Inventory Costs

Question

We are a manufacturing business and over the last 2 months we have noticed that our average costs in MYOB on select lines have dropped dramatically between January to February and further again from February to March. This is causing our Cost of Sales and Inventory to be skewed dramatically. We have not had any cost reductions nor made any preference changes or changes to how we build our products.

I was wondering if anybody else has expereinced this issue before and has ideas on what might be causing this?

We are using MYOB AccountRight.

gavin12345 · Answer

Hi&nbsp;JosephE&nbsp;&nbsp;There are still a lot of bugs in Inventory in AR2022, and your issues is likely caused by one or more of those bugs. For example when deleting/editing/reversing an existing transaction, MYOB does not always update values correctly, causing a zero value.&nbsp; Autobuilds also don't always adjust values correctly.&nbsp;Note that the approach suggested by&nbsp;Mike_James&nbsp;to force a re-edit of the invoice by adding a full stop will re-edit the invoice using 'current' values and settings, not those at the time of the original transaction. Your current value for this item seems to be zero, so MYOB will use zero, hence no change. If you do an inventory adjustment to set the value to the correct average cost, then re-edit, MYOB 'should' redo the invoices with the current&nbsp;average cost.&nbsp;RegardsGavin

mike_james · Answer

Hi JosephE&nbsp;, if these are manufactured products, and you use autobuild, are the autobuilds being recorded at lower costs than before? Are any component costs not being included?

josephe · Answer

Hi Mike&nbsp;These are manufactured products, and we are using autobuild. The the autobuilds don't seem to be recorded at lower costs than before and all the component costs arebeing included that were before.&nbsp;

mike_james · Answer

Hi&nbsp;JosephE&nbsp;, can you pick a good example of a product with this issue, then run the item register detail report for a suitable (long) date range to Excel, and add a column for the unit cost of each transaction. If possible, pick an item that you can report from its beginning in the file&nbsp;1. Does the report agree to the screen register?2. Does the change in unit costs provide any clues?&nbsp;(Sales transactions pick up the average cost/unit from the item information at the time the sale is recorded).&nbsp;Do you use multiple locations?

josephe · Answer

Thanks again MIke&nbsp;Interesting results for the Item Register report. There is a whole bunch of transactions in the periods in whch the Margin has dropped where the amount on certain sale transactions is zero even though the quantity of stock on hand is going down by large amounts.&nbsp;I have attached a screenshot.&nbsp;Any thoughts on why and how this could be happening?&nbsp;&nbsp;

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