IM0000 Inventory Management Package Overview 1

Overview

Package Overview

How To Use This Manual

When most people receive a new product, they want to use it right away.  Unfortunately, this is not quite possible when dealing with computer hardware and software.  This manual is intended to serve as a reference guide in describing the functionality and the application of the Inventory Management package. 

The first few sections of this manual are intended to introduce the user to the Inventory Management (I/M) system and help get started.  The latter sections are for reference when the user has specific questions about each of the Inventory Management applications.  These applications are described later in this section under I/M Menu Bar Selections and Definitions.

 It is suggested that the user first read the System Manager manual. The Package Overview section of this manual gives an overview of the Inventory Management package. The General Operator Instructions in the System Manager manual explains how to enter and edit data and the use of special keys on the keyboard.  The Startup section gives step‑by‑step instructions on how to load the programs, create the data files, and enter the initial data.  The Processing Procedures section gives direction in daily, period and year ending procedures.

The user should then scan each of the I/M sections to under­stand how each of the I/M applications work.  A very basic description of each of these applications is also contained under the heading I/M Menu Bar Selections and Definitions which is part of this Package Overview.

Data Load Sheets are included in this manual under many of the applications.  These sheets may be used to manually fill out the data that must be entered at the computer.  They may be helpful in easing data entry.


Global Setup

There are many “Pick& Choose” features in the Util-Setup and Global Setup section of this manual that can improve functionality and productivity.  The user should review these and choose accordingly.

 

A General Explanation Of Inventory Management

 It can be very beneficial to you to have some understanding of the basic terms and concepts that will be used throughout the rest of this manual.  Even if you have already had a great deal of experience with Inventory Management packages, it will be helpful to read through this general discussion of I/M to get an idea of how this package has put the basic principles to use. 

Inventory Management

The Inventory Management package centers around one file, the In­ventory Item File.  This file contains a record for each different inventory item, which exists in inventory.  A large amount of information is stored in this file for each item.  Some examples of the type of information stored are listed below: 

A description of the item

The quantity of the item currently on hand

The quantity of the item currently on order

The last price you paid for the item (last cost)

The average price you have been paying for the item (average cost)

The quantity used this year and this period

The quantity sold this year and this period

The weight of the item

The forecasted usage of the item for the next period

The warehouse location of the item

If a particular inventory item is stored at more than one warehouse, the package will store information on the quantity on hand and avail­able at all of the different warehouses as well. 

Receivings, Issues, Transfers, And Adjustments

 Events which can affect the quantity on hand figures and their appropriate distributions in the package include transfers of items from one warehouse to another, issues of inventory items to the shipping department or to the shop for assembly and receivings into stock of inventory items.  These events are re­corded as inventory transactions, which update the Inventory Item File and other related files.


Physical Counts

 In almost all Inventory Management packages, the actual quantities of each inventory item will drift away from the theoretical quantities, which are stored on file over a period of time.  This can be the result of theft, breakage, miscounting, data entry errors, etc.  Therefore, it is necessary to periodically count the inventory items and correct the data, which is on file.  An application called Physical Count Processing in the Inventory Management package provides a few tools to make this an easier task.


Kitting

The I/M package allows the use of kits.  Kits consist of a group of items (components), which are assembled to make an item that can be sold (a kit parent item).  This type of structure is essentially a flat bill of material.  The kitting feature provides the benefits of a simple bill of material system without the expense of purchasing an entire bill of material software package.  Companies with multi-level bills of material will need to use the Elliott BOMP package.  Customer Order Processing supports kits in its Order Entry application.

 

Inventory Value

 Elliott Software allows you to choose one of five different methods to measure the value of your inventory.


Average Cost Method

 Throughout the system, Average cost is referred to as FOB Cost and Landed Cost.  With this method, the value of your inventory is calculated by multiplying the quantity of the item received by the item's average cost. The average cost is updated when the quantity is received into inventory (quantity added times item cost).  The following is an example of the average cost method. 

                         Date       Units     Cost       Total                     

Beginning Inv.          8/31/89      100    $ 5.0000   $ 500.00 

Purchase                9/10/89      100    $ 7.5000   $ 750.00     

                                     ‑‑‑               ‑‑‑‑‑‑‑‑

                                     200             $ 1,250.00

New Average Cost =  6.2500  (1,250 divided by 200)

 

 NOTE: If you are using the LIFO or FIFO cost method, average cost will also be updated when an item

            is sold or when an item is issued from inventory.  Otherwise average cost will only be updated

            when the item is received.

