Syspro Inventory Setup

7/25/2019 Syspro Inventory Setup

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Inventory

SYSPRO 6.1 SP1

Published: June 2012


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SYSPRO Authoring

Copyright 2012 Syspro Ltd

All rights reserved

No part of this document may be copied, photocopied, or reproduced in any form or by anymeans without permission in writing from Syspro Ltd. SYSPRO is a trademark of Syspro Ltd. All

other trademarks, service marks, products or services are trademarks or registered trademarksof their respective holders.Syspro Ltd reserves the right to alter the contents of this document without prior notice. Whileevery effort is made to ensure that the contents of this document are correct, no liabilitywhatsoever will be accepted for any errors or omissions.This document is a copyright work and is protected by local copyright, civil and criminal lawand international treaty. This document further contains secret, confidential and proprietaryinformation belonging to Syspro Ltd. It is disclosed solely for the purposes of it being used inthe context of the licensed use of the Syspro Ltd computer software products to which it relates.Such copyright works and information may not be published, disseminated, broadcast, copiedor used for any other purpose. This document and all portions thereof included, but withoutlimitation, copyright, trade secret and other intellectual property rights subsisting therein andrelating thereto, are and shall at all times remain the sole property of Syspro Ltd.


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Contents

Setup............................................................................................................................... 12Inventory Setup................................................................................................................................. 12

General................................................................................................................................... 12Options....................................................................................................................................24

History..................................................................................................................................... 34Periods.................................................................................................................................... 38

User Defined...........................................................................................................................40Documents.............................................................................................................................. 40

Current Month.........................................................................................................................42Depletion................................................................................................................................. 42Browse.................................................................................................................................... 44

Numbering...............................................................................................................................46Configurator............................................................................................................................ 50

Actual Costing Conversion Review...................................................................................................51Serials..................................................................................................................................... 52

Lots......................................................................................................................................... 52Processing Sequence.............................................................................................................52

Stock Code Maintenance..................................................................................................................54Stock Code Maintenance....................................................................................................... 54Stock Code Details.................................................................................................................58

Replenishment........................................................................................................................ 68Production Details...................................................................................................................75

Sales Details...........................................................................................................................79Tracking.................................................................................................................................. 87

Other....................................................................................................................................... 92Additional Fields..................................................................................................................... 93

Stock Codes...................................................................................................................................... 94

Stock Codes........................................................................................................................... 94

Stock Codes Listview............................................................................................................. 98Warehouses for Stock Code...........................................................................................................101

Warehouses for Stock Code................................................................................................ 101

Warehouse Maintenance for Stock Code.......................................................................................103Warehouse Maintenance for Stock Code............................................................................ 104Warehouse Maintenance for Stock Code............................................................................ 104

Maintain Hold Status.......................................................................................................................117Maintain Hold Status............................................................................................................ 117

Copy Stock Code............................................................................................................................ 118Copy Stock Code................................................................................................................. 118

Copy Stock Code................................................................................................................. 120Warehouse Maintenance.................................................................................................................121

Warehouse Maintenance......................................................................................................121

Copy Stock Codes to New Wh.......................................................................................................131Copy Stock Codes to New Warehouses............................................................................. 131

Copy Options........................................................................................................................132Validate Report..................................................................................................................... 135

Buyers Maintenance........................................................................................................................135Buyers Maintenance.............................................................................................................135Buyer Code Maintenance.....................................................................................................135

Inventory Planner Maintenance...................................................................................................... 136Inventory Planner Maintenance............................................................................................136

Unit of Measure Maintenance.........................................................................................................137


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Unit of Measure Maintenance.............................................................................................. 137Unit of Measure Maintenance.............................................................................................. 138

Alternate Stock Codes.................................................................................................................... 139Alternate Stock Codes..........................................................................................................139

Alternate Stock Codes Maintenance....................................................................................140Alternate Suppliers.......................................................................................................................... 142

Alternate Suppliers............................................................................................................... 142Alternate Supplier Maintenance........................................................................................... 143

Approved Manufacturer Maintenance............................................................................................. 144

Approved Manufacturer Maintenance.................................................................................. 144Example................................................................................................................................ 145

Approved Manufacturer Part Number Maintenance....................................................................... 145Approved Manufacturer Part Number Maintenance.............................................................146

Approved Manuf. Part Number Maintenance.......................................................................146Approved Manufacturer's Supplier Maintenance............................................................................ 148

Approved Manufacturer's Supplier Maintenance..................................................................148

Stock Code Price Maintenance...................................................................................................... 149StockCode Price Maintenance............................................................................................150

Pricing for a Price Code................................................................................................................. 151Price Code Price Maintenance.............................................................................................151

Stock Code Quantity Discounts......................................................................................................152Inventory Quantity Discounts............................................................................................... 152

Foreign Price Codes....................................................................................................................... 154Foreign Currency Price Codes.............................................................................................154

