Inventory / COGS


D

Danny

Hi Folks

Does RMS SO keep track of the true value of the Store's inventory that is
actual cost of all goods purchased not Weighted Average or Last cost? If yes
how do I run a report to show the inventory value and what should be setup
under Inventory configuration. We buy on occasion heavily discounted items -
and we don't want the Inventory Cost shown on the Report Item Value to be so
distorted.

Any suggestion or help would be appreciated.

Danny
 
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G

Glenn Adams [MVP - Retail Mgmt]

Weighted average is generally the most correct setting, but you don't
have to adjust cost based on POs at all.

the RMS database will contain records of each PO's quantity and price,
but there is no built-in report that looks back to this. Also, the only
'true value' is the weighted average, as you can't really tell which
item you are selling, unless they are all serialized.

Glenn Adams
Tiber Creek Consulting
http://www.tibercreek.com
(e-mail address removed)
 
D

Danny

Hi Folks

I guess this is not good enough for this business. Any other suggestion or
will this change in version 2.0? Will MS implement LIFO or FIFO?

Does anyone have a Purchase Order report that outlines the cost of all goods
purchased for a specific period of time. Hate to re-invent the wheel!

Danny
 
C

Craig

Glenn is right, the true value of an item is its weighted average. Unless
you're going to create a new ILC every time you get an item at a different
price. It would greatly inflate the profit on an item if you received a
discount on an item once and that was the amount RMS used to figure profit.
Example: normal cost of an item is $1 and you sell it for $2. Profit = 50%.
Get one at a 50% discount one time or .50ea and you have one in stock at
$1ea the weighted avg is .75ea. Profit = 62.5%. If you weren't using
weighted avg. the cost would be .50ea and the Profit would = 75%. Looks good
on paper, but the actual profit on this item is 62.5%, not 75%.
Craig
 
D

Danny

Hi Craig

I guess the real issue is that we want to be able to determine the
actual/real value of the inventory for accounting purposes - not the
weighted average value.

Any suggestion on how to do this or possible work-around.

PS. Developed a PO report in Crystal report version 10 (test.rpt) - how do I
include this in RMS.

Danny
 
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J

Jeff

Danny,

Are you sure your accounting program supports actual costs? A lot don't.

You must use Crystal Reports 8.5 as its the only one supported by RMS.
 
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