Inventory discrepancies

Question

Hi all, our company uses Inventory and relies quite heavily on the records being accurate as we have one central store and several remote offices selling product which are dispatched from the single location.

We have always been aware of the discrepancies MYOB Inventory seems to offer up as an added extra but as sales are now increasing and our company is growing staff- and location-wise, we need to get this problem figured out. I have run all sorts of reports on individual products to try and pin point what is causing this glitch and the only common denominator seems to be 'receive items'. If product arrives before I have received the supplier's invoice and I need to sell some, I receive the item so it is in stock and then make the sale, taking the stock out of our MYOB inventory. When the invoice comes in, I update the purchase order and turn it into a bill. Then in the background MYOB creates a cancel receive item journal entry. When I look, I note that the numbers are not the same - see example below. Does this have any effect on the actual stock count in MYOB? This particular product is currently showing we have 38 units in stock but on the shelf we only have 26. Sometimes stock levels are the other way around - we have more on the shelf than we have in MYOB.

I'd appreciate any feedback or guidance on this please!

princess_r · Answer

Hi HethBennett,
&nbsp;
The hiccups you're facing might be because you're receiving items before the supplier's invoice arrives and then turning the purchase order into a bill once you get the invoice. If you add the inventory later, it could mess up the stock count if the quantities or values don't match up perfectly between the initial receipt and the final bill. To fix this, you might need to do an inventory adjustment. Check out this article for more details.
&nbsp;
Cheers,
Princess

gavin12345 · Answer

Hi HethBennett&nbsp;&nbsp;Using MYOB to manage inventory is anything but simple. There are so many settings that affect the accuracy. Internal procedures need to be robust and strictly followed by all staff. Regular checking and reconciliation of the Inventory Value Reconciliation report is a must. If discrepancies keep occurring, it is important to isolate, identify and resolve.&nbsp;On top of all this, the inventory module within AR2024 has more bugs in it than any other module. Many have been fixed. Many remain unfixed. Users continually ask MYOB to 'run a script' to fix known bugs.&nbsp;There is nothing in your attachments that can explain any discrepancy on the on hand count for this Item. The explanation given by the moderator is 'odd' given the first sentence is exactly what you are supposed to do and this should not give rise to any hiccups.&nbsp;If the inventory accuracy is important, I suggest you get someone who specialised in MYOB inventory to check your settings and procedures to help identify the cause. Best to sort this before it becomes too messy.&nbsp;Using Receive Items itself is not the problem. How you use it might be. For example creating a new purchase instead of converting the existing Order will affect on hand count.&nbsp;The accuracy of On Hand count can be affected by many other factors, eg settings, staff using wrong Item Number on Invoice, staff picking the wrong item, delivery count incorrect, theft etc etc. Do you use Autobuild?&nbsp;&nbsp;The accuracy of the value is usually affected by settings, incorrect adjustments or bugs. For example do you know why the original Order showed $1685.80 as the cost for this item, yet the Item Transaction shows $1,837.85?&nbsp;If you don't have a MYOB consultant who specialises in Inventory, try MYOX Services - they should be able to review the file and advise how to fix the issue.&nbsp;RegardsGavin

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Inventory discrepancies

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