Inventory Transfers Overview

Making inventory transfers
Auto-building items
Finding inventory transfers
Changing, removing and reversing inventory transfers

In MYOB AccountEdge, transferring inventory is the process of changing the quantity and total value of one or more items, known as components, to change the quantity and total value of at least one other item, known as a finished item. You can also change the quantity and total value of one or more finished items to change the quantity and total value of other finished items. You can use a single transaction, known as an inventory transfer, to make these changes.

Inventory transfers are useful for manufacturing businesses. For example, in a woodworking business, you could create an inventory transfer to turn components like lumber into finished items like furniture.

Transferring inventory is even simpler if you choose to automatically build finished items using AccountEdgeís auto-build inventory feature.

Making inventory transfers

Step 1: Identify the inventory transfer
Step 2: Enter the inventory transferís components.
Step 3: Enter the inventory transferís finished items.
Step 4: Balance the transaction
Step 5: Choose what you want to do with the transaction

When making inventory transfers, you should determine the type of inventory transfer you need:

  • If you havenít set up a finished itemís auto-build information but you want to immediately build the item, you should enter a typical inventory transfer. For step-by-step instructions about this situation, see Step 1, Identify the inventory transfer.
  • If youíve already set up a finished itemís auto-build information, or if you wish to build many different finished items, you should use the auto-build inventory feature. For instructions about auto-building inventory, see Auto-building items.

After youíve created an inventory transfer, you may decide that the total value of the finished item is actually greater than just the sum of the values of its components. If a finished item is built by human labor, for example, you might decide that labor costs should also be included in the total value of the finished item.

To increase the total value of a finished item, create a special inventory adjustment for the item. If the increased total value of the item is due to the cost of labor, we suggest that you allocate the inventory adjustment to a wage expense account.

Auto-building items

If you frequently build finished items out of components, youíre probably aware that it might take a great deal of time to record an individual inventory transfer in the Inventory Transfers window each time you need to build another set of finished items.

Fortunately, however, the Auto-Build Inventory window will speed the process of updating the quantities of your components and finished items for you. By using this window, you can quickly create one inventory transfer for all the items whose quantities you need to change.

Once youíve assigned auto-build and restocking information to your items, you can automatically build items using the To Do List window.

Click below for the step-by-step procedure:

To auto-build an item

To auto-build an item using the To Do List

Finding inventory transfers

Inventory transfers are a bit different than other types of AccountEdge transactions, such as sales and Spend Money transactions, in that the transactions you create can be reviewed only in the Transaction Journal window.

Click below for the step-by-step procedure:

To find an inventory transfer

Changing, removing and reversing inventory transfers

Unlike other types of transactions in AccountEdge, once an inventory transfer is recorded, you canít change it.

If youíve entered an inventory transfer that you need to change, you can do one of two things:

  • Enter a new inventory transfer that corrects the incorrect transfer. For example, if you reduced gadgets by 20 but needed to reduce 200 gadgets instead, you could create a new inventory transfer in which 180 gadgets are reduced to make up the difference.
  • Enter a new inventory transfer that completely cancels the effects of the incorrect transfer, then enter another new inventory transfer with the correct transfer amounts. For example, if you reduced gadgets by 20 units but needed to reduce 200 gadgets instead, you could first create a new inventory transfer in which 20 gadgets are increased, then you could create another new inventory transfer in which 200 gadgets are reduced.

If you need to remove the effects of an inventory transfer from your AccountEdge records, you can enter a new inventory transfer that completely cancels the incorrect transfer. For example, if the transfer you want to remove is for a reduction of 20 gadgets, create a new inventory transfer of 20 gadgets (be sure to enter a positive quantity) to cancel the incorrect transfer.

Inventory Transfers Overview