When using Average Costing, certain conditions can lead to a product having Inventory Value even when Inventory Quantity is zero.

Two common reasons for this condition are:
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1. Selling inventory prior to confirming the related purchase
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2. Incurring significant delays in running End of Day

Either of these can result in a lag in updating the moving average which can result in over/under application of cost of goods sold. This valuation can be corrected with an in/out purchase.

If Inventory Value is positive:
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1. Create purchase under the vendor you use for production orders
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2. Add the product(s) that need revaluation
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3. Add quantity of -1 and populate FOB with the value needing to write-off
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4. Add that same product again with a quantity of 1 and FOB = $0
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5. Add a non-inventory product mapped to an inventory adjustment COGS account
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​6. Add quantity of 1 and FOB = value in Step 3
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7. Ensure purchase total = $0 and check purchase accounts for desired GL impact
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8. Confirm purchase

If Inventory Value is negative:
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1. Create purchase under the vendor you use for production orders
​
2. Add the product(s) that need revaluation
​
3. Add quantity of 1 and populate FOB with the value needing to write-up
​
4. Add that same product again with a quantity of -1 and FOB = $0
​
5. Add a non-inventory product mapped to an inventory adjustment COGS account
​
​6. Add quantity of -1 and FOB = value in Step 3
​
7. Ensure purchase total = $0 and check purchase accounts for desired GL impact
​
8. Confirm purchase