I’m a volunteer leader (non-accountant) in an arts organization with two major activities, an art festival and a camera club, each with its own budget, volunteers, etc. I’ve set up two divisions to track these two activities separately, and it’s mostly working great. Except…
The art festival publishes books which it maintains as an inventory for sale (the camera club has no inventory). I set up the inventory items, allocated to the festival division, with new inventory purchases also allocated to the festival division, and these show up properly on Balance Sheets filtered for that division, and (properly) do not show up on Balance Sheets for the camera club.
However, when I record sales of an inventory item, selecting the festival division when recording the cash receipt for the sale, it relieves the inventory of that item’s cost if I run an unfiltered Balance Sheet, but if I filter by the festival division the Balance Sheet shows the unrelieved inventory (full quantity of all purchases to date).
What am I doing wrong? How can I convince the system that the sale of the inventory item belongs to the festival division? Just to clarify, a Balance Sheet without any division filter (i.e., consolidated) shows the proper inventory, relieved by the sales, a Balance Sheet for the festival shows the full unrelieved inventory, and a Balance Sheet for the camera club shows no inventory at all (which is correct).
I’m not able to reproduce this issue. If inventory item is assigned to division A then any cost of goods sold will be also attributed to division A. Which version are you using?
Thanks for your reply. I’m using version 24.11.2.1921. The inventory item is set up with the division specified, and when I enter the cash receipt for an inventory item I also ensure that the division is specified. Bringing up a Balance Sheet for the division shows an amount for the inventory, but when I click on it and then click on the quantity of an inventory item, only the purchases of the inventory item are shown and the total reflects that fact. However, bringing up a Balance Sheet for the entire company (consolidated), the inventory figure is lower and, clicking on it and then clicking on the quantity for an item, I can see each of the individual sales for the inventory item. Clicking the edit button for any of the item sales shows that the item is assigned to the division.
Thank you, that fixed the main problem! I’ll note that drilling down from the inventory total still does not list the correct quantity in the division (Balance Sheet) report, and clicking on the quantity does not show the draws on inventory for the sales made, but the dollar total is now correct on the report, which is the main thing I was concerned about. The new version also fixed the separation of bank accounts by division. Thanks!
These screenshots show the result of drilling down on the inventory value in a Balance Sheet for the division. Note that this works properly for the non-division (consolidated) report.