Processing

Inventory Transaction Processing

Application Overview

The Inventory Transaction Processing application records several types of transactions that effect inventory.  The I/M package offers the flexibility of two ways of recording those transactions and updating the appropriate inventory files.

The user may choose to record transactions on-line.  This means that inventory quantity levels will be immediately adjusted when a transaction is entered; providing the most up to the minute picture of the actual status of inventory.  To select this option, set the Online Update Inventory Trx flag (#24) in I/M Setup to Y.

The second option is to place entered transactions in a transaction file; to be posted later via the Post Inventory Transactions application.  This offers the flexibility of verifying the accuracy of transactions before they effect inventory levels.  For issue, adjustment, and receiving transactions, it also allows the user to distribute the value of the inventory to one or more G/L accounts.  To select this option, set the Online Update Inventory Trx flag (#24) in I/M Setup to N.

 Note:  Switching back and forth between on-line and batch processing can corrupt inventory data files.  It is recommended to choose one of the above methods and stay with it.

 If it is necessary to change from on-line to batch processing, first re-initialize the Inventory Transaction Process File, Inventory Transaction Distribution File, and Inventory Transaction Serial File using the File Utilities application under the Util_setup window of the Elliott main menu. 

Warning: Initializing these files will erase any transactions recorded in them.  Changing from batch processing to on-line is not recommended.

 For more information on the two types of inventory transaction processing, see the On-line Processing and Batch Processing chapters that follow.

On-Line Processing

If on-line processing is selected, the application will record receivings, transfers, issues of inventory.  As entry of a transaction is completed, the application immediately updates the appropriate item's quantity fields in the Item File.  It also creates a record in the Inventory Transaction Audit File.

If a transaction is changed or deleted, the program actually creates a change transaction, which makes the necessary adjustments to the original transaction.  This change transaction is also recorded in the Audit File.  When searching for transactions in change or delete mode, the transaction which appears on the screen is actually the latest change to the transaction.

 If a transaction has been deleted, it will not be displayed in change or delete mode.  It will however, along with all changes, be printed on the Inventory Transaction Audit Trail Report.

Adjusting Average Cost

Very commonly, the situation will arise that receivings are entered from the packing slip before the actual invoice arrives.  Since the packing slip does not usually provide the unit cost, some method must be used to make sure the unit cost does ultimately get entered cor­rectly, since this will affect the average cost for the item.

If the new unit cost is unknown at the time of receiving, simply press RETURN for that field, which will cause the item's last cost to be accepted.  If an on-line receipt was used when the invoice arrives with the unit cost, you may bring up that transaction in change mode and re‑enter the correct unit cost.

If your company uses the Elliott Purchase Order and Receiving package, it is strongly recommended that you use that package wherever possible to enter re­ceivings transactions.  This is because certain quantities pertaining to an item, which have importance to the Purchase Order and Receiving package, are not processed using the Inventory Management package.  Receivings processed by the Inventory Management package will not tell the whole story for the Purchase Order and Receiving package.

NOTE:           Depending on your I/M Setup, Average Cost will display as FOB Cost or Landed cost. 

LIFO And FIFO Cost Method

A layer is a single record in the LIFO/FIFO File that records for each item each receipt or purchase and associated cost and quantity.  Receivings from both the Inventory Management or Purchase Order and Receiving packages will create LIFO/FIFO layers.  Posted credit memos from the Customer Order Processing package will also create a layer.  Layers are removed in the appropriate order as inventory is relieved.  Issues from the Inventory Management or posted invoices from the Customer Order Processing package will either remove layers or reduce layer quantities based on needed quantities.

Each receipt relates directly to a record or layer in the LIFO/FIFO File.  Deleting an on-line receipt transaction will remove the associated layer record.  Also, changing an on-line receipt transaction's quantity will adjust the quantity remaining in the layer record.  Since the layer may be partially issued, the layer quantity may not match the receipt transaction quantity.

The system will not allow an on-line receipt with a partially issued layer to be deleted.  In addition, the quantity received of a receipt with a partially issued layer may not be reduced to a point that would create a negative layer quantity.

The LIFO/FIFO cost method does not allow stocked items to have a negative quantity on hand or allow layers with negative quantities.

Transactions cannot be purged from the Transaction Audit Trail File until their associated layers have been deleted from the LIFO/FIFO layer file. Only transactions, whose layers have been completely issued and deleted, will be purged.

