Using Item Standard Cost

Question

Hi,&nbsp;Hoping to get some help as to how 'Standard Cost' needs to be setup. I run an online store with WooCommerce and use a MYOB integration to transfer data automatically from Woo to MYOB. For several reasons I want to use Standard Cost rather than Last Purchase Price to measure my COGS. One of the main reasons being that I don't purchase these products through MYOB purchase orders, another being my inventory levels aren't managed on MYOB and I have entered fictitious inventory levels for the sake of allowing automatic data entry into MYOB. Complicated I know...&nbsp;My problem: I have product 'X' in my inventory with a standard cost of $89.49. When I sell 1x product 'X' a debit appears for the current value divided by the quantity on hand (which is fictitous and I don't want to have an incorrect Stock on Hand account.)&nbsp;I have ticked the box in preferences to use standard cost.&nbsp;Any wisdom/other solutions appreciated.

angusmaynard · Answer

Any ideas from the experts out there?

the_doc · Answer

Hi&nbsp;AngusMaynard&nbsp;&nbsp;I sort of get the gist of what you are doing but not fully.&nbsp;I understand the reasoning and think I can answer your query when I have further info.&nbsp;I have a client who has web carts just like you - but these are purpose built and MYOB is fully integrated upwards and back to these webcarts.&nbsp;The live MYOB file runs a perpetual inventory and the site sells only what is available.&nbsp;The biggest problem we faced as you have is MYOB does not allow negative inventory - so you essentially have to run either perpetual as you do or actual - but occassionally the MYOB internal file (which supplies other branches) uses what was supposed to be in stock and MYOB spits it back (insufficient quantity) - at present this errors but some new code by me will capture this strip off the 5% waste we apply try again (and 85% go through) if not send it through as an Order.&nbsp;However we upload last purchase price (which is an average anyway) from which a sale price is calculated in the web.&nbsp;As the MYOB is a perpetual inventory system - a sale correctly journals a CoS entry in the background.&nbsp;Your explanation sort of misses a few things in the middle - does the WooCooCommerce site send through a sales invoice or a journal - can you elaborate - the only way to get a CoS journal on a sales invoice is if you have an inventory item that you purchase and sell.&nbsp;So I am a little unclear as to your question to be able to give a good answer.&nbsp;The Doc&nbsp;&nbsp;

angusmaynard · Answer

Hi The Doc&nbsp;Thanks for the response. Here is the integration that transfers data from WooCommerce to MYOB -&nbsp;https://woocommerce.com/products/myob-integration/&nbsp;It creates sales invoices, and in my inventory all items I have ticked the buy,sell and inventory boxes.

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Using Item Standard Cost

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