Value of Inventory Items Backdating
Morning
We are having an issue with our Inventory Value Reconcilation (IVR).
When finalising our September reports, we noticed that the IVR report was out from previous months reported and changes had been back dated to the beginning of Jan this year.
We have done some checking through back ups and the last time the report was balanced and correct was 6th Sept. Some COS and Finished Goods codes are different from what was reported on 6/9 and what was appearing in the current file.
We drilled down on the Aug P&L for one of the COS codes and noticed that all invoices for a particular product had a different inventory value on the current report to what is showing on the file from 6/9. Please see attached file. We can find no reason for this to have happened. The build for the product is exactly the same in both AR files.
Prices of raw materials and our sale items do change, but these are always updated before processing starts for a new financial month, and we have never had this problem before. We are worried this is a software issue as it has backdated through previous months.
Any assistance, insight or ideas are appreciated. I have had to start processing for October, but will checking the IVR constantly for any changes.
Thanks Ann
Hi annbrinck , changing the referral source is probably enough to trigger a re-recording of the invoice when you click OK; this will then use the present-moment average cost of stock, which may differ from the cost when the invoice was first recorded. (I haven't tested this type of change myself, but I do know that changing a (non-financial) line description does the same).
When raw material prices change, the historical amounts used in autobuilds will not change; I note that the autobuilds in the item registers did not change between file versions.
Prior purchase transaction journals can be changed, in cases where:
- purchase orders are used, and
- receive items are used, and
- the price on the final purchase bill needs to be changed, and
- sales of that purchased stock have taken place before the bill is recorded.
AccountRight regards the cost of sale on such invoices as provisional until then, and will automatically make cost of sales adjustments. These adjustments used to appear as separate inventory journals in v19, but in the current program they are accumulated with the original purchase journal, which is tidy but not auditable.
The average cost of an item is recalculated after each recorded transaction (purchase, inventory journal); every sales invoice uses the average cost of stock onhand when that invoice is recorded.