CHAPTER 7A MATERIAL MANAGEMENT

Transcription

1 CHAPTER 7A MATERIAL MANAGEMENT Chapter 7A Material Management Inventory Management...5 Overview...7 Inventory Maintenance Tabulation Function Overview...8 Inventory Maintenance Toolbar Overview...9 Inventory Search...11 General Tab...12 Section 1: General Tab: Inventory Definition...13 Alternative Aliases and Alternative Sell Prices...20 Standard Unit Cost Breakdown...22 Inventory Quantity Breakdown...22 Master Inventory Number...23 Children Inventory Definition...23 Section 2: General Tab: Supplier...24 Alternative Suppliers...27 Section 3: General Tab: Quantities...29 Section 4: General Tab: Raw Material...31 Allocations Tab...32 Inventory Allocations...34 Inventory Allocations Shop Orders...34 Inventory Allocations Sales Orders...35 Inventory Allocations Cut Size...35 Heat/Warranties Tab...36 Heats Detail Form...38 Heats Detail Form: General Information Tab...39 Heats Detail Form: Chemical Analysis Tab...40 Heats Detail Form: Warranty Tab...41 Tooling/Class...44 Continuous Flow Shop Order Number...49 Packaging Tab...50 Scale Interface...53 Label Editor...54 Customer Specific Packaging Definitions...55 Locations Tab...56 Inventory Group Transfer...58 General Inventory Transfers A-1 Rev. 10/2006

2 Lots Tab...60 Inventory Transfer...63 Lot Controlled Inventory Transfers...63 Inventory Lot/Transfer Notes Display...66 Journal Tab...67 Creating an Inventory Transaction...70 Creating Inventory In Transactions Adjust Over...71 Creating Inventory Out Transactions Adjust Short...75 Net Changes Tab...77 Routings Tab...78 Alternate Routings by Quantity Break...80 Revisions Tab...81 Adding a New Revision...82 Linking an ECO to an Inventory Revision...83 Inventory Adjustments Generator...84 Step 1: Auto Populate Inventory Adjustment Entries...86 Step 2: Inventory Adjustment Register Worksheet...90 Step 3: Enter in Physical Counts into the Inventory Adjustment Generator...92 Step 4: Inventory Adjustment Count Validation Report...97 Step 5: Generate Adjustment to Inventory...99 Raw Material Issuance (Reserve Inventory) Issuing Raw Material to a Shop Order Reconciling Raw Material Issuance Issue Inventory to Shop Order (Forward Flush) Forward Flush Configuration Back Flush with Issue Inventory Maintenance form Inventory Monthly Reconciliation Monthly Inventory/Cost of Goods (COG) Adjustments Inventory Reconciliation Criteria Fields and Options Absorbing Costs to Work In Process (WIP) for Open/Active Shop Orders Direct Buy Materials (Items bought directly to the Shop Order) Inventoried Raw Material Moving Costs from Raw Material or Finished Goods to WIP Labor (Direct Labor on Shop Orders) Burden Outside (Subcontracted) Moving from WIP to COG (Expenses) Moving from WIP to Finished Goods Moving from Finished Goods to COG (Expenses) Temporary Liability Account Inventory Reconciliation Processing Cost Using Materials Out of Inventory Inventory Reconciliation Processing Costs without using Materials out of Inventory, but Buying Directly to the Job Inter-Inventory Item Transfer Zero Inventory Quantities Zero Out Examples Recalculate Quantity Available Economic Order Quantity (EOQ) Calculator Inventory Monitoring Inventory Monitoring: Search Criteria Inventory Detail Inventory Monitoring General Tab A-2 Rev. 10/2006

3 Inventory Monitoring Allocations Tab Inventory Monitoring Inventory Locations Tab Inventory Monitoring Lots Tab Inventory Monitoring Journal Tab Inventory Journal Report Inventory Monitoring WIP Pipeline Part History Where Used Report Update Finished Goods Cost Finished Goods Cost before and After Update Historical Inventory Requirements Calculator Future Inventory Requirements Calculator Adding a New Forecast Record Future Inventory Requirement Report Forecast verse Actual Sales Order Report Adjust Inventory Unit Costs Inventory Selling Price Change Reconcile Inventory Negative Lots Purge Inventory Journal Journal Records Before and After Purge Inventory Reports A-3 Rev. 10/2006

4 Chapter 7A MATERIALS MANAGEMENT Figure 7a.1 Visual EstiTrack s Material s Management System 7A-4 Rev. 10/2006

5 INVENTORY MANAGEMENT With the Inventory Maintenance subsystem, Visual EstiTrack provides you the ability to track almost any type of inventory items including raw material, work-in-process, finished goods, spare parts, tools, etc. The Inventory Maintenance subsystem allows you to define and manage each inventoried item in your shop. Raw material, work in process and finished goods inventory levels are automatically updated each time a job card is entered into the system along with their total values. With Visual EstiTrack you always have an accurate picture of what inventory you have and the value of the inventory setting on the shop floor. Figure 7a.2 Inventory Maintenance is central to the operational flow of the business 7A-5 Rev. 10/2006

6 Menu Selection Left click on the menu heading labeled Materials Select Inventory Management from the drop down list. Shortcut: Quickly enter the Inventory Management module by left - clicking on the displayed Inventory Maintenance/Monitoring icon on the toolbar. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-6 Rev. 10/2006

7 Overview The Inventory Maintenance subsystem is used to manage all aspects of materials used and manufactured. Raw materials, finished goods, work in process can be tracked in the system along with virtually any other desired items such as tools, supplies, etc. Various inventory control methods are available for tracking items in the system. The most commonly used methods are FIFO (first in first out) and LIFO (last in first out). Both methods are also used for LOT based inventory control. When either of these two methods is used, all inventory transactions are captured and recorded in the Journal tab. All tabulations included in the Inventory Maintenance subsystem (section 1 of figure 7a.3) are fully intertwined and together provide full support of the inventory item. Section 2 of the figure below, displays the tools provided throughout the entire subsystem. Both sections are further outlined in the chapter below. Section 1 Section 2 Figure 7a.3 Inventory Maintenance subsystem 7A-7 Rev. 10/2006

8 Inventory Maintenance Tabulation Function Overview Eleven tabulations comprise the Inventory Maintenance subsystem. The table below summarizes the function of each tab. The function and procedures of the tabulations are individually outlined further in the chapter below. Tabulation General Tab Allocations Tab Heat/Warranties Tab Tooling/Class Packaging Tab Locations Tab Lots Tab Journal Tab Net Changes Tab Routings Tab Revisions Tab Description Used to outline key characteristics of the inventory item such as supplier information and raw material specifications. A summary of the following quantities are also provided: on-hand, allocated, available, and on-order. Displays an aggregate of all demands placed onto the inventory item. It is used to view the inventory item s requirements made from demands created by Shop Orders and Sales Orders Used to optionally and historically track heats or raw material. Heat records are added when receiving the inventory item via the Receipt Detail form or by adding a record directly into the tab. Used to capture inventory item specific configurations. In addition, a variety of manufacturing attributes as well as cycle count definitions are maintained within the tab. Used to define customer packaging requirements on finished good inventory items. The information defined is used in conjunction within the Shipping and the Packaging Maintenance subsystems. A summary of an inventory item s on-hand locations. A summary of an inventory item s lots and locations. The tab is also used to transfer Inventory lots between locations. Displays records of inventory transactions made on the inventory item tracking both the in and out movement of the item. Provides a quick method to view a summary of the change in unit quantity and sales for a selected fiscal year. The activity is summarized by month, quarter and year. Lists the operations of an associated Quote or Engineering Master of a finished good inventory item. Used to formally define multiple revision of an inventory item. 7A-8 Rev. 10/2006

9 Inventory Maintenance Toolbar Overview The Inventory Maintenance tool bar displayed in the figure below is provided throughout the entire Inventory Maintenance subsystem and can be accessed via any of the selected tabulations. Additional detail regarding the functions of the available tools is further provided in the table outline below. Figure 7a.4 the tool bar is accessible from any selected Inventory Maintenance tabulation. 7A-9 Rev. 10/2006

10 Inventory Maintenance Tool Bar Field Req. Field Type Description Inventory Search N/A PUSHBUTTON Activate pushbutton to retrieve the Inventory Search tool. The Search tool is used to retrieve an inventory item or list of items according to specified search criteria. Additional information regarding the tool is provided in the chapter section: Inventory Search. Add N/A PUSHBUTTON Activate pushbutton to add a new inventory item to the system. Once activated, the Inventory Maintenance General Tab is refreshed for entry. Save N/A PUSHBUTTON Activate pushbutton to save any changes made to the form. Cancel N/A PUSHBUTTON Activate pushbutton to cancel any changes made to the form. Delete N/A PUSHBUTTON Activate pushbutton to remove the inventory item from the system. Once the delete validation is confirmed, the item is permanently removed from the system. Copy N/A PUSHBUTTON Activate pushbutton to create a copy of the open inventory item. The Inventory Copy pop-up is retrieved prompting the user to enter in a new inventory number for the copied item. Exit N/A PUSHBUTTON Activate pushbutton to exit the form. Scroll First N/A PUSHBUTTON Activate pushbutton to scroll back to the first record. Scroll Back N/A PUSHBUTTON Activate pushbutton to scroll back one record. Scroll Forward N/A PUSHBUTTON Activate pushbutton to scroll forward one record. Scroll Last N/A PUSHBUTTON Activate pushbutton to scroll forward to the last record. e-advisory N/A PUSHBUTTON Activate pushbutton to access the e-advisory subsystem. Bill of Materials Structure N/A PUSHBUTTON Activate pushbutton to retrieve the Bill of Material Structure form for the open Inventory Item. 7A-10 Rev. 10/2006

11 Inventory Search The Inventory Search form provides the user the ability to select a specific record from the database file for review or modification. The screen displayed below, is retrieved by activating the SEARCH KEY located at the bottom left corner of the Inventory Maintenance form. The form is divided into two sections. Section one in the figure below, allows the user to enter in an inventory search criterion. For example, the user may choose to narrow the list of search results by entering in the type of inventory to retrieve. In the example below, the user selected RAW STOCK into the Inventory Type field. As a result, a list of all raw materials captured in the system is retrieved into the list. Section two of the figure below displays the result list of the search criterion entered. In the example below, the Inventory Number.25HEXBRASS is highlighted. The highlighted (current) Inventory Record is the entry that will be retrieved by activating the [Select] button. Any highlighted record can also be retrieved by performing a double click on the selected record. Section 1 Section 2 Figure 7a.5 Inventory Search Screen Note: If all the fields are left blank, the system will list all inventory numbers captured in the system. If the first character of an Inventory number is entered, a list of all inventory numbers beginning with the entered character is retrieved. The Wildcard button can also be used to search Key Words defined in the Description field. The user must enter in the key word followed by the Wildcard prior to activating the Search pushbutton in order to create a results list including all inventory records identified with the same Key Words. 7A-11 Rev. 10/2006

12 General Tab The Inventory Maintenance s General Tab displayed in the figure below is used to outline key characteristics of the inventory item such as supplier information, inventory quantities and Raw Material specifications. The form is divided into four main sections: 1. Inventory Definition Used to define key item specifications such as inventory type, unit of measure, inventory control method and cost. 2. Supplier Provides for supplier, lead times and reorder level definition. 3. Quantities Provides the user with a display of all quantity levels. The user can review the item s quantity on-hand, allocated, available and on order. The On-Order quantity can be reviewed in detail by simply activating the On-Order pushbutton. All related purchase orders and shop orders are immediately retrieved for review. Quantities are automatically updated when Job Cards are updated in Production and when items are shipped through Shipment and Invoice Maintenance. 4. Raw Material Raw Material specifications can be defined for raw material calculations used in Quotation Maintenance, Inventory Allocations, and Purchase Order Maintenance. This information is also used for on-hand calculations. Section 1 Section 2 Section 3 Section 1 Figure 7a.6 Inventory Maintenance General Tab 7A-12 Rev. 10/2006

13 Section 1: General Tab: Inventory Definition Figure 7a.7 Inventory Maintenance General Tab: Inventory Definition The Inventory Definition section is used to define key item specifications such as inventory type, UOM, inventory control method and cost. Production attributes such as kitting, consumption definition and job card reduction are also defined. The first step in defining a new inventory item is to assign it a unique inventory number. The system stores and processes inventory in order of this defined number. Another key measure in creating a new inventory number is to define the item s Inventory Control method. Most often the inventory control method FIFO (First In First Out) is used for inventory control. This means the oldest inventory items are used before recently added ones. The FIFO and LIFO inventory control methods are used when LOT control is needed. When either of these is used, all inventory transactions are formally captured in the Inventory Maintenance Journal tab. Therefore, all adjustments, overages and shortages, are captured within the Tab. Additional fields and functions available in the Inventory Definition section of the General Tab are found in the table below. Inventory Maintenance General Tab: Inventory Definition Field Req. Field Type Description Inventory Definition Inventory Number YES ALPHANUMERIC Unique characters identifying the Inventory item. The system stores and processes inventory in order of Inventory Number. The inventory number can be assigned using both numbers and letters. The records are stored in sequence beginning with the left-most character of the defined number. Description NO TEXT A word or phrase describing the Inventory Item. Ex. Stock for 5/10 Release, Blanked Only for 5/10 Release, Complete for 5/10 Release,.500 Plug Gages. 7A-13 Rev. 10/2006

14 Inventory Maintenance General Tab: Inventory Definition Field Req. Field Type Description Extended Inventory Description N/A PUSHBUTTON Activate the pushbutton to retrieve the Extended Part Description text box to enter additional information regarding the item if needed. Document Manager N/A PUSHBUTTON Activate the pushbutton to retrieve the Document Manager Utility. Please refer to the Tables and Utilities chapter for additional information regarding the Document Manager function. Alias Customer Number/ Alternative Sell Price N/A PUSHBUTTON Activate the pushbutton to retrieve the Inventory Aliases/ Alternative Sell Price form. This form is used when an item s in-house inventory number differs from the customer s part number. The user can capture multiple customer s inventory numbers and unit prices within the form. For additional information regarding the operation of this feature, refer to the Alias Customer Number/Alternative Sell Price chapter section. Part Number YES ALPHANUMERIC The Inventory Number is automatically defaulted into the field. The field was originally used to enter a customer s part number. If multiple customers are used, enter in the part numbers via the Alias Customer Number form. Note: A Part number generated in Parts Master Maintenance within the Bill of Materials (if using Visual EstiTrack TM Bill of Materials Add-on) can also be entered into the field. Part History N/A PUSHBUTTON Activate pushbutton to retrieve the Part History form. The Part History form displays a list of the item s Quotes, Sales and Shop Orders and Shipments and Invoices. Information retrieved into the form can be further reviewed by doubleclicking on the selected record. Revision NO ALPHANUMERIC The field is used if tracking multiple revisions for an item. Drawing Number NO ALPHANUMERIC Enter in the item s drawing number. Revision NO ALPHANUMERIC Enter in a revision number if tracking drawing revisions. Extended Part Attributes N/A PUSHBUTTON Activate pushbutton to add any extended part attributes using the retrieved Extended Part Attributes form. Up to 10 attributes maybe added to an inventory item. 7A-14 Rev. 10/2006

15 Inventory Maintenance General Tab: Inventory Definition Field Req. Field Type Description Inventory Type YES DROPDOWN Select the type of inventory added to the system from the dropdown list. Multiple inventory types are available for selection such as: Raw Material, Work in Process, Finished Goods and Tooling Purchased. Note: The Inventory Types included in the dropdown list are maintained in the table: TABLES INVENTORY TYPES Stock Unit Type YES DROPDOWN Define Stock Unit Type from dropdown list. This is a predefined uniquely identifying type of unit such as: 1, 10, 100 or The price and cost is defined for the quantity selected in the stock unit type. Note: The Unit Types available in the dropdown list are defined and maintained in the table: TABLES PRICE UNITS Linear UOM YES DROPDOWN Define linear unit of measure from the pick list. The system will automatically display the default RAW material Linear Unit of Measure set up in the Inventory Tab of the Company Maintenance table. For example, Pound, Feet (Linear Foot) or Inches can be entered for raw material or Pieces can be entered for items such as tools, shipping supplies, office supplies, etc. Note: Metric Units of Measure may be defined or converted if so desired. Note: The Unit of Measure table is predefined and can not be modified. Status NO DROPDOWN If desired, select the status of the Inventory Item from the dropdown list. The status of an inventory item maybe Active, Inactive, or Obsolete. 7A-15 Rev. 10/2006

16 Inventory Maintenance General Tab: Inventory Definition Field Req. Field Type Description Product Code NO DROPDOWN Select the Product Code from the dropdown list. The Product code is a unique identifier that describes the type of product. The Product Code can be used in combination with a Customer Discount and Invoicing. When a Discount Code is setup to a specific Product Code, the discount percentage for the specific product code is automatically displayed and calculated in the Invoice Details screen of Invoicing if shipping and invoicing is performed from inventory. Note: Product Codes are defined and maintained in the table: Tables Product Codes Stock UOM YES DROPDOWN Select the stock unit of measure from the dropdown list. This unit of measure is used to capture the measure of the defined inventory type. For Example, if RAW is selected as the Inventory Type, it maybe stocked using the pounds or feet UOM If TOOLS is selected as the Inventory Type, it maybe stocked as a Piece UOM Note: The Unit of Measure table is predefined and can not be added to or updated. Purchase UOM YES DROPDOWN Select the purchase unit of measure from the dropdown list. This is the Unit of Measure used to purchase the defined type of inventory. For example, RAW inventory types are probably purchased in Pounds, Feet, Sq. Feet, etc. Inventory types such as OFFICE SUPPLIES or TOOLS are probably purchased in the PIECE unit of measure. Division NO DROPDOWN Select the company division identified to the item from the drop down list (if applicable). Note: Divisions are maintained in the table: TABLES DIVISIONS(CELLS) 7A-16 Rev. 10/2006

