MYOB Stock on Hand Reconciliation

There is some important information that needs to be considered when reconciling stock on hand between WokGuru and MYOB due to the way the FIFO/perpetual inventory method works.  It is recommended that stock on hand is always reconciled for the previous months, not the current.  This is due to the methods ability to update historical purchases and re-cost corresponding COGS.  

• Perpetual Inventory Method Overview
• Reconciling Differences in Stock on Hand Between WorkGuru and MYOB
  • When was WorkGuru and MYOB Stock on Hand Balanced?
  • Are Your COGS, Stocktakes and Stock Adjustments Up to Date?
• Common Causes for Stock Value Discrepancies

Perpetual Inventory Method Overview

The perpetual/FIFO inventory method is able to continuously record inventory changes in real time per transactions. Due to this, it is sometimes difficult to reconcile the stock on hand value directly with MYOB during the month due to the constant changes.  WorkGuru maintains MYOB's stock on hand value with the following transactions:

By default, WorkGuru consolidates the COGS into a monthly journal to be sent to MYOB as one journal at the end of each month. Due to this method, the optimum time to compare the stock on hand values between WorkGuru and MYOB is at the end of the previous months, assuming the recommended end of month procedures have been run. Note:  If the COGS journal is manually sent to MYOB earlier in the month, subsequent sending of COGS during that month will update the existing journal, not create multiples.

Reconciling Differences in Stock on Hand Between WorkGuru and MYOB

An advantage of using the perpetual inventory method is that WorkGuru knows exactly which transaction caused a change in stock on hand and when it happened. If you notice a discrepancy between the stock on hand value between WorkGuru and MYOB, you can quickly drill down to the transaction level to identify where an imbalance has occurred when compared with MYOB.

When was WorkGuru and MYOB Stock on Hand Balanced?

Ensure that WorkGuru and MYOB were balanced correctly at a specific point in time, usually via the initial or first stocktake.  If this step was skipped or incorrect, even if all the corresponding transactions and journals from WorkGuru are correct, the stock on hand value between the two systems will never match.  The only way to resolve this is to complete a full stocktake and follow the manual journaling steps as per an initial stocktake.

Are Your COGS, Stocktakes and Stock Adjustments Up to Date?

Ensure that the COGS last sync date, stock takes and stock adjustments are up to date in the MYOB queue.

Common Causes for Stock Value Discrepancies

• Purchase order Receive and Invoice Dates - WorkGuru will allow you to receive stock without an invoice or cost an order without receiving the stock.  The WorkGuru stock on hand will increase based on the receive date.  MYOB's stock on hand date is increased based on the invoice date.
• Up to date COGS not sent to MYOB - Ensure your last sync date is as up to date as possible before comparing stock on hand balances between WorkGuru and MYOB.
• Landed costs re-coded to Expenses - Ensure that any transaction that is allocated as a landed cost in WorkGuru is not re-coded from stock on hand to expenses in MYOB.
• Stock purchase order values changed after import - If a purchase order has been modified after import to MYOB.  Use the Compare Purchase Orders with MYOB function to check for any imbalances.
• Locked Periods in MYOB - Locked periods in MYOB will prevent correct COGS journals from WorkGuru from updating previous months/periods.  The perpetual inventory method allows COGS to be updated for previous periods as must be allowed or managed manually.
• Manually created journals in MYOB - The only reason for a manual journal in the MYOB stock on hand account is for matching the starting WorkGuru stock on hand value to MYOB.   Any manual journals made in the MYOB stock on hand account are not required and not visible in WorkGuru.