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CERTIFIED COURSE CURRICULUMSAGE UNIVERSITY

INV111: Allocate Inventory

IMPORTANT NOTICE

This document and the Sage 100 Contractor software may be used only in accordance with the Sage 100 Contractor End User License Agreement applicable to the Sage 100 Contractor software. You may not use, copy, modify, or transfer the Sage 100 Contractor software or this documentation except as expressly provided in the license agreement.

Visit Sage's training services Web site at www.SageU.com, call 1-877-724-3285, or e-mail us at [email protected] to learn about training classes that Sage adds throughout the year. Contact your business partner to learn about local training options.

Information in this document is intended solely as general information with respect to common business issues and is not to be construed as professional advice. Consult a tax or accounting professional for all tax and account related questions. THE INFORMATION HEREIN IS PROVIDED“AS IS” AND ALL WARRANTIES ARE EXPRESSLY DISCLAIMED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY: OF MERCHANTABILITY; OF FITNESS FOR ANY PARTICULAR PURPOSE; OF NON-INFRINGEMENT OF ANY PROPRIETARY RIGHT OF ANY THIRD PARTY IN ANY COUNTRY; OTHERWISE ARISING OUT OF ANY PRODUCT, PROPOSAL, SPECIFICATION OR SAMPLE; AND ANY WARRANTY THAT THE DOCUMENT IS ERROR FREE. No license, express, implied, by estoppel or otherwise, to any intellectual property right is granted by this document. Sage Software may make changes to the information in this document at any time, without notice. Recipient is solely responsible for assessing the suitability of the information and assumes all risk of use.

© 2013 Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are the property of their respective owners.

03/2012

Inventory Contents

© 2013 Sage Software, Inc. Online Training at www.SageU.com 3

Contents

Welcome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Course Pre-Requisites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Training Data for Lecture and Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Conventions Used in This Workbook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Allocate Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11The Inventory Allocation Screen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Inventory Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Move Inventory from One Location to Another . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Student Exercise 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Hold Inventory for a Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Student Exercise 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20The Inventory Allocation List Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Student Exercise 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21To Record the Return of Inventory from a Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Student Exercise 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22To Record Internal Usage of Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Student Exercise 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Adjust Inventory Quantity or “Write Off” Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 24Student Exercise 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24To Revalue Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Student Exercise 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Inventory Contents


Inventory Welcome


Welcome

This handout has been designed for use in an instructor-led class for Sage 100 Contractor. Detailed instructions help you recall the procedures introduced by your instructor. Depending on how your training class is conducted, some sections may not be addressed. Refer to these sections in the future as you continue to work with the software.

Course Pre-Requisites

This course assumes that you have installed Sage 100 Construction and opened the Sample Company. You should also have attended the NCT102 and INV101 courses.

Training Data for Lecture and Activities

As your instructor demonstrates procedures in the software, he or she will access the training data set that has been used to capture application screens in this workbook. You will also use the training data set to complete the activities.

You can download the training data sets on the Sage University Web site (www.sageu.com) using the procedure explained on the next page.

Transactions in the Training Data Set

In certain cases, transactions in the data set that you use may show a different year than the illustrations in this book, or than the instructor shows in class. If your data set transactions show a different year, but all other details such as the account setup, vendor names, and jobs are identical, your data set will correspond to the materials in all respects but the date.

When you complete the activities that involve dates, you may see a different year in the instructions or screen shot than in your data. Use the appropriate year based on the data you are using for activities.

For example, if 2012 is the current year in your data and the activity prompts you to enter prior year information, enter a date in 2011. If the activity prompts you to enter current year information, enter a date in 2012.

Welcome Sage 100 Contractor

8 Local Training From Business Partners © 2013 Sage Software, Inc.

If you already have an older version of the training data installed, you can upgrade it using the directions below to download the latest training data set.

If you prefer to use another data set for the activities, you may do so, but your results may not resemble the images you see in the workbook.

To Download the Training Data Set

1. In an Internet browser, go to http://sageu.com/masterbuilder.

2. In the right-hand area under QuickLinks, click Training Data.

3. Select the ReadMe File file for instructions on load the sample data.

4. Click the Download the Sample Company Training Data link.

5. Click Run to install the training data. If you see a security warning about the publisher, click Run.

6. Browse to your MB7 folder, then click Unzip, and then click OK.

Menu Paths

In this workbook, menu paths show you the steps required to start a task. This is a sample menu path:

4-Accounts Payable > 3-Vendor Payments > 2-Pay Vendors

Many modules and tasks are also available through Sage 100 Contractor Desktop. The Desktop has a tree structure that reflects the same logical progression as the steps of a menu path.

Where to Get Additional Information

Application Help Files

Each application contains an extensive Help system. The Help is your primary resource for reference and how-to information for all tasks. Help includes Contents, Index, and Search features that help you locate information quickly.

You can start Help in two easy ways:

Select About this Window from the Help menu in any application.

Press the F1 key on the window in any application.

Technical Support Knowledgebase

The Technical Support Knowledgebase contains the latest information about application features. You must have a current service plan to access the knowledgebase.