17 Inventory Maintenance General Tab: Inventory Definition Field Req. Field Type Description Method YES DROPDOWN Select the inventory method from the dropdown list. The following methods are available: Standard Average FIFO LIFO If selected, the value is calculated by the standard cost per price unit. The Lot Costs Tab and Journal Tab of the inventory maintenance subsystem will NOT be accessible when selected. If selected, the value is calculated by the average cost per price unit. The Lot Costs Tab and Journal Tab of the inventory maintenance subsystem will NOT be accessible when selected. First In First Out used for lot controlled inventory items. Last In First Out used for lot controlled inventory items Note: The field automatically defaults to the inventory method defined in the Inventory Tab of the Company Maintenance table. Distribution Code NO DROPDOWN Select the distribution code from the dropdown menu. Note: Distribution codes are maintained in the table: TABLES DISTRIBUTION CODES Standard Cost/Price Unit N/A PUSHBUTTON Activate pushbutton to retrieve the Standard Unit Cost Breakdown form. The standard cost is broken down by labor, burden, material and other costs via this form. Please refer to the Standard Unit Cost Breakdown section in this chapter for additional information. Standard Cost/Price Unit NO NUMBER Enter in the standard cost per price unit of the inventory item into the field. If the attached pushbutton is used for calculation, the value from the Standard Unit Cost Breakdown form is automatically entered into the field. Note: If the Standard Inventory Control method is selected, the standard cost that will be used with the Inventory Used cost must be defined in order to apply the value to the Job Card Maint. s Job Costing. Average Cost/Price Unit NO NUMBER The system will calculate the Average Cost per Price Unit of the Inventory based on the average cost of what is on hand plus (+) the cost of what is being received and then divided by the total quantity of the on-hand. Note: If the Average Inventory Control Method is selected, the Standard Cost to be used with the Inventory Used Cost must be defined in order to apply the value to the Job Costing. 7A-17 Rev. 10/2006

18 Inventory Maintenance General Tab: Inventory Definition Field Req. Field Type Description Selling Price/Costs N/A PUSHBUTTON Activate the pushbutton to retrieve the Inventory Quantity Breakdown form. This form is used to calculate the Selling Price for defined quantities. Refer to the Inventory Quantity Breakdown section in this chapter for additional information. Selling Price/Costs NO NUMBER Define Selling Price Per Unit of the Inventory. Note: If you are invoicing and reducing from inventory with a Shop Order record, then the selling price will be brought over to the invoice. Value N/A DISPLAY The system will automatically calculate and display the Total Value of the Inventory based on the Inventory On-Hand (Unit of Measure) and the selected Standard, Average, FIFO or LIFO Cost Methods. (Kit) Reduce Components when shipped NO CHECKBOX Activate checkbox to kit the components for shipments. Consume by Stock UOM NO CHECKBOX Activate checkbox to consume the inventory by the stock unit of measure. Master-No. NO CHECKBOX Activate the checkbox if the inventory item is considered a Master Item. Master Inventory items are used for raw materials where a cluster of items are identical except for size. This master number is a generic number used to identify the cluster. Each item within the cluster is defined as a child raw material item. Please refer to the section Master Inventory Items for additional information regarding this feature. Master-No. NO ALPHANUMERIC Enter in the item s Master Inventory item number if the item is considered a child raw inventory item. Please refer to the section Master Inventory Items for additional information regarding this feature. Do not auto reduce from job cards NO CHECKBOX Activate checkbox if the item should not be automatically reduced from inventory when entering job cards. Serialize NO CHECKBOX Activate checkbox if the inventory item should be serialized. Note: If selected, the checkbox is automatically replaced by a dropdown selection of serialization methods. 7A-18 Rev. 10/2006

19 Inventory Maintenance General Tab: Inventory Definition Field Req. Field Type Description Obsolete (No Value) NO CHECKBOX Activate checkbox if the inventory item is obsolete. Inventory Item Notes N/A PUSHBUTTON Activate pushbutton to retrieve the Inventory Notes pop-up in order to store any additional notes regarding the inventory item. Helpful Hint! in the Inventory Number Naming Convention: The Run Code established in Schedule Maintenance maybe used for the naming convention. Our suggested Inventory Number and Run Code would be as follows: Shop Order Number first, e.g., 1, 2, then the Operation Number second, e.g., 1, 2, then maybe the Release Number last, e.g., 1, 2, ending up with Inventory Numbers and Run Codes looking like: 1-1-1, 1-1-2, 2-1-1, To distinguish RAW stock material from produced products you may want to use a different system of numbers, e.g., Shop Order Number first, e.g., 1, 2, then RAW stock material starting with 500, 501, etc. as your second number, then the Release Number last, e.g., 1, 2, ending up with RAW stock material Inventory Numbers looking like: , , , If you are going to be allocating RAW material to different Shop Order records you might want to use a description of the material as your Inventory Number, e.g., 1/2RD 12L14, 10HEX 360B. 7A-19 Rev. 10/2006

20 Alternative Aliases and Alternative Sell Prices User can enter alternative part number aliases and alternative sell prices by activating the pushbutton found in the Inventory Definition section of the Inventory Maintenance General Tab. The Inventory Aliases / Alternative Sell Prices form displayed in the figure below is retrieved upon activation. There, the user can add, update and delete alternative customer part numbers and sell prices for a defined inventory item. Figure 7a.8 Inventory Maintenance General Tab: Inventory Aliases / Alternative Sell Prices 7A-20 Rev. 10/2006

21 Adding a New Inventory Alias The following steps must be performed when adding a new Inventory Alias for a defined Inventory item: Retrieve the Inventory Aliases / Alternative Sell Prices form by activating the Inventory Definition section of the Inventory Maintenance General Tab. pushbutton found in the Activate the ADD pushbutton located at the bottom of the form to retrieve the Inventory Part Number Alias popup displayed below. Figure 7a.9 Inventory Part Number Alias form Enter in the customer/part information into the form. Activate the SAVE pushbutton located at the bottom of the form to capture the information permanently to the system. Updating Alternative Aliases and Sell Prices The following steps are required when updating alternative aliases for a defined inventory item: Highlight the Customer record in the Inventory Aliases / Alternative Sell Prices form displayed in figure 7a.x. Activate the UPDATE pushbutton located on the bottom of the form. The Inventory Part Number Alias form displayed in figure 7a.x is retrieved for update Activate the SAVE pushbutton located at the bottom of the form to capture the updated information permanently to the system. Removing Alternative Aliases and Sell Prices The following steps are required when removing alternative part number aliases and their corresponding sell prices for a defined inventory item from the system: Highlight the Customer record displayed in the Inventory Aliases / Alternative Sell Prices form (figure 7a.x). Activate the DELETE pushbutton located on the bottom of the form. Confirm the Delete Validation to permanently remove the record from the system. 7A-21 Rev. 10/2006

22 Standard Unit Cost Breakdown The Standard Unit Cost Breakdown form displayed in the figure below is automatically retrieved when the Standard Cost/Piece pushbutton is activated within the Inventory Definition section of the General Tab. The form is used to breakdown the standard unit cost by labor, burden, material and other costs. Figure 7a.10 Standard Unit Cost Breakdown Inventory Quantity Breakdown The Inventory Quantity Breakdown form displayed in the figure below is automatically retrieved when the Selling Price/Costs pushbutton is activated within the Inventory Definition section of the General Tab. This form is used to outline and determine item selling price for a predefined quantity range. Figure 7a.11 Inventory Quantity Breakdown 7A-22 Rev. 10/2006

23 Master Inventory Number Figure 7a.12 Defining a Master Inventory Item Visual EstiTrack TM offers users the unique capability to categorize a group of identical raw inventory items that differ only in size. The Master Number shown in the figure above, is a way of establishing a raw material item that represents all associated children raw material numbers of the same thickness and alloy but of different sizes. For example, a company may have 4, 6, 8, 10, and 12 sizes of the same alloy, and shape and thickness material of plate steel. The only difference in the material is their unique size. By creating a Master Inventory Number to represent this plate steel, the system can analyze this phantom Master Item and retrieve their collective inventory On Hand. The user can then see that there are 1000 lbs of this material type (steel plates with the same thickness and alloy) but that 1000lbs is made up of 200lbs of 10 plates and 800lbs of 12 plates. Children Inventory Definition To establish a Master Child relationship, enter in the Master Item number in the Master No. field circled in red below, for every child item defined. Child Inventory items need to be selected and defined wherever a Master Number is referenced in both material usage -Job Cards and in Purchasing. The system will recognize that a master number is defined and prompts for one of the children materials items to be selected. Figure 7a.13 Referencing a Master Item Number for all Children Inventory Items Bill of Materials Specific Inventory Numbers and quantities need to be defined when creating a formal indented Bill of Materials. During the actual build of an item however, the user may choose an alternative size. In the steel plate example mentioned above, the user may choose a 12 plate rather then the 10 (master) plate defined in the BOM. Purchasing When shop orders are created and material is allocated to the MASTER inventory number, Visual EstiTrack TM recognizes the item as a Master Item and forces the user within the PO screen to select the actual material size from the list of children alternate materials. 7A-23 Rev. 10/2006

24 Section 2: General Tab: Supplier The Supplier section displayed in the figure below is used to maintain lead times and reorder levels for a given supplier. Alternative Suppliers for the item can also be captured into the Alternative Supplier Maintenance form accessed via the following pushbutton:. Figure 7a.14 Inventory Maintenance General Tab: Supplier Inventory Maintenance General Tab: Supplier Field Req. Field Type Description Supplier Alternative Supplier Maintenance N/A PUSHBUTTON Activate pushbutton to enter in any alternative suppliers. The Alternative Supplier Maintenance form is automatically retrieved upon activation for entry. Refer to the Alternative Supplier Maintenance section for additional information regarding the form. Code NO ALPHANUMERIC Define the Supplier Code in which the inventory is purchased from. If data is distributed from Receiving into a specified Inventory record, the system will automatically display the last Supplier. The Supplier Reorder details are located in the Inventory Maintenance General form. Note: The defined supplier is automatically used when auto creating purchase orders. Non-Stocked Item NO CHECKMARK Activate checkbox if the item is considered a non-stocked item. 7A-24 Rev. 10/2006

25 Inventory Maintenance General Tab: Supplier Field Req. Field Type Description Source NO DROPDOWN Select the source of the item from the dropdown menu. The item can either be sourced by the following two options. Make Buy Approved Only NO CHECKMARK Activate checkbox if the inventory item can only be purchased from vendors with an Approved status. Part Number NO ALPHANUMERIC Define the Supplier's identifying Part Number, if any. Reorder Level NO NUMBER Define the Reorder Level or point of stocked inventory items you want used before you need to reorder. Not to exceed 99,999,999. Note: This field is only required if you plan on using the Inventory Reorder Report and the Automatic P.O. Generator. When the inventory drops below this specified level it will be printed on the Inventory Reorder Report and you can select to Automatically Create Purchase Orders (Automatic P.O. Generator.) Reorder Quantity NO NUMBER Define the Reorder Quantity of the stocked inventory items to be ordered when the inventory item reaches the Reorder Level specified. This comes from the Available / Needed Quantity field. Note: This field is only required if you plan on using the Inventory Reorder Report and the Automatic P.O. Generator. The Quantity will be listed next to the Reorder Level quantity on the Inventory Reorder Report. Lead Time (Days) NO NUMBER Define the amount of time in days it will take to receive the inventory item when placing an order. Remember to allow time for transporting and receiving procedures. Date Received NO DATE Define the Date in which you Received this Inventory. Note: If you DISTRIBUTE data from Receiving into a specified Inventory record the system will automatically display the Date Received for you. Last Cost NO NUMBER The system will automatically display the last cost from Receiving if you distribute to Inventory. Otherwise you may manually make your own entry. 7A-25 Rev. 10/2006

26 Inventory Maintenance General Tab: Supplier Field Req. Field Type Description Quantity Received NO NUMBER The system will automatically display the word Lbs., Feet, Sq. Ft, or Pieces depending on the Inventory Type field defined. Then you will need to enter the quantity of Lbs., Feet, Sq. Ft, or Pieces Received depending on what type of Inventory defined. Note: If you DISTRIBUTE data from Receiving into a specified Inventory record the system will automatically display the Quantity Received for you. 7A-26 Rev. 10/2006

27 Alternative Suppliers Users can enter alternative suppliers for purchased items by activating the pushbutton found in the Supplier section of the Inventory Maintenance General tab. The Alternative Supplier Maintenance form displayed in the figure below is retrieved upon activation. There the user can add, update and delete suppliers of the defined inventory item. Figure 7a.15 Inventory Maintenance General Tab: Alternative Supplier Maintenance Adding a New Alternative Supplier The following steps must be performed when adding Alternative Suppliers for a defined Inventory item: Retrieve the Alternative Supplier Maintenance form by activating the section of the Inventory Maintenance General Tab. pushbutton found in the Supplier Activate the ADD pushbutton located at the bottom of the form to retrieve the Alternative Supplier Maintenance pop-up displayed below. 7A-27 Rev. 10/2006

28 Figure 7a.16 Inventory Part Number Alias form Enter in the vendor/part information into the form. Activate the SAVE pushbutton located at the bottom of the form to capture the information permanently to the system. Updating Alternative Suppliers The following steps are required when updating alternative suppliers for a defined inventory item: Highlight the Vendor record in the Alternative Supplier Maintenance form displayed in figure 7a.x. Activate the UPDATE pushbutton located on the bottom of the form. The Alternative Supplier Maintenance pop-up displayed in figure 7a.x is retrieved for update Activate the SAVE pushbutton located at the bottom of the form to capture the updated information permanently to the system. Removing Alternative Suppliers The following steps are required when removing alternative suppliers for a defined inventory item from the system: Highlight the Vendor record in the Alternative Supplier Maintenance form displayed in figure 7a.x. Activate the DELETE pushbutton located on the bottom of the form. Confirm the Delete Validation to permanently remove the alternative supplier from the system. 7A-28 Rev. 10/2006

29 Section 3: General Tab: Quantities The Quantity section displayed in the figure below provides the user with a display of all significant quantity levels pertaining to the selected Inventory Item. The user can review on-hand quantities as well as allocated, available and on order. The On-Order quantity can be reviewed in detail by activating the On-Order pushbutton. Once activated, all related purchase orders and shop orders are immediately retrieved for review. An item s quantities displayed are automatically adjusted when Job Cards are updated in Production and items are shipped through Shipment and Invoice Maintenance. Figure 7a.17 Inventory Maintenance General Tab: Quantities Inventory Maintenance General Tab: Quantities Field Req. Field Type Description Quantities UOM On Hand YES NUMERIC DISPLAY The system automatically calculates and displays the Lbs., Feet, Sq. Ft, or Pieces of Inventory On-Hand after the beginning balance is defined. The following information is used when entering the beginning balance: Average/ Standard FIFO/ LIFO Enter the beginning balance directly into the field. To enter in a beginning balance, a journal entry must be created. Select the Adjust Over button located in Inventory Journal Tab to create a beginning balance entry. Additional information regarding this process is provided further in the chapter below. Allocated N/A DISPLAY The system automatically calculates and displays the quantity Allocated in the Inventory Allocations screen. Available N/A DISPLAY The system automatically subtracts the Allocated quantity from the Quantity On-Hand and displays the Quantity Available. 7A-29 Rev. 10/2006

30 Inventory Maintenance General Tab: Quantities Field Req. Field Type Description On Order Details N/A PUSHBUTTON Activate pushbutton to retrieve the Inventory On Order form. The details retrieved into the form are pulled from the Purchase Order Maintenance subsystem. Note: The Purchase Order s status must be Open for it to appear in the form. On Order N/A DISPLAY The system automatically displays the quantity On-Order that is identified in Purchase Order Maintenance. See the Purchase Order Maintenance subsystem for additional information. 7A-30 Rev. 10/2006

31 Section 4: General Tab: Raw Material This section is used to define Raw Material Specifications for Raw Material Calculations used during Quotation, Inventory Allocations and On-hand Calculations as well as Purchase Order Maintenance. Information should only be entered for items defined as a RAW inventory type. The fields included in the table below are available for entry for any material selected. Additional fields included in the section are directly related to the shape of the material selected via the dropdown menu. In the example below, a HEX bar shape is selected. In addition to the standard Raw Material fields, HEX bar shape specific fields are added. Numerous types of shapes are available for selection including sheet, plate, coil, liquid, etc. Figure 7a.18 Inventory Maintenance General Tab: Raw Material Inventory Maintenance General Tab: Raw Material Field Req. Field Type Description Raw Material Shape NO DROPDOWN Select the RAW Material Shape Code from the dropdown list. The Material Shape Code selected retrieves an additional group of shape specific fields for entry. Material Type NO DROPDOWN Select the Material Type Code from the predefined dropdown list identifying the raw material for the defined inventory item. Finish NO ALPHANUMERIC Enter in the RAW Material Surface Finish for the defined inventory item. Tolerance NO NUMERIC Enter in the tolerance of the purchased raw material item. Lbs/Ft NO NUMERIC Enter the selected material s square feet (pounds per feet). Note: The Shapes provided in the Shape dropdown list cannot be modified by the user. If modifications need to be made, please contact Henning Industrial Software, or A-31 Rev. 10/2006

32 Allocations Tab The Allocations tab displayed in the figure below displays an aggregate of all demands placed onto the inventory item. It is used to view the inventory item s requirements made from demands created by Shop Orders and Sales Orders. The form is broken down into three sections. Section one of the form displays the Inventory Number and description. Section two of the Allocations tab displays all Sales and Shop Orders that have allocations made against the inventory item. A brief summary of the order status is also displayed showing the number of pieces ordered, the quantity of good items produced and the balance to produce or ship. The user can also view each record by double-clicking on the highlighted order. The Inventory Allocations form is retrieved allowing the user to view the individual allocation record. Section three of the figure below allows the user to monitor a highlighted order by activating the ORDER MONITOR pushbutton. Either the Sales Order Monitoring form or the Order Production Monitoring form is retrieved depending on the type of order selected. Although the user can manually add new allocations via the ADD pushbutton, it is not recommended. Allocations should only be made automatically by the demands created by sales and shop orders. Section 1 Section 2 Section 3 Figure 7a.19 Inventory Maintenance Allocations Tab Note: The Quantity displayed in the Prod/Ship column displayed above, reflects the Quantity of Good parts produced. The value is taken directly from the Good quantity produced entered into item s associated Job Card. 7A-32 Rev. 10/2006

