Overview 

When Materials are added to Inventory, it allows you to manage the Minimum and Reorder Quantities to ensure that the optimum levels of inventory are kept in stock.

A Material is added to Inventory by adding it to one or more Locations.

When an Inventory Location is added to a Material, the Base Unit is set as the Stock Check Unit. 

Settings 

User Settings

Navigation: Main Menu > Office > My Organisation > Double-click to open a Staff File > Settings (tab)

• Materials & Inventory > Inventory - Access Allowed: Options are None, Read-only, or Full Access.

• Point of Sale (PoS) > Default: Inventory Location: Dropdown list with all locations to select a default Location for the specific user.

• Purchase Orders > Default: Inventory Location: Dropdown list with all locations to select a default Location for the specific user.

• Sales Orders > Default: Inventory Location: Dropdown list with all locations to select a default Location for the specific user.

• Work Orders > Default: Inventory Location (Material): Dropdown list with all locations to select a default Location for the specific user.

• Work Orders > Default: Inventory Location (Output): Dropdown list with all locations to select a default Location for the specific user.

General Settings

Navigation: Main Menu > Setup > Settings & Default

Customer Credit Notes > Inventory: Auto Receive Inventory when Customer Credit Note is changed to a Complete status: Options are Yes or No.

Materials & Inventory > Enable automatic costing on Inventory Items: Options are No, Weighted Average Price, or Last Received Price.

How Transactions Update Inventory 

Reserve and Order transactions are temporary transactions which manage the Resolve of orders. They are assigned quantities only.

All these transactions create a cascading record in the STOCKTRANS table which is used to calculate the stock quantities and values.

Always set the complete status on transactions to Issue only to ensure that Reserve entries are deleted when the transaction is completed.

1. Order: A Purchase or Work Order is created to Order inventory.

2. Material Movements Receive: Inventory that was purchased has been received. Provision is made to include the Landing Costs, for purposes of calculating inventory prices when the weighted-average cost method is used.

3. Reserve: A Sales or Work Order has been placed to Reserve inventory.

4. Reserve (Auto Issue):  Inventory is automatically issued by creating a linked Materials Movement Issue transaction when the Sales or Work Orders are set to Complete Status.

5. Materials Movement Issue: Inventory has been Issued when a product has been sold or when materials are used in production. 

6. Materials Movement Return:  Inventory can be returned by a customer, or from a Work Order where all the materials were not used. When a Credit Note is set to Complete Status, a Materials Movement Return is automatically created to return the items to stock.

7. Transfer Order Issue: Issues inventory that must be moved from one Location to the next. This is an internal transfer of materials.

8. Transfer Order Receive: Receives the inventory at the new Location. This is an internal transfer of materials.

Resolve Options to use:

Order

• Purchase Orders

• Work Orders (Output)

Receive

• Materials Movement Receive

• Transfer Orders (Receive)

Reserve

• Sales Orders

• Work Orders (Materials)

Issue

• Materials Movement Issue

• Sales Orders

• Work Orders (Materials)

• Transfer Orders (Issue)

• Supplier Debit Note

Return

• Materials Movement Return

• Customer Credit Note

How Inventory Quantities and Values are calculated 

Inventory Quantities are not stored in the database, instead, they are calculated when required.

1. The Quantity in stock as at the Selected Date is calculated as follows:

   1. Get the Last Stock Check dated before the Selected Date.

   2. Get the Actual Quantity from the Last Stock Check.

   3. Add the sum of all the Receive transactions dated after the Last Stock Check but on or before the Selected Date.

   4. Deduct the sum of all the Issue transactions dated after the Last Stock Check and on or before the Selected Date.

2. The Value of Inventory is calculated as follows:

   1. Quantity of Stock on Hand multiplied by the Stock Price as at the Selected Date.

   2. The Stock Price is extracted from the Price History table.

3. The Available Quantity is calculated as follows:

   1. The Quantity in Stock less the Reserved quantity.

Managing Stock on Hand 

1. The Replenishment function ensures that the optimum quantity of stock is kept on hand by helping organisations calculate the Minimum and Reorder Quantities.

   1. The settings can be found on Materials' Inventory tab.

   2. A Replenishment Report is included in the Inventory Reports.

2. The Stock Check function allows managers to control the stock on hand.

   1. Managers can print Stock-count Sheets for their staff to physically count the stock and fill in the quantities.

   2. The quantities from those sheets can be entered into BOS Professional.

   3. The counted and system quantities will be compared, and any discrepancies will be highlighted.