Foreign Purchase Prices.................................................................................................................154

Foreign Prices.......................................................................................................................155Foreign Price Maintenance.................................................................................................. 155

Inventory Sales Quantity History.....................................................................................................155Inventory Initial Sales Quantity History................................................................................ 155

Inventory Sales Quantity History Take-on........................................................................... 156Inventory Initial Aged Valuation...................................................................................................... 157

Inventory Initial Aged Valuation............................................................................................157

Aged Valuation Take-on.......................................................................................................157

Updating of Aged Valuation Buckets................................................................................... 158Inventory Document Format............................................................................................................160

Inventory Document Format.................................................................................................160

Format Options..................................................................................................................... 165Preferences...........................................................................................................................166Heading Section................................................................................................................... 170

Detail Section........................................................................................................................170Total Section.........................................................................................................................173

Serial Number Tracking Section.......................................................................................... 173MS Word Options.................................................................................................................174

Inventory Label Format................................................................................................................... 174Inventory Label Format........................................................................................................ 174Label Preferences.................................................................................................................175

Label Detail Section............................................................................................................. 176Price Section.........................................................................................................................178

Inventory Stock Take Ticket Format...............................................................................................179Inventory Stock Take Ticket Format....................................................................................180

Ticket Preferences................................................................................................................181Ticket Detail Section.............................................................................................................182

Transaction Processing.............................................................................................. 185Inventory Movements...................................................................................................................... 185

Inventory Movements........................................................................................................... 185Preferences...........................................................................................................................189


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Transaction Date.................................................................................................................. 192Receipts................................................................................................................................ 192

Adjustments.......................................................................................................................... 198Cost Changes....................................................................................................................... 201

Cost Modifications................................................................................................................ 203Transfers OUT...................................................................................................................... 204

Transfers IN..........................................................................................................................208Transfers IN (GIT)................................................................................................................ 210Immediate Transfers.............................................................................................................218

No Destination Transfers......................................................................................................221Physical Counts.................................................................................................................... 223

Bin Transfers........................................................................................................................ 224Expense Issues.................................................................................................................... 226

Backflushing..........................................................................................................................229Stock Information..................................................................................................................237Recap Totals.........................................................................................................................238

List of Journals..................................................................................................................... 239Journal Entries......................................................................................................................239

Cost Multiplier Calculations.................................................................................................. 241Actual Cost Allocation..................................................................................................................... 241

Actual Cost Allocation.......................................................................................................... 241Actual Costing Allocation Details......................................................................................... 242

Serial Entry for Receipts.................................................................................................................243Serial Number Capture.........................................................................................................243Manual Serials Capture........................................................................................................243

Batch Serials Capture.......................................................................................................... 246Effect of Serial Numbers on Transactions...........................................................................247

Inventory Document Print................................................................................................................250Inventory Document Print.....................................................................................................250

Report Options......................................................................................................................251Inventory Print Totals........................................................................................................... 253Inventory On-line Document.................................................................................................254

Price-Cost Percentage Change...................................................................................................... 256

Price/Cost Percentage Change............................................................................................256Price/Cost Percentage Change Criteria............................................................................... 256Price/Cost Percentage Change Review...............................................................................260

Minimum Quantity Calculation........................................................................................................ 260Minimum Quantity Calculation..............................................................................................260Information............................................................................................................................ 261

Report................................................................................................................................... 262Calculation Formula..............................................................................................................262

Stock Take System......................................................................................................263Stock Take System......................................................................................................................... 263Stock Take Query........................................................................................................................... 263

Stock Take Query.................................................................................................................263Warehouse Details............................................................................................................... 264

Stock Codes......................................................................................................................... 264Stock Take Selection...................................................................................................................... 266

Stock Take Selection............................................................................................................266

Stock Take Selection............................................................................................................267Selected Stock Codes Report..............................................................................................269

Stock Take Update..........................................................................................................................269Stock Take Update...............................................................................................................269

Stock Take Update Quantities and Costs............................................................................270Selected Stock Codes Report..............................................................................................271

Inventory Stock Take Tickets..........................................................................................................271


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Report Options......................................................................................................................271Stock Take Forms...........................................................................................................................272

Report Options......................................................................................................................272Output Options......................................................................................................................274

Inventory Stock Take Capture........................................................................................................ 274Stock Take Capture..............................................................................................................274

StockTake Quantity Capture by Stock Code......................................................................277Stock Take Quantity Capture by Ticket...............................................................................284Stock Take Quantity Capture by Bin................................................................................... 287

Stock Codes in Stock Take............................................................................................................ 292StockCodes in Stock Take for Warehouse.........................................................................292

Ticket Numbers for Warehouse......................................................................................................293Ticket Numbers for Warehouse........................................................................................... 293

Stock Take Import...........................................................................................................................293StockTake Import................................................................................................................ 293Stock Take Import Selection................................................................................................ 294

