INVENTORY MANAGEMENT FUNCTIONAL FEATURES:
The primary objective of the Inventory Management System is to process
inventory information in an online environment so that specific procedures
are performed in seconds rather than the hours required by traditional batch
methods of computer processing. This system performs the basic stock entry
functions by providing a complete and accurate record of all transactions
affecting each item or product in inventory.
Specific functional features of this online Inventory Management
System are highlighted below:
1. Maintain Product Activity Records on each item in the inventory
reflecting a chronological history of receipts (ins) and sales
(outs).
2. Automatically update the inventory from completed orders in the
OE System so that manual entry of withdrawals (sales) is
minimized.
3. Print packing lists (IM12) for orders to aid in inventory picking
and order processing. Packing lists are printed on letter-size
paper for direct mailing to customers with the company heading
format specified by System-Option-01 (DB03).
4. Print management reports, such as Stock Status Report, Product
Activity Report and others, to provide an audit trail of data
entered into the IM System.
5. Maintain Product Master Records on each item in the inventory
handled by the company, including description, unit price, list
price, cost, quantity on-hand and other data fields.
6. Handle multiple warehouses by defining a separate Warehouse Code
as Code Definition Records (DB01).
7. Calculate economic order quantity (EOQ) and reorder point based
upon actual sales. The results of these inventory calculations
assist in stock replenishment decisions.
8. Calculate inventory value based upon actual cost, LIFO (Last In
First Out) or FIFO (First In First Out) method.
9. Maintain a separate onhold quantity field to reflect the quantity
sold in the OE System but not yet processed in the IM System by
procedure IM05.
10. Provide online inquiry capability to (1) query data elements about
a single product, and (2) display historical information about an
item in inventory.
11. Define an Active Flag to prohibit online entry of an inactive code,
product or customer yet keep that code for historical reporting
purposes.
12. Provide source document control over input transactions to the
computer by establishing batch numbers.
13 Provide the capability to create custom IM reports where the user
defines the data fields to be selected and printed (DB12).
14. Provide auxiliary input capability for initial file establishment
and the processing of input created by other computerized systems,
including separate data entry operations.
15. Automatically display a detail record (Product Activity Record or
Product Master Record) when function key F7 is pressed while in a
data entry procedure (IM01) and in inquiry procedure IM10.
16. Provide import and export capability using any PC ASCII file (comma
separated fields) containing inventory transactions (ins and outs).
17. Automatic item number assignment whenever the item name initials
are entered as the item number. Item initials are manually or
automatically set in the Product Master Record.
18. Handle item price discounts at the customer level.
19. Create kits or assemblies of a group of products already defined
in the system to support order processing. Each kit is assigned
its own item or product number.
20. Define inventory group codes (DB03) which group similar items for
processing and reporting purposes.
21. Print Price Lists (IM16) for a specific customer or all customers
and for a specific inventory group or all groups. Price lists are
printed on letter-size paper.
22. Automatically update the Order Status code as various IM procedures
are completed to reflect the current status of each order.
23. Provide system options in the Company Control Record to handle
6-digit and 8-digit dates for Y2K compliance.
The Inventory Management System monitors the status of all items in an
inventory as well as movements into and out of the inventory. When products
or items are received into inventory, the Enter Product Activity Record
procedure IM01 is executed to manually enter the quantity, cost, bin
location, date and other data about the item received. This same procedure
can be used to record items taken from inventory if the Order Entry System
is not installed. If the OE System is installed, then procedure IM05 is
used to automatically process completed orders and update the IM System with
items sold (outs).
Based upon the inventory activity (ins and outs) for each item, several
types of inventory calculations are performed to control and monitor the
amount of stock to carry:
a. Calculate economic order quantity (EOQ):
Based upon annual sales, cost of placing an order with a supplier
and the carrying cost the EOQ is mathematically computed for the
optimum quantity to order.
b. Calculate reorder point:
Based upon annual sales and safety stock, the reorder point (stock
quantity level) identifies when to order more stock.
c. Compute total ins and outs:
The total quantity received (ins) and sold (outs) is computed for
any time period and stored in the Product Master Record for
subsequent reporting or display.
An important design feature of the Inventory Management System and the
Order Entry System is the use of an Order Status code to track the order
through various stages of completion. Order Status codes are defined by
Code Definition Records, which allow the user to add new codes. The Order
Status code is automatically changed when various inventory management
procedures are executed as follows:
1. Procedure IM12 (packing list) changes the Order Status code
from 11 to 13.
2. Procedure IM05 (update inventory from filled orders) changes
the Order Status code from 51 to 55.
3. Procedure IM14 (purge) deletes old inventory records with a
Order Status code greater than 70.
Procedures OE01 and OE02 are used to manually change Order Status code.
MORE INFORMATION:
To receive additional information on this online accounting software,
please e-mail Bill Legler or go to the Inventory Management System page.
Version 7.3 - Copyright 2000 by Legler Systems Company. All rights reserved.