Pitfalls of not setting stock values correctly and how to correct them going forward

The pitfalls of not setting stock values correctly and how to correct them going forward is an Advanced User feature. Please read this page before making any changes.

Overview

For more information on Average Pricing and how the system calculates this please see Average Price.

For more information on Pack Relationship Values, what they mean and how they are calculated please see Pack Relationship Values.

Examples

First example Incorrect Purchase or Adjustment

In the above example 10 stock items have been adjusted in without a stock value. Note a cumulative stock value of £0 divided by 10 and obviously £0.00 stock value per item.

Second example Incorrectly Corrected Purchase or Adjustment

In the above example a user has purchased or adjusted in 10 stock items at a value of £10.00 each. Because the initial 10 items were adjusted in without a stock value the cumulative value for the 20 items in stock now is £100, this give an individual value of £5.00 an item which is incorrect.

To rectify the above example the user must adjust out all the stock at the current incorrect average value (20 items at £5.00 per item totalling £100.00) Once this is done the user sets the correct stock value, in this example we are assuming that the original stock value should have been £10. Once this is done the use adjusts all 20 items back into stock, the total value is now £200 (20 items at £10 per item).

How to Fix

How to fix a single stock controlled item with no build relationships

Please note the following steps apply to a single stock controlled item with no build relationships to child items, this is an Advanced User feature.

Broken down into steps the full process is a follows:

1. Un-assign all assigned stock from sales orders.
2. Adjust all the items out of stock with the original incorrect stock value.
3. Correct the stock items stock value.
4. Adjust all the original items back into stock
5. Reassign all stock to the sales orders your unassigned in step 1.

How to Fix Build Parent Stock Values

If the above item was part of any build item then and the incorrect fraction value would have been used to generate the total build value. Using the above example, you have a build with 10 of the above item in it, once built it would have a build stock value of £10 instead of £100.

Before you can correct any of your build items you MUST correct all child/component items used in them as described in the above section, only then can you proceed with the following.
Note: you can find out what items a component is related to by going to [ Stock | Details | Relationships ] tab and right clicking on the item and choosing the 'Show Stock Parents' option.

To correct a build item's value you will need to do the following:

1. Un-assign the build item from all sales orders that it's currently on.
2. Adjust all of the build items out of stock with the original incorrect stock value.
3. If the 'Auto Set Value Proportion' has previously been set then it must be reset as the value proportion of your build item will have changed because of the correct stock value.
4. Manually calculate the new built value of the build item. Using the above example 10 x £10 for the corrected stock item + and example box of £5 = a new built value of £105. Once calculated enter the new stock value against the build item.
5. Adjust all of the original items back into stock.
6. Reassign all stock to the sales orders you unassigned in step 1.
   
   

Do NOT use the Un-build or Build feature in the above process, the user must use the stock adjustment tab!

To reiterate, the above process can only be performed once all child/component items have had their stock values corrected.

The following departments will need to be involved in stock correction procedure:

• The accounts team will need to be informed and involved because all of the subsequent stock value and stock level adjustments will create a large amount of Stock to Stock Adjusted nominal transactions / system journals and they will need to be aware that this is going to happen.

• The stock control manager will need to be aware of this because to un-assign all of a particular stock item will involve holding up sales orders that are currently in the Sales Invoice Manager, and currently have stock assigned to them. Please be aware that this process will need to be performed for all stock items you need to amend. A quiet period would probably be a wise time to do this or when you are not looking to process any more orders until you have completed this process.

• The system administrator user-login will be required as full permissions will most likely be required to perform the above processes.

It is recommended to backup your system and to practise this on your test system before correcting the stock value figures on your live system as a comprehensive understanding is essential before attempting this. In addition, identifying all child / component stock items and then all related build items would be wise as you will be able to gauge the size of the task. After performing a successful test for a stock item on your test system you will be able to estimate the time required to complete the task.

See Also

• Stock screen