The InventoryAutomaticRevaluation feature is now obsolete in Manager.io. In older versions, Manager.io automatically calculated the cost of goods sold using the perpetual weighted average method. While this automation seemed convenient, it introduced complexities that often required extensive troubleshooting.
In newer versions, sales and purchases are posted directly to income and expense accounts. As a result, the asset account Inventory On Hand will be zero unless inventory revaluation entries are made manually.
Switching to periodic manual inventory revaluation offers several advantages:
Flexibility in Valuation Methods: Choose the inventory valuation method that best suits your business needs, such as FIFO, LIFO, or weighted average.
Enhanced Production Orders: The Production Orders tab now allows for multiple output items, providing greater adaptability in managing production processes.
Simplified Account Balances: Understanding balances in the Inventory On Hand account becomes straightforward. The balance is calculated by multiplying Qty Owned by the manually specified Average Cost.
Elimination of Negative Inventory Issues: Manual revaluation helps avoid complications arising from negative inventory balances.
Improved Program Performance: Without constant real-time recalculations of inventory costs, you may notice faster performance within the program.
While automatic inventory revaluation offered convenience, its complexity often led to inaccuracies and the need for significant troubleshooting. Periodic manual revaluation provides flexibility, simplicity, and accuracy, making it a superior method for inventory management. By manually calculating and updating inventory values, businesses can ensure more reliable and transparent inventory records, ultimately saving time and improving operational efficiency.
To deactivate the InventoryAutomaticRevaluation feature:
Navigate to the Settings tab.
Click on Obsolete Features.
Select Inventory Automatic Revaluation.
Uncheck the Enabled checkbox.
Once deactivated, Manager.io will no longer calculate inventory costs automatically. Instead, it will rely on entries in the Inventory Revaluations tab to establish the Inventory On Hand balance.
For more information, see Inventory Revaluations.