StockTake Import Report....................................................................................................296StockTake Import Report - HTML...................................................................................... 296

File Layout............................................................................................................................ 296Stock Take by Ticket...................................................................................................................... 299


Report Details....................................................................................................................... 301Inventory Stock Take Report By Stock Code.................................................................................301

Report Options......................................................................................................................301

Output Options......................................................................................................................302Report Details....................................................................................................................... 302

Stock Take Uncaptured Stock Quantities.......................................................................................303Report Options......................................................................................................................303

Output Options......................................................................................................................304Inventory Stock Take Variance Report...........................................................................................304

Report Options......................................................................................................................304

Output Options......................................................................................................................307

Report Details....................................................................................................................... 307Stock Take Confirmation.................................................................................................................307

Stock Take Confirmation...................................................................................................... 308

Confirmation Options............................................................................................................ 309Stock take Confirmation Error Report..................................................................................311Stock Take Confirmation Report.......................................................................................... 311

Stock Take Cancellation................................................................................................................. 312Stock Take Cancellation.......................................................................................................312

Warehouse Information........................................................................................................ 312

Serial Tracking System...............................................................................................313Serial Tracking System................................................................................................................... 313

Serial Number Header Maintenance...............................................................................................313Serial Number Header Maintenance....................................................................................313

Serial Number Take-On..................................................................................................................314SerialNumber Take-on........................................................................................................ 314Take-on Header....................................................................................................................315

Take-on Transaction.............................................................................................................316Transaction Posting.........................................................................................................................317

SerialTracking Transaction Posting.................................................................................... 317Transaction Details...............................................................................................................320

Serial Details.........................................................................................................................321Serial File Purge............................................................................................................................. 323

Serial File Purge...................................................................................................................323


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Information............................................................................................................................ 324Report................................................................................................................................... 325

Serial Number Maintenance............................................................................................................325Serial Numbers..................................................................................................................... 326

Browse on Serial Number Transactions.........................................................................................329Transactions for Serial Number........................................................................................... 330

Component to Parent Serial Tracking Query..................................................................................331Component to Parent Serial Tracking Query.......................................................................331Component to Parent Details...............................................................................................331

Component to Parent Serial Information..............................................................................331Reserved Serial Allocations for Stock Code...................................................................................332

Reserved Serial Allocations for Stock Code........................................................................332Component to Parent Tracking Query............................................................................................334

Component to Parent Tracking Query................................................................................. 334Serial Tracking......................................................................................................................335Lot Tracking..........................................................................................................................336

Serial File Balance Report..............................................................................................................337Report Options......................................................................................................................337

Output Options......................................................................................................................338Serial Tracking Report.................................................................................................................... 338

Report Options......................................................................................................................338Additional Options.................................................................................................................340

Service Options.................................................................................................................... 341Transaction Options..............................................................................................................342Output Options......................................................................................................................343

GL Integration.............................................................................................................. 344Inventory GL Integration..................................................................................................................344

Inventory GLIntegration Update..........................................................................................344

Information............................................................................................................................ 345Report................................................................................................................................... 346

Inventory Journals........................................................................................................................... 346Inventory Journals................................................................................................................ 346

Inventory Journal Report.................................................................................................................348


Report Details....................................................................................................................... 350Inventory GL Distribution.................................................................................................................351


Report Details....................................................................................................................... 354

Period End Processing............................................................................................... 355Inventory Period End.......................................................................................................................355

Inventory Period End............................................................................................................355Information............................................................................................................................ 356Report................................................................................................................................... 362

Warehouse Balance Report................................................................................................. 362Inventory Balance Report.....................................................................................................363

GIT Balance Report..............................................................................................................363Period End Reporting...........................................................................................................363

Balance................................................................................................................................. 363Month End............................................................................................................................ 365Year End...............................................................................................................................366

Purge.....................................................................................................................................366

Queries.......................................................................................................................... 369Inventory Query............................................................................................................................... 369


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Inventory Query.................................................................................................................... 369Stock Code Details...............................................................................................................375

Distribution............................................................................................................................ 376Production.............................................................................................................................377

Warehouse Values............................................................................................................... 378Warehouse History............................................................................................................... 383

Movements............................................................................................................................385Notes.....................................................................................................................................388User Defined.........................................................................................................................388

Custom Form........................................................................................................................389Goods in Inspection for Stock Code...............................................................................................389

Goods in Inspection for Stock Code....................................................................................389Inspection Transactions for GRN.........................................................................................391

Hold.......................................................................................................................................392Allocations for Stock Code..............................................................................................................392

Allocations for Stock Code...................................................................................................392

RMA for Stock Code.......................................................................................................................394RMA for Stock Code............................................................................................................ 394

Inventory Browse on BPO by Stock Code..................................................................................... 395Blanket Purchase Orders for Stock Code............................................................................395

Requisition Query for Stock Code.................................................................................................. 396Requisitions...........................................................................................................................397

