Trying to get my way around things for my Sports Club. This might be very basic and just bad understanding on my end. I must say, I’ve learned the basics in French and switched to english to ask my question, so some things might just be confusing for me with the translations. Thanks in advance for your help !
We have ordered 40 shirts from a company. I have listed the item “Shirt” in the Inventory Items, and then used the “starting balances” to put the quantity to receive to 40 shirts, and it shows these 40 shirts in my stock, with a price of 30$.
How am I supposed to add quantities to that inventory amount ? For example, what happens when I order more ? I tried using the “Goods Receipt” function, but I suppose it doesn’t sound like it sounds in French. From what I’ve read on guides, when putting 20 Shirts in this “Goods Receipt” function, it should automatically update my stock with 20x30$, but it doesn’t.
Can someone help me understand this whole “stock” process, which way is the right way to do it ?
Again, thanks a lot guys for helping people out here !
The Inventory on hand account value is calculated using Qty owned × Unit Cost, where:
Qty owned = Qty on hand + Qty to receive (Invoiced) - Qty to deliver (Invoiced)
So whenever you have a Qty to receive that’s been invoiced it’s going to be reflected in your Inventory on hand account whether you used the Starting balance feature or an unreceived Purchase Invoice.
This is how Manager accounts for Inventory on hand.
If, instead, you only have a Qty on order which hasn’t been invoiced, then you should not include these quantities in you Starting balances > Inventory items, instead, you can either:
Create an outstanding Purchase Order for it
Forgo the record untill a Goods Receipt or a Purchase Invoice is received
Thank you very much for your help @Ealfardan ! I’ve understand a lot more already.
What I’ve done in the end, I don’t know if it’s the correct path but it seemed to have worked:
List my shirt in the inventory item, with a price of 30$
Add a purchase invoice, linking it to the item "Shirts”, with the quantity and the price
=> this list my 40 shirts*30$ in the Inventory on Hand
Added a Receipt, linked to the item “Shirts”, with quantity and unit price columns.
=> this did not however lowered my inventory items, i had to recalculate it manually. Is that normal behavior or did I miss a step ?
Thank you again for your help, also if there’s an easier/Cleaner way to do it, I’ll take it of course
