Question about Production Orders and total cost of a item in inventory items

1

Hello there,
I would like to see how much money I have in value of products in ‘Inventory Items’. This wil pop up when i fill in the 'Starting balance" when i create a item.
But will not chance when I make a production order, instead only the average cost goes down. Can some help me out?

2

Your question is unclear.
The total value of Inventory Items is shown in the Inventory on Hand account on the Summary tab.
You only put values in to Starting Balances, if you are commencing with Manager from another accounting system. after that the processing of Purchase Invoices and Sales invoices will update Inventory Items.

Production Orders will only transfer the Inventory Item values from the input items to the output items.

3

Thanks for Your message. The first things i understand. My question is about when I make a production order of a item i have in my inventory. The Total cost does not increasse instead de average cost decreases. Do you understand?

4

When you create a production order the total inventory item value doesn’t change, only the values within the Inventory items changes. Let say you have the following inventory items before production order

1015×223 16 KB

You now do a production order combining one each of the input items into a finished item.
Now the inventory Items will look like this

1016×212 15.3 KB

The total value has remained the same

5

Thanks! I think i understand now. I am going to try a different approach and use Purchase Invoices to buy the item for zero cost instead of usesing production order see if that wil influence the total cost

6

Please do not. That would be a completely incorrect use of the program.

Your statements seem contradictory or incomplete. You said,[quote=“Roze_Bunker, post:3, topic:8990”]
The Total cost does not increasse instead de average cost decreases.
[/quote]

@Brucanna explained how total cost stays the same when you use a production order. The value of various items changes because their quantities on hand change. But average cost of input items cannot go down, because you have not entered any new sale/purchase transactions.

You need to describe your complete workflow to illustrate the problem you are having. How are you adding inventory items? Why do you think numbers are wrong? Give an example of how things change when using a production order.

7

Zero cost = 0.00. Total cost + 0.00 will still equal the exact same total cost, so there will be zero influence.