Help understanding Inventory Revaluations

1

Hello all!

I am struggling to wrap my head around the “Inventory Revaluation” tab. The Guide for it does not explain how it works in depth.

I noticed my Cost of Goods sold numbers were not updating in real time anymore, so I created a test business to break down step by step what might be different. I started by entering a payment for 10 units of “Item A” for $100 total.

Purchase
Purchase978×596 14.3 KB

I then entered a Receipt for the sale of 5 units for $200 total.

Receipt
Receipt964×505 12.2 KB

Before, The “Inventory - cost” account would show $50 and “Inventory on hand” would show the other $50. But now all $100 is in “Inventory - cost” as shown below.
![Summary|690x305](upload://fGxahOQmFQb3XTLIXVukajHhKLN.]

Is this related to the “Inventory Revaluation” tab? When I try to run the “Inventory revaluation worksheet” report, there is nothing showing for Item A.

Worksheet
Worksheet672×507 12.6 KB

Can anyone point me to a better guide or explain what I should do?

I am aware of the “Dynamic Rolling Recalculation” setting but it is stated in the guide that it is not recommended for new businesses.

2

What version are you using?

3

I am on cloud version so 23.10.3.1023.

4

Please show how the Inventory Item tabs change as you enter the transactions

5

I don’t think the Inventory Revaluation has anything to do with your problem

1 Like
6

I think you are right. Here is before I record the sale of 5 units and after.
Before

IMG_0105
IMG_01051640×2360 165 KB

After

IMG_0106
IMG_01061640×2360 166 KB

It seems like for some reason the average cost is 0 which is why nothing is being transferred to Inventory - cost.

7

Drill down on the total cost figure from the “before” screenshot. Show the results.

8

IMG_0107
IMG_01071640×2360 160 KB

9

According to that, you never purchased the item. Show the Edit screen of the payment you said you used to record the purchase.

1 Like
10

IMG_0108
IMG_01081640×2360 200 KB

11

@ZzBlueBird42 would you be able to upload your test business here?

The Inventory Revaluation Worksheet should not be empty. It should show that you have 5 quantity at cost of 10 each.

1 Like
12

TEST (2023-10-04).manager (108 KB)

13

Thanks. I can reproduce the issue. Wasn’t your fault.

The worksheet “could not see” inventory items that have no starting balance. It’s fixed in the latest version (23.10.5)

2 Likes
14

Is that issue also related to why the cost of goods sold was not updating on the summary page as well? Here is the summary after the items are sold.

IMG_0109
IMG_01091640×2360 202 KB

Here is the drill down for Inventory - cost

IMG_0110
IMG_01101640×2360 187 KB

And here is the drill down for Inventory on hand

IMG_0111
IMG_01111640×2360 151 KB

After the sale, there should be $50 in each account, but they are not showing as such.

15

Inventory Revaluations is replacing automatic dynamic recalculation on every transaction to periodical revaluations.

As per the guide, when you run the worksheet, it only calculates figures, it doesn’t post the figures to general ledger. For that, you should copy the results of worksheet into New Inventory Revaluation entry.

1 Like
16

Okay this is what I thought. Thank you so much!

17

Inventory Revaluations needs project and division for division wise profit and loss statement.