Warehouse Flow Updated January 2018

Transcription

1 Updated January 2018

2 Contents Using the Option Field...4 Using the Split Lines Feature...6 Setting Up the (LG0) Split Line Parameter for Order Entry...7 Setting Up the (LF) Split Line Parameter for Order Entry...7 Combining Split Lines When Printing...8 Using the Flush Vend/Bin Field...9 Scanning Received Quantities...9 Inventory Control...10 Management Decisions Commitment...11 Responsibility...11 Planning...11 Implementation...11 Setting Company Goals...11 Additional Considerations...12 Building and Maintaining an Inventory Database...12 Understanding Stock Classes...12 Setting Realistic Stock Classes Mass Setting Item Classes Important Fields in Inventory Control Unit of Measure Hits Inventory Review Process Setting Minimum and Maximum Quantities Understanding Bar Codes The Anatomy of a Bar Code: UPC Consumer Package Symbol The Anatomy of a Bar Code: Shipping Container Symbol Entering and Printing Bar Codes Entering Bar Codes Printing Bar Codes Developing a Game Plan Maintaining Accurate Inventory Counts Examining the Accuracy of Your Counts Using Hand-Held Scanners to Count Inventory Taking Inventory Counts With Bar Codes Managing Inventory Exceptions Issuing Credit Returns Deleting Items Transferring Stock Entering Customer Returns Restocking Returned Items ECi Software Solutions, Inc.

3 Processing Vendor Returns Internal Usage Eliminating Excess Quantities of Slow-Moving or Dead Stock Reports That Affect Inventory Control Using the Items Sold Restock Report Using Low-Stock Reports The Low-Stock Wholesaler Cycle Report The Min/Max Low-Stock Report The Exceptions Report The Receipts Report The Usage Report The Overstock Report The Inventory Extended Dollars Report The Sales Recap by Manufacturer s Cost or Actual Cost Using the Picking Manifest...31 Shipping Manifest...33 Flow of Shipping Manifest Understanding the Methods for Creating Shipping Manifests Creating a Shipping Manifest Using List Entry With Sort Order Using Vendor Credit Returns...36 Flow of Vendor Credit Returns Using Multiple Bins...37 Setting Up Multiple Bins ECi Software Solutions, Inc.

4 Using the Option Field The system supports a variety of Order Entry options. The Option field in the text-based (L1) Terminal and Ticket Parameters screen lets you enter codes that specify various types of options your system will allow. Up to three option codes can be entered in this field. Select the option code or codes appropriate for your hardware from the following table. Option Code Description Usage A B C D E Dual Printing Ithaca Bill of Materials Blank Paper Backorder Ticket Disable Drawer Merit Terminals Use this option if you have an Ithaca dual slip and invoice printer Use this option if you have assembly items entered in the (EB) Bill of Materials Link screen and need the option of itemizing them on tickets. You must also select this option if you have master or laundry lists. This option loads the Bill of Materials program into your system and, therefore, uses disk space. Do not select this option if you are not using the (EB) screen. This option is used when backorders are flushed. The primary bin location prints in the Bin column for items previously shown as shipped. This option prints in a standard 11 format. Use this option to prevent the drawer on a point-of-sale cash transaction from opening each time an order is ended. Use this option if you have all of the following: Mercantile Cash Drawer, Merit Credit Card Scanner, Merit Bar Code Reader, and Merit Display Bar. F Final Verify Use this option to set the Verify Type prompt default to F. G H Shipping Labels Shipping Labels Use this option if you only need shipping labels to print when a pick ticket prints. Use this option if you only need shipping labels to print when an invoice prints. I Initial Verify Use this option to set the Verify Type prompt default to I. J K L M DDMS POS Cash Drawer Credit Card Authorization Flushing Backorders Mercantile Cash Drawer Use this option if you are using the DDMS POS integrated cash drawer Use this option if you use credit card authorization. This option enables the prompt Scan Card Now to appear when an order is completed. Use this option when backorders are flushed. The primary bin location brints in the Bin column for items previously shown as shipped. Use this option if you use any cash drawer other than the Indiana Cash Drawer or Major Metalfab cash drawer. 4

5 Option Code Description Usage N Merit Credit Card Scanner Use this option if you have a Merit Credit Card Scanner. O P Q R S T U Special Status 8 Check No Pricing on Remotes IntelliDirect Order Sequence Skip Print Skip Print Terminate Print Esprit Cash Drawer V Credit Card Authorization W X Batch Print Skip Print Use this option if you need to omit the process of checking status 8 tickets for lower dashes when flushing. Use this option to mask all pricing information from remote terminals. Use this option to sequence and IntelliDirect order by one, starting at one. Use this option to prevent tickets from printing when all of the items are backordered. When you flush tickets, four asterisks (****) print in place of the bin location to indicate previously shipped items. Use this option to prevent tickets from printing when all of the items are backordered. When you flush tickets, the bin locations print for previously shipped items. If you specify S in both the Option and O/E Type fields, initialverified tickets containing backordered items print from a slip printer. To batch-print, you must also enter W in the Option field. Use this option if you entered a stock class range in the No Print From field in the (LG0) screen. The ticket does not print if any item within the specified stock class range is on backorder. When you flush backorders, the bin location prints for previously shipped items. To batch-print, you must also enter a W in the Option field. Use this option if you have an Esprit cash drawer connected to a terminal. Use this option if you use credit card authorization and use a POS register with an Epson printer. Use this option if you need to use the available printing options when batch printing tickets. Use this option if you do not need your tickets to print when the yare created in the picking manifest application. Y Merit Bar Code Scanner Use this option if you have a Merit bar code scanner. Z Merit Display Bar or Epson TM930 Printer Use this option if you have a Merit display bar or if you use the POS register with an Epson TM930 printer. 5

