Distribution Training Guide. D100 Inventory Management: Basic

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Certification Course Prerequisites

The D100 Inventory Management course consists of a hands-‐on guide that will walk you through the specifics of Acumatica’s Inventory Management module.

While many have completed this course online, you might encounter some challenges that

you would otherwise not face when done in our classroom setting.

You will perform the exercises in your installed copy of Acumatica, using the “Demo” data provided with the Acumatica installation package version 4.20.

To begin, activate all the features of the application using the Common Settings:

1. Open the

Enable/Disable Features

form (screen ID CS100000): Configuration > Common Settings > Licensing > Enable/Disable Features

2. Click the

Modify

button on the toolbar.

3. Confirm that the features are enabled/disabled as follows: (When you come to a field not specified in the table below, either populate it as you see fit or leave it as is.)

Field Value

Organization {checked}

Customer Management {checked} Project Management {checked} Time Reporting on Activity {checked}

Finance {checked}

Multi-‐Branch Support {checked}

Inter-‐Branch Transactions {checked} Multi-‐Currency Accounting {checked} Deferred Revenue Management {checked}

Subaccounts {checked}

Fixed Assets Management {checked} VAT Reporting {checked} Invoice Rounding {unchecked}

Support for Expense Reclassification {unchecked}

Contract Management {checked}

Tax Entry from GL Module {unchecked}

Consolidated Posting to GL {checked}

Volume Pricing {unchecked}

Distribution {checked}

Inventory Subitems {checked}

Automatic Packaging {checked}

Warehouses {checked}

Warehouse Locations {checked}

Blanket Purchase Orders {checked}

Drop Shipments {checked}

Multiple Unit of Measure {checked}

Misc {checked}

Row-‐Level Security {checked}

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Address Validation {checked}

Notification Module {unchecked}

4.

Save

your changes.

5. Click the Enable button on the toolbar.

6. Open

Segmented Keys

(CS202000): Configuration > Common Settings > Segmented Keys > Segmented Keys

Screen Section Field Value

Summary Segmented Key ID INSUBITEM

Details Segment ID 1

Details Include in Cost {checked}

Details Segment ID 2

Details Include in Cost {checked}

7. Enter into Segmented Key ID field = INSUBITEM 8. Make sure Include in Cost is checked for both lines.

9. Since branch accounting is enabled, verify that you are working in the MAIN branch and that it is configured correctly:

a. Verify that you are connected to the MAIN branch. The information is located at the top of the screen:

b. It is important that you work in the MAIN branch throughout this certification class.

10. In the General Ledger module, confirm that all the period of the current fiscal year are actives: Finance > General Ledger > Work Area > Manage > Financial Periods

Important Note:

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Inventory Objectives

The Objectives are:

• Understand an overview of the Inventory module

• Understand how the Inventory module fits into the available suite of modules for Acumatica system

• Understand the benefits and additional features that are available in the Inventory module

Inventory Overview

The Inventory module provides real-‐time access to inventory item availability data configured in accordance with company policies. The Inventory module maintains a perpetual inventory system while performing physical inventories as full inventory and by cycles. With Acumatica ERP, items can be tracked by either lot or serial numbers, as well as by expiration dates. By using flexible valuation methods, one can accurately maintain item costs and trace cost flows. Advanced functionality of the module includes flexible posting settings and automatic initiation of stock replenishment.

Inventory Process Overview

The inventory process begins with acceptance of inventory into the warehouse from vendors or from an internal manufacturing division. Inventory is unloaded from the ship, train, container, pipeline, or other transportation methods into the possession of the warehouse or holding area. When the items are unloaded, this is considered the receipt of inventory.

After goods are accepted in the warehouse, they are placed in specific storage areas, and this information is recorded for future retrieval of the goods. Goods then wait to be transferred to another warehouse, assembled into a finished product, or shipped to a customer.

If goods are needed at another warehouse, they are shipped as a transfer. There are two scenarios for this type of shipment: the warehouse is nearby or some distance away. If the warehouse is nearby (less than one-‐day travel time) the transfer of the goods can be considered almost instantaneous. If the second warehouse is a long distance away, the transfer records should reflect the fact that it takes some time before these goods are received at the second warehouse.

