highlightingMay 2014 / PhreeBooksR36RC3
Author – Charles
draft

Background Highlighting:

PhreeBooks has recently introduced a feature that visually conveys the SKU’s ‘Inventory Status‘ during data entry using Background Highlighting. This is a time saving feature.

The Background Highlighting is an Alert! for the user (or a ‘take note’).

Sales Orders:
MediumPurple‘ –  not in stock
MediumOrchid‘ –  not in stock but is on-order

Sales/Invoice:
Pink‘ –  inactive and not in-stock  (inactive box checked in SKU details page – reversible)

Purchase Orders:
Orange‘ –  item is in-stock
MediumOrchid‘ –  item is already on-order

Purchase/Receive:
Pink‘ –  inactive stock (has the inactive box checked in SKU details page – reversible)
Aquamarine‘ – there is a Sales Order for this item  (should help when you receive products, so you know what should be sorted as normal stock and what should be set aside for a customer.)

NOTE: If you ‘hover’ your cursor above any of these highlighted SKU fields, you should see explanatory hover-text next to your mouse.

The above features do not take into account the user-defined ‘Minimum Stock Level‘ for each SKU.

Update 23-May-2014
Rene has changed the background-colour oforangelin
MediumOrchid‘ –  not in stock but is on-order to  FF6633 (Orangelin)
This update will be included in the next release of PhreeBooks.

Any comments, queries or suggestions for improvement to the Forum please.

inventorydraft – there are some descriptions required and some contradictions.

December 2013 / PhreeBooksR36RC3
Author – Charles

Inventory Classifications (in alphabetical order):

Stock, Non-stock

Activity Item – treated like a service or Charge. A non-stock item. Activity Items are a lot like service items with the main difference being they are supposed to be a fixed length item. For example, oil change labor would be an activity item whereas repair oil leak in engine would be a service item where the time allotted is unknown.
Charge Item – a fixed price charge for materials and/or services. Shop supplies and disposal fees would be examples of charges.
Description – a text only item to communicate information. Typically a standard statement included with purchase orders and sales orders. e.g. bank payment details. Also used for Cost-Codes.
Flat-Rate Serviceneed description
Item Assembly – One or more inventory items grouped together and sold as an individual item (with own sku).
Labor – associated with employee chargeable time. May be applied to internal work order activities as well as labor charges to customer for services provided. Typically charged by a unit of time.
Master Stock Assembly – A Master Stock Assembly is simply a Master Stock Item that is an ‘assembly’ i.e. it is assembled using other inventory items in quantities defined in the BoM (Bill of Materials).
Master Stock Item – Items that contain ‘attributes’ e.g. colours and sizes. PB will assign a unique item id (SKU) to each variation to track inventory activity but retain the link to the MSI for reporting.
Non-Stock Item – physical items whose costs are not tracked in the Genaral Ledger. This may include supplies, packing material, assembly materials. Also used for Cost-Codes.
Serialised Assembly – A Serialised Assembly is simply a Serialised Item that is an ‘assembly’ i.e. it is assembled using other inventory items in quantities defined in the BoM (Bill of Materials).
Serialised Item – assembled and sold by a unique serial number. Movement and cost are tracked in the General ledger.
Service – represent a fixed charge for a service e.g. a packing charge or handling would be a service.
Stock Item – common retail item. Purchases and sales are recorded. A count of stock is recorded.

FIFO
FIFO

December 2013 / PhreeBooksR36RC3
Author – Charles

Decisions on what is the appropriate Inventory Cost Method for your sort of business will need to be made with your accountant.

Once you have decided on the correct Inventory Cost Method to be employed in your company, it should not be changed lightly. Normally, there are strict rules enforced by your taxing authority covering how and when you can change – expect to have to fill in some forms to fulfill your statutory reporting requirements. Once again – talk to your accountant BEFORE attempting to change your Inventory Cost Method.

COMPANY > Module Administration > Inventory Module > Cost Method on right-hand-side.

COST METHOD DESCRIPTION APPLICATION
 FIFO First-In-First-Out: An item’s unit cost is the actual value of any receipt of the item, selected by the FIFO rule.In inventory valuation, it is assumed that the first items placed in inventory are sold first. In business environments where product cost is stable.(When prices are rising, the balance sheet shows greater value. This means that tax liabilities increase, but credit scores and the ability to borrow cash improve.)For items with a limited shelf life, because the oldest goods need to be sold before they pass their sell-by date.
 LIFO Last-In-First-Out: An item’s unit cost is the actual value of any receipt of the item, selected by the LIFO rule.In inventory valuation, it is assumed that the last items placed in inventory are sold first. Disallowed in many countries, as it can be used to depress profit.(When prices are rising, the value on the income statement decreases. This means that tax liabilities decrease, but the ability to borrow cash deteriorates.)
Average
Cost
(AVCO)
An item’s unit cost is calculated as the average unit cost at each point in time after a purchase.For inventory valuation, it is assumed that all inventories are sold simultaneously. In business environments where product cost is unstable. When inventories are piled or mixed together and cannot be differentiated, such as chemicals.
LIFO
LIFO

FIFO, seemingly used by Dave in his business and also seemingly the ‘default’ setting in PhreeBooks, is only a recent addition to some other popular commercial accounting packages (perhaps – I’m guessing here – because it is complicated). I think that Quickbooks only introduced a core FIFO option into their inventory in 2012 – before that it included only the ‘average cost’ method – FIFO was only available through a “third party add-on product that manages inventory entirely outside of QuickBooks“.

Average cost method
AVCO

PhreeBooks uses Perpetual AVCO for the Average Cost method.

February 2014 / PhreeBooksR36RC3
Author – Charles

reorder1

Dave Premo:
The Inventory Re-order Worksheet report. This will list all items below the reorder stock level sorted by preferred vendor (adjusted to take into account lead time). I put the report in my Favorite Reports dashboard on my homepage and run it every day.

PhreeBooks will help you identify which inventory items need to be re-ordered.
This is a two step process:

(1)  Run the ‘Inventory Re-order Worksheet’.: This will identify the VENDORS that PO’s need to be placed with:

INVENTORY > Reports,   Inventory Re-order Worksheet

reorder

(2) ‘Auto-Fill’ the Vendor’s PO: Create a new PO for each Vendor identified by the Inventory Re-order Worksheet.

  • Open a new Purchase Order  –  VENDORS > New Purchase Order
  • Select Vendor identified by Inventory Re-order Worksheet.
  • Click on ‘Fill order with items with low stock’ icon (adjacent to Help in Toolbar).

 

reorder2

reorder3

Useful Resources:
http://sap.ittoolbox.com/groups/technical-functional/sap-log-mm/static-or-dynamic-reorder-point-and-safety-stock-1865480
http://www.erpgreat.com/materials/safety-stock-calculation-in-sap.htm
http://www.delawareconsulting.com/FAST-Food/planning_detail.aspx?Title=Set_correct_safety_stock_levels