Inventory Reconciliation

[Michelle29]

Been having an issue with Inventory since last year.  Have spoken to specialists at MYOB, but nothing seems to be helping the issue, just wondering if anyone else out there is having the same issues.

We 'purchase' goods from our customers when we invoice them, so effectively do a credit against the inventory item.  We then resell it, using a different inventory item.  I have been doing transfers of the stock on hand through adjust inventory, but it seems to be messing up the totals.

As you can see by the attached screenshots, this is just one example, the buying and selling cost are one figure, the invoice is correct using those figures, but in the general ledger it is appearing as a completely different figure, and I am trying to work out the best way to fix it.

MYOB have suggested resetting each invoice by putting a . in the journal item.  It does change the figure but not to what it should be.

Does anyone else have these issues, or know of a way around it, or would i be better off doing it all manually and journalling?  (not an option I really want to consider!).

Any assistance would be greatly appreciated

[gavin12345]

Hi @Michelle29 

The setup for the Item is wrong - you have the Sales account listed as the COGS account - so MYOB is posting both Sale amount and the COGS to the same account. The Income Account for tracking sales should be a 4-xxxx account.

When it works correctly (and AR2022 often doesn't when it come to Inventory) - when you Purchase an Item the cost gets added to the Asset Account for Inventory. When you Sell an Item it posts the sale value to Sales (4.xxxx) and the COGS to the Cost Of Sales Account from the Asset Account. This reduces the balance of the Asset account as the item is sold.

I suggest you review the transaction from the Transaction Journal - that will show you exactly where and what was posted. Your Sales Income will be 'understated'.

Regards

Gavin

[Michelle29]

Thanks Gavin, the trouble with having the Income Account against the Sale amount is because we are doing a credit, basically purchasing the item back from the customer, it puts the cost of sale amount against the income account, instead of against the COGS account in the GL.  I'll keep chipping away till I can work out the best way to fix it.

[gavin12345]

Hi @Michelle29 

Then try setting the Sales account as it was (all settings as they were for the original sale) and process as a negative sale (Quantity = -1). MYOB should take care of the rest if set correctly. I'm sure there is a support note for processing Credit Sales in the Support section.

Regards

Gavin