This document explains new MYOB AccountRight 20XX Valuation Error workflow.
The new MYOB AccountRight 20XX product allows NEGATIVE inventory - although turned off by default, it still allows sequences of transactions and deletions that cause NEGATIVE NETT VALUE-ON-HAND.
If you notice ITEM INFORMATION appears as shown below you will need to make corrections:
Note the N/A in the Current Value and Average Cost - this is due to the 0 quantity and the calculation to find Average Cost, being Value/Quantity which yields the error (N/A).
To correct this problem you need to post TWO Inventory Journals - first to bring the stock on hand and value on hand positive - then another to correct the stock and value back to zero.
First Step: Enter a Journal to Reveal Inventory Value Imbalance.
Complete an IJ (Inventory Journal) adding 1000 units to inventory at $10,000 per unit cost. This will reveal the actual negative stock value onhand which is "left over" from the prior negative transactions. Use the Inventory Asset account as the account number.
NOTE: This action MAY NOT work and depends on the MYOB item configuration. If you receive an error regarding AccountidNULL see the below support note from MYOB.
Furthermore, ensure that your items are correctly set up - for example never leave the Items per Unit field BLANK - always set to 1 or the per buy quantity.
Sample of Journal Posting:
After posting the first correcting adjustment open the Item Information window.
Notice the value On Hand is out-of-balance.
If all is correct you will have cleared the N/A figures from Current Value and Average Cost fields.
Second Journal to Zero Inventory Value Imbalance.
Complete an additional IJ (Inventory Journal) DATED AFTER the previous removing 1000 units with a Total Line value EQUAL to the current value. This will now correct the total value to ZERO. Again use the same inventory asset account of the first IJ.
The item and inventory value are now correct...
Correcting Last Cost.
After the valuation is corrected it is sometimes necessary to correct the LAST COST. This is done using a simple "trick".
First raise a Purchase Bill for the Item using the cost you would like to assign and the default Tax Code for the item when bought. You can just reference the Last Successful Purchase Bill and use the Price figure - for example:
Enter a "Dummy Purchase Bill" for 1 unit of the Item.
Open the "Dummy Purchase" and select DELETE PURCHASE from the Edit Menu.
Note the Last Cost has now corrected.
Please note this is known MYOB issue. If above workflow don't work for your company please contact MYOB for further information.