Usage of Inventory Item (Wip)

[edimedia]

Hello,

Thank you for the amazing work on this software! I’m currently using it for managing purchases and inventory, but I’ve encountered an issue that I don’t fully understand.

After creating a purchase order and marking it as "Received," I noticed that the inventory balance becomes negative instead of increasing. Additionally, the same amount appears as a reduction in short-term debt (CashFlow Statement).

Here are my questions:

1. Why does the inventory become negative after a purchase order?
2. What is the logic behind linking the inventory adjustment to a reduction in short-term debt?
3. Is this behavior intentional, or could it be related to configuration issues on my end?

I would appreciate it if you could clarify how the system handles these transactions, as I want to ensure my records reflect the correct financial situation.

Thank you in advance for your support!

Best regards,
Edimedia Mutoke

[elarroba]

Hello, thanks for your question.
Could you provide step by step instructions to replicate what you are experiencing so I can provide some guidance?

Thanks,
Miguel

[edimedia]

1. Create an inventory Item (WIP)

2. Create an PO and its Bill

3. Check the Inventory

The Test Items item is there, but the inventories are negative in the cash flow statement

And we can see that there are some debts Increase/Reduction of Short-Term Debt Principal too.

Is this behavior intentional, or could it be related to configuration issues on my end?

[elarroba]

Here's some guidance to your questions.

Why does the inventory become negative after a purchase order?

In the indirect Statement of Cash Flows it will show a negative because cash was used to purchase inventory.

In the Balance Sheet however, you should see a positive balance in inventory accounts.

What is the logic behind linking the inventory adjustment to a reduction in short-term debt?

A bill was paid, which reduces accounts payable. This shows as a positive in the indirect Statement of Cash Flow.

Is this behavior intentional, or could it be related to configuration issues on my end?

This is standard behavior. No configuration issues.

[edimedia]

This clarifies a lot regarding how inventory and cash flows are handled in the system. I appreciate your time and the great work you've done on this software.

Thank you.

[ajgumiran88]

Thanks for this.

…

On Thu, 16 Jan 2025, 8:59 am Miguel Sanda, ***@***.***> wrote: Here's some guidance to your questions. Why does the inventory become negative after a purchase order? In the indirect Statement of Cash Flows it will show a negative because cash was used to purchase inventory. In the Balance Sheet however, you should see a positive balance in inventory accounts. What is the logic behind linking the inventory adjustment to a reduction in short-term debt? A bill was paid, which reduces accounts payable. This shows as a positive in the indirect Statement of Cash Flow. Is this behavior intentional, or could it be related to configuration issues on my end? This is standard behavior. No configuration issues. — Reply to this email directly, view it on GitHub <#242 (reply in thread)>, or unsubscribe <https://github.com/notifications/unsubscribe-auth/ALEKSQRZUFUMYVQ24JMIJFD2K375VAVCNFSM6AAAAABVIHTENCVHI2DSMVQWIX3LMV43URDJONRXK43TNFXW4Q3PNVWWK3TUHMYTCOBUHEYTMNA> . You are receiving this because you are subscribed to this thread.Message ID: <arrobalytics/django-ledger/repo-discussions/242/comments/11849164@ github.com>