[17.6.10] More clarity under Inventory Items tab

A small suggestion would be to be able to have a check box for the following as choice in settings.

Inventory stocks are updated when making:

  1. Delivery Notes
  2. Goods Receipt
  3. Sales Invoice
  4. Purchase Invoice
  5. Delivery Notes & Sales Invoice
  6. Goods Receipt & Purchase Invoice

In our case we will be selecting the options 1, 2, 3 and 4.

Qty to deliver:

  1. Sales order
  2. Sales invoice

Qty to receive:

  1. Purchase order
  2. Purchase invoice

Will this be possible? I guess this would help with the different ways a business operates for the user.

Please Let me know where can I find average cost and total tabs as they are yet not in reports and they are very essential to our type of business, please add them asap
also for sale price please add ability to add custom inventory items as sometimes fewer products or specific range of items price list is to be made, the current price list is also needed but customization in price list is also needed

Oh, that will be a problem in cases of version update. The version release should come with precautionary steps to safe gaurd the existing data and the integrity. Not every user will be knowledge to do corrections and roll backs.

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Only the “qty on hand” tab is available after the update that too shows the entire production order and not the actually qty on hand.
Kindly help.

Please let me know how to comeback to previous version. Please

@sharpdrivetek @Brucanna
One has to be very understanding when it comes to feature request.
Just because your organisation updates inventory over orders or not doesn’t mean manager has to get it at all cost. Manager will usually add features in the way they are generally done in global accounting practises.
Orders are commercial documents and legally binding in many jurisdictions. For orders to be fit for entry in the accounting system and consequently affect inventory balances, the terms of the order would be a deciding factor. If the terms of the order for example lays down difficult processes in it termination by any of the parties or has breach of contract penalties that makes it unlikely for any of the parties to breach, it would be okay to update inventory to be received/delivered to reflect the order, but even that, it will not be totally wise.
From my experience I wouldn’t advice anyone to update inventory based on orders. My organisation for example has been unable to fulfil completely orders and we couldn’t bill as a result, so if we recognised that revenue based only on orders, we would have recognised unearned revenues in our books and would have had to make entries to reverse it.

what are inventories? are they assets? and if they are assets do you recognise them in your statement of financial position based only on orders? Orders to me are not traditional accounting source documents (prudence concept in mind here). Only bills/invoices qualify to be entered to recognise asset and liabilities or revenues and expenses.
Furthermore whether to recognise inventory in the books just based on orders also may depend on the shipping terms on goods in transit (FOB,FAS etc.). An order is not the deed.
To make it simple, Manager recognises inventory values in the statement of financial position based on invoices alone (I may be wrong). You have to inform your suppliers to attach invoices to delivered goods and attach invoices to your distributed goods always to stay up to date with your inventory balances.
And yes @lubos in the future can implement an order workflow that can inform users of the balances of orders and can even find ways to incorporate it in the inventory report if the order contains inventory. It is common now to see accounting apps having Order tracking features tracking status of orders. I have been pushing for this and my recent request suggested the balances on the orders be changed only upon entry of invoices.
Managing Sales and Purchases Orders (Advanced Features Request/Suggestion) (Read the whole discussion)`
It is not easy implementing these controls and we must be patient but keep reminding Lubos.
With regards to Goods received/Goods delivered features, I think the current state is perfect.
If you are going to use this model then Manager will ensure you don’t mess up your inventory balances, and to ensure this, Manager adjusts your inventory balance upon entering goods receipt or goods delivered. I also accept that an option to set these modules to affect inventory or not would be great but making the option available for every individual delivery or receipt would be bad for the records and bring mistakes/inconsistencies. Therefore if implemented, the option (delivery and receipt affect inventory) should be generalised for all goods receipt and goods delivered, and if unselected should be general instruction for all goods receipt and delivered to be entered.
I will end by also commenting on info the inventory items displays. I think the new feature is great (inclusion of inventory qty to receive and inventory qty to deliver and inventory qty on hand). The info under reports is also great the only problem is the average cost, I suggest it goes with the price list. I specifically needed that info for pricing.

I totally understand what you explained and i am not making a feature request. But please understand that all business are not the same. Especially in a manufacturing business the movement of inventory items are not contained within purchase and sales alone.

The goods are purchased in their rawest form and it is not completely processed by the manufacturer itself. They are moved to other parties as a work order which is not a sell. the ownership of the inventory is still with the manufacturer. it is just processed at a different business and received back as a processed inventory item suitable for production. Only after these processes the actual production order is issued which in turn produces the finished goods to be sold with a sales invoice.

Now if you could kindly explain me how I can record those movement of stock inventory I will understand what I am doing wrong. Also the delivery note is essential along with the invoices when they are mandatory for exports. So we cannot just simply disable the feature.

It was almost perfect before this update because we were able to work the way we need to. Now I feel it has taken a step back. I cannot use the delivery note which is a very important part of our business and i have to correct the stock quantity for all the inventory items. In general, as a manufacturer we are only able to maintain the accounts and make invoices with this latest update which is not what Manager is supposed to be. I feel like i had something which has been taken away from me now.

I hope @lubos understands what i explained and give a solution for this.

