Adjusting On-Hand Inventory Quantities Without Impacting General Ledger Valuation in Sage 100

Maintaining accurate inventory records while ensuring the integrity of your General Ledger is crucial for effective inventory management. Follow these detailed steps to adjust your on-hand inventory quantities in Sage 100 without affecting the inventory valuation in your General Ledger.

 

Step 1: Determine the Inventory General Ledger Account

 

  • Navigate to Product Line Maintenance: Go to Inventory Management > Setup > Product Line Maintenance

  • Select the Product Line: Enter the product line code or use the Lookup button to list all product lines. If the product line already exists, its description and related information will appear.

  • Locate the Inventory Account: Click on the Accounts tab. Find and note the Inventory account associated with the product line.

Step 2: Enter the Inventory Adjustment Transaction

  • Access Transaction Entry: Go to Inventory Management > Main > Transaction Entry

  • Select Transaction Type: Choose “Issues” from the drop-down box.

  • Create a Header Record and Select Lines: Fill in the necessary details for the header.

  • Enter Item Details:

    • Enter the item code.

    • Specify the quantity to issue:

      • Use positive numbers to reduce inventory on hand.

      • Use negative numbers to increase inventory on hand.

  • Adjust General Ledger Account: Change the G/L account to the Inventory account for the specified product line.

Step 3: Finalize and Print

  • Accept and Print:

    • Confirm the entry and print the transaction.

    • The Inventory Transaction Register should display the Inventory account for the product line as the G/L account for the transaction.

Step 4: Correcting Errors

  • Review Before Update: If the General Ledger account is incorrect, do not update. Instead, return to the entry and correct the General Account.

  • Update and Print:

    • Once verified, update the entry.

    • Print the Daily Transaction Register. The credit and debit should be zero, confirming the adjustment.

Important Considerations

  • Documentation: Maintain thorough documentation of these transactions for future reference and audits.

  • Reconciliation: Periodically reconcile on-hand inventory quantities with your physical inventory to ensure accuracy.

  • Internal Controls: Implement internal controls to monitor and approve these adjustments to prevent errors or misuse.

 

Following these steps will help you manage inventory adjustments effectively, ensuring your General Ledger remains accurate and your inventory records are up-to-date.

If you have other questions about Sage 100 Inventory Maintenance or General Ledger, Ardent Consulting is at your service. Our team of experts is ready and eager to help you navigate your system challenges and optimize your business's potential. We prioritize your business’s health and are committed to supporting your journey every step of the way.

Doug Clark