prb002_assessment 3_group presention_inventory by group 1

7/29/2019 Prb002_assessment 3_group Presention_inventory by Group 1

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Managing Inventory UsingMYOB


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Overview

The Inventory command centre controls the way MYOB

manages goods and services. We can create items (i.e. things

are bought and sold), and set up automatic triggers to remind

when the stock levels fall below pre-determined levels which

automatically prepare purchase orders to replenish stock.

We can create simple inventory systems which track only the

quantity of goods and services that have been sold, all the

way to the most sophisticated system which tracks the raw

materials, direct labour and other manufacturing inputs into

production and then follows the finished goods to market.


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Overview

Using MYOB accounting system, we can: -

a) Keep track of our items

b) Identify how many goods are in stock

c) See how much items are worth

d) Find out from whom did we buy and to whom did we

sell

e) Shows how to revalue the stockf) Track the inventory transfers and automate the

transfers using the Auto-Build features.


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Perpetual vs. Periodical Inventory

MYOB can be used for either perpetual or periodical inventorymanagement.

1. In MYOB, a Perpetual Inventorysystem is used whenever an item is

marked as I Inventory This Item. This indicates to MYOB that it should

track all monetary and physical movements of the item. When an item is

purchased, both the Items List and Inventory account are increased by thevalue of the purchase. When an item is sold, both the items List and

Inventory account are decreased by the value of the item. If all the items

in the Items List are linked to the one Inventory account, the values in

both places should be equal.

2. Periodical Inventoryis a system of accounting for inventory in which the

goods on hand are determined by a physical count and the cost of goods

sold equals the beginning inventory plus purchases less ending inventory.

In MYOB, a periodical inventory system is used whenever an item is

marked with I Buy and I Sell only.


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Our Focus

We are going to focus especially on thefollowing sections of the inventorymanagement process on MYOB:

1. Purchase Return to Supplier.

2. Sales Return to Customer.

3. Recording items received, when no order has yet beenrecorded.

4. Recording Items received against an existing order.

5. Auto-building Items.


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PURCHASE RETURN TO SUPPLIER

1. Recording purchase return

2. Settling returns and debits

3. Effect on payables


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click


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negative

Journal memo edited

click

click


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click


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click

click


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change date

memo edited

click column

click

click


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click


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Change date range

click


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click


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click


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date as of

click


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click 2x


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components

click


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SALES RETURN BY CUSTOMER

1. Creating adjustment note

2. Settling adjustment note against

original sales invoice

3. Writing off returned item to reducequantity on hand


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click


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negative

Journal memo editedclick

click


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click


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click

click


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edit memochange date

click column

click


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click


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complete memo

click


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Recording items received when no

order has yet been recorded


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click


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clickclick


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click


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click

click


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click


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click

select

click


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click


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click

click


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Recording items received

against an existing order


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click


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icon & choose order


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click

click


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click


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select

click

clickclick


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click


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type received qty.

click

click


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Click to record the bill of

purchase order just created


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therefore,

choose Bill


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select click


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click


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click


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Auto-building Items

For inventory builds that are made repeatedly,

Auto-build function can be used to

automatically build the finished items.

Before a finished item using the Auto-build

function can be built, the items required to

build the finished item need to be defined.


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Auto-building Items

For defining a new Auto-build item, we need to

1. Go to the Inventory command centre and click Items List.

The Items List window appears.

2. Click the zoom arrow ( ) of the item needed to be built. The

Item Information window appears.

3. Click the Auto-Build tab.

4. Enter the minimum level of the item we want to have on

stock in the Minimum Level for Restocking Alert field.


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Auto-building Items (Contd.)

5. Click the Edit List button. The Auto-Build Information

window appears.


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6. Specify the number of inventory units needed to be made inthe List what it takes to build field. (If bulk quantities ofmaterials are purchased to build an item, it may be easier tospecify the materials required to build a greater quantity ofthe item, such as 10 or 20.)

7. Enter the details for each of the components required tobuild the item.

a) Click in the Item Number column and press TAB. The itemslist appears.

b) Highlight the component item required to build the newfinished item and then click Use Item. The details of thecomponent appear in the Item Number and Name columns.


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c) In the Quantity column, enter the number of a particularcomponent item required to build the specified quantity of

the finished item.

d) Repeat from step a for each component required to build the

new finished item.

( )


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Auto-building Items (Contd.)8) Click OK when all the components have been entered.

9) Click OK and then click Close.

To build a finished item, we need to

1. Go to the Inventory command centre and click Auto-Build

Items. The Auto-build Items window appears.

A b ildi I (C d )


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In the diagram,A) This column displays all

items that have beendesignated as finisheditems.

B) The On Hand, On Order

and Net on Hand columnsshow the current recordof the finished items.

C) In the Qty. to Buildcolumn, type thequantity of finished itemsintended to be built.

(Click the None button ifwe want to change allnumbers in the Qty. toBuild column to zero.)


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2. Click Build Items. The Build Items window displays the details

of the transfer that will occur when the finished item is built.

3. Review the entries in this window to make sure the

quantities, unit costs and total inventory values are correct.

Note that the quantities of the components in the list appear

as negative numbers, while the quantities of the finished

items in the list are shown as positive numbers.

4. Click Record to build the finished item, and update the

inventory quantities and values.

prb002_assessment 3_group presention_inventory by group 1

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