Q: How does the Inventory Module in NuMetric manage stock levels?
A: The Inventory Module utilizes a perpetual inventory accounting system, ensuring real-time updates to stock levels, inventory values, and stock movements. This means that whenever an item is purchased, sold, or written off, the system automatically adjusts the stock levels and updates the inventory records.
Q: What method does NuMetric use for inventory valuation?
A: NuMetric uses the Weighted Average Cost method for inventory valuation. This method calculates the average cost of inventory items by dividing the total cost of goods available for sale by the total units available for sale. This simplifies inventory expense tracking and ensures accurate cost calculations.
Q: Can I manage non-sale items like office supplies in NuMetric?
A: Yes, you can manage non-sale items in NuMetric. When you purchase items like stationery or marketing materials, the system will create an account under "Assets—Inventory." You must manually write off used items and select an appropriate expense account to record the transaction.
Q: How does the system handle bundled products?
A: NuMetric allows you to create bundled products with multiple items and units. The system will automatically create accounts to track the stock and cost of these bundled products. You can manage production manually, where stock and COGS are managed like any other item, or automatically, where a production transaction is added for each sale to update COGS accurately.
Q: What happens if I need to return purchased inventory items?
A: For purchase returns, the system will deduct the returned quantity from stock management based on the purchased value on the return record date. It will also update and deduct the items' cost-weighted average to ensure accurate inventory and financial records.
Q: How are sales refunds managed in the Inventory Module?
A: In the case of sales refunds, the system adds the refunded quantity back to stock management based on the related COGS sales transaction. It then updates the items' cost-weighted average to reflect the returned goods accurately.
Q: How do I handle inventory write-offs for damaged or expired items?
A: You can manually write off items for waste, expiry, or any other cause. The system will record a write-off transaction that deducts the damaged items from stock management using the weighted average COGS, ensuring that your inventory records are accurate.
Q: What accounts are created when I add a new product for sale?
A: When you add a new product for sale, NuMetric automatically creates two accounts: one under "Assets—Inventory" to track the stock and another under "Expenses—Cost of Goods Sold" (COGS) to record the cost. You will also select the income account associated with the sales of this item.
Q: How does NuMetric handle COGS transactions?
A: NuMetric automatically records a COGS transaction for each sales transaction based on the calculated cost per item in stock management. This ensures that the cost of goods sold is accurately reflected in your financial records, maintaining financial accuracy.
Q: Can the Inventory Module integrate with other NuMetric features?
A: Yes, the Inventory Module seamlessly integrates with other NuMetric features such as billing, sales invoicing, and financial reporting. This integration ensures that all inventory transactions are accurately recorded and reflected across your financial management system, providing a comprehensive view of your business operations.