If the goods are component sub-‐assembly parts, they are assembled into a finished product. The individual costs of the components make up the final product cost.

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If items are damaged or lost, adjustments to the records are made. To make sure the accounting records are correct, a physical inventory is taken to reconcile the book quantities with the physical quantities.

Benefits and Additional Features

In addition to being able to enter transactions such as receipts, transfer, and adjustments to the Inventory module includes additional features to help streamline the module to meet your needs. These additional features can provide a benefit to an organization by helping reduce that amount of time spent entering transactions and organizing and tracking items.

Stock and Non-‐Stock Inventory Items

Inventory items are the goods, products, services, or component parts recorded to and tracked in your system database. Inventory items can be divided into two major categories, stock and non-‐stock items, based on how they are handled and accounted for.

Flexible Item Identifiers and Support of Alternative ID’s

By using configurable inventory IDs, one can uniquely identify inventory items. Subitems, if used, allow further subdivide items by size, color, material, and so forth if needed. One can easily gather additional business-‐specific data about inventory items by configuring custom fields, called attributes. Also, on purchase and sales orders, barcodes or vendor or customer alternative IDs can be used to find items or record the item information.

Multiple Units of Measure

Unlimited number of units of measure (UOMs) can be used as purchase, stock, or sale units for inventory items. Commonly used units of measure and conversion rules between UOMS (such as boxes and cases) can be defined globally and then used for specific item classes or particular products. One can also define units of measure and conversion rules at the item-‐class and item level. Once the conversion rules are defined, the system automatically makes conversions to the correct unit of measure when necessary.

Multiple Warehouses and Locations

In Acumatica ERP, you can maintain a complex warehouse structure, defining multiple warehouses with multiple locations within each warehouse. By configuring segmentation for location identifiers, you maintain a hierarchy of rooms, rows, levels, shelves, bins, and so forth. For each location, you can define which inventory operations can be performed there. You can also specify a primary inventory item or primary item class, and set up validation so that if a preferred item is specified and the validation is turned on, only it can be received at the location. Security features allows restriction of access to warehouse information to groups of authorized users.

Flexible Posting Settings

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for inventory transactions provide the offset accounts to be updated, depending on the type of inventory transactions.

Inventory transactions

The Inventory module supports the following types of documents, recording the same-‐name inventory transactions: receipt, issue, adjustment, transfer, and kit assembly. Inventory documents facilitate accounting for transactions that result in changing of inventory quantities.

We will not be going through Inventory Sub Items, it is currently being reviewed to be more user friendly.

If subitems are enabled, subitem codes should be used with every stock item even if an item has no variations. Make sure to add for each subitem segment the values wich mean no variations.

Once enabled, this feature CAN NOT be disabled.

Create Posting Classes

Learning Objects:

• Learn how to configure posting classes for stock and non-‐stock items. A posting class is a group of settings that provide the default values for the purchase, sales, and inventory transactions with the item and define how these transactions will be posted to the General Ledger.

Hands on – Define Posting Classes

You use this screen to define posting classes for stock and non-‐stock items. A posting class is a group of settings that provide the default values for the purchase, sales, and inventory transactions with the item and define how these transaction will be posted to the General Ledger. By using this screen, you can browse through the existing posting classes and modify their properties, add new posting classes, and delete obsolete classes from the system. Field Descriptions:

Field Description

Class ID The unique alphanumeric identifier of the posting class. A string up to 10 characters may be used.

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Field Description Use Inventory /

Expense Accrual Account From

The source of the inventory account (of the Asset type) for stock items or expense accrual account for non-‐stock items or labor items (of the Asset or Liability type) to be used for transactions that involve items assigned to this posting class. You can choose one of the following options:

• Inventory Item: Uses the inventory account associated with the stock item or the expense accrual account associated with the non-‐stock item. The inventory account for stock items is specified on the GL Accounts tab of the

Stock Items form. The expense accrual account for non-‐stock items is specified on the GL Accounts tab of the Non-‐Stock Items form.

• Warehouse: Applicable to stock items only. Uses the inventory account associated with the warehouse. This inventory account is specified on the GL Accounts tab of the Warehouses form.

• Posting Class: Uses the inventory or expense accrual account associated with the posting class. The accounts associated with the posting class are specified on the GL Accounts tab of this form.

