Restart Inventory

This document is used when you are ready (or need) to "restart" your inventory.  Some clients choose not to use the Inventory Control module features until they have been "live" on Profits Plus for a while, and others feel that the Inventory is in such disarray, that it is best to start from scratch with the Inventory.

 

 

Step 1:

Be sure that ALL open orders, that have been completed, have been INVOICED and posted, plus all merchandise to be included in the physical count has been RECEIVED and posted on the computer.

 

Step 2:

Make a reversing entry for Inventory and Cost of Sales in the GL to zero out those accounts (In the GL module, use Task 1 to enter the reversing entry, and Task 4 to post the entry). To get the data needed, run a GL trial balance (Task 9 in the GL module) by the range of Inventory & Cost of Sales accounts to get the totals for the accounts. Credit the "Inventory" accounts and debit the "Cost of Sale" accounts.

 

Step 3.

When that is done, and prior to taking the physical inventory, run the GL trial balance again to ensure the accounts are zero and no activity has occurred that would affect the balances in the accounts.

 

Step 4:

Zero out the quantities in the warehouse files.  Go to:

• Inventory Control (Module 5)
  • ​Special I/C Processing Menu (Task 25)
    • ​Zero selected warehouse fields (Sub-task 12   WHSZER)

Read the warning, then press the ENTER key.

NOTE: PERFORMING THIS OPERATION WILL ZERO OUT ALL QUANTITIES IN THE

WAREHOUSE MASTER FILE FOR THE ITEM NUMBERS AND QUANTITIES SELECTED!!!

• Enter "ALL" for all item numbers (prepares selected items in the warehouse master files to be adjusted).
• Enter "ALL" for warehouses (selects which warehouse files to be cleared)
• Clear Qty on hand (Y/N): Y  (clears quantity on hand per above selections)
• Clear Qty committed (Y/N): N (clears committed quantities}
• Clear Customer B/O (Y/N): N (clears quantities on backorder)
• Clear Qty on order (Y/N): N (clears quantities of items on order)
• Are you Sure you want to clear these fields (Y/N) ?  Y

 

Answering the above, as shown, will zero out all inventory quantities for all items and all warehouses.

 

Step 5:

Run an inventory value report for all items to ensure it is zero, this can be printed to the screen.

We recommend two options, the first being:

• Inventory Control (Module 5)
  • ​Item Control (Task 9)
    • ​Inv value, location/product code or report class/item#  (Sub-task 9) INVPRD

 

Quantity on hand for both sell and stock by should be zero, the total value on the report should be zero.

 

The alternate option is to go to:

• Inventory Control (Module 5)
  • ​System Management Functions (Task 32)
    • ​Calc Inventory Value (on screen) (Sub-task 9)

 

This option performs the same function as the INVPRD, and a one page printout is available for audit trail purposes.

 

Step 6:

After the quantities for the items are zeroed out, the procedures for the physical inventory can then be performed. There are two methods to perform the physical inventory procedure – by Item and by Picking Sequence. Choose the method that best suits your needs, however choose only one of the methods!

 

Method #1: Do the physical inventory by item #:

• Inventory (Module 5)
  • Physical Inventory Selection (Task 6)
    • Select Items for Inventory by Item # (Sub-task 1)

1. When items are selected for physical inventory by item #, the system prompts the following:

• Please enter - starting report class/ending report class: Return for All
• ​Please enter - starting product code/ending product code: Return for All
• Please enter - starting item #:/ending item #: Return for All ( If ALL is selected, then a separate edit list for each item # prefix will be printed.)
• Please enter - starting warehouse #/ending warehouse # class: Return for Al
• Double space report? (Y/N)?
• Skip zero quantities items (Y/N)? (If skip zero quantities is Yes, they WILL BE SELECTED; they just WILL NOT PRINT on the edit list.)
• Skip serialized items (Y/N)? (If skip serialized items is Yes, then they WILL NOT BE SELECTED, and they WILL NOT PRINT on the edit list. They are ignored altogether.)

2. After selecting the items:

A printout is generated called, "Physical Inventory List by Item". This printout is what is used to write the inventory counts on. It has the following columns:

• Item #
• WHS (Location #)
• Item description
• Pick (Picking sequence)
• Sell-by (what the computer has on hand right now, in sell by units.)
• Commit (# of items committed to customers)
• Phy-count (This is the line where the counts are written.)
• Stock-by (quantity on hand)
• Price - 1

 

Method #2: Do the physical inventory by picking sequence:

• Inventory (Module 5)
  • Physical Inventory Selection (Task 6)
    • Select Items for Inventory by Picking Sequence# (Sub-task 2)

1. When items are selected for physical inventory count by picking sequence #, the system prompts the following:

• Print which price level (0,1,2,3, etc.)?
  • 0 - Skips prices
  • A - Gives average cost
  • L - Gives last cost
• Double space report (Y/N)?
• Skip zero quantity items (Y/N)?
• Please enter - starting warehouse #/ending warehouse #: Enter for All
• Please enter - starting picking seq#:/ending picking seq#: Enter for All (If ALL is selected, then the edit list will be in picking sequence order, followed by item # order within each picking sequence. The items from different warehouses will be grouped together, if all warehouses (divisions) were selected.
• Please enter - starting item number:/ending item number: Enter for All.

