Home » Accounting  »  Inventory, Valuation and Reporting

Inventory, Valuation and Reporting

Overview

Vinsight has many features to assist you in tracking your inventory levels and valuations and, more generally, in managing your accounts.  If you are on one of our subscription levels that supports product costing, then you can find some useful tips and information below to ensure that your financial reporting goes smoothly.

In this document:

End of Period Reporting

Before doing your ‘End of Year’ or ‘End of Period’ reporting, you should ensure that your inventory levels and valuations are up to scratch.  Here are some steps you can take to ensure this is the case:

Finalize Outstanding Despatches, Receipts and Operations

Make sure that you finalize any outstanding despatches, receipts or operations in Vinsight to ensure that inventory levels reflect all the work that you have done to date.  This means despatching or receiving any sales or purchase orders that have occurred in reality but not in Vinsight.  Also if you are using production features then this applies to any winery or packaging operations as well.

Correct Dry Goods Variances

Use the Stock Take feature to assess and correct any dry goods variances.   You can run Stock on Hand Reports either at the current time or in the past to get valuations at those times.

 

Valuation & Cost Summary Reports

In order to properly utilise the many reports available to you in Vinsight, it is important to understand the basis upon which they are calculated.

Costs of Goods Sold/ Finished Goods Valuation

‘Cost of Goods Sold’ and ‘Finished Goods Valuation’ reports run off the ‘Standard Cost’ per unit value that is manually entered against each product (in the ‘Costings’ area of each ‘Stock Item’.)

For items produced, you can base this value on the actual productions costs (see Standard Costs of Finished Items) and for items purchased, this should be based on purchase prices plus any other set margins you want to include for cost of goods reporting per unit (See Standard Costs of Purchase Items)

‘Cost Summary’ reports

‘Cost Summary’ reports summarise the actual cost accumulations during the production process but do not automatically update the ‘Standard Cost’ per unit.

These Cost Summary reports are available for both  Bulk Wine and Bottled Wine.  (‘Bulk Wine On Hand Cost Summary’ on the Winery Workbench and ‘Bottled Wine Cost Summary’ from the Quick Reports area of the Accounts Workbench).

The “Bottled Wine Cost Summary” report groups all bottlings of the same product code together, takes the total costs divides them by the total quantity produced and therefore gives an weighted average across all bottlings of the same product.  Individual bottlings are easy to view as well by looking at the individual Stock Items.

Tracking/ Updating Standard Costs

To ensure the accuracy of the ‘Cost Summary’ and ‘Valuation’ reports, it is important to ensure that the ‘Standard Cost’ used in these calculations is current and accurate.   This is easy to do, as the actual costs are tracked by Vinsight as the bulk wine is processed, goes through the manufacturing process and is finally bottled to finished goods.  See Standard Cost of Finished Items for detailed instructions.  Once set, your finished goods inventory valuation will be based on the “Standard Cost” and your Cost Of Goods Sold journal entries will draw down this valuation until it zeros out.

 Accounts Workbench Quick Reports

A summary of all of the Quick Reports available on the Accounts Dashboard, and the basis upon which they are calculated, is set out below.

Report Name Report Basis
Cost of Goods Sold (detailed) Standard Cost x Quantity Sold
Stock On Hand at Location with Total Value Standard Cost x Quantity at Location
Stock on Hand Valuation Standard Cost x Total Quantity
Bottling Dry Goods Movement Journals Additive Standard Costs (at the time of packaging) x Quantity Employed
Bottling WIP Movement Journals WIP Cost Summary from Bulk Ledger to Finished Item
Bottled Wine Cost Summary WIP Cost Summary broken down by cost source, then totals per unit produce
Bulk Wine Cost Summary WIP Cost Summary broken down by cost source, then totals per litre currently in tank or barrel