As your company grows, you'll find you need to start tracking inventory. Inventory is simply materials that are kept in stock for later use. Inventory is listed as an asset on the company balance sheet. Materials are ordered from various vendors using Purchase Orders and then, as the materials are received, placed in inventory. The quantity ordered and the cost of each item on a purchase order is agreed upon with the vendor. When the item is received at the warehouse the quantity times its cost creates the value of that item in inventory. As invoices are created, items in the bill of materials are subtracted from the quantity in inventory to arrive at a new computer count of the items left in the bin. Periodically, inventory must be maintained by physically counting the items in inventory and correcting the computer count.
The first step is to set up your "seed" inventory:
the items you normally keep in stock. From the Main Functions
Menu menu bar choose Activities, Inventory.
Click Add Items to show PricePoint's familiar pricing program. Simply pick the items from the database and don't worry about the selling prices. Adjust the prices in the Net column to agree with what you paid (on average) for each item. If you don't know what you paid, don't worry about it, just let PricePoint estimate your cost as usual. When you are done with your list, click Next and then click Finished to import the list into your "seed" inventory. If you forgot something, simply click Add Items again and find the new items to add. If you pick an item that's already present in your inventory, PricePoint will add the new item to the existing count in your inventory list.
Now that the Inventory shows your items, notice that as you move though the items the details of each selected item shows in the lower pane of the inventory window. At this point each item will have only a single detail, however, as new items are added through the purchase order process, more details will be added for each item. Each detail for an inventory item has a date stamp on it representing the date that it was stocked. This leads us to a discussion of an important concept in inventory control: how PricePoint arrives at the value of your inventory.
PricePoint takes the Computer Count of each item and compares it to the details on file. It first uses the value of the most recent items stocked, then those items less recent until it has arrived at the amount of items in the computer count from most recent to least recent. Cool, Huh? For example: if you have a bin with 100 fittings 50 of which were stocked today at a cost of 1.00, 25 fittings from last week at .75 and 25 fittings from 3 weeks ago at .50 then the value of the 100 fittings is (50*1.00) + (25*.75) + (25*50) = 81.25.
Rearrange the order of the items in your inventory by right
clicking on an item and using Cut and Paste. Your inventory list
also may be sorted by clicking Sort.
To delete an item and all of its' details from inventory, select the item and click Delete.
Print various inventory reports by clicking Print. The inventory worksheet is designed as an aid when counting items in your warehouse. The inventory value report may be of interest to your accountant.
Proper inventory control requires counting, lots of it. The computer count can be corrected so that it reflects the true quantity of items in inventory. Click on the Stock on Hand column and change it to the correct count and PricePoint will correct the computer count, change Last Counted to today's date and adjust the value of your inventory.
The reorder quantity is the minimum stocking level that you'd like to maintain on an inventory item. Setting a reorder quantity will allow you to create stock orders automatically when the computer count falls below that level.
This control allows you to set a percentage over your minimum stocking level. If this box remains at 0, then the quantity ordered will just bring inventory up to minimum levels. For example: click in the box and type 20 to set your restocking order to 20% above your reorder quantity.
Click Reorder Worksheet. The Inventory Reorder Worksheet will list all of the items that have fallen below the reorder quantity minimum level. There is a computer count and the order quantity so you can adjust your order as necessary. To print a worksheet of your restocking order so you can physically check it against the condition of your inventory, click Print Worksheet. If you need to reorder any additional items, simply select all those items in the inventory window and click Add Selected. Once you have your list like you want it, click Create Stock Order to begin a Purchase Order for these items.
Purchase Orders allow you to control the amount and price of items that you buy from vendors. These items may be placed into inventory or they may be special orders for customers.
From the Main Functions Menu menu bar choose Activities, Purchase Orders. The Purchase Order by Vendor window shows all the purchase orders on file for each vendor. Click New P.O. and choose the vendor from the list in the Find Payables Account dialog, or enter a new vendor by clicking New Account and entering in the name, address and Email for the vendor. Click OK to choose the Vendor.
The Purchase Order window opens with a blank PO. The ship to information is automatically filled out with your company's return address as all PO's are stock orders. The PO number is filled out and the date opened shows today's date. To add items to your PO click Add Items and pick from the database of parts. Before we do that, turn your attention to the Net Link combo box at the top of the PO window.
You can associate the vendor on this PO with one of the vendors in your Net List in Pricing. That way when you fill in the cost of each item on your purchase order and save it, you are updating the net list for this vendor in one step. That way, your pricing is in sync with the replacement cost of each item on the PO. Click the Net Link combo box and choose a vendor from your net list. Confirm that this is the correct vendor by clicking OK.
Once the vendor is linked, clicking Add Items will open the Pricing window with the correct vendor name highlighted in the Supplier Net Setting box. Choose the items from the database and click Next and the Finished to add the items to your PO.
A PO is really an agreement with your vendor to supply the quantities of each item at a specific price. Fill in the Cost column with that and change the Quantity column if need be. Leave the Qty Received column blank until the vendor delivers the goods to you. Click Save to save your purchase order.
Cost figures that you have entered for the items are saved to the linked net list. Filled items are sent to inventory. (see: Receiving the Items in the Purchase Order below)
Click Print to print out the PO or Preview the print out by clicking Preview. You can email the PO to your vendor as well by clicking Email. The email address is part of the Payables Account information. To fill in an email address, click Edit Vendor and fill in the email address for the vendor.
When the goods on your PO are delivered to your company, fill in the Qty Received column. When the Qty Received equals the Qty column, PricePoint will fill in the Stocked On column with today's date. These filled items are ready to go into inventory. When you save the PO with items that are filled, PricePoint will update your inventory counts to reflect the added items. Once an item is filled and saved, the item is disabled and you can't make further changes to the item. Once all the items in the PO are filled and saved, the Purchase Order is closed with the date the last item was filled.
Click Show Items not in Inventory.
Select the box next to the items you need to track in inventory and click Add to Inventory. The items will be added to inventory with a count of zero. When these items are filled on the purchase order, the counts will then reflect the items received.
Back to Features Summary