Requisition Query Details................................................................................................................400Requisition Query Details.....................................................................................................400Details................................................................................................................................... 400

Routings................................................................................................................................ 401GL Commitment Status Query........................................................................................................401

Commitment Values............................................................................................................. 401Notation List.....................................................................................................................................402

Notation List..........................................................................................................................402Sales Orders for Stock Code..........................................................................................................403

Sales Orders for Stock Code...............................................................................................403

Sales Orders.........................................................................................................................405

Sales Order Selection.......................................................................................................... 407Purchase Orders for Stock Code....................................................................................................408

Purchase Orders for Stock Code.........................................................................................408

Browse on ECC Rev/Rel................................................................................................................ 412Revision/Release for Stock Code........................................................................................ 413

P/O Browse on Order Lines History...............................................................................................414

Detailed History for Purchase Order....................................................................................414Work in Progress for Stock Code...................................................................................................414

Work in Progress for Stock Code........................................................................................415Inventory Movements for Stock Code............................................................................................ 417

Inventory Movements for Stock Code..................................................................................417Movements for Stock Code..................................................................................................419

Quotation Query by Stock Code.....................................................................................................421

Quotation Query by Stock Code..........................................................................................422ECC Revision/Releases.................................................................................................................. 422

Revision/Release for Stock Code........................................................................................ 422ECC Stock Quantities..................................................................................................................... 423

Stock Information for Rev/Rel.............................................................................................. 423Stock Information for Rev/Rel.............................................................................................. 423

Parent Serial Reservations for Stock Code....................................................................................424

Parent Serial Reservations for Stock Code......................................................................... 424Parent Lot Reservations for Stock Code........................................................................................425

Parent Lot Reservations for Stock Code............................................................................. 425


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Parent Lot Reservations for Stock Code Listview............................................................... 426Inventory Journal Zoom.................................................................................................................. 427

Zoom on Inventory Journal.................................................................................................. 427Inventory Journal Zoom.................................................................................................................. 427

Inventory Journal Summary Details..................................................................................... 428Inventory Journal Summary Entries.....................................................................................428

Browse on Operations.....................................................................................................................429Stock Code for Operations Browse..................................................................................... 429Stock Code Details...............................................................................................................429

StockCode Information........................................................................................................430Operations.............................................................................................................................430

Customer Price Query.....................................................................................................................431Customer Price Query..........................................................................................................431

Best Price Details.................................................................................................................434StockCode Details...............................................................................................................436Last Price Paid..................................................................................................................... 438

Price Category/Code Table..................................................................................................438Inventory Prices.................................................................................................................... 439

Customer Contracts..............................................................................................................439Order Discounts....................................................................................................................439

Product Class Discounts...................................................................................................... 439Service Charges................................................................................................................... 440

Trade Promotions................................................................................................................. 440Inventory at a Glance..................................................................................................................... 441

Inventory at a Glance...........................................................................................................442

Valuation Criteria.................................................................................................................. 442Inventory Valuation At A Glance..........................................................................................444

Browses........................................................................................................................ 445Inventory Warehouses.....................................................................................................................445

Warehouse Maintenance......................................................................................................445

Suppliers forStock Code................................................................................................................447Suppliers forStock Code..................................................................................................... 447

Approved Manufacturers................................................................................................................. 448

Approved Manufacturers...................................................................................................... 448Approved Manufacturers Parts....................................................................................................... 449

Approved Manufacturer's Part Numbers..............................................................................449Cost Unit of Measure......................................................................................................................451

Inventory Cost Unit of Measure........................................................................................... 451Pricing for a Stock Code................................................................................................................ 453

Pricing for Stock Code......................................................................................................... 453Browse on GIT References............................................................................................................ 454

Goods in Transit References............................................................................................... 454

Goods in Transit Selection...................................................................................................456

Reports..........................................................................................................................458SRS Output Options........................................................................................................................458

Output Options......................................................................................................................458Inventory Valuation..........................................................................................................................465

Report Options......................................................................................................................465Additional Options.................................................................................................................469


Inventory Aged Valuation................................................................................................................471

Report Options......................................................................................................................471Other Options....................................................................................................................... 473

Inventory Movement Report............................................................................................................474Report Options......................................................................................................................475


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Movement Options................................................................................................................477Other Options....................................................................................................................... 478


Kardex Report................................................................................................................................. 479Report Options......................................................................................................................480

Other Options....................................................................................................................... 485Kardex Report Calculation................................................................................................... 486

Inventory Price List..........................................................................................................................487


Price History Report........................................................................................................................489Report Options......................................................................................................................489


ABC Analysis...................................................................................................................................490


Report Details....................................................................................................................... 492Classifications....................................................................................................................... 492

Warehouse Activity..........................................................................................................................492Report Options......................................................................................................................493

Report Filters........................................................................................................................ 495Output Options......................................................................................................................496

