Sage 100

I have a client that is getting random postings to Inventory (DR) and Sales Discounts (CR). The amounts are usually small, less than a dollar. I have checked Product Line Maintenance and all Misc Item GL Accounts to look for the Sales Discount account it is using which jnone of them are. I can only locate the account in AR Division Maint. where I would expect it to be. I have looked at all the invoices from a particular Sales Journal that generated one of these entries and no invoices had any amounts in the discounts field (on totals tab). What else triggers a posting to Sales Discounts on a Sales Journal? They are on 4.4.0.8 (checking that now)

Did you check Sales Order Options? Miscellaneous charge maintenance?

I did check misc items. Didn't check SO Options. I am having them turn on post salers journals in detail so I can see the individual entries (I am looking at summarized journals and the waters are muddy) Maybe next time it happens I can see from whence it came.

So this issue seems to have something to do with the way they invoice items. They have inventory items that are really service and should be using misc charg3es codes for, and so the quantity on hand in inventory is always negative. What they will do is invoice using one of these service items (1 @ $170) and then immedial;ty reverse it out (-1 @ $170) to show the client that they are getting the service for free. Whenever they do that there is a Dr to Inventory and a Cr to Discounts Allowed (from div maint) with a strange amount (like .19 or similar small amount) that I can't tie to anything. The GL posting comment says ""... NEG B"" at the end. Anyone ever run into this?

No, but I wonder if they uncheck the ""discounts"" flag on the line if it still posts anything? I agree that this should be handled with a misc. item/charge.

I am going to have to bring their data in house for further testing. I can try the discounts flag. The weird thing is that it is posting to Inventory and Discounts, if it was discount related wouldn't the entrires be to discounts and sales, not inventory? I can't think of any scenario where you would post to inventory and discounts.

What's the valuation method of these items? Is it a negative balance adjustment for (I think!) average cost items?? If you look in the item's transaction history, are there transactions for these odd amounts, such as IZ (I think??)? Sorry, not very helpful, but I know there are odd negative tier adjustments different from the normal negative tier adjustments. Now that I've totally confused you, Peace!!!

Yes, they are average and I think you are on to something. How do negative balance adjustments work? I downloaded a copy of their system last night and will check for IZ entries.

Here's somewhat of an explanation: http://infosource.sagesoftwareonline.com/sw_attach/kdb.asp?isresolutionconceptid=822

The article talks about creating adjustments after an item has been sold and then received or put in through production entry and the cost is different, that makes sense. What this client is seeing is adjustments in the sales journal!? and to the discounts account in ar div maint!? very strange. I will have a closer look at their system today and try updating them to current version.

I was able to confirm the issue is Negative Balance Adjustments. Not sure I understand the logic in selecting hte Discounts Allowed Account though!? After getting a copy of their data I could see SZ entries for small amounts in Item Maintenance. As it turns out ALL of their items are negative as they use Inventory for Sales only, they basically use it as Item list for part numbers and descriptions. They never receive anything, so everything is negative. They have also short circuited the gl accounts in product line maintenance to was the inventory/ cost of goods entries as well. I did find though that they can avoid the issue by not entering a negative quantity and instead use a negative unit price, looks a little different on the invoice but accomplishes the same goal, illustrating a no charge item to the client.

Would the cost adjustment issue go away if they used standard cost for these items?

From an accounting perspective, I would probably lean toward billing it out on the first line and then entering a second line as a negative misc charge code using a GL account that is a sales allowance so that these items could be tracked on the P/L.

@PhilMcIntosh it probably would, but they have gotten used to entering their cost in the standard cost field and use it for reference. The way MAS controls Standard Cost now would not allow them to change it willy nilly.

@JeffSchwenk I agree and did suggest that to them. It's one of those - they have been used to doing things one way and it always worked until ... (client speaking now) ""you installed that @#$#% update, now everyhting is different!"" LOL!

Must resist urge to punch client.........................

Don't you just love it when neither the customer nor the programmer will listen to you, but they'll both tell you its your fault?