When are inventory levels increased in Sage 50?

Question

BlackTom AI · Accepted Answer

The question asks: When are inventory levels increased in Sage 50?
Option 1: 'When a sales invoice is posted' — This is typically incorrect for most ERP/accounting systems, as sales invoices usually decrease inventory (cost of goods sold) rather than increase it, since you’ve already recorded the sale and the goods are leaving inventory.
Option 2: 'When a purchase invoice is posted' — This is correct in Sage 50: posting a purchase invoice generally increases inventory because it reflects receiving goods that were ordered, thus increasing on-hand quantities until the items are used or sold.
Option 3: 'When a purchase order is recorded' — Recording a purchase order does not affect inventory levels by itself; it is a commitment to buy and does not physically receive goods or change stock until the receipt or invoice is posted.
Option 4: 'When a sales quote is recorded' — A sales quote is simply a preliminary offer and does not involve actual goods movement or inventory changes; quotes do not impact on-hand stock.
In summary, the standard flow in Sage 50 is that inventory levels increase when the purchase-related document that reflects receipt and invoicing of goods is posted, which aligns with option 2. Understanding the distinction between recording/purchasing, receiving, invoicing, and posting helps clarify why-only-posting a purchase invoice changes inventory in the expected direction.

SG5024E1 - Sage 50 Accounting Power User Test

When are inventory levels increased in Sage 50?

View Explanation

Log in for full answers

Similar Questions

True or False? If you have multiple warehouses, Sage 50 can keep track of the inventory levels of each warehouse separately by using the inventory locations.

How can the Sales by Product/Service Summary report in QBO assist in inventory management?

Question at position 6 Inventory is an asset that allows a company to support manufacturing operations and fill customer orders immediately, but too much inventory ties up capital and can become a significant liability.TrueFalse

A stock loss occurs

Too much inventory on hand causes

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler