Inventory Options

This Help File Page was last Modified on 03/03/2018

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Inventory Options

This Help File Page was last Modified on 03/03/2018

The Inventory Options tab on the User Options Form provides the ability to (re-)set the default behavior of the Inventory Tracking and Job Costing System.

Information previously entered using the setup wizard of the Inventory Tracking and Job Costing System may also be reset within this Inventory Options tab.

To access the User Options Form

a)From the Backstage Menu System Select Maintenance and Choose General and Click User Options  or,

b)From the Quick Access Menu, Select Maintenance and Choose User Options.

This will open the User Options Form

 

These are the Inventory Tracking & Job Costing Module related tabs and/or sub-tabs on the User Options Form which should be updated, when appropriate, as explained below:

I.Company tab - Click the Company Settings button on the Company tab of the User Options Form to (re-)set availability to any of the features outlined below.

 

HelpFilesUserOptionsCompanyTabCompanySettingsButton

User Options - Company tab - Company Settings bar

 

a.ADI Import - For Inventory Tracking, Accounts Payable and Accounts Receivable System users, setting this option to True ("T") will activate the menu options for the ADI Inventory Import procedures.

b.Confirm Negative Inventory - By default, the ConfirmNegativeInventory option is set to False ("F")  

i.When the ConfirmNegativeInventory option is set to True ("T"), if an Inventory item is used in the Job Costing Form's Inventory tab, entered in the Inventory\Materials tab of a Work Order, added to an Invoice, or included as a Proposal Item on a Proposal  - and the addition of that Inventory item would result in a negative Quantity on Hand value for that Inventory item, a Pop-Up Warning Message will be displayed.

ii.To turn off this Pop-Up Warning Message feature again, set the ConfirmNegativeInventory option to False ("F").  

d.Average Cost Inventory - By default AverageCostInventory is set to False ("F").

i.If AverageCostInventory is set to True ("T"), Inventory Valuation will be based on the Average Cost paid for an Inventory Item versus whatever the currently set Inventory Valuation Method is.

 

II.Inventory Options tab - Click the Inventory Options tab and identify the Inventory Valuation Method and other information as requested below:

Review the Inventory Valuation Methods chapter first.

 

HelpFilesUserOptionsInventoryOptions

User Options Form - Inventory Options tab

 

Inventory Valuation Methods - a brief review:

a)Original Price (Cost) - By default, the Value of each Inventory Item is the original Price Value assigned to that Inventory Item in the Sale-Purchase Category Form.

b)Average Cost Inventory - Another approach to Inventory Valuation is to use the Average Inventory Cost for the Value that is used in the associated General Ledger System transactions.

This Inventory Valuation Method will establish and maintain the Value of the Inventory by Averaging the Cost of that Inventory so that all Price (cost) changes of an Inventory Item are taken into consideration whenever the Value of that Inventory Item is reported.

 

HelpFilesUserOptionsCompany-CompanySettings-AverageCost Inventory

User Options - Company tab - Company Settings dialog - Average Cost Inventory option

 

When AverageCostInventory is set to True ("T") in the Company Settings dialog (available on the Company tab of the Users Options Form)

a)It will convert the Inventory Valuation to the Average Cost paid for an Inventory Item,

b)If LIFO (Last In/First Out) was the previously selected Inventory Valuation Method, it will be turned off automatically.

 

c)LIFO (Recommended) - Used to initiate the Last In - First Out Inventory Valuation Method.

 

HelpFilesUserOptionsInventoryOptions-LIFO

User Options Form - Inventory Options tab - LIFO Checked

 

When an Inventory Item is Purchased, this feature immediately updates the COGS Value (LIFO) Amount in the Sale-Purchase Items Form and in the General Ledger System transactions that follow.

 

1.Review the Inventory Valuation Options chapter for detailed information for all of the available Inventory Valuation Methods.

2.Review the Understanding how Inventory Values & Counts are Calculated chapter for more information if you are (or will be) using the STARK 35 General Ledger System.

 

Inventory Option entries:

Inventory Tracking section - Rules to be followed by the Inventory Tracking System:

Original Price - The Inventory Items are Valued based on the Price that was entered for each Inventory Item in the Sale-Purchase Items Form when they were defined.  This is the old default Inventory Valuation Method.

 

LIFO (Last In - First Out) - From time to time, Inventory Items may be Purchased for more, or less, than the cost previously entered on the Sale-Purchase Item Form as the Price.  

But these Purchases do not change the Price amount which the Inventory Tracking System uses to Value that Inventory Item.  

oThe Inventory Item continues to be valued based on the Price amount that was originally entered (or subsequently modified) in the Sales-Purchase Items Form.

However, from an accounting standpoint, you may want to alter this default behavior by having that Price Value reset (in the COGS Value filed), based on the most recent Cost recorded on an Invoice for the Purchase of this Inventory Item.  

oThis automatic reset process that is based on the most recent price paid, is called Last In-First Out, or LIFO for short.

oCheck the LIFO box to initiate this Inventory Valuation Method.

BUT, If you choose to use the Average Cost Inventory, and you should, set the AverageCostInventory option to True ("T") in the Company Settings dialog

 

Default Parts Code - Use the Drop-Down Selection List to Choose the default Parts code (which for simplicity should be PARTS).

Note: Create a generic Sale-Purchase Item named Parts assigning it the code Parts in the Sale Purchase Items Form.

 

Default Warehouse - The default is the predefined Default Warehouse.

Use the Drop-Down Selection List to Choose a different Warehouse Name, if desired.

 

Default Job Cost Invoice Code - No longer required (Legacy System Setting see Legacy Job Costing).

 

Click the OK button to save this Inventory Options information.

 

Job Costing section - FOR JOB BEGUN PRIOR TO VERSION 5.1.31.X ONLY - The Rules for the Legacy Job Costing portion of this system may not be changed.

Note: If Legacy Job Costing records exist within the MKMSdefault database, the following fields will be displayed, but may not be modified, otherwise, these fields will not be displayed at all.

Last Job No. - No longer Used - This was a Legacy Job Costing function where the next Job Number to be assigned could be specified by entering  the Last Job Number that was used (or what you wanted to represent as that last number thereby identifying what the next number should be).

Note: In Version 2.0.X Job Costing, the system automatically assigns a Record Number for each new Job Costing project, and that number cannot be changed.

Labor Rates: - No longer Used - This was a Legacy Job Costing function where the Labor Rates defined below would represent the Hourly Rate that is Invoiced to a Subscriber - with those Labor Rates being calculated based on the set of Technician Skills that would be required to complete a specific type of Job Task assignment.

oStandard Labor Rate - The minimum labor rate that will be charged.

oPro. Labor Rate #1 - The  second level Professional level labor rate that will be charged.

oPro. Labor Rate #3 - The highest level Professional labor rate that will be charged.

 

What's Next?

Go to Job Types chapter.