Guide to Effectively Managing Inventory in MYOB
Managing inventory properly in MYOB can serve to be a big help to you when it comes to ensuring the timely refilling of supplies, budget planning and other important activities that contribute to the success in your business. If you are just beginning with MYOB as an accounting software, here’s a basic guide to exactly how you can go about effectively managing your inventory in MYOB:
MYOB enables users a series of customisation features for inventory. For example: Price levels, fields and lists. You are able to create and set up a maximum of up to 6 price levels for an individual item. To differentiate costs, you can assign different price levels to different customers too, based on the frequency of their purchases from you. You can also make extra notes using custom fields for relevant product/service information, spot inventory variations, make adjustments and group your inventory items/reports in customised lists.
If you need to make adjustments to your inventory, you can do so by accessing your Inventory command center in your MYOB software. Click on ‘Adjust inventory’ to access the window and fill in the details you want to adjust. If it’s the item number, you can do so by choosing the item number column and pressing tab so you can select the item. If it’s quantity however, make sure you know that the quantity should be inventory units and not buying/selling units. For the cost, an average cost is usually calculated in the form of the total cost of items divided by the units available on hand. If you are doing so for new items, it is often far more easier to type in the purchase cost. Once you are done making the relevant changes, manually input the account to assign the adjustment to (usually the sales/expense account) and choose record to save the changes you have made.
In some situations, you will find that you may need to make use of MYOB to build items using your inventory. This is usually when you combine two (or more) items to form a special package or bundle as the finished item. There are generally two methods for this- manually creating a one-off inventory transfer or to create an automatic transfer so you can repeat the process quickly.
For manual inventory transfers:
Look under your inventory command center in MYOB and choose build items. This will enable access to the relevant window where you can choose or type in your item numbers and the component item (items to combine) you want to transfer. Type in the transfer quantities (positive for finished item, negative for items to combine)- make sure the out of balance value is 0 before you record transactions. Once done, simply enter unit costs for each item and record to save.
Now you have to create the location you want the transfer to be in. Look for the locations tab under your inventory command center and choose it. Select new to choose a new location, type in the new location and press tab. Now enter the location address and name for contact details. A new location should appear once you click OK.
For automatic inventory transfers:
Choose the select column that is selected right next to the item you wish to build/order and choose order/build. Once done, you should see a date window opening. Enter a different date whenever applicable and choose OK. An order will be created automatically. To change details, click on the order and complete the transaction when prompted. You can then analyse your inventory to make sure the details are right by going to your Inventory Command Center again and choosing analysis for a summary.