Great news for wholesale distribution companies—Sage Intacct recently released new exciting features in their Inventory Control module to improve your productivity by 20%-35%. The cloud accounting software company is constantly improving their module capabilities to better serve customers, and now, they’re ready to help distributors better tackle supply chain operations.
Here are three new features Sage Intacct released to the Inventory Control Module and what it could mean for your distribution organization.
Landed Costs is the total price of a product or shipment. This includes original price, transformation fees, customs, duties, taxes, insurance, currency and conversion. Historically, companies have relied on manual inventory adjustments to properly reflect the value of the inventory on hand and already sold. So, let’s say you regularly purchase items where shipping costs come later as a separate invoice from your distributor. Because the cost was already assigned to an inventory product, your CGS (costs of goods sold) isn’t tagged to that past transaction that already occurred. It’s not linked, meaning you don’t have the cost linked to the original transaction.
Now, with Sage Intacct, you never have to worry about whether or not your CGS accurately reflects your true cost to date. The new software update allows you to add the expenses incurred after the original product purchase to the inside cost layer of a product. This will improve your workflow from the beginning of an original purchase all the way through compiling the total cost of a product. Having total visibility into the full cost of a product (linking all related transactions) allows for more accurate reporting on the CGS and powerful insights into the true gross profit of a product.
Replenishment is the second feature release by Sage Intacct this past November to help tackle Distribution Requirements Planning. Wholesale Distribution companies must constantly strike a delicate balance between supply and demand of their inventory—order too much product and run the risk of it going stale, but order too little product and run the risk of losing customer satisfaction. This forecasting tool will help support this balance by purchasing product on a recurring basis to support the true supply and demand of your customers.
This feature will function best for organizations that consumes or sells the same item repeatedly and has a good handle over the purchasing pattern for that item. It will help you automate an otherwise manual, time-consuming task and allow for a continuously smooth flow of goods while minimizing ordering costs, holding costs, and risk of lost sales due to stockouts.
Inventory Valuation Tool
What happens when you sell a product before you receive the final invoice or all the landed costs related to that product? Sage Intacct allows for a temporary cost to be tracked in the cost layer until a company receives and enters all those final related costs. You might be thinking but that means there is an incorrect costing and profit margin on that sale? How does this get corrected? To accommodate for this dilemma, Sage Intacct developed the Inventory Valuation Tool which will allow you to see the true final cost of the product. It scans the system for any new transactions that have occurred since the initial recording of a product, looks at the sequential order of events on a product, puts it in proper order for accounting and reporting, and gives you an accurate valuation of your inventory on hand, costing of inventory and accurate profit margin.
Having inventory challenges in your existing workflow or software? Think Sage Intacct could be a good fit for your organization? Reach out to RSM for a free discovery session to see if Sage Intacct’s Inventory Control Module aligns with your distribution needs.