33 Inventory Maintenance Allocations Tab Field Req. Field Type Description Estimated Annual Usage NO NUMBER Enter in the estimated annual usage amount. This user defined forecast is used to plot the target shipping metrics found in the Shop Advisory s Executive Summary Reports. Display YES RADIOBUTTON The Display radio group allows the user to configure the Allocations tab to display one of the following: Order Number Part Number Finished Goods Inventory Number Order Monitor N/A PUSHBUTTON The Order Monitoring pushbutton retrieves additional information regarding the highlighted allocation. The information retrieved is tailored to the order type highlighted. Sales Orders Shop Orders The Sales Order Monitoring form is retrieved upon activation. Additional information regarding the form can be found in Chapter 4: Sales Order Sales Order Monitoring. The Order Production Monitoring form is retrieved upon activation. Additional information regarding the form can be found in Chapter 4: Shop Orders Order Production Monitoring. Add N/A PUSHBUTTON Activate the pushbutton to add a new allocation to the inventory item. The Inventory Allocations form is retrieved in Add mode allowing the user to directly enter in either a new Sales or Shop order for the inventory item. Additional information regarding the form is provided further in the chapter below. Update N/A PUSHBUTTON Activate the pushbutton to retrieve the Inventory Allocations form for the highlighted order. Additional information regarding the form is provided further in the chapter below. Delete N/A PUSHBUTTON Activate the pushbutton to remove the highlighted order from the Allocations tab. The record is removed from the system once the delete validation is confirmed. 7A-33 Rev. 10/2006

34 Inventory Allocations The Inventory Allocations form displayed in the figure below represents the allocation made by either a Sale or Shop order for an inventory item. Changing Inventory Allocations Although the information can be edited directly within the form, it is recommended to NOT make any changes to the allocations. It is important that all changes made should be reflected back to the originating Sales and Shop Orders. Therefore, all changes should be made directly within the sales and shop orders screens. Once the changes are made, activate the ALLOCATE INVENTORY pushbutton found in the appropriate screen (The Sales Order Line item screen for Sales Orders or the Shop Order s Due Dates tab within the Shop Order Maintenance subsystem). Inventory Allocations Shop Orders Figure 7a.20 Inventory Allocations Shop Order 7A-34 Rev. 10/2006

35 Inventory Allocations Sales Orders Figure 7a.21 Inventory Allocations Sales Orders Inventory Allocations Cut Size The Cut Size tab displayed below is a reflection of the Cut Size tab defined within the Shop Order. The Cut Size tab is used to determine the number of pieces produced from a bar. Figure 7a.22 Inventory Allocations Cut Size tab 7A-35 Rev. 10/2006

36 Heat/Warranties Tab The Heats/Warranties tab displayed in the figure below is used to optionally and historically track heats or raw material. Heat records are added when receiving inventory items to the system via the Receipt Detail form. Records can also be added by directly entering them into the Heats/Warranties tab displayed below. The form is broken down into three sections. Section one of the form displays the Inventory Number and description. Section two of the tab displays any recorded Heat and Warranty numbers for the Inventory item. Section three of the figure below allows the user to add or update a highlighted record by activating the available pushbuttons. Upon activation the Heats Details form is retrieved for entry. Additional information regarding this form is available in the chapter below. Section 1 Section 2 Section 3 Figure 7a.23 Heats and Warranties Tab 7A-36 Rev. 10/2006

37 Inventory Maintenance Heats and Warranties Tab Field Req. Field Type Description Add N/A PUSHBUTTON Activate the pushbutton to add a new heat and warranty record to the inventory item. The Heats Detail form is retrieved in add mode for entry. Additional information regarding the form is provided further in the chapter below. Update N/A PUSHBUTTON Activate the pushbutton to retrieve the Heats Detail form for the highlighted order. Additional information regarding the form is provided further in the chapter below. Delete N/A PUSHBUTTON Activate the pushbutton to remove the highlighted order from the Allocations tab. The record is removed from the system once the delete validation is confirmed. 7A-37 Rev. 10/2006

38 Heats Detail Form The Heats Detail form displayed in the figure below can be retrieved from the Heats and Warranties tab by either updating an existing record or by adding a new record to the inventory item. The form is broken down into three tabs: General Information maintains information regarding the receipt of the raw material Chemical Analysis maintains the material characteristics of the item and is within the Certification of Compliance. The Certification of Compliance is found within the menu bar: QUALITY CERTIFICATION. Warranty Information A specialized function created to maintain the warranty details. The tab can be used to track warranties for single or multiple component items. Additional information regarding this function is provided in the chapter below. Figure 7a.24 Heats Detail Form 7A-38 Rev. 10/2006

39 Heats Detail Form: General Information Tab The General Information tab displayed in figure 7a.x maintains information regarding the receipt of the raw material captured under the specified heat number. Inventory Maintenance Heats and Warranties Tab: Heats Detail General Information Field Req. Field Type Description Description NO ALPHANUMERIC Enter in the description of the captured heat number. Notes NO ALPHANUMERIC A free form text box used to capture any additional information. Quantity NO NUMBER Enter in the quantity received of the captured heat number. Supplier NO ALPHANUMERIC Enter in the supplier of the raw material received. The attached search key is available for supplier selection. Received Date NO DATE Enter in the date of receipt. P.O. Number NO ALPHANUMERIC Enter in the purchase order number pertaining to the receipt. The attached search key is available for purchase order selection. 7A-39 Rev. 10/2006

40 Heats Detail Form: Chemical Analysis Tab The breakdown of the chemical analysis can be captured into the following form if needed. The information entered into the form is used for printing out the Certification of Compliance. The certification can be accessed via the following menu options: QUALITY CERTIFICATION. Figure 7a.25 Chemical Analysis Breakdown of the Raw Material Item 7A-40 Rev. 10/2006

41 Heats Detail Form: Warranty Tab The selection of the Warranty tab displayed in the figure below produces the Warranty subsystem where users can capture warranties defined for specified customers. The warranty can be captured for either single or multiple component items. This Warranty subsystem is broken down into three tabulations displayed and outlined below. Warranty Information Customer Information The Customer Information tab displayed below was created as a customer specific feature. This feature allows the user to record dealers and end users for a defined heat number. The heat number field was used to track individual sales of the warranted item. Flexibility is built into the form allowing the user to track warranty in multiple ways. Figure 7a.26 Warranty Information Tab 7A-41 Rev. 10/2006

42 Warranty Information Warranty Tab The Warranty tab is used to track the warranty for either single or multiple component items. Enter each tracked warranty component into the Item Description field. The warranty length (in years) and expiration date can each be entered in for the defined warranty item. Figure 7a.27 Warranty Information tab Warranty Outline 7A-42 Rev. 10/2006

43 Warranty Information Service History The Service History tab displayed below is a memo field used to track any service activity. Figure 7a.28 Warranty Information tab Service History 7A-43 Rev. 10/2006

44 Tooling/Class The Tooling/Classification tabulation is used to capture Inventory Item specific configurations. In addition, a variety of manufacturing attributes as well as cycle count definitions are maintained within the tab. Figure 7a.29 Tooling/Class Inventory Maintenance Tooling and Class Tabulation Field Req. Field Type Description Tooling Definition Workcenter NO DROPDOWN Select the default workcenter from the dropdown menu. F/G Number NO ALPHANUMERIC Enter in the Finished Goods Inventory number into the field or used the attached search button to select the F/G item number from the system. Tool/Gage Drawing Number NO ALPHANUMERIC Enter in the Tool/Gage Drawing Number associated with the inventory item. Tool EDP Number NO ALPHANUMERIC An optional unique number that identifies a vendor s catalog number. 7A-44 Rev. 10/2006

45 Inventory Maintenance Tooling and Class Tabulation Field Req. Field Type Description Classification/ Cycle Count Definitions Classification NO DROPDOWN Select the classification for the item from the dropdown list. Item s maybe classified with one of the following options: -- Buy and Stock -- Cleaning Supplies -- Finished Goods -- Gages Purchased -- Office Supplies -- Raw Stock -- Tooling Purchased -- Work in Process A-B-C Type NO DROPDOWN The ABC dropdown identifiers are used in conjunction with the Inventory Adjustments Generator form found within the Materials menu. By identifying the inventory item with either an A,B, or C type, provides the user an additional criteria for generating cycle counts. Please refer to the chapter section: Inventory Adjustments Generator for additional information regarding this form. Default Location NO DROPDOWN Select the Default Location for the inventory item. The location defined is retrieved as a default whenever the item is placed into inventory. For example, the defined default Location and Bin are both used in the Receiving as well as the Job Card maintenance screens. Default Bin NO DROPDOWN Select the Default Bin for the inventory item. The bin defined is retrieved as a default whenever the item is placed into inventory. For example, the defined default Location and Bin are both used in the Receiving as well as the Job Card maintenance screens. Tickets/1000 NO NUMBER Enter in the number of pan tickets to print for a shop order. The pan tickets are mini routers used to tag pans of parts to be produced. Please refer to manual heading Pan Ticket Maintenance of chapter six Production for additional information regarding this option. Date of Last Physical NO DATE Enter in the date of the last physical inventory made on the inventory item. 7A-45 Rev. 10/2006

46 Inventory Maintenance Tooling and Class Tabulation Field Req. Field Type Description Parts/Pan NO NUMBER Enter in the number of parts included in a production pan. Shipping Material Specifications NO ALPHANUMERIC Enter in the raw material classification the material type of the finished good product. This information is printed on the BOL. Include Daily Buckets NO CHECKBOX Activate checkbox to include daily shipment buckets on the shipping expedite report. This feature is commonly used for high volume shipping items. It enters the daily shipping requirements for the inventory item into the shipping expedites report. Part Family NO ALPHANUMERIC Enter in the part family defined to the item. The part family is used by the Visual Shop manager during scheduling. Parts are sorted according to their defined part families in order to minimize setup. Count Cycle NO NUMBER Enter in the cycle count interval. This is used in conjunction with the date of the last physical in order to determine date of the next cycle count. Export Defaults Tariff Number NO NUMBER Enter the default tariff number into the field. Country of Origin NO NUMBER Enter in the default country of origin into the field. Default Customer Customer NO ALPHANUMERIC Enter in the default customer into the field or used the attached search key for selection. Continuous Flow Shop Order Shop Order Number NO ALPHANUMERIC Enter in a shop order number that will be used exclusively for the finished good part. The defined value is used in coordination with the step-up number entered below. If left blank, the finished good part number is used as the shop order number along with the defined step-up suffix defined below. Note: Prior to use, the following configuration must be activated. Tables Company Maintenance Auto-Number tab Use F/G Step-up checkbox. Please see below for additional information regarding this feature. 7A-46 Rev. 10/2006

47 Inventory Maintenance Tooling and Class Tabulation Field Req. Field Type Description Step Up Number NO NUMBER Enter in a step up value used in coordination with the defined continuous flow shop order number. The shop order suffix will increment by the defined value when new orders are created. Lean Manufacturing Note: Prior to use, the following configuration must be activated. Tables Company Maintenance Auto-Number tab Use F/G Step-up checkbox. Please refer to the Continuous Shop Order section following for additional information regarding this feature. PFEP Plan For Every Part Average. WTS Buffer Work in Process to Stock Buffer. NO NUMBER Enter in the average number of parts produced a day. The value entered is used in the Inventory reports for plotting the actual number of parts produced versus the defined average. NO NUMBER Enter in the average number of days it takes for the inventory item to be moved from work in process into stock. This defined average is used within the inventory reports to plot the actual versus the value defined. F/G Buffer Finished Goods Buffer NO NUMBER Enter in the finished goods buffer quantity. The defined value is used within the inventory reports for plotting the actual versus the value defined. Planner Planner Code NO ALPHANUMERIC Enter in the planner responsible for this item. This code can be used as a filter on screens and reports. PPAP PPAP NO NUMBER Enter in the date the Production Parts Approval Process was performed on this item. Annual Usage EAU NO NUMBER Enter in the Estimated Annual Usage of this item. This entry is used for the metrics graphic. Surcharge Surcharge NO NUMBER This field is used if a surcharge is required for the price inventory item. This entered value is automatically displayed and used in the Surcharge field of the Sales Order Line Item. 7A-47 Rev. 10/2006

48 Inventory Maintenance Tooling and Class Tabulation Field Req. Field Type Description Suborder Creation Behavior Do not create a suborder if used on Shop Order NO CHECKBOX Activate checkbox if you do not want this MAKE item to be created as a suborder when a shop order uses this item. 7A-48 Rev. 10/2006

49 Continuous Flow Shop Order Number Continuous flow shop orders can be set-up for finished good items. The defined value is used in coordination with a defined step up number and will be applied exclusively for all shop orders created for the finished good item. Figure 7a.30 Continuous Flow Shop Order Configuration Requirements Tables Company Maintenance Auto-Number tab Figure 7a.31 Continuous Flow Tables Configuration 7A-49 Rev. 10/2006

50 Packaging Tab The Packaging tab displayed below is used to define customer packaging requirements on finished good inventory items. The information defined is used in conjunction within the Shipping and the Packaging Maintenance subsystems. For example, the information entered can be viewed as the Standard Packaging Instructions of the Packaging Maintenance s Packaging tab. Please refer to Chapter 7C Shipping for additional information regarding shipping and packaging procedures. The form is broken down into two distinct sections: Section one is used to enter part and packaging specifications. Section two allows the user to enter packaging specifications by shipping addresses. Additional information regarding this feature is provided in the chapter below. Section 1 Section 2 Figure 7a.32 Packaging Tab 7A-50 Rev. 10/2006

51 Inventory Maintenance Packaging Tabulation Field Req. Field Type Description Part Weight (Average Part Weight) Weight/Unit (APW) NO NUMBER Enter in the item s weight per unit. APW % Tolerance +/- NO NUMBER Enter in the tolerance for the item s average part weight. Current Packaging Specifications Tab Previous Packaging Specifications Tab NO TEXT Enter in any current packaging specifications regarding the finished goods inventory item. After the user SAVES any changes made to the Current Specifications tab, the changes are recorded into the Previous Specifications tab. N/A DISPLAY The Previous Packaging Specifications tab displays a record of all changes made to the Current Packaging Specifications. The Visual EstiTrack user name along with a date and time stamp is recorded with the packaging change made. The tab is denoted in Red when any changes to the specifications are logged into the system. Default Packaging Definition Total Tare Weight NO NUMBER Enter in the total weight of the packaging material used. Box Quantity NO NUMBER Enter in the inventory item s box quantity. Box Type NO DROPDOWN Select the packaging box type from the dropdown menu. Box types are maintained in the table: Tables Inventory Container Types Production/Service Qualifier NO DROPDOWN The selected Qualifier supports the packaging subsystem. Box Label N/A PUSHBUTTON Activate pushbutton to Add or Edit a box label. The Label Editor is automatically retrieved upon activation. Additional information regarding this function is provided in the chapter below. 7A-51 Rev. 10/2006

52 Inventory Maintenance Packaging Tabulation Field Req. Field Type Description NO DROPDOWN Select the box label type from the dropdown list. Box labels types can be added to the list by using the Label Editor defined above. NMFC Code NO DROPDOWN Select the National Motor Freight Classification Code from the dropdown list. The list of NMFC entries are maintained in the table: TABLES FREIGHT CALCULATOR TABLES NMFC CODES Box Quantity Weight Limits The Box Quantity Weight fields are used in coordination with a scale interface. Please contact Henning Software for additional information regarding Scale Interfaces. Upper Quantity NO PERCENTAGE Enter in the upper quantity tolerance. Lower Quantity NO PERCENTAGE Enter in the lower quantity tolerance. Upper Weight NO PERCENTAGE Enter in the upper weight tolerance for the boxed quantity. Lower Weight NO PERCENTAGE Enter in the lower weight tolerance for the boxed quantity. Master Label N/A PUSHBUTTON Activate pushbutton to Add or Edit a master box label. The Label Editor is automatically retrieved upon activation. Additional information regarding this function is provided in the chapter below. NO DROPDOWN Select the master box label type from the dropdown list. Box labels types can be added or edited to the list by using the Label Editor defined above. Pallet Weight Limits Upper Weight NO NUMBER Enter in the upper pallet weight limit. Lower Weight NO NUMBER Enter in the lower pallet weight limit. Customer Specific Packaging Definitions 7A-52 Rev. 10/2006

53 Inventory Maintenance Packaging Tabulation Field Req. Field Type Description Add N/A PUSHBUTTON Activate pushbutton to enter a new box specification. The Boxing Specifications by Shipping Address form is retrieved for entry. Additional information regarding this form is provided in the chapter below. Update N/A PUSHBUTTON Activate pushbutton on a highlighted record to update an existing box specification. The Boxing Specifications by Shipping Address form is retrieved for update. Additional information regarding this form is provided in the chapter below. Delete N/A PUSHBUTTON Activate pushbutton to delete the highlighted box specification. The record is permanently removed from the system when the delete validation is confirmed. Copy N/A PUSHBUTTON Activate pushbutton to make a copy of the highlighted box specification. The Boxing Specifications by Shipping Address form is retrieved with the fields duplicating the highlighted record. Scale Interface Packaging tab is also used when interfacing the Visual EstiTrack TM software to weight scales for part verification. Please contact Henning Software if you are interested in setting up this utility. 7A-53 Rev. 10/2006

54 Label Editor The Label Editor form displayed below is used create and configure the packaging label, the number of times the label is printed and also allows users the option to change the format of the label by activating the EDIT LABEL pushbutton found on the Label Details form. Figure 7a.33 Label Editor 7A-54 Rev. 10/2006

55 Customer Specific Packaging Definitions Visual EstiTrack TM offers the ability to customize packaging specifications per shipping address. Therefore customers can have packaging catered to their specific location needs. The form is also used to send Advanced Shipping Notifications via EDI to each defined ship location. The Boxing Specifications by Shipping Address form displayed in the figure below provides for a comprehensive specification checklist for a defined shipping address. The form encompasses all of the general packaging information offered via the section one of the Packaging tab while also allowing the user the ability to enter in additional detail such as: Ship to location/dock EDI definition Pallet and Container types Quantities per Container and associated tolerances Weight Calculator Packaging, BOL, and Packing Slip Specifications Figure 7a.34 Boxing Specifications by Shipping Address ASN EDI Note: Because every customer has unique trading partners, please contact Henning Software for customization of this utility. 7A-55 Rev. 10/2006

