Need assistance with an inventory adjustment

Question

We've an issue where we can't make an inventory adjustment and I can't figure what's going on/wrong.

I can't isolate where I unit cost has been pulled from.

Would appreciate any assistance.

Thanks

A-Z of Crochet Item Register screenshot.jpg

A-Z of Crochet Adjust Inventory screenshot.png

WendyE · Answer

When keying a Inventory Adjustment, I believe the "cost per unit" is the "Average Cost" that is displayed on the Item Profile (3rd figure down on the righthand side).  This figure shown is excluding any GST.

What can go wrong is that the Average Cost goes beyond 2 decimal points in the background (that we can't see) and therefore throws up an error if the adjustment removes all stock back to a nil on hand.  For example 2 units with average cost of $20 each may actually have a background value of $20.000055, therefore when you do your adjustment there is still $0.000055 of value.  The same can occur with the Qty (profile page states 2.00 in stock but in the background it may be a quantity of2.0000033.

Unfortunately MYOM have not yet come up with a solution to fix this other than getting MYOB support to run a script over your file (to remove excessive decimal places) prior to keying such adjustments.

Hope this helps!

gavin12345 · Answer

Hi @ClareSP10

Don't bother trying to work out what went wrong. And the Item Register Details as well as some of the Inventory reports are also a waste of time - riddled with errors, esp if you have more than one inventory Location.

Remember that an inventory adjustment journal (IAJ) adjusts by the figures you are using, not to the figures you are using.  So if the current on hand count is 10 and you want to adjust to 2, the Quantity in the IAJ should be -8.

Look at the Item Profile or generate an Inventory Value Reconciliation report if you want to see the current value and on hand count. The unit cost is derived by dividing one by the other. If the current value is say $7000.01, then your IAJ cannot be for -$7000.02 as this would make the value less then zero.

However sometimes even if you use -$7000.01 (which matches the current value) MYOB may still report the same problem. This is usually because your IAJ will trigger other adjustments which will reduce the value of your item. A typical example is where you have any Orders with a Received tick under the Orders tab of the Purchases Register. These should be 'cleared' first.

Do what you need to do to get the 'current' value and on hand count correct. Trying to undo and fix errors caused by bugs will waste time, and the error might repeat anyway. Not sure exactly what you are trying to do, for example set value to $0 or some other value. If trying to set to a specific amount (such as $0), often you need to do this as a 2 step process. First aim for an on hand count that is positive (for example 1) and a value that is positive, say $1 or $100 or $10000. Once you get that IAJ accepted, then do another one to adjust to the 'correct' figures. And once you have finished, don't forget you may need to do a GJ to correct the balance of the COGS amount being claimed, esp if MYOB has overstated or understated this.

Regards

Gavin

WPSupplies · Answer

From your screenshot, it looks like this has been going on for a while.
You'll need to go back until the Current Value shows a positive value and work out what has happened from that point.

Depending how far back this goes, you may need to get an accountant to assist you.