Inventory - Settings and Information
Overview
When you add Materials to Inventory, you can manage the Minimum and Reorder Quantities to ensure that the optimum levels of inventory are kept in stock.
A Material is added to Inventory by adding it to one or more Inventory Locations.
When an Inventory Location is added to a material, the Base Unit is set as the Stock Check Unit.
Settings
User Settings
The defaults are the values for new databases and new users. Your database may have different values.
| Setting | Description | Default |
|---|---|---|
| Materials & Inventory > Inventory - Access Allowed | Whether you can open Inventory (see Inventory Reports):
| None |
| Point of Sale > Default: Inventory Location | Dropdown list with all locations to select a default location for the specific user (see Point of Sale). | None |
| Purchase Orders > Default: Inventory Location | Dropdown list with all locations to select a default location for the specific user (see Purchase Orders). | None |
| Sales Orders > Default: Inventory Location | Dropdown list with all locations to select a default location for the specific user (see Sales Orders). | None |
| Work Orders > Default: Inventory Location (Material) | Dropdown list with all locations to select a default location for the specific user (see Work Orders). | None |
| Work Orders > Default: Inventory Location (Output) | Dropdown list with all locations to select a default location for the specific user (see Work Orders). | None |
General Settings
Customer Credit Notes > Inventory: Auto Receive Inventory when Customer Credit Note is changed to a Complete Status: Options are Yes or No (see Customer Credit Notes).
Materials & Inventory > Enable automatic costing on Inventory Items: Options are No, Weighted Average Price or Last Received Price (see Inventory Integration and Valuation).
How Transactions Update Inventory
Reserve and Order transactions are temporary transactions which manage the Resolve of orders. They are assigned quantities only.
All these transactions create a cascading record in the STOCKTRANS table, which BOS Professional uses to calculate the stock quantities and values.
Always set the complete status on transactions to Issue only to ensure that Reserve entries are deleted when the transaction is completed.
- Order: A Purchase Order or Work Order is created to Order inventory.
- Material Movements Receive: Purchased inventory is received (see Materials Movement (Receive) Tutorial). Provision is made to include the Landing Costs, for purposes of calculating inventory prices when the weighted-average cost method is used.
- Reserve: A Sales Order or Work Order is placed to Reserve inventory.
- Reserve (Auto Issue): Inventory is automatically issued by creating a linked Materials Movement Issue transaction when the Sales or Work Orders are set to Complete Status.
- Materials Movement Issue: Inventory is Issued when a product is sold or when materials are used in production (see Materials Movement (Issue) Tutorial).
- Materials Movement Return: Inventory can be returned by a customer, or from a Work Order where all the materials were not used. When a Customer Credit Note is set to Complete Status, a Materials Movement Return is automatically created to return the items to stock (see Materials Movement (Return) Tutorial).
- Transfer Order Issue: Issues inventory that must be moved from one location to the next. This issue is an internal transfer of materials.
- Transfer Order Receive: Receives the inventory at the new location. This receipt is an internal transfer of materials.
Resolve Options to use
Order
- Purchase Orders
- Work Orders (Output)
Receive
- Materials Movement Receive
- Transfer Orders (Receive)
Reserve
- Sales Orders
- Work Orders (Materials)
Issue
- Materials Movement Issue
- Sales Orders
- Work Orders (Materials)
- Transfer Orders (Issue)
- Supplier Debit Note
Return
- Materials Movement Return
- Customer Credit Note
How Inventory Quantities and Values are calculated
Inventory Quantities are not stored in the database, instead, they are calculated when required.
- The Quantity in stock as at the Selected Date is calculated as follows:
- Get the Last Stock Check with a Complete status dated on or before the Selected Date. Pending Stock Checks are not counted.
- Get the Act Qty (counted quantity) from the Last Stock Check. If there is no Complete Stock Check, start from zero and include all the transactions.
- Add the sum of all the Receive transactions dated after the Last Stock Check but on or before the Selected Date.
- Deduct the sum of all the Issue transactions dated after the Last Stock Check and on or before the Selected Date.
- The Value of Inventory is calculated as follows:
- Quantity of Stock on Hand multiplied by the Stock Price as at the Selected Date.
- The Stock Price is extracted from the Price History table.
- The Available Quantity is calculated as follows:
- The Quantity in Stock less the Reserved quantity.
Managing Stock on Hand
- The Replenishment function ensures that the optimum quantity of stock is kept on hand by helping organisations calculate the Minimum and Reorder Quantities.
- The settings can be found on Materials' Inventory tab (see Materials Edit View).
- A Replenishment Report is included in the Inventory Reports.
- The Stock Check function allows managers to control the stock on hand (see Stock Check and the Stock Check Tutorial).
- Managers can print stock-count sheets for their staff to physically count the stock and fill in the quantities.
- The quantities from those sheets can be entered into BOS Professional.
- The counted and system quantities are compared, and any discrepancies are highlighted.
- Each Stock Check has a header record with a count record for each unit that can be counted. The count records are converted to the base unit and summed to the header record, which holds the Stock Check's status.