Hi there - I have been noticing margins dropping between Revenue and COGS on income stmts so I am familiarizing myself with how inventory works in Sage 50 2014 Quantum and also the various reports that can be generated. I do not input the purchase invoices as that is done by someone else. At the moment I have not update to July/14 PUP so still have Crystal Reports available. Inventory is based on FIFO.
In the inventory & Service sub-ledgers with all the various inventory items there is a tab called Pricing with has the usual
Regular, Preferred, Web Price, along with additional 20%, 25%, 30% and Cost. (I am not exactly sure how each price was generated - is this calculated using a desktop calculator and then manually inputted into each line?)
When material purchased initially the 'Cost' under the pricing tab was - for example - 28.15 per unit as Cost.
Then Regular was entered as 47.02, Preferred as 42.31 Web Price as 39.96, then all of 20%, 25%, and 30% as 27.61 each.
Now next time material purchased cost has increased to 32.21 and posted as that thru Acct Pay Purchase module using that same item number.
In looking at the Inventory and Services Transaction Report I can see the individual transactions of both the purchases and the sales along with the QTY in and out and the costs which is the total cost of qty purchased. I am noticing that the sales prices are as per the Pricing tab but the costs are as per the vendor invoices - which is how it should be. So in the initial purchase everything followed as per the Pricing tab but now that the cost of inventory item has increased the sales pricing remains the same but the cost is increased to new cost resulting in low margin.
My question is - when one is entering the purchase invoices then does one also have to look at each inventory item sub-ledger to see if cost has increased and if so then manually change each pricing listed in the Pricing tab? Or is there a better way?
My other question is - how can I get a report that shows the Cost list in the Pricing tab versus the cost on the last purchases made?
Thanks for any help one can give me.
