Why is my material adjustment showing a material cost of zero?

All material adjustments need to be costed in order for your inventory valuations and COGS to be correct.

To find all zero costed material adjustments, please see this article: How do I find my uncosted material adjustments?

In order to troubleshoot you'll need to find out which type of adjustment this is: you'll find this under the Reason column.

Purchase Adjustments

These are the easiest to repair as they usually indicate that there is a data entry issue with the expense that this material is linked to. For the example below, the 14 Oct 16 purchase adjustment has a unit price of $0.00, which is affecting the following manufacture on the 30 Nov 16.

To fix, click on the edit icon on the right hand side of the row and then locate the material line item entry in the expense and fix any issues with the unit price.

Manufacture Adjustments

A manufacture adjustment with a zero unit cost can be a result of two situations:

1. Error with a previous purchase price. In the example below, the expense before the manufacture has a unit price of 0.00. This has resulted in the manufacture on the 30 Nov to also have a unit price of 0.00 as it is using up the zero valued stock added on 14 Oct. 

2. Material out of stock: In the example below, the manufacture on the 30 November uses up all stock purchased on the 29 Mar. As there is now no stock available, the Manufacture on the 1 Dec cannot have a unit cost calculated and is thus 0.00. To fix, the missing material stock needs to be added in as either a Purchase or part of the starting adjustment so that the 1 Dec has enough stock to have a cost calculated.

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