According to the usual periodic system of inventory accounting, the inventory account balance stays the same in the entire accounting period. Not to mention, it should be updated after analyzing the inventory value, when the particular accounting period ends. This particular balance is mandatory to be updated either by editing or changing the entries or as a segment of the closing entry.
Sage 50 has integrated significant characteristics to make sure property inventory management and it can be a crucial help for businesses, especially the small and mid-sized enterprises. With this, businesses can monitor the inventory that is coming in and the inventory going out of business in the entire year.
In today’s article, we will talk about how to reverse an inventory adjustment in Sage 50. But before that, we need to learn how to create an Inventory Item record in Sage 50.
How to Make an Inventory Item Record in Sage 50?
Here are the steps to make an Inventory Item record in Sage 50:
- Open Sage 50, Go to the Home Window
- Press Inventory and Services
- Navigate to the Tasks Section
- Press right-click on the icon for Inventory and Services
- From the menu displaying on the screen, press Add Inventory Services
- Navigate to the Type section on the right side
- Press Inventory, Go to the Item Number box
- Enter a reference number for your particular inventory
- Now, Navigate to the Description box and enter a small description about the particular item
- In Sage 50 Premium Accounting, you can also choose a particular category from the list created already
- You can go to the Inventory and Services Record screen. In this window, you will be required to add relevant information in the sections provided below:
- Quantities
- Units
- Linked
- Statistics
- Taxes
- Vendors
- Serial Numbers (It is found in Sage 50 Accounting Premium only)
- Pricing
- Detailed Description
- Build (Found in Sage 50 Accounting Premium only)
- Extra Information
- If you do not want to sell or buy any specific item, you need to check the box for Inactive Item that is available.
- Go to the File menu.
- Choose Save to finish.
What is the Cause to Void or Reverse an Inventory Adjustment?
The reason to void or reverse an inventory adjustment is that the system is not designed to enable you to see up, void, or adjust an inventory transfer entry or inventory adjustment in the same way which can be done via invoice.
How to Void or Reverse an Inventory Adjustment in Sage 50?
The steps mentioned below will help you to void or reverse an Inventory Adjustment in Sage 50:
Scenario 1: When you Wish to Look up the Particular Transaction
- It is possible to look up the journal entry in the particular Journal Entry Report/Transaction Detail to witness the overall changes in the General Ledger. If you wish to see the edits in the General Ledger, navigate to Reports. Now go to Journal Entries/Transaction Detail and you will witness a specific entry posted.
- You can also go to the Reports, Inventory, and Transactions service section and after that navigate to Inventory Transaction Report. Now you will witness the changes in the quantity and value of the particular items that are adjusted with the specific entry. You can also mention the date and type of the transactions displayed during Transfers or Adjustments.
Scenario 2: When you Wish to Adjust or Void the Entry
- You will require to reverse the actual entry by posting one more inventory adjustment with opposite values and quantities. You will witness these values in the Reports section states in the last section.
- If required, Another inventory adjustment can be posted together with the changes required.
Conclusion
We hope that the informative steps provided above have given you a decent idea about how to reverse or void an Inventory Adjustment in Sage 50. We have mentioned all the details concerning inventory adjustment in a detailed manner. Hence, it is imperative that you go through the steps slowly.
However, It is quite likely that some of you will face issues in executing the processes mentioned above. In such a scenario, we recommend you to get in touch with our team of Sage 50 experts. Our experts are skilled in Sage 50 and its applications. They have expertise in handling issues concerning Sage 50 software.
Consult Sage 50 Accounting Experts
Get help in resolving your software issues, auditing your company files, automating payroll, filing taxes online, and much more. Our Sage 50 accounting experts are here to help you with everything related to bookkeeping, accounting, payroll, and tax filing. We’re available round the clock, so get in touch whenever you need help.
Frequently Asked Questions
What is Sage Inventory Advisor?
The Sage Inventory Advisor is a highly-secured subscription device that is completely cloud-based. It assists you to cut down extra inventory, stock-outs, and working capital. It is easy to integrate and not expensive at all. You can link it directly to Sage 100 cloud, Sage X3, and Sage 300.
Is Inventory Management Present in Sage 50?
Yes. A web-based inventory management is present in Sage 50. With this, it is possible to monitor and handle the inventory in real-time, thanks to the Sage Inventory Management module. This module has a list of features together with hassle-free facilities to incorporate with Sage 50.
What do You Mean by Service Item on Sage?
The non-physical items that you purchase and sell are service items. Take for instance, a computer hardware repair business that may have stock and non-stock products in Sage to monitor the hardware items. They can also add service items for other needs like software upgrades or removal of viruses.
What is Inventory Adjustment?
In simple terms, inventory adjustment is an addition or subtraction of the inventory of an enterprise to elaborate broken products, theft, loss, other errors, etc. Often companies acknowledge these changes during periodic accounting entries or annual inventory counts.
Inventory adjustments can also be done from different other areas apart from Sales, like:
• Damage, like wrecked products
• Waste, like products that crossed the expiry date
• Internal usage, like products utilized by the company
Luke uses his passion for accounting and software to provide tips and tricks related to bookkeeping, accounting, payroll and finance in general. Apart from accounting, he loves to watch TV shows including Friends, Stranger Things, etc.