Inventory

1. Inventory

2. Overview: Every inventory item consists of 3 records: • Master • Store • Vendor This PowerPoint will demonstrate how to build each of the above records for a new inventory item.

3. INVENTORY MASTER

4. To access the inventory master file, select: Inventory Menu # 2 File Maintenance # 20 Inventory Master

5. Or, you may enter the ‘dot jump code’ .IM at any selection line within the system.

6. MASTER Inventory Item #: To create a ‘new’ inventory item, enter an alphanumeric item number 1-16 characters in length. The word ‘New!’ is displayed, confirming that this item does not already exist in the master file. To recall a previously entered item, enter the item number directly or perform an inventory search.

7. To perform an inventory search, enter the ‘dot jump code’ .W, the following window will appear: Search Options: Query Thru All Items - allows a look-up by item number. You must enter a starting item number or sequence number to display all items in sequential order. An item may be recalled by selecting it from the list.

8. Alpha Search for an Item - allows entry of a search key 1-10 characters in length. The search key may be any part of the first or second description. It may also be (starting with the first character) part of the item number, alpha sort key, vendor number, vendor’s item number or bar code/UPC. All items found matching that criteria are displayed (ex. CLIP). An item may be recalled by selecting it from the list. You have the option to display 4 more characters of the second description in place of the unit of measure and/or display the alpha sort key in place of the quantity and price, as follows:

9. To set the parameters controlling the information displayed in the search window, select: Inventory Menu - type .SSIP at the selection line - select Table # 5 - ensure the following feature is set accordingly - select Table # 8 - ensure the following feature is set accordingly

10. Description 1 & 2: 1-25 characters each. Used for item searches, printing on reports/forms, displaying in inquiries and transaction entry screens. NOTE: The following function may be run to populate the ‘Search Key’ from the first 10 characters of the items first description, or the item number. Select: Inventory Menu # 10 Utilities # 32 Rebuild Inventory Alpha Sort Key

11. You have the option of displaying the second description in the Inventory Quantity Inquiry and whether it prints on the Purchase Order form or not. Inventory Quantity Inquiry: Select: Inventory Menu - type .SSIP at the selection line - select Table # 3 - ensure the following option is set accordingly 0 = No, do not display second description 1 = Yes, display second description, left justified 2 = Yes, display second description, right justified Purchase Order Form: Select: Inventory Menu - type .POP at the selection line - ensure the following option is set accordingly

12. Unit of Measure: 1-3 digits (numeric), mandatory. Represents the unit of measure this item is ‘stocked’ in. Codes must be previously defined in the Unit of Measure Table.

13. To access the Unit of Measure Table, select: Inventory Menu # 3 Miscellaneous Maintenance # 22 Add/Change Tables Table ID = UM-TAB

14. Item Type: 1 digit. There are six possible ‘types’ of items. Each ‘type’ handles pricing and ordering at sales order entry differently. 0 = Regular – (typically used) The quantity sold through sales orders is relieved from the on-hand quantity of the item. 1 = Tally Item – Used only in Lumber Industries. 2 = Summary Bill of Material – A “kit” made up of a fixed combination of items. The components and quantities can not be changed at sales order entry.

15. 3 = Lineal Foot Tally – Used only in Lumber Industries. 4 = Detail Bill of Material – A “kit” made up of a combination of other items. The components, quantities and prices may be changed at sales order entry. 5 = Hardwood Tally – Used only in Lumber Industries.

16. Sequence Number: 6 digits. May be manually or systematically assigned to each item. Used for sorting purposes on reports and inquiries, as well as establishing the Forward and Backward links. It is recommended that the first 3 digits represent the product category and the last 3 digits represent the alphabetical sequence of the item within that product category.

17. Mark Up/Down Code: 1 digit. There are 7 possible codes. This code interfaces with the customer price code in the Customer Master for determining price or percent levels. 0 = Markup from Cost – Uses the cost method in the main parameter and marks it up by the percentage in the appropriate price level, located within the inventory store record. The price code in the customer master determines the appropriate price level to use.

18. 1 = Markdown from Retail – Uses the retail price entered in price level 8, located within the inventory store record, and marks it down by the percentage in the appropriate price level (1-7). The price code in the customer master determines the appropriate price level to use. 2 = Fixed Price – Dollar amounts (prices) are entered in each price level within the inventory store record. The price level used for this item/customer is determined by the price code in the customer master. 3 = Markup to Retail less Discount %’s – Uses the cost method in the main parameter and marks it up by the percentage entered in the ‘Markup to Retail’ field, located within the inventory store record. This amount is then marked down by the percentage in the appropriate price level. The price code in the customer master determines the appropriate price level to use.

