Question
Review the underlined segment of the following statement to determine whether it is correct. If it is not, select the answer that makes the statement correct.
Inventory adjustment journals allow you to add cost to an item when you add inventory, and then automatically post the additional cost to a specific general ledger account.
The underlined segment is: Inventory adjustment
- A. No adjustment required. Correct
- B. Tag counting
- C. Movement
- D. Transfer
Explanation
With an inventory adjustment journal you can add cost when you add inventory, and the extra cost is posted automatically to the general ledger account defined by the item group posting profile, so the statement is correct. A movement journal also lets you add cost, but you must allocate it manually by specifying a ledger offset account. Transfer journals move items without cost implications, and tag counting journals only assign tags to count lots.
