Selling Inventory with not enough Quantity on Hand

[Jobird]

Hi there,

This is becoming quite a problem for 1 of my clients and will be a big problem for another client I was about to migrate to MYOB Accountright. We use the Inventory module and so have I Buy, I Sell and I Inventory against each item.

Both clients create and send invoices for prepayment of goods that haven't been received into stock as yet. When creating the Sales invoice, if the goods aren't yet in Stock, we need to Build, Buy or Backorder the goods.

We would choose either Buy or Backorder, but none of these help at all. The Backorder splits the Customer Sales invoice - 1 invoice for the Quantity currently in Stock and then an Order for the remaining items. But, we want to invoice the customer for the whole amount and have them prepay the invoice, meaning we need to be able to mark it off as paid as well. So, selecting Backorder is no good.

If we select Buy, it creates a Supplier Purchase Order (PO) for the balance not in Stock. But it still won't let us save the Customer Sale Invoice as it's a Supplier PO, not a Supplier Invoice and so isn't counted as stock anyway. Also note that we would already have a PO for the purchase of the goods we're waiting for, so selecting Buy which generates another PO is confusing and pointless.

The client I was about to migrate to MYOB often take prepayments for goods which haven't arrived into stock as yet. There must be a way of getting this right. Any help would be very much appreciated.

Kind Regards,

Jo     

[Mike_James]

Hi @Jobird , I recently recommended another forum user with a similar issue to create the sale as an order, but print it as an invoice to send to the customer for payment. Then on shipment, convert to an invoice. Would this work for you?

[Jobird]

Hi Mike, 

It will partly work. When the funds are received from the customer, they can't be marked off against the Sales Order as being paid, can they? 

Kind Regards,

Jo

[Mike_James · Accepted solution]

Hi @Jobird , yes payments can be applied to orders. Your linked (sales) accounts should include a liability account for customer deposits. When a payment is applied to an order, MYOB will credit that account. On conversion to an invoice the deposit will be automatically transferred to the credit of the receivables account. 

[Jobird]

Thanks so much @Mike_James ,

Is there a way of getting MYOB to have a look at how Inventory handles Prepayments going forward? It might be another option at the Build/Buy/Backorder stage.

Kind Regards,

Jo

[Neil_M]

Hi @Jobird 

I’m not aware of any current plans to change how inventory handles payments, however I have passed your comments onto the relevant teams. Please note that I am unable to provide a timeframe for when this may be considered for any potential changes

Currently if you were doing a prepayment for inventory then you would be looking at using the method Mike James suggest by way of creating an order first and then adding the payment to the order.

[Jobird]

Great- thanks Neil.