Combine

Inventory/Accrual Sub. From

A subaccount mask used to define how the subaccount used with the inventory account (or expense accrual account for non-‐stock items or labor items) is composed for transactions that involve items of the posting class.

Use Sales Account

From The source of the sales account to be used for inventory transactions involving items of the posting class. You can choose one of the following options: • Inventory Item: To use the sales account associated with the inventory item.

This sales account is specified on the GL Accounts tab of the Stock Items form.

• Warehouse: To use the sales account associated with the warehouse. This sales account is specified on the GL Accounts tab of the Warehouses form.

• Posting Class: To use the sales account associated with the posting class. This sales account is specified on the GL Accounts tab of this form.

Combine Sales Sub. From

A subaccount mask used to define how the subaccount used with the sales account is composed for inventory transactions that involve inventory items of the posting class. Use COGS/Expense

Account From

The source of the COGS (for stock items) or expense (for non-stock items) account to be used for inventory transactions that involve items of the posting class. You can choose one of the following options:

• Inventory Item: To use the COGS or expense account associated with the item on the GL Accounts tab of the Stock Items (or Non-Stock Items) form. • Warehouse: To use the COGS or expense account associated with the

warehouse on the GL Accounts tab of the Warehouses form.

• Posting Class: To use the COGS or expense account associated with the posting class on the GL Accounts tab of this form.

Copy COGS Sub. from

Sales A check box that, if selected, indicates that the system will copy the COGS or expense subaccount from the sales subaccount. When this option is selected, you cannot define the rule to combine COGs subaccount from the related subaccounts.

Combine

COGS/Expense Sub. From

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Field Description Use Std. Cost

Variance Account From

The source of the standard cost variance account to be used for the inventory transactions with items of the posting class. You can choose one of the following options:

• Inventory Item: To use the standard cost variance account specified for the inventory item on the GL Accounts tab of the Stock Items form.

• Warehouse: To use the standard cost variance account specified for the warehouse on the GL Accounts tab of the Warehouses form.

• Posting Class: To use the standard cost variance account specified for the posting class on the GL Accounts tab of the Posting Classes form. Combine Std. Cost

Variance Sub. From A subaccount mask used to define how the subaccount used with the standard cost variance account is composed for the inventory transactions that involve inventory items of the posting class.

Use Std. Cost Revaluation Account From

The source of the standard cost revaluation account to be used for inventory

transactions involving items of the posting class. You can choose one of the following options:

• Inventory Item: To use the Standard Cost Revaluation Account selected for the item. This Standard Cost Revaluation Account is selected on the GL Accounts tab of the Stock Items form.

• Warehouse: To use the Standard Cost Revaluation Account selected for the warehouse. This Standard Cost Revaluation Account is selected on the GL Accounts tab of the Warehouses form.

• Posting Class: To use the Standard Cost Revaluation Account selected for the posting class. This Standard Cost Revaluation Account is selected on the GL Accounts tab of this form.

Combine Std. Cost Revaluation Sub. From

A subaccount mask used to define how the subaccount used with the standard cost revaluation account is composed for the inventory transactions that involve inventory items of the posting class.

Use PO Accrual Account From

The source of the PO accrual account to be used for the inventory transactions with items of the posting class. You can choose one of the following options:

• Inventory Item: To use the purchase order accrual account specified for the inventory item on the GL Accounts tab of the Stock Items or Non-stock Items forms.

• Warehouse: To use the purchase order accrual account specified for the warehouse on the GL Accounts tab of the Warehouses form.

• Posting Class: To use the purchase order accrual account specified for the posting class on the GL Accounts tab of this form.

Combine PO Accrual

Sub. From A subaccount mask used to define how the subaccount used with the PO Accrual account is composed for inventory transactions that involve inventory items of the posting class.

Use Purchase Price Variance Account From

The source of purchase price variance account to be used for inventory transactions that involve items of the posting class. You can choose one of the following options:

• Inventory Item: To use the purchase price variance account specified for the inventory item on the GL Accounts tab of the Stock Items form.

• Warehouse: To use the purchase price variance account specified for the warehouse on the GL Accounts tab of the Warehouses form.

