Long Business Systems, Inc. (LBSi)

Management Software Solutions

We help businesses manage for success

Cleveland – Columbus – Cincinnati - Pittsburgh

Inventory ManagementPresented by: Vicki Smith

A general overview of the Inventory Master Data screens, Inventory Transactions and Reports

Agenda:

� General System Settings for Inventory

� Inventory Valuation Methods

� Cycle counts

� Physical Inventory

� Inventory Reports

G/L Account Determinations

� System settings defined will determine how inventory transactions will

affect the G/L accounts.

� Company Details

� General Settings

� Item Groups

� Warehouses

Inventory Valuation Methods

Three (3) valuation methods for calculating inventory value:

� Moving Average – Calculates the average cost for the item in each sales,

purchasing, inventory, and production transaction

� Standard – Calculates the inventory value by a fixed price which is used

for all transactions

� FIFO – Calculates the inventory value by First in – First Out method.

� Goods purchased first (or produced) are sold first

� Each inventory receipt transaction creates a stack of quantities linked to costs.

� Each inventory release transactions uses the quantities and costs from the top stack first

�Note: You can do the following:

� Manage all 3 methods in the same company

� Select a specific valuation method for each item

Preparation for Inventory/Cycle Counts

Make sure the warehouse is clean and organized!!!

� All inventory is in its designated stock location

� All shipments are processed

� All PO Goods Receipts are processed

� All production orders are transacted to date

� All RMA items are separated from the regular inventory into a

designated HOLD area.

� Make all necessary inventory adjustments to production orders or

inventory.

� Run the Inventory Valuation Simulation Report

� Stop all inventory transactions

� Perform copy of live database to demo prior to starting count

Defining Inventory Cycles

� Inventory Cycle Setups

� Go to: Administration > Setup > Inventory > Inventory Cycles

� Define for an Item Group

� Go to: Administration > Setup > Inventory > Item Groups

Linking Inventory Cycles to Items

� Manually link to items in a warehouses at warehouse row level

� Make sure cycle count fields are displayed in warehouse row

� Update Cycle Code and Next Count Date in Item Warehouse row

Initiate Cycle Count Recommendations

� Go To: Inventory > Inventory Transactions > Cycle Count

Recommendations

� Select cycle code and warehouse(s)

Note: If you have selected alerts when defining cycles, you will receive an

alert on the day the count should be initiated.

Generate Inventory Tracking Window

� Go to: Inventory > Inventory Transactions > Inventory Opening

Balances, Inventory Tracking, and Inventory Posting > Inventory

Tracking tab

� Update selection criteria as needed

� Click OK

�Tip: You can use Item Properties to get a specific selection

Generate Counts Sheets

� Displays items that are ready to count

� Note: unclick the Hide Quantity Stored box to see the on hand balances

� Print the Stocktaking Count Sheet and issue to warehouse for count

Record Counts

� Enter the counts in the Inventory Tracking screen

� As counts are entered, the counted box is automatically checked

� Zero counts show as blank – manually check the counted check box

� To compare count to on hand balance – uncheck the Hide Quantity

Stored box

� Click on the Update button when done entering counts

� Click on the “Set to Counted” in the Cycle Count Recommendations

window

Inventory Posting window

�Go To: Inventory Posting tab to review count variances

� Update selection criteria as shown below

� Be careful!! Price Source is important.

Review Counts & Variances� Review, print then post the cycle count

�Research items with variances and modify counts as required

�Note: counts are modified in the Inventory Tracking tab

�Update G/L account number, posting date and comments on screen

�Print the Inventory Posting report before posting

Inventory Reports

Various reports display cost, track, and reconcile inventory transactions.

� Inventory Audit report

� only report that reconciles to the Balance Sheet

� Last Prices Report

� shows price history for various system transactions

� Item List Report

� Overview of all items with price lists and quantity in stock

� Inventory Status report

� Overview of current stock including planned receipts and withdrawals. (Hot List).

� Inventory Posting List Report

� Details of all transaction postings in the system displayed by date and inventory balance at that date

� Inventory in Warehouse Report

� Shows current stock status, planned receipts and withdrawals, last receipt & issue date (slow movers)

Thank you for taking time to participate in the SAP Business One User Group Meeting.

Please take a few minutes to respond to our survey and provide us with feedback and suggestions going forward.

o We are always looking for new clients to work with. And we would like

to find more clients and partners like you – companies that are

engaged, smart, and focused on their future.

o Can you help us out by referring LBSi to someone who could benefit

from our services?

Next Meetings:

o Tuesday, Jan. 17, 2012

o 1099 Reporting

o Tuesday, Feb. 14, 2012

o TBA – Give us your ideas

Long Business Systems, Inc. (LBSi)

Cleveland – Columbus – Cincinnati – Pittsburgh

Contact Information:

Vicki Smith

Senior Consultant

email: vicki@lbsi.com

Phone: 440-846-8500 ext 22

www.lbsi.com