Long Business Systems, Inc. (LBSI) provides management software solutions focused on inventory management, including features like valuation methods, cycle counts, and inventory reports. The document outlines system settings and procedures for managing inventory transactions, preparing for counts, and generating reports. It concludes with a call for referrals and information about upcoming user group meetings.

1. Long Business Systems, Inc. (LBSi)
Management Software Solutions
We help businesses manage for success
Cleveland – Columbus – Cincinnati - Pittsburgh

2. Inventory Management
Presented by: Vicki Smith
A general overview of the Inventory Master Data screens, Inventory
Transactions and Reports
Agenda:
General System Settings for Inventory
Inventory Valuation Methods
Cycle counts
Physical Inventory
Inventory Reports

3. 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

4. Inventory Valuation Methods
Three (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

5. Preparation for Inventory/Cycle Counts
Make 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

6. 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

7. 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

8. 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.

9. 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

10. 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

11. Record Counts
Enter the counts in the Inventory Tracking screen
As counts are entered, the counted box is automatically checked
Zero counts show as blank – manually check the counted check box
To compare count to on hand balance – uncheck the Hide Quantity
Stored box
Click on the Update button when done entering counts
Click on the “Set to Counted” in the Cycle Count Recommendations
window

12. Inventory Posting window
Go To: Inventory Posting tab to review count variances
Update selection criteria as shown below
Be careful!! Price Source is important.

13. 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

14. Inventory Reports
Various 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)

15. Thank you for taking time to participate in the SAP
Business One User Group Meeting.
Please take a few minutes to respond to our survey
and provide us with feedback and suggestions going
forward.
o We are always looking for new clients to work with. And we would like
to find more clients and partners like you – companies that are
engaged, smart, and focused on their future.
o Can you help us out by referring LBSi to someone who could benefit
from our services?

16. Next Meetings:
o Tuesday, Jan. 17, 2012
o 1099 Reporting
o Tuesday, Feb. 14, 2012
o TBA – Give us your ideas

17. Long Business Systems, Inc. (LBSi)
Cleveland – Columbus – Cincinnati – Pittsburgh
Contact Information:
Vicki Smith
Senior Consultant
email: vicki@lbsi.com
Phone: 440-846-8500 ext 22
www.lbsi.com