Welcome to our knowledgebase article on managing inventory workflow in construction projects using Sage Intact Construction's inventory module. This guide will walk you through the process of issuing inventory items to projects and returning any unused stock, ensuring efficient stock management and accurate accounting.
Understanding the Inventory Workflow Process
The inventory workflow process in construction involves two key transactions: issuing items to a job and returning items from a job. It is crucial to have your transaction definitions set up correctly to facilitate this workflow.
Setting Up Transaction Definitions
To begin, navigate to the transaction definitions within Sage Intact and ensure you have 'Issue to Job' and 'Job Return' defined with the correct workflow settings. These definitions should include unique numbering IDs for tracking and the appropriate general ledger entries for when inventory is issued or returned.
Issuing Inventory to Projects
When issuing inventory, the system should subtract the quantity and value from the on-hand inventory and post the corresponding general ledger entry. This typically involves a debit to the construction cost of sales or work-in-progress (WIP) account and a credit to the inventory on hand.
Returning Inventory from Projects
If items are not used, they can be returned to stock through the 'Job Return' transaction. This process involves reversing the general ledger entries made during the issuance, crediting the cost of sales, and debiting the inventory account to reflect the returned items.
Executing the Workflow in Sage Intact
Within the Sage Intact environment, you will perform the following steps to manage your inventory for a construction project:
- Create a new 'Issue to Job' transaction, selecting the appropriate items, warehouse, and project details.
- Post the transaction to record the issuance of items to the project and adjust inventory levels.
- Should items need to be returned, convert the 'Issue to Job' transaction into a 'Job Return' or create a new 'Job Return' transaction.
- Post the 'Job Return' transaction to update the general ledger and project costs accordingly.
Visualizing the Workflow
. A diagram here would illustrate the step-by-step process of issuing and returning inventory items in a construction project setting.
Conclusion and Next Steps
In conclusion, managing inventory workflow with Sage Intact Construction is a straightforward process that ensures accurate tracking and accounting for items issued and returned in construction projects. By following the steps outlined in this article, you can maintain control over your stock and ensure project costs are accurately reflected.