Sage 100

Not so urgent but would like some insight. I have a client that is buying and keeping inventory but then distribute for internal consumption. So many purchase orders (or individual items on the purchase order) would be best to go directly to expense. I did not find an enhancement. I have also considered leveraging Drop-Ship. This is a V2016 Premium. Any suggestions?

Material Requisition Issue Entry?

If the item code is always for internal consumption, assign it to an ""internal"" product line that every account except Purchase Clearing goes to the same expense account. Purchase Clearing account should go to Purchase clearing account. If they want to keep track of quantities, they can adjust or issue the items later w/o it effecting GL. If they don't want to keep track of quantities, they can do physical count transaction to zero out those items w/o it effecting GL. Use / items or * items for internal purchases. If sometimes product is inventory, sometimes not inventory and you know when placing the PO, have a second item code for internal item with an internal product line. If consumption is unknown at purchasing time, you can issue the item later thru inventory transaction --> issue, or issue thru PO's material req issue entry. The material issue screen in new version is nice looking and you do not need to enter a Material Req PO# first. Only the date on the header tab is required; PO# is not. This might be the best idea if they want to ""share"" an inventory item code sometimes to inventory and sometimes to expense.

Also, make sure they track any required use taxes.

Thank you. For the detail. Luckily I had tracked and considered the normal processing and really appreciate the detail Roberta. And the insight from Lou and Mark. It is good to know I am not overlooking a line flag that would facilitate this.

You can also change the Inventory account number on the lines of the PO to an expense account. If its always being expensed change it in Product Line Maintenance..

Add to your statement the disclaimer that (unlike SAP) it still hits the inventory subsidiary

For some reason this has stuck in my head all day. Maybe Sage is making me a pod person or something. It seems that if items are being bought for office use, the entire pathway is already accommodated in the PO system, including the use tax part of it. But if items already in stock are being relieved for internal use, it seems that you could enter a S/O invoice (skip the order entry step if you like). Create a customer for the internal use. If necessary, create a sales tax code for use tax and assign it to that customer record. When entering the lines, change the unit price to equal the cost and change the G/L cost account to an expense account, ergo, Office Supplies. This will create an entry to sales, A/R and Inventory. You want that inventory transaction but not the sales or A/R entries. To resolve that, I'm thinking you can then enter a dummy payment through Cash Receipts and apply it to the Sales account. You may have to create a dummy bank code to make that work. From a practical point of view, this is only workable if there are literally dozens of items, etc. to be relieved from inventory but theoretically, it could be workable.......

I think we are going to receive and then do an issue in inventory. The staff is accustom to a one step process but designating the PO line is to go directly to expense. I wanted to make sure I was not aware of some awesome solution. Thank you all foryour help.