56 Locations Tab The Locations Tab displayed in the figure below is a summary of an inventory item s on-hand locations. Each location holding inventory is retrieved into the list (section two) displaying the location, bin and quantity. The last column Pieces automatically converts the quantity into pieces. This is often used for converting pounds of raw material into pieces. Users can filter the locations retrieved according to the type of quantity selected in the List radio display box. Inventory can also be transferred between two locations using the TRANSFER BETWEEN LOCATIONS pushbutton found in section one of the form below. Additional information regarding the transfer procedure is provided in the chapter below. Section 1 Section 2 Figure 7a.35 Locations Tab Inventory Maintenance Locations Tab Field Req. Field Type Description Inventory Number N/A DISPLAY Displays the selected item s inventory number. Part Number N/A DISPLAY Displays the item s part number. Description N/A DISPLAY Displays the item description. 7A-56 Rev. 10/2006

57 Inventory Maintenance Locations Tab Field Req. Field Type Description Revision N/A DISPLAY Displays the part revision. Transfer Between Locations N/A PUSHBUTTON Activate the pushbutton to retrieve the Inventory Group Transfer form used to transfer quantities from the selected inventory location and bin to new location and bin. List YES RADIOBUTTON Select a radio button to filter the results list displayed in section two of figure 7a.x. The following filters are available: All Select ALL to retrieve every location holding the inventory item. Available to Use Select AVAILABLE TO USE to retrieve locations of the items that have quantities that are available to use. Available to Ship Select AVAILABLE TO SHIP to retrieve locations of the items that have quantities that are available to ship only. Package and Hold Select PACKAGE AND HOLD to retrieve locations of the items that have quantities that are in Package and Hold status. On Consignment Select ON CONSIGNMENT to retrieve locations of the items that have quantities that are on consignment only. FG Only Select FG ONLY to retrieve locations of the items that have quantities that are finished goods only. WIP Only Select WIP ONLY to retrieve locations of the items that have quantities that are Work In Process only. Total (Quantity) N/A DISPLAY Displays the total quantity of the retrieved list of locations. Total (Pieces) N/A DISPLAY Displays the total pieces of the retrieved list of locations. 7A-57 Rev. 10/2006

58 Inventory Group Transfer Inventory may be transferred between two locations using the TRANSFER BETWEEN LOCATIONS pushbutton found in section one of the Locations Tab. The Inventory Group Transfer form retrieved is used for quick, general transfers between two locations. Any associated information tied to the quantity transferred, is carried along with the inventory as it is moved. For lot controlled transfers, the Inventory Transfer Detail form accessed within the Lots tab is used. The form allows the user to enter in notes, shop order information, and revisions for a specified lot. Please refer to section Inventory Transfer Detail for additional information regarding this transfer utility. Figure 7a.36 Inventory Group Transfer General Inventory Transfers Highlight the current location of the quantity in section two of figure 7a.x Activate pushbutton located in section one of figure 7a.x to retrieve the Inventory Group Transfer form displayed above. Enter in the quantity into the Quantity Transferred field. Select the new Inventory Location from the dropdown entries. Select the new Bin from the dropdown entries. Activate the SAVE pushbutton to complete the transfer. 7A-58 Rev. 10/2006

59 Inventory Maintenance Locations Tab Inventory Group Transfer Field Req. Field Type Description Current Location N/A DISPLAY Displays the current location of the selected quantity to be transferred. Bin N/A DISPLAY Displays the current bin location of the selected quantity to be transferred. Quantity Transferred YES NUMBER Enter in the transfer quantity. Inventory Location YES DROPDOWN Select the new Inventory Location from the dropdown menu. Bin YES DROPDOWN Select the new bin location from the dropdown menu. Save N/A PUSHBUTTON Activate save to complete the transfer procedure. Cancel N/A PUSHBUTTON Activate to cancel any changes made to the form. 7A-59 Rev. 10/2006

60 Lots Tab The Lots Tab displayed in the figure below is a summary of an inventory item s lots and locations. Each lot is retrieved into the results list (section two) displaying the location, bin and quantity and costs. The display of the form can be configured using the Display radio buttons found in section three of the form. Users can filter the results according to the List radio display selected in section one of the form. Users can also view any associated heats and certifications relating to the selected inventory lot via the form. Inventory lots can also be transferred using the TRANSFER BETWEEN LOCATIONS pushbutton found in section one of the form below. Additional information regarding the transfer procedure along with other features is provided in the chapter below. Section 1 Section 2 Section 3 Figure 7a.37 Inventory Maintenance - Lots Tab 7A-60 Rev. 10/2006

61 Inventory Maintenance Lots Tab Field Req. Field Type Description Inventory Number N/A DISPLAY Displays the selected item s inventory number. Part Number N/A DISPLAY Displays the item s part number. Description N/A DISPLAY Displays the item description. Revision N/A DISPLAY Displays the part revision. Transfer Between Locations N/A PUSHBUTTON Activate the pushbutton to retrieve the Inventory Group Transfer form used to transfer quantities from the selected inventory location and bin to new location and bin. List YES RADIOBUTTON Select a radio button to filter the results list displayed in section two of figure 7a.x. The following filters are available: All Select ALL to retrieve all lots for the selected inventory item. Available to Use Selected Available to Use to retrieve a list of lots that are available to use. Available to Ship Select to retrieve a list of lots that are available to ship. Package and Hold Select to retrieve a list of lots that are assigned as Package and Hold. On Consignment Select to retrieve a list of lots that are on consignment. FG Only Select to retrieve a list of finished goods lots only. WIP Only Select to retrieve a list of work in process lots. Add Certification N/A PUSHBUTTON Activate pushbutton to add a new certification to the highlighted lot. The Document Manager subsystem is retrieved for new certification entry. Review Certifications N/A PUSHBUTTON Activate pushbutton to review any certifications associated to the highlighted lot. The Document Manager subsystem is retrieved for certification review. Review Heat N/A PUSHBUTTON Activate pushbutton to review the heat record of the highlighted inventory lot. The Heat Detail form is retrieved with the heat information. Totals (Quantity) N/A DISPLAY Displays the total quantity of the retrieved list of lots. Total (Extended Cost) N/A DISPLAY Displays the total extended cost of the retrieved list of inventory lots. 7A-61 Rev. 10/2006

62 Inventory Maintenance Lots Tab Field Req. Field Type Description Display YES RADIOBUTTON The list of the display radio button is available to configure the second, third and fourth columns of the form. The information displayed reflects the radio button display selected. Order Location Displays the associated shop order and location of the retrieved list of lots. Lot/SN/Heat/Supp Displays the lot numbers, serial numbers, heat numbers and suppliers of the retrieved list. Notes Displays any captured lot notes for the retrieved list. Remnant Displays remnant size of each lot retrieved. Customer Displays the customer, color, and country of origin of the retrieved lot list. Display YES RADIOBUTTON This second display radio list allows the user to configure the form to either show the unit cost of the lot or to display the piece quantity of the retrieved list of lots.. Per Unit Cost Displays the unit cost of the retrieved list of lots. Piece Quantity Displays the piece quantity of the retrieved list of lots. 7A-62 Rev. 10/2006

63 Inventory Transfer For lot controlled inventory transfers, the Inventory Transfer Detail form displayed below is used. Additional attributes such as shop order reservation, heat numbers and revisions can also be captured within the form. Please refer to the associated table outline for additional features and attributes. Figure 7a.38 Transferring lots between locations Lot Controlled Inventory Transfers Highlight the transfer lot in section two of figure 7a.x Activate pushbutton located in section one of figure 7a.x to retrieve the Inventory Transfer Detail form displayed above. Enter in transfer attributes as required. Enter in the quantity into the Quantity Transferred field or use the PC TO STOCK UOM CALCULATOR for transfer quantity calculation. Select the new Inventory Location from the dropdown entries. Select the new Bin from the dropdown entries. Enter the Lot Transfer notes as needed. Activate the SAVE pushbutton to complete the transfer. 7A-63 Rev. 10/2006

64 Inventory Maintenance Lots Tab Inventory Transfer Detail Field Req. Field Type Description Reserve for Shop Order NO ALPHANUMERIC Lots can be reserved exclusively for a specified shop order by entering in the shop order or using the attached search key for shop order selection. Producing Shop Order N/A DISPLAY Displays the shop order number that produced the selected lot. Lot/Serial Number NO ALPHANUMERIC The Lot/Serial number of the selected item. The field is in edit mode allowing the user to enter or change the lot as needed. Last Operation Number NO NUMBER Enter in the last operation number used to produce the lot. The system automatically displays the last operation registered in the system. Heat Number NO ALPHANUMERIC Enter in the associated heat number. Any previously registered numbers are automatically retrieved. Current Location N/A DISPLAY Displays the current location of the selected lot. Bin N/A DISPLAY Displays the current bin of the selected lot. Quantity Transferred NO NUMBER Enter in the quantity to transfer into the field or use the attached Pc to Stock Calculator for quantity calculation. Pc to Stock UOM Calculator N/A PUSHBUTTON Activate pushbutton to calculate the Inventory Quantity using the pop-up calculator. Inventory Location YES DROPDOWN Select the Transfer To: Inventory location from the dropdown list. Bin YES DROPDOWN Select the Transfer To Inventory bin from the dropdown list. Revision Number NO ALPHANUMERIC Enter in a revision number if needed. Revision Level NO DROPDOWN Select a revision level if needed. Lot Transfer Notes NO TEXT A free form text box used to capture any additional lot/transfer notes. 7A-64 Rev. 10/2006

65 Inventory Maintenance Lots Tab Inventory Transfer Detail Field Req. Field Type Description Save N/A PUSHBUTTON Activate pushbutton to complete the transfer using the information entered into the form. Cancel N/A PUSHBUTTON Activate pushbutton to cancel any changes made to the form. 7A-65 Rev. 10/2006

66 Inventory Lot/Transfer Notes Display The Inventory/Lot Transfer Notes form displayed below retrieves the transfer history of the selected inventory lot. The form is retrieved by performing a double-click on the highlighted inventory lot selected in section two of figure 7a.x. Figure 7a.39 Inventory Lot/Transfer Notes 7A-66 Rev. 10/2006

67 Journal Tab The Journal tab displays records of inventory transactions made on the inventory item tracking both the in and out movement of the item. Manual transactions may also be made using this tab. However, it is recommended that only adjust overages, adjust shortages and scrap transactions be made using this form. All other transactions should be made with their respective subsystem. Figure 7a.40 Inventory Maintenance Journal Tab Most inventory journal transactions are a byproduct of using other areas of the system. For example, Inventory Increases can come from the following subsystem transactions: Purchasing/Receiving inventory items on a purchases order Producing an item into inventory using shop orders and job cards Returns from a Returned Shipment Adjust Over entries (Using the Inventory Journal Tab or the Inventory Adjustments Generator) Inventory decreases come from the following subsystem transactions: Using inventory on a shop order via the Inventory Used area of the Job Card or by using the Forward Flush Material Issuance Screen Scrapping a part via the job card Manually scrapping a part or making an Adjust Short entry using the Inventory Maintenance Journal Tab. Making an Adjust Short entry using the Inventory Adjustments screen. 7A-67 Rev. 10/2006

68 Inventory Maintenance Journal Tab Field Req. Field Type Description Inventory Number N/A DISPLAY Displays the selected item s inventory number. Part Number N/A DISPLAY Displays the item s part number. Description N/A DISPLAY Displays the item description. Revision N/A DISPLAY Displays the part revision. List YES RADIOBUTTON Select a radio button to filter the results list displayed in section two of figure 7a.x. The following filters are available: All Select to displays all inventory transactions made including transactions made to both finished goods and work in process goods. Finished Goods Select to display all inventory transactions made to finished goods only. Work in Process Select to display all inventory transactions made to work in process goods only. Display YES RADIOBUTTON Both the Per Unit Cost: and Piece Quantity can be displayed into the form by selecting the appropriate radio button display. Per Unit Cost Select to retrieve the Per Unit Cost column into the screen. Piece Quantity Select to retrieve the Piece Quantity column into the screen. Add N/A PUSHBUTTON Activate pushbutton to retrieve the New Inventory Type Selection form. The form allows the user to select from either Inventory In or Inventory Out transactions. The following inventory transactions are available for selection and are further described in the chapter below. Inventory In Inventory Out Purchased Received Returned from Production Produced Sales Returned Adjust Over Purchased Returned Used in Production Scrapped Sale / Shipped Adjust Short Update N/A PUSHBUTTON Activate pushbutton to retrieve the Inventory Journal Maintenance form that allows the user to update the selected record. Additional information regarding this form is provided in the chapter below. 7A-68 Rev. 10/2006

69 Inventory Maintenance Journal Tab Field Req. Field Type Description Delete N/A PUSHBUTTON Activate pushbutton to delete the highlighted inventory journal record. After the delete validation is confirmed, the record is permanently removed from the system. Note: Some inventory transactions are not allowed to be deleted. In such cases, system will automatically prevent the user from deleting the record and will prompt the user to the correct screen and procedure for completing the desired task. Purge N/A PUSHBUTTON Activate to purge ALL inventory transactions. A purge confirmation must be initially made before the system proceeds with the utility. Note: This routine will purge ALL inventory transactions. If the quantity is greater than zero it will create an adjustment over entry to preserve the individual lots that compromise the current quantity on hand. Print N/A PUSHBUTTON Activate pushbutton to print an Inventory Journal Report. The Report Criteria form is initially retrieved allowing the user to configure the report according to the selected criteria available. Additional information regarding this report is provided in the chapter below. Totals N/A DISPLAY The Totals row displays the total of each column retrieved into the form. 7A-69 Rev. 10/2006

70 Creating an Inventory Transaction To create a new inventory transaction for an inventory item, activate the pushbutton located in the Inventory Maintenance Journal Tab. The New Inventory Transaction Type Selection form displayed below is automatically retrieved offering the user to select from a variety of Inventory In and Inventory Out transaction types. Inventory In Inventory Out Figure 7a.41 New Inventory Transaction Type Selection Once a transaction is selected, the Inventory Journal Maintenance form displayed below is retrieved and is used to record general information regarding the added transaction. The form is used for both Inventory In/Out transactions and is also retrieved for reviewing previously recorded transactions. It provides a general summary of the selected transaction. Section one displays information regarding the Inventory Item. Section two is transaction specific displaying key information such as transaction type, date, and associated quantities. It also provides a text box for transaction notes entry. Section three displays additional information regarding the selected transaction. For new transactions both section two and three are blank ready for entry. Section 1 Section 2 Section 3 Figure 7a.42 Inventory Journal Maintenance 7A-70 Rev. 10/2006

71 Creating Inventory In Transactions Adjust Over Increased Inventory Adjustments (Adjust Overages) are entered into the system using the Inventory Maintenance Journal tab. The Journal Tab is used to review an item s previous transactions while also providing the means to add both inventory in and inventory out transactions as needed. Refer to section Journal Tab for additional information regarding the functions available within the form. The increased adjustments are entered directly into the Inventory Journal Detail form. While the procedure depicted in the figure below is used to retrieve the Inventory Journal Detail form for adjust overages, it also displays the procedure flow for adding inventory transactions via the Journal Tab. Other Inventory In Transactions: Although the procedure displayed highlights the Adjust Over transaction, similar procedures are used for all Inventory In transactions. Figure 7a.43 Creating an Increased Inventory Adjustment Note: Only adjust overages, adjust shortages and scrap transactions should be made within the Journal Tab. All other transactions should be made with their respective subsystem. 7A-71 Rev. 10/2006

72 The Inventory Journal Detail form displayed in the figure below is retrieved after the ADD pushbutton is activated within the Inventory Journal Maintenance form (Step 3 of figure 7a.x). The form is used to add inventory into the system for all types of Inventory In transactions. The attached table defines the available fields for entry. Figure 7a.44 Inventory Journal Detail form Inventory Maintenance Journal Tab New Inventory Transaction Type Selection Inventory Journal Maintenance Inventory Journal Detail Field Req. Field Type Description Date Received YES DATE The current date is automatically entered into the field. The field maybe edited if needed. By double-clicking the field, the Visual EstiTrack TM interactive menu is retrieved for date selection. Reserve for Shop Order Number NO ALPHANUMERIC Enter in the Shop Order number when material is added specifically for a designated Shop Order. The attached search key is available for shop order number selection. Supplier NO ALPHANUMERIC Enter in the supplier code or use the attached search key for selection. Heat Number NO ALPHANUMERIC Enter in the material s heat number if needed. 7A-72 Rev. 10/2006

73 Inventory Maintenance Journal Tab New Inventory Transaction Type Selection Inventory Journal Maintenance Inventory Journal Detail Field Req. Field Type Description Add N/A PUSHBUTTON Activate pushbutton to retrieve the Heats Detail form in Add mode for heat entry. The attached field displays the Heat Number description of the newly added entry. Lot/Serial Number NO ALPHANUMERIC Enter in a lot/serial number of the added inventory if necessary. Produced by Shop Order Number NO ALPHANUMERIC Enter in the shop order number used to produce the added inventory. The search key is available for Shop Order number selection. Last Operation Number NO NUMBER Select the last operation used to make the added inventory from the available dropdown list. Inventory Location NO DROPDOWN Select the location of the added inventory from the dropdown list. Inventory Bin NO DROPDOWN Select the bin of the added inventory from the dropdown list. Pc to Stock UOM Calculator N/A PUSHBUTTON Activate pushbutton to retrieve the pieces Stock Unit of Measure calculator. Enter in the number of pieces added to inventory into the retrieved calculator. The system automatically calculates the stock unit of measure for the added inventory item and enters it into the Quantity field. Quantity NO NUMBER Enter in the quantity (in the items stock unit of measure) added to inventory. Cost per Unit N/A PUSHBUTTON Activate pushbutton to default the value to the inventory standard unit cost and standard component costs. Cost per Unit NO NUMBER Enter in the cost per unit of the added inventory. Revision Number NO ALPHANUMERIC Enter in the revision number if needed. Revision Level NO DROPDOWN Select the revision level from the dropdown list if needed. Lot/Transfer Notes NO TEXT A text field used to capture any lot or transfer notes. 7A-73 Rev. 10/2006