2. A printout is generated called, "Physical Inventory Listing by Location". This printout is what is should use to write the inventory counts on. It has the following columns:

• Picseq
• Item #
• WHS # (Location #)
• Item description
• Sell-by (On-Hand and Committed)
• Count
• Stock-By On-Hand
• Price2
• Other Cost
• Total Value

 

Step 7:

When updating the physical inventory, enter the quantity that was actually counted. The computer then calculates the difference between this number and the quantity that was in the inventory file when this item was selected (which should be zero).

The computer updates the current "on hand", in the warehouse by the "change" in the quantity resulting from the actual count.

Step 8:

Updating quantities by item # or picking sequence must be done with the same method that the inventory was selected.

Method #1: If Select Items for Inventory by Item # (Sub-task 1) was used, then use Update Quantities by Item # (Sub-task 3)

• Inventory (Module 5)
  • Physical Inventory Selection (Task 6)
    • Update Quantities by Item # (Sub-task 3)
• First system prompt is the warehouse #. Type in the warehouse # that is being updated.  This way only the items from that warehouse will be brought up.
• Next the entry and edit menu will appear, use:
  • 1. Enter (add) New Adjust.

Note the "Current TRX count" and the "Unused TRX space". When first entering the above menu screen, the "Current TRX count" should be zero. If more than one person is entering adjustments, then the count will include the number of adjustments everyone has made. Try to coordinate the entry of adjustments, because whenever anyone posts adjustments, ALL of the adjustments will be posted together.

• Enter the item number (01. Item #).
  • When the cursor is at item #, the RETURN key can be pressed to scroll through the items that were selected. Use this option is there are changes
  • When the cursor is at the item # field, type in the item # that a change will be made to. This would be used if you have many items selected that you do NOT want change at this time.
• The items that are skipped over are still selected for physical inventory. In System Management, Sub-task #3 "Clear Inv Adjust Flags" should be run after all POSTING is done on all the inventory adjustments.
• Enter the quantity (02. Qty on Hand)
  • The quantity automatically comes up in "sell-by" quantities.
  • When the cursor is at "Qty on hand", you may press the TAB key to enter "stock-by" quantity.

1. When approximately 50 items have been entered with adjustments, go to Print Adjust Edit List (Sub-task 4). You may enter adjustments for as many items as you want, but we recommend 50 as a number easy and efficient to work with and check.

• Check over the quantities entered (under the "counted" column), very carefully.
• If any mistakes were made, correct them in: Change existing adjust.(Sub-task 2)

2. When everything is correct, go to: Post Adjust to I/C files (Sub-task 5).

• When posting is done, everything in the adjustment file will be posted. So if anyone else has also entered adjustments, check to be sure that those adjustments are ready for posting also.
• If something is wrong, the posting can be rejected when the prompt comes up asking if the posting is OK, and everything will be restored like it was before the posting.

3. If something is found to be wrong after the posting has been completed and accepted, then either reselect the same item and make a correcting physical count update, or correct the affected master files manually. We recommend that you use the first method for fixing mistakes, so there is a completely documented accounting trail, in keeping with proper accounting procedures. Also, if you try to correct mistakes by altering master files, it may create inconsistencies in the system if more than one master file is involved, and the change is not made in all of them the same way.

4. Save the posting registers. Keep them in a binder or file. This way, if there should ever be a discrepancy in a quantity, it can be checked to see what was entered in the physical inventory.

5. If a physical inventory is being done for more than one warehouse, select one warehouse at a time.

• This will provide an edit list for each warehouse.
• Give the appropriate edit lists to the persons who are going to count the items at the respective warehouses.

6. More than one person can be entering the adjustments at the same time. They have to put in the warehouse # that they are entering the adjustments for. Only the items from that warehouse will scroll.

 

Method #2:  IF Select Item for Inventory by Picking Sequence (Sub-task 2) was used, then use Update Quantities by Picking Sequence (Sub-task 4)

• Inventory (Module 5)
  • Physical Inventory Selection (Task 6)
    • Update Quantities by Picking Sequence (Sub-task 4)

 

• Enter the warehouse # that the adjustments are being made for. ("ALL warehouses" is not allowed.)
• Next the entry and edit menu will be displayed, use:
  • ​Enter (add) new adjust.

Note: The "Current TRX count" and the "Unused TRX space". When first entering adjustments, the "Current TRX count" should be zero. If more than one person is entering adjustments, then the count will include the number of adjustments everyone has made. Try to coordinate the entry of adjustments, because wherever anyone posts adjustments, All of the adjustments will be posted together.