Stock Take Exception..................................................................................................................... 496


Warehouse Exception..................................................................................................................... 499Report Options......................................................................................................................499

Report Filters........................................................................................................................ 502Output Options......................................................................................................................503Report Details....................................................................................................................... 503

Superseded Clearing Stock............................................................................................................ 503


Purchasing Work Sheet.................................................................................................................. 506

Report Options......................................................................................................................506Criteria...................................................................................................................................508Output Options......................................................................................................................510

Report Details....................................................................................................................... 510Inventory Goods in Inspection........................................................................................................ 510


Report Details....................................................................................................................... 512Goods in Inspection Offsite.............................................................................................................512

Report Options......................................................................................................................512

Output Options......................................................................................................................514Inventory Amendment Journal........................................................................................................ 514


List of Buyers.................................................................................................................................. 514Report Options......................................................................................................................515Output Options......................................................................................................................515

List of Inventory Costs Um............................................................................................................. 516List of Inventory Cost Units of Measure.............................................................................. 516

Output Options......................................................................................................................516


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Inventory Notations..........................................................................................................................516Report Options......................................................................................................................516

Output Options......................................................................................................................518List of Planners............................................................................................................................... 518


List of Warehouses......................................................................................................................... 519Report Options......................................................................................................................519Output Options......................................................................................................................520

Inventory Label Print....................................................................................................................... 520Report Options......................................................................................................................520

Other Options....................................................................................................................... 522


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Copyright 2012 Syspro Ltd. All rights reserved.

Setup

Inventory Setup

You use the Inventory Setupprogram to define the setup options of your Inventory module.

The Inventory Setupprogram comprises the following tabs:

General

Options

History

Periods

User Defined

Documents

Current Month

Depletion

Browse

Numbering

Configurator

General

Field Values Description

FIFO valuation

FIFO valuation Select this to value your inventory on a First-In-First-Out basis.

Note:

Implications of selecting this option are that stock

on hand cannot be allowed to go negative in anywarehouse. However, items defined as Floorstock

(Stock Code Maintenance) and stocked in theFloorstock warehouse(WIP Setup) can have anegative balance (see WIP Issue Floor StockAllocations).

In addition, inventory costs cannot be held in a unit

of measure other than stocked.

If you selected the option: Costing per warehouse,

and the costing method for any warehouse is setto FIFO (Inventory Warehouses), then FIFO

valuation is automatically enabled and cannot be

deselected. When you select Actual costing, this option is

automatically selected, because Actual costing usesthe FIFO valuation architecture to track and process

costs.

Multiple bins Multiple bins can be enabled for all warehouses or for selected

warehouses only.

Refer to Multiple binsfor additional information.


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Multiple bins Select this if you require a specific bin to be entered when you

receive items into stock, issue items from stock, transfer itemsbetween warehouses and capture stock take information.

When you select this option, all warehouses are set to requiringmultiple bins. A single bin is created for each stock code/

warehouse combination with the entire quantity on hand forthe stock code/warehouse against it. If a bin location has been

defined against the stock code's warehouse, then this binlocation is used to generate the default bin, otherwise, thewarehouse code becomes the bin location.

Once you have enabled multiple bins for the company, youcan optionally disable bins for specific warehouses, using the

Warehousesfunction below. However, this function is availableonly after you save your settings and reload the InventorySetupprogram.

The following points should be noted if you change this option

after the system is up-and-running, particularly if sales orders

or lot numbers already exist on file:

When switching multiple bins on, the Purge and Archiveprogram is automatically run to ensure that the default

bin created is inserted into existing lot records and theirassociated transactions against your traceable or ECC

controlled stock items.

You should run the Balancefunction of the Order Purge

program to ensure there are no quantities in ship without binallocations.

If you activate this option at any time after the system hasbeen running without it, you must run the Balancefunctionof the Inventory Period Endprogram, to transfer the

quantity on hand to the default bin created.

When switching multiple bins off for all warehouses, the

system automatically performs the processes required toroll the bins (i.e. transfer the quantity on hand to the default

bins).

All bins are deleted against the stock code/warehouse

combination and all sales order bin allocations are deleted.The quantities on hand for stock items in the warehouse

are transferred to the default bin. The default bin locationis generated from the warehouse code if no default bin

is setup against the stock code/warehouse combination(Warehouse Maintenance for Stock Code).

The Purge and Archiveprogram is automatically run toensure that the bins are cleared from existing lot recordsand their associated transactions.

You can run the Balancefunction of the Inventory PeriodEndprogram and the Balancefunction of the Order Purge

program, although this is not a requirement.

Warehouses Select this to apply multiple bins selectively by warehouse.


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The Inventory Warehousesprogram is loaded automatically,enabling you to toggle the Multiple bins in useoption for

each warehouse. This facility is only available from within theInventory Setupprogram.