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Field Description Combine Purchase

Price Variance Sub. From

A subaccount mask used to define how the subaccount used with the purchase price variance account is composed for the inventory transactions that involve inventory items of the posting class.

Use Landed Cost Variance Account From

The source of landed cost variance account to be used for inventory transactions involving items of the posting class. You can choose one of the following options:

• Inventory Item: To use the landed cost variance account specified for the inventory item on the GL Accounts tab of the Stock Items form. • Warehouse: To use the landed cost variance account specified for the

warehouse on the GL Accounts tab of the Warehouses form.

• Posting Class: To use the landed cost variance account specified for the posting class on the GL Accounts tab of this form.

Combine Landed Cost

Variance Sub. From A subaccount mask used to define how the subaccount used with the landed cost variance account is composed for the inventory transactions that involve inventory items of the posting class.

Physical Inventory

Reason Code For stock items only. The reason code to be used by default for physical inventories involving items associated with this posting class. Inventory / Expense

Accrual Account

The asset account to be used as an inventory account associated with the posting class if this class will be used for stock items and an expense accrual account if this class will be used for non-‐stock items.

Inventory / Expense

Accrual Sub. The subaccount to be used with the inventory account (expense accrual account) associated with the posting class. Reason Code Sub. The subaccount to be used with the reason code for items of the posting class. Sales Account The income account to be used as the sales account associated with the posting class. Sales Sub. The subaccount to be used with the sales account associated with the posting class. COGS/Expense

Account

If this posting class will be used for stock items, this is the expense account to be used as the cost of goods sold (COGS) account associated with the posting class. If this class will be used for non-‐stock items or labor items, this is the expense account associated with the posting class.

COGS/Expense Sub. The subaccount to be used with the COGS account associated with the posting class. Standard Cost

Variance Account The expense account to be used with the standard cost variance account associated with the posting class. Standard Cost

Variance Sub. The subaccount to be used with standard cost variance account associated with the posting class. Standard Cost

Revaluation Account The expense account to be used as the standard cost revaluation account associated with the posting class. Standard Cost

Revaluation Sub.

The subaccount to be used with standard cost revaluation account associated with the posting class.

PO Accrual Account The liability account to be used as the Purchase Orders accrual account associated with the posting class.

PO Accrual Sub. The subaccount to be used with purchase order accrual account associated with the posting class.

Purchase Price

Variance Account The expense account to be used as the purchase price variance account associated with the posting class. Purchase Price

Variance Sub. The purchase price variance subaccount to be used for the default posting class. Landed Cost Variance

Account

The expense account to be used as the landed cost variance account associated with the posting class.

Landed Cost Variance

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1. Open Posting Classes screen (screen ID: IN206000): Distribution > Inventory > Configuration > Setup > Posting Classes.

2. We will review the current DEMO database values and do not plan to make any changes at this time.

Create Reason Codes

Learning Objects:

• Learn how to configure Reason Codes for stock and non-‐stock items.

Hands on – Define Reason Codes

Use this screen to create reason code to specify why a particular type of transaction was performed and to provide the appropriate sales or expense account and subaccount to be updated with the transaction amount.

Field Descriptions:

Reason Code The identifier of the reason code; an alphanumeric string of up to 10 characters may be used.

Description A description of the reason code.

Usage An option indicating where this code can be used. The following options are available:

• Sales: This code is used in the Sales Orders module. The Combine Sub. From box is disabled for this option.

• Credit Write-‐Off: This code is used in the Accounts Receivable module. The rule governing how to combine subaccounts on issues is specified in Combine Sub. From.

• Balance Write-‐Off: This code is used in the Accounts Receivable module. The rule governing how to combine subaccounts on issues is specified in Combine Sub. From.

• Issue: This code is used in the Inventory module. The reason code will be used for issue documents. The rule governing how to combine subaccounts on issues is specified in Combine Sub. From.

• Receipt: This code is used in the Inventory module. The reason code will be used for receipts. The rule governing how to combine subaccounts on receipts may be specified in Combine Sub. From.