 

Last Cost Method

 With this method, the value of your inventory is calculated by multiplying the quantity of the item relieved by the item's last cost. The last cost is updated when the quantity is received into inventory. This is the cost of the item when it was received last or its current cost.  The following is an example of the last cost method.   


Transaction              Date        Qty      Cost       Total             

Beginning Inv.          8/31/89      100    $ 5.0000   $ 500.00

Purchase                9/10/89      100    $ 7.5000   $ 750.00

                                     ‑‑‑               ‑‑‑‑‑‑‑‑

                                     200             $ 1,250.00

New Last Cost =  7.500

 

Standard Cost Method

 With this method, the value of your inventory is calculated by multiplying the quantity of the item relieved by the item's standard cost. The standard cost is not updated when the quantity is received into inventory. To change the standard cost, you must manually change it through Item File Maintenance.

 

FIFO Cost Method (First‑In, First‑Out)

 With this method, the value of your inventory is calculated by multiplying the quantity of the item relieved by the item's FIFO cost. The FIFO cost method assumes that the cost of the first items received should be assigned the first items sold.  Each time an item is received a layer record is written to the LIFO/FIFO layer file and each time an item is sold a layer is removed.  If the quantity needed is greater than the first layer then the cost of the next layer will be used for the balance of the quantity. The following is an example of the FIFO cost method.  

Transaction               Date        Qty      Cost      Total              

*Purchase                9/01/89      100    $ 5.0000   $ 500.00

 Purchase                9/05/89      100    $ 7.5000   $ 750.00

 Purchase                9/10/89      100    $ 6.0000   $ 600.00

 Purchase                9/15/89      100    $ 6.5000   $ 650.00

                                      ‑‑‑              -‑‑‑‑‑‑‑‑

Total Inv. Value (Before)             400             $ 2,500.00

 

* This transaction could actually be a receipt transaction from the Inventory Transaction Processing application in I/M, a receipt transaction from the Receivings Processing application in P/O, or a posted credit memo from COP.

 

Let's assume by 9/25/89 we sold 250 of this item.  The following FIFO costs would be used.  The date of the sale or issue transaction has no impact on the FIFO costs used.

 

   Transaction               Date        Qty      Cost      Total                     

*Sold                    9/01/89      100    $ 5.0000   $ 500.00

 Sold                    9/05/89      100    $ 7.5000   $ 750.00

 Sold                    9/10/89       50    $ 6.0000   $ 300.00

                                      ‑‑‑               ‑‑‑‑‑‑‑‑

Total Cost of Goods Sold              250             $ 1,550.00

 

* This transaction could actually be an issue transaction from the Inventory Transaction Processing application in I/M or a posted invoice sale from COP.

 

After the item is sold the following would be the new value of inventory and the remaining FIFO layers.

 

Transaction               Date        Qty      Cost      Total                     

Purchase                 9/10/89       50    $ 6.0000   $ 300.00

Purchase                 9/15/89      100    $ 6.5000   $ 650.00

                                      ‑‑‑                 ‑‑‑‑‑‑

Total Inv. Value (After)              150               $ 950.00

 

A further explanation on the implementation of FIFO is contained under Inventory Transaction Processing. 

 

LIFO Cost Method (Last‑In, First‑Out)

 With this method, the value of your inventory is calculated by multiplying the quantity of the item relieved

by the item's LIFO cost. The LIFO cost method assumes that the cost of the last items received should be

assigned the first items sold.  Each time an item is received a layer record is written to the LIFO/FIFO layer

file and each time an item is sold a layer is removed.  If the quantity needed is greater than the first layer

then the cost of the next layer will be used for the balance of the quantity. The following is an example of

the LIFO cost method.  

 

Transaction               Date        Qty      Cost       Total                    

Purchase                 9/01/89      100    $ 5.0000   $ 500.00

Purchase                 9/05/89      100    $ 7.5000   $ 750.00

Purchase                 9/10/89      100    $ 6.0000   $ 600.00

Purchase                 9/15/89      100    $ 6.5000   $ 650.00

                                      ‑‑‑               ‑‑‑‑‑‑‑‑

Total Inv. Value (Before)             400             $ 2,500.00

 

The actual applications that can create this type of transaction are explained under FIFO Cost Method.       

 

Let's again assume by 9/25/89 we sold 250 of this item.  The following LIFO costs would be used.  The date of the sale or issue transaction has no impact on the LIFO costs used.  

 

Transaction               Date       Units     Cost      Total

Sold                     9/05/89       50    $ 7.5000   $ 375.00

Sold                     9/10/89      100    $ 6.0000   $ 600.00

Sold                     9/15/89      100    $ 6.5000   $ 650.00

                                      ‑‑‑               ‑‑‑‑‑‑‑‑

Total Cost of Goods Sold              250             $ 1,625.00

 

The actual applications that can create this type of transaction are explained under FIFO Cost Method.       

 After the item is sold the following would be the new value of inventory.

 

Transaction               Date        Qty      Cost      Total                     

Purchase                 9/01/97      100    $ 5.0000   $ 500.00

Purchase                 9/05/97       50    $ 7.5000   $ 375.00

                                      ‑‑‑                ‑‑‑‑‑‑‑

Total Inv. Value (After)              150               $ 875.00

 

A further explanation on the implementation of LIFO is contained under Inventory Transaction Processing. 

 

Inventory Management

  1. Long-Term vs. Short-Term Inventory Quantity Available and Inventory with Time Line
  2. Introduction to Available to Promise (ATP)
  3. Inventory Aging Report by Location Sequence Produces Different Result Than by Other Sequence
  4. Inventory Aging Report Shows Different Age Between Single and All Locations
  5. Multiple Users Entering Physical Count Tag at the Same Time Issue
  6. Expand Item Description 1 and 2 Character Limit
  7. How Different is an IM Kit from a BOMP Kit?
  8. Explanation on Component Availability Inquiry
  9. How Is Shortcut Item Different from Kit Item?
  10. No Privilege to View Location History
  11. How to Calculate EOQ (Economic Order Quantity)
  12. Item Quantity Allocation Is Incorrect
  13. Reorder Advice Custom CSV Export Shows Zero Items
  14. Elliott Physical Count Processing
  15. Feature - Add-On Item Drill Down From Item Search
  16. Feature - Utility to Reset Item PTD Fields from Location History
  17. Feature - Inventory Snapshot
  18. Feature - ATP Regen to Consider Order Multiple and Economic Order Qty
  19. Feature - Item Master Activity Sub-Code
  20. Feature - Add Support for the Update of “Mostly Mfg Flag” in Change Existing Item Import
  21. Feature - Auto Delete BOMP Product Structure When Item Obsolete
  22. Feature - Item Linkage Report/Processing
  23. Feature - Added the Ability to Organize Product Categories by a New Product Category Group
  24. Procedure to Correct Bad Serial Number with Special Symbol
  25. Feature - Additional SY12MONS Updates
  26. Feature - Additional Activity Codes for Item Linkage CSV Report and Item Linkage Processing
  27. Feature - Item Number Wild Card Support for Starting Item Number
  28. Feature - Obsolete Kit Parent When First Component is Obsolete
  29. Feature - Show Items with Qty Variance on Tag Variance Reports
  30. IM01S3 Inventory Management Iten Audit Trail Report
  31. IM04S2 Inventory Management Inventory Transaction Audit Report
  32. IM02S2 Inventory Management Inventory Location Audit Trail Report
  33. IM03S1 Inventory Management Usage Exception Reports
  34. IM06SCN Inventory Management Stock Status Report
  35. IM08S1 Inventory Management Print Cycle Count Worksheet
  36. IM14S1 Inventory Management Item History Report
  37. IM19S1 Inventory Management Serial/Lot Stock Status Report
  38. IM19S2 Inventory Management Serial/Lot Issue History Report
  39. IM20S1 Inventory Management I/M Distribution to G/L Report
  40. IM26SCN Inventory Management Frozen Stock Status Report
  41. IM30S1 Inventory Management Kit Where-Used Report
  42. IM31S1 Create Unreleased POs by Vendor
  43. IM32S1 Inventory Management Kit Gross Requirements Report
  44. IM0201 Inventory Management Location Control File Maintenance
  45. IM0405 Inventory Management Available To Promise Inquiry
  46. IM0500 Inventory Management Stock Status Inquiry
  47. IM0500Q Inventory Management Stock Status Inquiry
  48. IM0700 Inventory Management ABC Analysis Reports
  49. IM0900 Inventory Management Reordering Advice Reports
  50. IM1000 Inventory Management Physical Count Processing
  51. Feature - Utility to Reset Item PTD/YTD Fields from Location History
  52. IM1100 Inventory Management Utilities Setup
  53. IM1201 Inventory Management Location File Maintenance
  54. IM1300 Inventory Management Recalculate Reorder Fields
  55. IM1400 Inventory Management Clear Item Accumulators
  56. IM1501 Inventory Management Product Category File Maintenance
  57. IM1601 Inventory Management Material Cost Type File Maintenance
  58. IM1701 Inventory Management Material Cost Type/Loc File Maintenance
  59. IM1801 Inventory Management Buyer/Analyst Code File Maintenance
  60. IM1901 Inventory Management Initialize Lifo/Fifo File
  61. IM1902 Inventory Management Adjust Item File to Lifo/Fifo
  62. IM1903 Inventory Management Serial/Lot Processing/Multi-bin Utilities
  63. IM1904 Inventory Management Serial/Lot Stock Status Inquiry
  64. Feature - Add Additional Record Types to Reorder Advise User-Defined CSV Export
  65. IM2500 Inventory Management Reset Allocated Quantities
  66. IM2700 Inventory Management Set Trx Audit File Beginning Balances
  67. IM2800 Inventory Management Freeze Inventory
  68. IM2900 Inventory Management Kit File Maintenance
  69. IM3301 Inventory Management Job Code File Maintenance
  70. IM3400 Inventory Management Job Analysis Report
  71. IMACTMNT Inventory Management I/M Account File Maintenance
  72. IMAGESCN Inventory Management Inventory Aging Report
  73. IMATPGSN Inventory Management Generate ATP File
  74. IMATPRSN Inventory Management Available to Promise Report
  75. IMBININV Inventory Management Bin Inventory File Maintenance
  76. IMBINMNT Inventory Management Bin File Maintenance
  77. IMBINTRN Inventory Management Inventory Transfer Processing
  78. IMCHGBIN Inventory Management Change Bin No/Pick Seq
  79. IMEXPTSN Inventory Management Export Item for Take an Order
  80. IMFRMMNT Inventory Management Item Label Form Setup
  81. IMGENMNU Inventory Management Generate Location History
  82. IMIMSITM Inventory Management Item Import Utility
  83. IMITMUDS Inventory Management Item User-Defined Fields Import Utility
  84. IMSUBMNT Inventory Management Substitute Item Class File Maintenance
  85. IMUSRMNT Inventory Management User-Defined Code File Maintenance
  86. IMVESMNT Inventory Management Vessel File Maintenance
  87. IMVLSMNT Inventory Management I/M Serial/Lot History File Maintenance
  88. Feature - Expanded Selection Parameters for Reorder Advise User Defined CSV Export
  89. Change - Update Both Kit Parent and Components Usage
  90. Feature - Create Price Code 1 from Item Minimum Price Utility
  91. Change - Available to Promise by Item Report - Add Item Description 2
  92. Feature - Support AR (Attribute) Type in Reorder Advise User Defined CSV Export
  93. Can System Default Item User-Defined Code?
  94. Feature - Item Label Printing Enhancements
  95. Feature - Ability to Initialize Character Fields During Change Existing Item Import
  96. Understanding Status Code at Inventory Transfer Dispatch Screen
  97. Feature - Support GTIN Based on Two Different UPC Codes
  98. Feature - Update Estimated Date/Time When Printing Transfer Tickets
  99. Feature - Allow Physical Count Tag Import Without Serial Number
  100. Feature - Delete Kit Components When Item Activity Code is Set to 'O'
  101. Feature - New QTYAVAILBYCOMP Attribute Fields
  102. Feature - Allow GTIN Maintenance in I/M Change Bin No/Pick Seq Processing
  103. Feature - Improvements to Reorder Advise Reports
  104. What Is the Difference Between INV_TRX_UN_COST and INV_TRX_NEW_AVG_COST in IMINVTRX Table?
  105. Feature - Added a Function "Create Inventory Trx CSV Import"
  106. Feature - Added Support to “Create I/M Trx CSV Import” for Kit Items
