Inventory quantities can change for many reasons beyond standard purchasing and sales processes. You may need to record inventory received or sold outside of the Purchase Order or Sales Order modules, transfer items between warehouses, account for spoiled inventory, or correct an inaccurate quantity on hand.

Sage 100 Inventory Transaction Entry provides a central place to record these changes and keep inventory records accurate. This month’s tip walks through the different transaction types available and the key steps for entering and posting an inventory transaction.

Tip summary: Use Inventory Transaction Entry to update inventory

Inventory Transaction Entry in Sage 100 can be used for several common inventory activities:

• Sales: Record inventory going out when the Sales Order module is not being used.
• Issues: Record inventory leaving stock for non-sale purposes, such as raw materials for internal use.
• Receipts: Record inventory coming in when the Purchase Order module is not being used.
• Transfers: Move inventory from one warehouse to another.
• Adjustments: Increase or decrease quantities on hand due to spoilage, corrections, or other inventory changes. Adjustments can also be used to modify the cost of inventory on hand.

Choosing the correct transaction type and posting date helps ensure inventory quantities and related financial records are updated appropriately.

Tip steps: How to enter an inventory transaction in Sage 100

Step 1: Start a new transaction

Navigate to:

Inventory Management > Main > Transaction Entry

If Batch Entry is enabled, select an existing batch or create a new one.

Select the appropriate Transaction Type and generate the next available entry number. If you are editing an unposted transaction, use the lookup to find the existing entry.

For transfers, Sage 100 will also display Transfer From Warehouse and Transfer To Warehouse fields.

Step 2: Review the transaction information

Before entering inventory items:

• Confirm the Transaction Date. This determines when the transaction affects inventory.
• Verify the Default Warehouse.
• Add a comment if additional context is helpful.

Then select the Lines tab.

Step 3: Enter the inventory items and quantities

Look up or enter the inventory item code and specify the quantity.

Use the following guidelines:

• Sale: Enter a positive quantity.
• Issue: Enter a positive quantity.
• Receipt: Enter a positive quantity.
• Transfer: Enter a positive quantity.
• Adjustment to increase quantity on hand: Enter a positive quantity.
• Adjustment to decrease quantity on hand: Enter a negative quantity.

Important: A negative adjustment cannot exceed the quantity currently on hand. Inventory Transaction Entry cannot be used to reduce the quantity on hand below zero.

Repeat this process for each item included in the transaction.

Step 4: Select cost tiers, lots, or serial numbers when required

If an item uses a LIFO, FIFO, Lot, or Serial valuation method, Sage 100 may require you to distribute the adjustment to the appropriate cost tier, lot, or serial number.

Use the lookup to select the appropriate tier. If the adjustment exceeds the quantity available within one tier, create additional lines for the same item and distribute the adjustment across the necessary tiers.

The full adjustment quantity must be distributed across the appropriate cost tiers before the transaction can be saved.

Once all items are entered and reviewed, click Accept.

Step 5: Review and post the transaction

Select the printer icon to begin the posting process.

1. Confirm the Inventory Management Posting Date. This determines when the transaction affects the General Ledger.
2. Print or preview the transaction report.
3. Review the report carefully for accuracy.
4. If everything is correct, select Yes when prompted to update Inventory Management.
5. Print the Daily Transaction Register when prompted.

If you identify an error during your review, do not update the transaction. Return to Transaction Entry, make the necessary corrections, and review it again before posting.

Once the update is complete, the inventory quantities on hand will reflect the transaction.

Why this tip matters

Accurate inventory quantities are essential for purchasing, fulfillment, costing, and financial reporting. Inventory Transaction Entry gives Sage 100 users a controlled way to record transfers, receipts, sales, and adjustments so the system reflects what is actually happening with inventory.

If you need help managing inventory transactions, reviewing your inventory processes, or getting more value from Sage 100, Rand Group’s Sage 100 experts are here to help. Contact our team today, and be sure to return next month for another Sage 100 Tip of the Month.