Note:

The Warehouses function is available only after youhave enabled multiple bins, saved your settings and

reloaded the Inventory Setupprogram.

When activating (or deactivating) multiple bins for awarehouse, a number of processes are performed

to ensure data consistency (see WarehouseMaintenance).

Amendmentjournals required

Yes Select this to retain details of any changes and deletions ofitems within the Stock Code Maintenance, Cost Implosion

and Lead Time Calculationprograms.

No Select this if you do not want to monitor information that has

changed for stock items held on file.

Yes, with additions Select this to retain details of any changes and deletions ofitems as well as any stock items that were added to the file.

Note:

You can print details of additions, changes and

deletions using the Inventory Amendment Journalprogram.

Rounding of WIPallocs to stockcode's max no ofdecimals

This is used when the number of decimals assigned to thestock item differs from the number of decimals specified at theQuantity per field for the same item.

5-up, 4-down Select this to round up decimal places of .5 or larger, and toround down decimal places of .4 or less.

Round up Select this to round up decimals. This option is appropriate onlywhere the full 3 decimal places is not held against the stockitem on the product master file.

Round down Select this to round down decimal places. This option isappropriate only where the full 3 decimal places is not heldagainst the stock item on the product master file. In this case,

you are advised to select the Round up option, as values lessthan 0.5 will be rounded down to zero.

Percentage

breaks for ABCanalysis


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A/B percentage

breakYou use this field to indicate the cut-off percentage for A and

B items for classifying on the ABC Analysis, based on theannual usage value of items (i.e. the total cost of each item

sold or issued over the past year).

This defaults to 80.

B/C percentage

breakYou use this field to indicate the cut-off percentage for B and

C items for classifying on the ABC Analysis, based on theannual usage value of items (i.e. the total cost of each item

sold or issued over the past year).

This defaults to 95.

Acceptable

cost variancepercentage

You use this field to indicate the percentage by which:

the cost of an item received into stock is allowed to differ

from the cost of the item held on file. Receipts includereceipts from Work in Progress and from Purchase orders.

a cost change to an item is allowed to differ from the cost ofthe item held on file (Inventory Movements).

A warning is displayed if this percentage is exceeded. You can,however, define a password which has to be entered when the

variance is exceeded. See Inventory override on inventory costvariance(Password Setup).

Note:

The warning does not apply to receipts if your

costing method is set to Standard costing, as itemsare receipted at standard cost and therefore no

variance occurs.

The warning only applies to cost changes made to

individual items and not to bulk cost changes (e.g.Price-Cost Percentage Changeand TransferBOM Costs to Wh Costs).

Reject import

receipts if costvariance exceeded

Select this if you want to reject imported job and purchaseorder receipts if they exceed the acceptable cost variancepercentage defined.

If you do not select this option then no check is performed to

ensure that the receipt cost does not exceed the acceptablecost variance percentage when importing job and purchaseorder receipts.

Note:This check is performed at the time of actuallyprocessing the import and not at the time of validating

the import file.

Costing method The costing method you select determines the manner in whichyour inventory is valued.

A single costing method can be applied to all warehouseswithin a company (costing at company level). Alternatively,

various costing methods can be used within the company, by


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assigning a costing method to a specific warehouse (costing atwarehouse level).

Note:

Once defined, changing costing methods must beconsidered in detail before proceeding with the change.

Refer to Costingfor additional information on inventory costingmethods.

Costing per

warehouseSelect this to apply costing methods selectively by warehouse.

You would typically use this option in cases where high value,

low usage items are stored in a separate warehouse andrequire a different method of costing (e.g. FIFO) for accuracy.Alternatively, you may manufacture and distribute a product

and want to apply Standard costing to your Work in Progressand Average costing to your distribution warehouse. This is

only relevant in locations where mixing costing methods is anacceptable practice.

When you select this option, each warehouse is set to requiringthe costing method you select on this tab page. Once you have

enabled costing per warehouse, you can optionally change thecosting method for specific warehouses, using the Warehouses

function. However, this function is available only after you saveyour settings and reload the Inventory Setupprogram.

If you do not select this option, then the costing methodselected here is used for all warehouses.

Warehouses Select this to apply the costing method you require to each

warehouse.

The Inventory Warehousesprogram is loaded automatically,enabling you to select the Costing method to use for eachwarehouse. This facility is only available when the InventoryWarehousesprogram is called from the Inventory Setup

program.

Note:

The Warehousesfunction is available only after you

have enabled the Costing per warehouse option,saved your settings and reloaded the InventorySetupprogram. However, stock for items definedas Floorstock(Stock Code Maintenance) and

stocked in the Floorstock warehouse(WIP Setup)

will always be allowed to go negative, regardless ofFIFO costing or your warehouse settings.

When activating (or deactivating) costing for awarehouse, a number of processes are performed

to ensure data consistency.

Apply warehouseBOM costs

Select this to use the BOM costs held against the warehousefor costing purposes for all stock items held in that warehouse.


