First three transactions has balance $ adjust and a related amount based on inventory change. I entered a production order and inventory increased, yet balance did not increase- stayed at “$0” After production and inventory increase, sales show a decrease in inventory but balance again stays at “$0”.
Can you please explain what you mean by this ?
When you say balance did not increase are you referring to “Inventory on Hand” account ?
Do your Production Order input items have either purchase price/average cost values ?
If they don’t have values then “Inventory on Hand” balance can’t change.
Can you provide screenshots of your Inventory Items and a Production Order ?
Thanks for helping out! Not Inventory on Hand, but the “Value on Hand”. There are no options to input a price/average cost in the production order. I have however provided a purchase price and a sale price to each inventory item individually. I have attached a screen shot of the Inventory Items account. My example is line 2 CH12. The second screen shot is of Transactions for the CH12 line (clicking on the value on hand). Why doesn’t the amount and balance reflect what happens with the QTY column? The next screen shot is of a production order that does reflect an increase in my inventory balance, but not in the value on hand.
This also is happening with the inventory when I purchase a supply. If you look at the inventory account, third line “G033” you see a back order of 433. Here is a screen shot of the transactions when I clicked on the 433 and there are only production orders. I have made multiple purchase orders, however from this screen shot
Sorry, I had overlooked your earlier 2nd response.
Purchase Orders “don’t” update Inventory - only Purchase Invoices update Inventory.
You send a Purchase Order to a Supplier so they know what you want to buy.
When you receive delivery you need to enter a Purchase Invoice.
In entering the Purchase Invoice you can nominate a Purchase Order - far right
Yes, screenshot much better
Yes, each inventory item that is a finished product and is for sale has a cost and a sale price attached. Each inventory item that is a supply item used in the manufacturing of the finished product does have a cost attached. Here is the production order screen shot- any better?
Please read the above amended response
No problem. So that is good info for the ingredient side of the manufacturing side. How does my manufactured end product that I sell get updated. For instance, I buy via purchase order and purchase invoice a case of bottles, and ingredients. I manufacture the ingredients and fill the bottle for my final product. My inventory of bottles and ingredients should increase from the purchase. Should they also decrease from the production and usage of each? Then should my final product inventory increase due to an increase in inventory?
Now when I sell that final product, I do see a decrease via sales invoices so this works. It is just I am not seeing any changes to final product inventory increase or value on hand for some reason. Do I need to use something more than production order to get this to work?
Here is another observation that I don’t have an answer for. On this screenshot (hopefully it is viewable)
Check out the 6/6 lines. There are four of them, all sales invoices to the same contact. Three show an amount, one does not. They were all four filled out the same. Why would one be different? This is the same question for many of these transactions both in sales and in production. Each inventory item has a cost associated with it, so I am not sure why that cost is not reflecting here either in positive increase in inventory or in sales??
Thanks again for your help and please let me know what further info or screen shots I can provide
I have been looking at this some more and maybe you can help me understand. When I create a purchase invoice it is against an account. I think this may be why the inventory item is not updating. Is there a way to attach an account to an inventory item or vice versa? I can select a description and quantity but cannot link a specific inventory item to that invoice. This does not make sense to me. Back to my bottle example. If I run out of bottles and need to purchase more. How do I account for the purchase of the bottles via a purchase invoice? This would then update my bottle count showing I just purchased and increased my inventory. It would also increase my value on hand naturally. Am I doing something wrong with my accounts? Should there be an account for each item, ie if I have two sizes of jars, do I have an account for each size?
I think this is my disconnect. Purchase invoice and my understanding of “account” vice “inventory item” Does this make sense??
The screenshot is difficult to read but it appears that you have a lots of negative quantities in stock, that means Manager is trying to work backwards - it is selling inventory before it is purchased.
In your CH12 Smokey Chipotle 12 oz Production Order above there is bottles & lids but no Smokey Chipotle in the bill of materials ?
However, lets do a case study on that product - Sweet & Savoury 9 oz - is that a product you make ?
By doing much smaller screenshots, can you show just the Finished and Ingredient section of the Production Order for Sweet & Savoury and also show the Inventory Items that make up that product.
Sorry @Rustictomato our last two posts must have crossed and I have just read yours.
Yes, when you create a Purchase Invoice for Inventory Items it is against an account Inventory on Hand and when this is selected a new field called Inventory Item appears where you attach the item, then enter the qty and cost. On completion the Inventory qty & value gets updated.
That was exactly what I was missing- using inventory on hand vs another
account. THANK YOU!
I am playing with the program some more and may be in touch. Thanks again