Item values and COGS working with two currencies

Hugh
Hugh Member Posts: 1
edited October 2018 in Reckon Accounts (Desktop)

I am using Reckon Accounts Pro 2013 which I bought a few months ago.

The business has been operating for some years and I am now moving the accounts over to Reckon, including setting up the inventory control system.

When I set up my Item List I created a new item for each product code, for all the products I had in stock at the time. 

And in the Cost box I put the price I had paid for the product in dollars.

I have now been using Reckon for five months, gradually getting it set up as I go. During that time I have bought in numerous orders and they have gone into stock.

Part of the business operates in mexico and sells these products in pesos.

What I am seeing in COGS is that when we sell a product that was entered into the Item List at set up, with the cost in dollars, and if we have not purchased any more of that product since, then the COGS value shows up in dollars.

But if a product is sold that we have bought in more of since setup then its cost in COGS shows up in pesos.

I am presuming this is because in the process of paying for new orders debits are done to peso accounts.

Looking at individual items in the Item List what I see is that if its an item we have not bought any more of since setting up then the only cost that appears is the original amount I entered in the Cost box.  Whereas if its an item we have bought more of since then there will be an amount show up in the Avg. Cost area and this will be in pesos.

The home currency is pesos.

Having some COGS appear in dollars and some in pesos is of course throwing the COGS totals way out and I am wondering how to fix this.

To complicate the matter further I am dealing with hundreds of items.

If you happen to know of a solution I would love to hear from you.

Thanks in anticipation.

Comments

  • Jason Jiao
    Jason Jiao Alumni Posts: 29
    edited July 2015

    Hi Hugh,

    Welcome to Reckon Community.

    Reckon Accounts COGS is calculated based on your home currency (Pesos) and the Average Cost Price.  Even though you initially enter the Dollar in the cost field, the program recognizes as Pesos and the Average cost is the same as the Cost price since there are no more purchases.

    You need to make value adjustment (Supplier>Inventory Activity>Adjust Value\Quantity on Hand) to correct the average cost in Pesos.

    Cheers,

    Jason