Negative Tier

Posted By SageofTexas over 8 years ago

Hello All ,

I have a problem maybe someone can assist :

) We post SO to product that has no PO in yet . PO is delayed to paperwork. This causes a negative qty. After the PO is posted the qty is 0 however the item is still in Negative Tier report.

2) Issues with component item when a BI is issued . The component cost was a negative . Therefore the unit cost of finished good is negative. Only one BR was found after a production search . However this negative unit cost is assigned to 8200 finished items. This caused a huge Gross profit .

We are on FIFO .

Please Help me I am pulling out my hair on ways to solve some of my ideas !!!

1)Wait to post SO and give customer non sage invoice .

2) Put LOT numbers to FIFO items to prevent Un received items that have not been shipped.

What do you think?

Thanks

0 BigLouie over 8 years ago

Where in Texas are you? For item #1 just run the Negative Tier Adjustment in Inventory Period End and that will take care of it. On item #2 this is another case where Sage defies the laws of math. Cost should never go negative. In the natural world of math if you multiply a negative time a negative you get a positive result but in the Sage world if you have a negative quantity you also have a negative cost and when you multiple them you get a negative result which violates a basic law of math. If you have a negative quantity on hand the cost should still be positive, never negative, but not in the Sage world, you get a negative cost. Which is how you end up with 8200 finished items with a negative unit cost. You have to adjust out and then adjust back with in a positive cost.
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0 SageofTexas over 8 years ago in reply to BigLouie

I am in the Houston area.

1) I ran the Negative Teir it looks like it did the trick
2) I will adjust out the bad BR

Thanks for the Tips!

I never knew I was living in the Sage Twilight World where two negatives are still negative !
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0 KBatch over 8 years ago in reply to SageofTexas

If it is common to sell before receiving stock, Average Cost valuation would be better than LIFO or FIFO. An average cost item will automatically create negative quantity adjustments to allow for the difference between the "estimated" sale cost and the "actual" receipt cost. When LIFO/FIFO items are used, the Negative Tier Adjustment would need to be run after each receipt to balance the estimated vs. actual costs. If this is not run, it opens the door for the possibility of negative average costs.
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0 Kevin M over 8 years ago in reply to KBatch

It's my understanding that Average Cost is an incredibly bad choice in Sage 100, when dealing with sales before receipts (due to wacky calculations for COGS). From a purely system standpoint, Standard may be best when it comes to handling negative quantity on hand.
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0 BigLouie over 8 years ago in reply to KBatch

Heaven help you if you ever go negative with Average Cost.
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0 BigLouie over 8 years ago in reply to SageofTexas

Hey I'm in Houston also!
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