The Inventory sub-system is designed to maintain current stock information is respect of the value of purchases, sales and stock on sales orders and purchase orders. Inventory transaction details are maintained in full and are able to be cross-referenced with Debtor and Creditor transactions.
Transactions are kept for at least 2 years. Sales totals are also maintained for each of 12 last-year periods, 12 this-year periods and 3 next-year periods. In this way, comparisons for sales, etc. can be made between this year and next year. The 3 next-year periods allow you to keep processing without forcing an end-of-year, for at least 3 months after the end of the current financial year.
Transactions may be entered into the Inventory files in several ways. The most common is via Debtor Invoices (and Credits). When an Invoice is raised for an Inventory item, a transaction is posed to the Inventory files, the stock-on-hand is decreased and the sales and cost-of-sales are increased. Similarly, if a Creditor Purchase entered, the stock-on-hand and value-on-hand for the item is increased. If you do not wish to enter stock via purchases, you can still update your stock by one of several data-entry routines in the INVENTORY DATA ENTRY MENU. You can also run HiFinance without reference to stock, if you only sell and purchase services.
HiFinance offers several methods of calculating cost-of-sales. These include average cost, last cost and standard cost. For more information on these and how to set the system for your requirements see SYSTEM DEFAULTS (SECTION 7.2).
HiFinance also included the ability to separate stock on a location basis. This option must be separately enabled when you install the system. This option allows you to purchase and sell from specific locations and move stock from location to location. The enquiry and reporting facility can then report on the total situation and on the location-by-location situation.
The INVENTORY MENU is accessed as item 3 or <F3> from the MAIN MENU. On selecting this menu the following menu will be displayed:
To return to the MAIN MENU, press <ESC>.
Fields available on the INVENTORY MASTER file.
INVENTORY CODE This is the Inventory itemís code. This is the code by which the item will be referenced throughout HiFinance. It is an alphanumeric string from 1 to 15 characters long, without any leading or imbedded spaces. Please refer to APPENDIX A for a discussion of the ASCII collating sequence. This code is separate from any location name.
DESCRIPTION HiFinance allows for two lines of description. Each may be up to 50 characters long. The first line must not be left blank. The second line is not always printed on all reports (to save spaces). It may be used to extend the description of the item or to store alternate information, eg the foreign language name of the item.
PERIOD SALES† These are the sales totals (in units) for each by period for this item. These totals are only updated by Debtor transactions.
PERIOD Value† These are the sales totals (in dollars) for each by period for this item. These totals are only updated by Debtor transactions.
PERIOD PURCHASE UNITS†† These are the purchase totals (in units) for each by period for this item. These totals are only updated by Creditor transactions. These totals are normally only displayed in specific installations. In most installations, these totals are never maintained or displayed.
PERIOD COS These are the cost-of-sales totals (in dollars) for each by period for this item. These totals are only updated by Debtor transactions.
UNIT-OF-MEASURE††† In most installations, this is a non-compulsory field. The field appears on invoices to show your customers the units you are selling your goods in, eg EACH, DOZ, UNIT, etc.
BARCODE††† This is the main barcode number. HiFinance also provides for two other barcodes for packaging (see below). Reports can be sorted by this field.
OTHER KEY1, 2 & 3† This allows you to insert the Inventory item into any of 3 user-definable groups. Many reports can be sorted and totalled by these fields. These field will allow any code to be entered in upper or lower case. Care should be taken because searches and sorts will place the lower case entries after the upper case ones, eg a will come after Z. The name of this field may be changed in SYSTEM DEFAULTS, see SECTION 7.2.
GROUP††††† This allows you to insert the Item into an Inventory Group. Many Inventory reports can be sorted and totalled by Inventory Group. See also SECTION 220.127.116.11 - INVENTORY GROUP MAINTENANCE.
PRICES†††† HiFinance provides for 8 standard prices to be entered for each Inventory item. This is in addition to SPECIAL PRICING (see SECTION 3.5.1) and the ability to override the price at invoicing time. The default price picked up by the Invoice program depends on the PRICE CODE field entered on the Debtor, see SECTION 1. These prices are further overridden if a Special Price is active for a particular Debtor. See also QUANTITY BUY DISCOUNT, below. Note that you can change the description of the prices by using the SYSTEM DEFAULTS, see SECTION 7.2.
