Unit Cost on Inventory showing as $0 when should have value
I have a client that has reached out today in relation to their inventory. Due to how they were set up years ago they adjust all stock to a 0 count before putting in the current stock count. I am not sure why they take this approach, however it works for them.
When the initial adjustment was put through a Unit Cost was appearing for the stock items. Now they are trying to put the actual stock count in the Unit Cost shows as $0. A review of a few individual stock items are also now showing no Average Cost, although the buying and selling details are still in the system.
With them adjusting all stock to 0 initially, would that affect the average cost price? They dealt with the stocktake the same way in the 2023 financial year without any issues.
Thanks for your post. There are some reasons why the Unit cost on Inventory is showing as $0. You need to check the > Item Current Value and or Average Cost displays N/A. This may also prevent items reports from displaying, throwing a null object error. This can also prevent adjustments and transactions against the item.
The Item Profile with look similar to this:
A. First to check is the Purchase workflow has been completed.
If there are any orders with received items, they must be converted into bills. Note: If you only Partially received items when you convert the order, you have to bill the partial order.
You will need to update the order quantity to match with received quantity.
The pending to receive items must go in a new order.
To convert fully received order items, open the purchase register, click the orders tab, highlight any purchase orders that have the received tick, and press the change to bill button.
The Bill will appear on screen, press record to complete the process.
Check the item values/average cost are now showing correctly, if not move into the next step below.
B. Check for negative on hand quantities
Go into the Item List then the Inventoried tab. Click the On Hand header, to sort by On hand. Ensure no items have a Negative On Hand balance.
If they do, we can run the inventory scripts.
Check the item values/average cost are now showing correctly, if not move into the next step below.
Check for invalid amounts in the Inventory Value Reconciliation
Run the Reports>Inventory>Items>Inventory Value Reconciliation.
Look for any invalid amounts.
Invalid amounts are: any negatives, 0 On Hand with a Value, or >0 On Hand with $0.00 value.
If there are any invalid amounts without a large amount of decimals in the Quantity. Check the item values/average cost are now showing correctly, if not move into the next step below.
Alternatively, you may adjust the inventory by checking this helpful article.
Feel free to write a post if you need further assistance.
