Place for Sage 50 Lovers

Sage 50 is the most popular Accounting Software Package in UK. It is also popular in many other countries in Asia and Africa (India, Dubai, Kuwait, Saudi Arabia, Bangladesh, Nepal, Sri Lanka, Malaysia, Singapore, South Africa, Zambia, Botswana, Malawi, Nigeria) in addition to becoming most used Accounting system Great Britain and Ireland.

Accountants who have used sage 50 love it and they just cant live without it when they join other organisations.

There are many reasons behind so much affection for sage 50. (Formerly sterling and then sage line 50) These are the main factors:

Easy to use, Easy to learn
easy to install and setup
Great Audit trail to track transactions in seconds
User log
Great report designer
Disaster recovery friendly database structure
Addon - compatible
Reasonable security
Upto 10 users can be added

But if you are looking for a hassle free online Cloud Accounting application which support UK statutory requirements then the choice is Kashflow.

Sage 50 - Closing Stock Valuations FIFO or Weighted Average Method?

Many Sage 50 users are confused as to how the Closing stock Value obtained as per Stock Valuation Reports available in sage 50 .(Products/Product Valuation Reports) There are basically 2 reports available with sometimes 2 different Valuations shown. One Report shows the value using the FIFO method and the other one using the Last Purchase Cost. Last Purchase Cost method is not a valuation accepted under Accounting Standards, yet useful in verifying whether "Net Realisable value" of stocks is below than "Cost" (FIFO report) as per the Standard.

The FIFO method report shows Total stock value as per FIFO (Assuming First came went First Out) method divided by balance Quantity available and thus a average Cost per Item column is shown. This makes it is confusing to many users whether this is the "Average" method. which is not so.

If Minus Quanity is allowed in the system Option available) then there couls be serious variations and value of FIFO report could be widely fluctuating

Difference in value according to these 2 reports is completely acceptable if prices are fluctuating.Yet the biggest issue is sometimes certain Items available as per one report is not shown in the other report and vice versa thus total quantity also may very on 2 reports.

This happens when items with very low cost (Less than 0.01 Cents per Item) as per FIFO report are available, but the last cost could be higher. Such items may not appear in FIFO report but could appear on  Last Purchase Cost Report creating a quntity (and also a value) Difference.


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