6 Using the Split Lines Feature You can split lines in both Order Entry and Purchasing. When you split lines, the system splits the shipped and backordered quantities of an item into separate lines on pick tickets and purchase orders. If you turn on the split line options, the system maintains the link between purchase orders and the pick tickets to which they re assigned. This makes it easier to track merchandise through the system. Suppose a pick ticket contains a line entry for 50 boxes of red pens. You have only 20 boxes in stock, so 30 are backordered. The system will split this line entry into two separate lines: one line for the 20 boxes that you ship, and another line for the 30 boxes that are backordered. Purchase orders can also have split lines. Suppose the 30 backordered boxes of red pens go on a P/O. However, the vendor sends you 40 boxes instead of 30. When you receive this P/O, the system will create a new line on the P/O for the 10 extra boxes. The original P/O line, which is assigned to the pick ticket, will retain the original quantity of 30 boxes, which is needed to fill the backorder. The split lines feature offers many advantages. First, each line has its own cost and purchasing information so that you can track costs more accurately. The split line feature also prevents pulling errors. It helps the puller working with flushed tickets, because it will separate the items previously shipped from stock from the quantities filled by the wholesaler. A code that tells the puller where to find the stock will precede each line. This code specifies whether the item is in the bin, staged, or delivered by a wholesaler. The split lines feature also offers more accurate tracking of the A Cost in the order entry and sales journal files (P-MASTER and JOUR-S, respectively). If you use this feature, the system will store the weighted average cost for the line quantities, ship from stock, and store the actual cost from the purchase order for the line quantities purchased from a wholesaler. This feature is important to the dealer who is delivering his mixed-line tickets all on the -0 ticket, either by pulling the in-stock portion of the order and staging to marry with wholesalers deliveries, or by pulling all lines on the ticket the next morning, after receiving the wholesaler s deliveries. In addition, if you use the split line features, you can also use several other features. Using the Specials field in the (LG0) screen, you can specify whether special lines will be attached to the line with the backordered items, the line with the shipped items, or both. If you use the split lines feature, you can also specify that your pick tickets always print in bin number order, which can simplify staging the orders. You do this using the Always Print Tickets In Bin Order field in the (LG0) screen. If you turn on the split line feature in both order entry and purchasing, you can also use the new assign and allocate feature. Instead of putting all your backordered items on a wholesaler s P/O you create through the short-buy, you can fill backorders from an existing purchase order. For example, if a backordered item is already on a P/O for a manufacturer, you can fill the backorder by assigning the ticket to the existing manufacturer s purchase order. Here we re building a P/O from the short-buy, and the system automatically displays a window for this item, indicating that unallocated quantities of the item are already on a P/O. You select the P/O by typing its line number. The system assigns the pick ticket that includes this backorder to the P/O you selected. This prevents unnecessary ordering, and lets you fill backorders faster. Also, with the assign and allocate enhancement, you have access to all your current purchase orders. You can view all your current purchase orders in the Order Entry, Purchase Order Entry, and Inventory windows. This feature makes it easy to see if an item is on a purchase order and when it is due. If you need to split lines in order entry, you set this up in the Split Lines To A Separate Line Partial Backorder field in the (LG0) Order Entry Parameters screen. If you need to split lines in purchasing, you set this up in the Split Lines on Partial Received Quantities field in the (LF) Purchasing Order Parameters screen. 6

7 Setting Up the (LG0) Split Line Parameter for Order Entry Use the following instructions to set the split line parameter for Order Entry: 1. To set up split lines for Order Entry, go to the (LG0) screen and select the [C] Change action code. 1.1 From the Master Menu, double-click. 1.2 Double-click. 1.3 Double-click Text Base Parameters. The text-based (L) Parameters screen opens. 1.4 Type G0. The (LG0) Order Entry parameters screen opens. 1.5 Type C in the Action field. 2. When the cursor moves to the Loc field, enter the location or press Tab to accept the default. 3. Press Tab until the cursor moves to the Split Lines To A Separate Line Partial Backorder field, as shown below. 4. In the Split Lines To A Separate Line Partial Backorder field, type Y. 5. Press Enter to move the cursor through all the fields in this screen. If you press Esc before doing so, the system will not save your changes. Setting Up the (LF) Split Line Parameter for Order Entry Use the following instructions to set the split line parameter for Purchasing: 1. To set up split lines for Purchasing, go to the (LF) screen and select the [C] Chg action code. 2. When the cursor moves to the G/L Loc field, enter the location or press Tab to accept the default. 7

