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Blair38's avatar
Blair38
Contributing User
7 months ago

Inventory Variances

Hi,

 

We have huge inventory variances between the inventory ledger and the GL.  I have identified that the variances are due to product builds.  The product build is using the inventory account in the account column, not the COGS account, as recommended on your support pages.   When I check the item set up, it appears set up correctly (file attached).  We do our product builds in tall emu and the item set up is identical to the MYOB set up.  

 

How do I get the account to go to the COGS and not the inventory account, which causes the imbalance?  

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  • Mike_James's avatar
    Mike_James
    Ultimate Partner
    7 months ago

    Hi Blair38 , builds are a transfer between inventory items, and therefore only affect your inventory asset accounts, not cogs. 

     

    What makes you believe that builds cause the  variance?

  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator
    7 months ago

    Hi Blair38, 

     

    Thanks for posting your concern. We appreciate your effort attaching the screenshot. 

     

    It is as Mike_James has mentioned. The information for auto build items only affects inventory accounts. In my understanding, the 5-1610 Cogs account is a Cost of Sales account. May I ask how you ended up with the conclusion that it's the Cogs account that's causing the variance. Also, any additional screenshots or information would be much appreciated. 

     

    We look forward to your response. 

     

    Thanks,

    Genreve

     

    • Genreve_S's avatar
      Genreve_S
      MYOB Moderator
      7 months ago

      Hi Blair38, 

       

      I hope you are well today. We haven't received any response from you since Wednesday. Let us know if you still require help with your inventory variance.

       

      Thanks,

      Genreve

      • Blair38's avatar
        Blair38
        Contributing User
        7 months ago

        Hi Mike,

        Thank you for getting back to me.  I only work part time, so today is first day back in the office since posting my question.

        I have attached a screen shot of the GL which relates the the transaction in the screen shots previously provided.  

        I don't believe the COGS account is the issue.  I believe the fact that the journal created in the background by MYOB DR's and CR's the asset account is the issue.  I believe one side of the transaction should be going to the COGS account when it is not.  

        I have run an inventory variance report on 31st October and again on 1st November.  There is movement in the variance by $21.79 in finished goods and $15.53 in raw materials.  This is what leads me to believe the variance is caused by MYOB DR'ing and CR'ing the same asset account, instead of the COGS.  

        If the DR to raw materials of $15.53 and the CR to finished goods of $21.79 was not being posted to those asset accounts, there would be no change to the variance on the inventory variance report.