what is Cost of Sales Adjustment journal entry created by the system ?

AI generated answer (using internal Slack threads):

The Cost of Sales Adjustment is a system-generated journal entry in NetSuite that occurs when there are changes in the inventory that affect the cost valuation. This could be due to transactions that increase or decrease the inventory, changes in the purchase rate of an item, or when a negative inventory becomes positive. The system uses a hierarchy to determine the order of transactions for valuation. The hierarchy is as follows: 1. Inventory increasing transactions (Purchase transactions such as Purchase Receipts, Vendor Bills, Adjustments) 2. Inventory reducing transactions (Sale transactions such as sales order Fulfillments, Invoices, Cash Sales, and Inventory Adjustments) The Cost of Sales Adjustment ensures that the cost valuation is correct. It cannot be deleted or changed. If there are discrepancies, it is recommended to find the transaction that caused the revaluation. In some cases, if a period is closed while the costing system is still running and then reopened, the system may post Cost of Sales Adjustments. This is because the costing calculation was not completed before the period was closed. It is recommended to ensure that the costing system has finished running before closing a period to avoid these adjustments. For more information, you can refer to the following SuiteAnswers articles: - [Cost of Sales Adjustments](https://netsuite.custhelp.com/app/answers/detail/a_id/28147/loc/en_US) - [Hierarchy of transactions for valuation](https://suiteanswers.custhelp.com/app/answers/detail/a_id/85953/loc/en_US) - [Warning message when Cost of Goods Sold is calculating](https://suiteanswers.custhelp.com/app/answers/detail/a_id/21161/loc/en_US) ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******