8 3. Press Tab until the cursor moves to the Split Lines On Partial Received Quantities field. 4. In the Split Lines On Partial Received Quantities field, type Y. 5. Press Enter to move the cursor through all the fields in this screen. If you press Esc before doing so, the system will not save your changes. Combining Split Lines When Printing If you use the split line feature, you can change your format so that when you print the tickets, the system will combine the split lines into a single line when printing the ticket or invoice. You can change your format in the (+Z) Report Writer screen. Use the following instructions to make this change to your format: 1. From the Master Menu, double-click. 2. Double-click. 3. Type Z in the Enter Program Request field. The (+Z) Report Writer screen opens. 4. In the Report Name field, enter the format to change. 5. Press Enter until the cursor moves to the Master File field. In this field, type P-MASTER. You must use P-MASTER as the master file. 6. At the prompt You Have Picked P-Master As The Master, press Enter or type Y. 7. Press Enter until the cursor moves to the Line field. This field defaults to line 1. Press Enter to accept the default. (Line 1 must be specified in this field. 8. At the prompt Change Fonts For This Line, type Y. 9. At the prompt Combine Lines For Ticket Printing, type Y. 8

9 10. Press Enter until the cursor moves to the File to Select From field. 11. Press Esc until the system displays the prompt Make Permanent Change to Format Library. 12. At the Make Permanent Change to Format Library prompt, type Y. 13. The system displays the prompt Put In Format Library As [ XXX]. In this prompt, the Xs are replaced by the name of the format. If you need to save the format with this name, type Y. If you need to change the name, type N. At the Enter New Format Name prompt, enter the new name for the format. 14. The system saves the format with the name you specified and the cursor returns to the Report Name field. Press Esc until the system returns to the Master Menu. Using the Flush Vend/Bin Field You can use the Flush Vend/Bin field from the P-LINE file to print the vendor number on the pick ticket when the item flushes. If the item has not been flushed, the system prints the bin location. For the vendor number or bin to print on your pick tickets or reports, you must add the Flush Vend/Bin field to your format using Report Writer. To do this, go to the (+Z) Setup Formats For Reports screen, enter the format name for which you need to add this field in the Report Name field. In the File to Select From field, select P-LINE. For detailed instructions, see the Customer Support Center. Scanning Received Quantities The following instructions give a brief overview of receiving quantities by scanning in the (F) Purchase Order Entry screen. 1. When the system displays the Receive P/O Item By Scanning prompt, type Y. 2. When the cursor moves to the Stock Number field, scan the item. The system displays information about the item, the cursor moves to the Have field, and the Correct Item prompt appears. 9

10 3. If the displayed item is the correct one, enter the quantity of this item that you received and press Enter. The cursor returns to the Stock Number field, and the system repeats the Enter Item message. 4. Scan the next item. 5. After you enter the last item, press Esc to compare the items on the purchase orders to the received list. 6. At the prompt Ready to Compare to P/O, type Y. As it checks the ordered quantities and received quantities, the system displays the message Checking Quantities. The system then displays the Exceptions Window: The Number Of Lines On P/O field shows the number of line entries, including specials, on the purchase order. The Number Of Items On P/O field shows the number of items on the purchase order. The Items With Deficient Qtys field shows how many line items received fewer than the ordered item quantity. The Items With Surplus Qtys field shows how many line items received more than the ordered item quantity. The Fill Percentage field shows what percentage of the purchase order was filled. 7. The system displays the prompt Send Exception Detail to Screen or Printer. Enter your response according to the following: C Continue receiving items. S Display quantities that do not match on the screen. At the Print Exceptions prompt, specify whether you need to send the exceptions to the printer. P Print the quantities that do not match. Enter the logical name of the printer in the Printer field. At the Are You Sure prompt, type Y. 8. At the Receive This P/O prompt, type Y to receive the purchase order. The cursor returns to the action code field, and the system prints the P/O Receiving Exceptions Report if you so indicated. The system displays each line item on the purchase order as it is received. 9. When the last line item has been received, the system displays the End Of P/O - Press Any Key To Continue prompt. Press Enter. Inventory Control Inventory control management involves everyone who has an impact on your business: employees, dealers, managers, and consultants. Everyone must work together to combine automation, consistent policy, and management to produce a successful dealership. Inventory is the largest asset in your business. You can avoid problems and save money by pruning your inventory with the help of your employees and managers. Your inventory control plan should include objectives for employees and processes for decision making and goal setting at the management level. Each of these is discussed in this section. Management Decisions The actions of your employees can greatly affect the condition of your inventory. Each employee should learn these four objectives to guide them in all inventory control activities. 10

11 Commitment Properly managing inventory control requires commitment at every level of the company including the owner, the management, and the employees. Responsibility Although maintaining inventory control requires the effort of every employee, you should decide who is responsible for your inventory. You have accounts receivable employees do you have inventory control employees? Planning Establishing inventory control requires some time and effort, but you will find that it not only reduces costs, but increases the efficiency of your operation as well. Inventory control will save your company money. Implementation Maintaining inventory control is not time consuming. In fact, it is as simple as reviewing certain aspects of the system and making periodic adjustments. Setting Company Goals Every dealer has a list of goals and objectives, some of which are unique to their particular situation. The following goals, however, are not only common to many dealers, but also readily achievable in most cases: 1. To reduce inventory investment by: Reducing the total number of items stocked Eliminating the excess supply of slow-moving items Maintaining lower inventory levels of stock items Eliminating all dead inventory. 2. To maintain or improve the level of service by increasing the number of times that stock items are available when the customer orders them. To reduce the number of backorders, as a result of goal number 2. This in turn will reduce the cost of shipping, handling, and administrative record keeping. To be able to quickly respond to customers questions on inventory availability. 3. To maintain sales analysis information so that you can better determine which items to stock and which items to buy from wholesalers. To provide the purchasing department with the information it needs to properly evaluate deals and other vendor promotions. 4. To improve employee productivity by: Providing a machine-printed picking document that arranges ordered items that are out of stock Not asking employees to try to find items that are out of stock Establishing set locations in the warehouse for all items, to make stocking and cycle counts easier. 11