• Adjustment: This code is used in the Inventory module. The reason code will be used for adjustments. The rule governing how to combine subaccounts on adjustments may be specified in Combine Sub. From. • Transfer: This code is used in the Inventory module. The reason code will be

used for inventory transfers. The rule governing how to combine subaccounts on transfers may be specified in Combine Sub. From. • Disassembly: This code is used in the Inventory module. The reason code

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Sales Account The sales account to be updated by the transaction amount, only for reason codes not used in inventory.

Sales Sub. The corresponding subaccount to be used with the reason code, only for reason codes not used in inventory.

1. Open Reason Codes screen (screen ID CS211000): Distribution > Inventory > Configuration > Setup > Reason Codes

Configure Inventory Preferences

Learning Objects:

• Learn about Inventory Preference Settings

Hands on – Configure Inventory Preferences

Use this screen to configure the Inventory module to suit your business. The settings include global settings for inventory items to be used in all modules, settings defining integration with the General Ledger module, and inventory-‐specific settings, such as numbering sequences used for inventory-‐related documents, transactions, and physical inventories.

Field Descriptions: Field Description Numbering Settings Batch Numbering Sequence

The numbering sequence to be used to assign reference numbers to batches generated for inventory documents.

Receipt / transfer

Numbering Sequence The sequence to be used to generate reference numbers for inventory documents created during receipt and transfer warehouse operations. Issue Numbering

Sequence The sequence to be used to generate reference numbers for inventory documents created during issue warehouse operations. Adjustment

Numbering Sequence

The sequence to be used to generate reference numbers for inventory documents created during adjustment warehouse operations.

Kit Assembly

Numbering Sequence The sequence to be used to generate reference numbers for inventory documents created during kit assembly warehouse operations. PI Numbering

Sequence The sequence to be used to generate reference numbers for inventory documents created during physical inventory operations. Replenishment

Numbering Sequence The sequence to be used to generate reference numbers for replenishment documents.

Inventory Options

Quantity Decimal

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Field Description Price/Cost Decimal

Places The number of decimal places to be used for prices and costs.

Weight UOM The unit of measure (UOM) to be used to calculate the weight of items for shipments.

Volume UOM The unit of measure to be used to calculate the volume of items for shipments.

Accounting Settings

AR Clearing Account The account to be used as an Accounts Receivable clearing account for inventory transactions.

AR Clearing Sub. The subaccount to be used with the Accounts Receivable clearing account. In-‐Transit Account The account to be used for in-‐transit transactions.

In-‐Transit Sub. The subaccount to be used with the in-‐transit account. Work-‐In-‐Progress

Account The account to be used work-‐in-‐progress transactions. Work-‐In-‐Progress Sub. The subaccount to be used with the work-‐in-‐progress account.

Posting and Retention Settings

Keep Transactions For

(Periods) The number of financial periods during which the transactions will be kept in the database. After the specified period expires, the transactions will be removed from the database.

Update GL A check box that, if selected, causes the inventory transactions to be posted to the General Ledger.

Post Summary on Updating GL

A check box that, if selected, allows posting of batches with summary data to the General Ledger. For these transactions, accounts that allow posting of summary values should be used.

Automatically Post on Release

A check box that, if selected, causes inventory batches to be posted to the General Ledger automatically once the inventory documents are released.

Data Entry Settings

Hold Documents on

Entry A check box that indicates (if selected) that new documents will be saved by default with the On Hold status. If the check box is cleared, the documents by default can be saved in the Balanced status.

Validate Document Totals on Entry

A check box that indicates (if selected) that the user will need to enter the document control total before saving the document.

Add One Unit per

Barcode A check box that indicates (if selected) that the item quantity on the receipt should be increased by one unit each time an item barcode is entered into the system, manually or by using a barcode scanner.

Automatically Add Receipt Line for Barcode

A check box that indicates (if selected) that when a barcode scanner is used, lines should be added to receipts automatically once a barcode is scanned or entered. Default Item Class The default item class to be used to provide default settings for new items of the

class and for new item classes.

Default Reason Codes

Receipt Reason Code The reason code to be used by default for generated receipts. You define the receipt reason codes, as well as the accounts and subaccounts related to these reason codes, by using the Reason Codes

Issue/Return Reason Code

The reason code to be used by default for all generated issue documents. You also define the issue reason codes, as well as the related accounts and subaccounts, on the Reason Codes screen.

