Inventoried Items Prompt for Cost
Selling (or Building from ) Items which are Inventoried which have a negative Quantity on Hand uses the Cost, rather than the Average Cost, for any postings. If this value is zero when it should be a positive dollar amount, Inventory valuations and Cost of Goods Sold numbers may be out of balance until the Item is purchased and its Quantity on Hand restored to a zero or positive value.
Big Business 2.5 continues to allow you to overdraw your inventory (Invoice an Item prior to entering the Vendor Bill for the Item) and incorporates numerous new features to prevent anticipated problems. (3210)
When saving a Sold, Inventoried Item in Big Business 2.5, you may encounter the dialogue, "Big Business recommends that Items which are Sold and Inventoried have a nonzero cost." Big Business is asking you to provide the anticipated Cost of the next unit to be purchased. In the event that you sell this Item into a negative Quantity on Hand, this Cost will be used for the Cost of Goods Sold posting.
Under normal circumstances, you will purchase this Item before selling it. When you create a Purchase Order or Vendor Bill, Big Business will ask if you would like to update the Cost of the Item. The Cost field, found on the History tab of the Item Card can be thought of as your expected price for your next purchase. If you purchase the Item after selling it, Big Business will make a correction, if necessary, to your Cost of Goods Sold Category.
Once updated, the Cost will automatically be filled in on new Purchase Orders and Vendor Bills. If you a receiving a special pricing on one Purchase Order or Vendor Bill, you might choose not to update the Cost of the Item. In general, you will want to keep your Costs updated.
If the Item in question is Inventoried but has no dollar value, simply click, "Leave Cost Zero," when saving the Item.
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