19. 4 = Markup from Standard Cost – Uses the standard cost entered in the inventory store record and marks it up by the percentage in the appropriate price level. The price code in the customer master determines the appropriate price level to use. 5 = Product Category Costing – The price is manually entered by the clerk at sales order entry. The system then calculates a cost using the percentage in the ‘Markup to Retail’ field, located within the inventory store record. The item is then marked down by the percentage in the appropriate price level. The price code in the customer master determines the appropriate price level to use. This code is generally used for items that are not tracked in inventory. 6 = Manual Price/Cost – The price and cost are manually entered by the clerk at sales order entry. The item is then marked down by the percentage in the appropriate price level. The price code in the customer master determines the appropriate price level to use. This code is generally used for non-stock items that you wish to have sales analysis tracked.

20. Product Category: 3 digits, numeric. It is recommended to first setup product categories in Product Category Maintenance, however the system does not check for a valid entry. To access Product Category Maintenance, select: Inventory Menu # 3 Miscellaneous Maintenance # 21 Product Category Maintenance

21. Within Product Category Maintenance, you have the ability to enter a 2 line message, 50 characters each, for the clerk to see at sales order entry every time an item is sold from this product category.

22. A cross reference may also be attached to each product category and used in inventory reports. 1-10 characters.

23. A margin % can be attached to each product category, which is the default ‘desired margin’ for new items setup within this product category. It may still be edited per item in the inventory master record.

24. Maximum Tally Size: Used only in Lumber Industries.

25. Desired Margin %: 999.99 is the maximum % that may be entered. Ex. 40.00 = 40%. The desired margin can be manually entered or default from Product Category Maintenance.If an item is sold below its desired margin, a message will display for the clerk at sales order entry. It will also print on the Exception Report during dayend. Formula = (Sale – Cost) / Sale = Margin %

26. Desired Commission %: If a commission percentage is entered on the item master, it will override the commission percentage on the salesman/clerk master. If no percentage is entered, the system will use the commission percentage from the salesman/clerk master. If 999.999 is entered, no commission will be calculated on this item. Please refer to the “Commissions” PowerPoint for further details.

27. Conversion Factor: 999.000000 is the maximum amount that may be entered. A conversion factor is necessary if you cost an item in a different unit of measure than you stock it. It tells the system how many purchasing units equal stocking units. (Typically set to 1.000000 for no conversion)

28. Taxable Code: 1 digit. Determines the taxable status of the item. 0 = Non-taxable 1 = Sales Tax Only (PST) 2 = Tax 2 Only (GST) 3 = Both Taxes (PST & GST) (default) 9 = Allows entry of the tax code at sales order entry. NOTE: Regardless of the tax code on the item, the actual tax is calculated based upon the customers tax status. Ex. If a customer is setup with a tax status of PST only, and the item is setup for GST only, no taxes will be charged.

29. 3 Decimal Price: 1 digit. Determines if pricing is displayed and used in calculations as 2 or 3 decimal pricing. N = 2 decimals Y = 3 decimals

30. Catalog Number: 4 digits. Memo field which can be used for reporting purposes.

31. Page Number: 4 digits. Memo field which can be used for reporting purposes.

32. Volume Factor: 9999.9999 is the maximum amount that may be entered. Used in purchase orders to determine how much space is required for delivery by multiplying this figure by the quantity ordered.

33. Lot Size 1 & 2: 1-6 digits each. Allows items to be sold in standard quantity sizes. The system allows for 2 different sizes per item. Primarily used by brick and block distributors to sell items by the pallet as opposed to selling by the piece. The ‘Lot Sizing’ parameter must also be activated. Select: Inventory Menu - type .MP at the selection line - ensure the following option is set to ‘Y’

34. Weight: 999999.99 is the maximum amount that may be entered. Used in the purchase order system to control freight and weight charges.

35. Thickness: 9.999 is the maximum amount that may be entered. Used in conjunction with a hardwood tally item. Used only in Lumber Industries.

36. Discontinued/Sellable: 6 valid options are as follows: Blank – regular item, discountable, may be sold and purchased as normal. 20 – net item, non-discountable, may be sold and purchased as normal. 40 – discontinued item, discountable, may be sold and purchased as normal, however system prompts that it is discontinued. Typically used for items that you still have quantities to sell but you will no longer stock.