74 Inventory Maintenance Journal Tab New Inventory Transaction Type Selection Inventory Journal Maintenance Inventory Journal Detail Field Req. Field Type Description For Customer NO ALPHANUMERIC Enter in the customer code or use the attached search key for customer code selection if the added inventory is added specifically for a defined customer. Approved Customer NO ALPHANUMERIC Enter in the customer code if the added inventory is approved by the specified customer. The attached search key is available for customer code selection. Color Code NO ALPHANUMERIC Enter in the color code if needed. Country NO TEXT A text box field available for entry. Unit Cost Breakdown N/A PUSHBUTTON Activate pushbutton to retrieve the Unit Cost Breakdown form. The Unit Cost Breakdown form is used to determine the unit cost by summing up the entered labor, burden, material and other costs. Save N/A PUSHBUTTON Activate pushbutton to save any changes made to the form. Cancel N/A PUSHBUTTON Activate pushbutton to cancel any changes made to the form. 7A-74 Rev. 10/2006

75 Creating Inventory Out Transactions Adjust Short Decreased Inventory Adjustments (Adjust Shortages) are entered into the system using the Inventory Maintenance Journal tab. The Journal Tab is used to review an item s previous transactions while also providing the means to add both inventory in and inventory out transactions as needed. Refer to section Journal Tab for additional information regarding the functions available within the form. Inventory shortages are created by entering in a quantity less then the recorded quantity for a selected inventory lot. The following two figures (figure 7a.x and figure 7a.x) both display the process flow of creating an inventory shortage. Other Inventory Out Transactions: Although the procedure displayed below highlights the Adjust Short transaction, similar procedures are used for all Inventory Out transactions. Figure 7a.45 Inventory Shortage Procedure Part One 7A-75 Rev. 10/2006

76 Once the shortage transaction is added within the Inventory Journal Maintenance form (step three of figure 7a.x), the Inventory Lot/Heat Selection form displayed below is retrieved. The following steps are used to complete the shortage process: Highlight the lot requiring a shortage adjustment. Select or Double - Click the highlighted lot to retrieve the Enter Inventory Quantity pop-up. Enter a quantity less then the maximum quantity displayed. Activate the OK pushbutton of the Enter Inventory Quantity pop-up to complete the procedure. The adjust shortage transaction is recorded and can be viewed in the display window of the Inventory Maintenance Journal tab (figure 7a.x). Figure 7a.46 Inventory Shortage Procedure Part Two 7A-76 Rev. 10/2006

77 Net Changes Tab The Net Changes tab provides a quick method to view a summary of the change in unit quantity and sales for a selected fiscal year. The activity is summarized by month, quarter and year and allows the user to filter the data by a selected transaction type (e.g., used in production). Two steps are used in viewing the activity: Select the year from the fiscal scroll field Select the transaction type from the dropdown list. Figure 7a.47 Inventory Maintenance Net Changes Tab 7A-77 Rev. 10/2006

78 Routings Tab The Inventory Maintenance - Routing Tab displayed in the figure below, lists the operations of an associated Quote or Engineering Master of a Finished Good item. The associated Quote or Engineering Master defines the standard process by which the inventory item is made. The tab is divided into two sections. Section one displays the finished good item number and the associated Engineering Master or Quote number from which the operations were pulled. Alternate routings based on quantity breaks can also be defined by activating the ROUTINGS BASED ON EM/QUOTE NUMBER pushbutton. Section 1 Section 2 Figure 7a.48 Inventory Maintenance Routings Tab: Routings Display 7A-78 Rev. 10/2006

79 Inventory Maintenance Routings Tab Field Req. Field Type Description Track WIP lots in Finished Goods Inventory Routings Based on Engineering Master/Quote Number Routings Based on Engineering Master/Quote Number NO CHECKBOX Activate checkbox to track the work in process lots in the finished goods inventory. NO ALPHANUMERIC Displays the associated Engineering Master or Quote number. The listed operations are pulled from the defined number. The attached search key is selection. N/A PUSHBUTTON Activate pushbutton to define alternate routings based on quantity breaks. This function is further defined in the chapter below. Display YES RADIOBUTTON Routing Displays the Operational Routing for the selected Engineering Master or Quote Number. WIP Pipeline The WIP Pipeline feature is in the design phase and is currently unavailable. 7A-79 Rev. 10/2006

80 Alternate Routings by Quantity Break Alternate operation routings can be defined for quantity breaks using the Alternate Routings by Quantity Breaks form displayed below. These are normally created for the low volume verse high volume operations. Activate the ADD pushbutton in the form to initiate the Quantity and the Quote Number/Engineering Master fields. Once the entries are defined, a SAVE captures the information and adds the definition to the list. Figure 7a.49 Inventory Maintenance Routings Tab: Alternate Routings by Quantity Break 7A-80 Rev. 10/2006

81 Revisions Tab The Inventory Maintenance Revisions Tab displayed below, is used to formally define multiple revision of an inventory item. The form is divided into three sections. Section one is used to formally create new revisions for an inventory item. Section two is used to link revisions to Engineering Change Orders. Section three displays an item s lots and revisions. The lots displayed within section three can be filtered for a revision by highlighting the desired revision in section one. All lots can also be viewed by activating the Show ALL Lots checkbox located in section three of the form. Section 1 Section 2 Section 3 Figure 7a.50 Inventory Maintenance Revisions Tab 7A-81 Rev. 10/2006

82 Adding a New Revision The Inventory Revisions Maintenance form is used to create revisions for an inventory item. The form is retrieved by activating the ADD pushbutton in section one of figure 7a.x. Once the Revision Detail is completed, the user can choose to activate the defined revision as the Current revision for the inventory item. A SAVE secures the information and adds the new revision to the Inventory item. Once the Revisions are entered in, they may be UPDATED and or DELETED if needed. Section 1 Section 2 Figure 7a.51 Adding a New Inventory Revision 7A-82 Rev. 10/2006

83 Linking an ECO to an Inventory Revision Inventory Revisions can be linked to Engineering Change Orders using the Inventory Revision Level ECO Maintenance form displayed below. The form is accessed by activating the ADD pushbutton within section two of figure 7a.x. The following steps are used in creating the link. Highlight the revision within section one of figure 7a.x. Activate the ADD pushbutton within section two of figure 7a.x to retrieve the Inventory Revision Level ECO Maintenance form. Enter in the ECO Number and any Document information into the form. Activate the SAVE pushbutton to complete the link. Once Engineering Change Orders are tied to a defined Revision, the links can be UPDATED and or DELETED if needed. Section 1 Section 2 Figure 7a.52 Linking an Inventory Revision Level to an Engineering Change Order 7A-83 Rev. 10/2006

84 INVENTORY ADJUSTMENTS GENERATOR The Inventory Adjustment Generator displayed in the figure below is used to adjust inventory levels for physical inventory counts entered into the system. If needed, overages and shortages are added to the Inventory Journal if discrepancies arise during physical inventories. Physical Inventories are broken down into five key steps. 1. Auto populate the inventory entries to count into section two of figure 7a.x 2. Print the Inventory Adjustment Worksheet used to count the listed inventory items 3. Enter in the actual Inventory Counts 4. Print the Inventory Validation report 5. Generate Inventory Adjustments creating Overages and Shortages into the Inventory Journal The Inventory Adjustments Generator form is broken down into four main sections. Section one is used to filter the pre-populated inventory records needing count. The list can be filtered by batch number or inventory number. Section two displays the list of populated inventory entries to count. Section three is used to enter in the actual counts of the highlighted inventory record. Section four provides the tools used to create the list of inventory entries to count, print the associated reports, and generate the actual inventory adjustments to the inventory journal. Each section that corresponds to the steps outlined above is further detailed in the chapter below. Section 1 Section 2 Section 3 Section 4 Figure 7a.53 Inventory Adjustments Generator 7A-84 Rev. 10/2006

85 Menu Selection Left click on the menu heading labeled Materials Select Inventory Adjustments Generator from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-85 Rev. 10/2006

86 Step 1: Auto Populate Inventory Adjustment Entries The first step in processing physical inventories is to auto-populate the inventory items to count into section two of figure 7a.x. Item s can be entered for count by activating the AUTO POPULATE pushbutton located on the bottom of the Inventory Adjustments Generator screen. The Auto Populate Inventory Adjustments Entries form displayed below provides for the ability to add inventory items for count based on the criteria defined within the form. Inventory items are added for count in defined batch numbers. Therefore, users can filter the populated list of inventory items by the batch number when users are ready to enter in the physical counts into the system. Figure 7a.54 Step 1 Auto Populate Inventory Adjustment Entries 7A-86 Rev. 10/2006

87 Inventory Adjustments Generator Auto Populate Inventory Adjustment Entries Criteria Field Req. Field Type Description Items with Transaction Activity after Date NO CHECKBOX Activate checkbox to retrieve inventory locations/bins with activity after a specified date into the adjustments are registry. DATE Reference date used to retrieve inventory locations/bins with activity past the specified date. Due for Physical Count on or before Date NO CHECKBOX Activate checkbox to retrieve inventory locations/bins requiring a physical count. Note: The system calculates the necessity of a count based on the date of the last physical and the cycle count interval defined in the Tooling/Class tab of the Inventory Maintenance subsystem. DATE Enter in the reference date used to calculate the items needing physical count. Inventory Number NO ALPHANUMERIC Enter in the Inventory Number to retrieve a list of the item s locations/bins into the registry. Location NO DROPDOWN Select the location from the dropdown list to retrieve a list of bins located within the defined location into the registry. Bin NO DROPDOWN Select the bin from the dropdown list to retrieve a list of lots located within the defined bin into the registry. Inventory Type NO DROPDOWN Select the Inventory Type from the dropdown list to retrieve a list of inventory location/bins with inventory defined as the selected Inventory Type into the registry. Material Type NO DROPDOWN Select the Material Type from the dropdown list to retrieve a list of inventory location/bins with inventory defined as the selected Material Type into the registry. Product Code NO DROPDOWN Select the Product Code from the dropdown list to retrieve a list of inventory locations/bins with inventory defined as the selected code into the registry. Division NO DROPDOWN Select the Division from the dropdown list to retrieve a list of inventory locations/bins with inventory defined to the selected division into the registry. 7A-87 Rev. 10/2006

88 Inventory Adjustments Generator Auto Populate Inventory Adjustment Entries Criteria Field Req. Field Type Description Department NO DROPDOWN Select the Department from the dropdown list to retrieve a list of inventory locations/bins with inventory defined to the selected department into the registry. Shop Order Number NO ALPHANUMERIC Enter in a Shop Order Number to retrieve a list of inventory items and their coordinating locations/bins that are included in the defined Shop Order Number. A-B-C Type NO DROPDOWN Select the A-B-C indicator from the dropdown list. A list of all inventory lots defined with the selected type is retrieved into the registry. Note: The A-B-C Indicator is set for an item in the Tooling-Class tab of the Inventory Maintenance Subsystem. Supplier NO ALPHANUMERIC Enter in the Supplier Code to retrieve a list of all inventory items and their corresponding locations/bins supplied from the defined supplier into the registry. Add As Batch Number YES DROPDOWN The items entered into the registry are defined with the assigned batch number. The inventory locations/bins are entered into the registry with the assigned batch number. The group of entries can be further referenced by the defined batch number. This is useful when recording the physical counts and for generating the corresponding inventory adjustments. Include Zero Qty Items at Default Location/Bin NO CHECKBOX Activate checkbox to include all location/bins with zero quantity items on hand. Exclude Negative Quantity Lots NO CHECKBOX Activate checkbox to exclude all location/bins with negative quantities on hand. Split Lots by Lot Number Detail NO CHECKBOX Activate the checkbox to split the inventory locations/bins retrieved into the registry into locations/bins/lots entries. This is most often used when multiple lots are stored in one location/bin. Split Lots by Serial/Heat Number Detail NO CHECKBOX Activate the checkbox to split the inventory locations/bins retrieved into the registry into their Serial/Heat Number detail. This number is populated into the Lot/Serial No. column of the registry. 7A-88 Rev. 10/2006

89 Inventory Adjustments Generator Auto Populate Inventory Adjustment Entries Criteria Field Req. Field Type Description Split Lots by Operation Number Detail NO CHECKBOX Activate the checkbox to split the inventory locations/bins retrieved into the registry by the quantities corresponding operation number detail. The operation number is populated into the OP column of the registry. Split Lots by Revision Number/Level Detail NO CHECKBOX Activate the checkbox to split the inventory lots retrieved into an additional level of detail. The inventory locations/bins are divided into the inventory revision number/level detail. Location Type YES RADIOBUTTON Select the type of locations to analyze the Inventory Adjustments Criteria against. The locations can be filtered with the following options: ALL Locations Non-WIP Locations WIP Locations Auto populate N/A PUSHBUTTON Activate pushbutton to Auto-Populate the registry using the criteria defined above. Clear Criteria N/A PUSHBUTTON Activate the pushbutton to clear the criteria from the form. Cancel N/A PUSHBUTTON Activate pushbutton to cancel any changes made to the form. 7A-89 Rev. 10/2006

90 Step 2: Inventory Adjustment Register Worksheet The Inventory Adjustments Register Worksheet is used for the physical inventory process and lists the inventory items corresponding to the selected batch number. The worksheet displays the inventory item, description, inventory type and location. The current quantity register in the system can also be displayed although most users choose to exclude the current quantity in order to ensure employees provide an accurate count and are not misled by the expected count. To print the Inventory Adjustment Worksheet displayed in figure 7a.x: Activate the PRINT pushbutton located in the Inventory Adjustments Generator screen Activate the Register Worksheet radio button Select Exclude Current Quantity checkbox to exclude the quantity from the report. Select the batch of the pre-populated inventory items Figure 7a.55 Inventory Adjustments Report Criteria 7A-90 Rev. 10/2006

91 Figure 7a.56 7A-91 Rev. 10/2006

92 Step 3: Enter in Physical Counts into the Inventory Adjustment Generator Once the list of inventory item (step one) are generated and the physical counts are manually recorded on the Inventory Adjustments Worksheet Report (step two). The third step in the Inventory Adjustment process is to record the results into the Inventory Adjustments Generator displayed in the figure below. The inventory entries to record can be filtered by the selected Batch Number. Users can also choose to record counts for a specified Inventory number by entering the number into the Inventory Number field. To enter counts, Highlight the inventory number/location to retrieve the lots information into the Adjustment Detail display window. Enter in the actual count into the Actual Count field. The Quantity Calculator is available for converting pieces to unit of measure and can be accessed by activating the ACTUAL COUNT pushbutton. Scroll to the next entry by activating the Scroll Down arrow. Once the actual counts are entered, the system automatically calculates the adjustments and enters the variances into the Adjustment column displayed below. The variances are captured but not generated into the Inventory Journal until the fifth step of the process is complete. Select the Batch Number from the dropdown menu. Enter in the actual count for the highlighted inventory number. Once entered, the adjustment is automatically calculated. Figure 7a.57 Step 3 Entering in the Physical Counts Scroll down to retrieve the next inventory record. 7A-92 Rev. 10/2006

93 Inventory Adjustments Generator Field Req. Field Type Description Type YES RADIOBUTTON In process Register Journal In Process View By YES RADIOBUTTON The Quantities of the inventory locations/bins entered into the registry could be viewed by either their corresponding stock unit of measure or by their converted piece quantities. Stock Unit of Measure Piece Batch Number NO DROPDOWN Select the Batch number from the dropdown list. The registry entries will be filtered by the batch number selected. Inventory Number NO ALPHANUMERIC Enter in the Inventory Number to filter the registry entries by the entered Inventory Number. Order by NO DROPDOWN The registry entries are ordered by the selected order by criteria. Adjustment Detail Inventory Number NO ALPHANUMERIC Retrieves and displays the inventory number of the highlighted registry entry. If the Inventory number is altered, the quantity is automatically reset to zero. Shop Order No./ Stock NO ALPHANUMERIC Retrieves and displays any associated Shop Order No. If a Shop Order Number is entered into the blank field, the Quantity on Hand is automatically reset to zero. Location YES DROPDOWN Retrieves and displays the location. If the Location is altered, the Bin and the Quantity on Hand is automatically reset to Unknown and Zero. Bin YES DROPDOWN Retrieves and displays the bin. If the Bin is altered, the Quantity on Hand is automatically reset to Zero. 7A-93 Rev. 10/2006

94 Inventory Adjustments Generator Field Req. Field Type Description Lot/Serial Number NO DOPDOWN The Lot/Serial Number is retrieved into the registry if the Split Lots by Lot Number checkbox is activated in the AUTO-POPULATE CRITERIA screen. If altered, the Quantity on Hand is automatically reset to Zero. Heat / Warranty Number NO ALPHANUMERIC The Heat/Warranty Number is retrieved into the registry if the Split Lots by Serial/Heat Number checkbox is activated in the AUTO-POPULATE CRITERIA screen. If altered, the Quantity on Hand is automatically reset to Zero. Revision NO ALPHANUMERIC The Inventory Revision is retrieved into the registry if the Split Lots by Lot Number Detail checkbox is activated in the AUTO-POPULATE CRITERIA screen. Level NO DROPDOWN The Inventory Revision Level data is retrieved into the registry when the Split Lots by Lot Number Detail checkbox is activated in the AUTO-POPULATE CRITERIA form. If altered, the Quantity on Hand is automatically reset to Zero. Last Operation Number NO DROPDOWN The Last Operation Number can be selected from the dropdown menu if the Split Lots by Operation Number checkbox is activated in the AUTO-POPULATE CRITERIA screen. This is normally available for finished good or WIP items. If an operation other than the last is selected, the Quantity on Hand is automatically reset to Zero. Actual Count N/A PUSHBUTTON Activate the pushbutton to retrieve the pieces to unit of measure calculator. Actual Count NO NUMBER Enter in the actual count recorded for the selected inventory number/location. The Quantity on Hand is automatically entered and may be overridden if changes are noted. 7A-94 Rev. 10/2006

