Weird increase in Inventory Current Value
Yesterday I discovered that four out of some 30 items have had their current value doubled and then tripled from initial purchase in February 2023. One item as an example -Centenary Air Force Bear - 500 purchased at cost of $13.772 = total cost $6,886 and current value $6,886.
Note that sales are not recorded through MYOB Inventory - a yearly count is undertaken and stock then reduced. In November 2023 stock of this item was 28 on hand so I recorded -472 reduction in stock which was -$6,500.45. Therefore the current value should be $385.62 for 28 bears. I entered the count inventory with stock numbers at November 2023 and it said -472 and all looked fine.
Yesterday when I went to reduce the stock of this bear to zero it came up with error messages. On re-running an inventory value reconciliation report at 31/12/2023 the current value of this item for 28 units was showing as $6,886 instead of $385.62 and the original current value from 3/2/23 had jumped to $13,386.38. It then showed -$6,500.45 leaving a balance of $6,886 for 28 unit.
After another attempt at re-doing the Nov 2023 count the current value at 3/2/23 jumped up to $19,886.77 and did reduce by -$6,500.45 in Nov 2023 but now the Current Value is $13,386.32. I eventually got the -28 units count for yesterday's stocktake to reduce by $13,386.32 which leave 0 on Hand and $0 current value! But then my balances were all out for both Inventory asset and stock expense adjustment accounts. So I had to do a general journal for each of these four items to reverse each of these four inflated values and leave the correct stock on hand value balance.
Multiple documents attempting to show this are attached. My main concern is what did I do for this to occur and how not to have it happen again.
