· 2 min read
Benefits of Cin7 Core
Like a car, sometimes the additional safety features of inventory system justify a higher price. Learn how Cin7 Core keeps your financials correct.
Just like a car can increase your safety with additional features, an inventory system can keep you from making mistakes that would render your financials worthless. Let’s go over two features of Cin7 Core that prevent financial chaos.
Let’s say you manufacture your own products or use a co-manufacturer and you have backorders. Immediately after manufacturing, you sell some of the products to customers. Then over the next few weeks or months, you continue to receive vendor bills related to that production, even though some of the units have already been sold.
In Cin7 Core, you can keep adding additional costs to the production run, and Cin7 Core will retroactively increase the cost of goods for the units you have already sold. This is a mind-blowing feature. Then, it will retroactively change the journal entries that have been sent to QuickBooks to ensure that the inventory amount in Cin7 Core stays in sync with QuickBooks.
The single most difficult problem with using a separate inventory system is keeping the inventory value in sync with QuickBooks. With other systems, I have spent weekends tracking down why the inventory values diverged.
An ERP system’s major goal is to determine how profitable the sales from production runs are. Being able to ensure that all the landed costs are correct — even for units that have already been sold — is a killer feature.
Let’s say that you have done a stock adjustment, or received goods into a warehouse and then sold or transferred those units. Should you be able to delete the stock adjustment or goods receipt? NO! If you do this, it will orphan the sale or transfer, rendering the profitability of that sale meaningless. However, other systems do not save you from your own mistakes. Cin7 Core will refuse to allow you to do harmful things. It gives a simple message that you cannot delete purchase orders or stock adjustments because those units have already been transferred or sold. This is so helpful.
Anderson CFO is an official Cin7 Core partner. I have worked with and implemented various ERP/inventory systems for customers. Just like buying a car, customers are fixated on the price. Cin7 Core is not the cheapest system. However, saving yourself from an accident is often well worth the cost in the long run.
