Sales Order - Invoices - Inventory and Price Increases

Question

8/1/16 - Widget A Inventory is 50 and the cost is $5.00 
 8/15/16 - We receive more inventory of Widget A (100ea.) and the cost went to $5.25 
 Question 1: On 8/1/16 we put in a Customer Sales Order for 50ea. Widget A, we invoice this order on 8/20/16...will the price of this item in Sage 50 come up as $5.00 or $5.25? 
 Question 2: If this same order was put in for 75ea. Widget A's...is Sage 50 smart enough to say 50ea. @ $5.00 and 25ea.@ $5.25? 
 Thanks, 
 Mitch

ubschris · Accepted Answer

This all depends on the cost method setup for the inventory item in Maintain Inventory Items. If it is FIFO, Question 1 and Question 2 answer is yes. If it is LIFO or Average, then you will get different costs.

Best Business Strategies · Answer

Sage 50 will track the cost of every item entered and the order entered. If you purchase 10 items. 5 at $5.00 and 5 at $5.25 and sell 6 items, it will cost out 5 at $5 and one at $5.25. 
 
Dates are very important to Sage 50.

Sage 50 US

Sales Order - Invoices - Inventory and Price Increases

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