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When you select this option, you use the Costing function ofthe Warehouses for Stock Codeprogram to define the BOM

costs to use for each warehouse.

If you do not select this option, then the BOM costs heldagainst each individual stock item are used for costingpurposes (Stock Code Maintenance).

In addition, if you do not select this option, then you will

be unable to process the cost implosion by warehouse(Component Where-used).

Note:

You should use the Cost Implosionprogram to roll-up

costs before selecting this option.

Average Select this to average out the unit cost of an item that isreceived into stock. This is calculated as the average between

the new cost of the item and the existing cost of the item heldon file.

The average cost is calculated at the time the transaction isprocessed. When a receipt is processed into a prior period, the

average cost is not recalculated.

Note:

If you want to switch from FIFO costing to Averagecosting, then you must run the Balancefunction of the

Inventory Period Endprogram and select the option:Recalculate current cost from FIFO bucketsbefore

changing to average costing.

If you do not recalculate the current cost from FIFO

bucketsbeforechanging to average costing, thenthere will be a difference between the Inventory

valuation and the General Ledger. You will need topost manual journals to correct these discrepancies.

Standard Select this to define a cost for each item and thereafter only

update this cost using the Cost Changesfunction of theInventory Movementsprogram or using the Transfer BOMCosts to Wh Costsprogram.

You typically select this option in a manufacturing environment

and when the costs of your items are relatively stable (i.e. notsubject to constant change).

Last cost Select this if you want to value your inventory according to the

last cost that was entered for an item when it was received intostock.

FIFO Select this if you want all stock receipts to create a new FIFO

bucket and all issues/sales to be made from the oldest bucketheld on file.

You can only select this option if you selected the option: FIFOvaluation.


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Note:

Implications of selecting this option are that stockon hand cannot be allowed to go negative in any

warehouse. However, Floorstockitems (Stock

Code Maintenance) stocked in the Floorstockwarehouse(WIP Setup) can have a negative

balance (see WIP Issue Floor Stock Allocations).

In addition, inventory costs cannot be held in a unitof measure other than stocked.

LIFO Select this if you want all stock receipts to create a new LIFO

bucket and all issues/sales to be made from the newest bucketheld on file.

Note:

You cannot select this costing method if:

Costing per warehouseis selected.

FIFO valuationis selected. Actual costingis selected.

Do not calculate

average cost onnegative receipt

Select this if you do not want the average cost of a stock item

to be recalculated when you post a negative receipt using theInventory Movements, Purchase Order Receiptsor JobReceiptsprograms.

If you do not select this option, then the average cost for a

stock item is recalculated only if the negative receipt doesnot cause the quantity on hand for the stock item to becomenegative.

Note:

Any variance between the current average cost andthe new cost entered is posted to the W/h variance

account configured against the warehouse (Inventory

Warehouses).

This option only applies if the costing method is defined asAverageat company level or against a specific warehouse. The

option is therefore only available if the Costing method is set toAverage,or if Costing per warehouseis selected.

Actual costing Actual cost tracking (also known as item or batch specific

costing) can be set for lot traceable and/or batch serializeditems.

Note:

Actual Costing overrides any other costing method

defined, either by company or by warehouse. Whenselected, Actual costing applies to all lot and/or

batch serialized items in Inventory.

Irrespective of your company costing methodand whether FIFO valuation is in place for all

warehouses, allactual costing items are processedusing FIFO costing at the detail level.


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Actual costing is only applied to new transactionsprocessed from the time you select this option.

Existing transactions are not changed.

Therefore, if you have stock on hand for an existingstock code/warehouse combination, you willbe prompted to manually allocate these to cost

buckets.

Actual costing uses the FIFO valuation architecture to trackand process costs, so when you select to use actual costing,the FIFO valuationoption is automatically selected if it is not

already selected.

In addition, if you are currently not using FIFO costingat

company level and Costing by warehouseis selected, then thefollowing message is displayed:

"When the current costing method is not FIFO then the actualcost bucket cost should be derived from:

Lot transaction value Current inventory cost

This enables you to indicate whether the costs for the actual

costing buckets must be derived from the lot/serial transactionvalue or the Inventory warehouse value. If a variance existsbetween the actual cost value and the warehouse value, a

variance journal is created with transaction type "t".

Note:

Existing warehouses which use FIFO costing

will base the actual cost buckets on the lot/serialtransaction value.

If you are currently using FIFO costingat companylevel and Costing by warehouseis notselected,then this message is not displayed. The actual

cost buckets are based on the lot/serial transactionvalues.

With actual costing, processing of the buckets is at stock code,warehouse and lot/serial level as opposed to only stock code/

warehouse level. Buckets retain the original receipt quantitiesto allow for accurate reversal of transactions when required.

You can indicate the number of days for which you want toretain history of these buckets on the History tab of this setup

program.

