Restocking Inventory

We are now going to process an order for new stock that will be placed in inventory.  In order to go through the whole process with the same job, we will be backdating the order.

Select Commands > New Job from the Order Entry node.

Select Purchase General Stock for the Job Type.

Enter WHS01 for the customer.  (the character "0" in the code is a zero)

Leave the Contact as the default, Joe Stock.

Select Order In Process for the Initial Job Status.

Enter –5<TAB> for the Order Date.

Leave the Customer PO: blank.

Enter T<TAB> to make the Due Date today’s date.

Click <OK> Close the New Job dialog box.

Click <OK> to select Item code as the method of entry for the line item.

Enter 9511CE<TAB>  for the Item code.  The Item Data dialog will be filled with default information from the item record.  Notice that the Ordering Instructions you entered earlier now appear on the right side of the dialog box.

Select <OK> to complete the Item Data dialog.

Leave the tracking information and follow-up date blank.

The vendor for this job is defaulting to Paper Place. <TAB> to accept.

Enter Jerry for the Vendor Quote Number.

Leave the Vendor Job Number blank.

Enter –5<TAB> for the Vendor Order Date.

Accept the current date as the Request/Due Date.

Leave the Re-order Date blank.

Select <OK> to complete the Vendor/Scheduling Information dialog box.

Enter 100 for the Sell Quantity Ordered and M for the Sell Unit of Measure.

When purchasing stock items for inventory, the sell unit of measure should always be the same as the control unit of measure for inventory.

Tab through the Buy Quantity Ordered and the Buy Unit of Measure.

Enter 6.72 for the Unit Cost.  This is what we will pay the vendor for the item.

Enter 7.72 for the Unit Price.  This will become the value of our inventory in the warehouse and the cost used for items sold out of inventory.  In this case, we added a dollar per thousand to cover incoming freight and warehousing.

Click <OK> to close the Line Item Quantities dialog box.  The entry of the line item is complete.

From the Line Item window select View > Inventory.

Notice that Due In now shows 100.

Click the Due In button.

The Due In dialog box shows the key information for each inventory-stocking job for the item due from vendors.

Close the Due In dialog box and all other dialogs until you reach the Order Entry window.

Select Actions > Receive Vendor Invoice from the Order Entry screen.

PAPER will default as the Vendor, as there is only 1 vendor associated with this job.  If you have multiple vendors on a job, you will need to select the appropriate one.

Enter 84783 for the Invoice Number.

Enter T<TAB> for the Date.

Enter 756.58 for the Amount.

In addition to the stock, there is a shipping charge of $84.58 included on the vendor’s invoice.

Select Commands > Additional Charge.

Enter FRT for the Item.

Accept the defaults from the item record for Description, Product category, and Vendor.

Enter 84.58 for both the Price and Cost.

When you get back to the Receive Vendor Invoice screen, the listings for both items should be in the list.

The Freight line item was already "selected".  Select the remaining item in the list.  Answer the questions.  Both items should show today’s date for the Shipped Date.  There were no unders or overs.

With both items selected, the extended total of the items selected should match the $756.58 invoice amount.

Select Commands > Process to create the accounts payable record.

You may view the accounts payable record, if you wish.

Once the accounts payable record is complete, the program checks to see if the items invoiced need to be received into inventory.  Sometimes items are received well in advance of the vendor invoice.  They may be received into inventory using the Enter/Relieve Inventory Action.  In this case, we received the vendor’s invoice and the merchandise at the same time.  We have not yet received the item into inventory.

The next message box that you see will ask you if you want to enter the items for this job into inventory.  Answer <Yes>.

There is only one inventory item on this job.  double-click it to select it.

Confirm the Date Shipped and the Quantities on the Quantities Received To Stock dialog box.

Select <OK> to close the Quantities Received To Stock dialog.

Select <Done> on the Enter Inventory dialog.

You will then be asked if any additional charges need to be entered for this job.  Since we already took care of that when we received the invoice, answer <No>.

Had we received the item into inventory before receiving the vendor invoice, we might have used this feature to record the freight charge.

Select <Yes> to select In Inventory for the Job Status.  The In Inventory status tells the system to ignore the job when preparing sales reports.  Without this feature, it would look like each inventory item was sold twice.

Select View > Inventory Inquiry from the Order Entry Node screen.

Check the inventory again for item 9511CE.

The list box now shows two lines.  It shows one line for the 2.500 M at $7.49 that was in inventory when we started.  It also shows the 100.000 M that we just received at $7.72.

double-click on the line that shows 2.500 M.  The Activity dialog box shows only the activity for the lot that was valued at $7.49.

Close the Activity dialog box.

Select View > All Activity from the menu bar.  The Activity dialog box now shows all activity for the item, regardless of the lot.

The value of the inventory determines the lot.  Multiple receipts with the same inventory value will be treated as being the same lot.  For obvious reasons, it is important that the inventory value be entered accurately when making manual adjustments to inventory.  This is particularly important when reducing inventory.  Putting the wrong value on a reduction could result in creating a lot with a negative quantity.  This will cause inaccuracies in inventory.

Close the Activity dialog box and return to the Order Entry Node.