Average Cost Calculation Fix

By |2021-07-09T02:15:52-05:00June 8th, 2021|Comments Off on Average Cost Calculation Fix

What Happened

Total Office Manager, version 11.2.40 (12/18/2018) through 11.2.47 (1/7/2019), contained a bug that might have caused the direct cost of one or more items to be incorrect.

How to Know if You Were Affected

Did you track inventory in 2018 while using version 11.2.40 to 11.2.47? In other words, were you selling items that were of the type “Inventory Part” using any of the above versions of the software? If no, you would not be affected. 

If you answered yes to the above question, would you also answer yes to any of these questions?

  1. Did you enable the preference to sell out of stock inventory and did you sell into the negative?
  2. Did you utilize Progress Invoicing (create a progress invoice from an estimate)?
  3. Did you create value adjustments to modify the average cost of an inventory part?

If you answered yes to any one of these three questions (while using version 11.2.40 through 11.2.47), your inventory valuation (average cost of an item) might be off due to a bug.

What This Means to You

If your average cost is incorrect, then any report that relies on average cost may be incorrect too. This would include the balance sheet, income statement, job costing reports, item valuation, and others. The number of inaccuracies could be very small or fairly large. It depends on the volume of transactions you have using Inventory Parts.

What We Did About It

This bug was fixed in version 11.2.53 released on 1/23/2019. However, it is possible that the average cost of your invoices is still incorrect. We created a utility that will locate and fix affected invoices, sales, and credits.

Important Notes

  1. This update includes new average cost calculation logic. When you backdate or postdate a record, the software now uses the average cost of the item on that particular date. There is also a new tab in Item History that shows the entire average cost history of an item.
  2. The Fix Average Cost Utility updates the average cost of an Inventory Part and fixes the problem mentioned above.
  3. If you wish to manually update the average cost calculation on an invoice, you will need to open the invoice, change the date, change the date back, and save.
  4. The Fix Average Cost Utility will not recalculate the retail price of an item. The retail price of your items will not change.
  5. The Fix Average Cost Utility will change the cost of an item (if needed). This might affect gross profit and Use Tax.
  6. The Fix Average Cost Utility will ignore Serialized Items, Item Reservation Items, and other item types.
  7. If an invoice has sales tax that is calculated based on the direct cost of an item (Use Tax), the retail price could change. This could result in an overpayment or balance due. It could also result in a greater or lesser sales tax amount payable. Once this utility has finished, a report will be opened in Notepad. You will see if any retail pricing was affected.
  8. After this utility has recalculated your invoices and sales, it is possible that sales commissions added to an invoice (if any) will no longer be accurate. This utility will not add or modify sales commissions on an invoice or sale. However, if you were to manually calculate sales commissions, they could be inaccurate.

How to Use the Scanner

Open the Database Checkup form.

 

 

 

 

 

 

In the Scan dropdown list, select Invoices. Enter a date range and click Scan. There should not be a reason to search any further back than December 18, 2018. That’s when the bug was first introduced. However, if you do, the utility will detect all sales records that have an average cost calculation that can be improved using our new logic.

Click the scan button. If nothing is found, you have no affected invoices. If you have a list of invoices and the list is small, you may wish to do nothing.

 

 

 

If you have affected invoices, your scan results will look something like this.

 

 

 

 

 

If you do have a list of invoices that you wish to recalculate, please call technical support and we will walk you through the process. We can set every up for you so that you can run the recalculation utility at the very end of the day. Support is available Monday through Friday from 8:30AM to 4:30PM.

Once the recalculation has completed, the results will be displayed in Notepad and saved to your database for future reference. Notes will also be entered into the audit trail.

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About the Author:

HVAC Electrical Plumbing Software

Aptora delivers a true All-In-One services software solution including CRM, accounting, payroll, inventory, vendors, sales, marketing, dispatch, flat rate pricing, and more. NO 3rd party plugins or integrations required. Created by contractors for contractors, we know what it takes to grow your services-based businesses.

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