Negative Inventory in MYOB files | Jet Convert

Negative Inventory in MYOB files

We cannot convert a file that has the negative inventory setting enabled.  This means that there are Items that currently have a negative stock on hand and there are negin.dat records related to the negative inventory.  

If there is a negative inventory item this generally occurs when a sale is made however there is no available inventory. In this instance the MYOB system will record the cost of goods for the item as per the last sale and COGS.

This is a temporary record which cannot be 'finalised' until the purchases have been received for this item and so MYOB creates a negin.dat record to track this item. Once the inventory item is received then MYOB will complete a cost of goods adjustment based on the correct purchase information. The negin.dat tracking record will then be cleared. 

For us to be able to convert correctly we need you to address the negative inventory. The reason is two-fold:

  1. Firstly without Negative Inventory switched off, we cannot complete the conversion using our software tool. 
  2. Secondly, in order to switch off the Negative Inventory Preference (Setup > Preferences > Inventory), Purchases or Adjustments to bring all inventory to positive must be processed. As this will affect the accounts, it is something that we cannot complete on your behalf. When this is completed the negin.dat records will in most cases be cleared, allowing you to switch off the Negative Inventory Preference. 


What you need to do - files with NO items against open orders
 
The next step for you is to adjust the items with negative inventory and reload the file for conversion. To update this information in MYOB you complete the following:

  1. Prepare a current Inventory value reconciliation report.
  2. Export this report and 'sort' by value so the items with a negative on hand count appear at the top. This will show you the items that need adjusting.
  3. Make a backup as MYOB may process some transactions that cannot be reversed. Then either process a Purchase, or enter an Inventory Value Adjustment journal to bring the on hand count to 0 or more. If doing an Inventory Adjustment Journal, it is recommended you use tomorrow’s date and initially leave the adjustment value as $0. 
  4. After processing the Purchases or Inventory Adjustment Journals, it is recommended you review all system transactions generated by MYOB. Look under the Transaction Journal – Inventory tab, with dates set to the date used. There may be none, or there may be hundreds. You may then need to process adjusting transactions to reverse the effect of the system generated transactions. If unsure, you should consult with your bookkeeper or accountant. 
  5. Switch off the Negative Inventory Preference. If MYOB does not allow you to de-select it this indicates that not all negin.dat records were cleared. The file may need to be repaired to remove these records manually. We can use our third party provider to repair the file for a fee. Let us know if you would like a quote.

What you need to do - files WITH items against open orders

The next step for you is to adjust the items with negative inventory and reload the file for conversion. To update this information in MYOB you complete the following:

  1. Make a backup as MYOB may process some transactions that cannot be reversed. 
  2. Open the Purchases Register and set the dates from earliest date the file was used to the latest transaction date, or 1 July 1900 to 31 Dec 9999 if unsure. Select the Orders tab. Identify any Orders with a tick in the Received column. These are Orders for Items marked a Received and sold. As with the Negative Inventory Items, MYOB tracks these Sales until this Order is converted into a Bill. Only then does MYOB finalise the COGS for the sale and clear the negin.dat record. It also reverses a temporary transaction posted to your Inventory Accrual account. Open each Order and convert to a Bill. Use tomorrow’s date and ensure all Items have N-T as the tax code.
  3. Prepare a current Inventory value reconciliation report.
  4. Export this report and 'sort' by value so the items with a negative on hand count appear at the top. This will show you the items that need adjusting.
  5. Then either process a Purchase, or enter an Inventory Value Adjustment journal to bring the on hand count to 0 or more. If doing an Inventory Adjustment Journal, it is recommended you use tomorrow’s date and initially leave the adjustment value as $0. 
  6. After processing the Purchases or Inventory Adjustment Journals, it is recommended you review all system transactions generated by MYOB. Look under the Transaction Journal – Purchases and Inventory tabs, with dates set to the date used. There may be none, or there may be hundreds. You may then need to process adjusting transactions to reverse the effect of the system generated transactions, including a Service Credit to apply against the Supplier balance . If unsure, you should consult with your bookkeeper or accountant. 
  7. Switch off the Negative Inventory Preference. If MYOB does not allow you to de-select it this indicates that not all negin.dat records were cleared. The file may need to be repaired to remove these records manually. We can use our third party provider to repair the file for a fee. Let us know if you would like a quote.

If successful please reload the file for conversion