Adjustment Reason

Code The reason code to be used by default for all generated adjustments. You define the adjustment reason codes, as well as the related accounts and subaccounts, on the Reason Codes screen.

Phys. Inventory Reason Code

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Physical Inventory Settings

Use Tags A check box that indicates (if selected) that inventory tags will be used for physical inventories. If the check box is cleared, physical inventory documents will be generated with line numbers only.

Last Tag Number The number of the last tag generated for physical inventory in the current financial year. When the next physical inventory document is generated, this value

incremented by 1 will be used as the first tag number in the document. At the beginning of financial year, the value is reset to 1000.

Turnover Periods per Year

The number of periods per year used to calculate the turnover for inventory items. You can enter one of the following numbers here: 1, 2, 3, 4, 6 or 12.

_{Subitem/Restriction
Groups}

Group Name The name of the subitem restriction group. Description The brief description of the group.

Active A check box that indicates (if selected) that the group is active.

Group Type A read-‐only column that shows the type of the restriction group. It can be one of the following types: A, A Inverse, B, B Inverse.

1. Open Inventory Preferences screen (screen ID IN101000): Distribution > Inventory > Configuration > Setup > Inventory Preferences

2. Uncheck Post Summary on Updating GL

3. We will review the current DEMO database default settings and do not plan to make any changes at

this time.

Create Unit of Measure

Learning Objects:

• Learn how to configure new units of measure by specifying how they can be converted to other units of measure available in the system.

Hands on – Define Unit of Measures

Unit of Measure screen is located under the Configuration section (screen ID 203100): Configuration > Common Settings User Settings > Units of Measure

This screen displays the reference table of unit conversions for the units of measure (UOMs) used in Acumatica ERP. You can add new units of measure by specifying how they can be converted to other units of measure available in the system.

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From Unit The unit to be converted.

To Unit The unit to which the unit specified in the From Unit will be converted with the use of the specified operation and specified conversion factor.

Multiply/Divide The operation to be performed for conversion of the From Unit to the To Unit. Select the Multiply or Divide option to perform conversions between those units of measure. Conversion Factor The factor to be used for the unit conversion with the specified operation.

1. Open Units of Measure screen (screen ID CS203100): Configuration > Common Settings > User Settings > Units of Measure

Create Warehouses

Learning Objects:

• Learn how to setup a warehouse

Hands on – Define Warehouse

You use this screen to define, view, and modify warehouses and their settings. After you have defined the settings for your company warehouses, you can use the Item Warehouse Details (IN204500) screen to set up the specific relationships between existing warehouses and inventory items, and to define the warehouse settings specific to each item-‐warehouse combination.

Warehouse ID The unique identifier of the warehouse. Branch The branch to which this warehouse belongs.

Replenishment Class The replenishment class associated with this warehouse. Replenishment classes are created using the Replenishment Classes (IN208800) screen.

Active The warehouse is Active.

Freeze Inventory When PI Count Is in Data Entry State

A check box that indicates (if selected) that the inventory in the warehouse will be frozen during the physical counting and data entry stages of physical inventory. If it is cleared, the inventory will be frozen only during the physical counting stage. Description A brief description of the warehouse.

Location Entry An option indicating whether warehouse locations can be added directly on any inventory document or only by using this screen. Select one of the following options:

• Do Not Allow On-‐the-‐Fly Entry: On-‐the-‐fly entry of the warehouse locations is not allowed; new locations can be added only on this screen.

• Warn But Allow On-‐the-‐Fly Entry: Users are allowed to enter new locations on the fly, but the system will warn the users before allowing new locations to be added.

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Field Description Avg. Default Returns

Cost The default item cost if the Average valuation method is used. FIFO Default Returns

Cost The default item cost if the FIFO valuation method is used.

_{Location
Table
Tab}

Receiving Location The warehouse location to be used to receive goods. Shipping Location The warehouse location to be used to ship goods.

RMA Location The RMA warehouse location. The location you select will be used for all goods return operations. The returned goods will be delivered to the specified location, regardless of the warehouse location selected by default for the receipt of these goods.

Drop-‐Ship Location The warehouse location used to account for drop shipments. The goods will actually be delivered to the customer’s location; by specifying this location, you can maintain data about the item quantities on drop shipments.

