Value of inventory going to inventory cost instead of inventory on hand when I raise a purchase invoice

[Umeadi]

Please I need help. I have been using Manager for some years now but I just realized something today when I opened a new business.

I realized that when I raise a purchase invoice, the value of the inventory instead of going into the Inventory Items in the Balance sheet it rather goes to inventory cost in the Income statement.

Inventory value is an asset and not an expense. This is my first time of witnessing this. Please I need help.

[Abeiku]

Kindly share your version number

[eko]

I can duplicate the behaviour in Manager v23.10.20.1089 Server Edition on Ubuntu 20.04 TLS. I created a new test-business and customized it with the essential accounts including Inventory. Then I issued a Purchase Invoice.

The Summary Screen shows a deduction from the Bank account, Accounts Payable and under Expenses Inventory-cost but it does not show anything under “Inventory on hand”.

After payment of the Purchase invoice the Accounts Payable cleared as expected but still nothing under “Inventory on hand”. I am aware that @Lubos has been working on Inventory and related and may have introduced this problem.

Exactly the same happens when bypassing an invoice and immediately make a payment.

[VACUUMDOG]

The way I read this guide https://www.manager.io/inventory-revaluations you need to disable Inventory items

Then click on Dynamic Rolling Recalculations where you will see Inventory Items checked. You need to uncheck the option.

[eko]

UPDATE: I just downloaded Manager v23.10.21.1096 and as suspected it now works as desired, so you do not have to follow the steps to enable an obsolete feature to resolve the issue.

I guess that the work explained at Value of inventory going to inventory cost instead of inventory on hand when I raise a purchase invoice - #5 by VACUUMDOG had temporarily develop this issue @Umeadi reported.

@VACUUMDOG when starting a plain vanilla test business in Manager v23.10.20.1089 Server Edition on Ubuntu 20.04 TLS the undesired behaviour as described in my earlier post and reported by @Umeadi was confirmed to be an issue. I subsequently posted a fix by actually enabling Inventory Items checked under the obsolete feature Dynamic Rolling Recalculations. Updating to v23.10.21.1096 requires the setting unchecked and thus works as expected.

[MOSTAFA_ZD]

I have the same problem. What is the solution?

[eko]

As mentioned in the posts update to the latest version of Manager from Download - Manager.io and then uncheck under Dynamic Rolling Recalculations in Obsolete features in Settings the Inventory Items.

[Elvie_Periscilla_Eli]

Hi, i have tried unchecking the Dynamic Rolling Recalculations in Obsolete features in Settings the Inventory Items. but the stock is still under inventory cost. it wont add to my stock on hand. please help. thank you

[Elvie_Periscilla_Eli]

Hi any update on the inventory stock? we cannot add inventory stock. all stocks directly go to cost of goods.

[Sweey]

Hello everyone
Please check the settings before asking too many questions about inventory which has caused many errors in the past
Inventory is working perfectly according to the latest version
Please check the valuation method when creating new item in inventory
If you use the manual method the calculation will be correct
If you want the inventory to be loaded with the purchase value then choose the average cost method or first in first out
In the new version, the option to specify inventory cost has been removed from the Obsolete features. It has returned as before. This is one of the decisions that I congratulate Mr. Lubos on.
So I recommend everyone to move to the new version and take a good look at the settings.

[Elvie_Periscilla_Eli]

Hi, appreciate your guide on the inventory on hand. So far, i cannot put my purchase product to inventory on hand. all has been directly to inventory cost. Do really2 need your help on this as we currently cannot input our product purchased to manager io.

thank you for your understanding.

[eko]

1. Make sure that you have the latest version installed https://www.manager.io/download. Obvioulsy if you use Cloud edition that is taken care of, but report here what Edition you use and version you are on.
2. The guides at https://www.manager.io/guides/inventory-items are pretty clear. To see Inventory on hand you need to follow the guide i.e.:

Qty on Hand

If you are using Qty to Deliver and/or Qty to Receive, the Qty on Hand shows your physical quantity on hand.

• Increased by Goods Receipts.
• Decreased by Delivery Notes.
• Excludes Sales Invoices unless they also act as delivery notes.
• Excludes Purchase Invoices unless they also act as goods receipts.
• Includes all other general ledger transactions.

Note: Sales Invoices, Purchase Invoices, Debit Notes, and Credit Notes affect Qty Owned but have no effect on Qty on Hand. Conversely, Delivery Notes and Goods Receipts affect Qty on Hand but have no effect on Qty Owned.

So if using Invoices make sure that you enable act as goods receipts for the Purchase Invoice and act as delivery notes for Sales Invoices, see example below:

If you always use such then you can enable it in Form defaults so it will be enable whenever you create an Invoice.

[Elvie_Periscilla_Eli]

Hi,

Thank you so much for your help

[Elvie_Periscilla_Eli]

Hi sorry for asking again.

i have tried it yesterday and it works fine. Now i try again but it does not work anymore. the inventory is still under inventory cost. appreciate your help.

thank you

[Mabaega]

@Elvie_Periscilla_Eli
Try, Open Inventory Items Tab and click Recalculate Button

[Elvie_Periscilla_Eli]

@Mabaega Thank you for your help.
It works now.

[eko]

I noted that you did not enable Bank and Cash and thus also not Payments and Receipts in Customize.

[Elvie_Periscilla_Eli]

Hi,

that one is not my accounting book. i just create new business for checking only to make sure my accounting book is ok before do some changes.

Btw, i have notice that it also effect on the write off location. for example, if we put location to different account, example as bellow

the written off location is still remain unchange

[Sweey]

Which version are you using? Because I tried it with my book and it works fine.

[Elvie_Periscilla_Eli]

cloud edition 25.2.5.2066