TAX RATE†† HiFinance allows for several tax rates to be defined. Here you define to the system, which rate is to be used. You do not enter the percentage rate here, rather you enter the rateís number (0 - 9) as defined in the TAX RATES, see SECTION 18.104.22.168. This allows you to change the percentage rates without having to go back to every Inventory item. Note that sales-tax is automatically overridden if you Invoice a Debtor who is claiming exemption. After 30/6/2000, Australia starts a new tax regime which excludes sales-tax. At this point the rate entered here will point to the GST rate instead. Entering a Sales-tax-number will not disable GST.
TAX BASIS† This field allows you to specify to the Invoice program the basis on which you wish to calculate the sales-tax. Normally, sales-tax is calculated on the sale price, eg sale price = $100; sales-tax rate = 20%; tax chargeable = $20. However, some companies sell wholesale and retail. In this case, you might be able to charge sales-tax on a fixed price (the wholesale price) even though you are selling retail. In this case, you would set the TAX BASIS to a number from 1 to 8 depending on which price represents wholesale. If you leave the TAX BASIS at zero, HiFinance will always charge tax on the actual sale price as described in the example.
RE-ORDER POINT This is a manually entered value representing the minimum stock level you wish to maintain. The RE-ORDER REPORT can then be used to highlight under-stocked items (see SECTION 22.214.171.124).
MAX-STOCK POINT††† This is a manually entered value representing the maximum stock level you wish to maintain. The OVER-STOCKED REPORT can then be used to highlight over-stocked items (see SECTION 126.96.36.199).
LEAD TIME (WEEKS)† This is a manually entered value representing the number of weeks you expect to have to wait for stock to arrive once it is ordered. This field is used in as an aid in the calculation of RE-ORDER POINT and MAX-STOCK POINT.
STANDARD PURCHASE PRICE This field is a manually maintained and is used to hold a standard purchase price for the item. This is used when the average and last-purchase prices do not accurately reflect the cost-of-sales. This option is often used by manufacturers and importers because the true cost-of-sales is a composite of the purchase price and other factors. During invoicing, HiFinance will use this field in preference to other options when calculating cost-of-sales.
LAST PURCHASE PRICE This field is updated by INVENTORY PURCHASING each time the item is purchased.
VALUE ON HAND Every time you purchase stock, HiFinance automatically adds the value of the purchase to this field. The field is then diminished by the cost-of-sales when the item is invoiced out.
UNITS ON HAND Every time you purchase stock, HiFinance automatically adds the number of units purchased to this field. The field is then diminished by the number of units sold (when the item is invoiced out). You can also affect this field by entering STOCK ADDITIONS.
UNITS ON PURCH ORDER††††††††† This field is automatically updated when Purchase Orders are entered, modified or converted to Purchases.
UNITS ON SALES ORDER††† This field is automatically updated when Sales Orders are entered, modified or converted to Invoices
DATE LAST SALE This field is automatically updated every time an Invoice is raised.
DATE LAST PURCHASE † This field is automatically updated every time a Purchase is raised.
LAST SUPPLIER Every time this item is purchased, the Creditor's code is entered here.
ALT.SUPPLIER & PURCHASE PRICE††††††††††† You may enter up to three alternate Creditors here. This information is purely documentary and is used to list alternate places you can purchase the item if the main Supplier is out of stock. You can also attach an expected price to each Supplier. There are no restrictions here, except that the Suppliers must also be Creditors.
FOREIGN CURRENCY††††††† This field is non-compulsory. It represents the foreign currency unit if this item is imported.
LAST PURCHACE PRICE FC† This field is non-compulsory. It represents the purchase price in a foreign currency unit if this item is imported.
CUSTOMS RATE % This field is non-compulsory. It represents customs rate payable if this item is imported.
FREIGHT FACTOR %††††††† This field is non-compulsory.
TARRIF ITEM ††††††† This field is non-compulsory.
SERIAL NUMBER††† This field is non-compulsory. It can be used to insert a serial number used by your supplier.
WEIGHT PER UNIT (KG)††††††††† This field is non-compulsory. In some invoice formats, this field is used to automatically calculate a weight for the Invoice and Con-note.
HEIGHT (MM) This field is non-compulsory. It allows you to enter the height of the item. This field can then be used by your packing and advertising staff. If entered, the value is in millimetres.
WIDTH (MM)†† This field is non-compulsory. It allows you to enter the width of the item. This field can then be used by your packing and advertising staff. If entered, the value is in millimetres.
DEPTH (MM)†† This field is non-compulsory. It allows you to enter the depth of the item. This field can then be used by your packing and advertising staff. If entered, the value is in millimetres.