_{Location
Table}

Location ID The unique identifier of the warehouse location. Description A brief description of the warehouse location.

Active A check box that indicates whether this location is active. Include in Qty.

Available A check box that you select if the quantities of goods available at this location will be included in the quantities of available goods and used in inventory transactions, such as issues and transfers.

Cost Separately A check box that you select if the costs for goods available at this location will be calculated separately from costs calculated at the system-‐level; that is, for FIFO and specific valuation methods, separate cost layers will be created for this location. You cannot select this check box if this is the only location at the warehouse.

We recommend that you not change this option once it has been set.

Sales Allowed A check box that you select if sales are allowed from this location. Receipts Allowed A check box that you select if receipts are allowed at this location. Transfers Allowed A check box that you select if transfers are allowed for this location.

Assembly Allowed A check box that you select if assembly operations are allowed at this location. Pick Priority A value that indicates the priority of this location when items are chosen. The value

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Field Description Primary Item

Validation An option indicating whether the operations with the primary item should be validated for this location and how. Select one of the following options: • No Validation: No validation for this location is required.

• Primary Item Warning: Validation for this location is required only for the primary item, if another item is being received, a warning will be displayed. • Primary Item Error: Validation for this location is required only for the

primary item. The system generates an error if you try to save the purchase receipt if an item other than the primary item is being received.

• Primary Item Class Warning: Validation for this location is required for items of the primary item class. The system will display a warning if items of other than the primary item class are received.

• Primary Item Class Error: Validation for this location is required for items from the primary item class. The system generates an error if you try to save the purchase receipt with items from non-‐primary item class.

Primary item validation is enforced only for received goods.

Primary Item The primary item for this location, which is the item that is received the most often or stored here in the highest volumes. Select the appropriate item from the list of available inventory items.

Primary Item Class The primary item class for this location; items of this class are received the most often or stored here in the highest volumes. Select the appropriate item class from the list of available item classes.

Project The project to associate with this location by default. Project Task The project task to associate with this location by default.

_{GL
Accounts
Tab}

Override Inventory

Account/Sub. A check box that indicates to the system (if selected) that the preferred inventory account and subaccount are overridden for the warehouse. Inventory Account The asset account to be used to maintain the balance of inventory at this

warehouse.

Inventory Sub. The subaccount to be used with the inventory account for posting inventory transactions related to this warehouse.

Reason Code Sub. The subaccount to be used with any reason code for transactions originated in this warehouse.

Sales Account The income account to be used to record sales made from this warehouse. Sales Sub. The subaccount to be used for sales made from this warehouse.

COGS/Expense Account

The expense account to be used to record the cost of goods sold (COGS) when sales are made from this warehouse.

COGS/Expense Sub. The subaccount to be used with the COGS account for this warehouse. Standard Cost

Variance Account The expense account to be used to record differences between the extended standard costs of the inventory items received at this warehouse and their extended prices. This account is used only for transactions associated with inventory items for which the standard cost valuation method is assigned.

Standard Cost

Variance Sub. The subaccount to be used with the standard cost variance account. Standard Cost

Revaluation Account The expense account to be used to record differences between the values of the items at this warehouse when standard costs are updated. This account is used only for standard-‐valued inventory items.

Standard Cost

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PO Accrual Account The liability account to be used to accrue inventory based on purchase receipts for this warehouse. Whenever receipts based on purchase orders are released, the system generates a transaction between the purchase accrual account and the inventory account.

PO Accrual Sub. The subaccount to be used with the purchase accrual account for this warehouse. Purchase Price

Variance Account The expense account to be used to record any differences between the extended purchase prices of items received at this warehouse on purchase receipts and the extended costs of the items on related Accounts Payable bills. This account is used for inventory items with non-‐standard cost valuation methods assigned.

Purchase Price

Variance Sub. The subaccount to be used with the purchase price variance account for this warehouse. Landed Cost Variance

Account The expense account to be used to record any differences between the amounts of landed costs on purchase receipts and the amounts of landed costs on Accounts Payable bills for inventory items received at this warehouse.

Landed Cost Variance

Sub. The subaccount to be used with Landed Cost Variance account for inventory transactions related to this warehouse.

