Hi Eithne,

This is most likely a setup issues. Open a Sale where an item you are concerned about was sold. Look under Edit > Recap Transaction. This should show you what entries should be posted with this transaction. Depending on how you have set things up, you will see how much was allocated to a COGS account.

Alternatively look at a sale transaction under the Transaction Journal. This will show how much if any actually was posted to COGS.

If none was allocated to a COGS account, open the Item from the Items List under the Stock Control Command Centre. Look under the profile and check that you have 'I Stock This Item' ticked. Then check which account was linked for Cost of Sales.

If you have not ticked 'I Inventory This Item', then as each purchase is made it will be expensed through the linked Expense Account for Tracking Cost.

Hopefully when you look at the Item profile you will see why there is no COGS amount on your P&L

Regards

Phil

Hi Eithne,

A Cost of Sales Account is only required if you Sell Inventoried stock. 

If you select I Buy, but not I Stock, then you need to select an Expense Account, as each purchase is expensed to your P&L as the purchase is processed. You could use a 5 or 6 series account called Purchases or Materials etc.

If you select I Sell, then you need to select an Income account for each Item Sale.

If however you select I Stock for an Item, this changes things significantly. For example if you chose I Stock and I Buy for an Item (but not I Sell), this in effect is telling MYOB that this item is a component for a different final Item. For example if you buy bolts, and you want to inventory them but not sell them, as they are used to make a car which you will sell, then when you purchase Bolts, the only account you need is an Asset Account for the Inventory. All Purchases will be added to that Asset account, they will not be expensed to the P&L as a purchase is processed. The expensing will happen when you sell a Car.

If you Buy and Sell an Item, and you choose I Stock, then you need a Cost of Sales account. This is because when a Purchase is made, the Inventory Asset Account is debited - the purchase is not expensed to the P&L. 

Say you purchased 10 Buckets for a cost of £120, the entire £120 is added to the Inventory Asset account. Then when you sell an item, MYOB calculates the average cost of all stock on hand for this Item, and expenses part of it via the Cost of Sales account. Say you sold 4 Buckets for £80. MYOB will credit Sales Income with £80 and debit the Receivables Accounts £80. It will also debit Cost of Sales with £48 and credit the Inventory Asset account with £48. This is how, if your accounts and Items are set up correctly, the purchase cost is expensed to the P&L - via the automatic Cost of Sales transaction.

Hope this explains what should be happening. 

If an Item is set up incorrectly, MYOB will often not allow you to change that Item after it has been used in a Purchase or sale. You may need to create a new item, transfer the count and value to the new item and make the original item inactive.

Regards

Phil

Probably best that you use spend money transaction moving the value from the one Bank account to another.  Spend money is best as it is completely amendable.

Hi Mark that worked okay but now the net figure $exchange account to $account is showing a negative and there is no currency gain showing which there should be as the rate used was better than the system rate ?

Any thoughts

I've re-loaded my MYOB14 to a faster computer but it does not seem to have the customised order and invoice I created within the dropdown menu when printing.......Have I explained myself ok?

maurice