Technology in Practice

In some legislations/geographies and for some products, our clients need to include sales tax in their prices within Sage X3. The “Price/Amount Type” flag determines if the prices of products (Sales Invoices) and amounts (Customer BP Invoices) are expressed excluding tax or including tax. This flag influences the price list search. Only those price lists defined in a mode or those accepting a price conversion will be taken into account. The document price/amount type excludes or includes tax depending on the type defined at the customer level. This flag allows you to include an item on the Sales Order and calculate tax, but the tax will not increase the sales price. Instead, it will retro-calculate the tax amount. Let’s see an example. In our case, the Sales Tax Code is called TAX, and it’s 10% of the item’s amount. We set up a customer with “include tax” on the Price/Amount type: The price entered or calculated (works for both) is $38.70 and includes an extra 10% as tax. The “amount before tax” is $35.18 ($38.70 / 1.1). For more information about tax included pricing in Sage X3, please contact us.

Sage Knowledgebase (Sage KB) just got a major redesign—complete with an updated interface and additional features. What’s New in Sage Knowledgebase? In addition to a cleaner look and easier navigation, the improved Sage KB now offers: Compliance with Web Content Accessibility Guidelines (WCAG) so content will be accessible to a wider range of customers and partners. Sortable search results by relevance, most helpful, or newest on top. Convenient voting buttons to help you provide article feedback and find the “most helpful” articles as rated by other users. Easy to use “answer wizards” to help you quickly find resolutions to the most frequently asked questions. Subscription options to get updates by email whenever articles are updated. Prominent “download” button on many product homepages for quick access to the latest version of your software. Bookmark Sage Support Resources today! We hope you’ll be just as excited about the upgrades to Sage KB as we are! Be sure to bookmark www.Sage.com/Resources today for quick access to Sage KB as well as all the ways you can take full advantage of everything your Sage X3 software can do for you. Note: Content for this blog post was originally posted on Sage City in Sage X3 Announcements, News, and Alerts by Terry Todd, November 20, 2020.

For years now, rumors have swirled around whether Sage will sunset Sage 500 ERP and when. Sage has stated that they are not sunsetting Sage 500 and that there will be “no forced migrations” from the product. However, the simple fact of the matter is, the future for Sage 500 will likely be determined by Microsoft, not Sage. THE IMPACT OF MICROSOFT VB 6.0 ON SAGE 500 Sage 500 (formerly called MAS 500) was built from the ground up using Microsoft SQL Server, Visual Basic 6.0 and Microsoft Office technology. Microsoft VB 6.0 was first released way back in 1991 and gets limited support from MS today. New applications are not being developed using VB 6.0, but Microsoft itself has many applications that rely on the code, so they are keeping it compatible with Windows releases—for now. Once this effort stops (currently slated for 2022), there will be no good viable path forward for Sage 500 ERP. WHAT DOES THIS MEAN FOR SAGE 500 CLIENTS RIGHT NOW? It means that while there is no immediate need to migrate off Sage 500, clients should be thinking about replacement options and considering migrating at their own pace. It also means if you want to stay on Sage 500 for the foreseeable future, we are here to support you. However, if you do so, we recommend that you upgrade to the latest version (currently v2021) to use the newer versions of SQL and Windows Server and other tools. WHAT YOU CAN EXPECT FROM NET AT WORK Net at Work has a large number of Sage 500 clients and we are here to support them for as long as they want to remain on Sage 500. And while we support Sage’s stance of ‘no forced migrations’, we also understand the importance of planning ahead. So, if you want to explore your migration options we are here to help. Over the past 6 years, we have helped dozens of clients find their next ERP solution. For those ready to explore options, we have created a process that allows us to better understand your currents needs.  Your company has grown and changed in the years since you implemented Sage 500. The review process will enable us to understand those changes and ensure your new ERP software will fit your current and future needs. For more information about migrating from Sage 500 to your next ERP, please view our recorded Sage 500 End User Meeting. To speak with a Sage 500 advisor about the future of Sage 500 and your options, please contact us. WRITTEN BY TOM DIETERLE Tom has been supporting Sage 500 clients since coming to Net at Work in 2005. He has over 25 years of experience been working with Sage products (ERP, CRM & HRMS) in areas of financial, distribution and manufacturing. Tom is responsible for establishing and building customer relationships and ensuring customers are satisfied with their Net at Work experience. He provides high-level technical support and works to resolve any customer dissatisfactions. He is the primary point of contact for his clients and connects customers with specific teams to address specific requests.