12 Additional Considerations The determination of stock versus non-stock and direct versus wholesaler purchase cannot be based only on hits. Availability, lead time, warehousing space, and other factors must be considered by each dealer. Determining which items to stock can require different procedures for retail and commercial operations. For example, you might use hits for retail stores, but use usage and low stock reports and a desired number of inventory turns for the warehouse. In the retail environment, an item with one hit per quarter may need to be a stock item, but the stocking position of the same item in the warehouse may be more dependent on its desired number of turns per year and on the ability to purchase and stock on an appropriate level. You must decide how much you need to put into inventory and how many times a year the inventory should turn. With these goals in mind, the use of a hits report and a usage report can help you manage you inventory. Evaluate each item individually its buying and selling units, its usage, and its hits. If you need six turns per year, an item must sell its purchased stock within a two-month period. With chair mats bought and sold in eaches, only one in each size needs to be sold every two months to be a stock item. However, if pens are ordered direct in quantities of four gross for each style and each color, the stocking and purchasing decision must be different to meet the desired number of turns and level of investment in inventory. You can use the reports that show usage and activity, vendor analysis, and desired number of turns to determine which items you should stock, and whether to buy from a wholesaler or manufacturer. Building and Maintaining an Inventory Database One of the primary steps in automating inventory control is loading item files. Item files are a necessary component for order entry, correct pricing, and purchasing. They are also the primary component for effective inventory control. Item files are an evolving element that require a well planned setup and continuous maintenance over the years. Left alone, they will become ineffective. With proper care, the item files will help increase sales, ease purchasing burdens, reduce excessive stock, and minimize lost sales. A planned file will also ease the difficult task of starting and maintaining perpetual inventory. For item files to be effective, you must: Load the update consistently Check for newly added items and set the class, department, and alternate codes Check for duplicate items. Loading item files provides the basic information critical to going live on order entry, such as the stock number and description, pricing and costing, and the selling unit of measure. Other data important to purchasing is also loaded, including the wholesaler s prefix and the buying unit. Some boxes in the Item window are completed during the initial loading of item files, but other boxes are useful tools of inventory control. Key fields are stock class, alternate codes, unit of measure, and hits. Understanding Stock Classes Stock classes play a significant role in purchasing and inventory control. The stock class identifies the group in which a specific item belongs. It also allows selective updating of list price, replacement cost, and average cost in the item file update program. Before stock classes can be an effective tool, you must review your own operation, decide what your needs are, and determine how you plan to use stock classes to meet those needs. Stock classes are not necessary 12

13 for going live on order entry and purchasing, but proper stock class assignments increase the capabilities of the system for inventory control, order entry, and purchasing. Following is one method for classifying items by stock class. (Your own business practices and creativity will help define the method you use.) Stock Class A: Stock Class B: Stock Class C: Stock Class D: Stock Class N: Stock Class W: Other categories could include: Stocked items purchased direct top 50 sellers The remaining stocked items purchased direct Stocked items purchased from a wholesaler Stocked items for seasonal sales Non-stocked items purchased from a wholesaler New items from a wholesaler. New items loaded from an item file update Items needing special manual price/cost updating Items with long descriptions, such as furniture Items requiring product labels Discontinued items Items with preferred substitutes Items with required substitutes Group checkouts. What kinds of categories are necessary for effective inventory management? A category for stocked versus non-stocked items will let you continually analyze the stocking status of items without requiring that you review 30,000 items. These stock classes also allow you to quickly identify a problem with the stock level of an item if it repeatedly shows up on the Short Buy Report. All items initially loaded into the computer through the item file update program are added under the stock class of W, or whatever you set as the default. From this starting point, you reassign stock classes to divide the inventory file into manageable groups. All inventory items should be reviewed periodically and adjusted to meet changing demands. With one notable exception, there are no absolute rules regarding stock class assignment. The exception is that you will realize an efficiency in purchasing reports by using the ABC method. The ABC method simply means that reports will be sorted in alphanumeric order, and that, since stocked items need to be listed at the beginning of these reports, stocked items should have the first stock classes; A, B, and C, for example. This is shown in the following figure. 13

