For 20+ years, we have entered excess completed parts into a warehouse named “Stock” by using Adjust Quantity so no costs are put into inventory. We do this as we want all of the costing to go towards the job and when we ship from “stock” it is “all profit”. 99% of the time the transaction shows up with zero dollars in costs. There have been some fliers here and there but nothing significant. Recently, we have seen a significant increase in ADJ-QTY transactions with associated costs. I’m being told nothing has changed in our accounting practices and I can’t figure what has changed in Kinetics or if we really are doing something different. Below, I have listed the number of ADJ-QTY transactions with costs and you can see the increase. In 2025, 11 of the 16 happened in November and after.
We have not closed December and all of 2025 yet due to the sale of our company, but that I would think that would not have an impact.
We are making shipments from “stock” that we were expecting to be at 100% margin, but now these costs are starting to hit our bottom line.
| Year | # |
|---|---|
| 2017 | 4 |
| 2018 | 6 |
| 2019 | 4 |
| 2020 | 2 |
| 2021 | 4 |
| 2022 | 6 |
| 2023 | 6 |
| 2024 | 9 |
| 2025 | 16 |
| 2026 | 307 |