Periodically in Support, we receive queries on how the allocation or management rules could have been “violated” for a product. For example: product in “R” (rejected) status was issued even though setup does not authorize delivery of status “R” stock. How does this happen? This can happen if the user who performed the transaction is a Stock Administrator. The Stock Administrator is the only one who, when handling stocks, can ignore the constraints imposed by the combination of allocation and management rules for a given product. In this blog post, originally posted on Sage City Community by Pam Nightingale, September 30, 2020, we’ll explore the power of stock administrators and things to keep in mind when setting up stock users. How does someone become a Stock Administrator? Under Setup, Users, User Parameters, Chapter/ STO, Group / MIS, the STOADMIN Parameter value is set to “Yes” for their User Code. There are business reasons behind the establishment of allocation and management rules at each company. Occasionally, you may need to override them. However, you probably don’t want everyone to have the STOADMIN rights. Each organization must evaluate their business practices to determine who should be a Stock Administrator. You may decide to set up a special user login reserved for times when the Stock Administrator rights are needed. In one instance, we discovered that nearly all employees in the stock area had been set up as Stock Administrators. How could this have happened? The STOADMIN parameter also can be set at the folder level under Setup, General parameters, Parameter values. If it is defined as “Yes” at the folder level, users will automatically load with STOADMIN value equal to “Yes” when created. With this folder setting, you will have to manually change the STOADMIN value to “No” as each user is entered. Setting the STOADMIN to “No” at the folder level is safer. This forces a decision as to who is assigned Stock Administrator rights rather than risking it accidently happening. There are various ways to create users. If you aren’t doing this from scratch, be careful to select the appropriate function profile or copy a user with appropriate rights so as not to automatically make the user a Stock Administrator. If you utilize Set of values under Setup, Users, Users on the Parameters tab when creating users, verify the value for STOADMIN. This can be done via the Action icon on the Set of values tab for Chapter / Inventory, Group / MIS or by going to Setup, General parameters, Setup of values and selecting Chapter/ STO, Group/MIS. Hopefully this post will help when you are setting up stock users. Should you need more information about this post or have questions about any other Sage X3 issue, please contact us.

In this video we’ll go over year-end processing, 1099 processing and period end processing in Acumatica Cloud ERP and what changes are happening for 2021. Contact Us if you have any questions or would like more information about Acumatica features and enhancements. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }

