reference
The Add adjustment window contains the following fields:
Field | Description |
A. Type | Select BASE or FACTORY OPTION. Base increases or decreases the cost of the unit itself. Factory Option appears on the unit record as an extra and is included in unit pricing when the unit is sold. |
B. Item/Description | A free-text field where you describe what the cost adjustment is for. |
C. Total Price | The amount by which the adjustment changes the Total Price of the unit. Note: this field does not create an accounting integration entry — it only changes the price you intend to sell the unit for. |
D. Total Cost | The amount by which the adjustment changes the Total Cost of the unit. For Australian and New Zealand dealers: enter the amount as GST-exclusive — you can nominate the applicable tax later in this process. |
E. Adjustment Date | Defaults to today's date. Change as required. If you have Accounting Integration, this is the date that will appear in the accounting package. |
F. Category | The category the cost adjustment maps to in your accounting package. For example, if you are adding a freight charge and want it to post to a specific General Ledger, create an Adjustment Category for freight. See Step 7 Overview: Understanding Accounting Integration — Categories for guidance. |
G. Vendor | If applicable, select the relevant Vendor. Selecting a Vendor bypasses the Category and creates an Accounts Payable (AP) document against that Vendor in your accounting package instead. A Vendor Reference Number field appears — enter the relevant reference (e.g. Invoice number). You can also nominate the applicable tax, which will integrate with the Vendor document. |
H. Customer | If applicable, select the relevant Customer. Selecting a Customer bypasses the Category and creates an Accounts Receivable (AR) document in your accounting package instead. A Customer Reference Number field appears — enter the relevant reference (e.g. Invoice number). You can also nominate the applicable tax, which will integrate with the Customer document. |
1. Once you have completed all required fields, click Save.
Result
After saving, the cost adjustment takes effect on the unit record — increasing or decreasing the cost and/or price as entered. The accounting outcome depends on whether the unit has been sold:
Unit not yet sold in Blackpurl: The cost adjustment integration transaction posts under the relevant Inventory General Ledger, with an offset to either the Stock Adjustment Category General Ledger, or — if you nominated a Vendor or Customer — to the relevant Accounts Payable or Accounts Receivable section.
Unit already sold in Blackpurl: The cost adjustment integration transaction posts under the relevant Cost of Goods Sold (COGS) General Ledger, with an offset to either the Stock Adjustment Category General Ledger, or — if you nominated a Vendor or Customer — to the relevant Accounts Payable or Accounts Receivable section.
Further Information: Accounting Integration
Receiving a Vendor Credit Payment (QuickBooks)
If a supplier pays a rebate credit directly to you — by bank deposit or cheque — QuickBooks does not allow you to allocate that payment directly onto the Vendor/Supplier Credit Note. Use the following two-step process instead.
Step 1: Receive the deposit onto the Accounts Payable Vendor account
Allocate the deposit funds onto the Accounts Payable account for the relevant Vendor/Supplier.
The transaction will appear on the Vendor/Supplier account.
Step 2: Raise an expense to match the deposit against the Credit Note
Go into the Vendor/Supplier account and click New Transaction, then select Expense.
Select both the Rebate Credit Note and your bank deposit and add them to the Expense.
Check your entries — the balance should be zero — then click Save.
Fixing a Keying Error Using a Cost Adjustment
You can use a unit cost adjustment to correct a dollar-figure error made when receiving a unit into stock. However, be aware that the cost adjustment does not alter the original Vendor Invoice in your accounting package — you must update that separately.
To correct the Vendor Invoice in your accounting package after processing the cost adjustment in Blackpurl:
1. Open the Vendor Invoice in your accounting package and edit the bill.
2. Add a new line and enter the cost adjustment amount, using the Inventory Adjustment General Ledger account as the offset. This matches the adjustment already made to the Unit Inventory General Ledger in Blackpurl.
3. Account for any applicable tax implications for your jurisdiction before saving.
The end result is that your Vendor Invoice reflects the correct amount, your inventory balance is correct, and the Blackpurl inventory adjustment entries offset each other — no extra expense is recorded.
