Scenario:
The user wants to update or correct landed cost amounts on historical transactions—either due to incorrect entries or changes in actual landed expenses. This often applies to Item Receipts or Vendor Bills recorded in earlier periods.
Solution:
Adjusting historical landed costs can be complex due to potential cost recalculations, inventory valuation impact, and posting period restrictions. The best approach depends on the age of the transaction, volume of affected items, and whether the posting period is still open.
Recommended Best Practice
- Use Journal Entries
- For historical transactions—especially those in closed periods, involving multiple items, or dated several months back—the safest and cleanest method is to record a Journal Entry to adjust for the difference in landed cost.
- This avoids triggering unnecessary inventory cost recalculations or affecting historical transaction integrity.
Note: Make sure the Journal Entry posts to the correct account to maintain balance and audit traceability.
Alternative (Use with Caution)
Edit the Original Transaction
If:
- The transaction is recent (within an open period),
- Only a few items are affected, and
- You're confident about the downstream impact—
Then, you may consider editing the Item Receipt or Vendor Bill to apply the correct landed cost.
Note: Editing old transactions, especially those that affect inventory valuation, can trigger system-wide cost recalculations, which could significantly alter Cost of Goods Sold (COGS), gross profit, or other reporting metrics.
Closed Periods
If the transaction is in a closed accounting period, you cannot edit the original transaction without reopening the period—which is usually not recommended for audit and control purposes.
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