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If you try to record a transaction that would result in zero units on hand, you might receive the following error.

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This means that while your inventory quantity will be zero, the value of the items you're adjusting would not return to zero.

For example, if you tried to return 7 glasses at $10.00 each for a total value of $70.00 but AccountRight shows the 7 glasses to be worth $63.64 in total, you'll see this message.

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How did this happen? Even if your inventory and transactions were entered correctly, this discrepancy can still appear because of AccountRight's average cost method of calculating your inventory value.

How can I fix it?

Before you can record this transaction, you need to adjust your inventory value by the amount that it's unbalanced by. Follow the steps below to find the adjustment amount and record the inventory adjustment.

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title1. Run an inventory report

Run an inventory report

Run the Item List [Summary] report for the applicable items.

  1. Go to the Reports menu and choose Index to Reports.
  2. Click the Inventory tab.
  3. Click the Item List [Summary] report (under the Items sub-heading) then click Advanced.
  4. At the Items field, select the items you want included in the report.
  5. Select the option Include Zero Quantities.
  6. Click Run Report.
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title2. Compare the report with your transactionstransaction

Compare the report with your transaction

You'll now be able to compare the value of the items on the Items List [Summary] with those of the transaction which is generating the error. The quantity should be the same, but the dollar value will be greater or less.

Compare the value of the items from the Items List [Summary] report, with those of the transaction. You will see that the quantity will be the same (zero), but the dollar value will be greater or less.

For instance, Clearwater Pty Ltd want to return the remainder of their 100ml glasses to their supplier. 7 glasses need to be returned at their original cost of $10.00. When they try to record the return, a non-zero value alert is given.

The example below shows the Items List [Summary] report filtered for the 100ml glasses.

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The list shows that the average cost total value of the glasses are $9is $63.0964. If the return was recorded, the total value of the glasses would drop below zero (-$6.36), even though the quantity would be 0zero.

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This comparison shows that the total value needs to be increased by $6.36, so an inventory adjustment needs to be done.

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title3. Make an Inventory Adjustment

Make an Inventory Adjustment

An inventory adjustment is used to increase the dollar value of the items. Keep the quantity of the items at 0, because we don't want to add any more into the inventory. Next, you'd increase the amount by the You can also ignore the unit cost because it will adjust automatically when you record the adjustment.

In the Amount column, enter the total value difference you found in the previous task. In our example, it was $6.36. If in your case you need to reduce the total value, enter the amount as a negative (minus).

Finally, you'd enter the account you want to assign the adjustment amount to. This account is usually a cost of sales or inventory adjustment account.

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Learn from the experts

Managing a full inventory can sometimes be tricky. The MYOB Inventory Training Course is an excellent resource to better understand AccountRight's inventory and its features - helping you stock smarter.

Learn more about this course for Australia or New Zealand.

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titleRelated topics

Error: Not enough items on hand to record this transaction

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