Inventory Zero Out Costs Routine

Applies toFinancial Closing Procedures

AudienceAll users

Last updatedOctober 02, 2025

Occasionally, you may encounter items with the following issues:

• Zero Qty. Base on Hand but a non-zero Inventory Value

• Negative or inaccurate Unit Cost

These issues are often caused by rounding differences or a few incorrect transactions.
You can use the Inventory Resync – Zero Out Costs routine to correct them.

Procedures

Review Items with Cost Issues

• Navigate to the Items list → xZero Out Costs view to see the items with issues.

• This view applies the following filters:

  • Qty. Base on Hand = 0

  • Expected Cost = 0

  • Inventory Value ≠ 0

• You can review the Item Ledger Entries for these items to look for patterns or root causes.

Optional Steps for Cost Correction

• If an item has non-zero Qty. on Hand and you still want to correct inventory cost, you must zero out the inventory first before correcting costs:

  • Run a report to record current inventory quantities by Warehouse, Bin, Unit of Measure, and Lot/Serial Numbers.

  • Use the Item Adjustment Journal to zero out inventory quantities.

• If an item has zero Qty. Base on Hand but non-zero Expected Cost and you still want to correct inventory cost, you must invoice any outstanding Purchase Orders (Received Not Invoiced) or Work Orders (Output but Not Costed) transactions before proceeding.

Run Adjust Cost Batch Routine

• Before running Zero Out Costs, you must first run the Adjust Cost Batch Routine:

  • Navigate to Administration → Inventory → Adjust Cost Batch Routine.

Calculate Zero Out Cost Entries

• Navigate to the Inventory Resync tab and open the Zero Out Costs view.

• Click Calculate Zero Out Cost Entries.

• On the confirmation page, you can:

  • Enter a specific item, or

  • Leave the Item field blank to calculate for all applicable items (up to the first 500 items).

Note
If your system has a large number of Item Ledger Entries and you encounter Salesforce Governor Limits, configure a smaller batch size by creating a custom setting:

• Name: ZeroOutRoutineSize

• Value: A number ≤ 500
  (See Managing GoldFinch Custom Settings for details.)

GL Ledger Assignment

• If Multi-Ledger is enabled:

  • If inventory valuation is segregated by Item, the GL Ledger from the item is used.

  • If segregated by Warehouse, the GL Ledger from the warehouse is used.

Post Zero Out Cost Entries

• Select the entries you want to post.

• Click Post Zero Out Cost Entries.

• GoldFinch will insert additional Cost Entries with zero quantities but non-zero invoice costs to correct the inventory valuation.

Run Adjust Cost Batch Routine Again

• After posting, navigate to Administration → Inventory → Adjust Cost Batch Routine again to generate the necessary GL Entries for the new Cost Entries.

Restore Inventory (If Applicable)

• If you zeroed out inventory in Optional Steps for Cost Correction, you must now post the inventory back:

  • Use the Item Adjustment Journal to restore inventory quantities by Warehouse, Bin, Unit of Measure, and Lot/Serial Number.

  • Use the most up-to-date Unit Cost.

Verify Resolution

• Return to the Items list → xZero Out Costs view.

• You should confirm that there are no remaining items listed.

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Article Inventory-Zero-Out-Costs-Routine  ·  Last updated October 02, 2025 · GoldFinch ERP Help Center