INVENTORY & ORDER ENTRY

Inventory items are the core element in the inventory module. You can purchase inventory items from suppliers, or you can create inventory items that represent services. You then sell items to customers.

You can create various types of inventory items:

An item can be a physical item or a service item. With physical items, you purchase and sell quantities; with service items, you can sell quantities as well (for example, hours), but service items do not have on-hand quantities.

With the Multi-Warehousing add-on module, you can create multiple warehouses or stores, and move items between these stores.

If you use the optional Serial Number Tracking add-on module, you can serialise individual inventory items and keep track of them by their history. The system tracks their purchase, internal movement in the company, sale, and possible return for repair or refund.

If you use the optional Bill of Materials add-on module, you can manufacture or assemble items from components. The system takes the component materials out of stock and creates finished items ready for you to sell.

All these add-on modules work together, so, for example, you can manufacture serialised items into warehouses.

Inventory items have a unique item code of up to 20 characters long. You can also enter (and use) a barcode. You can have up to three lines of description.

You can group inventory items using various fields. You can range on these fields whenever you produce reports, and you can filter by these fields when you do enquiries. Therefore, even if you have many thousands of items, you are in a position to extract information quickly and simply.

The system tracks reorder levels for you. You can set up minimum and maximum quantity levels, a re-order level, and a re-order quantity.  The Inventory Optimisation module can calculate your re-order levels based on past usage history and upload it to the products inventory record for future re-order reports and auto purchase orders.

You can link multiple suppliers to each inventory item, along with the supplier's code for the item.  This can automatically be printed on the purchase order to the relevant supplier.

You can create units of measure and relate them to each other. This lets you purchase and sell in multiple units. For example, you can purchase an item by the gross, and sell them as dozens or single units.

Costing Method

The system can keep track of inventory cost prices using one of three methods:  Weighted Average, Latest or Manual Cost.

Integrating Inventory into the General Ledger

Whenever you purchase or sell inventory, the system updates the general ledger. There are two levels of this integration:  Periodic or Perpetual/Integrated Inventory

Transaction Types

Transaction types are critical elements of your processing. You enter all transactions via transaction types. In addition, all transactions the system generates, such as inventory integration transactions, require a transaction type.

The transaction type determines the transaction's sign (whether it is a debit or credit), whether it contains tax, and so on.

Storing this information in the transaction type makes actual transaction processing a trivial data entry process. Very little knowledge or experience is required in order to enter the transactions, because the transaction type setup determines what fields agents need to enter.

You can link one transaction type to another. This is required, for example, when you sell to a customer and you use perpetual inventory method. The system processes one set of transactions to update sales and accounts receivable accounts on the general ledger, and another set to take inventory costs out of the inventory account and into cost of goods account. The linked transaction type lets the system create both transactions at once.

Transaction types also let you group similar transactions together. This is useful for reporting, because you can view similar transactions together.

Inventory Groups

Inventory groups let you group inventory items for better reporting purposes. For example, you could use groups to differentiate different categories of inventory item.

You can use the group code to sort and filter inventory records in various places in the system. Just about every inventory report allows you to range on groups. If you create groups that accurately reflect the way you categorise your inventory, the group structure will make it easier for you to manage your inventory database.

You can also use groups to override the general ledger accounts that the system usually obtains from transaction types. You do this if you wish to analyse inventory in the general ledger, based on the inventory group structure rather than the source of the transaction.

Finally, if you use the Pricing Matrix add-on module, you can attach a discount matrix to an inventory group. If necessary, you can override this discount matrix setting on a particular inventory item.

Inventory Selling Prices

The system has powerful features that let you control selling prices:

You can create an unlimited number of separate selling prices for each inventory item, and you can name the prices. On the customer side, you link a customer to one of these prices. If you use the Multi-Currency Add-on module, you can create price lists in other currencies.

You can enter an automatic discount percentage on the customer record. This discount will apply to sales invoices as a whole. The automatic discount defaults on each invoice and you can edit or delete it.