95 Inventory Adjustments Generator Field Req. Field Type Description Adjustment to Quantity N/A DISPLAY The difference between the Quantity on Hand and the Actual Count is automatically calculated displayed into the field. If an adjust shortage needs to be made to the inventory journal, the value is displayed in red. If an adjust overage needs to be made to the inventory journal, the quantity is displayed in black. Add N/A PUSHBUTTON Activate the pushbutton to enter in the actual count and record the adjustment to quantity to the registry. The adjustment quantity is displayed in the Adjustment column and the next record is retrieved for entry. Delete N/A PUSHBUTTON Activate the pushbutton to delete the highlighted record from the registry. --- Forward N/A PUSHBUTTON Activate the pushbutton to scroll up one record. Back N/A PUSHBUTTON Activate the pushbutton to scroll down one record. Display YES RADIOBUTTON Select the appropriate radio button to display the columns preferred. Operation/Lot/Serial No./UOM Rev/Heat/War.No Auto Populate N/A PUSHBUTTON Activate the pushbutton to auto populate the registry with inventory locations and bins. The Auto Populate Criteria screen is retrieved for entry. Refer to Step 1: Auto Populate Inventory Adjustment Entries for additional information regarding the functions of the form. Generate N/A PUSHBUTTON Activate the pushbutton to generate the inventory adjustments to the Inventory Journal. Adjustments can be entered for the selected batch number. Refer to Step 5: Generate Adjustment to Inventory for additional information. Clear Entries N/A PUSHBUTTON Activate the pushbutton to clear all entries from the registry. After the clear validation is confirmed, all entries in the registry are completely removed from the screen. 7A-95 Rev. 10/2006

96 Inventory Adjustments Generator Field Req. Field Type Description Hand Held N/A PUSHBUTTON Activate the pushbutton to export and import data to the hand held device. Print N/A PUSHBUTTON Activate the pushbutton to retrieve the Inventory Adjustment Report Criteria screen. The following two reports are available for selection. Register Worksheet lists the inventory items description, locations and bins for a selected batch number. Inventory Adjustment Count Validation Report - validates the inventory counts entered prior to actually generating the adjustments into the Inventory Journal. Exit N/A PUSHBUTTON Activate the pushbutton to exit the form back into the main Visual EstiTrack Menu. 7A-96 Rev. 10/2006

97 Step 4: Inventory Adjustment Count Validation Report The Inventory Adjustment Count Validation Report is used to validate the inventory counts entered prior to actually generating the adjustments into the Inventory Journal. The report is generated by activating the PRINT pushbutton and applying the Register radio button. The report can also be printed for a selected batch number. Figure 7a.58 Inventory Adjustments Report Criteria 7A-97 Rev. 10/2006

98 Figure 7a.59 Inventory Adjustments Register report is used to validate the adjustment quantities 7A-98 Rev. 10/2006

99 Step 5: Generate Adjustment to Inventory To generate the Physical Count Adjustments into an Item s Inventory Journal, activate the GENERATE pushbutton located at the bottom of the screen. Adjustments can be generated for all of the items populated to the generator or can be completed for a specified batch. The date of the adjustment and the reference entry Physical Count Adjustment are captured into the journal record along with the appropriate overage or shortage adjustment. Visual EstiTrack TM also provides the user with three options (checkmarks) when registering the adjustments into the journal: Inventory Adjustments Generator Generate Inventory Adjustments Field Req. Field Type Description User Standard Cost for Adjust Over Entries Include Zero Adjustments Entries in Journal Retain non-adjusted items in Registry NO CHECKBOX Activate checkbox to use the Inventory s standard cost for adjust overages. When left blank, the average cost is used. NO CHECKBOX Activate checkbox to record zero quantity adjustments in the journal to show that they were counted. NO CHECKBOX Activate checkbox if you do not wish to delete zero quantity adjustments from the Adjustments Registry. Figure 7a.60 Generating the Inventory Adjustments 7A-99 Rev. 10/2006

100 RAW MATERIAL ISSUANCE (RESERVE INVENTORY) The Raw Material Issuance screen displayed in the figure below is used to transfer and reserve inventory lots for a selected shop order. The material can be reserved and transferred to the first workcenter when workcenters are also defined as inventory locations within the Inventory Location table located in the Tables menu. This procedure is an alternative scheduling method where raw material could be issued to a shop order and can be transferred to the defined workcenter. The form is divided into three sections. Section one is used to enter in criteria for building a list of shop orders for selection. Once the shop order criteria are entered, the ANALYZE MATERIAL REQUIREMENTS pushbutton located in the bottom of the form is used to retrieve the list of raw materials. The shop order work center s required Raw Material is listed along with the total quantity of the material needed, quantity reserved and the quantity required. The list is compiled in section two of the form. Section three of the form provides the user the ability to reserve inventory for the highlighted shop order. A list of the raw material s available lots is retrieved for selection. The pushbutton TRANSFER BETWEEN LOCATIONS is used to transfer and reserve the lots for the appropriated shop order. Additional information regarding this process is provided in the chapter below. Section 1 Section 2 Section 3 Figure 7a.61 Raw Material Issuance 7A-100 Rev. 10/2006

101 Menu Selection Left click on the menu heading labeled Materials Select Raw Material Issuance from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. *Note: Allocations must be made within the Material Requirements Tab of the Shop Order Maintenance subsystem for the shop order to be recognized and listed in section two of the Raw Material Issuance form (Figure 7a.x). 7A-101 Rev. 10/2006

102 Raw Material Issuance Field Req. Field Type Description Date Range NO DATE Enter in the schedule date range to retrieve a list of raw material s and their associated shop order workcenters that are scheduled within the defined date range. Shop Order Number NO ALPHANUMERIC Enter in the Shop Order Number to retrieve a list of all raw materials and workcenters associated to the defined entry. Division NO DROPDOWN Select the division from the dropdown list to retrieve a list of raw material s and their associated shop order workcenters that are defined to the selected division. Scheduling Group NO DROPDOWN Select the Scheduling Group from the dropdown list to retrieve a list of raw material s and their associated shop order workcenters that are defined by the selected scheduling group. Workcenter NO DROPDOWN Select the workcenter from the dropdown list to retrieve a list of raw materials and their associated shop orders that include the defined workcenter. Department NO DROPDOWN Select the department from the dropdown list to retrieve a list of raw material s and their associated shop order workcenters that are included in the selected department. Scheduled Status NO DROPDOWN Select the schedule status from the dropdown list to retrieve a shop order workcenters that have the defined status. Item s with Material Requirements Only NO CHECKBOX Activate checkbox to retrieve a list of items with Material Requirements only. Analyze Material Requirements N/A PUSHBUTTON Activate pushbutton to analyze the criteria defined in section one of figure 7a.x. A list of raw material s and their associated shop order workcenters that meet the defined criteria are listed into section two of figure 7a.x. Workcenter Production Schedule Report N/A PUSHBUTTON Activate pushbutton to retrieve the Workcenter Production Schedule Report Criteria form used to print a Workcenter Production Schedule report based on the criteria defined. Transfer Between Locations N/A PUSHBUTTON Activate pushbutton to retrieve the Inventory Transfer Detail form. This form is used to transfer inventory lots and assign them to the selected shop order. 7A-102 Rev. 10/2006

103 Raw Material Issuance Field Req. Field Type Description Material Issue Tag N/A PUSHBUTTON Activate pushbutton to print the Raw Material Issue Tag. Multiple formats are available for print. Exit N/A PUSHBUTTON Activate pushbutton to exit the form and to return to the main Visual EstiTrack TM menu system. 7A-103 Rev. 10/2006

104 Issuing Raw Material to a Shop Order The Inventory Transfer Detail form displayed below is used to issue raw material to a specified shop order. It is retrieved by activating the TRANSFER BETWEEN LOCATION pushbutton within the Raw Material Issuance form (figure 7a.x). The following figure displays the procedure for issuing raw material to a shop order. Highlight the selected Shop Order Workcenter and highlight the available lot. Activate TRANSFER BETWEEN LOCATIONS pushbutton to retrieve the form below. The highlighted shop order number is automatically inserted. The required quantity is automatically inserted if the on hand is available. Note the reserved quantity is inserted into the list and is noted by the Shop Order number for the selected lot. Figure 7a.62 Inventory Transfer Detail The N column indicates if any Lot/Transfer notes are entered for the lot. 7A-104 Rev. 10/2006

105 Reconciling Raw Material Issuance The Reconcile Raw Material Issuance form displayed in the figure below is used to asses a shop order s raw material s usage. The form conveniently displays the quantity issued, quantity used and quantity remaining for a Shop Order s selected raw material. Perform a double click on the highlighted Shop Order Workcenter to retrieve the Reconcile Raw Material Issuance form. Figure 7a.63 Reconcile Raw Material Issuance 7A-105 Rev. 10/2006

106 ISSUE INVENTORY TO SHOP ORDER (FORWARD FLUSH) The Issue Inventory Maintenance Forward Flush form is used to issue and consume raw material for a specified shop order number. Using the forward flush method, raw material is not consumed when a job card is entered but is reduced when the user issues the raw material using the form displayed in the figure below. A coordinating configuration at the raw material s inventory level disables reduction in material when job cards are entered. Further information regarding the necessary configuration is provided further in section Forward Flush Configuration found in the chapter below. The form is broken down into three sections. Section one is used to enter the Shop Order Issuance Criteria used to select the shop order and release requiring fulfillment. Section two displays the issued raw material and quantity after the material is populated for the shop order. Section three provides the pushbuttons used to add populate the material issuance/consumption. Once added, the record maybe edited directly using the available pushbuttons. Section four displays a list of the raw material s available lots and quantities. Additional information regarding the functions of the form is provided further in the chapter below. Section 1 Section 2 Section 3 Section 4 Figure 7a.64 Issue Inventory Maintenance Forward Flush 7A-106 Rev. 10/2006

107 Menu Selection Left click on the menu heading labeled Materials Select Issue Inventory to Shop Order from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. Issue Inventory Maintenance Forward Flush Field Req. Field Type Description Issuance Criteria Shop Order Number YES ALPHANUMERIC Enter in the shop order number. The attached search key is available for shop order selection. Release Number YES DROPDOWN Select the appropriate shop order release from the dropdown list. Operation Number NO DROPDOWN Select the operation number requiring the issued raw material. Exclude Items auto reduced on job cards Issue Items from default inventory locations/bins NO CHECKMARK Activate to exclude any items that are auto-reduced on job cards. NO CHECKMARK Activate to issue items from default inventory locations/bins. Auto Populate from Allocations N/A PUSHBUTTON Activate the pushbutton to use the total material requirements defined in the allocations record. Issue Unused Allocations N/A PUSHBUTTON Activate the pushbutton to use the remaining material requirements (total needed total used). Auto Populate from Suborders N/A PUSHBUTTON Activate the pushbutton to auto populate the material from associated suborders. Add N/A PUSHBUTTON Activate pushbutton to manual issue inventory to the shop order. The Issue Inventory Usage Detail form is retrieved for entry. 7A-107 Rev. 10/2006

108 Issue Inventory Maintenance Forward Flush Field Req. Field Type Description Update N/A PUSHBUTTON Activate the pushbutton to update the highlighted issuance. The Issue Inventory Usage Detail form is retrieved for update. Delete N/A PUSHBUTTON Activate the pushbutton to delete the highlighted material issuance. The issuance is removed once the delete validation is confirmed. Exit N/A PUSHBUTTON Activate pushbutton to exit the form back to the main Visual EstiTrack TM menu system. Display YES RADIOBUTTON The display of the Inventory Lot Information display window can be adjusted to display the following two options: Shop Order/Location/Bin Lot/Serial Number/Heat Number/Supplier 7A-108 Rev. 10/2006

109 Forward Flush Configuration In order to consume raw materials using the Issue Inventory Maintenance Forward Flush method, the Do not auto reduce from job cards flag must be activated in the General tab of the Inventory Maintenance subsystem displayed in the figure below. As a result, quantities of raw materials will only be reduced when the issued via the Forward flush method. Figure 7a.65 Forward Flush Configuration Back Flush with Issue Inventory Maintenance form The Black Flush method can also be applied using the Issue Inventory Maintenance form. The Back flush method allows users to issue and consume material directly to a job without using job cards. After the shop orders are physically completed, the user records the exact amount of material issued and consumed using the form. 7A-109 Rev. 10/2006

110 INVENTORY MONTHLY RECONCILIATION Overview Most companies that maintain raw material work in process and finished goods inventories post net changes to these asset accounts on a monthly basis. The net changes posted to these accounts represent the change in value from one month to another. Not every business uses the same method for calculating inventory values and net changes. Some businesses simply perform physical inventory counts each month for each item within each of the three inventory classifications (i.e., Raw Material (RM), Work in Process (WIP) and Finished Goods(FG)) to determine month ending values of these inventories. They then compare the current month s values to the previous month s values to determine the net changes in these inventory accounts and use the general journal to post the net changes calculated. There are a wide variety of methods that businesses use to calculate actual inventory value. This includes using actual cost, standard cost or at times a percentage of the item s selling price. Actual cost is typically used on valuation of raw material (i.e., directly purchased items) because this cost can be easily determined by the purchased cost of the item. What is more complicated for businesses is the determination of WIP and FG values when manufactured added value and overhead expenses are added to the cost of the raw materials. Many companies want to calculate their work in process and finished goods cost at actual value but lack the discipline to accurately account for each added value cost and overhead components. Only through the very detailed tracking and reporting of each added value and overhead component can an accurate cost value be derived. The four major component costs tracked in Visual EstiTrack includes material, labor, burden/overhead and other (outside processes and miscellaneous costs). The shop order is the container for recording these component costs. It is only through the accurate capturing of these component costs that an accurate actual value is calculated and assigned to the WIP and FG items being produced. This means all labor hours for the shop order must be accurately reported; both employee labor and workcenter burden/overhead rates must be accurately defined and maintained. In addition, all raw material and manufactured components must be accurately consumed and all other costs entered and assigned to the appropriate shop order to get a complete and accurate actual cost. If a business fails to completely capture and enter any of the actual cost details (i.e., material, labor, burden/overhead and other costs) the calculated actual cost of an item will be inaccurate thus distorting the final WIP and FG inventory valuations. 7A-110 Rev. 10/2006

111 Visual EstiTrack provides a formalized method for tracking actual job costs through shop order time and materials reporting. Visual EstiTrack s Inventory Monthly Reconciliation screen provides the bookkeeper an interactive worksheet designed to summarize actual cost details in order to generate the monthly net changes accounting entry for RM, WIP and FG inventory values. In addition, the Inventory Monthly Reconciliation screen will calculate the movements of cost of goods sold (i.e., absorption of costs into WIP and recognizing the costs of goods shipped/sold). If a business lacks the discipline to accurately record shop order component costs then the Visual EstiTrack s Monthly Inventory Reconciliation screen cannot be used and an alternative manual accounting method for Raw Material, WIP and FG valuations must be used. Alternative manual inventory accounting methods include using a standard cost for finished good items, using a standard cost for work in process items based on a percentage of completion or using a percentage of the selling price of an item. In the end, there are a wide variety of methods used by businesses to valuate inventory and it is your responsibility to determine which method works best for your company. The remainder of this document describes Visual EstiTrack s formalized Inventory Monthly Reconciliation method of calculating actual inventory values and cost of goods sold and the different options available. Menu Selection Left click on the menu heading labeled Materials Select Inventory Monthly Reconciliation from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-111 Rev. 10/2006

112 Monthly Inventory/Cost of Goods (COG) Adjustments To accurately reflect profit and loss on the Income Statement it is important that you make appropriate monthly adjustments to move expenses back and forth between the Income Statement and the Balance Sheet. The goal is to have the expenses that are reflected in cost of goods occurring during the same fiscal period as the sales of the goods sold. While many accountants choose to calculate and enter these monthly adjustment entries manually, Visual EstiTrack s Inventory Reconciliation Screen provides the means to calculate and generate the necessary monthly adjustment entries directly via the general journal so that it can be posted to the general ledger. The following outlines the typical monthly procedure used to make inventory and cost of goods general ledger adjustments. These monthly adjustments are used to absorb expenses from the Income statement to the Balance sheet s WIP account for shop orders that are in process. Visual EstiTrack s shop orders track all WIP component costs (i.e., direct labor, burden/overhead, material and other subcontracting/miscellaneous costs) that occur during the life of the shop order. These summarized component costs are used to move costs from the Balance sheet inventory accounts (i.e., either FG if you are using FG inventory or WIP if you are not using FG Inventory) to the Income Statement s cost of goods sold accounts when FG items are shipped/sold or when a WIP to COGS shop order is closed to match these expenses with the shipment/sales of items actually sold during the month. In Visual EstiTrack these adjustment entries must be made as monthly general journal entries. Visual EstiTrack supports a wide variety of inventory accounting methods. It is important that you determine your type of business operation to determine which inventory accounting method applies to you. For example, some businesses don t track Raw Material or Finished Good inventory. They simply buy directly to WIP (i.e., shop orders) and then ship directly from WIP without reporting a finished good item. In this case, costs are reported directly to WIP via the shop order and then moved directly to cost of goods sold from WIP when the item is shipped/sold or when the shop order is closed. In other cases, businesses formally track Raw Material, WIP and FG inventory and all the movements between each inventory account. While other businesses use a combination of both of these methods. Let s take a closer look at Visual EstiTrack s Inventory Reconciliation criteria screen and options. 7A-112 Rev. 10/2006

113 Inventory Reconciliation Criteria Fields and Options The Reconciliation Criteria tab displayed below allows the user to define the accounting fiscal period, business specific options to customize the cost accounting methods and specific general account numbers used to generate the general journal monthly entries. What follows is a description of each field and option. Figure 7a.x Inventory Monthly Reconciliation Reconciliation Criteria 7A-113 Rev. 10/2006

114 Inventory Monthly Reconciliation: Reconciliation Criteria Field Req. Field Type Description Reconciliation Criteria Accounting Month YES DROPDOWN Provides selection of the Account Month to reconcile inventory and generate the appropriate General Journal entry Year YES SCROLL Provides selection of the Account Year to reconcile inventory and generate the appropriate General Journal entry Accounting Division/Department NO DROPDOWN Provides selection of the specific Accounting Division/Department to reconcile inventory and generate the appropriate Division/Department General Journal entry. These fields are available upon checking the Adjust Inventory by Division / Department and/or the Adjust Cost of Goods Sold by Division / Department checkboxes. Selecting a Division and Department will calculate using transactions assigned to the selected Division/Department combination. Note: Selecting a Division only will calculate using transactions assigned to the selected Division and all Departments of the Division. Note: Selecting a Department only will calculate using transactions assigned to the selected Department and all Divisions the Department belongs to. Note: Leaving both fields blank (right-click on the field to clear) will calculate all transactions of the company. This provides the ability to generate Division/Department entries when the accounts for each Division/Department have different account numbers. The Accounting Division and Departments are entered in Visual Books via the Tables submenu. 7A-114 Rev. 10/2006

