Learn best practices for configuring the Inventory Module including categories, naming conventions, vendors, and cost rules.

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P01|Master Parts List Configuration

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Parts Configuration Defined
Part Classifications and Categories
Configuring Vendor Relationships
Cost Rule Explanations
Agenda

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Parts Configuration Overview
Part Naming Conventions
Searching for Parts
Direct Issue vs. Stocked Parts
Parts Configuration Defined

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Inventory Module tracks parts used by
organization to maintain Assets
Level of Inventory usage will be
business process specific
Parts Configuration Overview

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Parts consist of:
• Descriptive info
• Cost
• Vendors
• Quantity on-hand
Parts Configuration Overview (cont’d)

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Part availability tracked by Stock Room
• Set Reorder, Maximum, and On-Hand
Parts Configuration Overview (cont’d)

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Supports Rotating (Serialized) Items
• Inventory of Serialized Assets
• Tracked through Work Orders
Parts Configuration Overview (cont’d)

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Consistency is key
ID and Name required
Description used for more in depth info
Parts Naming Conventions

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Filters for Stocked Items to Reorder and
Direct Issues to Order
Search tab used for quickly locating
records in Explorer
Mark Items as favorites
Searching for Parts

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Direct Issue:
• Typically not kept in stock
• Orders placed with vendor as needed
Direct Issue vs. Stocked Parts

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Stocked Items:
• Stored in stock room or warehouse
• Frequently used
• Maintained and re-ordered as needed
Direct Issue vs. Stocked Parts (cont’d)

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Now let’s practice creating a test
Inventory item and setting it as a Direct
Issue Item!
Creating Inventory Parts: Hands-On

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Navigate to the Inventory Explorer
Select the New button
A New Item record will appear in the
Work Center
Creating Inventory Parts: Hands-On (cont’d)

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Enter the Item ID as P01-YOURINITIALS
Enter the Item Name as P01-Your Name
Save the record
Creating Inventory Parts: Hands-On (cont’d)

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Select the Direct Issue Item? (Order as
Needed) indicator
Save the record
The Item will now be flagged as a Direct
Issue item
Creating Inventory Parts: Hands-On (cont’d)

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You have now successfully completed
creating a Direct Issue test Inventory
Item!
Creating Inventory Parts: Hands-On (cont’d)

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Classification and Category Usage
Parts Classification and Categories

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Used primarily for organization,
searching, and grouping
Both fields useful for sorting and
grouping for Reporting
Classification and Category Usage

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Separate Inventory Classification Tree:
• Group similar Inventory types
• Similar structure to the Asset Tree
Classification and Category Usage (cont’d)

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Classification and Category used to limit
Inventory Explorer results
Search By in Explorer allows for quick
location of groups of Parts
Classification and Category Usage (cont’d)

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Sort / Group by Category and
Classification for Reporting
Limit results for Reports (Criteria)
Classification and Category Usage (cont’d)

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Vendors Tab Overview
Adding Vendors
Configuring Vendor Relationships

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Vendors currently used to purchase
displayed item
Vendors useful for:
• Auto-ordering
• Multiple purchasing options
• Reporting purposes
Vendors Tab Overview

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Single or multiple Vendors options
Manually added or added via purchase
order
Stored in Companies module
Vendors Tab Overview (cont’d)

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Add button on Vendors tab used
Vendor, Manufacturer, or Internal
Company Type
Adding Vendors

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Associated to specific Stock Room (or
all)
Priority can be assigned to determine
preferred Vendor
Adding Vendors (cont’d)

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Order Units and Price set per Vendor
Discount percentage and Tax Rate (if
applicable) for item
Adding Vendors (cont’d)

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Cost Rule Overview
Average Cost
Last Cost
Standard Cost
FIFO and LIFO
Cost Rule Explanations

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Determines cost populated when
materials are added to Work Order
Cost rule drives which cost field from
Stock Room is used for transaction
Cost Rule Overview

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Example of Details and Stock Room for
Cost and Charge:
Cost Rule Overview (cont’d)

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Costs can be applied to all Stock Rooms
in which the item resides
Cost Rule Overview (cont’d)

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Five Cost Rule options:
• Average
• Last
• Standard
• First-In, First-Out (FIFO)
• Last-In, First-Out (LIFO)
Cost Rule Overview (cont’d)

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All Cost Rules (besides Standard)
require Purchase Order module usage
First-In, First-Out (FIFO) and Last-In,
First-Out (LIFO) more complex
Cost Rule Overview (cont’d)

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Updated based on all completed
(historical) Purchase Orders
Pulls from Average Cost (per Order
Unit) field for Stock Room
Average Cost

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Pulled from field Last Cost (per Order
Unit) for Stock Room
Updated from Purchase Orders each
time item is ordered
Last Cost

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Most common method is to use a Fixed
Cost amount
Pulls from Cost (per Order Unit) field
Must be manually updated
Standard Cost

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First-In, First-Out (FIFO):
• Pulls part cost from Purchase Order line
items in descending order as received
Last-In, First-Out (LIFO):
• Pulls part cost from Purchase Order line
items in ascending order
FIFO and LIFO

38. Thank You for
Watching!