How to change an Inventory item to non inventory in Accounts Hosted

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We run Reckon Accounts Hosted. Set up under Manufacturing & Wholesale
We do not need to use the inventory feature (was used ages ago when system first set up) and it is throwing all our accounting figures out. We want to change them from Inventory to non inventory.
I have downloaded an IIF file of the items and changed it in there. However when i import it it doesnt change our existing items but adds a whole new set of our items with slightly different codes.
Is there a way that we can get it to change our existing items? 
Could a solution be to reinstall and use Business Basics?
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Emily

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Posted 1 month ago

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Bev

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Ill be watching this very closely Emily, :)

I am having 'exactly' the same problem. I spoke to Reckon help and they said I cant change from Inventory to Non-Inventory only the other way,  I am at the same cross roads as you exporting to CSV file change to Non- Inventory and then uploading back . I have held off  uploading back as I expecting it to do just what it has done to you and add a whole new list , could it be as simple as making the original list inactive once you have uploaded the adjusted list to non-inventory I am thinking not ? It is causing me a lot of issues as it is you by the sounds of it.  

 Lets hope to see a fix replied to you soon (fingers crossed) I have 5996 items that have been set up incorrectly (before me) and the Accountant does an end of year journal  adjustment each year but it doesn't fix the issue and renders the reports incorrect all the time:(

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Linda Putland, Accredited Partner

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Hopefully you did a backup before importing the iif file and were able to then restore that file so you don't have to manually go through and delete all the new items that were created?


Firstly, an Inventory item cannot be changed to a non-inventory item...

There is a way to make the existing inventory items - function as if they were non inventory items however, the problem with changing the existing items is that when you import the changes back into the file - all the past transactions will update with the changes made... so this would mean that previously correct figures, would now be incorrect...  now that might not be a problem for the current financial year - but what about the previous years?   

You would need to revisit the Stock on Hand and COGS figures and journal them back to how they were when the accounts were finalised for each year you have been running the file..

So, having given due consideration to the above - if you still want to go ahead and make this change - so that you can keep your sales history of all these inventory items... then what you do is...

1  Get the file back to its pre import position - either restore a backup from before importing your fist attempt to change - or by deleting all the items that were created that you dont want.

2.  Export the item list again or go back to the original download file with the inventory items in it.

3. Now open the file with Excel (taking care with open it if you are using barcodes - which is a totally separate issue but files with barcodes must be opened in Excel with the barcode field set as text otherwise you lose the info when you subsequently re-import to Reckon.

4.  Navigate to the two columns for ASSETACCNT AND COGSACCNT - the Asset one will have a reference to your balance sheet inventory account - and the COGS one will have a reference to the applicable Cost of Goods Sold Account.  Then go down the rows until you have all the STOCK items (ignore other item types)...

5.  What you want to do now - is to make these 2 accounts the same for each item... so if you have used say COGS - WIDGETS  for some items and COGS - GADGETS for other items - then you want both the Asset column and the COGS column to be the same... or you could simply make them all say the Stock Asset or whatever your stock on hand account is called...

6.  Once this is done - save the file as a tab delimited .iif file - then

7.  Go back to Reckon - DO A BACKUP!

8.  Import this file - this will change all the existing entries so that the normal inventory adjustments that happen when invoicing - are all cancelled out...

9.  Now you will need to revisit your year ends and journal between Stock on Hand & Cost of Goods Sold to make the amounts match your previous figures...

10..  Now whenever you make a sale - nothing will happen with the Stock or COGS figures...  you will now enter all your purchases direct to COGS and then periodically (at least annually at 30 June) do a stocktake, work out a value - and journal this between Stock on Hand and Balance sheet to update your figures and make your P&L accurate.

Hopefully this all makes sense?

cheers
Linda


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Emily

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Thank you Linda, Will give this a try. I am using a back up copy to 'test' with off line so is not effecting our online program. That way i can see the effects and make sure this is what we want to do. Our accountant has had another client do the same thing and it worked for them. Point 5 im unsure of. this is what we have in those 2 headings...  Gr "Sales:Farm Pro "    &   "Cost of Goods Sold:FP-Purchases" This second one "Cost of goods sold is our issue. So can i change both to the first heading "Sales:Farm Pro"  Is this is what you are directing above?
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Linda Putland, Accredited Partner

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Hi Emily - great that you are in a test environment... the column where you find "Sales:Farm Pro" - should be headed ACCNT... this is where the actual sales revenue goes...    can you check and see if you have the headings I described - ASSETACCNT and COGSACCNT? they should be directly to the right of ACCNT?
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Emily

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There are the headings and the settings under them.

ACCNT                                   ASSETACCNT                     COGSACCNT
GR Sales:Farm Pro          Inventory Asset              Cost of Goods Sold
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Linda Putland, Accredited Partner

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Hi Emily - so the 1st column - dont touch - leave as is... the 2nd and 3rd columns - as per my step 4 above - make them the SAME - either both COGS or both Inventory Asset...  (doesn't really matter which, although the multiple in/out entries probably will be less obvious if you use Inventory Asset?).