QUANTITY BUY DISCOUNT % & UNITS†††††† These fields are non-compulsory. If they are left blank (zero) they have no effect. If you put a value in one field, you must match it with a value in the second. The UNITS represents a break point where a discount is given and discount is the value that HiFinance is to take off the sale price because the customer has purchased at least that quantity. This facility is used to penalise customers who purchase less than a full box. You enter the broken box price into the invoice price and a discount will be applied if sufficient items are purchased (eg a dozen).
CUBIC METRES - OUTER & INNER† These fields are non-compulsory. They are used in some installations on picking slips to aid the storeroom personnel.
UNITS - CARTON & INNER†††† These fields are non-compulsory. They are used in some installations on picking slips to aid the storeroom personnel and Salesmen.
UNITS - CONTAINER††††† These fields are non-compulsory. They are used in some installations on picking slips to aid the storeroom personnel and Salesmen. There are 3 fields here. They represent containers of 20 feet, 40 feet and 40 High Qube.
BARCODE - OUTER & INNER†† These fields are non-compulsory. They are used in some installations on picking slips to aid to purchasing.
NUMBER OF LABELS††††††† This field is non-compulsory. It is used in some installations when controlling label printing.
UNITS - ROW & PALLET††††††††† These fields are non-compulsory. They are used in some installations on picking slips to aid the storeroom personnel and Salesmen. The fields contain the number of units (boxes) per row on a pallet and the total number of units per pallet.
UNITS - CONTAINER 20FT, 40FT, 40HQ†††††††††† These are non-compulsory fields. They are used to store information regarding the shipment configuration when the Inventory item is imported.
NON-DECREMENTING STOCK?†† This field must be Y or N (the default is N). If you enter Y here, the Inventory item is flagged as a item that never actually holds stock. An item flagged this way can only be used in Purchasing. (See SECTION 2.3.1.) When these items are purchased, Stock-on-Hand is not updated. Instead, the General Ledger code specified in the next field is updated.
EXPENSED STOCK?†††††††††† This field must be Y or N (the default is N). This flag works in a similar way to the NON-DECREMENTING flag. The differences are that a) Stock-on-hand is not forced to zero and b) you can invoice these items. Value of Stock, in the inventory master-file is still always kept as zero. If you have stock that you wish to purchase and perhaps sell, but for which you do not wish the purchase value to go into Stock-on-hand (in the General Ledger) you can use this flag. This effectively expenses the purchase at the time of the purchase, rather than at the time of the invoice. As the value of the stock is zero, invoicing this item will not add anything to the Stock-on-hand or the Cost-of-sales account. Normally, this is irrelevant because the kind of items included here are normally consumables, eg packing materials, and these are not normally invoiced.
G/L ACCOUNT This field is zero unless the answer to NON-DECREMENTING STOCK or EXPENSED STOCK is Y. If so, you must enter a valid General Ledger code. Normally this would be an expense account.
USE CURRENT PRICES IN ORDER CONVERSION?†††††††††† This field must be Y or N (the default is Y). This field is not used unless you have chosen the option to carry current prices in order conversion. (See SYSTEM DEFAULTS 7.1.2.) Here you can override the system option for specific Inventory items.
OBSOLETE ITEM††† This field must be Y or N (the default is N). This field flags the item as an obsolete item. Obsolete Items force a warning when purchasing or selling below zero stock. Also, these items can be included or excluded from certain reports.
NON-STOCKED ITEM††††††† This field must be Y or N (the default is N). This field flags the item as item that is not normally held in stock. These items must be ordered-in. Non-Stocked Items force a warning when purchasing or selling. Also, these items can be included or excluded from certain reports.
TRACK SERIAL NUMBERS††††††††† This field must be Y or N (the default is N). This field is only relevant if you have the SERIAL NUMBER TRACKING option enabled. This is a separate add-on to HiFinance. If you are using the system, entering a Y here will cause the invoicing program to force you to enter serial numbers whenever this item is sold. These serial numbers can then be searched for using the SERIAL NUMBER TRACKING MENU (see SECTION 3.5.3S).
NOTE††††††††††††††††† This is a field that allows you to attach a comment to the account. For instance, you might use this to store details of non-Creditor alternate suppliers.
BULK LOCATIONS This is a link to a file that contains the locations of replenishment stock. This file, and associated fields, are not relevant unless the BULK LOCATIONS option is enabled.