37. 60 – discontinued net item, non-discountable, may be sold and purchased as normal, however system prompts that it is discontinued. Used for items that you still have quantities to sell but you will no longer stock. 80 – discontinued item, non-sellable, may not be sold or purchased. Used for obsolete items. ADD – allows an item to be linked to another item for automatic sale. The word ‘ADD’ must be entered in this field, and the item number to be linked entered in the following field at ‘Sub Item #’. The system uses the ordered quantity from the original item to determine the ordered quantity of the linked item. This linkage is also used in purchase orders and quotations. IMPORTANT: For history purposes, we do not recommend deleting inventory masters. We recommend flagging obsolete items as ‘80’ for ‘discontinued/non-sellable’.

38. These items may also be excluded from the inventory search feature. Select: Inventory Menu - type .SSIP at the selection line - select Table # 8 - ensure the following option is set accordingly 0 = No – Do not exclude any items. 1 = Yes – Exclude all items flagged as ‘80’. 2 = Yes – Exclude all items flagged as ‘40’, ‘60’, or ‘80’.

39. Substitute Item: Must be a valid item number. If the available quantity of the original item is less than the ordered quantity, the system will prompt to use the substitute item. The following parameter, which verifies available quantities for cash sales, should be turned on if substitute items are to be used for cash sales. Select: Inventory Menu - type .MP at the selection line - ensure the following option is set to ‘Y’

40. Forward & Backward Links: These fields are systematically updated by the Rebuild Master Chain function. These links allow you to scroll through the inventory, item by item, in a sequential order.

41. On Hand: Displays the total on-hand quantity for this item. For multi- location companies, this field represents the quantity of all store locations. It is updated by sales orders, purchase orders, bill of materials and inventory transactions, may not be manually edited.

42. Committed: Displays the total committed quantity for this item. Represents the quantity of all store locations. This field is updated by sales orders, bill of materials and inventory transactions. From time-to-time you may need the system to recalculate this quantity. Select: Inventory Menu # 3 Miscellaneous Maintenance # 23 Recalculate Committed Quantities For single companies, answer Yes to ‘Clear Inventory Qty’s First’, for multi-companies, sharing the same inventory, answer No, and run it in both companies.

43. On Order: Displays the total on order quantity for this item. Represents the quantity of all store locations. This field is updated by purchase orders, bill of materials and inventory transactions. From time-to-time you may need the system to recalculate this quantity. Select: Purchase Order Menu # 3 Miscellaneous Maintenance # 22 Reset Qty On Order in Inventory For single companies, answer Yes to ‘Clear Inventory Qty’s First’, for multi-companies, sharing the same inventory, answer No, and run it in both companies.

44. Direct On Order: Displays the total quantity for this item existing on outstanding direct ship purchase orders. Represents the quantity of all store locations. They will have no effect on the on-hand quantity and will decrease once the purchase order is invoiced.

45. Transfer Quantity: Displays the total quantity of this item existing on open transfers.

46. Beginning Quantity: This field is systematically updated by the Inventory Turnover Report. The Beginning Quantity is set to the current On-Hand Quantity and used for reporting purposes.

47. Search Key: 1-10 characters. Used by the inventory search feature. THE INVENTORY MASTER SETUP IS NOW COMPLETE

48. Additional Features: The following options exist at the bottom of the screen once an inventory master is created or recalled. To expand these options, enter ‘?’ at the selection line.

49. E = Edit – Allows you to edit the information entered for the item currently displayed. N = Next – Clears the screen and allows entry of another item number. If the Auto Display feature is on, the next item in sequence will be displayed. U = Units/Sales – Displays the MTD, YTD and LYTD unit sales, dollar sales and costs for this item. S = Store – Displays the inventory store record for the current item. P = Print – Prints the item master record currently displayed. A = Auto Display Forward – Activates the auto display feature. The ‘Forward Link’ field is highlighted to indicate ‘Forward’ mode. The ‘N’ for Next can be entered to display the next inventory item in the chain.

50. B = Auto Display Backward – Activates the auto display feature. The ‘Back. Link’ field is highlighted to indicate ‘Backward’ mode. The ‘N’ for Next can be entered to display the previous inventory item in the chain. F = Finish Auto Display – Stops the auto display feature for both Forward and Backward modes. M = Miscellaneous Flags – Opens the Miscellaneous Flags window as follows: O = Other Information – Allows entry of a Cost Type. Works in conjunction with the Job Cost module. C = Copy Item – Allows you to copy an items master & store information to a new item number.