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Stock Valuation not affected by internal consumption of items

Santiago EV
on 5/16/16, 11:05 AM 873 views

I recently noticed that whenever I take an item from inventory and consume it (instead of selling it), the item is indeed removed from inventory in terms of quantity, but not of value.  

Here are the pictures.  I had 48 nails, consumed 8, product form shows now 40.  But stock valuation still shows 48. 

Why is that?


Yes, its set to Real Time just like all other stockable products.  We only really have stockable, real time, average cost products.

I think it may have something to do with how the consumption warehouse is set up.  We use an internal move to consume a product when we use it for ourselves.  But of course an internal move is supposed to me moving product from one warehouse to another.  So it shouldnt change the valuation of your inventory or your total amount unless the "virtual consumption warehouse" is set up so that it reduces inventory stock and inventory value.  But I dont see what that option would be in warehouse location configuration. 

Either that or it has to do with the fact that we not only have to make the internal move but also somehow invoice that product to ourselves, but it would have to be a special kind of invoice because it would not have any markup and should not affect accounting.  But even so, if its just a matter of reducing inventory value thats one thing, but when we check inventory valuation, we see the value and the stock units still there!

Here is a video of the config screens: https://youtu.be/MnMn-B6k8rg

Santiago EV
on 5/24/16, 12:28 PM
Marcio Valenzuela
On 6/22/16, 10:17 AM

If you have already created your Virtual Internal Consumption Location, configure the Warehouse > Configuration > Locations > Virtual Consumption > Company = blank.  If this option was not accessible, you must set your admin user to have Multicompany access in Settings.


Ray Carnes

--Ray Carnes--
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Greater Los Angeles, United States
--Ray Carnes--

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Ray Carnes
On 5/16/16, 10:11 PM

Is perpetual (real time) inventory valuation setup for the category the nails are in?


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Asked: 5/16/16, 11:05 AM
Seen: 873 times
Last updated: 8/22/16, 4:23 AM