Minimum Version Required: 25.06
Pre-Conditions
Encompass System Access: User must have appropriate permissions to view inventory valuation reports and import invoices.
Item Costing Method: The product in question (e.g., Item 512) must be configured to use the Average Cost costing method. This troubleshooting guide is not applicable for items using the FIFO or LIFO costing methods, as FIFO adjustments are handled differently.
UOM Consistency: Ensure the Unit of Measure (UOM) for the item is correctly set up for purchasing, inventory, and consumption (e.g., purchased in kg, inventoried in lbs, used in lbs, with appropriate conversion factors).
Open Accounting Period: The accounting period corresponding to the desired adjustment date must be open in Encompass. If it's closed, it will need to be rolled back to allow transactions.
Steps
Identify the Pending FIFO Adjustment Value: Navigate to the Inventory Valuation Report in Encompass. Set the End Date of the report to today's date to obtain the most current PendingFIFOAdj value for the affected product (e.g., Item 512). Note the exact value of the PendingFIFOAdj. This value represents the discrepancy you need to correct. Prepare the Invoice Import File: Create a spreadsheet (e.g., a CSV or Excel file) for the invoice import. This file will contain two lines for the same product: one with a positive quantity and one with a negative quantity, along with the LaidInCost to offset the PendingFIFOAdj. The required columns for the import file are: CustomerID: Enter the relevant customer ID. Date: Enter the date for the adjustment. It is recommended to use the current date or a date within an open accounting period, such as the original transaction date (e.g., 6/2/2025). Your accounting team should confirm the appropriate date. ProductID: Enter the ID of the affected product (e.g., 512). NumUnits: This column will have two entries for the same ProductID: One row with 1 (positive one). One row with -1 (negative one). LocationID: Enter the ID of the inventory location (e.g., "Main Brewery"). LaidInCost: This is the critical field for the adjustment. If the PendingFIFOAdj value from Step 1 is negative, enter the absolute value of PendingFIFOAdj into the LaidInCost field for the row with the positive NumUnits (i.e., 1). The LaidInCost for the negative NumUnits row should be 0 or left blank. If the PendingFIFOAdj value from Step 1 is positive, enter the absolute value of PendingFIFOAdj into the LaidInCost field for the row with the negative NumUnits (i.e., -1). The LaidInCost for the positive NumUnits row should be 0 or left blank. Note: Do not include any other price information (e.g., Full Price). This specific type of adjustment relies solely on LaidInCost to affect the inventory value without altering the sale price. Perform the Invoice Import: Navigate to the Invoice EDBL import routine in Encompass (do not use InvoiceOrder EDBL). Upload the prepared import file. Follow the on-screen prompts to complete the import process. Verify the Adjustment: After the import is complete, re-run the Inventory Valuation Report for the affected product. Confirm that the PendingFIFOAdj for the item is now cleared or significantly reduced, and the inventory value accurately reflects the expected cost (e.g., 101 lbs at $12.43/lb). Review your financial reports (e.g., Trial Balance, COGS) to confirm the $53,606.82 entry has been corrected or reversed by the import. If the issue persists, re-check the Inventory Valuation Report's PendingFIFOAdj value and confirm your import file's LaidInCost, NumUnits, and LocationID columns match Step 2 exactly before re-running the Invoice EDBL import.
Fields And Definitions
Average Cost (Costing Method): An inventory costing method where the cost of goods available for sale is calculated by dividing the total cost of goods by the total number of units available. This average cost is then used to determine the value of both inventory and cost of goods sold.
FIFO (First-In, First-Out): An inventory costing method that assumes the first units purchased or produced are the first ones sold.
Pending FIFO Adj (Pending FIFO Adjustment): A value displayed in the Inventory Valuation report that represents a discrepancy between the system's calculated inventory value (often based on average cost) and what it would be if a FIFO costing method were applied. For average cost items, this adjustment is recognized but not automatically posted as an invoice.
InvoiceTrans (Invoice Transaction): A specific line item on an invoice that records details of a product transaction, including quantity and cost/price.
NumUnits: The number of units of a product involved in a transaction.
LaidInCost: The total cost of an item, including its purchase price and any additional costs such as freight, duties, or other landed costs. This field is used in invoice imports to directly influence the inventory value.
Inventory EDBL (Electronic Data Batch Load): A utility or routine within Encompass used for importing invoice data in bulk.
Best Practices
Regular UOM Review: Periodically review and confirm that the Unit of Measure (UOM) settings for all inventory items are correct and consistent across purchasing, inventory, and sales/production processes to prevent discrepancies.
Costing Method Understanding: Ensure your team fully understands the implications of different costing methods (Average Cost, FIFO, LIFO) on inventory valuation and financial reporting.
Batch Adjustment for Historical Issues: For significant historical discrepancies, it may be necessary to process a single, larger adjustment to bring the inventory value in line with reality rather than attempting to correct every past transaction individually.
Test Environment: If possible, test complex adjustments or new import processes in a non-production (test) environment before applying them to your live system.
Documentation: Maintain clear internal documentation of all significant inventory adjustments, including the reason for the adjustment, the values involved, and the date it was performed.