Sage 100

Version 4.4 PU19 inventory valuation by period at 12/31/15 has about 40 items with 0 quantity, 0 cost, yet a negative extension amount. I have seen this before at other companies. I usually just fix it using DFDM or SSMS. Does anyone know what causes this? I was told to expect a call from the partner at their accounting firm on Monday to discuss. There are about 40 items with a total valuation of about $1500... whoopee! ..... on an inventory of $8M.

Have they run the negative tier adjustment? I've seen it where there is zero on hand but in two different tiers, i.e. OVERDIST then a receipt for a net zero quantity on hand but with different valuations, the extension is NOT zero.

I've seen transfers cause this, for no good reason. On some cleanups it took about 6 files to get it all clear. Have also seen postings to future dates (by mistake) cause similar issues. If you go through the transaction history you may see where a cost didn't line up as one would expect...

Good thought Therese. They supposedly run the negative tier adjustment report each month. They have a lot of product substitutions. If they are out of a product they will ship another sku. I suspect it has something to do with the negative tiers. I am going to try and nail it down this weekend.

Possible decimal precision??

Negative Tier does not work on Average valuation. I had the same a few monthes ago with Average items. There is a KB that says you need to adjust manually through transaction entry. Can't remember the exact details.

Here are the two articles I have on this. Client with average cost items in similar circumstance where the value of these were low and quantity of them wasn't high adjusted them back in at zero cost and them adjusted out with the extended cost. I investigated one of these items and it came into inventory with cost but was sold with no cost.

Thanks for the input. All items are FIFO valuation.

We ran into this exact problem after installing the PU 10 for version 2014. Sage tells me there was a bug in the program that did not show these negative numbers prior to the upgrade but they were there. The ""new"" PU update fixed that bug. Now my customer has hundreds of FIFO Items with zero quantity and negative extended amounts (many with just pennies) on their reports . The steps to fix are in Inventory Transaction Entry, you need to ADD a quantity of one (1) at zero cost then Update. Step two is to SUBTRACT the quantity of one (1) at the negative extension amount. Then update. The end result is you now have a zero quantity and zero amount. Continue with each bad entry.

Thanks Harold.

I have a client with this exact issue, but it gets weirder... the value (with 0 qty and 0 cost) is only on the ""by period"" report, not the regular Item Valuation Report. Many of the offending items are LOT cost valuation. If we go with the adjust one on and adjust it back off solution, how do we match the Lot number of the phantom value?

We have run into this a couple times recently. Both were because cost tiers (lots) were consumed to 0 QoH by IA transactions, with small $'s left behind in the tier due to rounding errors (from how Extension Amounts are calculated for Inventory Adjustment line items based on entered UnitCost, instead of grabbing the tier costs at time of posting).

@KevinMoyes - I came across this thread when searching for anyone with the same issue as yours where there are rounding issues during Inventory Adjustments. I have someone right now with the exact same issue but can't understand why the rounding is occurring, since there is only one FIFO tier being relieved and no two or more with a blended cost (for example) and the customer is not overriding the unit cost manually. Could you clarify what you meant by ""from how Extension Amounts are calculated for Inventory Adjustment line items based on entered UnitCost, instead of grabbing the tier costs at time of posting""? I'd like to get your thoughts if you had anything to add.

(The following is my understanding from experience, not looking through source code): An IA's extension amount for a line gets calculated by quantity * unit cost. If this amount is different than the tier's ExtensionAmt, then there is no system correction made during posting. For all other transaction types, when a tier is depleted, the transaction's extension amount is set to match the tier's remaining value during posting. The automatic unit cost set in the IA, can be rounded so that the calculated extension amount does not match the tier total, even without overriding the unit cost.

Kevin, thank you for your expertise and your time to respond to me. I get what you're saying now, and this is great info for me to test on their system. I appreciate it!

Looks like this cost issue might have been fixed by Sage in 2016.5 and 2017.2. Has this same issue really been going on since v4.4?? The article says.....Zero quantity cost tier exists with residual value after lot is adjusted to 00.00 through Transaction Adjustment entry. Rounding in IA is using 4 decimal rounded unit cost including allocated cost. PO ROG is using unrounded (full to 6 decimal)unit cost. Article ID 79706.

Thanks, Jenny. That sounds promising!! And yes, it was my understanding that it started happening when Inventory was upgraded in 4.40.