How to Track Inventory with MYOB AccountRight

Overview

Use Inventory Tracking to help manage your stock transactions in MYOB AccountRight.

Learn more in What is Inventory Tracking?.

In order to view content or perform actions referred to in this article you need to have the appropriate permissions enabled in your security group. Go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Security Groups and access your security group to update your permissions. The relevant security group tab and specific permissions for this article can be found here:

System Setup

To use Inventory Tracking, you need to contact Simpro Support to enable it. When you contact Simpro Support, they inform you of the all the implications of using inventory tracking to ensure you understand them fully.

After Inventory Tracking has been enabled, a note appears in Simpro Premium in System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Materials > Inventory Tracking to indicate it has been enabled, in addition to two warnings.

  • Inventory Tracking cannot be disabled without contacting support.
  • Enabling Inventory Tracking requires receipt of all supplier invoices with the supplier invoice number.

After Simpro Support has enabled Inventory Tracking, go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > Materials > Inventory Tracking, then enter the following account numbers as defined in your chart of accounts in MYOB:

Inventory Account

Also known as Stock On Hand, this must be an asset account that appears on the balance sheet.

In MYOB, this account usually begins with the digit one, followed by a dash and four digits, for example, 1-1800.
Inventory Adjustment Account

This is a Cost of Goods Sold account that appears on the income (profit and loss) statement.

In MYOB, this account usually begins with the digit five, followed by a dash and four digits, for example, 5-5700.

A screenshot of the Inventory Tracking page with two red warnings and two text boxes.

A stock adjustment is a change to the value of stock on hand. It is usually performed to correct an error in stock management, such as where there are ten items physically located in a technician’s van, but only eight items according to the inventory. A stock adjustment enables the technician to add the extra two items to the storage device and then allocate them to the job.

Learn more about stock adjustments, including how to perform them in Simpro Premium and how they differ from stocktakes, in Stocktakes and Stock Adjustments.

Stock adjustments performed in Simpro Premium are visible in MYOB under Accounts > Transaction Journal on the General tab. If your stock adjustment decreases the inventory value by $100, the following transaction is recorded in the journal:

  • The Inventory account is credited by $100, which is a decrease in the stock held.
  • The Inventory Adjustment account is debited by $100, which is an increase in the cost of goods sold.

In the example below, the stock adjustment in Simpro Premium decreased the stock value by $19,846.64. This figure is posted as a credit to account 1‑1800 Inventory and a debit to 5‑5700 Inventory Adjustment Account.

A screenshot of a stock adjustment recorded in MYOB.

If your stock adjustment increases the inventory value instead, the transaction would post as a debit to the Inventory account and a credit to the Inventory Adjustment account.

Four different types of stock transactions are sent from Simpro Premium to MYOB when inventory tracking is enabled. These include:

  • Receipting a purchase order to a storage device
  • Allocating stock to a job from a storage device
  • Reassigning stock from a job back to a storage device
  • Raising a purchase order in a job and receipting it against the job.

To view stock transactions and purchase orders from Simpro Premium in MYOB, go to Accounts > Transaction Journal on the General tab.

When you raise a purchase order for stock and then receipt it to a storage device, the following transaction is posted to MYOB:

  • The Inventory account is debited (increased) by the value of the new stock.
  • The Trade Creditors (Liability) account is credited (increased) by the value of the new stock.

If you are not registered for GST, the values are totals including GST.

If you are registered for GST, the values posted across exclude GST. The GST component is separated out and recorded as an additional transaction:

  • The GST Paid (liability) account is debited (decreased) by the GST amount.
  • The Trade Creditors account is credited (increased) by the GST amount.

For example, if stock purchased for a storage device cost $117.12, plus 10% GST of $17.71, these amounts would post as debits to the Inventory and GST Paid (Liability) accounts, and as credits to the Trade Creditors (Liability) account in MYOB.

A screenshot of accounts debited and credited from a purchase order in MYOB.

When stock is allocated from a storage device to a job, the stock allocation is posted across to MYOB as follows:

  • A debit (increase) is posted to the Cost of Goods Sold (Expense) account associated with the relevant cost centre.
  • A credit (decrease) is posted to the Inventory account.

For example, if $965 worth of stock was allocated to a job cost centre from a storage device, this would appear in MYOB as a credit of $965 to the Inventory account, and a debit of $965 to the Cost of Goods Sold (Expense) account associated with the relevant cost centre.

The tax code associated with your Inventory Account is included in the inventory journal sent to MYOB. For example, if the inventory account has a 10% tax code, this reduces the price of the item excluding tax by 10%.

A screenshot of a job stock transaction in MYOB.

A technician may need to reassign some stock back to a storage device if the initial job requirements vary. This is effectively the opposite of the previous scenario, so the following transaction posts to MYOB:

  • A debit (increase) is posted to the Inventory account.
  • A credit (decrease) is posted to the Cost of Goods Sold (Expense) account associated with the relevant cost centre.

For example, if $6.30 worth of the stock originally allocated to a job cost centre was reassigned back to the storage device, this would appear in MYOB as a debit of $6.30 to the Inventory account, and a credit of $6.30 to the Cost of Goods Sold (Expense) account associated with the relevant cost centre.

A screenshot of transactions in MYOB representing stock reassigned back to a storage device.

When you raise a purchase order within a job, and receipt it against the job, the stock transaction is posted in MYOB as a sequence of two transactions.

In the first transaction, the purchase order is receipted to inventory:

  • The Inventory account is debited (increased) by the value of the new stock.
  • The GST Paid (Liability) account is debited (decreased) by the GST amount (if registered).
  • The Trade Creditors (Liability) account is credited (increased) by the value of the new stock.
  • The Trade Creditors account is credited (increased) by the GST amount (if registered).

In the second transaction, the stock is assigned from inventory to the job:

  • A debit (increase) is posted to the Cost of Goods Sold (Expense) account associated with the relevant cost centre.
  • A credit (decrease) is posted to the Inventory account.

For example, if a purchase order is raised in a job for stock totalling $4.28 plus $0.43 GST, these would post as two transactions to MYOB:

  • Debits would be posted to the Inventory and GST Paid (Liability) accounts, with the matching amounts both credited to the Trade Creditors (Liability) account, reflecting receipt of the items to inventory.
  • A credit of $4.28 would be posted to the Inventory account, and a matching debit to the Cost of Goods Sold (Expense) account associated with the relevant cost centre. This reflects assigning the stock to the job.

A screenshot of transactions for purchase orders receipt to a job in MYOB.