How inventory & average cost valuation are managed, considering input pricing fluctuation or additional landed cost imposed following inventory receipt. Sage X3 maintains several methods to value inventory including Standard, FIFO, LIFO, Lot Average Unit and Average Unit Costs. Industries, such as Food & Beverage, with supply chains prone to fluctuating material and component costs or manufactured units indistinguishable from each other may benefit from an Average Unit Cost stock valuation. The operational measure, cost of goods sold, is updated continuously using Average Unit Cost and allows for accurate calculation of sales margin in these circumstances. Valuation methods are assignable by site and product in the Sage X3 application. Sage X3 Master Data Valuation methods for raw material & finished goods inventories are managed within Sage X3 by the product category, product, and product-site records. An organization may value a stocked part with the same method, like Average Unit Cost, across its sites or choose to maintain Standard Cost on Site A, while Average Unit Cost is observed on Site X. In this post, we will walk users through master data setup & transactional configuration to calculate an inventoried part’s Average Unit Cost, while referencing common system inquiries to visualize the evolution of cost across time. Purchase Order With Average Unit Cost established for part, RAW046, Organic Powdered Eggs, we issue a system Purchase Order from vendor NA055 for 100LB @ $1.50 per LB, to receive at manufacturing site NA021 (the quantity and price are highlighted). Purchase Receipt Warehouse personnel conduct a Purchase Receipt from NA055 PO, bringing 100 LBS of RAW046 into the system at $1.50 per LB for an order cost of $150. Prior to this receipt, the Average Unit Cost (AUC) for this raw material was $1.17/LB, stemming from a base quantity of 700 LBS and base value of $820 ($820/700 LBS = $1.1714/LB). This information is visible to users on the Product-Site Record Cost Tab. Average cost is always calculated during the receiving process. This receipt adds 100 units in quantity and $150 total to AUC base value, again, visible on the Product-Site Record Cost Tab. Purchase Invoice Transactionally, a Purchase Invoice is generated for the receipt at the PO purchase price – there is no impact on Average Unit Cost. Product-Site Record Cost Tab Checking the cost tab, a user will see the impact of the recent receipt, bumping the AUC from $1.1714 to $1.2125. The new base quantity is 800 LBS (700 + 100 from receipt) & new base value is $970 ($820 + $150 from receipt). Another Purchase Order Site NA021 places another Purchase Order with vendor NA055 for 100 LBS of RAW046, though price is now $1.75/LB. Warehouse personnel conduct a Purchase Receipt from NA055 PO, bringing 100 LBS of RAW046 into the system at $1.75 per LB for an order cost of $175. The same AUC calculation, taking the recent receipt order cost and adding to on-hand raw material units & base value, yields a new cost of $1.2722/LB. A Supplier Wrinkle Several days later vendor NA055 submits an invoice for $2.00/LB, not the $1.75/LB cost as received (pays to get that PO Acknowledgement)! Processing the Supplier Invoice with a different value than the cost received will, once posted, prompt a re-valuation of material AUC. Checking the Product-Site Cost Tab, a user will see the AUC of $1.30/LB, owing to the $0.25 difference in received versus invoiced price. Considering 100 LBS received, that is an additional cost of $25 for the order. Average Cost Evolution Inquiry As stock transactions are validated or posted the average cost is calculated and tracked in the system. To review the history of changes to an item’s Average Unit Cost a user may run the Average Cost Evolution Inquiry, found in menu path Stock > Inquiries > Movements (Average Cost Evol/Movement). Below is the average cost history of RAW046, considering two (2) receipts processed and Supplier Invoice booked at higher cost than received. Costs Incurred After Receipt Sage X3 will readily manage subsequent costs from the same or a new vendor, related to a purchase part’s receipt. In this case, a 3rd party freight provider billed site NA021 for $1000 for the most recent receipt of RAW046. A process known as “complementary invoicing” will pick up this additional cost and apply it to on-hand inventory on a pro-rata basis. Following successful posting of this complementary invoice, a user may check the Product-Site Record Cost Tab to view the impact to AUC. Average Cost Evolution Inquiry Running this inquiry, again, we can see the impact of the additional $1000 charge. Examining Row 1 of the inquiry we see the 100 LBS added to inventory, comparing Stock Before and Stock After columns. Then the value of $1000 (900 LBS on-hand with an AUC base value of $1170, now reflected as $2170). AUC base value $2170/900 LB = $2.41/LB. Stock Value Change Utility Sage offers a Value Change Utility to re-cost from a global amount or % basis for products valued as Average Unit Cost. By site & product a user may update the global amount to reflect a new value and run the Stock Accounting Interface to generate journal entry, G/L, for the Inventory account (differences will book to PPV account in G/L). The same re-valuation may be initiated, by tier, for items costed with a FIFO valuation (but that is for another day). For more information about Average Unit Cost valuation in Sage X3, please contact us.

