I have spent a lot of time looking at this over the last few days and I think this is a bug in the calculation of the value of inventory stock on hand as it relates to cash accounting.
In short, inventory on hand value is not adjusted unless a payment exists for the sales invoice it is associated with. Regardless of whatever payment is required, unless a payment (of any amount other than zero) is associated with that invoice, inventory values are not adjusted. I use the word “value” here because it does appear “quantity” IS adjusted, just not value.
Here’s a couple of pics to demonstrate what I mean:
#1 the invoice is paid in full, (but no payment is attached to the sale)
but the value of inventory on hand doesn’t change (qty does*, but not the value)
#2 the invoice is still paid in full, and/but only has a 1 cent payment
doing this, fixes the inventory on hand value under summary view using cash accounting
From what I can see, it appears as though manager will only modify the value of inventory stock if the associated sales invoice has a payment associated with it. If I leave a few cents off the reversed line item at the bottom and make a payment in that amount, the inventory value vanishes (and balances correctly) from the summary screen.
Shouldn’t a sales invoice that reduces stock count actually reduce the value of that inventory stock on hand regardless of whether a payment is made or not? (especially, as in my case, the sales invoice balances to zero). And why does that 1 cent make any difference? It’s modifying the value of stock by hundreds of dollars.
meaning: manager is using the payment as a trigger to record changes in value of inventory stock
Regardless of whether a payment is made or not, ie in either of the cases above, the inventory QTY is correct in both cases.
Is that not a bug in the implementation of a sales invoice and inventory tracking? Notwithstanding the fact that I am doing it unconventionally, I can’t help but feel that is a bug, the fact that a one cent payment can change the value of inventory by hundreds of dollars.
In my case, that one cent FIXES how I expected the cash account to appear.