RetailEdge tracks inventory costs in a number of places, so when a cost is incorrectly entered you will need to adjust it in one or all of the following places.
1. Purchase Order
2. Receiving History
When you create a NEW item on a purchase order, RetailEdge will automatically create the item in your inventory with a zero (0) quantity. If you make a mistake on cost or price and post the record, the item price and cost in inventory will be incorrectly set. Since inventory price and cost are not modified until a PO is received and updated, the correct pricing will be set on the inventory item until this is done. If you need to modify this price and/or cost because you are either adding the item to another purchase order or pre-selling the item, then you should go directly into inventory and modify the price/cost of the item.
If you create an item directly in receiving and make a mistake to the cost or price and don't catch it before you update the item into inventory (price you should be able to catch when you print tags), RetailEdge will have a record that you received the item at the incorrect cost in the receiving log that is used for historical receiving reports. This can be simply corrected by negative receiving the item (adding the item to receiving with a negative quantity to receiving) and then re-receiving it at the correct price/cost. This should be done as a two step process to ensure that the item is updated in the correct order.
It should be noted that if you are using this process to perform the correction, you do not need to adjust the average cost of the item. The act of updating the inventory from receiving will adjust the average cost automatically.
If you need to make an adjustment to item cost or price information in inventory, and the item is one that is not received through the receiving/update process (services, shipping, etc.). Then you can simply edit the cost and price of the item in inventory. Make sure to change the inventory average cost as appropriate at the same time. Inventory average cost that is used to calculate the cost of goods sold when the item is sold.
If you need to make an adjustment to the cost of an item sold and it is on the same day as the sale, simply void the sale, make the change to the cost (and average cost if appropriate) in inventory and then resell the item. Posted sales (after a closing has been done) can't be voided. So to correct the cost of an item sold, return the item (negative quantity of the original sale on the sales screen), then post the sale to cash (payment method does not really matter), then change the cost (average cost) in inventory and resell the item.
Although RetailEdge allows you to make these corrections after the fact, these types of corrections really emphasize the fact that you should run current receiving reports BEFORE you update your inventory. Once you have made the mistake and updated your inventory, then you have to make potential corrections to receiving histories, inventory and sales.