When actual costing is selected, the system creates FIFO

buckets for each lot and/or batch serial number.

Actual costing is applied in every program in Inventory, Sales

and Work in Progress that depletes or adds to a FIFO bucket.

Actual costing is not applied to manuals serials.

None Select this if you do not want to enable actual costing.

Lot traceable Select this to use actual costing for all lot traceable items.


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This option is only available if the Lot Traceability module isinstalled.

Note:

Costing by lot is only possible when manual lotnumbering is used (Lot Traceability Setup).

With Automatic lot numbering, you cannot processtwo receipts into the same lot.

The FIFO buckets table is used to retain the historyof costs for affected items. This caters for the

situation where you receipt quantities for the samelot from the supplier, but at different prices (due to

commodity price fluctuations).

When you select this option, the system performs the following

conversion procedure (see Actual Costing Conversion

Review):

Value the stock on hand for the item at the current valuation

method. Remove the existing FIFO buckets.

Per lot on the lot detail table:

Create a FIFO bucket for each positive Receipt, andTransfer In on the lot transaction table, recording the

cost from the transaction and the receipt date.

Process each negative transaction, running through theFIFO buckets for that lot, until the transaction quantity is

used up, updating the issue date.

At the same time, other positive transactions are

processed, based on the issue date.

FIFO journals are written for tracking purposes.

Once all transactions are processed, a list of all the lots thathave been processed and the FIFO buckets / costs created

is displayed in the Actual Costing Conversion Review

program. You can redistribute these if required.

The final process of the conversion is to check the valuationof each lot again and, if different from the initial value, topost a variance.

The lot number is recorded in the Inventory Journal Detailtable and the Inventory Movements table for tracking

purposes.

Batch serial Select this to apply actual costing to batch serialised items.

Note:

The following pre-requisites apply to setting actual

costing for batch serials:

If against any serialized stock item you selected:

Record serial numbers- During order entry(Stock

Code Maintenance- Tracking tab), then you need

to change these to Record serial numbers- Duringreceipt.


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With actual costing, serials must be captured at timeof receipt.

The option: Serial tracking system requiredmust beselected (Options tab).

If you are currently using serials, then beforeselecting this option, you need to run the Serial File

Balance Reportand ensure that all batch serialsare in balance.

When you select this option, the system performs the followingconversion procedure (see Actual Costing Conversion

Review):

Value the stock on hand for the item at the current valuationmethod

Remove the existing FIFO buckets

Per batch serial on file:

Create a FIFO bucket for each positive Receipt, and

Transfer In on the serial transaction table, recording thecost from the transaction and the receipt date.

Process each negative transaction, running through theFIFO buckets for that serial, until the transaction quantity

is used up, updating the issue date.

At the same time, other positive transactions are

processed, based on the issue date.

FIFO journals are written for tracking purposes.

Once all transactions are processed, a list of all thebatch serials that have been processed and the FIFO

buckets / costs created is displayed in the Actual Costing

Conversion Reviewprogram. You can redistribute these ifrequired.

The final process of the conversion is to check the valuationof each serial again and, if different from the initial value, to

post a variance.

The serial number is recorded in the Inventory Journal

Detail table and the Inventory Movements for trackingpurposes.

Note:

Actual costing does not apply to manual serials.

Auto depletion ofcost buckets

Select this to automatically deplete lots and/or serials whenprocessing multiple issues for the same lot/serial. The buckets

are depleted in bucket sequence.

If you do not select this option and more than one FIFO bucket

exists for the specific lot or serial, then you are prompted forthe bucket(s) from which to issue the quantity (see ActualCost Allocation).

Note:

This option only applies to issues in Work inProgress and Inventory.


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Cost buckets used in Sales Orders are always auto-depleted at the time the invoice or dispatch note is

generated. A credit note attached to an invoice ora reversal of a dispatch note will automatically find

the buckets used for the original transaction andreverse those.

Actual cost buckets are also automatically autodepleted when processing a Transfer out of a

warehouse (especially since you can process a bulktransfer out with apportionment from a Supply ChainTransfer (SCT)).

This option is ignored when processing negativeallocations in Work in progress. A negative

allocation mimics a receipt and therefore a newactual cost bucket is always created.

Record inventory

movements byserial or lot

Select this to be able to view details of actual costs used in

Inventory movements and on lot or serial transactions.

If you do not select this option, then the unit cost displayed isthe warehouse cost based on the costing method applied tothat warehouse (Warehouse Maintenance).

In addition, if you select this option together with actual costingfor batch serials, then movement records are created per

serial. If this option is not selected, then a movement record iscreate for the transaction.

Stock on handallowed to go

negative

Note:

Traceable, serialized, and ECC-controlled items will

not be allowed to go negative, regardless of yourwarehouse settings.

Floorstock items stocked in the Floorstockwarehouse (WIP Setup) and Returnable items(Stock Code Maintenance) will always be allowed

to go negati