Details: Quantity tracking in Evosus provides users with an accurate physical on hand count while also accurately reflecting what is happening from an accounting standpoint (valuation on hand). The reality is that physical on hand quantities can differ from valuation on hand. How can this happen?
- First and foremost, Evosus allows quantities to go negative when you sell/invoice more than you have in stock. In this case, the quantity on hand will go negative while the valuation figure will stay at zero. This ensures your valuation report matches your inventory asset account.
- Evosus also allows you to deliver product on an order without invoicing it. Delivering a product in Evosus does not post to the general ledger. Only invoicing the order will create a posting activity in the general ledger. Conversely, invoicing an order without delivering the product will post and cause your valuation figure to go down, but the On Hand quantity will not change.
- Keep in mind that valuation is the accurate on-hand quantity by GAAP (Generally Accepted Accounting Principles) and legal standards since it only tracks quantities for which a business legally owns. Invoicing commences the legal transfer of ownership, so invoiced quantities are not included in the valuation on hand figure.
- Items that are delivered but not invoiced still belong to the business, so these quantities are included in the valuation on hand figure. As a rule, Evosus recommends limiting the number of transactions where items are delivered, but not invoiced or invoiced and not delivered. This should be the exception and not a normal business process.
The above mentioned situations are reflected in the stock site quantities you see when searching for inventory.
- When searching for inventory, you have Normal and Expanded view options. The Normal view is the default and displays the most common fields that employees need to see: On Hand, Reserved, Available, On Order, Layaway, On Quote and In Transit.
- The Expanded view provides additional fields that are typically used to research discrepancies in quantities: Delivered, Invoiced, Rtrn Pending and Valuation on Hand.
Each of these quantity figures are discussed below:
How This Impacts Reports: When researching discrepancies, it is important to note that the Stock Movement report displays valuation on hand figures. For instance, you won't see an entry on Stock Movement report for an item that was delivered, but not invoiced. You will see an entry on the Stock Movement report for an item that was invoiced, but not delivered.
- The Inventory Valuation report will always use the valuation on hand quantity to ensure it ties to the general ledger.
- The Delivered Items report will display all delivered items regardless of invoice status. Items that were delivered, but not invoiced will display on this report.