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c. Inventory (Stock)

In many cases due to the English background of the developer, Inventory is referred to as "stock", which can be confusing to some. The word "stock" is used interchangeably with "inventory" throughout.

Inventories fall into clear categories particular to the business. For example a toy factory might have categories for lego, rideons, board games etc . These are referred to as stock categories and are expected to be defined by the business. The name of the category (but not its code) can be altered at any time.

Note: Integration to the general ledger is at the stock category level. The posting to the general ledger is determined by reference to the stock category of the item together with the sales area and the sales type. Separate tables of general ledger codes for sales and cost of sales are maintained from the System Setup tab of the main menu.

Inventory invoiced using the invoicing option will decrease the stock on hand from the stock location specified in the invoice. Inventory credited using the credit note creation option will increase the stock held at the location selected in the credit note. Inventory adjustments to the quantity held are also possible and transfers between stock locations.

A record of each stock movement is maintained, stock movements originating from sales invoices, purchase orders received, stock adjustments, sales credit notes can all be viewed using the inquiry of stock movements. Summing the stock movements provides an easy mechanism to see the historical usage and an inquiry is also available to show usage by month.

Inventories can be valued at either standard cost (manually maintained costs) or weighted average cost (automatically maintained). If general ledger stock integration is active, general ledger postings are created for stock adjustments, standard cost amendments, cost of sales and stock movements on invoicing and crediting. When stock journals are used, provided that the balance of the stock accounts agrees to the current valuation of the stock at the time when the flag is set in the company preferences page, then the value of stock held will be maintained in the general ledger, with a full trail of general ledger journals for each stock movement. This does make for a busy, but informative general ledger in a high use environment!

Note: Inventory journals are optional. The sales ledger/accounts receivable interface is separate to the stock general ledger interface so it is possible to have sales posting to the general ledger but not the inventory and cost of sales aspect.

Inventory System Features

  • Multiple warehouses, stock quantities maintained for an unlimited number of locations.
  • Prices for a stock item can be set for each sales type defined in any (and all) currency (ies) allowing great pricing flexibility.
  • Automatic back ordering. Sales orders yet to be delivered can be automatically back ordered at the time of invoicing or the balance of the order cancelled as appropriate.
  • History of stock movements maintained by stock item.
  • Allows Dummy stock items which can be invoiced, priced, cost but with no stock record maintained for items such as labor or services.
  • Kit-set parts can be defined. An order for a kit-set part explodes into the components defined for the parts at the predefined quantities as extended by the number of the kit set item ordered. These component quantities are then available on the order for modification by the user.
  • Assembly parts can be defined in a similar way to kit sets. These parts exist only for ordering, invoicing and sales analysis. No stock balance is maintained, instead, the quantities of the components are updated in proportion to the quantity defined in the assembly.
  • Each inventory category can have an unlimited number of properties. Each item of that category can then record its value for each property. Like additional fields depending on the type of inventory.
  • Inventory can be set to serialized - where each item of inventory requires its own serial number.
  • Inventory can be set to batch controlled - where each batch/lot of inventory of an item must refer to a batch or lot reference
  • Invoice and credit note inquiries are linked to stock movements so the detail of items sold on an invoice can be queried.
  • Standard cost maintained and valuation reports
  • Inventory usage by month inquiry by location and overall
  • Inventory planning report
  • Integration with purchasing, accounts payable, accounts receivable and general ledger.
  • Any number of custom fields can be added specific to each inventory category
  • Internal stock requests with departmental authorisation