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NSC | Cost of Sales Adjustment Not Generated

edited Jul 17, 2025 11:56AM in Accounting / ERP

Scenario:

A user is trying to understand why the Cost of Sales Adjustment appears on some transactions but not on others. They want to know what triggers the system to generate this adjustment.

Solution:

Cost of Sales Adjustments are triggered when there are underwater sales—transactions where the system does not yet have a cost to associate with the item at the time of sale. In such cases, the cost is temporarily skipped, but once the cost becomes available (typically through an Item Receipt), the system retroactively adjusts the cost via a Cost of Sales Adjustment.

To help you better understand how this adjustment works, I’ve outlined a sample scenario below.

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