That indicates you have not been properly recording purchases of inventory items in your bills of material. When that fundamental problem is resolved, everything else will work automatically.
Not unless you saved old downloads and old backups. Your current data file will no longer work with an older version of the program because it has been converted and opened by a newer version.
It is good to have this concept of production in progress. My only issue is that it results from having insufficient quantity of raw materials.
In the (agricultural) industry of my practice, the production orders are useful for scheduling production of crops. However, these crops take a minimum of two months to start yielding. Is it possible for the system to handle the farming activities as production in progress till the products are ready for harvest and sale? I think the production in progress should not result only from having insufficient quantities of the production inputs.
Is there any help in this regard?
Thank you.
@Courage, you are misunderstanding the nature of insufficient quantities. Insufficient quantities are the result only of using inventory items for production that the business does not yet own. In other words, they reflect incomplete purchasing. In agriculture, you are not purchasing the harvested crops, you are producing them from seeds, sets, or other raw materials that you do purchase. Production in progress would represent the accumulating value of harvested crops only if you entered a production order using seeds you did not own, as an example.
@Tut, thank you for your explanation. However, it is not that I misunderstand the nature of insufficient quantities at all. What I am trying to suggest is that production in progress should not just be as a result of insufficient quantities. As you may well be aware, there are three categories of inventories in accounting: raw materials [RM], production (work) in progress (process) [WIP), and finished goods [FG]. Manager recognizes all these as inventories, without distinguishing whether it is RM, WIP or FG. Therefore, my inquiry is towards understanding how Manager handles the issue of classifying a production order as WIP based on the stage of production where the items being produced have bypassed the stage of being a raw material, but have not gotten to the stage of being a finished good. I got the concept of insufficient quantities perfectly, but curious to know how Manager handles the issue I raised. Thar’s, is Manager able (or can it be designed) to handle the situation of crop production where the crops are not yet ready for harvest?
It doesn’t. Production orders are handled as though instantaneous.
Many thanks for the response, @Tut.
Is it not possible for manager maintain the average cost of all existing inventory items even where there is zero or negative quantity till a new invoice is generated.? I my opinion this will resolve the problem of production in progress and zero cost of goods sold when production orders and sales are entered with insufficient quantity. If you allow inventory quantity to fall below zero at the existing averafe price, production orders could be entered to generate the cost of production at the average cost of the existing price. Sales could also be entered where there is insufficient quantity and the system will use the existing average cost to calculate the cost of items sold. As far as I know this is how other accounting software packages handle the temporally situation of insufficient quantities
If quantity is zero or negative, then cost price is zero or unknown. How do you determine the cost price? Manager assumes cost price cannot be determined until those inventory purchases (productions) are actually made (entered) and only then relevant cost of goods sold transactions flow through the general ledger.
Can you describe specific accounting system and how exactly does it handle negative inventory? We can go into it in detail and perhaps we learn something new.
I have been using and teaching Sage 50 Canadian Version for 10 years now and that is how it handles inventory quantities going below zero. Users have the option in settings to allow inventory quantities to go Zero. When inventory quantities is negative, the invetory value will not be zero as in Manager. The existing average price will be multiplied by the negative quantity to give a negative inventory value.
See attached a summary of Inventory summary report with negative quantities
(Attachment Inventory Summary.pdf is missing)
@bayeboafo, you need to log into the forum and upload attachments that way. You cannot attach files to emails.
Can you please add ability to insufficent qty in invoicing for detect stock level.?
Secondly add ability to show cost price while invoicing to insure pricing issue
Please check the ideas category for relevant topics.
