Hi Mike_James
We've done a little investigation. What I've been able to ascertain is the timeline.
1. The stock was received and an assembly order was created on the same day in our inventory management system. T
2. The inventory management system then sent the work order to MYOB as a BILL first, but then about 12 hours later, said system sent the Purchase Order Receipt as a BILL. (Not an ideal scenario).
Therefore MYOB (we assume because we don't know how to back track a transaction audit trail), would've gone into negative inventory at some point....again not ideal. So you were correct. That would've hit COGS.
We're now trying to track where MYOB may have gotten the item cost on the assembly order from given that it would have not had any idea of the item cost yet. (The item card has a $0 standard cost, and the PO receipt wouldn't have been receipted yet).
The inventory management system would've had the correct costs, because as far as it is concerned, the PO Receipt would've updated its internal standard cost. So the work order there reflects the right dollar value.
Thanks JIllyTan , I wasn't aware you were using a 3rd party program. I think you've highlighted the cause, ie the PO receipt being sent through as a bill?
Hi Mike_James
Yes, the PO Receipt is sent as a BILL because from the 3rd party software perspective, the PO is placed there. If we sent it through as a PO we introduce another layer of processing. Unfortunately, that's how our assembly orders come through as well
So when we did the assembly order, that came through as a BILL. The unit cost on there was say $1.06. I would ASSUME given that, the inventory would have gone into negative? Given the item card has $0 standard cost, that would have gone in as negative inventory as 0 cost. So when the PO Receipt came through, it was at the correct cost of $1.36. Again my assumption would be that this would bring Stock On Hand to 0. So now the question I'm trying to answer is where did that $1.06 come from because in the inventory management system, the cost on the work order was $1.36....
At first I thought perhaps it took Weighted Average Cost but then I can't get the math to match. So I'm not sure that's it.
Cheers
Jilly
Hi Jilly (JIllyTan)
It's great to see that Mike_James has provided assistance with this. There are a few factors as to where the amount being posted comes from.
If it was an import from a 3rd party, I would check with them first, as it could have come across with the partial posting to COGS.
Another factor is f it was edited after being imported / recorded, it can cause the posting to be different, as it might be based on the original amounts, not the current values.
If you are still unsure, feel free to respond with a screenshot of the transaction so I can reproduce the error on my end.
