Corrections of Sales COGS and Inventory after Purchase Invoice correction.

Question

Hi - I have this scenario: 
 Apr20/15 Purchases entered as 36 each at 5.78/ea - it should have been 3600 each at .0578/ea 
 Sales between Apr20/15 and May11/15 shows - as an example - 100 ea at .15/ea and Inv/COGS at 5.78/ea (there are 19 sales invoices affected) 
 The April20/15 Purchase invoice was corrected on May11/15 to read as 3600 ea at .0578/ea and invoice date was kept at Apr20/15, and sales since May11/15 are now showing the correct Inv/COGS costs as .0578/ea 
 Doing an autoadjust to an Apr23/15 Sales invoice by deleting the qty of this item and re-entering the qty, then positng it did not make a different in the Inv/COGS amount - it remained the same overstated amounts. 
 If I reversed the same sales invoice and re-entered it exactly the same the Inv/COGS still did not change to correct amount. 
 Why? and what can I do to correct this? The correction I did shows at bottom of clipping below. We are using FIFO for inventory.

RandyW · Accepted Answer

JE 7161 was automatically created to correct the inventory value on hand, because the past dozen or so sales invoices had been costed at 100X the cost. 
 Invoice 55947 was costed at $0.0606 each 
 Invoice 22979 was costed at $0.0606 each. 
 After invoice 405799 was posted as qty 36 at $5.783 each , instead of qty 3600 at $0.05783 each, and since the quantity on hand was still negative, 
 Sage 50 has updated the per-item cost in the oldest cost pool, as being $5.783 each. 
 The next.... let me count... 2203? were costed at $5.783 each, so at $12,722.60 instead of ($127.23?) 
 Invoices from 56912 onward have a more correct-looking cost of 5 cents instead of five dollars each. 
 So the inventory wasn't messed up by $~12.8 K, rather it was corrected by that much. 
 Sage 50 (Canadian) has no facility for warning on margin percentage, and the item cost is utterly hidden from the sales invoice entry person. When an error occurs, the data suffers a sort of 'cone of destruction' spreading out from the mistake. 
 But, consider the above situation without allowing negative inventory : 
 Q. Hey, didn't we just get a shipload of those? I'm trying to bill 100 but the computer says it's more than we have on hand?. 
 A. That's because you entered 36 instead of 3600 yesterday. 
 Problems are caught before they're giant messes at year end, and there's a few dozen wrong invoices, or assembly costs. 
 
 Whether Negative Inventory is allowed, or not, it's best to check the Inventory Summary report occasionally: 
 (the 'Cost' in this screen shot is Average Cost, the 'Price' is 'Regular Price' (can't be changed In the report) The Margin % is at Regular Price. 
 
 The Margin column in this report may not be available in all Editions of Sage 50. The above screenshot is from Sage 50 Quantum 2015.1

Sage 50 Canada

Corrections of Sales COGS and Inventory after Purchase Invoice correction.

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