It’s the time of year again when thoughts turn to holidays and family… and year-end closing routines including 1099 processing! In this post we will review the requirements for both Sage X3 and Sage 500 as you close out 2020 and get ready for 2021. Sage X3 Last week, Pam Nightingale, Senior Sage X3 Support Analyst, published a fantastic article about 1099 processing within Sage X3. It covers all the basics and has links to information you will need for this year. Pam also authored a blog post that covers the 2020 NEC changes. Most important to note is that the 2020 updates for 1099 were included in v11.0.18 and v12.024; for other patch levels on v11 and v12 Sage will be releasing a 1099 update. Versions older than v11 will not have a patch for 2020 requirements. If you also need to patch for the 2019 requirements, we can do both at the same time. 2019 supports versions 9, 11, and 12. Please contact your Team Manager at Net at Work or helpdesk@netatwork.com to coordinate patching, if you need support. Sage 500 Sage also just released a new article for Sage 500 that you can find on Sage City providing information on the 2020 Tax Year that will bring a new 1099 form, the 1099-NEC (Non-Employee Compensation). Starting with Tax Year 2016, Sage 500 ERP shifted from completely managing 1099 forms and history to using an outside vendor named Aatrix for much of the yearly 1099 processing. Sage 500 ERP now sums up 1099 data and sends that data to Aatrix. From there, Aatrix can print forms, mail forms, send electronic 1099s via e-mail, etc. If you are on a support plan, some of that is included, with additional options at additional cost.  AAtrix updates can be found by visiting https://partner.aatrix.com/sage500.  Net at Work has also worked with a different third-party solution where data is extracted from Sage 500 and submitted to the third-party.  Please contact Net at Work if you are interested in a different solution. Regardless of your installation’s product update status, the last 1099 update (not necessarily last year’s) must be installed prior to the 2020 1099 update. Tax Year 2019 did not require a 1099 update, so that means the last update was likely Tax Year 2018. There are two installs, one for the Aatrix system (once installed, Aatrix updates itself via the internet), and the other part is a Sage part that adjusts to IRS driven data changes. The main change for this year, from a user experience, is that this year they will have to run a Sage 500 database update piece prior to installing Sage 500 client change (due to 1099 table constraint changes). Please note that any users using Sage 500 v2016 and prior that were able to continue using Aatrix will not have a Sage alternative this year. Sage 500 v2017 and later will be supported. For information on year 2019 and 2018 requirements, follow the URL on the image below: Please contact your Team Manager at Net at Work or helpdesk@netatwork.com to coordinate patching, if you need support.

Every company is no doubt aware of cloud computing and the dramatic rise in popularity it has demonstrated in recent years. Many are asking themselves “Should we be moving to the cloud?” Cloud computing is almost certainly a part of nearly everyone’s computing landscape, from SnapFish and iCloud for personal use to SalesForce.com in business. There are many options available, including full-function ERP hosted in the cloud. The big question is whether a company with an existing on-premise ERP system should feel compelled to move to the cloud or else strongly consider the cloud when it is time to replace their existing system. Some facts to consider 1. Cloud computing is a deployment option, meaning it is a technology decision that may have a profound effect on your IT department but not so much on the users of the system. When done right, the system being deployed in the cloud is invisible to the system users. 2. If you have made the decision to change systems or to implement ERP for the first time, the cloud decision is strictly the concern of financial and IT departments. 3. When selecting an ERP system, choose the software that’s right for your company, and only then consider deployment and infrastructure options after the software solution has been identified. Most ERP solutions are available in a variety of deployments including cloud and on-premise, but some are only available one way or the other. Making the deployment decision first limits your choice of software. 4. Cloud computing doesn’t necessarily cost less (or more) than conventional on-premise deployment. Cloud computing, and a subset of this philosophy known as Software-as-a-Service (SaaS), can change the nature of costs – from capital expenses to operating expenses. It’s like the difference between buying or leasing your car. Compare the cost of ownership over a reasonable period of time – 5 to 7 years, for example – to see the true comparison of your total costs. 5. There are some technology trade-offs that your IT department will have to address, including security, access control, availability and communication speed, network and communications infrastructure, and the like. This is all part of their strategic posture and greatly influences the resources they will need and how they are used. 6. There is also a significant HR concern. Staffing and tasking of IT resources are different under a cloud strategy than for on-premise. Be sure that the right people are involved in the deployment decision, after the solution selection is complete and the deployment choices move to center stage. 7. ERP deployment is just one part of the corporate technology strategy. Be sure that any ERP deployment decision is made in context with overall IT plans and resources. How to get started Cloud computing is a popular approach because it offers alternatives that fit many companies’ financial and technical needs. It is not necessarily the best approach for a specific company, application, or financial position. The primary take-away is this: application fit and implementation partner choice are the most important decisions you will make to insure ERP system success. Technology deployment is secondary and, although it is also an important factor, it does not affect the usability or the benefits of the system. Deployment decisions can be left up to IT and finance since the impact should be invisible to the users.

