NSC | Correcting a Wrong Lot Number in a Bin Using Inventory Adjustments

Scenario

A company discovers that inventory was received into the correct bin but assigned to the wrong lot number. The team needs to move the quantity to the correct lot while keeping the financial impact as close to zero as possible.

This situation is common in environments that use:

• Lot-numbered inventory
• Bin management
• Average costing

If both a negative and a positive inventory adjustment are entered for the same item and date, cost recalculation can affect the estimated unit cost and create unexpected postings to COGS or the Inventory Adjustment account.

Solution

Use Inventory Adjustments to remove quantity from the wrong lot and add it back under the correct lot. To avoid unwanted variance, separate the transactions by date when needed.