115 Inventory Monthly Reconciliation: Reconciliation Criteria Field Req. Field Type Description Adjust Inventory Accounts by Division/Department NO CHECKBOX Activate checkbox if you want to reconcile each Division/Department separately. This allows selection of an account Division/Department to post the Inventory accounts to. The Raw Material and Finished Goods item s Inventory Division/Department combination is defined by the Product code assigned to each Inventory item. The Work in Process item s Inventory Division/Department combination is defined by the Product code assigned to each Shop Order. Each product code is in turn assigned to an accounting Division/Department. Adjust Cost of Goods Sold by Division/Department NO CHECKBOX Activate checkbox if you want to make reconcile each Division/Department separately. This allows selection of an account Division/Department to post the Cost of Goods Sold to. The Raw Material and Finished Goods item s Cost of Goods Sold Division/Department combination is defined by the Product code assigned to each Inventory item. The Work in Process item s Cost of Goods Sold Division/Department combination is defined by the Product code assigned to each Shop Order. Each product code is in turn assigned to an accounting Division/Department. Post Raw Material Inventory by Distribution Codes NO CHECKBOX Activate checkbox if you separate the Raw Material account into multiple sub-accounts. This option posts to Raw Material based on the item s Distribution code. Each Distribution code can be assigned a Raw Material account number. Note: If the Distributions code s Raw Material account number is blank that item s transactions are posted to the default Raw Material account number entered on the Reconciliation Criteria screen. Multiple Distribution codes can have the same Raw Material account number. 7A-115 Rev. 10/2006

116 Inventory Monthly Reconciliation: Reconciliation Criteria Field Req. Field Type Description Post Finished Goods Inventory by Product Codes NO CHECKBOX Activate checkbox if you separate the Finished Goods account into multiple sub-accounts. This option posts to Finished Goods based on the item s Product code. Each Product code can be assigned a Finished Good account number. Note: If the Product code s Finished Goods account number is blank that item s transactions are posted to the default Finished Goods account number entered on the Reconciliation Criteria screen. Multiple Product codes can have the same Finished Goods account number. Post Cost of Goods Sold by Product Codes NO CHECKBOX Activate checkbox if you separate the Cost of Goods Sold component accounts into multiple sub-accounts. This option posts to the Cost of Goods Sold components (Direct Materials, Direct Labor, Burden/Overhead and Other) based on the item s Product code. Each Product code can be assigned Cost of Goods Sold account numbers for Materials, Labor, Burden and Other. Note: If the Product code s Cost of Goods Sold component account number(s) is blank that item s transactions are posted to the default Cost of Goods Sold component account number(s) entered on the Reconciliation Criteria screen. Multiple Product codes can have the same Cost of Goods Sold account numbers. Exclude Inventory Purchases portion of Entry Exclude Direct Work in Process portion of Entry NO CHECKBOX Activate checkbox if you are directly buying to the inventory accounts on the vendor invoice. This option excludes the Materials Purchase Receipts portion of the General Journal entry to avoid double posting the material receipts of the Distribution code s Purchases (Uninvoiced) account number is the inventory account instead of using a formal purchases account or uninvoiced material receipts account. NO CHECKBOX Activate checkbox if you are posting cost of goods sold via the customer invoice and sales journal (option in the company table in Visual Books). This option excludes the Cost of Goods Sold components portion of the General Journal entry to avoid double posting the sales/shipped component costs of the Product code s Cost of Goods Sold component costs (Material, Labor, Burden and Other) that are posted via the Customer Invoice. 7A-116 Rev. 10/2006

117 Inventory Monthly Reconciliation: Reconciliation Criteria Field Req. Field Type Description Default General Ledger Account Numbers Post Rework to Rework Cost of Goods Sold Accounts Provides one time entry of standard account numbers used to generate the General Journal Entries. Each Division/Department combination will have its own default account numbers. You can use the same account numbers in multiple default entries to combine the account types into the same general ledger account number. NO CHECKBOX Activate checkbox if you are posting rework shop orders to separate rework cost of goods sold accounts. If a shop order is a rework order, indicated by checking the Rework checkbox on the shop order, the generated General Journal entry will use the Rework Cost of Goods Sold components account numbers entered on the Reconciliation Criteria screen under this checkbox instead of the standard Cost of Goods Sold component account numbers. Reconcile N/A PUSHBUTTON Activate pushbutton to initiate the inventory reconciliation procedure. Once the procedure is complete, the Inventory Reconciliation tab is opened. Clear Division/Department N/A PUSHBUTTON Activate pushbutton to clear the Division and Department fields. Exit N/A PUSHBUTTON Activate pushbutton to exit the form. 7A-117 Rev. 10/2006

118 Absorbing Costs to Work In Process (WIP) for Open/Active Shop Orders Direct Buy Materials (Items bought directly to the Shop Order) You should tie the purchase order line item to the Shop Order and Cost of Goods directly by entering the appropriate shop order number and COGS account number into the line item of the Purchase Order. Be sure to select a non-inventory Distribution Code. Use the receiving screen to receive in the lines items of a Purchase Order. Vendor invoices are directly tied to the received PO Line Items through the Get Receipts button found on the Vendor Invoice maintenance screen. This marks the receipt records as being invoiced and defaults the received quantity and appropriate COGS account number into the vendor invoice to prepare it for posting to the general ledger. The WIP account net change is adjusted through Inventory Reconciliation. Inventoried Raw Material You should NOT tie the purchase order line items to the shop order but directly tie the line item to the Un-invoiced Receipts GL account. Be sure to select an inventory type Distribution Code. Use the receiving screen to receive in the line items of the purchase order. Vendor invoices are directly tied to the received PO Line Items through the Get Receipts button found on the Vendor Invoice maintenance screen. This marks the receipt records as being invoiced and defaults the Un-invoiced Receipts account number into the vendor invoice to prepare it for posting to the general ledger. The Raw Materials account net change is adjusted through Inventory Reconciliation. 7A-118 Rev. 10/2006

119 Moving Costs from Raw Material or Finished Goods to WIP Movements of costs from RAW MATERIAL or FINISHED GOODS to WIP are based on shop order job card inventory usage activity during the month. Use the Inventory Journal Report selecting the Used in Production transaction type and either the RAW MATERIAL or FINISHED GOODS inventory type to calculate the amount of material that needs to be credited (decreased) from the RAW MATERIAL or FINISHED GOODS GL accounts and debited (increased) to the WIP inventory account. Make a general journal entry to Credit (reduce) either the RAW material GL account or the Finished Good account and Debit (Increase) the WIP Inventory Account. Labor (Direct Labor on Shop Orders) Direct Labor payroll is typically directly expensed out on Income Statement through the posting of the Payroll journal but then offset (removed as an expense) back to the WIP inventory account on the Balance sheet based on all the Job Card direct labor activity occurring during the month. Most clients achieve this movement by setting up a LABOR ABSORPTION account. The absorption account is used to move direct labor expenses off the income statement to the balance sheet s WIP account. Calculate the total WIP Direct Labor by running the Production Costs report for job cards that were executed during selected month. The total direct labor number will then be used to reduce total labor expenses by crediting (reducing) the labor absorption account and debiting the WIP account. The net effect of this is to reduce the payroll expense that occurred during the month by the direct labor that was performed on active shop orders thus moving those direct labor expenses from the income statement to WIP on the balance sheet. 7A-119 Rev. 10/2006

120 Burden Burden (Overhead such as office salaries, rent) is typically directly expensed out on Income Statement but then offset (removed as an expense) back to WIP inventory account on the Balance sheet for the all Job Card activity occurring during the month. Most clients set up a BURDEN ABSORPTION account to move burden expense off the income statement to the balance sheet s WIP account. Calculate the total WIP Burden expense by running the Production Costs report for job cards that were executed during selected month. The total Burden number will then be used to reduce total burden expenses by crediting (reducing) the Burden absorption account and debiting the WIP account. The net effect of this is to reduce the burden expense that occurred during the month by the burden that was carried on active shop orders thus moving those Burden expenses from the income statement to WIP on the balance sheet. Outside (Subcontracted) You should tie the purchase order line item to the Shop Order and Cost of Goods GL account directly by entering the appropriate shop order number and COGS account number into the line item of the Purchase Order. Use the receiving screen to receive in the lines items of a Purchase Order. Vendor invoices are directly tied to the received PO Line Items through the Get Receipts button found on the Vendor Invoice maintenance screen. This marks the receipt records as being invoiced and defaults the appropriate COGS account number into the vendor invoice to prepare it for posting to the general ledger. The WIP account net change is adjusted through Inventory Reconciliation. 7A-120 Rev. 10/2006

121 Moving from WIP to COG (Expenses) Many clients do not use finished goods inventory but rather ship directly out of WIP. The following procedure outlines the required procedure for moving costs out of WIP on the balance sheet back to the cost of goods sold on the Income statement. Make sure that ALL costs are against the shop order before closing the shop order. Please Note: If you need to split parts out of an existing shop order to get them shipped out faster, you should use the Split Shop Order screen to separate the parts and the costs that you are finishing out into its own shop order. In this way you can complete the processing of the split shop order and close it so you can ship the parts so the cost of the goods sold will be updated appropriately. The original shop order would remain in WIP until it is completed. When the Shop Order is closed and the items are shipped you should then move the summarize component costs out of the WIP account and back to the cost of goods accounts. Use the Cost of Sales analysis report or one of the Work in Process Reports to determine the component costs (i.e., labor, burden, material and other) of the shop orders that closed during the month. Once the total costs and component costs have been determined use these numbers to: Credit (decrease) WIP for the total costs of the shop orders closed during the month and debit (increase) the appropriate COG expense accounts on the Income Statement (i.e., Debit Material, Labor and Burden). This adjustment aligns the cost of goods with the actual sales of the goods. Moving from WIP to Finished Goods If you make to stock and then sell from your finished good inventory then you will need to make a monthly adjustment to move costs from your WIP asset account to your FINISHED GOODS asset account. The following procedure outlines the required procedure for moving costs out of WIP on the balance sheet to Finished Goods on the Balance sheet. Make sure that ALL costs are against the shop order before closing the shop order. Please Note: If you need to split parts out of an existing shop order to get them shipped out faster, you should use the Split Shop Order screen to separate the parts and the costs that you are finishing out into its own shop order. In this way you can complete the processing of the split shop order and close it so you can ship the parts so the cost of the goods sold will be updated appropriately. The original shop order would remain in WIP until it is completed. 7A-121 Rev. 10/2006

122 When the Shop Order is closed you should then move the summarize component costs out of the WIP account to the Finished Goods account. Use the Cost of Sales analysis report or one of the Work in Process Reports to determine the component costs (i.e., labor, burden, material and other) of the shop orders that closed during the month. Once the total costs and component costs have been determined use these numbers to: Credit (decrease) WIP for the total costs of the shop orders closed during the month and debit (increase) FINISHED GOODS inventory for the same amount. The net effect of this transaction is that all costs stay on Balance sheet they simply move from one asset account to another (i.e., from the WIP inventory account to the Finished Good inventory account) Moving from Finished Goods to COG (Expenses) If you sell directly out of Finished Goods inventory it is important that you calculate the costs of the Finished goods sold during the month so that you can credit (reduce) the finished goods inventory account and increase (debit) the appropriate cost of goods accounts. When finished good items are sold Use the show component costs on the Inventory Journal report filtering by the Sale/Shipped transaction type to determine the total and component costs of the goods sold during the month. Use these summarized costs to credit (reduce) Finished Good inventory on Balance Sheet and debit (increase) COG expenses on Income Statement by debiting the values of Labor, Burden and Material. The net effect of this adjustment is to reduce finished goods and increase the cost of goods expenses so the appropriate expense are in same fiscal period as the actual Sales of those items. Temporary Liability Account It is quite common that goods are received into inventory (i.e., Raw Material and WIP inventory) prior to the actual receipt of the Vendor Invoice. Many clients want to reflect that future liability on the general ledger even though the liability is not yet reflected in Accounts Payable. You can achieve this adjustment by running the Receiving Log report for all un-invoiced receipts. The number that is shown can be used to update a temporary liability account. 7A-122 Rev. 10/2006

123 Inventory Reconciliation Processing Cost Using Materials Out of Inventory Be sure to define your default G/L chart of accounts numbers. Keep in mind that you MUST define a Standard Cost in Finished Good Inventory. The system uses Standard Cost when calculating the finished goods into inventory. Upon closing the Shop Order, the system will recalculate using the Actual Cost and show the adjustment in another month, if applicable. Beginning with 0 balances. 7A-123 Rev. 10/2006

124 1. I ve created job cards to complete the first operation. Costs moved into WIP, out of raw materials and burden, labor were absorbed. Let s now take a look at the G/L Entries. 7A-124 Rev. 10/2006

125 2. Next I created a purchase order for heat treating and received it in. Notice the change in WIP and Other Direct Costs Absorption. 3. Next I finished the job making and completing finished goods into inventory. Notice the costs being moved from WIP into Finished Goods at the Standard Cost. 7A-125 Rev. 10/2006

126 This is what the G/L Entries would look like if we posted now. 4. I will now create a shipment and close the shop order. This recalculates the FIN costs from Standard to Actual and then moves expenses to COG. 7A-126 Rev. 10/2006

127 Let s look at the G/L Entries. This is the break down: Debit Credit Sales COSTS OF GOODS Cost of Goods Sold Inventory WIP Inventory Raw Materials Direct Labor Absorption Burden/OH Absorption Other Direct Costs Absorption TOTALS: Profit (Loss) A-127 Rev. 10/2006

128 Inventory Reconciliation Processing Costs without using Materials out of Inventory, but Buying Directly to the Job Beginning with Zero Balances: 1. I created a purchase order for materials to go directly to a specific job and received it. 7A-128 Rev. 10/2006

129 If you look at the G/L Entries you will see WIP Debited and Direct Costs Absorption Credited. Upon receiving the Vendor Invoice you will be Debiting Purchases in Cost of Goods and Crediting Accounts Payable. Debit Credit WIP (Asset) Direct Costs Absorption (COG) Direct Purchases (COG) AP (Liability) I next created job cards to complete produce these parts. Costs moved through WIP and then to Finished Goods. 7A-129 Rev. 10/2006

130 Let s now take a look at the G/L Entries. Since I did not post transactions until the end of the month the first line item will not occur. Also note that the Finished Goods is based on Standard Cost. Debit Credit WIP (Asset) Direct Costs Absorption (COG) Direct Purchases (COG) AP (Liability) FIN (Asset) WIP (Asset) Absorptions (COGS) A-130 Rev. 10/2006

131 3. I will now create a shipment and close the shop order. This recalculates the FIN costs from Standard to Actual and then moves expenses to COG. Let s look at the G/L Entries. 7A-131 Rev. 10/2006

132 Since I did not post transactions until the end of the month the only entry remaining open will be Purchases and Payroll. Debit Credit WIP (Asset) Direct Costs Absorption (COG) Direct Purchases (COG) AP (Liability) FIN (Asset) WIP (Asset) Absorptions (COGS) COGS Absorption COGS Absorption This is how it would look in the GL: COSTS OF GOODS Debit Credit Sales Materials Purchased Actual Payroll Labor Absorption Burden/OH Absorption Direct Costs Absorption (materials) TOTALS Profit/Loss A-132 Rev. 10/2006

133 INTER-INVENTORY ITEM TRANSFER The Inter-Inventory Item Transfer form displayed below is used to move a quantity of material from one location to another while maintaining lot integrity. Information regarding any associated certifications can also be captured and transferred along with the quantity. The form is divided into two sections. Section one is used to retrieve the Inventory Item/Lot that will be transferred. Once the Inventory Number is entered, the user can enter in the quantity to move from the selected lot. Section two is used to create the new lot, select the new locations and enter in the cost per unit if it varies from the original cost. Once the transfer is complete, a bar-coded inventory label can be printed in order to identify the materials moved. Section 1 Section 2 Figure 7a.x Inter-Inventory Item Transfer Menu Selection Left click on the menu heading labeled Materials Select Inter-Inventory Item Transfer from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-133 Rev. 10/2006

134 Inter-Inventory Item Transfer Field Req. Field Type Description Transfer FROM Inventory Item (Adjust Short) Inventory Number YES ALPHANUMERIC Enter in the Inventory Number to be transferred. The attached search key is available for number selection. Description N/A DISPLAY Displays the part description of the inventory item selected. Lot Number YES DROPDOWN Select the lot number to be transferred from the dropdown list. Part Number N/A DISPLAY Displays the part number of the inventory item selected. Revision N/A DISPLAY Displays the part revision of the inventory item selected. Quantity Short NO NUMBER Enter in the quantity to move. This quantity will be reduced from the selected Inventory Item/Lot. Quantity Available to Transfer N/A DISPLAY Displays the calculated quantity available to transfer from the selected Inventory Item/Lot. Transfer TO Inventory Item Inventory Number NO ALPHANUMERIC Enter in the Inventory Number the quantity will be transferred as. The attached search key is available for Inventory Number selection. If a simple inventory transfer is performed, the inventory number is the same as the Inventory Number defined within the Transfer From section above. Description N/A DISPLAY Displays the description of the Inventory Number selected. Lot Number YES DROPDOWN A new lot number for the transferred quantity is automatically inserted. The original lot number is captured into the Lot/Transfer notes field for lot integrity. Part Number N/A DISPLAY Displays the Part Number of the Transfer To Inventory Number selected. Revision N/A DISPLAY Displays the Part Revision of the Transfer To Inventory Number selected. 7A-134 Rev. 10/2006

