No, you either use the average cost method as used in Manager using the Inventory tab or you use the Opening Stock, Purchases and Closing Stock method.
Honestly, if your accountant can’t understand the average stock method and you would prefer to use that method, maybe you should change your accountant
Well if that is the case, I just prepare P&L in excel using the information in manager.
writing one full page shouldn’t be messy than restructuring chart of account with 3 years worth of transactions.
Yes. Inventory tabs useful throughout the year. While the report only needs to prepare monthly/yearly.
I use the inventory report (where total purchases & closing balance available) to prepare the P&L with opening stock, purchases, closing stock and emit the inventory-cost.
You can prepare any report you want outside of Manager. But why bother if you are going to all the work of maintaining your inventory inside the program? The various inventory reports available in the program should give you everything you need at the end of a month or year.
yes, im using the inventory report in the manager for the P&L (purchase & opening closing stock).
i still use the average cost method. it just that i use inventory opening+purchase-closing in the P&L (EXCEL), instead of inventory-cost alone. the net income remain the same as in the manager report.
@DSM_Enterprise, maybe I do not understand what you are doing. But, if (1) you are using Manager’s inventory features and (2) you are using the average cost method in your separately created reports, it seems you are duplicating effort.
Tut, my auditor need to see these input (opening+purchase-closing) in the P&L. but in manager report, i cannot display it. as Joe91 said i can only choose either one.
It makes no sense for your auditor to demand to see things in the P&L that are unrelated to how you are keeping your accounts. The P&L only shows account balances for the defined period. If you are accounting for inventory using Manager’s built-in system, the numbers your auditor is asking for cannot be made to appear in your P&L report, no matter what you do.
However, the Inventory Value Summary and Inventory Quantity Summary should give your auditor the same information. They have the advantage of being produced by your actual accounting system rather than an outside spreadsheet, which could very easily be faked to present anything you want.
i just dont have much time to argue with them. so i gave them all the reports in manager (bs, inventory value & qty summary) and p&l in excel. as long as they satisfy and approved the report, so all be good. i give them the access to my system, unfortunately they not familiar with it.
Yes you can - for reporting purposes only.
Throughout the year use the Inventory tab and Inventory - Cost account as per normal.
Modify the chart of accounts to reflect the opening - purchases - closing format by adding the the opening and closing stock account and renaming the existing Inventory - Cost account to Plus Purchases.
So you have gone from this to this using your figures:
At year end create a Journal Entry to enter the P&L adjustment for the closing stock:
@Joe91, they are not “using opening stock plus purchases less closing stocks” as an inventory system, they just want to REPORT the average cost inventory system in the opening + purchases - closing inventory format.
If those requesting the report are happy with this, then that is excellent.
Generating a report by report transformation or doing a similar thing manually via journal entries and COA structure, will indeed have the same problem. The generated report will contain numbers similar to other methods of calculation, but not the same. Not sure how easy it would actually be to describe how the numbers were calculated and what they mean, given the method used to generate them is not widely published. Production in progress behaviour over a a hybrid calculation method would further add to the difficulty describing how the numbers are actually calculated.