Forum Discussion

Phani's avatar
2 months ago

Inventory Issues

With the current flow of process, I want to know how this case study works lets say we manufacture a product called "X" which we manufacture, count and inventorise as "Count Inventory" and lets assume we inventorise as 100 on  day 1. We recieve a Sale Order on 20 boxes of 'X'   on day 1 for Day 3 delivery and 30 boxes for day 2 delivery and we receive a Sale order on day 1 again for same day delivery of 10 boxes. Now, Order picker picked all the 3 orders which makes stock on hand to be 40 and we invoice all on the same day but,


Currently we are having issues with the above mentioned case study, our inventory looks like below on 
Day1: 100 on hand before picking 

Day 1: Stock level is 90 boxes after we invoice all the 3 sale orders

Day 2 : Stock level was 60 boxes 

Day 3: Stock level was 40 boxes.


My questions are 

Q1. How will the inventory works ?

Q2. what is the flow in account right to inventory and convert sale orders to invoices?

5 Replies

  • Earl_HD's avatar
    MYOB Moderator

    Hi Phani,

    Thanks for your post, and welcome to the Community Forum! In the scenario you described, let's delve into how inventory and sales orders usually function in AccountRight.

    Q1. How does inventory work?

    • Initial Inventory: You start with 100 boxes of product "X" on Day 1.
    • Sale Orders: You receive three sale orders:
      • 20 boxes for Day 3 delivery (Order 1)
      • 30 boxes for Day 2 delivery (Order 2)
      • 10 boxes for same-day delivery (Order 3)
    • Order Fulfillment: The order picker fulfills all three orders, reducing stock to 40 boxes.
    • Invoicing: All three orders are invoiced on the same day.
    • Inventory Impact: After invoicing:
      • Day 1: 100 (initial) - 60 (invoiced) = 40 boxes
      • Day 2: 40 - 20 (Order 2) = 20 boxes

    Q2. What's the process in AccountRight for inventory and converting orders to invoices?

    • Entering Sale Orders: Input customer orders into the system.
    • Order Fulfillment: Pick items from inventory when ready for delivery.
    • Invoicing: Generate invoices for fulfilled orders.
    • Inventory Management: System automatically adjusts stock levels based on invoiced quantities for accurate tracking.

    For more detailed information, you can visit the help articles provided. 
    Track Your Stock With Inventory Management Software 
    Inventory Management: Definition, Formulas And Best ...
    A Guide To Inventory Accounting: Benefits, Types & Methods

    Feel free to post again, we're happy to help!

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.


    • Phani's avatar

      Hi Earl


      1. You mentioned below underlined in the answer previously , please confirm me if you it as Order 3?

      • Day 2: 40 - 20 (Order 2) = 20 boxes

      2. I have a query regarding our current entry of sales orders. We currently enter the order date and promised date as same day for instance if we are currently taking an customer order for 01st of June delivery we are entering the order date and the promised date as 01st of June. 
      By doing this are we comprimising our current inventory by forward dating and forward invoicing. 


      3. As we are manufacturing should we use adjust inventory or build inventory to update our stock levels everyday on various skus 

      • Doreen_P's avatar
        MYOB Moderator

        Hi Phani,


        Regarding your question, the "adjust and build inventory" feature is used to manage and control stock levels. This feature is particularly useful for businesses that deal with physical goods.


        The "adjust inventory" function allows you to modify the quantity of stock you have on hand while the "build inventory" function, on the other hand, is used when you assemble items from multiple components to create a new product.


        You can click here for more information. With the difference of the function, it will still up to how you want to record it.


        Feel free to post again anytime if you require further assistance. 
        If my response has answered your inquiry, please click "Accept as Solution" to assist other users in finding this information.


        Best regards,