Inventory Welcome


InfoCenter

Be sure to check the InfoCenter for product news, announcements, support, and training. Access the InfoCenter from Home and Resources tab > Customer Resources.

Submit Enhancement Requests

Do you have a suggestion for how we can improve our software? We want to hear your ideas! Open the Product Enhancement Request option from Home and Resources tab > Customer Resources. Ideas you enter will be submitted to our Product Management team.

Conventions Used in This Workbook

This workbook uses the following conventions:

The names of screens, windows, fields, buttons, and other features displayed by the software are shown in bold type.

Information you enter into the software is in bold type, as in the example below:

Type Miscellaneous in the Amount Type field.

Names of keys are shown in capitals; for example, ENTER, TAB. A plus sign (+) between two key names indicates that you should press both keys at the same time; for example, SHIFT + TAB.

NOTE: This symbol draws your attention to information of particular interest.

TIP: This symbol draws your attention to tips about using a helpful feature of the software.

WARNING: This symbol draws your attention to information that is important because it can help you avoid a costly or time-consuming error.

FOR MORE INFORMATION: This symbol draws your attention to a reference to another document or to another section in this document.

Welcome Sage 100 Contractor


Inventory Allocate Inventory


Allocate Inventory

This course will teach you how to enter inventory allocations to record the movement, usage or revaluation of inventory.

Learning Objectives

What You Will Learn:

Move Inventory from one location to another.

Expense inventory used on a job.

Expense Inventory used for internal purposes.

Adjust for inventory shrinkage quantity.

Adjust for inventory value.

Allocate Inventory Sage 100 Contractor


The Inventory Allocation Screen

Purpose of the allocation screen

To enter beginning balances of inventory

To enter and track the movement of inventory from one location to another

To record the consumption, sale or loss of inventory

To hold or reserve inventory items for jobs

To move items to and from a job

To re-value existing inventory

12-2 Inventory Allocation screen

Ticket # - this number will print on the shipping ticket or packing slip.

Job – Enter a job number if this record is to hold or ship inventory to or from a job. The job address will default and print on the shipping ticket.

Approved, Delivered, Invoiced are optional dates.

Deliver Via – create a Quick List of delivery options.



Inventory Status

Each inventory record is assigned a status based upon the progress of the transaction in the inventory process.

Open – The Inventory is available and is ready to ship.

Review – The record should be reviewed before shipping.

Hold Stock – Items are to be held for a job. Sage 100 Contractor reduces the Quantity Available but not the quantity on hand.

Shipped – Record is posted, Inventory is moved or reduced, GL transaction is created and the quantity on hand is changed (if appropriate).

The grid of the allocation screen is where you will record the movement of individual parts in and out of inventory locations.

Part # - This is used to select the desired part. There are several ways to find the part in the part database.

1. Type the part number into the Part# cell.

2. Type the alpha part number into the Part# cell.

Only the Shipped status will post to GL or change the quantity on hand.



3. Click on the down arrow in Part# field, or press F5 while in the Part# cell, to launch the lookup list.

4. Type a part number close to what you’re looking for in the Part# cell, and then press F5 to jump to that part in the lookup list. However, if the part number does not exist you will arrive at the top of the list.

5. Type the beginning of part description in the Part# cell, and then press F4. The lookup window will display all parts whose descriptions begin with that sequence of characters.

6. Type “*” with a portion of the part description in the Part# cell, and then press F4. The lookup window will display all parts whose descriptions contain that sequence of characters.

7. Picklist: Right-click in the Part# cell and select “Display Picklist Window” to launch a lookup window that contains a check-mark button. Double click the desired parts (they will then be highlighted in red) or drag to highlight a block of them, then click the check mark button at the top of the lookup window to bring the selected parts into takeoff at once.

Description – This automatically fills with the Part’s Description. In addition the Manufacturer and Mfg Part Number can be included. To do this, activate Options -> Manufacturer Details.

Alpha Part# - This automatically fills with the part’s alpha number information.

Quantity and Cost – cost is only entered for stocking. Cost will always be average cost for picked items. The quantity must be one for serialized parts.

Serial # - required for serialized parts.

Every Inventory Allocation requires an entry in two of the three following columns:

Source - The location from which the item is being picked.

Account – The GL account that is affected by this transaction. This applies unless inventory is only being moved from one location to another location (i.e.: the quantity of this part owned by the company is not being changed by this row).



Destination – The location where the item is being stocked.

Ledger Account and Subaccount - Parts are being added to or removed from Inventory.

Source – Parts are being taken out of this inventory location

Destination – Parts are being put into this inventory location



Move Inventory from One Location to Another

To move inventory from one location to another, enter the part, the quantity, source, and destination inventory locations. The total quantity of inventory does not change; therefore the general ledger is not affected so the Account field is left blank.

Allocation could be saved with an Open status, shipping ticket printed, and then changed to Shipped once the transfer has been completed.

Viewing the inventory shows no change – the status of the allocation is “Open”.

Moving inventory between locations requires a source location and a destination location.



