Description

This document explains how WMS handle Cost of Goods.

Detail Steps

Sales

MYOB allows you to report gross profit on inventoried items only(Items marked as I stock). Myob stores the average cost of the item when you record the sale as an invoice.

WMS allows you to report on all items. WMS stores the actual cost entered into the extended line on the sale line if this is not entered or price = 0 then it will use average cost when available, if the average cost is equal to zero WMS will store the Last Cost, if Last cost is also equal to Zero then WMS will store the STD Cost. *Costs are recorded at time of sale entry and updated when the transaction is sent into MYOB.

The different reporting strategies will produce different results. For accounting purposes it is essential that the MYOB figure is used, however you may like to use WMS to evaluate your general sales profit. This is especially useful for companies using non inventory items in MYOB and marking them as inventoried in WMS.

Importing sales in MYOB

When importing sales into MYOB, MYOB uses it's stored total value divided by stock on hand to determine the cost of goods value that is posted against the sale.

WMS does not send the cost of goods to MYOB with a sale, MYOB determines the cost of Goods according to the stored average value of the item.

Purchasing

WMS reads and stores MYOB's three cost figures, Average, Last and Standard.

When a purchase is made MYOB automatically updates these stored costs the next time the two systems are synchronized.

The costing method can alter the cost of goods used on future sales.

Non Inventory Items

MYOB allows you to report gross profit on inventoried items only(Items marked as I stock). Myob stores the average cost of the item when you record the sale as an invoice.

WMS allows you to report on all items. WMS stores both last cost and STD cost and as standard for reporting it will use STD Cost.

*Costs are recorded at time of sale entry and updated when the transaction is sent into MYOB.

Adjustments

Adjustments are sent into MYOB as purchases. Adjustments can be set to send as either average cost, last cost or std cost.

Methods, Last cost and Std cost can alter the cost of goods used on future sales.

Note:

*If WMS is used in the correct manner cost of goods remains the same as if all transactions were entered directly into MYOB.

**It is recommended that all costs of goods are reviewed on a routine basis (a minimum of once a year).

Related Information

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