Category Archives for "MYOB AccountRight Inventory"

Landed Cost Procedure for Importers

Your MYOB software cannot automatically apportion landing costs to individual line items. This procedure is a workaround to ensure that:

  1. Stock on Hand is valued at full landed cost
  2. Cost of Sales reflects landed cost of stock sold
  3. Actual landed costs can be easily identified

Please follow these instructions to set up

Setup Steps

  • Set up cost of sales accounts list as per the example:

Other actual landed costs accounts may be set up if required.

Set up stock items as normal as per the example:

Set up a Landed Cost Adjustment item as follows:

Steps to be completed for each shipment that arrives

Complete an Excel spreadsheet for the imported shipment to allocate the landed costs to the individual items.

Example:

Formulas in the above spreadsheet:

In your MYOB software, enter a purchase from the supplier for the items at full landed cost, and on the last line enter a negative Landed Cost Adjustment

Example:

There may be a rounding amount as in this case ($0.19), just leave as is.

As invoices are received for actual landed costs, enter these using service purchases and code to respective cost of sales accounts.
(Remember that Customs GST does not form part of the cost of the goods and should be coded to a separate GST Liability Account!)

Example:

Inventory account has negative balance

Question: The balance of my inventory account happens to be negative. Can you tell me why? Have I done anything wrong? I did error checking every time before closing the MYOB data file.

Answer: Unfortunately, yes you have done something wrong or inherited a problem. The general ledger balance of the inventory account (s) can only go into negative if:

  1. You are using the inventory feature to track stock and have linked the items incorrectly.
  2. You are using the inventory feature but have entered journal entries to the general ledger account (you should only use item sales & purchases and Inventory Adjustments to change the inventory account).
  3. You are using a manual stock system and have made incorrect journal entries to affect the general ledger balance.
  4. Your inventory account opening balance was wrong.
  5. You have coded inventory adjustments to the 1-XXXX Inventory account instead of the 5-XXXX inventory adjustment account.

Review the transactions that have gone through the inventory account to see where the offending entries are. You may need the help of your accountant or a certified consultant to help you fix this problem.