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Item: Assembly vs Kit vs Phantom [SOLVED]
04-18-2017, 01:42 PM
Post: #11
RE: Item: Assembly vs Kit vs Phantom
Trent,
Take a look at the starting a new system section of the manual - pasted below.
When you have stock quantity and change the value then journals are created in the GL (assuming the GL inventory flag is set) so best to change the cost when there is no stock quantity then receive or adjust it in to get journals with appropriate values created. If you used weighted average then the cost will maintain itself thereafter.

Setting Up Inventory Items

Before stock items can be defined, again the base information is necessary.

Inventory Categories are the broad headings under which the company's products (or services) fall. Inventorys can also include service items such as labour. Held in the stock category record is all the additional information required for stock integration to the general ledger. All stock items set up referring to a particular stock category will be posted the same way. Inventory categories are defined under the system set up tab.
All the potential units of measure appropriate to stock items can be defined from the units of measure form under the Setup tab of the main menu under Inventory setup.
Inventory Items can be created for non-physical stocks such as labour time for the purposes of invoicing and analysis, these should be set to Dummy Inventory Items - using the Make Or Buy Flag.

Entering Inventory Balances

Once information about stock items is all entered and by implication the base data required first (preferably all in advance), the stock balance at each stock location must be entered as stock adjustments.

The stock/general ledger interface should be disabled in the company preferences screen until the stock balance in the general ledger (which would be set up using a manual journal in the general ledger) is reconciled to the standard cost of all stock items entered into the system, per the stock valuation report. This reconciliation requires that the standard cost for each stock item entered be correct as well as the total units held in all locations.

Inventory Integration to General Ledger Issues

Once the reconciliation of the stock accounts in the financials module agrees to the stock valuation report, the stock general ledger integration flag can then be re-enabled from the company preferences form. Movements in stock will then be reflected with general ledger journals. The balance of the stock accounts should then always agree to the stock valuation report provided there are no manual journals entered to these accounts.

It is important to understand the two levels of General Ledger integration available.

Firstly, sales integration allows integration of invoices, credits and receipts to sales and debtors control accounts. This level does not produce any general ledger journals for the cost of stock sold. The system has flexible configuration allowing many ways to configure the accounts to which invoices and credits are posted to the sales accounts.

Secondly, stock integration enables the automatic creation of general ledger journals for the cost of sales and the stock accounts. Also, stock movements from purchase order arrivals and sales of stock are also documented as general ledger journals.

It is not necessary to use the stock integration to the general ledger although a fully standard costing based accounting system with full general ledger integration, will arguably provide the fastest and most informative financial reporting system for manufacturers.

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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