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The CBA Blog brings you tips, tricks, updates and general information for users of Peachtree & Sage 50 Accounting Software.

The FEAR of the End of the Year Physical Inventory!

10/28/2014

As a business owner, executive or manager I�m sure the end of the year physical inventory is NOT something you look forward to because not only is it disruptive to your operations but the results can often times turn treats into tricks!

Why? Because companies who don�t keep an accurate inventory throughout the year are often viewing Income Statements that reflect nice gross margins until the results of the physical inventory are posted. I hope you�re the exception but it seems like companies almost never do an inventory count and find out they have more than what was stated on their balance sheet.

My theory on why this happens goes like this � if there�s a job, project or monthly financial report that shows poor gross margin results it gets everyone�s attention and someone is assigned to find the root cause which may be that too much material cost was posted to the suspect job, project or cost of sales for the month and it is identified and corrected. On the other hand, if the gross margins on the job, project or monthly financials look good (often even better than expected) everyone pats each other on the back for a job well done and they move on without the same research into the root cause as to why they did so well. Management by exception, as it�s often referred to, tends to focus on �problems� or �negatives� within the operations and therefore results that look positive throughout the year may not be exposed until the YEAR END PHYSICAL COUNT! During the count it�s most often found that the actual on hand quantities for many inventory items come up short when compared to what�s been being reported on the financials throughout the year and that difference then moves from the balance sheet to the cost of sales in most cases. I�ve seen cases where this adjustment (10's or 100's of thousands of dollars) has turned what was thought to be a profitable year into a loss. For me personally, the only thing worse than losing money is first thinking you were "in the money" and then later finding out you weren�t!

What causes these shortages? Some of the most common causes are the following:

1. Vendor short shipments � more material is being received into the inventory system than what�s physically received

2. Inaccurate bills of material (BOM�s) � more material is being physically consumed than what�s being relieved from the inventory system

3. Yield loss that�s not recorded or built into the original BOM�s

4. Set-up materials that are used aren�t accounted for

5. Quality control requirements aren�t accounted for

6. Samples sent to customers or used at trade shows aren�t accounted for

7. Scrap isn�t reported and accounted for

8. R&D or engineering projects consume materials that aren�t accounted for

9. Items with an expired shelf life haven�t been removed from inventory

10. Not establishing unique part numbers for each stage of material processing � an example is a partial box, a sheet or roll that�s been partially used or coated and uncoated products under the same part number

Don�t fear your year end physical inventory � make accurate inventory a year round process that is managed and controlled on a regular basis and avoid the surprises we all dread!

By Tim Hambsch

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Sage 50 inventory

Sage 50 accurate inventory

Sage 50 2015.2 - Issues with Update Installation

10/23/2014

An issue has been identified with the Sage 50�U.S. 2015 Edition update causing it not to install correctly. If you�re able to install this update, no action is needed. In case the update fails to install or prompts you to install later, please follow these instructions:

Browse to the company data location.
Double-click the Updates folder.
Rename the PTXA2015.2 file to OldPTXA2015.2.
Rename OnlineUpdate.log to OldOnlineUpdate.log.
Rename OUPAW22.xml to OldOUPAW22.xml.
Reopen Sage 50.
Click on Services, Check for Updates, Check Now.
Download the PTXA2015.2n update.
Close Sage 50 and follow the onscreen instructions to install the latest update.

If you have questions, please call us at 480.945.4455 or 1.800.339.8224.

By Tim Hambsch

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Sage 50 2015 update won

T install

Problems with sage 50 2015 update

Sage 50 20152 update

FREE Sage 50 Intelligence Training Webinar: Standard Inventory Analysis Report

10/17/2014

Make inventory management less complex and easier to handle with the click of a few buttons! Determine item overhead, quantities on hand, sold, purchased and required. Learn how to quickly customize reports to filter out item types, locations and top categories all using the Sage 50 state of the art inventory analysis report.

Register Here for this free Sage 50 Business Intelligence webcast on Friday, October 24, 2014 at 1pm Central Daylight time.

Do you have reporting needs and haven't explored the Sage 50 Intelligence reporting tool? Contact us to coordinate a 15 minute free introductory demo with one of our Sage 50 Certified Consultants.

Take a look at some of the customized Sage 50 Intelligence reports we've done for Sage 50 users!

By Tim Hambsch

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Sage 50 quantum reporting

Inventory reporting in Sage 50

Sage 50 inventory management

How Do I Enter a Credit Memo in Sage 50?