Detailed layer information by item may be obtained through a report option on the Stock Status Report application.

Serial Transactions

If the Serialized/Lot Items flag is S in I/M Setup, then serialized items and transactions are allowed.  All items are not automatically assumed to be serialized.  The second screen of Item File Maintenance has both a serialized item question and length of warranty question.  These fields are used to selectively create serialized inventory.

Each on-line receipt or issue of a serial item creates a record in the Serial/Lot File.  These records may be inquired or printed through the Serial/Lot Stock Status Inquiry, Serial/Lot Stock Status Report, and Issue History Report.

Serial stock records are created by receivings from the Inventory Management, Purchase Order And Receiving, and Manufacturing packages.  Production reporting may be performed in Bill Of Material Processor to produce serialized stock.  Posted credit memos from the Customer Order Processing package may be used to return serialized items to stock. Serial stock records are relieved and serial issue records are subsequently created by issue transactions from the Inventory Management package and posted invoices from the Customer Order Processing package.  Unposted invoice type orders and selected orders from Customer Order Processing will allocate serialized inventory. 

Each inventory receipt, issue and adjusting transaction relates directly to a record in the Serial/Lot File.  Transaction quantities may be larger than one but the system will prompt for an equal number of unique serial numbers.  A separate transaction will be created for each serial number.  Deleting an on-line receipt will remove the associated serial stock record.  If an on-line issue is deleted, the system will return the serialized item to stock.  An on-line receipt that has had its associated serial number issued may not be deleted.

On-line transactions for serialized items may not be changed.  Changes to issued warranty dates may be accomplished through the Serial/Lot Processing application.

Entry of serial numbers on receipts is not mandated.  Also, serial numbers issued or sold do not have to be in stock.  This flexibility allows serial items and warranty dates to be tracked after the sale only.  Serial numbers may be entered on the picking ticket generated by the Customer Order Processing package.

Lot Transactions

If the Serialized/Lot Items flag is L in I/M Setup, then lot items and transactions are allowed.  All items are not automatically assumed to be tracked by lot.  The second screen of Item File Maintenance has a lot number question to allow selective creation of inventory items requiring lot tracking.

Each on-line receipt or issue of a lot item creates a record in the Serial/Lot File.  These history records may be inquired or printed through the Serial/Lot Issue History Report and Serial/Lot Processing application.

Lot records are created by receivings from both the Inventory Management or Purchase Order And Receiving packages.  The Production Transaction Processing application may also be used in Bill Of Material Processor to produce lots.  Posted credit memos from the Customer Order Processing package may be used to return stock to its original lot.  Lot quantities are reduced and lot issue records are subsequently created by issue transactions from the Inventory Management package and posted invoices from the Customer Order Processing package.  Unposted invoice type orders and selected orders from Customer Order Processing will allocate lot quantities.

Each receipt relates directly to a stocked lot record in the Serial/Lot File.  Deleting a receipt transaction will delete the associated lot and remove the transaction from the I/M Transaction File.  Deleting an issue transaction will remove the transaction from the I/M Transaction File and update the inventory and lot quantity fields.

The system will not allow an on-line receipt with a partially issued lot to be deleted.  In addition, the quantity received of an on-line receipt with partially issued lot may not be reduced to a point that would create a negative lot quantity. 

Items with lot tracking are not allowed to have a negative quantity on hand or allow lots with negative quantities.

The total quantity on hand from the Serial/Lot File must match the item quantity on hand.  However, allocated quantities may not match since Customer Order Processing only allocates lots after line items are selected.  This allows orders to be placed for out of stock items with no lots available.

After a lot is completely issued or sold, it remains in stock with a quantity of zero.  The lot must remain in stock if returns are anticipated so that original expiration dates may be tracked.  These zero lots may be purged from the Purge Zero Quantity Lots in the Serial/Lot Processing application through a selected cut off date.

Run Instructions - On-Line Processing

 Select Inventory Transaction Processing from the pull down I/M Processing window.  The following screen will then be displayed:

Inventory Transaction Processing Entry Screen

 The following options are available:

                  *     Select the desired mode from the Inventory Transaction Processing menu bar

                  *     Enter the data requested on the screen

 To return to the menu bar, press the ESC or F10 key. To leave this application, press X for EXIT when positioned at the menu bar.