  107. Feature - Improvements to QTYAVAILBYCOMP and QTYAVAILBYCOMP2 Attributes
  108. Feature - Add Desc2 Column to Item Linkage CSV Report
  109. Feature - Numeric Item List Changes
  110. Feature - Added 1C and LD Column Types to Reordering Advise User Defined CSV Export
  111. What's the Difference Between Lead Time & Planning Lead Time?
  112. Explanation of ATP LP Type - Negative Sign (-) vs (*) Symbols
  113. IM0000 Inventory Management Package Overview 7
  114. IM0000 Inventory Management Package Overview 1
  115. IM0000 Inventory Management Package Overview 2
  116. IM0000 Inventory Management Package Overview 3
  117. IM0000 Inventory Management Package Overview 4
  118. IM0000 Inventory Management Package Overview 6
  119. IM0000 Inventory Management Package Overview 5
  120. IM0000 Inventory Management Package Overview 8
  121. IM0000 Inventory Management Package Overview: Index
  122. IM0101 Inventory Management Item File Maintenance 1
  123. IM0101 Inventory Management Item File Maintenance 2
  124. IM0101 Inventory Management Item File Maintenance 3
  125. IM0101 Inventory Management Item File Maintenance 4
  126. IM0101 Inventory Management Item File Maintenance 5
  127. IM0101 Inventory Management Item File Maintenance 6
  128. IM0101 Inventory Management Item File Maintenance 7
  129. IM0101 Inventory Management Item File Maintenance 8
  130. IM0101 Inventory Management Item File Maintenance: Index
  131. IM2400 Inventory Management Inventory Transaction Processing 1
  132. IM2400 Inventory Management Inventory Transaction Processing 2
  133. IM2400 Inventory Management Inventory Transaction Processing 3
  134. IM2400 Inventory Management Inventory Transaction Processing 4
  135. IM2400 Inventory Management Inventory Transaction Processing 5
  136. IM2400 Inventory Management Inventory Transaction Processing 6
  137. IM2400 Inventory Management Inventory Transaction Processing 7
  138. IM2400 Inventory Management Inventory Transaction Processing: Index
  139. How to Run Inventory Stock Status Report for a Certain Date
  140. Feature - Transition to Obsolete
  141. Item Last Received Date Not Updated When Received from I/M Transaction Processing
  142. Feature - Zero Item Weight When Using F3 to Copy Item
  143. Feature - Initialize User-Defined Note, Date and Amount Fields When Using F3 to Copy Item
  144. What Information Is Stored in the Location History (IMLOCHST) Table?
  145. Feature - Prevent Excel from Dropping Leading Zeroes in CSV Item Number Field
  146. Feature - Add User ID to User Defined CSV Export
  147. Feature - User Defined CSV Export Item Batch Support
  148. Feature - Export Inventory TRX Audit Trail to CSV
  149. Feature - Add User-Defined Code Table Support in IM User-Defined CSV Export
  150. Feature - Added “Item 1st Received Date Range” Criteria to Item User Defined CSV Export
  151. How to Get a List of Items That Does Not Have GTIN Code Defined
  152. Feature - User Defined CSV Export Quantity Sold by Customer#, Customer Type or Customer Group
  153. Feature - Added inKit (IK) and inBOMP (IB) Column Types to the User-Defined CSV Report
  154. Feature - Added Phantom Locking to Item File Maintenance
  155. Feature - Added CSV Support to the Physical Count Posting Update Edit List and the Variance Report By Item/Warehouse
  156. Feature - Inventory Transfer Management Batches Using CSV Import
  157. Limitations for Inventory Aging Report
  158. Feature - ATP Inquiry Number of Days from Today
  159. Feature - Added Report to "Set TRX Audit File Beginning Balances"
  160. Feature - Added Product Category Selection Range to ABC Analysis Reports
  161. Feature - Added Days Out of Stock (DOS) Column to the Location History Information, Sales Desk Info - Screen
  162. Feature - Show Turn Over Ratio (TOR) in Stock Status Inquiry
  163. Feature - Added Browse Through Items When in the Stock Status Inquiry
  164. Why Isn't Planning Lead Time Based on Work Days?

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