We made the Avg Cost and last cost of a group of items zero. We run the re-calculate book value report (UT-K-G) The total reduction was close to 12M but we don't see where does GL gets affected by these changes. Shouldn't there be a big reduction in the inventory value in GL? We used IN-K to make the changes to the Avg/Last Cost.
Thx
Juan

Thank you for the explanation, but the message we get doesn’t say that. This is what we get
“The current book value of this part (dollar value) is (dollar value) more than the value if calculated by multiplying the revisited average cost times current UOH. The book value of this part will not be adjusted here for this difference, use “The enter inventory adjustments” (and/or edit FIFO/LIFO buckets) menu selections if you wish to adjust the cost basis”
Thx
Juan

And that is why you should adjust cost using IN-C Inventory Adjustments (adjust out at old cost, adjust in at new) so that the GL will be affected.  
We have really learned our lesson here with trying to use IN-K to adjust average cost (with some pretty large mistakes that had to be resolved with a journal entry).  We don't do that anymore.

Colin, thx I see it now.  
Cathy, If we had used IN-C we need it to specify location (we have stock in several location) also the were no changes to the O/H.
Thx
Juan