The second kind of Material Movement added to Figure 16-8 is Adjustment. This is the same Adjustment we saw in the context of Contracts in Chapter 15. The idea is the same, but instead of Adjustments to inventory of purchased or sold items, we are concerned here with raw materials and sub-assemblies.

Note in the Figure that each Asset Movement only may be from and to a Facility. When an inventory evaluation is done, often materials are found to have moved from (for example) the Warehouse, to the ether somewhere. The destination of the Movement is unknown. Alternatively, they may have suddenly appeared, having been moved to the Warehouse, but their source is unknown.

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