Product-based businesses face many inventory management challenges that can impact all aspects of their business — from customer satisfaction to gross margin to return on investment. Whether it’s a lack of real-time visibility across locations or manual processes that result in lost time and increased errors, most businesses unfortunately deal with the pains of managing inventory at some point. NetSuite recently polled more than 165 organizations to learn about their inventory management challenges. Here are the top inventory management pain points these organizations reported. 1. Short shipments or incorrect items from suppliers For 10% of the audience polled, supplier errors resulting in short or incorrect items was reported as their biggest inventory management pain. Global supply chains shift daily, placing a burden on your inventory planning and management operations. The manufacturers and wholesale distributors that dictate when, where and how your inventory ships require flexibility and offer unpredictable lead times. To alleviate this pain, continuously monitor and track supplier performance to prevent supply chain disruptions, reduce complexity and streamline logistics. Pay close attention to supplier consistency and order accuracy in order to monitor performance. When possible, maintain a few backup suppliers that can be tested over a period of time to determine which vendors should be retained. Some inventory management systems also provide vendor management functionality that can help businesses identify which suppliers can be relied upon, and those that cannot. 2. Lack of visibility and supply chain responsiveness When your inventory is hard to identify or locate in the warehouse, it leads to incomplete, inaccurate or delayed shipments. For 22% of our respondents, this was the biggest source of inventory management pain for their business. Receiving and finding the right stock is vital to efficient warehouse operations, and supply chain models that prioritize responsiveness help with adapting quickly to change and delivering positive customer experiences. Software that can deliver comprehensive inventory visibility gives businesses insight into stock levels, demand and sell through by channel and location and links customer orders to items. Consider adding images with product descriptions in your inventory database to enhance accuracy and prevent misplaced inventory. 3. Inaccuracies caused by disconnected systems The second most common challenge businesses cited is having multiple disparate systems where the data is not all in synch in real time. According to one report, 43% of small businesses either track inventory manually or don’t track it at all. It’s an all too common dilemma, as personal care company Fulton & Roark co-founders Allen Shafer and Kevin Keller experienced trying to manage inventory manually while the company grew. “We’d be fixing inventory data as well as entering the information into our accounting system,” Shafer said. “If we missed the double data entry, we’d have inaccuracies in tracking inventory dollars. This would cause discrepancies between dollar amounts in the inventory spreadsheet and our financial system.” Consider tracking software that provides automated features for re-ordering and procurement. Inventory management platforms provide centralized, cloud-based databases for accurate, automatic inventory updates and real-time data backup. Impacts of poor demand forecasting The number one pain point our audience reported was stockouts, lost sales, excess inventory and other costs associated with poor demand forecasting. Determining the right levels of inventory can be difficult for many organizations even during more predictable economic times. Underestimating demand leads to customer dissatisfaction and lost sales when items aren’t available. Overestimations of demand can result in excess inventory that ties up cash and warehouse space. Organizations like Kali Audio use ERP to forecast how much inventory will be needed to fulfill upcoming orders. “If I don’t have inventory, I can’t sell. But if I have too much inventory, I can’t invest or buy more inventory where I need it,” John Malikyan, executive vice president of business development, said. “So [ERP] is extremely useful—it allows us to change and evolve with the situation of the world.” Some inventory management platforms include demand forecasting tools. This feature integrates with accounting and sales data to help predict demand and schedule orders based on shifting customer preferences, material availability or seasonal trends. Relief for the pain While these pain points are all too common for product-based businesses, you don’t have to suffer. Download the paper, Picking an Inventory Management Solution that Scales with Your Business for more on the role of inventory management in your supply chain and best practices for how businesses can use inventory management to optimize operations. This article was originally posted on NetSuite.com by By Barney Beal, Content Director