So I finally decided to continue using the manager.io. As we started setting up this software from the middle of our business so I have created the balance of all the customers/suppliers by creating sales/purchase invoice respectively, but having issues adding “Inventory on hand” items.
As I have checked the last mentioned solution of this issue in which the admin suggest to use Journal Entries to add the Inventory items on hand by selecting “Accounts” as “Inventory on hand”. But there is no “Inventory on hand” listed in the drop down list for accounts but its mentioned in “Chart of accounts” section under settings as Assets. So anyone facing this issue?
For now, an alternate method i found is that:
Create a new supplier named “Opening Stock/Inventory Balance”.
Add items in inventory by creating purchase invoice using unit price as “Zero” to automatically paid the invoice without doing any payment to supplier.
Now go to Settings > Inventory Revaluations > New Inventory Revaluation , select the date of added inventory items, then select inventory item, then mention its Average cost as per unit item depending on the item type. this method will reflect the amount of Inventory on hand items in summary page.
Now you will notice that there is Inventory cost reflected in summary page, which you can make it NILL by adding journal entry as credit on “Capital account” and debit from “Inventory - cost”.
So this is the method i am using rn, but if someone could help me to display “Inventory on hand” account under the list by adding journal entry which will ask me to select the item to add the item directly under inventory on hand by skipping the above all 4 steps.
I have attached the solution in which Lubos showed that the Inventory on hand is selected under accounts but i am not getting it under the list.
I have also attached 3 screenshots of list that i am getting in journal entry, chart of accounts, edit view of “Inventory on hand” chart of account respectively.
You cannot select the account “Inventory on hand” anymore in Journal Entries.
What you have made is more or less how Starting balances of Inventories are supposed to be entered, in fact, your method makes more sense than the advised method.
Just make sure to make the Supplier “Opening Stock/Inventory Balance” inactive so it doesn’t interfere with your day to day entries.
Having said that, a better way still, is to use a Zero Value Payment as follows:
Might be a bit off track here, but maybe it will help.
Once you have created an inventory item you can then select the item in the journal entry and it automatically selects the ‘Inventory on hand’ account (unless you set the item to custom accounts when setting up),
You must ensure you have the required column boxes ticked.
@VACUUMDOG What version of the program are you running to show this? I previously posted in another thread that the Inventory on Hand account will no longer show in the drop down box for the JE. See:
You must be on an older version than 24.8.4.1788 ?
Yes you can but for that you have to use the Obosolete Automatic Revalauation Method which is not recommended as its obsolete now.
No its doesnt. You can get away with Purchase invoices and Payments for starting balance but thats not preferred method.
The reason i suggested to enter Debit/Credit amounts in Journal Entry so its future-proofed and your figures doesn’t change if you change inventory revaluation method or else you can just enter only quantities in Journal Entry and define unit price manually in Inventory Revaluation Entry.
Btw you can enter everything using payments/receipts tabs that doesn’t mean Journal Entry and other tabs should not be used.
So i suggest use the program the way it should be used not by using workarounds that may cause issues if something gets a major update.
Correct. However when you make the journal entry as shown in my previous post (with automatic revaluation not enabled) to ‘Inventory - cost’ it automatically allocates the item to inventory on hand.
My first post I had the Obosolete Automatic Revalauation Method enabled (forgot about that), but it would be irrelevant if setting up a new business as it is automatically disabled.
The issue is people here doesnt know how Standard Costing method (which is the new method) for inventory works and they are thinking there is an issue with the system.
@VACUUMDOG Your latest screenshots prove my point. Journal entry is going to Inventory cost, not the asset account. @shahabb No disrespect intended, but this is a long way from standard costing…
If its that major issue you can always use software which uses your preferred methods or maybe you should design your own.
Previously @lubos also mentioned this is how system is designed to work so nothing is broken.
However, if you dont like this method of costing thats another thing but i can assure you its not broken. Calling something broken which you dont like is not right.
I’m sorry @shahabb, you can cheer for Starting Balance on Inventories as Expense as much as you want, but that will never change the fact that it’s a wrong entry and this is bound to create further problems when changes are introduced.
I’m not going to further argue about that.
Somehow, I can foresee his mind changing on this one.
Dear shahabb,
Can you plz show me how this program works to use the inventory on hand directly, for suppose if anyone start using this software in the middle of the on-going business and he wanted to add the inventory that he already have on hand. Or is there any alternate way to do that. Please share with me according to the latest version of this software (not the old one).
Thanks.
Dear shahabb,
I didn’t mention that this software is broken. The problem is i am not getting inventory on hand Account under the list, as whenever i select the item in journal entry after enabling the checkbox for item name, qty and description, so after selecting the item, it auto select the “Inventory - cost” Account for that item. There should be a proper way to enter the Opening Inventory balance which can help anyone to start using this software at the middle of the on-going manufacturing business. If there is any way then do let me know.
Thanks.
Dear VACUUMDOG,
I have already tried the multiple possible solutions before posting this post, including the above solution that you mentioned, but it still don’t list down the “Inventory on hand” Account under the list, can you try the current version and let me know if this is possible and showing the “Inventory on hand” under the Account’s list in Journal Entries.
Thanks.
What you have done is also fine and will give you the desired results but it would be better to use Journal Entry instead of Purchase Invoices for starting balances.
The method you followed
Skip point 1
2) create journal entry and check items and qty columns. Enter Qty for each item. (If enter value of each item as debit that would be better if not thats also fine because in step 3 you will tell programme the avg cost per item)
3) what u did is correct.
These 3 steps will give you inventory on hand value on balance sheet.
Also
Go to [Settings] > [Obsolete Features] > [Inventory Automatic Revaluation] and tick enabled.
Refer back to my first post and see how you go then.
I know it’s an obsolete feature but it works fine for me and I believe it should never have been changed. Just my 2c worth.
Only reason i didn’t suggest this because this is obsolete even though i myself am using this method as it gives me accurate costing of Finished items in manufacturing processes.
I hope both methods are kept optional as both have pros and cons (some businesses even prefer this periodic method). The issues for which this method is introduced in the first place should be solved using other ways.