14 Stock class N or W is often used to label non-stock items. Since new items are loaded as stock class W, if N is used for non-stock items, all items added in later updates are easily identified. However, if the non-stock items are not changed from W to N, you must review the printout from the update for new items. To use stock class N, use the (+E) screen to mass change all stock class W items to stock class N after the initial load. You can also use the (+EP) screen to change stock classes (discussed later in this section). After loading updates, print a list of the new W items. Change items you need to remain as non-stock items to N, and change the others to their appropriate stock classes. Doing this after each update ensures that your items are classified properly. When loading an item file update, you can use item class to prevent an item s list price, replacement cost, average cost, or description from getting updated. For example, you could limit an average cost update to non-stock items only, since the average cost for stocked items is best updated in purchasing. Setting Realistic Stock Classes You must make the following decisions before you begin setting stock classes: 1. How many of an item will you sell in a given time period? 2. How many dollars can you afford to keep in inventory? 3. What is the ratio of cost to hits? (If an item is low in cost and high in hits, that item should never be out of stock.) 4. What gross profit margin does the item contribute in dollars? (If it has a high profit margin, it should always be in stock.) 5. What does it cost you to purchase the item? 6. Do you focus on items that support your vendors? You do not need to sell five different lines of ring binders, legal pads, or pencils, for example. Buy as much from a single vendor as possible, so that you can purchase more often and turn your inventory better. Mass Setting Item Classes Instead of manually assigning item classes one item at a time, you can mass set them. To do this, select [P] Set Class from the (+E) Modify Inventory Records screen. 14

15 When you mass set item classes, you should first print a variety of inventory reports to give you the limits you will use. Some common limit fields are item company, vendor, existing class, item department, year-todate hits, gross profit percentage, and margin. Important Fields in Inventory Control Other important boxes in the Inventory Master tab are the Selling Unit, Buy Unit, and Hits boxes. These boxes work together to help you control your inventory. To keep watch over your inventory, you need to review your database. This process is described later in this handout. Unit of Measure You can use the retail Unit and Buy Unit fields to specify how you need stocked versus non-stock items to be sold. These fields are shown in the figure below. Stocked items are sometimes sold as retail units, while non-stock items are usually special order items that you do not need to break up. See the figure on the following page. Retail and buy are two unit types. Retail is the lowest selling unit. For example, the retail (selling) unit of pens may be EA, for single pens. The buy unit is the unit that must be used when purchasing from the wholesaler. With pens, this may be DZ for a dozen pens. The wholesaler buy unit may or may not be the same as the retail unit. Once a unit type is established, the system will not change from this type. These types and names are provided in the item file from the file source, whether it comes direct from the wholesaler or through the O/ PUS file. Many dealers need their stocking items as retail units, since this is the way the items are usually sold. However, it may be preferable to have the non-stock items in buy units, forcing customers to buy non-stock items in the same unit in which the dealer must buy the item. This eliminates breaking of units and placing non-stock broken carton items on warehouse shelves, where they may never be sold. To do this, you must choose whether you need retail or buy units loaded into the selling Unit box when loading new items from an update. ECi recommends loading the retail unit of measure for stocking items. 15

16 Hits You can use historical data to determine whether an item is to be a stock item or a non-stock item. In a minimum of two to three months of online order entry, a dealer can have meaningful data for review. No one field or piece of data can make the definition, but the Hits field is important in determining stock class and bin location assignments. There is no need to stock items without hits. Avoid stocking items with few hits because they may become part of accumulated non-selling stock. Periodically review a hits report on non-stock items to reveal items that should be stocked. The Hits field acts as a counter. Every time an item is entered as a line item on an order (pay code 1, 2, 3, 4, or 9), another count is added to the item s hits field. Run a hits report periodically, and, on a schedule, clear hits. Most dealers clear hits once a year. It is important to know how long the hits have been accumulating when evaluating a hits or usage report. A hits report is an item catalog sorted by hits. Limiting this report to the first 5,000 to 8,000 items is more than adequate for determining stocking items. A hits report limited to 1,000 items is useful for bin location assignments. This report prints in descending order with the item with the most hits printing first. Inventory Review Process The review process is a necessary, time-consuming task that pays off with better service and lower inventory costs through better stocking practices. Some dealers review the stocking and non-stocking positions annually. Others review it quarterly. Both have good inventory control. By segregating stock items between direct purchase and wholesaler purchase, a dealer s purchasing agent can make better decisions. If a Short-Buy Report turns up a stocked item, the agent is alerted to determine when the next order from the manufacturer is due. With this information, enough stock can be ordered to cover current and near-future customer orders without over-purchasing from the wholesaler. Having stocking items appear on short-buys, necessitating wholesaler purchases at a higher cost, should be cause for review. Is this a fluke or a trend? Should more be purchased direct, or is this a momentary increase? A usage report, which shows not only hits but complete history of the item, is a valuable tool for such an analysis. Stocked items purchased from wholesaler sources, need periodic review. High frequency of sales may make these items candidates for direct purchase. Low frequency could make it a non-stock item. Planning and continuous maintenance of the item file is critical and cannot be overemphasized. Nearly every day, the purchasing evaluation of hits and usage reports acts as a maintenance guide throughout the year. No inventory is unaccounted for. This will make your single biggest asset, inventory, work for you instead of the other way around. Setting Minimum and Maximum Quantities The following text explains how to set minimum and maximum stocking levels through the (+E) Special Item screen. These levels are used in calculating reorder amounts on the Low-Stock and Overstock Reports. Note: It is not necessary to clear existing minimums and maximums prior to running this function. Use the following instructions to set minimum and maximum quantities: 1. Go to the (+E) screen and select the [O] Set Minimum/Maximum action code. 16

