Hoping someone can help answer why the inventory quantity did not change when stock was sold. An invoice wasn’t created, it was a cash sale and entered as a receipt. It is also showing on the P&L report as income, but inventory purchases are not shown as expense, and I know that only the profit should be reported as income. I must be doing something wrong.
Ok. I figured out how to change the inventory quantity, but for some reason it has entered it in inventory as $333.33.
OK. So I see that Manager has averaged the sales.
Is it not possible to have inventory (like livestock) that varies in price?
How can I better manage this?
If I can’t figure a way, I’m going to have to manage the livestock in a spreadsheet and only enter the profit on sales and inventory total in Manager.
Is the last screenshot the inventory view? I wonder what you mean by “varies in price”? Inventory is not tracked by each specific item (animal) in Manager, rather by ‘item’ type which is essentially a bucket of all items which are similar to each other (Duroc sows, English Black piglets, etc.). Purchases of that type of item are added to the accounts, and when items of that type are sold, the account is decreased by an assigned value based on the costs in the account and your chosen valuation method (First-In, First-Out; Weighted Average). If you wanted to track each individual animal, it might be better to use Fixed Assets or Special Accounts, but that could get kind of tedious.
Thanks for your reply
Animals vary in sale price, but it seems Manager wants to average the prices the animals are sold/disposed for - which is what has happened with the $333 figure. I entered 150 each, but it has changed it to 166.67 each. This is wrong! (It averaged 200 + 300 / 3 pigs)
It has also included the whole $300 as income in the P&L report. But this is also wrong. We actually made a loss on those 2 (have decided to go out of breeding pigs) - they were the 2 in the starting balance journal. So if it had been say ‘hay’ as an inventory item, instead of ‘pigs’ how would it be any different? Hay is sold for different prices at different times and seasons. This screenshot includes the $200 disposal:
What type is your most recent screenshot displaying?
*“tab” not “type”
In other words, is this a view of ‘Inventory’ or ‘Expenses’ or what, I have suspicions as to what is going on, but cannot follow those out without knowing what is being displayed. Thanks
It is “Inventory Items” > “Pigs”
First, what version are you using? as I cannot replicate this in the most recent version (you can find the version at the very bottom of the software)
Second, let’s back up one step, you probably know this, but here is how income is calculated:
Income/Revenue/Total Sales
Minus: Cost of Goods Sold
Equals: Gross Profit
Minus: Other Expenses
Equals: Net Income
So the sale of 2 pigs for $150 each, should display in ‘Inventory - Sales’ for $300.00 and the cost of what you paid for them ($500 total/3 pigs=$166.67 each) counts as Cost of Goods Sold when you sell them, for a Gross Profit of negative ($16.67) per pig. If go to ‘Summary’ and look in ‘Inventory - Sales’ does it display the Receipt for $300.00?
As for why it is averaging it, in the second Receipt shown, after you figured out qty., Cost of Goods Sold is set to Automatic, so Manager averages the total amount paid for pigs by the number of pigs: $500 total/3 pigs=$166.67 each; if you use Manual cost of goods sold, it should apply whatever amount you specify to Cost of Goods Sold; however, I would BE CAREFUL using manual cost of goods sold, as then you have to make sure that the rest of the cost is applied to the remaining pig whenever it is sold, and with higher volume items you could easily expense too little or too much inventory value to cost of goods.
Also, this looks like the inventory function on an older version of Manager; Manager has significantly changed its inventory function, and you can now select First In, First Out; Weighted Average; or Manual inventory valuation method.
Hope this helps!
Thanks for that reminder. I haven’t upgraded in a while. Version is 24.4.25.1463. I have just done a back-up. Do I need to uninstall the old version do you know or will the new one over-write it? I have forgotten.
I usually use the P&L to complete our Partnership Income tax return (only option is still paper copy here in Australia). So I transfer the income and expenses to the tax return.
Do you know which report shows Cost of Sales? Thanks for your help.
- Just install the new version, and it will replace the old, make sure you backup your company file(s) first
- If you haven’t edited the standard Chart of Accounts that comes with the software it should display as ‘Inventory - Cost’ on your Profit & Loss Statement or in the Summary tab.
So after installing the new version, this is what happened:
And I didn’t have an ‘Inventory - Cost’ in Chart of Accounts, so I added one under Primary Production Expense, but it does not show on P&L.
It’s different than the ‘Inventory - sales’ set up in COA though, which looks like it auto-generated (maybe when I selected to include Inventory?)
Yes it auto generates an ‘Inventory - Sales’, ‘Inventory - cost’ and ‘Inventory on Hand’ account when you activate inventory, and inventory transactions are posted to those; look at your inventory item near the bottom if ‘Custom expense account’ is checked, see what account is selected, that account should appear on your summary, and P&L statement, if it is not checked then it is using an auto generated expense account just like the auto generated ‘Inventory - sales’ account, and that should appear on your summary and P&L Statement as ‘Inventory - cost’. If you can’t find it, please post a screenshot of either your P&L or Summary tab or both so the members here can help. Hope that helps
Also, a screenshot of your Chart of Accounts.
Brilliant. Thankyou! The $300 cost is now showing up in both income and expenses.
The only issues I have now are that the ‘inventory - cost’ has popped up in Non-Primary Production expenses, instead of Primary Production expenses (these are accounts I added later). Do you know if there is some way to direct it to the PP Expense group?
The other thing is the entry for the sale of the Large English pigs still has 3 transactions as per the screen shot above. Maybe I should delete the entry and re-enter?
Go to the chart of accounts, click ‘Edit’ next to the ‘Inventory - Cost’ account, and under group select the PPE group instead of NPPE group.
You have been SO helpful. Thankyou very much!