To ‘post’ this allocation, change the status to “Shipped”. Once the allocation has a “Shipped” status the status field can’t be changed. Use the Void button to ‘unship’ the allocation.

Now when we view the inventory we see that the parts have been transferred.

Student Exercise 1

1. Open Sample Company, Menu 12-2.

2. Enter the above allocation to move inventory.

3. Recall the transaction, select the part and click on View Inventory.

4. Notice the Total has not changed, only the location quantity.

5. Alter the status to “Shipped,” and save the record.

6. Click on View Inventory and note the changes.

Return to the conference when you have completed this exercise.



Hold Inventory for a Job

To hold stock for a job, enter the allocation for the specified job with a status of 3 Hold Stock.

Hold Stock reduces the quantity available, as shown on the Parts (9-2) inventory subscreen, but not the quantity on hand. No accounting or job costing activity takes place until the status is changed to “Shipped”.

The Inventory information from the Parts (9-2) screen - Part #4441:

Notice that the quantity available on row 3 is 320 less than the quantity on hand.

The quantity available prior to saving the “Hold Stock” allocation must be greater than the quantity being held. The quantity available can’t be forced to a negative number.

Reports that show stock held for a job:



12-1-2, Report# 32 Quantity on Hand ~ Land; with Locations

12-1-1, Report# 22 Allocation List with Details



Student Exercise 2

1. Enter the allocation shown on previous page to hold stock for Job #220.

2. Recall the transaction, select the part and click on View Inventory.

3. Notice the total has not changed, only the quantity available.

4. Print the above reports and verify your results.


To record the use of inventory on a job

Change the status of the hold stock allocation to “Shipped,” or enter a new allocation directly to the job.

Since the account is in the direct expense accounts range it is necessary to job cost the transaction. Quantity on hand will now be reduced:



The Inventory Allocation List Report

It is often handy to run this report based on a job to see that ‘status’ of all of the inventory allocations for the job. Running the report that includes the details gives a list of all the parts going to the job.

You may also run the report that includes the details for a list of all the parts going to the job. Since status is a selection choice, you could print an allocation list of only the “Hold Stock” (unshipped) allocations, including the parts that are listed on them.

Student Exercise 3

1. Recall the allocation entered to hold stock for Job # 220.

2. Change the status to Shipped, and then save your record.

3. Complete the job cost information as shown on the previous page.

4. Print the above report and verify your results.

5. Print the same report but including the details




To Record the Return of Inventory from a Job

When stock items are returned from the job to the warehouse an allocation is entered to reduce job cost and increase inventory.

For this entry, a general ledger account in the direct expense range is entered along with a destination location.

This allocation will reduce job cost.

While it is permissible to alter the unit cost when parts are put into inventory (as is true in this situation), items returned to inventory from a job should come back at the default cost.

Student Exercise 4

1. Enter the above allocation to return stock from Job # 220.



2. Verify the status is shipped, and then save your record.

3. Complete the job cost information.

To Record Internal Usage of Inventory

Stock items used for internal purposes fall under two categories:

1. An allocation is entered to post to an overhead account if the materials were used for maintenance or repair.

2. An allocation is entered to a fixed asset account if the materials were used as part of a capital improvement.

Student Exercise 5

1. Enter the allocation record above to account for internal inventory usage of 12 red bricks from the warehouse for building a sample for use by salespersons.





Adjust Inventory Quantity or “Write Off” Inventory

It may become necessary at times to adjust the quantity on hand of inventory items. Reasons that this may be necessary could be theft, loss, damage or other variances between the physical count and the quantity on hand stored in Sage 100 Contractor inventory.

The process for adjusting inventory quantity is to enter an allocation to adjust the quantity to the correct count at each inventory location and posting the change in value to the inventory adjustment account.

In our example let’s say that a pallet of bricks was dropped in the warehouse and 61 of them were broken. That inventory allocation would look like this:

Student Exercise 6

1. Enter the above allocation to record the loss of the 61 bricks in the warehouse.





To Revalue Inventory

Only use this after discussion with your CPA or in the case of usable but damaged parts.

Occasionally the value of items in inventory needs to be adjusted to the current market value. This change can be the result of current market pricing, obsolescence of items or damage to materials in stock.

The effect on part values will vary depending on the inventory valuation method selected when starting up the Inventory module (weighted average cost, last-in first-out, first-in first-out.)

To revalue inventory, an allocation is entered that will:

1. Remove the quantity to be adjusted. This may be the entire quantity on hand, or a portion thereof.

2. Restock the inventory in the exact quantity using the new value.

3. The difference or change in value will be posted to an overhead account called “Inventory Adjustments.”

This needs to be performed for all locations.



Student Exercise 7

Enter the above allocation to revalue all the bricks in all of the company’s inventory locations. The new value is $0.08


Summary Moved inventory from one location to another

Held and shipped inventory used on a job

Returned unused inventory from a job

Expensed inventory used for internal purposes

Adjusted inventory quantity on hand

Adjusted the value of existing inventory

inv111: allocate inventoryftp.sagesoftwareuniversity.com/lms/cre/smb26/inv111... · 2013-01-23 ·...

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