---
title: "Process an Average Cost Adjustment"
canonical: "https://kb.myframeworks.com.au/space/CO/30508298/Process%20an%20Average%20Cost%20Adjustment"
format: markdown
---
Process an average cost adjustment to correct the unit average cost for products when using average costing method.

> ⚠️ This is only applicable to companies using Average Costing, as defined in Company Maintenance in Frameworks.

> 📝 ## Prerequisites
> 📝 
> 📝 - Average Costing method enabled in Company Maintenance
> 📝 - User permissions for Average Cost Adjustments
> 📝 - Products to adjust identified with target cost amounts
> 📝 - Approval permissions (for finalizing adjustments)

## Steps

1. Using the menu button, expand **Inventory > Transaction Processing** and click **Average Cost Adjustments**.
2. Click **New** to create a new adjustment.
3. In the Header section, configure the adjustment details:
  - Select the branch from the **Branch** drop-down menu
  - Select a reason from the **Reason** drop-down menu
  - Enter or search for an assignee in the **Assignee** field
4. Click **Add** to add products you wish to adjust.
5. For each product, edit the **Cost Adjust By** field with the adjusted unit average cost amount. The **Value Adjust By** field will automatically update with the value to adjust the stock value by. The new Average Cost and New Stock Value will be displayed at the bottom of the Average Cost Adjustments screen.
6. Click **Save** to save the adjustment. The adjustment will be populated with an adjustment ID and status of "New" on the left side of the Average Cost Adjustments screen.
7. Click the **Approve** button, enter your username and password in the Approve Adjustment window, and click **Save/Close** to approve the cost adjustment.

## Result

The status of the adjustment changes to "Approved" and the average cost adjustment is applied to the product records.

---

> ✅ ## Related Tasks
> ✅ 
> ✅ - <u>[Configure Costing Method](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/390070273)</u>
> ✅ - <u>[Troubleshoot Average Cost Calculation](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/390168578)</u>
> ✅ - [Average Cost Adjustments](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28384044)
> ✅ - <u>[Costing Methods in Frameworks](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28390208)</u>