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Physical Inventory and Project Cost Layer

  • January 3, 2025
  • 2 replies
  • 83 views

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Hello!

When trying to create an Adjustment for Physical Inventory for an item that has been Transferred to a Project (Track by Project Quantity), the system throws the error “Insufficient Qty. On Hand”.

The only resolution we can find is to transfer the qty. back to Project X, or delete the item from the PI Adjustment and manually create an Issue doc. instead.

Am I missing something?

Best answer by meganfriesen37

What type of inventory adjustment are you trying to make? Are you adjusting the value or quantity or both?

With project specific inventory, if the item has been transferred to a project (but still in inventory, not yet issued) you can do the following:

  1. Issue the item to the project to expense it to the project
  2. Transfer the item back to the normal (project X) layer or to another project
  3. Adjust the item within the current project layer and use the appropriate reason codes

If you transfer it back to project X then, you can transfer and issue to another project or adjust in the main inventory.

2 replies

meganfriesen37
Captain II
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  • Captain II
  • Answer
  • January 3, 2025

What type of inventory adjustment are you trying to make? Are you adjusting the value or quantity or both?

With project specific inventory, if the item has been transferred to a project (but still in inventory, not yet issued) you can do the following:

  1. Issue the item to the project to expense it to the project
  2. Transfer the item back to the normal (project X) layer or to another project
  3. Adjust the item within the current project layer and use the appropriate reason codes

If you transfer it back to project X then, you can transfer and issue to another project or adjust in the main inventory.


  • Freshman I
  • October 22, 2025

To confirm, there is no method for executing a Physical Inventory count of Project Specific Inventory that is stored in the Project Cost Layer.  The only option is to consume the inventory by expensing it to the project, which would preclude the need to verify the count. Or transfer it to the Normal Layer, count it as a Physical Count and transfer it back to the Project.  It appears that you could also create an Inventory Adjustment for the Inventory ID and the Project but that would have to be an individual transaction and not part of the Physical Count process.

To Summarize, you cannot use the Physical Count features if you store your inventory in the Project Cost Layer.