Long Business Systems, Inc. (LBSi) Management Software Solutions We help businesses manage for success Cleveland – Columbus – Cincinnati - Pittsburgh
Inventory Management Presented by: Vicki Smith A general overview of the Inventory Master Data screens, Inventory Transactions and ReportsAgenda: General System Settings for Inventory Inventory Valuation Methods Cycle counts Physical Inventory Inventory Reports
G/L Account Determinations System settings defined will determine how inventory transactions will affect the G/L accounts. Company Details General Settings Item Groups Warehouses
Inventory Valuation MethodsThree (3) valuation methods for calculating inventory value: Moving Average – Calculates the average cost for the item in each sales, purchasing, inventory, and production transaction Standard – Calculates the inventory value by a fixed price which is used for all transactions FIFO – Calculates the inventory value by First in – First Out method. Goods purchased first (or produced) are sold first Each inventory receipt transaction creates a stack of quantities linked to costs. Each inventory release transactions uses the quantities and costs from the top stack first Note: You can do the following: Manage all 3 methods in the same company Select a specific valuation method for each item
Preparation for Inventory/Cycle CountsMake sure the warehouse is clean and organized!!! All inventory is in its designated stock location All shipments are processed All PO Goods Receipts are processed All production orders are transacted to date All RMA items are separated from the regular inventory into a designated HOLD area. Make all necessary inventory adjustments to production orders or inventory. Run the Inventory Valuation Simulation Report Stop all inventory transactions Perform copy of live database to demo prior to starting count
Defining Inventory Cycles Inventory Cycle Setups Go to: Administration > Setup > Inventory > Inventory Cycles Define for an Item Group Go to: Administration > Setup > Inventory > Item Groups
Linking Inventory Cycles to Items Manually link to items in a warehouses at warehouse row level Make sure cycle count fields are displayed in warehouse row Update Cycle Code and Next Count Date in Item Warehouse row
Initiate Cycle Count Recommendations Go To: Inventory > Inventory Transactions > Cycle Count Recommendations Select cycle code and warehouse(s)Note: If you have selected alerts when defining cycles, you will receive an alert on the day the count should be initiated.
Generate Inventory Tracking Window Go to: Inventory > Inventory Transactions > Inventory Opening Balances, Inventory Tracking, and Inventory Posting > Inventory Tracking tab Update selection criteria as needed Click OK Tip: You can use Item Properties to get a specific selection
Generate Counts Sheets Displays items that are ready to count Note: unclick the Hide Quantity Stored box to see the on hand balances Print the Stocktaking Count Sheet and issue to warehouse for count
Record CountsEnter the counts in the Inventory Tracking screen As counts are entered, the counted box is automatically checkedZero counts show as blank – manually check the counted check boxTo compare count to on hand balance – uncheck the Hide QuantityStored box Click on the Update button when done entering counts Click on the “Set to Counted” in the Cycle Count Recommendations window
Inventory Posting window Go To: Inventory Posting tab to review count variances Update selection criteria as shown below Be careful!! Price Source is important.
Review Counts & Variances Review, print then post the cycle count Research items with variances and modify counts as required Note: counts are modified in the Inventory Tracking tab Update G/L account number, posting date and comments on screen Print the Inventory Posting report before posting
Inventory ReportsVarious reports display cost, track, and reconcile inventory transactions. Inventory Audit report only report that reconciles to the Balance Sheet Last Prices Report shows price history for various system transactions Item List Report Overview of all items with price lists and quantity in stock Inventory Status report Overview of current stock including planned receipts and withdrawals. (Hot List). Inventory Posting List Report Details of all transaction postings in the system displayed by date and inventory balance at that date Inventory in Warehouse Report Shows current stock status, planned receipts and withdrawals, last receipt & issue date (slow movers)
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Long Business Systems, Inc. (LBSi) Cleveland – Columbus – Cincinnati – Pittsburgh Contact Information: Vicki Smith Senior Consultant email: firstname.lastname@example.org Phone: 440-846-8500 ext 22 www.lbsi.com