Inventory

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Procedure for Adding Inventory Master

  1. Enter Item Master (Inventory \ Maintain \ Item Master)

    1. Item No – Enter unique Part #

    2. Description – Enter two line description. Remember that only the first line shows up during Lookups.

    3. Stocked – Checked if this item is normally stocked in inventory or we need to record inventory transactions or production. Normally Checked. Items that have a Bill Of Material, but only exist during production and we don’t want to track them should have stocked and controlled not checked.

    4. Controlled – Checked if the system should track allocations for this item. Normally Checked.

    5. Inv Trx Audit – Checked if the system should record transactions in history any time anything happens to this item. Normally Checked.

    6. Item Category - P for Purchased part, M for Manufactured / Repaired / Value Added part.

    7. Primary Loc – Default location for this part.

    8. Matl Cost Type – Asset grouping. Used to tell the system which Inventory Asset account to use.

    9. Prod Category – Revenue grouping. Used to tell the system which revenue and cost of goods sold account to use.

    10. Stocking - Unit of Measure in which we use and stock this part

    11. Purchase - Unit of Measure in which we buy this part

    12. To Stock Ratio - Ratio between Stocking and Purchasing UOM

      1. example - Stocking - IN, Purchase - FT, Ratio - 12

    13. Selling - Unit of Measure in which we sell this part

    14. To Stock Ratio - Ratio between Stocking and Selling UOM

      1. example - Stocking - IN, Selling - FT, Ratio - 12

Explanation of Usage Weight Factor: Assigns the weight of the prior periods usage in determining average usage, see the following table:

 

Periods of Sales History

Usage Weighing Factor

3

.50

6

.29

9

.20

12

.15

18

.11

Explanation of Safety Factor: Tells the system how much to compensate for volatile usage, see the following table:

 

Customer Service Safety Level

Factor

50%

0.0

75%

0.8

80%

1.1

85%

1.3

90%

1.6

95%

2.1

97%

2.4

99%

2.9

99.5%

3.2

99.8%

3.6

99.9%

3.9

99.99%

5.0