@lubos I’m sorry I don’t follow.
Do you mean to tell that the shipping, import tax and clearing charges all has to be in 3 different purchase invoices for item ABC purchased from Supplier X?
Thanks
@lubos I have managed to pull it off.
Please find below the screen shots. But instead of taking “Freight-In” on Inventory On Hand when creating PI, have to take the item itself.
Yes. That’s correct.
You basically record in Manager exactly as it happened in real-world. If you have received 3 invoices from 3 different suppliers, that’s how you record it in Manager.
If all invoices are to increase value on hand for inventory item, then you categorize amounts on those invoices to that inventory item (you leave quantity field empty if invoice is increasing value only and not quantity - e.g. shipping, clearing charges)
@lubos Bravo! I guess my purpose for creating this thread has been fulfilled now! Thanks a lot for your help! Much appreciated!
1 Like
My Manager does not give option of Multi-step Income statement. Plse assist. See below screen dump below:
Multi step income statement was a separate feature, but it has now been incorporated into the new and improved chart of account under settings - please refer to your other topic - The screen dump didn’t happen.
I tried creating 2 separate purchase Invoices in 2 currencies and the Inventory cost doesn’t increase.
I think probably because I didnt associate any inventory items with the clearing charges (pls see below screen shot) But in order to do that, it’s a lot of manual work. I paid Rf 519.78 as total clearing cost for 10 Inventory Items But I beieve if I’m to spread out this 519.78 to the 11 Inventory Items and 212 pieces, I have to manually calculate how much for each Item and each piece right, which is a lot of manual work?
Is there a easy way for this?
Thanks
It appears that you haven’t nominated a Supplier. If the supplier box is left empty, no updating will occur
even with supplier also, it doesnt happen. this has nothing to do with supplier.
Yeah, there is really no other way I’m afraid.
You definitely need to select inventory item (one or more). If you don’t select inventory item, the amount will be posted to Suspense.
The Supplier may not directly relate to your post, but every Purchase Invoice needs a Supplier, otherwise it will end up in the Suspense account. Your screenshot shows no Supplier, so to clarify - no updating will occur to “Accounts Payable”.
thanks @lubos
Any shortcut in the pipeline for this? Suppose, if an invoice has a lot of items, this means it will take a lot of time.
How that shortcut would work? How do other accounting systems deal with it? If they deal with this at all…
1 Like
There is a great article about this topic, i am sure you will find your answers there https://easyerp.com/blog/how-calculate-cost-of-goods-sold/
Hey,
I just tried to use inventory kit today. its a great option for the quantity, but the unit price has something i think is not correct.
I have an inventory item which is a pack of 10lb, from which we sell in loose mostly 25grams, 0.5lb and 1lb. i can make separate inventory items for all servings and adjust quantities via production orders, but this in my experience disturbs the physical stock as sometimes production orders are missed etc.
so now we are using only 1 inventory item which is of 10lb for all transactions by adjusting and calculation exact quantities
like
in sales invoice if 25 grams is sold for Rs.200
and 10lb price is Rs.24000
so while making an invoice we make quantity 25grams / (divided by) 4530 grams (4530grams = 10lb) = 0.0055187637969095
and price Rs.200 / (divided by 25grams) x (multiply by 4530 grams) = Rs.36240
this is how the total amount becomes Rs.200 for the calculated quantity. but in inventory kit the amount i have to put is 36240 so it show on the invoice as well which is not correct as to customer we are charging 200. and this is affecting the inventory profit margin report which comes to be incorrect.
is there a possibility that there are two sections of prices that 1 multiplies with the quantity and one is shown on the invoice. like a unit selling price and a selling price which multiplies with the quantity?
if im using the feature incorrectly let me know
the best option would be to make two inventory items, one in lbs and the other in grams.
make a one time production order with finished item of 4530 grams and the bill of material as 10lb.
when selling in grams use the inventory in grams.
Thats how we used to use it but we can’t make complete production order as we sell in 0.5lb and 1lb aswell and remaining stock is still in 10lb packaging box. Its more practical to make 3 inventory items and use production orders but this in reality disturbs the physical and manager stock and say we are selling in loose as the customer requires and packs it on spot. So this would have to make us so many production orders time to time. While if we use inventory kit it will always subtract the desired quantity from the main inventory item only thats the ideal situation for us. The only issue is price calculation as if i put 200 sales price of the inventory kit then this 200 figure is multiplied with 0.005xxxxx quantity which has to be subtracted which makes the actual sale price of the item only Rs.1 while it should be Rs.200 for this much quantity. But if i put sales price 36420 and then it multiplies with quantity we get the correct figure in the sales which is Rs.200 . But on the invoice the figure shown is 36240 while it should be 200
Thats the issue
Quantity is not a problem
inventory kits are used to make two or more items as one. and not one item as many.
so inventory kits is not the proper method for your use.
you can either use production orders for every sale or adopt my earlier suggestion.
Another option is to give up trying to account for every 25g, 0.5lb, or 1.0lb sale as an inventory item on a transaction-by-transaction basis, especially if such small quantities are common. Purchase the inventory item in 10lb boxes. Sell it under its original identity if someone buys an entire 10lb box. But for smaller quantities, sell it as a non-inventory item. (See this Guide: Manager Cloud) Keep one box open for small quantity sales.
Then, weekly or monthly, make a physical count and adjust your quantity on hand with an inventory write-off. Post the write-off expense to a suitable expense account created for the purpose. Include that expense account in a Cost of Goods Sold group, along with the standard Inventory - cost account. Choose the physical count period to match your tolerance for time lag in your record keeping. This might be influenced by legal reporting requirements, tax filing schedules, or lead time for obtaining more product from your supplier.
Search the forum. There have been a number of discussions on this so-called “stock take” inventory method. You will be able to list the “unit price” for the customer as what they pay. You will not have to perform any mathematical calculations with 16 decimal places.
While the above process creates a work around, but to classify inventory sold as inventory write-off is poor accounting, besides cluttering up your accounts with unnecessary accounts - a pet hate of some.
Your process should reflect the reality and not be arbitrary. Therefore your process should be:
Create two inventory items
Product A - 10lb
Product A - Misc
Do a Production Order to transfer one Product A -10lb to Product A - Misc.
This Product A - Misc should be stored in a different location so as not to disturb the physical count.
Then use Non-inventory Items to sell the various sub-size quantities.
When the Product A - Misc packaging is empty, then create a zero value (quantity only) Sales Invoice to appropriately transfer the Inventory Item cost to the Cost of Goods Sold account.
Alternatively, if you have a high volume of these sub-size sales, (say a package or more per month) then you could skip having the 2nd Inventory Item and the Production Order and just do the zero value Sales Invoice for Inventory Item Product A - 10lb whenever a package (or two) is being transferred to the sub-size sales location.
1 Like