If you need more flexibility and control of prices, at a group or even a customer level, you can purchase the Pricing Matrix add-on module, which gives you the following capabilities:

You can create volume discount contracts. These pricing structures exist for groups or individual customers and inventory items:

You create a contract per customer or per accounts receivable group.

Within each contract, you can create an unlimited number of contract lines. Each line can be for an inventory item or for an inventory group.

A contract line has an effective date and an expiry date.

A contract line can have multiple lines representing item quantities. For each quantity, you can enter either a selling price or a percentage discount on the customer's selling price. Either way, the system adjusts the selling price on the invoice line, not the percentage discount.

You can create a discount matrix, which works as follows:

You create a two dimensional matrix, with rows representing customers and columns representing inventory items. The cells of the matrix contain discount percentages.

You assign a row of the matrix to a customer or a customer group, and a column of the matrix to an inventory item or an inventory group.

When you process a sale of an inventory item to a customer, the system puts the customer's row and the inventory item's column together and derives the discount percentage to apply to the invoice line.

Document Processing

The system provides you with a number of methods of purchasing and selling inventory. The method you use depends on your company requirements.

The simpler method is to use only those documents that are available in the Inventory Control module. These documents are:

Goods Received Voucher / Supplier Invoice

The system can either be configured to receive in goods with an estimate price followed by the actual supplier invoice prices or you enter a GRV and Supplier Invoice in one go.

Return to Supplier

You use this document type to return faulty items to your supplier.

Invoice

You use this document type to sell to customers. You can print a quotation prior to processing the invoice.  This document is useful for those who dont have back orders.

Credit Note

You use this document type when customers return items to you.

You can print and process purchase and sales orders, and then fill these orders in part or in whole, keeping track of outstanding orders.

With sales orders, you can reserve quantities for customers when they place an order.

For customer processing, besides printing a sales order, invoice, and quotation, you can also print a picking slip and a delivery note.

If you use split GRV and supplier invoice processing, you can process the purchase order via an initial GRV followed by a supplier invoice. If the supplier invoice arrives with the goods, you can process both the GRV and the supplier invoice together.

If you purchase from foreign suppliers, you can capture a purchase order in the supplier's currency. When you process the supplier's invoice, the system converts the values into your currency at the exchange rate you specify. If you sell to foreign customers, you can capture a sales order in the customer's currency. When you process the invoice, the system converts values into your currency.

For supplier processing, the system can create purchase orders automatically, using the re-order fields on the inventory records.

The system has powerful reports that help you manage outstanding and overdue orders.

Processing documents is almost identical across all document types. This means that once you know how to process one of these document types, you know how to process them all.

Some of the main document processing features:

You process each document in its own window. You can have as many of these windows open at once, as you require. This is very useful if you are interupted with a phone call and need to enter a new order, quote or invoice, afterwards return the the order you were working on.

You can save a document without processing it to the accounts, and open it later, modify it if necessary, and then process it.

Documents reside in a special area called the document store. You can access this document store at any time, and retrieve any document, processed or not, and view, print, and/or email the documents. You can delete older and unneeded documents from the document store at any time.

You can save a document without an account number and use it as a template. This is very useful when you regularly produce multi-line documents that are very similar. Once you load a template, you can edit it as you apply it to a customer or supplier.

Inventory Count

From time to time, you need to do a physical count of your inventory items to ensure that you have the quantities on hand that you think you have. Besides the accounting necessity, performing stock counts at random times and for random parts of your inventory cuts down on theft, and is therefore good practice.

Warehouse Transfers

If you use the Multi-Warehousing add-on module, you can transfer items between warehouses. Items always transfer at cost. An item has the same cost price in each warehouse unless you configure pricing per warehouse. You can have different selling prices in each warehouse if you require it.

There are two methods available to transfer inventory between warehouses. Either an instant warehouse transfer or you can use Inter Branch Transfers which assumes it takes a while to ship the goods to another warehouse in which case a goods in transit warehouse, damage warehouse and variance warehouse come into use.