135 Inter-Inventory Item Transfer Field Req. Field Type Description Serial/Heat Number NO ALPHANUMERIC Enter in the Serial/Heat Number of the quantity transferred. The attached search key is used for selection. Add N/A PUSHBUTTON Activate pushbutton to add a serial/heat number to the transferred quantity. Inventory Location YES DROPDOWN Select the Inventory Location for the quantity transferred from the dropdown list. Inventory Bin YES DROPDOWN Select the Inventory bin for the quantity transferred from the dropdown list. Quantity Over NO NUMBER The system automatically inserts the quantity transferred into the field. The new lot will be adjusted over by this quantity. Cost per Unit NO NUMBER Enter in the cost per unit transferred into the field. The cost per unit of the selected lot shorted is automatically inserted into the field. Extended Cost N/A DISPLAY Calculated extended cost of the quantity transferred. Lot/Transfer Notes NO TEXT A free form text box used to capture any additional transfer notes. The originating transfer lot is automatically captured into the field. Transfer N/A PUSHBUTTON Activate pushbutton to complete the transfer procedure. Cancel N/A PUSHBUTTON Activate pushbutton to cancel any changes made to the form. Print Inventory Labels N/A PUSHBUTTON Activate pushbutton to print a bar-coded inventory label used to identify the materials moved. Exit N/A PUSHBUTTON Activate pushbutton to exit the form. 7A-135 Rev. 10/2006

136 ZERO INVENTORY QUANTITIES The Zero Inventory Quantities tool displayed in the figure below is used to eliminate all quantities associated with the defined entry. The function zeros out all current lot quantities for the selected inventory item. Any associated allocations or on order quantities remain open for the inventory item. The function provides the ability to zero out quantities for either one single selected inventory item, all items associated with a selected inventory type or all items managed within the Inventory Maintenance subsystem by selecting the appropriate Zero Inventory Based On radio button displayed in the figure below. An example of the routine and the associated affects on the quantity fields are provided further in the chapter below. Figure 7a.x Zero Inventory Items Menu Selection Left click on the menu heading labeled Materials Select Zero Inventory Items from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-136 Rev. 10/2006

137 Zero Out Examples The following two figures display the quantity values prior to and post applying the Zero Out routine for an inventory item. Note the quantities Pieces On Hand, Available, and Available to Ship all have the quantity of 150 pieces and the Allocated and On-Order fields have values of 150 pieces prior to the run (Figure 7a.x). After the Zero Out routine was applied, the Pieces On Hand, Available, and Available to Ship fields were reduced to Zero while the Allocated and On-Order remained the same. Prior to the Zero Out Routine Figure 7a.x Quantities for an Inventory Item prior to applying the Zero Out routine Post Zero Out Routine Figure 7a.x Quantities for an Inventory Item after the Zero Out routine was applied 7A-137 Rev. 10/2006

138 RECALCULATE QUANTITY AVAILABLE The Recalculate Quantity Available utility displayed in the figure below is used to recalculate the on-order, allocated and available quantities for the selected inventory items. Inventory quantities can be recalculated for a defined item or a selected inventory type. This utility is most often used to recalculate the quantities after data is imported from third party software. Please contact Henning Software for prior to using this utility. Figure 7a.x Recalculate Quantity Available Menu Selection Left click on the menu heading labeled Materials Select Recalculate Quantity Available from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-138 Rev. 10/2006

139 ECONOMIC ORDER QUANTITY (EOQ) CALCULATOR The Economic Order Quantity calculator displayed below is a statistical tool used to calculate optimum run quantities and reorder levels for inventory items. The tool calculates a quantity that balances the cost of setup and run time versus the costs of holding inventory. The tool utilizes standard production planning formulas and statistics. The Economic Order Quantity (EOQ) calculator can be applied to a single defined inventory item, defined inventory types or can even be applied to all inventory items by selecting the desired radio button displayed below. Once the fixed order processing cost and the percent Inventory Carrying costs are defined, activate the CALCULATE AND SAVE EOQS pushbutton to complete and save the calculation. Figure 7a.x Economic Order Quantity Calculator Menu Selection Left click on the menu heading labeled Materials Select Calculate Economic Order Quantity from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-139 Rev. 10/2006

140 Economic Order Quantity (EOQ) Calculator Field Req. Field Type Description Calculate Reorder Levels Single Item Type YES RADIOBUTTON Activate the radio button to select the inventory to EOQ calculation. Economic Order Quantity could be calculated for a single item, range of items with a defined inventory type or all items managed within the inventory subsystem. All Items Inventory Number NO ALPHANUMERIC Enter in the inventory number to calculate the EOQ for the defined item only. Inventory Type NO DRODPOWN Enter in the inventory type to calculate the EOQ for items defined as the selected inventory type. Order Processing Cost YES NUMBER Enter in the fixed Order Processing Cost. Carrying Cost YES PERCENTAGE Enter in the percent carrying cost. The Carrying Cost is the cost of holding inventory items on annual bases. Included costs can be taxes, cost of warehouse space and cost of obsolescence. Calculate and Save EOQs N/A PUSHBUTTON Activate pushbutton to calculate and save economic order quantities made according to the defined costs defined. Clear N/A PUSHBUTTON Activate pushbutton to clear the form for reentry. Exit N/A PUSHBUTTON Activate pushbutton to exit the screen. 7A-140 Rev. 10/2006

141 INVENTORY MONITORING The Inventory Monitoring subsystem displayed in the figure below provides a Display Only summary of a managed inventory item. The information provided is similar to the information found within the Inventory Maintenance subsystem with the exception of the Display Only feature that securely provides the information to the user while protecting the data from any changes or adjustments. Once the Inventory Monitoring subsystem is selected, the Criteria form is initially retrieved allowing the user to enter criteria for retrieving an inventory list. The Inventory Detail form displayed below is retrieved for the selected inventory item. Figure 7a.x Inventory Monitoring 7A-141 Rev. 10/2006

142 Menu Selection Left click on the menu heading labeled Materials Select Inventory Monitoring from the drop down list. Shortcut: Quickly enter the Inventory Monitor by right- clicking on the displayed Inventory Maintenance/Monitoring icon found in the toolbar. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-142 Rev. 10/2006

143 Inventory Monitoring: Search Criteria When the Inventory Monitoring subsystem is initiated, the Inventory Search Criteria screen displayed below is initially retrieved. This form allows the user to define inventory search criteria for Inventory item selection. Once the criteria is entered into Section one of the figure below, a list of inventory items that meet the defined criteria are retrieved into Section two. Section three provides options for searching, clearing the criteria and exiting the form. To retrieve inventory monitoring detail for a selected inventory item, highlight the item in section two and activate the INVENTORY DETAIL pushbutton or perform a double-click in order to retrieve the Inventory Detail screen displayed in figure 7a.x. Section 1 Section 2 Section 3 Figure 7a.x Inventory Monitoring: Search Criteria 7A-143 Rev. 10/2006

144 Inventory Detail The Inventory Detail form below is retrieved for monitoring a selected inventory item. The six tabs displayed below together comprise the Inventory Monitoring subsystem. Each of the tabs displayed below are read only pulling information from the Inventory Maintenance subsystem. Inventory Monitoring General Tab The Inventory Maintenance s General Tab displayed in the figure below is used to outline key characteristics of the inventory item such as supplier information, inventory quantities and Raw Material specifications. The information displayed is read only and is pulled directly from the Inventory Maintenance General Tab. Figure 7a.x Inventory Monitor Inventory Detail 7A-144 Rev. 10/2006

145 Inventory Monitoring Allocations Tab The Allocations tab displayed in the figure below displays an aggregate of all demands placed onto an inventory item. It is used to view an inventory item s requirements made from demands created by Sales and Shop Orders. A brief summary of the order status is also displayed showing the number of pieces ordered, the quantity of good items produced and the balance to produce or ship. Figure 7a.x Inventory Monitoring Allocations Tab 7A-145 Rev. 10/2006

146 Inventory Monitoring Inventory Locations Tab The Inventory Locations Tab displayed in the figure below conveniently provides an overall view of an item s inventory specifications, locations and on-hand quantities in one summarized form. The read only information is pulled from the Inventory Maintenance subsystem and is displayed in three sections of the form. Section one summarizes key inventory specifications such as cycle count definition, packaging requirements and item number and description. Section two displays the item s on-hand locations. Each location holding inventory is retrieved displaying the location, bin and quantity. The last column Pieces automatically converts the quantity into pieces. This is often used for converting pounds of raw material into pieces. Section three of the form recaps key item quantities such as On-Hand, Allocated and Available to sell. All quantities are summed and displayed in the available quantity formula. Section 1 Section 2 Section 3 Figure 7a.x Inventory Monitoring Inventory Locations Tab 7A-146 Rev. 10/2006

147 Inventory Monitoring Lots Tab The Lots Tab displayed in the figure below is a summary of an inventory item s lots. Each lot is retrieved into the results list (section two) displaying the location, bin and quantity and costs. The display of the form can be configured using the Display radio buttons found in section three of the form. Users can filter the results by selecting the type of lots to retrieve from within the List radio display. Section 1 Section 2 Section 3 Figure 7a.x Inventory Monitoring Lots tab 7A-147 Rev. 10/2006

148 Inventory Monitoring Journal Tab The Journal tab displays records of inventory transactions made on the inventory item tracking both the in and out movement of the item. The information displayed is pulled from the Inventory Maintenance Journal tab. The Inventory Journal Details report can also be printed from within the screen. Additional information regarding the report is provided further in the chapter below. Figure 7a.x Inventory Monitoring Journal tab 7A-148 Rev. 10/2006

149 Inventory Journal Report The Inventory Journal Report Criteria form displayed below is retrieved by activating the PRINT pushbutton located in the Journal Tab (figure 7a.x). The user can configure the Journal Detail report by entering the report criteria into the screen. Once the report is configured to the specifications needed, it can be printed, viewed or sent to a defined distribution list. Figure 7a.x Inventory Journal Report Criteria Figure 7a.x Inventory Journal Details Report 7A-149 Rev. 10/2006

150 Inventory Monitoring WIP Pipeline The Inventory Monitoring Work In Process Pipeline tab displayed in the figure below is currently still in design process and unavailable. Please contact Henning Software for further updates on the form. Figure 7a.x Inventory Monitoring WIP Pipeline Tab 7A-150 Rev. 10/2006

151 PART HISTORY The Part History screen displayed in the figure below displays the overall history of the inventory item. All quotes, sales and shop orders, shipments and invoices associated with the selected inventory item are listed and can be accessed via the form. Accessing the Records Any associated records for the inventory item are listed in the screen. Each record can be accessed by highlighting the desired record and performing a double-click on the entry. The associated record is automatically retrieved. To access Shipments and Invoices, activated the pushbutton located in the bottom right hand corner of the screen. The Sales and Shop Order section of the form are replaced by the item s Shipments and Invoices. Criteria window box is used to select the inventory item and is also used to print the Where Used report. Activate pushbutton to retrieve a list of the item s Shipments and Invoices. Figure 7a.x Part History Menu Selection Left click on the menu heading labeled Materials Select Part History from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-151 Rev. 10/2006

152 Where Used Report The Where Used Report Criteria form displayed below is retrieved by activating the PRINT pushbutton located in the Part History form (figure 7a.x). The user can configure the Where Used report by activating the checkmarks of the material to include into the report. Once the report is configured, it can be printed or viewed onto the screen. Figure 7a.x Where Used Report Criteria Figure 7a.x Where Used Report 7A-152 Rev. 10/2006

153 UPDATE FINISHED GOODS COST The Update Finished Goods Cost utility displayed in the figure below is used to update finished goods based on the actual shop order costs. The routine can be performed for all finished goods inventory items with shop orders completed with a defined date range or for a finished goods item completed by a specified shop order. Figure 7a.x Update Finished Goods Cost Menu Selection Left click on the menu heading labeled Materials Select Update Finished Goods Cost from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-153 Rev. 10/2006

154 Finished Goods Cost before and After Update In the example below, the Average Cost per piece is greatly adjusted after the update is performed for shop order number The Average Cost/Piece prior to update. The Average Cost/Piece post to update. Figure 7a.x Update Finished Goods Cost Routine Example 7A-154 Rev. 10/2006

155 HISTORICAL INVENTORY REQUIREMENTS CALCULATOR The Historical Inventory Requirements Calculator displayed in the figure below is used calculate safety stock levels. It is a specialty routine designed for unique customer applications. Please contact Henning Software for additional information regarding this calculator and the necessity of using this calculator for your company needs. Figure 7a.x Historical Inventory Requirements Calculator Menu Selection Left click on the menu heading labeled Materials Select Historical Inventory Requirements Calculator from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-155 Rev. 10/2006

156 FUTURE INVENTORY REQUIREMENTS CALCULATOR The Future Inventory Requirements Calculator displayed in the figure below is a forecasting tool used to enter and report forecasted sales. The forecasted totals can be compared against the on-hand, available to sell and on-order quantities that are also included and displayed on the form. The forecasted data can also be compared against actual sales orders in the Forecast verse Actual Sales Order report found in the Order Sales Order Reports menu. Instruction for inserting forecast records and examples of the available reports are further provided in the chapter below. Figure 7a.x Future Inventory Requirements Calculator Menu Selection Left click on the menu heading labeled Materials Select Future Inventory Requirements Calculator from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-156 Rev. 10/2006

157 Adding a New Forecast Record To add a new forecasted record, activate the ADD pushbutton and enter in the projected sales date, customer and quantity. Figure 7a.x Adding a new forecast record 7A-157 Rev. 10/2006

158 Future Inventory Requirement Report The Future Inventory Requirement Report displayed in the figure below can be accessed by activating the pushbutton. Figure 7a.x Future Inventory Requirements Report Forecast verse Actual Sales Order Report The Forecast vs. Actual Sales Order report displayed in the figure below uses the forecasted data entered into the Future Inventory Requirements Calculator. The report is accessed within the Sales Order Reports submenu following the menu path: Order Sales Order Reports menu. Figure 7a.x Forecast vs. Actual Sales Order Report 7A-158 Rev. 10/2006

159 ADJUST INVENTORY UNIT COSTS The Adjust Inventory Unit Costs utility displayed in the figure below should not be used unless directed by Henning Software. Please contact Henning Software for additional information regarding this utility. Figure 7a.x Adjust Inventory Unit Costs Menu Selection Left click on the menu heading labeled Materials Select Adjust Inventory Unit Cost from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-159 Rev. 10/2006

160 INVENTORY SELLING PRICE CHANGE The Inventory Selling Price Changes form displayed in the figure below is used to adjust an inventory item s selling price by a defined percentage. The selling price is adjusted for all inventory items included in the Preview List displayed below. Inventory Numbers are retrieved into the preview list by defined criteria. The Inventory Mask field retrieves a list of inventory numbers that begin with the defined entry. The Inventory Type retrieves a list of inventory numbers defined to the selected type. The Product Code retrieves a list of inventory items included in a defined product code. Once the type of inventory involved is selected, a list of included inventory numbers is previewed onto the form. Inventory Numbers can be removed from the list by highlighting the item and then activating the REMOVE pushbutton or by performing a double-click on the highlighted record. Additional information regarding the form is provided in the chapter below. Figure 7a.x Inventory Selling Price Change Menu Selection Left click on the menu heading labeled Materials Select Inventory Selling Price Change from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-160 Rev. 10/2006

161 Inventory Selling Price Changes Field Req. Field Type Description Inventory Number Mask NO ALPHANUMERIC The Inventory Number Mask is used to retrieve a list of inventory items beginning with the entry defined. In the example above, all Inventory Numbers beginning with 01 were retrieved into the preview list. Inventory Type NO DROPDOWN Select the Inventory Type from the dropdown list to retrieve a list of inventory items defined as the inventory type selected. In the example above, all finished good items that began with 01 were retrieved into the list. Product Code NO DROPDOWN Select the Product Code from the dropdown list to retrieve a list of inventory items defined to the selected product code. In the example above, the product code field is blank. Therefore, items in all product codes are retrieved into the list. Selling Price Percent Change NO PERCENTAGE Enter in the selling price percent change to adjust the selling price for the items listed in the preview window. Preview Involved Inventory Numbers N/A PUSHBUTTON Activate the pushbutton to retrieve a list of Inventory Numbers that meet the defined criteria. Clear N/A PUSHBUTTON Activate the pushbutton to clear the form for reentry. Apply Change N/A PUSHBUTTON Activate the pushbutton to apply the selling price change to the list of items included. Remove N/A PUSHBUTTON Activate pushbutton to remove the highlighted Inventory Number from the list of inventory items to change. A double-click on the highlighted entry will also remove the item from the list. Exit N/A PUSHBUTTON Activate pushbutton to exit the form back to the main Visual EstiTrack TM menu. 7A-161 Rev. 10/2006

162 RECONCILE INVENTORY NEGATIVE LOTS The Reconcile Inventory Negative Lots utility displayed in the figure below is used for mass reconciliation of inventory quantities using current company settings. Discrepancies maybe incurred by changing company configurations in the Inventory tab of the Company Maintenance table. Negative lots can be reconciled for a single item, an inventory type or for all items. Please contact Henning Software for additional information regarding this utility. Figure 7a.x Reconcile Negative Inventory Lots Menu Selection Left click on the menu heading labeled Materials Select Reconcile Inventory Lots from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-162 Rev. 10/2006

163 PURGE INVENTORY JOURNAL The Purge Inventory Journal utility displayed in the figure below is used to purge all inventory transactions. If the quantity is greater than zero, an Adjust Over is created in order to preserve the inventory lots that compromise the current quantity on hand. Figure 7a.x Purge Inventory Transactions Menu Selection Left click on the menu heading labeled Materials Select Purge Inventory Journal from the drop down list. Security The system administrator controls access to this menu item via User Access Rights (see User Table). Careful consideration should be given regarding who is authorized to manage this menu option. 7A-163 Rev. 10/2006

164 Journal Records Before and After Purge The Inventory Journal examples display the journal records before and after a Purge is performed. All inventory records are removed and an Adjust Over is created to preserve the existing lots while maintaing the integrity of each individual lot. Prior to Purge Routine Post Purge Routine Note the integrity of the individual lots is preserved. Figure 7a.x Inventory Journal Records before and After a Purge is performed 7A-164 Rev. 10/2006

165 INVENTORY REPORTS Figure 7a.x Inventory Reports 7A-165 Rev. 10/2006