17 2. The Minimum and Maximum Fields screen opens. In the fields in this screen, you can limit which item records are included in this function by specifying a range. Suppose, you need to set the minimum and maximum quantities on records with stock classes of A to B. You would enter 1000 in the Item # field, and 2000 in the corresponding To field. Note: If you do not need to set limits, press Enter until the cursor moves to the Formula To Use field. Go to Step 5. If you do not specify a range, the system will set minimums and maximums for all inventory records with history in the (EH) screen. 3. The Class and Dept fields refer to the Class field in the Master Record and the Class field in the Pricing Record, and the Dept field in the Master Record and the Dept field in the Pricing Record, respectively. 4. To set limits, tab to the appropriate field, enter the beginning of the range to include in the changes in the first field, and press Tab. Enter the end of the range in the corresponding To field. 5. After you set limits, or move the cursor past the limit fields, the cursor moves to the Formula To Use field. Specify how minimums and maximums are calculated for each inventory record based on their usage history. The 3 month selection is calculated using the following formula: (M1+M2+M3) x CW = Suggested Min/Max Levels 13 Note: M1 =Month 1 M2 =Month 2 M3 =Month 3 13 = Average number of weeks in three months CW =Cycle weeks. The system uses the 3 months prior to the current month. 6. In the Number Of Weeks To Stock field, set the minimum and maximum number of weeks to stock. Set the minimum according to the number of weeks to reorder. This should include lead time from vendors. Set the maximum based on your usage history. 7. In the Which Location field, specify the location that you need to set minimums and maximums for. To set minimums and maximums for all locations, press the Spacebar to move through the Which Location field. 8. The cursor moves to the Verify Changes Record By Record field. Here, you specify whether you need to change all the records at once, or verify the records one at a time. Enter your response according to the following: Y Change each specified inventory record one at a time. N Change all specified inventory records at once. 9. At the prompt Are You Ready To Go, type Y to begin the process. 17

18 10. The system displays the following information for each record that meets the limits you set: Item number Company/color Number of records read Number of records changed. 11. If you entered N in the Verify Changes Record By Record field, the system displays all the records that meet the limits you set, displaying each record in turn. Go to Step 14. If you entered Y in the Verify Changes Record By Record field, the system displays information for each record that meets the limits you set, one at a time. The system also displays the current minimum and maximum and what the setting will be after you change it. Go to Step At the Change This Record prompt, enter your response according to the following: Y The minimum and maximum quantities are changed. N The minimum and maximum quantities are not changed. 13. The system displays the next record that meets the limits you set and repeats the Change This Record prompt. 14. When all of the inventory records have been displayed, the prompt Setting Of Min/Max Complete appears. 15. To set additional minimums and maximums, press Enter to move to the Item # field. To return to the (+) screen, press Esc while the cursor is in the Item # field. Understanding Bar Codes To make quick checkout a reality on your retail floor, use bar codes for effective pricing and inventory control. The following outline provides a checklist for understanding bar codes. 1. Why bar codes? 2. What is a bar code? 3. Developing a game plan 4. How to enter bar codes 5. How to print bar codes 6. Setting up equipment 7. Loading on-hand quantities with a hand held scanner Setting up equipment Creating inventory files Building an inventory purchase order Releasing to on-hand. 18

19 The Anatomy of a Bar Code: UPC Consumer Package Symbol Warehouse Flow The Anatomy of a Bar Code: Shipping Container Symbol The Shipping Container Symbol appears on a manufacturer s middle level of packaging, such as shipping boxes and pallets. These bar codes identify packages that contain a number of identical items. The numbers that identify the individual items are similar to those used for UPCs, and there are additional numbers used to describe how individual items are grouped into larger packages. For more details, see Supplemental Guidelines for Universal Product Code Information in the Office Products Industry, published by NOPA. 19

20 Entering and Printing Bar Codes The following is a brief outline of the steps you must perform in order to enter bar codes. Entering Bar Codes 1. Entering Bar Codes in the I-ALIAS File: 1.1 Go to the (ES) Inventory Alias screen. 1.2 Select the [S] Scan Codes action code. 1.3 Enter Common for the Customer Name. 1.4 Enter the Default Product Code. 1.5 Enter the 10-digit number 1.6 Enter the Customer Unit. 1.7 Enter the Factor (M/D). 1.8 Enter the Factor Amount. Warehouse Flow 2. Bar Coding On-the-Fly in POS You use this technique to catch items on the retail floor that have not yet been entered in the I-ALIAS file. To do this, you must enter Y in the Allow New Bar Codes To The Alias File field in the (LG2) Point-of-Sale Parameters screen. 2.1 Go to the (G) Order Entry screen. 2.2 In the Item Number field, scan the bar code label. 2.3 At the Invalid Bar Code message, enter the correct item number. 2.4 Enter the quantity. 2.5 Type Y at the Add Last Bar Code as An Alias for This Item Y/N prompt. 2.6 Enter the Factor Amount. 3. Bar Coding On-the-Fly in Purchasing 3.1 Go to the (F) Purchase Order Entry screen. 3.2 In the Item Number field, scan the bar code label 3.3 At the Invalid Bar Code message, enter the correct item number. 3.4 Enter the quantity. 3.5 Type Y at the Add Last Bar Code as An Alias for This Item Y/N prompt. 3.6 Enter the Factor Amount. Printing Bar Codes 1. A. From the I-ALIAS File: 1.1 Go to the (ES) Inventory Alias screen. 1.2 Select the [P] Print action code. 1.3 Enter Common for the Customer Name. 20

