Under some circumstances, an organization may need to change the unit cost for inventory that has already been added to the system. For example, an organization may want to add inventory to the system using an estimated unit cost and then adjust the inventory at a later date when the actual cost is known.
However, since users cannot modify a Product Inventory Ledger Entry (PILE) after it has been created, the organization needs to manually create adjusting PILE records to modify the existing inventory.
The process for adjusting the unit cost for inventory varies depending on whether the product uses the LIFO (Last-In First-Out) or FIFO (First-In First-Out) cost method or the Average Cost method. Refer to one of the following sections for information on a particular process: