Sage 100 How to Use the Negative Tier Report in Inventory Management

Description

How to use the Negative Tier Report in Inventory Management

“I am unable to adjust a negative tier for a Lot/Serial valuation item.”

“The Negative Tier Adjustment entry files are empty.”

Cause

You can issue or sell an item, even if there is not enough quantity on hand. An item using the LIFO or FIFO valuation method results in a negative cost tier. Print the Inventory Negative Tier Report to list tiers with negative quantities. Cost tiers with negative quantities distort the true inventory cost as new items are received at different unit costs

Use Inventory Negative Tier Report to alert you to any LIFO, FIFO, Lot, or Serial inventory items that have a negative quantity in a cost tier. Negative cost tiers are created when a LIFO, FIFO, Lot, or Serial item is over-distributed (the quantity on hand for the item is a negative number). To ensure that proper costing values are used for the item, it is necessary to adjust the negative quantities against other cost tiers (receipts, lot numbers, or serial numbers) that contain a positive quantity.

Resolution

Negative Tier Report identifies over distribution tiers that need to be resolved for items valued at LIFO, FIFO, Lot or Serial. Over distribution tiers are the result of processing sales or issues prior to processing receipts. These tiers should be reconciled prior to Period End Processing as their existence can cause unexpected results in Period End reporting. The existence of over distribution tiers can also result in incorrect costs being assigned to sales or issue transactions.

Proceed with the following steps:

1. Open Inventory Management, Period End, Inventory Negative Tier Report.
2. Click the Valuation to Print boxes LIFO/FIFO tiers or Lot/Serial tiers. For Lot/Serial valuation methods this selection is for reporting only. See item 8 below.
3.  Select the desired Warehouse code.
4.  Click Print the Negative Tier Report.
5. Open Inventory Management, Main, Inventory Transaction Entry . and enter the necessary transactions to transfer or adjust the quantity in the warehouse to create a positive tier if needed.
   • In Transaction Entry, Select Transaction Type Adjust.
   • Next Entry Number.
   • Verify the Date to be used.
   • Warehouse.
   • Next Entry Number.
   • Verify the Transaction Date.
   • Comment if wanted.
   • Go to Lines Tab.
   • Type the Item Code to be adjusted and a Positive Quantity in the Quantity Field. (if your tier has a -1 quantity on the report, type in a 1 for the quantity in this Quantity field) You may have to distribute the item to the overdist tier.
   • Print and Post.
   • The item will no longer be on the Negative Tier Report.
6. For Lot/Serial tiers, an Inventory Transaction Entry is needed to pull the quantity from the appropriate Lot/Serial number and add it to the negative Lot/Serial number. The Inventory Negative Tier Adjustment cannot determine the correct tier that should have been used.
7. For FIFO/LIFO tiers, open Inventory Management, Period End, Inventory Negative Tier Adjustment to clear the negative tiers for FIFO/LIFO items.
8. Run the Inventory Negative Tier Report again to verify that no negative tiers remain.

Support

If necessary, seek the assistance of Acute Data Systems to help provide assistance with this process.