About inventory

Note: This functionality is available only if you have the Inventory Add-On Module.

The Sage 100 Contractor inventory control system lets you keep track of your inventory flow from the time of receipt to the time of consumption. Inventory control helps track how much of a particular item you have in stock, where it is located, what quantities are committed to jobs, and even how many to reorder when stock is low.

If you have a variety of places where you store inventory, you can create inventory locations. From the moment you receive inventory, you can track where it is and who is responsible for it.

The value of your inventory is calculated using the valuation method that you designate in the 1-8 General Ledger Setup window. Sage 100 Contractor supports the following valuation methods:

• Weighted Average Cost
• LIFO
• FIFO

Note: We recommend that you work with your tax accountant and/or advisor to determine which valuation to use.

The inventory control system is integrated with the rest of Sage 100 Contractor. When you enter payable invoices, service receivables credits, or purchase order receipts, Sage 100 Contractor moves the parts into inventory—even individually serialized parts. In the Parts window, you can select a part and view how much stock is on hand, how much is available, and to which locations the stock has been assigned. When you create service invoices, Sage 100 Contractor automatically removes the parts from inventory.

Additional activity that adds inventory includes:

• Voiding accounts payable credits.
• Entering service receivables credits.
• Voiding service receivables invoices.
• Additional activity that removes inventory includes:
• Entering accounts payable credits.
• Voiding accounts payable invoices.
• Voiding service receivables credits.

The 12-2 Inventory Allocation window provides an additional way to add and record inventory. You can enter any other inventory-related transactions, record the movement of stock among locations, the consumption of stock by your company, the loss of inventory, and the revaluation of stock.

Note: Inventory allocations always use the weighted average cost for items, regardless of the inventory valuation method specified for the general ledger. If you use the LIFO or FIFO valuation method for general ledger, you can print the General Ledger Cost Comparison report (using the 2-3 Income Statement menu) to view inventory variances created by allocations. For more information, see About inventory variance reconciliation..