Assessing Item Value
When you need to determine the total value of your inventory at hand, you can run the following reports in Saasu to find this out:
Balance Sheet Report
- Select Reports > Balance Sheet from the main menu.
- In the initial filters screen, enter the date for which you would like to see the value of your inventory.
- Ensure All Tags is selected in the Tags pick list.
- Click View Report – Look for the Asset Account under Assets to which you assign all your inventory items when you add them. The value against this Asset Account is the total value of stock on hand (excluding tax).
General Ledger Report
- Select Reports > Accountants > General Ledger Detail from the main menu.
- In the initial filters screen, enter the date you started your Saasu file (or any date, even before you think you started, if you cannot remember the exact date).
- Ensure All Tags is selected in the Tag picker.
- Select the Asset Account (from the Account dropdown) to which you assign all your inventory items when you add these to the inventory.
- Click View Report – The balance shown at the end of the report is the total value of inventory items on hand (excluding tax).
If you run the reports and feel the figures do not seem right, there could be several reasons for this. Here are the most likely:
- You may still have purchases of type Order with payments applied that have not been converted to actual purchases yet. In other words, Saasu is treating this like a deposit against an order. Load the order, change it to Purchase, and save the transaction.
- You may have traded inventory items instead of treating them as assets. Treating stock as an asset is using the perpetual inventory system (when you click i inventory this item in the setup screen for each inventory item). Trading inventory items are generally allocated to Income or Expense/Cost of Sales accounts rather than Asset accounts.
Sometimes your stock levels change without there being a Sale to account for that. Common examples are stolen or damaged goods. Free samples are another similar one. Use the Inventory Adjustment screen to adjust stock levels and account for the expense they cause to your business.
Example: You have two units of Item A missing after you do a stocktake:
- Select Items from the main menu and then click Inventory Adjustments.
- Click Add on the Inventory Adjustment screen.
- Enter -2 in the quantity field.
- Select the item and Saasu will fill in the unit cost for you, which can be overridden.
- Select an account. Some examples for this account are:
- Expense: Shrinkage
- Expense: Stock Write-offs
- Expense: Free Samples
- Save the transaction.
Sometimes you want to build all your costs into an Items cost of sale value. To do this an Inventory Adjustment transaction is used to build an Item from all the components and related costs. Using Items > Inventory Adjustment > +Add you can create a transaction which converts the various costs into a single saleable Combo Item. The same process can be automated by going to the Combo Item and using the Build option.
Example: I have a Box and some Freight and Insurance I want worked into my COGS.
|-10||10.00||100.00||ABC Widget (pre costs)|
|-1||15.00||15.00||Insurance on ABC|
Excess or Over-supply of stock
Suppliers often send samples or more goods than you ordered. Handling this situation in terms of workflow depends on your internal procedures. It also depends on whether you have received more stock in error or whether your supplier has done this intentionally.
We have provided a few below that may or may not suit your needs.
You agreed to take the extra goods even though they were sent in error:
- Create a purchase order or purchase tax invoice for the excess stock/goods received.
- Convert your existing order into a tax invoice.
- Apply your payment to both, clearing them from the Accounts Payable register.
You believe the original purchase order you sent was incorrect:
- Reverse the existing purchase order with an equal and opposite one.
- Create a new, corrected purchase order – Use the Duplicate button to create a copy of the original transaction and then change the date and sign to negative on the quantity field.
- Click Save.
Because there are no payables on purchase orders until these are converted to tax invoices, there is no need to handle this element in this case.
You entered the purchase order for your own records and you don’t normally send them out:
- Edit the existing purchase order to reflect the new amount.
- Click Save.
- Using the dropdown to convert the purchase order to a tax invoice – You do this by changing the Type field.
- Click Save.
NOTE: This method won’t be appropriate if you sent the original to the supplier or if you have a procedure in place to only ever reverse and re-enter transactions (rather than edit them).