• Enter the item number (01. Item #).
  • When the cursor is at item #, the RETURN key can be pressed to scroll through the items that were selected. Use this option is there are changes
  • When the cursor is at the item # field, type in the item # that a change will be made to. This would be used if you have many items selected that you do NOT want change at this time.
• The items that are skipped over are still selected for physical inventory. In System Management, Sub-task #3 "Clear Inv Adjust Flags" should be run after all POSTING is done on all the inventory adjustments.
• Enter the quantity (02. Qty on Hand)
  • The quantity automatically comes up in "sell-by" quantities.
  • When the cursor is at "Qty on hand", you may press the TAB key to enter "stock-by" quantity.

1. When approximately 50 items have been entered with adjustments, go to Print Adjust Edit List (Sub-task 4). You may enter adjustments for as many items as you want, but we recommend 50 as a number easy and efficient to work with and check.

• Check over the quantities entered (under the "counted" column), very carefully.
• If any mistakes were made, correct them in: Change existing adjust.(Sub-task 2)

2. When everything is correct, go to: Post Adjust to I/C files (Sub-task 5).

• When posting is done, everything in the adjustment file will be posted. So if anyone else has also entered adjustments, check to be sure that those adjustments are ready for posting also.
• If something is wrong, the posting can be rejected when the prompt comes up asking if the posting is OK, and everything will be restored like it was before the posting.

3. If something is found to be wrong after the posting has been completed and accepted, then either reselect the same item and make a correcting physical count update, or correct the affected master files manually. We recommend that you use the first method for fixing mistakes, so there is a completely documented accounting trail, in keeping with proper accounting procedures. Also, if you try to correct mistakes by altering master files, it may create inconsistencies in the system if more than one master file is involved, and the change is not made in all of them the same way.

4. Save the posting registers. Keep them in a binder or file. This way, if there should ever be a discrepancy in a quantity, it can be checked to see what was entered in the physical inventory.

5. More than one person can be entering the adjustments at the same time. They have to put in the warehouse # that they are entering the adjustments for. Only the items from that warehouse will scroll.

 

Step 9:

If the error message "skipping warehouse record" appears the likely cause is a record was erased from the Inventory Master File (Task 17) using Erase Selected Item Records (Sub-task 5) instead of being deleted using Delete Existing Item Records (Sub-task 3). Sub-task 3 also removes the matching file from the warehouse master file, but Sub-task 5 does not.

• If the item number that was erased improperly from the Inventory Master File is known, then go into Inventory Master File (Task 17) , and add back the record, then use the delete function (Sub-task 3) to delete it. This will also remove the matching record from the Warehouse Master File.
• If the item number is not known, then go into: Special I/C Processing Menu (Task 25), Verify Item/Supplier/Warehouse Records (Sub-task 3)
  • Run through the program once, answering NO to all the questions. This will give a report that can be studied, and help decide what action is to be taken.
    • If records are to be removed from the warehouse master file that used to match records that have now been erased from the inventory master file, then run through the program again, and this time answer YES to the various questions that will provide the correct action.
    • If it is decided that the item records need to be added back into the inventory master file, then use Item Master (Task 17), to add the record directly to the inventory master file. DO NOT use the normal Add New Items (Task 1), or Quick Item Setup (Task 5). These would create duplicate records in the warehouse master file where the records already exist.

Step 10:

THE FOLLOWING STEPS NEED TO BE PERFORMED FOR BOTH THE ITEM # (Method 1) AND PICKING SEQUENCE (Method 2) METHODS!

• Inventory Control (Module 5)
  • Physical Inventory Selection (Task 6)
    • Print List of Unadjusted Inventory Items (Sub-task 6)

1. This report prints a list of items that have been selected for physical inventory but have NOT been adjusted. This can be printed prior to clearing the "adjust flags" (see below for explanation) to find out which items may have been overlooked either in the counting or data entry portion of the physical inventory. Note that this report can ONLY be used BEFORE clearing the adjust flags.

2. The system prompts whether to show "other cost", whether to skip items with zero quantities, and which unit of measure to use for quantities/costs.

3. Selectable ranges are report class, product code, item #, and warehouse #.

• Inventory Control (Module 5)
  • Physical Inventory Selection (Task 6)
    • Rebuild Cross-ref File for Update by Picking Sequence(Sub-task 7)

1. This program will rebuild the picking sequence/item number cross reference file after all items for all warehouses have been selected to be included in the physical inventory. A printout will not be generated; all necessary information should be on reports generated during the selection of items by picking sequence.

• Inventory Control (Module 5)
  • System Management Functions (Task 32)
    • Clear Inventory Adjust Flags (Sub-task 3).

This Subtask MUST be run when the posting is finished for ALL the adjustments for the physical inventory.

Step 11:

A report needs to be run that will provide the data needed to make manual entries to the general ledger. There will be a debit to the Inventory GL accounts and credit the Cost of Sales Accounts. Use:

• Inventory Control (Module 5)
  • Item Status (Warehouse) (Task 10)
    • End-of-Month Status by Location / Product Code or Rep Class (Sub-task 2)

The accounts and data needed for the entries will be summarized at the end of the report.