Sage 100

Small company Sage 100 installation sends one product out for cutting.  This company is a distributor.  They send 100 out to be cut in 3 parts and 300 come back.  It costs $1 per unit for cutting so this process adds $100 to the cost of the product.  Currently, this company does not own the bill of material or the work order processing modules.  What should I recommend as the best process to use to track the movement of the items out of and back into the warehouse and to add the outside processing cost to the inventory?





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Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
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They could transfer the item to a different warehouse when it gets sent out and upon return adjust it out of that warehouse and back in to the main warehouse at the higher cost.  This would create a GL transaction controlled by the item product line that would have to be reconciled but it would get the inventory in at the new cost.  There isn't a clean way to do it without BOM or WO that I am aware of.

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Bernie Lehman
Lehman Wesley & Associates
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Thanks Bernie.  I like that idea.  Ideally, they would use BOM and WO but the volume of these transactions is low and the company is small so I was looking for an alternative.

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Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
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Original Message:
Sent: 01-31-2019 13:43
From: Bernie Lehman
Subject: Outside Processing

They could transfer the item to a different warehouse when it gets sent out and upon return adjust it out of that warehouse and back in to the main warehouse at the higher cost.  This would create a GL transaction controlled by the item product line that would have to be reconciled but it would get the inventory in at the new cost.  There isn't a clean way to do it without BOM or WO that I am aware of.

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Bernie Lehman
Lehman Wesley & Associates
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Sometimes the best thing to tell the client is to tell them to bite the bullet, spend some money up front and save more money over the long run........  Otherwise, they can IM transaction out of inventory when it goes out for processing and then IM transaction in using the new number at the higher cost.  When the cutting bill is processed, charge it to the adjustments account.  $100 value out (debit adjustments), $200 value in (credit adjustments).  $100 AP cutting invoice is debited to adjustments which zeros that account out.

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Jeff Schwenk
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
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Original Message:
Sent: 01-31-2019 14:02
From: Doug Higgs
Subject: Outside Processing

Thanks Bernie.  I like that idea.  Ideally, they would use BOM and WO but the volume of these transactions is low and the company is small so I was looking for an alternative.

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Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
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Original Message:
Sent: 01-31-2019 13:43
From: Bernie Lehman
Subject: Outside Processing

They could transfer the item to a different warehouse when it gets sent out and upon return adjust it out of that warehouse and back in to the main warehouse at the higher cost.  This would create a GL transaction controlled by the item product line that would have to be reconciled but it would get the inventory in at the new cost.  There isn't a clean way to do it without BOM or WO that I am aware of.

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Bernie Lehman
Lehman Wesley & Associates