The main issue is that inventory cost is missing and please don’t divert the topic. Can any one suggest how to bring it back or work around it?
It is not missing, it is just incorrect to use it in this case.
And no, I have no further comments or suggestions
@gauravnbs, the main issue is that you are ignoring responses that tell you how the program works and what the proper accounting is. There is no reason you should ever select the Inventory - cost account on a purchase invoice. That account is an automatic account. Legitimate posts to it are controlled by hard-coding in the program, so the cost of goods sold on a sales invoice or receipt are automatically transferred there.
If you could ever select it directly on a purchase invoice — and I do not know that you ever could, nor what “previous version” you are referring to — that was only allowed because of a mistake in programming. If there was such a mistake, it has been fixed.
You have not said what edition (desktop, server, or cloud) or version number this screen shot was obtained from. In some ways, it looks like server or cloud. But it is missing key elements. And some elements of the display do not match any version of the program I have used over the past years. This makes me wonder if you are actually using an official release.
There are many things you might purchase that are not inventory items. Whatever you are referring to is irrelevant to this discussion.
Not if you are purchasing an inventory item. Can you quote such a statement?
Yes, as it should. It is an expense account. But dropdown menus throughout the program are meant to include only relevant options.
Can you illustrate this with screen shots?
Sir
I had created a new business for FY 2021-2022 and all the outstanding supplier balance has been entered without Item Code and selecting inventory cost account which was available in the previous version of manager downloaded in April starting ( doesn’t remember version no). Now I have upgraded to latest version which I downloaded today from official manager website and I am using the desktop version using in browser as copy to clipboard was not working (now working in latest version).
The scenario is that we are a book seller (sole trader) having almost 5000 plus inventory items. We don’t maintain stock since we have many items in purchase invoices like if we buy 20 different items from a Publisher A, say amount is 1000, we enter them as : create purchase invoice and enter it as inventory cost, qty 1 and enter amount 1000. Please refer screenshot. We don’t enter each and every item. This is because our CA uses tally ERP and they pass on journal entries to finalize the account every year.
In previous versions, the other way around we were using is that we created an inventory item as “Books” and while creating the purchase invoice we use Books as items and entered the purchase amount. The result is that Inventory on hand is increasing as an asset.
This is a misuse of Manager, which is a perpetual accounting system. See https://www.manager.io/guides/7470.
You also should not be trying to enter starting balances with purchase invoices. See https://www.manager.io/guides/15718 and https://www.manager.io/guides/5497. Further, expense accounts do not have starting balances to begin with. That is just incorrect accounting.
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We are not misusing manager as it’s a great piece of software, since CA is having 100s of clients and almost are using Tally ERP system, they use Tally for finalizing accounts. In our case we send manager reports and they finalize using manager reports using Tally ERP
Use the program as you wish. But you will get no help on the forum if you are unwilling to use it for what it was designed to do.
Starting balances of supplier needs to be entered by creating purchase invoices on back dates for current fiscal year as mentioned in manager guides etc
we are not entering starting balance for expenses, we had not mentioned any where
Your screen shot shows “Opening balance” in the Reference field. And you wrote:
To me, both imply you are trying to enter a starting balance of some kind with your purchase invoice.
Sir
My main point is that inventory cost account drop down menu is not appearing as shared in the screen shot.
We have no problem with creating a seperate item (assorted books) other than actual item codes which we use for sale invoice and actually selling, but problem is that assorted books item is qty is being accumulated and showing in inventory on hand (tested in new test business ) but showing in inventory cost in existing business. Totally confused.
Please guide or suggest a workaround for this as I told you that we simply create a invoice with qty 1 and purchase invoice
Read the Guides concerning inventory management and follow them. I have no other guidance. I have already pointed out several ways you are not using the program correctly.
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Ok
Thanks
If you aren’t maintaining stock, that is, not using the Inventory Items tab then do you need to have that tab activated, if not, then disable that tab as it’s not required.
Now go to Setting > Chart of Accounts and create your own Inventory - cost account which you could call “Books Purchased”. Now you can select that account when entering the Purchase Invoices.
You could read this topic which may help with your situation:
This is going to be same effect as in the current scenario all purchases are going to inventory on hand.
We had already created and assorted books in inventory item all the purchases we made using assorted books go to inventory on hand. Can you please elaborate what’s the difference between creating a new account in chart of accounts and creating a new inventory like assorted books and while entering the purchase invoice using using assorted books as inventory
The first creates a new account. The second creates a new inventory item (even though that item represents many, assorted items). Every inventory item is reported under a control account. The default control account for all inventory items is Inventory on hand. If you want an inventory item to be reported under a different control account, you must first create the control account, then edit the inventory item.
But @Brucanna was discussing a method for bypassing Manager’s inventory capabilities entirely. To do that, you must delete all inventory items, then disable the Inventory Items tab. The Inventory on hand account (plus several others) will disappear. In their place, you will need to create other accounts to accomplish the functions you want.