hi guys, wanna to get some help about the pnl report, the inventory cost on the report is not showing by division. Previous month is all working which it able to show up, but this month is gone. is there any change been made which causing the missing of data?
below with the picture that record is no there.
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Can you show the edit screen of any of the inventory items?
Hi eko,
Here the screenshot for the inventory setting, we didn’t set the division on item but we are putting it on sales invoice since the invoice is from different division
That is the issue because Manager does not recognize sub-accounts in Divisions. See also:
hi Eko,
Referring to the statement:
“In other words, the balance of the account is owned by the division, not the movement. You are not tracking movements like on P&L.”
From my understanding, this implies that while the Balance Sheet reflects ownership by division, the P&L report is designed to track movements by division. Please correct me if my interpretation is incorrect.
Additionally, I’d like to point out that the division functionality in the P&L report has been working seamlessly until recently. This issue only started occurring this month, despite the article you referenced dating back to 2021.
You are right, however, since perpetual inventory was scrapped, I don’t think that it’s still possible to match the Cost of Goods Sold (COGS) for a Division to the Sales or even to Purchases for that matter since the Cost of Goods Sold only looks at the gross movement of inventories and doesn’t care about the individual documents comprising it.
That’s why it’s only possible to allocate COGS to the division that owns the stock – which I don’t think provides any meaningful divisional P&L.
I think @lubos should take a look into this.
@Ealfardan is correct. What I know is that the old calculation method of inventory was unsustainable due to performance reasons. New inventory method is much faster but comes with 3 lost features:
- Inventory write-offs need unit costs if allocated outside of default cost of goods sold accounts
- When using production orders, you can’t have separate cost of goods sold account for raw materials and finished goods.
- And cost of goods sold cannot be split by division for inventory item that belongs to all divisions
Number 3 limitation is the one that concerns me the most at the moment.
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Hi all,
Thanks for the reply.
@Lubos, does this mean that the “number 3 limitation” will be reconsidered for inclusion in future updates? Currently, as I understand it, sales transactions with divisions specified on transaction lines do not reflect in any report.
This is a concern for us, as we rely on this feature to analyze the P&L of each division in greater detail. It is crucial for us to gain deeper insights into the performance of our divisions.
If this feature is a limitation for now, could you please suggest any alternative solutions that would allow us to achieve similar insights?
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I think this is strange and weird. How can you not worried about the raw materials inventory used for producing finished goods flow into COGS and appear in the P&L? Why doesn’t it follow the previous method where the value of raw materials used in production would be capitalized into finished goods and only recognized as COGS when the finished goods are sold?
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But also, an issue if an item belongs to Division 1 and sold by Division 2.
Possible solution i can think of is to enable inter-company invoices, remove division categorisation on Item (I know it would not match the rest of Manager design philosophy) so every division can buy can sell a specific item. Maybe same could be done for suppliers customers too.
Dear,
I have been a longtime user of Manager and have greatly appreciated its functionality over the years. However, I have recently encountered an issue with the divisional Profit and Loss statements that I need assistance resolving.
Previously, I was able to generate divisional Profit and Loss statements that correctly allocated the Cost of Sales to individual divisions. Unfortunately, this no longer seems to be the case. As shown in the attached report, when generating Profit and Loss statements for the Kariakoo and Uhasibu divisions, the Cost of Sales is not being allocated to these divisions. Instead, the Cost of Sales appears only in the overall Profit and Loss statement, as shown in the last column of the attached report.
Additionally, I noticed that in the overall Profit and Loss statement, the Cost of Sales is displayed as a negative value. This causes the software to add this negative value to the gross profit, instead of subtracting it as it should. As a result, the gross profit calculation is incorrect, as it adds revenue and cost of sales together instead of deducting the cost of sales from revenue.
I have also attached an image of a recorded receipt, which demonstrates that the allocation of sold items to the Kariakoo division and the corresponding inventory location has been set correctly.
Could you please advise me on how to resolve the following issues?
- Ensuring that the Cost of Sales is properly allocated to individual divisions in the divisional Profit and Loss statements.
- Correcting the calculation of Gross Profit in the overall Profit and Loss statement so that the Cost of Sales is subtracted from revenue as expected.
I would greatly appreciate your guidance on this matter.
Thank you
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hi @lubos
awaiting for the feedback.
Check the inventory items and inventory locations when you added it whether you input any negative figure at the time of adding inventories as inventory -cost will be extracted directly from inventory items after sales .