Chapter 8

Managing inventory
Inventory Command Centre (ICC)

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 Learning Objectives…
• Adjustment on inventory items
• Update the results of a physical stock count
• Update the price changes of inventory
• Generate various inventory reports

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 MYOB inventory management
• Perpetual Inventory system…keeps track all
the items movements (quantity in stock or on
hand, the costs of inventory, the name of
suppliers and customers).
• All the items movements can be seen from the
Items Register under the ICC.. (refer page 106)

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 Making inventory adjustments
• Why? In certain condition, the actual stock
quantity may differ from the quantities
recorded in the MYOB system…due to several
factors such as error in recording, defects or
spoilage, theft and obsolescence.
• Inventory adjustments can be done by using
the Adjust Inventory feature under ICC.

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 Steps to perform inventory adjustments
(page 109-110)
• Click Adjust Inventory under the ICC.
• Enter the date and memo, e.g. Item defect
• Select the Item Number that you want to make adjustment.
• Enter the quantity to be adjusted ( a positive figure for
addition or negative figure for deduction).
• The unit cost will be automatically calculated based on
weighted-average cost method.
• Enter the Account number to charge the adjustment
amount, e.g. expense account 6-4000 Inventory Shrinkage &
Spoilage.
• Click record button.
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 Updating Physical Stock Counts
• To update the difference between the on-
hand quantities in MYOB system with the
actual result of physical stock count.
• Count Inventory under the ICC will be used to
update the differences and appropriate
journal will be created.

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 Steps to update the physical stock counts
(page 110-111)
• Click count inventory under the ICC.
• Enter the counted quantities under the column Counted.
Any differences will be calculated and shown at the column
Difference.
• Click Adjust inventory to proceed.
• Enter the Default Expense Account to charge the
adjustment, e.g. use account 6-4000 Inventory Shrinkage &
Spoilage.
• Click Continue button and check the adjustment.
• Click CTRL-R to check the journal entries.
• Click Record button when done.
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 Changing Item Prices
• Why? May be necessary to revise the item
prices due to the changes in market prices or
business conditions.
• Set Item Prices feature under the ICC can be
used to change the item prices.
• Changing the item prices does not have any
effect on accounting (will only update the
selling price of each item).

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Steps to change the item prices (page 111-
112)
• Click Set Item Prices from the ICC.
• Enter the new prices under the column Current
Price.
• Click Shortcuts button to enter the criteria for the
changes in item prices (if any), e.g. a percentage
markup from the average cost.
• Click Update all items or Update x items only (if
you have selected certain item to be updated).
• Click OK button.
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Generating Inventory Reports (page 112-
113)

1) Items List Summary report

2) Items Register Detail report
3) Inventory journal

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Generating Financial reports, Backup data file
and Restore a backup file

• Refer chapter 9 (page 117-121)

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 Exercises
• Inventory adjustments….page 114
• Generating reports, backup and restore…page
122
• Sample case assignment...page 125-131

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