Inventory cost purchase vs average cost - leaving balance in balance sheet

Hi, I am new with Reckon Hosted and inventory accounting.

We have a purchase and a sale for the same item that happen in the same month but it leaves balance in the balance sheet. This is due to the sale was calculated in the background using average cost rather than purchase cost. But if I run the inventory valuation report for that month, it is nil.

It should have no amount in the balance sheet under stock on hand as the inventory report is nil. How is best to fix this and how do I prevent this to happen in the future?

Comments

Graham Boast

Hi k

what is the date on each transaction? if the sale happened before the purchase, this will send the item into negative, and reckon will usually use the cost price on this file. Once the stock is purchased, it can also do an adjustment against COGS. If this is the case, you may need to date the purchase the day before the sale date.

kgunawan

Screenshot 2023-08-04 at 10.47.15 am.png

Hi Graham, thanks for your response. We tried and put the date of purchase 1 day before and sale the date after but still doesn't work. Any other suggestion? I am forecasting that this issue for this item will be recurring in the future and other items might have the same issue. I like to know how to fix this.

Graham Boast

Open the invoice, add a full stop at the end of the description for the rear camera (this changes the invoice) then save again.

If that doen't change things, what is the Qty and Value of the item (via Inventory Valuation Summary Report) on the 29th July?

kgunawan

No it doesn't work.

on 29 Jul, inventory valuation summary is nil.

On 30 Jul, after the purchase, according to inventory valuation summary - that item average cost is $20.57 per item x 50 = asset value $1,028.50.

But according to the invoice on the purchase is actually $21 per item x 50 = $1,050.

Graham Boast

Can you post a journal of the bill (journal button just above the bill - or Ctrl Y). Modify the report to display the Qty field

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