21 1.4 Enter the Label Type: Type 1 for Product. Type 2 for Retail Shelf. 1.5 Enter the printer name in the Printer field. 1.6 Scan or manually enter the bar code 1.7 Type Y at the Print Bar Code For This Alias Y/N prompt. 1.8 At Price To Print On Labels prompt: Type L for List Price. Type W for Wholesaler Price. Type Q for Quantity break. Type N for No Price. 2. From the (RR) Inventory Reports Screen: 2.1 Select the [S] Labels function 2.2 Type B for bar code 2.3 At the Sets prompt, type 1 to print for Product, or type 2 to print for Retail Shelf. 2.4 At the Price To Print On Labels prompt: Type L for List Price. Type W for Wholesaler Price. Type Q for Quantity break Type N for No Price. 2.5 Select the Alignment. 2.6 Enter the Location. 2.7 Enter sorts. 2.8 Enter limits, or leave the limiting fields blank to print all of the labels 3. From the RECEIPTS File: 3.1 Go to the (TR) Order Entry Reports screen and select the [H] Stock Receipts Report function. 3.2 Press Tab at the Release To On Hand prompt. 3.3 At the Labels prompt. type B to select bar codes. 3.4 At the Price To Print On Labels prompt: Type L for List Price. Type W for Wholesaler Price. Type Q for Quantity break Type N for No Price. 21

22 3.5 Select the Alignment. 3.6 Enter class sorts as needed. 3.7 Enter the Location. 3.8 Enter the printer to use. 4. From the (R) Inventory Selectors Screen 4.1 In the Selector field, enter the number of labels to print. 4.2 At the Change All, Printer, Or Execute prompt, type A. 4.3 Change the sorts or limits as needed. 4.4 Return through the prompts for adding detail and header text 4.5 Press Tab in the Totals Only field. 4.6 Enter the printer to use in the Prt field. Developing a Game Plan 1. For Items with Bar Codes, purchase a database from O/PUS that contains bar codes and load it, or scan items with UPCs and add them as aliases. 2. For Items without Bar Codes 2.1 Print inventory report that reports top gun or MPC number in the I-MASTER file 2.2 Manually enter bar code numbers for items without printed bar codes, using the top gun or MPC numbers. Maintaining Accurate Inventory Counts Inventory counts are much more effective when they are done routinely rather than once a year. You can make your inventory counts more accurate and cost-effective by paying one employee to count inventory a certain number of hours per week instead of paying the entire company overtime for one or two days at the end of the year. Also, if the employee views these tasks as part of his responsibility, he will take pride in them and will be sure inventory counts are done correctly. This ensures that your cycle counts are frequent and consistent. Examining the Accuracy of Your Counts Periodically, you should perform a case study by selecting an item you sell between five and ten times a day. After you have pulled all orders, count the number of that item on the shelf and see if the count matches that of the system. If not, you can find the error by examining the reports to find all transactions containing the item and explain the error to your employees. This will help prevent future mistakes. Using Hand-Held Scanners to Count Inventory The M3000 hand-held scanner lets you count inventory by scanning the bar codes on items and shelf labels. Using this scanner can increase the speed and accuracy of your inventory count by eliminating key strokes. The scanner holds the inventory counts, and you download it into the computer. You can keep this information in a file, then place it on a P/O and run the file through the Short-Buy. To prepare for a scanner inventory count, create a common alias for every bar code. You do this in the (ES) Inventory Alias screen. Then print bar code shelf labels through the (ES) or (RR) Inventory Reports screens. 22

23 23 Warehouse Flow Taking Inventory Counts With Bar Codes With the M3000 scanner, taking inventory is as easy as scanning an item s bar code label and entering the quantity, and, optionally, the bin location. This ensures that each quantity is recorded for the correct item, unlike manual count sheets. When the count is finished, the quantities are downloaded directly from the scanner to your system, converted into a SHORTBUYS-type file, and then released to a purchase order, eliminating the errors that can occur when manually keying in items from a count sheet. Once the quantities have been transferred to a purchase order, the purchase order can be received and released to on-hand quantities exactly as though you had performed the count manually. The following instructions give a brief overview of taking an inventory count with bar codes. For complete details, refer to the Barcoding Manual. Use the following instructions to take an inventory count with bar codes: 1. When you are ready to begin counting, press the scanner s On button. The scanner displays the message Portable Mode Select Function. 2. Press the I/Input key. The scanner displays the Select Program > PGM1 prompt. 3. At this point, you must decide which of the scanning programs that you need to use. To use PGM1, press the Enter key. To use PGM2, press the Down arrow key. The scanner displays the Select Program > PGM2 prompt. Press the Enter key. 4. Once a scanning program has been selected, the scanner displays the Input File > *New File* prompt. At this point, you can create a new inventory file or add to an existing one. The M3000 scanner can store multiple inventory files in memory. This lets you divide the area you are counting into sections and create a separate file for each section without having to continually stop and download the counts. The inventory programs include error-auditing that notify you of problems, unit of measure errors, or missing aliases. Dividing the area to be counted into several sections and using a unique file name for each section makes it easier for you to locate these items and correct the problem. To begin a new file, press the Enter key. The scanner displays the Enter File Name prompt. Enter a unique file name. To add to or change an existing inventory file, press the Up or Down arrow key until you see the name of the file that you need to use and press Enter. At the Append to File prompt, press the Yes key on the scanner. 5. If you are using inventory program PGM1, the scanner displays the I/N and Qty fields. If you are using inventory program PGM2, the scanner displays the I/N, Qty, and Bin fields. 6. When the scanner displays a blank item record and the cursor is in the I/N field, you are ready to begin counting your inventory. To do this, scan the bar code for the item by moving the wand across the bar code. 7. When the scanner reads the code, it beeps, displays the bar code in the I/N field, and the cursor moves to the Qty field. This field defaults to one. If you have factor amounts set up for all of your items in the (ES) screen, you must enter the quantity in the unit of measure that you scanned and press Enter. If you do not have any factor amounts set up, you must enter the item quantity using the inventory unit of measure. After you enter the quantity, press Enter.