_{Address
Information
Tab}

Company Name The legal business name of the warehouse to appear on the documents.

Attention The department or person to be noted on the attention line, if this line is used by your company.

Email The email address of the contact person assigned to this warehouse.

Web The URL of the Web page where information about the warehouse is published. Phone 1 The primary phone number of the contact person assigned to this warehouse. Phone 2 A secondary phone number of the contact person assigned to this warehouse. Fax The fax number of the contact person assigned to this warehouse.

Address Line 1 The first line in the address of the warehouse. Address Line 2 The second line in the warehouse address. City The city of the warehouse address.

Country The country where the warehouse is located. State The state where the warehouse is located.

Postal Code The postal code relevant for the warehouse address.

View on Map A button that lets you navigate to an interactive map on the web and view the warehouse location.

1. Open Warehouses screen (screen ID IN204000): Distribution > Inventory > Configuration > Manage > Warehouses

Create Item Classes

Learning Objects:

(20)

Hands on – Define Item Classes

Define item classes, which are used to group stock or non-‐stock items with similar properties and to provide default settings for new items. You can browse through the existing item classes and modify their settings, add new classes, and delete unused (unpopulated) classes from the system.

Class ID The unique identifier of the item class. Description A description of the item class.

General Settings

Stock Item A check box you select to include only stock items in this class. Allow Negative

Quantity A check box you select to allow negative quantities for items of this class.

Item Type The item type that will be selected by default for new items of this item class. You can select one of the following options: Finished Good, Component Part,

or Subassembly.

Valuation Method The valuation method to be assigned by default to all stock items of the class. You can select one of the following options: Standard, Average, FIFO, or Specific. Tax Category The tax category to be assigned by default to new items of this item class. Tax

categories are defined by using the Tax Categories (TX.20.55.00) form.

Posting Class The posting class selected for the item class. Use the Posting Classes (IN.20.60.00) form to define posting classes and their settings.

Lot/Serial Class The lot/serial class to be assigned by default to new items of this item class. Use the Lot/Serial Classes (IN.20.70.00) form to define lot/serial classes and their settings.

Price Class The price class to be assigned by default to new items of this item class. Use the Item Price Classes (IN.20.90.00) form to define lot/serial classes and their settings.

Default Warehouse The warehouse that will be used by default for receiving and issuing the items of this item class.

Available Calculation

Deduct Qty. on Issues A check box you select to deduct (for items of the class) the quantities of issued items from the available quantities of these items.

Deduct Qty. on Sales

Orders A check box you select to deduct (for items of the class) the quantities of items on sales orders from the available quantities of these items Deduct Qty. Shipped A check box you select to deduct (for items of the class) the quantities of shipped

items from the available quantities of these items.

Deduct Qty. Shipping A check box you select to deduct (for items of the class) the quantities of items being prepared for shipping (prior to actual shipping) from the available quantities of these stock items.

Deduct Qty. of Kit Assembly Demand

A check box you select to deduct (for items of the class) the quantities of items allocated for kit assembly from the available quantities of these items.

Deduct Qty. on Back

Orders A check box you select to deduct (for items of the class) the quantities of items allocated to sales orders with the Back Order status from the available quantity of these items.

Include Qty. on Receipts

Distribution Training Guide. D100 Inventory Management: Basic

Certification Course Prerequisites

While many have completed this course online, you might encounter some challenges that

you would otherwise not face when done in our classroom setting.

Enable/Disable Features

Modify

Save

Segmented Keys

Important Note:

Table of contents

Inventory Objectives

Inventory Overview

Inventory Process Overview

Benefits and Additional Features

Create Posting Classes

Hands on – Define Posting Classes

Create Reason Codes

Hands on – Define Reason Codes

Configure Inventory Preferences

Hands on – Configure Inventory Preferences

Subitem/Restriction Groups

Create Unit of Measure

Hands on – Define Unit of Measures

Create Warehouses

Hands on – Define Warehouse

Location Table Tab

Location Table

GL Accounts Tab

Address Information Tab

Create Item Classes

Hands on – Define Item Classes

_{Subitem/Restriction
Groups}

_{Location
Table
Tab}

_{Location
Table}

_{GL
Accounts
Tab}

_{Address
Information
Tab}