Inventory and Services in Sage 50
The inventory and Services are the services and goods that the individual/organization buys or sells. These can also include the items that can be purchased regularly for internal use or the services that you need to run your company. Also included are the items that are purchased to produce a new inventory item or services that the company or the organization offers to the customers. A single module comprises both the inventory item and the services. Let us take a look at some of the examples for the same:
- Items purchased for the business: painting masks and tape, office supplies. Also known as the operating costs.
- Services purchased for the business or organization: equipment rentals, bookkeeping services also known as the operating costs.
- Items that are stocked and resold to customers: paint, door hardware, or costs you pass on to your customer.
- Services offered to the customers: painting, consulting, drafting, cleaning, or yard work. These are the costs passed on to the customer.
The Requirement to Store the Inventory Records
The Inventory and Services module is considered to be an important tool that can assist the organization to manage business costs and analyze company profitability. Thus, creating records for your inventory items and services offers many advantages:
- Helps save time when one creates sales or purchase invoices. Hence Instead of typing the details of every item, you can easily select items from an ascertain list, and Sage 50 Accounting enters all related information automatically.
- Keeping track of inventory quantities. A well-organized list of inventory and service items also makes it easy to keep track of the items you need to buy and sell. Hence the need to focus on areas that might require your attention. Sage 50 Accounting provides two ways to track your inventory costing, Average Cost and First in First out (FIFO) (Sage 50 Premium Accounting).
- Using the price lists to set up preferred pricing and manage cost fluctuations. Price lists are used to control prices. This is done by automatically suggesting the price of a certain inventory or service items when the invoices are created. This also offers an easy and quick way of discounting your regular prices for valued customers.
- Generate inventory profitability reports.
- Create Inventory Categories to help save time when looking up an item, and to generate comparison reports.
To Smoothly Add a New Inventory or Service Item Record
Sage 50 Accounting allows users to instantly add a new inventory or service record “on the fly” when you are entering any of the following transactions:
- Inventory adjustment
- Inventory transfer
- Item assembly
- Sales or purchase invoices
- Sales or purchase orders (Needs to be turned on)
- Sales or purchase quotes (Needs to be turned on)
Add an Inventory or Service Item Record
Let us take a look at how to create an inventory or Service Item:
To Create an Inventory Item:
- Start by creating a new inventory item record.
- Go to the right side of the window,
- Go to the Type section,
- Click select Inventory.
- Go to the Item Number box,
- Now enter a reference number
- This should be up to 52 characters for the inventory item.
- In the Description box, type in a brief description of the item. This description will accompany the item number in all forms and transactions.
- If you have set up categories, click select a category from the list.
- Click each tab on the window and fill in the details:
- Serial Numbers
- Additional Info
- Detailed Description
- In case you no longer buy or sell this item, select the Inactive Item check box at the bottom of the window to make it inactive.
- Go to the File menu
- Select Save
To Remove an Item from the Inventory and Service Records
Before you go on with this procedure, you need to review the impact of removing an inventory or service record.
Before you can perform this task
- For an inventory item:
- the stock on hand must be zero (0)
- the asset value must be zero (0)
- If you are using Sage 50 Pro Accounting or Sage 50 Premium Accounting, clear the inventory tracking data.
- Items must be cleared from all time slips, bills of materials, and sales and purchase orders.
- You must have permission to delete inventory items.
To Remove an Item from the Inventory or Service Records:
- Go to the Home window,
- Now click on Inventory & Services within the navigation pane.
- Go to the Tasks pane,
- Next, right-click the Inventory & Services icon
- Click select Remove Inventory & Services from the menu.
- Finally, Select an item from the list and click OK.
Turn On or Off Multiple Locations for Inventory Items
Before you can perform this procedure you need to:
Switch to Multi-User Mode
To do this you will need to:
- Go to the Home window within the File menu,
- Select Switch to Multi-User Mode.
- Click Yes
To Switch to Single-User Mode
To do this you will have to:
- Go to the Home window within the File menu
- Select Switch to Single-User Mode.
- In case the other users are working in the company data, a window is launched to display the users who are currently working within the company data.
- Click Close
Steps to Set up Multiple Locations for Inventory Items
- Go to the Home window,
- Go to the Setup menu
- Select Settings.
- Go to the left side of the window
- Cick Inventory & Services and then Locations.
- Next, Select the Use Multiple Locations for Inventory Items option.
- Finally, Click OK
Modify the Inventory & Services List Report
To modify you need to:
- Go to the Home window
- Now open the Report Centre
- Next, Select Inventory & Services and then Inventory & Service List
- Now Click Modify this report.
- Next, Select the Template you wish to use for the report.
- Next, Select Include inactive items.
- Now Select Include internal service activities.
- Customize the:
- Columns that appear in the report
- How your report is sorted
- Results using filters
- Printer settings for the report
- Fonts in the report
- Now, Save the report as a template within My Reports.
- Finally, Click OK to display the report
Filter Items in the Inventory and Services Record
To do this you will need to:
- Launch an inventory or service item record.
- Go to the View menu
- Now select or clear Inventory Items, Service Items, or Activities
Inventory and Service Item Categories
One can easily group Inventory and service items into categories. This makes it easier to locate the related items when preparing transactions. Also, it is easier to organize within your reports. For example,
- Minimize the search time during invoicing: When entering a sales invoice, the user may want to add an item from a list of 4200 entries within the database. By grouping related items like Drywall for multiple sizes of drywall you keep in stock, one can quickly sort the inventory to view only those items within a certain category.
- To be able to quickly determine the stock levels for items that the user might need to reorder regularly: At month-end, you want to report on the order levels of a specific collection of items that need greater shipping lead times.
- To be able to update the prices for imported items: In case the freight costs are increasing, the user may want to increase the purchase price on items that incur freight charges. This way the users can quickly identify those items with categories, and update the prices automatically.
How many Items can Be Assigned to a Category?
An inventory and service item category can have many items or no items at all. However, an item can be assigned to only one category at a time. Sage 50 Accounting allows the user to put some or all of their inventory and service items into certain categories. One can also reassign items from one category to another when you want to update prices for specific items.
Also Read-: Sage 50 Running Slow While Inventory Search
So, there you have it people, these are some of the main aspects, features, and facts about the Inventory and Services in Sage 50. However, for more details, you can visit www.accountingadvice.co where some of the best content on the related topic is offered.
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Frequently Asked Questions(FAQs)
Is there an Inventory System included in Sage 50?
Yes, in case you need to build or assemble the products, you can simply transfer the items from the inventory to the job costing. Here, Sage 50 allows inventory costing using LIFO, FIFO, average cost, and specific cost. Hence, replenishing the inventory is done by purchasing the orders that have been issued to a certain supplier.
What is the main Functioning of the Inventory in Sage 50?
Sage 50 comprises various inventory reports and the Inventory & Services Navigation Center that the user can use for tracking and managing the inventory. The user can keep track of quantities of stock items so that they know how much the user has on hand to sell to their customers and when they need to order more
Why is it Important to use the Categories for Inventory and Service Items in Sage 50?
The Inventory and service items can be categorized into groups that make related items easier to locate when preparing transactions, as well as easier to organize within the reports.
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