Long Business Systems, Inc. (LBSi)

Management Software Solutions

We help businesses manage for success

Cleveland – Columbus – Cincinnati - Pittsburgh

Inventory Management

Presented 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

Go to: Administration > System initialization > Company Details > Basic

Initialization

To initialize the perpetual inventory system Use Perpetual Inventory

– This can not be unchecked once inventory transactions have been performed

Select Item Groups Valuation Method from drop down list (default

Go to: Administration > Set up > Financials> G/L Account Determinations

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. 15, 2013

o 1099 Reporting

o Tuesday, Feb. 12, 2013

o Landed Costs

Tip of the Day:

How To Run:

Inventory Audit Report

for large amounts of data

Check OB for Items/Accounts

Posting date to and from equal

to “today”

Tie out to Balance Sheet

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