10/16/2014

1. From the Tasks menu, select Credit Memos.

2. Enter or select the customer ID.

3. In the Credit # field, enter the ID that you want to apply to the credit memo.

Note: You may want to connect the application amount to the credit memo. For example, if this credit memo is based on an existing invoice no. 106, you may want to type 106-C to indicate that the credit memo is applied to the invoice.

4. Enter the date of the credit memo if it is different from the displayed credit date.

5. Enter the due date of the credit memo if it is different from the displayed due date.

6. Do one of the following:

If the credit memo is to be applied to an existing invoice for the customer, on the Apply to Invoice # tab, use the drop-down list to select the appropriate invoice. When line-item information for the invoice appears, find the item or items to be returned, and in the Returned column enter the quantity. Sage 50 will automatically restore this quantity to inventory.

If the credit memo is to be applied to a sale for which there is no existing invoice, on the Apply to Sales tab, enter line-item information for the item or items to be returned or credited, including quantity. Sage 50 will automatically restore this quantity to inventory.

If the line item contains serialized inventory, you will need to select serial numbers for the item(s). Select the line item with the serialized inventory item, then select the Serial No button to enter or select serial numbers. The Serial Number Selection window appears. Select the serial numbers you need and select OK when you're finished to return to the Credit Memos window. However, if the Credit Memo has more than one line item that contains serialized inventory, you can select the OK/Next button to save the current entry and move to the next serialized item.

6. If you need to adjust the amount of retainage for the job, select the Withhold Retainage tab and either verify that the amountcalculated automatically is correct or enter a different amount of retainage for any affected jobs. If you select an invoice from the Apply to Invoice tab, Sage 50 will automatically default the information on the Withhold Retainage tab to the values on the original invoice selected. If you enter credits on the Apply to Sales tab, Sage 50 will use defaults from the Job record and Job Defaults for the GL Account number and retainage percentage.

7. If you want to print the credit memo, we recommend that you print it at this time and not from the Select a Report or Form window. To print the credit memo, select the Print button.

8. When finished, select Save. Note: In some cases (for example, when payment is not received at the time the invoice is entered or when the sale is not invoiced), you will need to issue a refund check to your customer.

By Tim Hambsch

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Credit memo

Sage 50

Credit memo transaction in Sage 50

How to Process a Customer Refund in Sage 50

10/15/2014

There will be times when you need to refund customers some of the money they paid you for products or services. Below are the steps to correctly process a refund in Sage 50.

1. Enter a credit memo for the item being returned or the amount that you are removing from the customer's balance.

2. Use the Payments window to enter and print the refund check for the customer.

3. Reconcile the credit memo and the check on a receipt.

What do you want to do next?

Enter a cash sale

Read the receive money overview

Print a Refund Check for a Customer

Sometimes, you will need to issue a refund check to cover a customer credit. This would happen, for example, if you enter a customer credit memo for a sale on which payment was not received at the time of invoicing. It would also be true for customer credits on sales without invoice. To print a refund check, do the following:

1. From the Tasks menu, select Payments.

2. Select Customer that you want to pay.

3. Go to the line-item grid, and in the Description field, enter a reason or reference for the refund.

4. In the Amount field, enter the amount of the refund.

5. Select the Print button.

By Tim Hambsch

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Process a refund in Sage 50

Refund transaction in Sage 50

Refund customer money

How to correctly process a customer refund

Sage 50 Accounting Software

10/9/2014

If you are a small business owner or you�re thinking of starting one, CBA offers Sage 50 accounting systems specifically designed for small and mid-sized businesses.

Sage 50 has the features and tools that will help you streamline your day-to-day operations, manage growth, cash flow, and costs, keep you tax compliant, and much more. This accurate, easy-to-use accounting program will help you get your information faster and simplify tasks so you can get the right work done.

Please download a 30-day FREE Sage 50 online trial version to get started. If you would like to speak with a Sage 50 consultant to address your business specific questions or schedule a demo to see the software live please call 1.800.334.8229 or EMAIL us now! We also have video tutorials for new Sage 50 users to assist you with familiarizing yourself with the software.

Through October 30th, CBA is offering Sage 50 discounts off our published website pricing...just contact us to find out the additional Sage 50 promotional pricing!

All new Sage 50 customers also receive 1 hour of FREE Sage 50 Business Intelligence training with a Certified Sage 50 Consultant. Sage 50 Business Intelligence is an Excel-based comprehensive reporting solution that gives you access to all your business information in one centralized location.

To learn more please read why Sage 50 Accounting software is the best your business can buy!

By Tim Hambsch

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Sage 50 free training

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