Inventory is not decreasing with the amounts on the invoices

1

I bought R 5800 worth of meat products and sold all. My Suppliers balance is equal to my Inventory for Meat.

I then sold all the products and invoiced the clients for the sales but the inventory is not decreasing with the amounts on the invoices.

April it worked perfect. May June and July its not synchronising with the invoices.

Please tell me what I did wrong.

I am done with all my invoices for July but but inventory shows I have R 4500 worth of meat products still on hand

2

Check the invoices again. you might have missed to select the correct inventory item.

3

When you go to Inventory Items tab, you can click on quantity or value on hand figures and see list of all transactions making up the final figure. If you expect the final figure to come to zero but it come to 100 instead, then see which invoice is missing out of list of transactions for that inventory item.

4

Hi there. I think its a bug in the system. Under inventory items tab all the sales invoices for July (14 invoices) are listed as R253.22 but but when I click view the invoice show the correct sale. For June it was all listed as R134.58. Click view and the invoice sale is correct. April and May also so messed up. How can I upload the data for you to check?

5

You can send it to support@manager.io

6

I checked your file and everything seems to be correct. I think you need to learn how inventory costing works.

The reason why the amount credited to Inventory on hand account is R253.22 upon sale is because that was the cost of inventory. No matter what you charge to customer, the cost of inventory won’t change. Cost of inventory amount is determined by how much inventory was purchased for.

To calculate cost of inventory, Manager is using weighed average method, see: Manager Guides

Amounts you have charged to customer are posted to Inventory - sales income account.

I guess what’s confusing here is that you can click Edit or View button in inventory on hand context which will give you the sales invoice. Instead of seeing an invoice which has different amounts, Manager should show some report to explain how did it calculate R253.22. So this is something I need to improve on.

Also, have a look at Inventory and Cost of Goods Sold | Explanation | AccountingCoach which sheds more light on general principles used by Manager (or any accounting system with inventory for that matter)

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