SpendMap User Guide (v15)

Zoom Window Out
Larger Text | Smaller Text
Hide Page Header
Show Expanding Text
Printable Version
Send Mail Feedback
Save Permalink URL

Navigation: Inventory Control > Setup System

Inventory Options

Scroll Prev Top Next More

INVENTORY CONTROL > Setup system > Inventory options

These settings affect various utilities in the Inventory Control Module.

Fields

Field

Description

Enable Inventory Module

•Check this box to enable the Inventory Control Module, then fill in your primary stock cost center in the field below.

•Please review Getting Started with Inventory Control.

Primary Stock Cost Center

This is your primary Stock Cost Center. You can optionally create additional Stock Cost Centers using the check-box in the Cost Center Master File.

This is used to determine whether or not to update perpetual inventory levels when items are received. For details, see The Use of the Stock Cost Center.

Related settings

To ensure that your Stock Cost Center is initially charged with all items to be kept in inventory, you can specify this Cost Center code as the Default Cost Center for all stock items in the Item Master File.

Value inventory/usages based on

This determines the value that will be charged to cost center history and budgets when inventory usages are processed, as well as how inventory will be calculated on various reports, such as the Inventory Valuation Report.

Valuation options...

FIFO value (ignore locations): This is the actual price that you paid for the items (i.e. the first-in-first-out value) and is the preferred inventory valuation method for most organizations.

The values are calculated by going backwards through past purchase orders, receipt and invoices to find the value of what you paid for each item that you have in stock, including additional/included costs such as non-recoverable taxes.

NOTE: If you maintain stock at multiple locations, please note that with this option, the FIFO value is calculated system-wide, across all locations (i.e. disregards the location that the item was initially purchased for and the location that the item is being removed from for the usage). Please see details on the location-based option, below.

FIFO value (location-based): This is the same as the previous option, only the FIFO value is maintained and calculated for each usage based on the transaction history FOR THE SPECIFIC LOCATION that the item is being removed from.

Standard Price: This is the value specified for each item in the Standard Price field in the Item Master File. If no Standard Price is entered for an item, it will be charged out at $0.00 (no value).

Standard Cost: This is the value specified for each item in the Standard Cost field in the Item Master File. If no Standard Cost is entered for an item, it will be calculated based on the information specified for the primary supplier.

FIFO inventory value – Open receipts

This is used to calculate the First-In-First-Out value of an item (e.g. to value usages or for the Inventory Value Report) when the item in stock came from a receipt transaction but the receipt has not yet been matched to an invoice.

If you use the average invoice value, the open receipt will be valued at the average value of all invoices for the applicable Purchase Order line item (which assumes, of course, that there are other receipts/invoices for the line item other than the receipt in question). If the PO line has not been invoiced at all, the PO value will be used.

Alternatively, you can use the Purchase Order value, in which case any invoices against the PO line item (for other receipts), if any exist, will be ignored.

FIFO inventory value – unresolved quantities

This is used to calculate the First-In-First-Out value of an item (e.g. to value usages or for the Inventory Value Report) when the system can’t find a receipt for the item and so the system will not have a corresponding PO and/or invoice to get the value from. This might happen if manual stock adjustments are made or when first setting up the system, before POs are processed.

Options...

Most recent transaction: SpendMap will use the most recent invoice or PO it can find. This assumes that the pricing/value of recent transactions is representative of the current value of items (it usually is).

Oldest transaction: SpendMap will use the oldest invoice or PO it can find. This assumes that any unresolved quantities came from before POs and invoices were being regularly entered into the system and so the value of the unresolved quantity is better represented by an older transaction.

Standard Price: This is the value specified for each item in the Standard Price field in the Item Master File. If no Standard Price is entered for an item, it will be charged out at $0.00 (no value).

Value at zero cost: Unresolved quantities will be valued at $0.00

Non-stock item valuation

This setting determines how non-stock items will be valued on applicable reports.

At the time of writing, this only applies to the BOM Valuation Reports but additional reports and/or screens may use this setting in the future.

Options...

Oldest transaction: SpendMap will use the oldest invoice or PO it can find.

Standard Price: This is the value specified for each item in the Standard Price field in the Item Master File. If no Standard Price is entered for an item, it will be charged out at $0.00 (no value).

Value at zero cost: Non-stock items will be valued at $0.00

Default value for ‘maintain stock’ when adding new item.

This determines whether the “Maintain Stock?” check box will default on (checked) or off (unchecked) when adding new items to the Item Master File.

This is a primarily a convenience (time saving) feature only. If most of your items are one way vs. the other, this can save a mouse click for each new item added to the system.

If all your items are maintained in stock, you might want to default all items to be Stock Items and optionally restrict access to the “Maintain Stock?” field in the Item Master File so that it cannot be changed, thereby eliminating the possibility of making a mistake.

Usage Work Area mode

The Usage Work Area can either be 1) a shared batch of usages that many users can work on (one user at a time), or 2) each user can have their own private Usage Work Area and users can work on Usages simultaneously.

The shared work area might be used where there is a single inventory location and stock is being managed by more than one person, whereas the private work areas would be more popular when there are multiple stock locations, each being managed by a different inventory manager.

Inventory Count Work Area mode

Same as previous setting, only for the Inventory Count Work Area.

Allow direct charge of stock while maintaining in-stock balance?

Check this box to use the "Direct Charge Stock" feature and allow items to be charged directly to end-user (Non-Stock) Cost Centers while maintaining the items in inventory at a zero dollar value.

For complete details, see the “Direct Charge Stock Items” sub-section in The Use of the Stock Cost Center.

Checking this box simply enables this feature and gives you the ability to define items as "Direct Charge Stock Items" in the Item Master File. You must then set up one or more items accordingly to start using the feature.

Print Packing Slips for Usages

Check this box to enable Packing Slips.

Only allow locations assigned to item

Check this box to only allow the Inventory Locations specified for the item to be used on Purchase Orders and other transactions, otherwise users will be able to select any location in the Location Master File when entering these documents/transactions.

Display/Calculate Stock Forecast

Check this box to display the ”forecasted number of weeks supply” for items (i.e. how long the applicable quantity will last) when entering Purchase Orders and other transactions and when viewing stock status.

Displaying/calculating the forecast consumes system resources so this feature can be disabled to maximize system performance, if needed.

How is the forecast calculated?

The amount of item history that is considered is based on the "number of months" setting, below.

The forecast is based on the average consumption (in the specified "number of months"), taking into account all usages (for stock items) or receipts (for non-stock items).

If there is no item history found, the Annual Purchases field in the Item Master File will be used to develop the forecast instead. If the Annual Purchases field is blank, the forecast will not be calculated.

Number of months
...forecasts

The number of months of history to consider when calculating the ”forecasted number of weeks supply” for items (i.e. how long the applicable quantity will last).

This will be used for the "Display/Calculate Stock Forecast" setting, above, as well as various reports that forecast stock usage.

Enter 999 to use the entire history of items in the forecast calculations.

The more history you include, the longer the calculations will take.

Display inventory balance on item lookups

This can be used to add a new column to item Lookup Lists showing the inventory balance of each item, when searching for items throughout the system.

TIP: Whether or not the inventory balance is included on the Lookup list itself, users can always use the [View] button on the Lookup list to view stock status.

SpendMap can display either the total amount In-Stock for each item, or the Available balance (in-stock less what has been reserved).

And if a user has a default Inventory Location specified in the User Master File, the inventory balances can be for the user's location only, or the total amount across all locations.