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Old 05-09-2016, 11:05 AM
jebber jebber is offline
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Join Date: May 2016
Location: Denver, CO
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How to deplete raw product inventory

I was not able to find a post that applied so I try to post it again. We use Sage 50 Accounting, nothing special, and we are trying to figure out Units of measure.
Have tried to set up the units in Maintain Units sheet as well as tried the Multi-Pack option without any luck as we are not really reselling products.
We are a manufacturer and we buy ingredients in LBS or KG or Gallons, but we have set up, and sell assemblies which are using a few grams of these various ingredients.
How can I have my inventory of raw materials deplete when these assemblies are sold?? is it possible with the version of Sage 50 Accounting we have?
The assemblies work fine, are set up, inventoried and sold, no issue there, however we are trying to track the raw ingredients which make up these assemblies.
Our Accountant wants to change all Units of measure to GRAMS so they can be depleted from inventory however that is not feasible to use GRAMS on a Purchase Order. Any suggestion is appreciated
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Old 08-05-2016, 02:17 PM
Gabriel Gabriel is offline
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Join Date: Jun 2003
Location: Dallas
Posts: 8
How to deplete raw product inventory

We use two different options when the unit of sale does not match the unit of purchase. And BTW you have to use the same unit or your inventory and COG cost wont work.
Option 1. Buy in one unit, and convert to the sales unit when you receive inventory. Let's say we buy 100 kgs of one material that we sell in lbs. We receive it as 220 lbs. When we issue the PO we issue it in lbs, our unit of sale. We would place an order for 220 lbs, expecting to recceive 100 kgs of product. You want to use the unit that you most commonly use as the default unit. If you have many sales in grams and only one purchase in kgs, then keep the inventory in grams and do the conversion at purchase/receive iventory time.
Option 2. Receive and keep inventory in the unit you purchase. Enter a second item description for the "sales units". At the end of the month, or when you do inventories you do an inventory adjustment for the sold units. Example. You bought 1 lb of product that is going to be sold in grams. You receive one pound into inventory. Throughout the month you sell 45 grams of product. At the end of the month your inventory will show 1 lb and -45 grams in inventory. So adjust the gram inventory to zero and deduct 0.1 lbs (e.i 45 grams) from the pound inventory.
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