I can provide… but there is a lot of data even for the 1 example item i showed or do you just want a sample of a specific time 2 or 3 months in that FY?
Yes we sell the Inventory at $0 price (not cost sorry) as we are contracted to provide goods at a monthly fee regardless of amount of goods required. you are correct… it seems very clear from the data that manager prior to around 12 months ago would not show any inventory item sold for $0 on the P&L I have verified that is the case already as all the items missing from the screenshots from the drilldown on the old versionclearly show the customers who were only invoice for an amount of $ rather than $0
Only sales of inventory for more than $0 price show on old version P&L
All sales of inventory show regardless of $ on new version P&L
Yes the old reports seem to have left a lot out… In fact every time we have sold an inventory item for $0 in the history of our business it seems it has never hit the P&L which is a massive massive issue.
If this has been going on for years why have you not questioned it in any of those previous years?
I would have been concerned if this had been happening to my reporting.
The implications of what you are alleging are that over all those previous years the inventory on hand balance in your balance sheet would have been substantially overstated based on the physical stock you would have had in your warehouse.
Also, your profit in those previous years would have been substantially overstated.
I am having difficulties understanding why alarm bells were not ringing many years ago.
Having said that, if you want help from this forum you need to send screen shots of a sample transaction from start to end and also include header information in those screen shots.
So far only two of your screen shots have shown all the header information and it is very difficult for anyone to analyse your problem without it.
We were not aware there was any issue in previous years… Its a small business and we carry a lot of stock that moves in and out very quickly 90 pecent of it invoiced at $0, that stock is regulary stocktaked but if the inventory value and counts all match… which they do… nothing was noticed…
You are correct on the balance sheets also and overstated profits but again what do you check and balance that against? Especially given this issue has existed since our first day with manager.
The issue was only recognised once P&L data showed the massive difference against a previusly printed hard copy.
Im confident of the issue despite you reservations… the data i see clearly shows that manager has not been reporting any inventory items on the P&L that were invoiced at $0 in the older version all other inventory items report absolutely fine on the P&L
pick any of the transactions listed in the above screenshots, ill gladly post the old and new versions of them… But as i said it seems pretty clear whats happened at this point. and now we just try to move forward.
I can’t tell. You have not included the breadcrumbs at the top, so I can’t tell what this screen is or how you got there. And you show page 2 of 4, so I can’t tell how it corresponds to balances shown on your P&L Statements. All I can tell is that the two versions are identical.
You really need to illustrate a complete story, following some transaction through the entire workflow and demonstrating how you get to different results. Don’t show partial screens and expect us to understand. We cannot see your records.
@Tut and @AJD what this post appears to show is all transactions in the old Manager version (the last screen shot) are included with identical amount in the current Manager version. The difference is the new manager version shows lots of other stock item sales as well. According to @joelp these sales correspond to those recorded in Manager as sold at $0 Manager sales invoice amount.
I suspect this information was used to calculate the profitability of the fixed monthly supply fee vs actual supply costs resulting in very poor businesses advice.
That has not, in fact, been demonstrated, although it may be true.
Without more complete information, we are all speculating. Based on @joelp’s assertions that physical counts of inventory matched records, etc., it would seem that acquisition costs of inventory that were in Inventory on hand got transferred somewhere. Manager would not have allowed the books to be unbalanced. The question is, where did they go? We have not seen a balance sheet, so for all we know, they could have been languishing in Suspense for years. Or, depending on how old the old version was, they might have been in the now-deprecated Starting balance equity account. But they didn’t magically appear in some recent update. Again, that is why it is critical to see actual representative transactions rather than just reports.
@joelp, it is worth noting that the major change to inventory reporting that took place in the last year or so was how the program handled insufficient quantities. Previously, when the quantity was insufficient to satisfy a sales invoice, the cost was transferred at zero because the average cost of inventory on hand was zero. If you purchased additional inventory the next day to meet the demand, the cost of that inventory was not recognized in the sale just completed, but would influence future sales. Over the long term, cost of goods sold was accurately reflected, but not always during shorter reporting periods.
Now, Manager holds the transaction until adequate inventory is purchased and only then assigns the cost of goods to the Inventory - cost account. As I think about your situation, this has a possibility of being what happened. I don’t know if you ever sold inventory items you had not yet acquired, but it might explain what you are seeing.
The net result of the old way of reporting cost of goods sold was that income was sometimes overstated in one period, but understated in the next. You can’t really say the old method was wrong, but the new method is more accurate in that it is more current, and insufficiencies work themselves out more quickly.
So my question for you is this: did you ever create sales invoices for inventory you had not yet formally acquired? Many companies do this.
If i go into the balance sheet for the same period as the P&L’s listed above. and i go into the Inventory on hand in that balance sheet. Then search for the inventory item number 5154K. then click on the balance to show all balance sheet transactions for 5154K.
In the older version it shows no sales transactions at all for the item when it was sold at $0
All purchase transactions from suppliers are there.
Here is the first few from this view on the older version (i have tried to capture the top part of the screen that i think you were after)
All transactions for both Invoiced at $ and invoiced at $0 are showing in the general ledger on both old and new versions.
Its just not applying?(excuse the terminology) the $0 invoices to the P&L on the older versions
I just cant seem to find a visual representation that shows the difference between the 2 versions where it is not doing that (or is doing that) apart from what i showed on that specific inventory item in the 2 P&L’s on the 2 versions
The suggestion is to broaden the date range in the report then search for a specific date string in the resulting report. Looking for a transaction not in the old report in in the above post.
