Error in inventory calculations


please read this issue

in the attached image above is the transactions of our inventory item “GREEN CAPS”

In production order 11, we used 208,350 pcs of green caps and remaining green caps inventory was = 76,500 pcs

In production order 12, we used 123,150 pcs of green caps and remaining green caps inventory was = 0 pcs
But remaining should be in negative “76500-123150 = - 46650 pcs”

in my next purchase invoice INV 10031 i bought 140,000 pcs and my balance shows 140,000.
but it should show = -140000 - 46650 = 93350 pcs

Is it a problem of inventory locations?

Can you show edit screen of production order?

I cannot reproduce this. If I overdraw available inventory for a production order, the quantity goes negative, just as you expect. What version number are you using?

I’m not using inventory location

I’m using cloud version

Using Desktop version 19.9.38, I confirm Tut’s experience - using more input than available produces a negative stock position - in fact it seems to generate 2 stock movements - one to use up available stock and another to generate the negative balance

@raj_nann, we are back to @Joe91’s earlier request: please show the Edit screen of production order #12.

Also, have you ever noticed this before with any other production order?

yes i noticed with other inventory raw material & production orders

this edit screen of production order 12

@raj_nann, I think I know what you are seeing. As @Joe91 wrote, Manager breaks the production order into multiple transactions when there is insufficient stock on hand. The first uses up all available stock at the current average price. It is shown with the production order reference number, if there is one. Subsequently, additional entries are generated automatically as more stock becomes available. These temporarily drive the quantity on hand into negative territory. The reason this is necessary is because, after the available stock is used, there is no average cost to apply to the Inventory - cost account when the finished goods produced with the backordered green caps are eventually sold. These automatic entries do not show the production order reference number.

When you next buy the back-ordered item, a new average cost calculation was started and carried forward. The dates on the automatic entries are changed to the date of the new purchase. Had you looked at the item transactions on 5/9/2019, and in isolation, you would have seen a negative balance of -46650.

In your particular case, however, when you purchased 140,000 on 6/9/2019, you also entered another production order that used 126,250 green caps. Apparently, you did not put a reference number on that production order, but it is the one with “ER120” in the Description column. This production order took precedence, leaving only 13,750 green caps to be applied to production order #12. So the quantity on the automatic entry from production order #12 was adjusted by Manager. A second automatic entry (for a total of three) was created for production order #12, with 32,900 pieces.

Then, on 7/9/2019, you bought two large lots of green caps. So the remaining 32,900 green caps from production order #12 could finally be priced. The date for the last automatic entry was adjusted again.

In summary, back-orders produce what may be confusing quantity balances after the fact, because their application dates shift as purchases are made. This confusion can be made worse because of the precedence Manager assigns to transactions entered for the same dates. But, once purchases catch up with production orders, the balances are correct. I assume that if you had counted your green caps on the morning of 10/9/2019, you would have had 290,500 in stock.

As a final note, the situation could be even more confusing if there are multiple production orders using back-ordered inventory. But eventually, everything will settle out.

thank you very much for explaining all this… sorry for causing u trouble

i checked those transactions with no description… they direct me to production order #12

now everything is solved … thank you

I should thank you, @raj_nann. Modeling your situation helped me understand how Manager treats overlapping production order fulfillment with backordered inventory items. Previously, I had only looked at the first level of splits in transactions.


Just want to clarify that this no longer applies in the latest version (20.5.50).

When you click on quantity figures under Inventory Items tab, you will get transactions and quantities on dates as they were entered.