Sage 50 / Sage 100

Welcome to our pod cast How to check if Sage 50 inventory management is working properly

Today we will Discover Tips and Tricks to verify if Sage 50 Inventory Management is working properly

We will Learn more about Sage 50 inventory item setup
We want to help you understand How the Inventory type and general ledger accounts impacts your financials.
Then we will discuss Why reconciling Inventory to the GL is so very important.
There are easy Steps to determine if Sage 50 inventory is functioning properly that you can do.
Lastly What happens when inventory goes negative.

The first item you need to verify is the inventory item class. If you care about how much inventory you are selling and how much profit you make per transaction per customer then you must use stock item, master stock item, serialized Stock item, assembly or serialized assembly. Once an inventory item has been used in a transaction this type cannot easily be changed without a great deal of effort.

The second area that needs your attention are the following 3 fields. GL sales account, GL inventory account and GL cost of sales account. These accounts help manage the journal entry when items are received from a Purchase Order or accounts payable invoices and increase the value of inventory on the balance sheet. When an item is sold Sage 50 should deplete inventory, record the sales revenue and cost of the item to the cost of sales account on the profit and loss statement and finally create the customer open accounts receivable.

Step 1. Print the general ledger trial balance as of a specified date or period end.
Step 2. Locate the inventory general ledger account on the balance sheet and the look at the ending account balance.

Step 3. Print the inventory valuation report as of the same specified date or period end as the general ledger trial balance in step 1 and look at the total value.
Step 4. Compare the general ledger inventory value from step 1 to the total inventory value report from Step 3.

Last step verify that the dollar value is the same between the general ledger trial balance accounts and the inventory valuation report total and if they agree then you are good to go.
If the amounts are not the same check that the right GL accounts are used on the items, look to see if the items were set up as service or labor and should have been set up as stock.
Is there a manual journal entry posted to the inventory general ledger accounts or are there inventory items that have a negative quantity on hand or cost?

How to correct Sage 50 inventory items when it goes negative
Print the inventory valuation report

Locate the items with a negative quantity on hand

Use the inventory adjustments task
Re-establish the correct quantity on hand or enter enough to bring the quantity on hand to 0
Remember every inventory adjustment you make will have an effect on your balance sheet and/or your profit and loss.

Get your Free Review To Help determine if your Sage 50 inventory management is in balance.

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Reach out for our Sage 50 inventory management training class schedule

Thanks for joining us for this podcast reach out solutions@jcscomputer.com or call us at 800.475.1047


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