I almost forgot. @lubos if possible add entered cost price and average cost to the entered sale price under the inventory price list report displayed like in the image below

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yes this would be good, but if you can please keep this feature also which only shows sale prices as to maintain cost prices privacy , or you can make just a new report which has all tree tabs and let the sale price (current report) be as it is and if you can add a customization option for sale price like we can select fewer items and make a price list of a range of specific items etc

If the ownership and risks is still with the manufacturer, the manufacturer can use inventory transfer to handle the situation and then capitalise all the manufacturing cost by the other party in bringing the inventory to sellable form ( Add freight-in to inventory item costs ) Just create a new location that will represent the parties location and transfer the inventory there using the inventory transfers tool.

You have the ability to create many companies on manager.io, you can create a company and activate only Goods received and Goods delivered and raise those documents from there which will not affect your inventory balances in your main company, I believe this will work fine.

I support the idea that Manager.io gives the user the option to let entered Goods receipt and Goods delivered notes affect inventory balances or not, but until that option is available you can open another company and easily import your inventory and customers and suppliers there and issue the notes from there without any problem.

The current Goods receipt and delivered note settings with inventory is still preferred by me

I am not sure that this provides a total solution to the situation.
The manufacture buys raw material A into location X then sends it to a service provider so that it can be converted into raw material B. You would have to transfer the raw material A out of location X and into location Z (the service provider), then you would need to do a production order for the conversion from A into B at location Z which would then be followed up with another transfer of B from Z into a new location Y.

transfer of B from Z back to X because the business nor warehouse changes. it is processed and returned back to the source.

I understand there is always a workaround for most problems but i believe in helping make working with Manager an easy experience. What @Abeiku suggested is more or less similar to having different software for billing and inventory management. The purpose of my feedback or suggestions is to reduce the work time when using Manager. We cannot expect a company to have a staff sitting whole day making entries for a record.

I accept that the new method gives more clarity. While for some business this is a regular approach, for others like me it is something that requires more time from an employee. Also it is not the approach regarding inventory in our area of business. On top of that I am forced to correct the stock quantities now and disable delivery notes which is a very important module for us. I am really disappointed now. :disappointed: As i posted earlier, Manager to me now is useful just to make invoices and record account transactions.

You have demonstrated into details how you can you can use the transfer inventory tool to handle @sharpdrivetek problem.

Caution
If the materials go to the business partner for further processing, the costs will have to be capitalised to the inventory. However production order will capitalise expenses (non inventory costs) to inventory straight from there by crediting the the selected expense account. You will therefore have to enter the bill from the business partner against that expense account to zero it out.

Yeah, but after the conversion, the final transfer location depends on where the inventory will finally rest.

This inventory acts as the bill of material in a production order for a finished good. This production order when issued will add the finished good qty and reduce the inventory item listed in bill of material.

You have to understand like @lubos said earlier, goods receipt note and delivery notes are globally issued with the intention to close/confirm purchases and sales of inventory respectively . if you intend to use these tools in your movement of inventory in the manufacturing process that doesn’t really count as purchases or sales of inventory but just transfer of inventory for conversion, then you are using the tools wrongly.

If the inventory legally/substantially don’t change hands then avoid using Goods receipts and goods delivered notes. This is because these notes are meant to confirm sales and purchase after the inventories have legally or in substance changed hands.

you said earlier[quote=“sharpdrivetek, post:30, topic:9986”]
the ownership of the inventory is still with the manufacturer
[/quote]

This means what @Brucanna and I are suggesting is the best path to take.

I may be wrong but this is what i know

Great then move them to the location of the next conversion point (a specially created inventory location to serve as the location of that business partner going to do the conversion).
If your company will do the next production (conversion) then just relocate them to the appropriate location. I hope am making sense sir

It is legally changed hands with a delivery challan (delivery note). The serial number of these delivery notes need to be mentioned when the business who processed the raw material issues a labor bill to the manufacturer.

what i meant was the materials is owned by the manufacturer but a legal document with a sequential serial number has to be provided to document that the material is delivered to the party for job work. When the materials are returned back to the manufacturer they issue their own delivery note mentioning that the materials issued by the manufacturer vide delivery note serial number has been returned to the manufacturer after job work. We need to provide the delivery note issued and the delivery note received if and when the authorities demand.

Delivery usually means to send to a customer ordered or sold items. When you give out the inventory, you have arrangement to collect them back in a processed form. So it is either you sell raw materials to them and buy another type of product from them for which bills and delivery not must be used to transfer the goods, or, you send them there just to pick them later when they have added their bit of production to it, which isn’t a sale and therefore doesn’t need delivery note. It a form of delivery but the delivery and goods receipt note in Manager is meant to be issued to customers and suppliers and not manufacturing partners.

You can design a different form that can be used between you and your business partners for the movement of inventory.

Do the business partner return the inventory after they have converted them? if no then it a sale, if yes then you haven’t legally transferred the materials to them so why a delivery note?
If they insist on a delivery note create a different company and issue it from there as suggested above and reserve the delivery and receipt note in the main company for your customers and suppliers.

So when you send the inventory to them, you are just changing the location of the inventory because they will be returned, everyone of them and they will pay for damages if they damage any this doesn’t constitute a sale and therefore Manager.io Delivery Note tool as it is now is not appropriate.
Design a new form call it maybe “Transfer for further manufacturing form” or something detailing the qty, type etc of inventory transferred there which will be counter signed by your business partners when they arrive there.

Please do you understand?

I am sorry but its not about what i understand rather what is legally acceptable. I have explained the legal procedure we need to follow in our country and that is what we can follow.

We already have a book for this and we are going back to it.

I just hope whatever i have explained is taken as a suggestion and maybe implemented as a workflow for manufacturers in the future updates.

Thank you for your time and appreciate your help @Abeiku @Brucanna @lubos