Inventory maintenance starts with the Item file in Order Entry. Anything from price and margin to ordering instructions is handled in this file.
Item File Features
Before we get into the inventory, let’s take a closer look at the item file and some of the features that are designed to make processing inventory jobs quicker and easier.
Select View>Item from the Order Entry Node.
Find item 1411GB.
Notice that two of the check boxes at the bottom of the screen are selected: General Inventory Item and Price Information. These two items and the Ordering Instructions selections play a role in how orders are processed for this item.
Click on General Inventory Item.
The General Inventory dialog box shows the inventory unit of measure and the minimum stock quantity for the item. The minimum stock quantity is used in the Inventory Usage report to determine whether an item is due for reorder.
Close the General Inventory dialog box.
| • | Price Information |
Click on Price Information. (For this exercise, we have chosen an item which uses multi-level pricing)
The Multi-Level Pricing Information dialog box allows catalog prices to be set by the quantity ordered. This can be done with fixed prices or a specified margin, as shown in this example. In this example, the sell unit of measure is cartons. If 5 cartons or less were ordered, the price would be calculated to produce a 20% margin. What would the margin be, if the order were for 12 cartons?
Because no costs have been entered for this item, the cost will be determined at the time an order is entered. When an order is entered, the system will default the cost for the line item to the highest cost for the item in inventory. The sell price will be calculated on the highest possible cost. When the inventory is relieved, it will be relieved using the oldest inventory available. The program will calculate the average unit cost of the inventory relieved for the order and offer the operator the opportunity to replace the cost on the line item with the figure calculated. For inventory valuation purposes, your costs are always the actual cost of the item on a First-In-First-Out basis. Commissions and management reporting are based on the cost in the line item. If you elect not to replace the cost in the line item, you will be managing and paying commissions based on the replacement cost of the item.
Close the Multi-Level Pricing Information dialog box.
Find item 1411G2.
Click on Price Information.
This Multi-Level Pricing Information dialog box presents a different method of controlling the prices. Rather than working with margins for the price breaks, the actual unit prices have been specified. The unit cost has also been specified. When an order is placed, the default cost and price for the line item will be selected based on the quantity ordered.
Inventory value will still be based on actual FIFO. When the inventory is relieved, the actual cost will be determined and the operator will be notified of the difference.
Notice that the Maximum Quantity for Level 4 is zero and that there is no price for level 5. This means that there are only 4 levels of pricing for this item. Any order greater than the quantity specified for level 3 will be priced at the level 4 price.
Close the Multi-Level Pricing Information dialog box.
| • | Special Instructions |
Ordering Instructions - are for you and your staff only. When creating a line item these instructions will be seen upon entering the item code and can be useful in informing the operator of basic details or special notes regarding the product, important steps in placing the order, etc.
Long Description and Instructions - furthers your ability to enter details regarding a product for more open sharing of information. Anything entered within the three available fields can be shared on appropriate documents to customers, vendors or warehouse personnel.
Find item 9511CE.
Click on Ordering Instructions on the Item screen.
| • | Enter "Sell only in full cartons" for the note and select <OK> to close the dialog box. |
Click on Long Description and Instructions on the Item screen.
| • | The Long Description section: Anything typed here will print on all Customer-Related documents. |
| • | The Vendor Instructions section: Anything typed here will print on all Vendor-Related documents. |
| • | The Warehouse Instructions section: Anything typed here will print on all Warehouse-Related documents. |
Select <OK> to close the Long Description and Instructions dialog box.
We will see these notes again later when we enter an inventory sale for this item. These notes are designed to provide the operator entering orders with additional information.
Return to the Order Entry Node.
Customer File
| • | Pricing Level |
Select View > Customer > Billing from the Order Entry Node.
Find Customer ABC.
Select Options > Billing from the Customer Billing screen.
Enter 3 for the Pricing Level.
Putting a number other than zero in the Pricing Level indicates that we want all sales of stock items to be priced at the level 3 price for the customer, regardless of the quantity on the individual order.
Select OK to close the Billing Options dialog box.
Return to the Order Entry Node.
Warehouses
A warehouse for General Inventory is a combination of a set of customer records and supplier records with the same code. If you are also running the XETEX Xebra Customer Specific Inventory module, the warehouses are defined in the same manner for both modules. The same warehouse may be used in both modules without concern for Customer Specific Inventory items getting confused with the stock items you sell from inventory.
Inventory Inquiry is another basic feature, used to get a picture of what stock is on hand. We will be going in and out of Inventory Inquiry to see what effect the jobs we process have on the inventory information that the system makes available.
Select View > Inventory Inquiry from the Order Entry Node screen.
Enter 9511CE for the Item. <Tab>
The Inventory screen tells us that there are 2.5 M on hand and none on order from our customers. The quantity available is 2.5M and the cost is $7.49 per M.
Select View > All Activity from the Inventory screen.
The Activity list shows all of the activity for the item. The most recent activity is on the top and the oldest activity is on the bottom.
double-click the top activity item in the list box to display the Edit Activity dialog for that item.
This is where manual corrections would be made if needed.
Click the <Cancel> button to close the Edit Activity dialog.
Select <Close> to close the Activity dialog.
Return to the Order Entry node.