Inventory

Settings

General Settings

Navigation: Main Menu > Setup > Settings > General (tab).

•   Items Settings

User Settings

Navigation: Main Menu > Setup > Settings > Users (tab).

• Items & Inventory > Inventory - Access Allowed: Checkboxes for users to allocate access to the following inventory reports (views):

  • Default

  • Transactions

  • Stock Check

  • Batch Items

  • Serial Numbers

  • Accounting

  • Replenishment

  • Over/Under

  • Ageing

  • Setup

• Items & Inventory > Pricing - Access Allowed: Checkboxes for users to view the following pricing reports:

  • Supplier Prices

  • Selling Prices

  • Inventory Prices

  • Service Prices

• Items & Inventory > Stock Check - Access Allowed: Options are:

  • None: No access to the Stock Checks.

  • Full control: Full control to create, edit, and delete Stock Checks.

  • Enter count only: Has access to view and enter quantities.

Role Settings

Navigation: Main Menu > Setup > Settings > Roles (tab).

Settings can be added per transaction type to limit the transactions users can see to their respective locations.

• Inventory > Default Inventory Location Transactions: Provides a dropdown list of all Locations for one to be selected. If this setting is not added to a Transaction, users have access to all the Locations.

• Inventory > View Inventory from all the Locations: Checkbox, if checked, the user has access to view inventory from all the Locations. This setting can also be added to Transactions and Inventory Reports (Default View). If unchecked, users can only view inventory linked to the Locations set up for their entity.

Transaction Settings

Navigation: Main Menu > Setup > Settings > Transactions (tab).

• Transactions > Work Orders (WO) > Add to Inventory Replenishment Actions (Produce):  Checkbox, if checked the feature will be added to Actions. This allows users to create a Work Order from the Replenishment Report by selecting the option on Actions (button).

• Transactions > Work Orders (INV) (PO-INV) > Add to Inventory Replenishment Actions (Purchase): Checkbox, if checked the feature will be added to Actions. This allows users to create a Purchase Order from the Replenishment Report by selecting the option on Actions (button).

Inventory Locations 

1. For Inventory functions to work, an item must be allocated a location under Item Creation: Inventory (tab).

2. Inventory Location Groups and Locations can be created from Item Creation > Menu (button) > Edit Inventory Locations.

3. Inventory Locations are allocated Statuses (active or inactive) when added to an item. 

4. Inventory Locations can be added to Customers or Suppliers from Menu (button) > Add Inventory Location (e.g. to keep track of consignment stock). Users without rights to the Inventory module will not see this option. 

Inventory Items

Items can be linked to Inventory by checking the Inventory checkbox on the Item edit Form. Locations can be explicitly added to an Item, or they can automatically be added when the Item is linked to a valid Location on an Inventory Transaction. 

When a Location is created, the following happens:

• An Inventory Location record is inserted and linked to the selected Item.

• A Stock Check record is created and linked to the new Location. The Stock Check is dated for the previous day - the Date can be updated on the Stock Check module, in case Transactions need to be backdated.

Inventory Transactions

The following rules are applied when selecting a Location on a Transaction Item:

1. The Location has to be allowed for the User (Role), Transaction Type and Item (Category) which are linked to the Location. 

2. In a Customer Transaction, the Location must be linked to the Transaction Customer or not linked to a Customer. The same applies to Supplier Transactions.

3. If the Location exists, but it is inactive, it will be activated again. If the Location is not linked to the Item, it will automatically be added.

When a new Location is automatically added, the Stock Unit Price is set according to the following rules:

1. Select the first price from another Location linked to the Item.

2. Select the first Cost Price linked to the Item with a matching Unit.  If the price is in Foreign urrency, the price is converted to Local Currency.

3. Select the first Supplier Price linked to the Item.

How Transactions Update Inventory

ℹ️ 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.

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

2. Reserve: A Sales or Work Order i created to Reserve inventory.

3. Receive: A Goods Received, Goods Returned, Sales Return or Transfer Receive is created to receive goods.

4. Issue: A Goods Issued, Purchase Return or Transfer Issue is created to issue goods.

5. Goods Received: 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.

6. Goods Issued: Inventory has been Issued when a product has been sold or when materials are used in production. 

7. Goods Returned:  Inventory can be returned by a customer, or from a Work Order where all the materials were not used. 

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

9. Transfer Received: Receives the inventory at the new Location. This is an internal transfer of materials.

How Inventory Quantities and Values are calculated

ℹ️ Inventory Quantities are not stored in the database, instead, they are calculated when they are 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 Inventory (tab) of Materials.

   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.

   3. The Counted and System Quantities will be compared and any discrepancies will be highlighted