24 8. If you are using scanning program PGM1, the cursor returns to the I/N field so that you can scan the next item. If you are using scanning program PGM2, the cursor moves to the Bin field. To change the bin location, enter the new location. Once you have entered a bin number, the cursor returns to the I/N field so that you can scan the next item. Managing Inventory Exceptions Perpetual inventory is the maintenance of the various quantities of any given item at any given time: on-hand, on-order, allocated to orders, and backordered. The system uses the I-AUX file to store information for the Inventory Usage Record in the (E) Inventory Master screen. To learn how to maintain perpetual inventory, you must determine exactly where the system affects the various quantities used to maintain perpetual inventory. This part examines prompts in the system that affect the I-AUX files and can cause loss of inventory control. The table below shows how the system updates the information in the I-AUX file. Field in the Inventory Usage Record Hits Backorder On Order On Hand Alloc Receipts Mtd Sold Increased When you place an item on a ticket with status 4 or greater. When you place an item on a ticket with a status of 6 or greater, and there are no onhand quantities When you place an item on a purchase order, or, if the ONLY UPDATE I-AUX field in the (LF) screen is set to Y, when you end a purchase order When you release an item to on-hand When you place an item on a ticket of any status and there are on-hand quantities, OR when an item is flushed to a backorder ticket with a status of less than B When you final-receive an item on a purchase order When an item prints on a status B ticket Decreased Only when you perform the year-end function in the (EH) screen. When an item is flushed to a backorder pick ticket. When you final-receive an item on a purchase order. When you place an item on a ticket of any status. (This field does not display negative numbers) When an item prints on an invoice (Status B) When you flush an item to a backorder ticket, or when you flush an item to on-hand When you perofrm the month-end function in the (EH) screen Issuing Credit Returns When you issue a credit return in the (G) Order Entry screen, the system displays the prompt Put To: O=Onhand, R=Receipts, T=Trash, V=Vendor. 24

25 If you choose on-hand, the system reduces the current month-to-date sales and increases on-hand quantities. If you choose receipts, the system adds the quantities to the RECEIPTS file. When you flush backorders, the system applies the amounts to other customer backorders. When you run a stock receipts report, the system moves remaining amounts to on-hand. The current and YTD sales are reduced. If you trash, the I-AUX file will not be affected. Note: The I-AUX quantities are not affected until the credit return is invoiced (moved to a status B). Deleting Items Deleting items or entire orders that have been completed also require special attention. If the order is deleted using the [D] Delete action code in the (G) screen, or the DELETE special during Order Entry, the system displays the Quantity To Restock prompt. If all of the order quantity was backordered, this prompt will come up with no default quantity, and you can enter a new quantity. The system deletes the item, and places the quantity to on-hand. If there were allocated or backordered quantities, these will be reduced. Changing items works in the same manner as deleting items. Transferring Stock When you transfer stock using pay code 9 in the (G) screen, two locations are affected. The location number at the top of the order entry screen dictates which warehouse is to receive the stock. After you answer which warehouse location from which the stock will be pulled, the system displays the To Where prompt. If you choose to place the quantities in on-hand, the system increases the allocated quantity of the pulling location, and decreases the quantity of on-hand upon completion of the line item. The system will reduce the allocated quantity and increase the receive location on-hand when the order has gone through status B (invoicing). If you choose to place the quantities in the RECEIPTS file, the system works in the same way as choosing onhand, except that when the order becomes status B (invoice), the quantities go to the receiving location s RECEIPTS file instead of on-hand. Entering Customer Returns If you re not immediately going to a status B, ECi suggests that all merchandise should be trashed when you enter the credit in the (G) Order Entry or POS Order Entry screen, because some items will be returned to stock and some to the vendor. This way, an inventory specialist decides where the merchandise goes instead of the clerk. For merchandise that the customer is returning, go to the (G) Order Entry screen and select either the 5=Credit Return or 6=Cash Return pay code. When you enter each item on the return, the system will display the Put To: O=On Hand, R=Receipts, T=Trash, V=Vendor prompt. To remove the possibility for error, prior to going to a status B, DDMS recommends that you type T at this prompt. This way, all goods must go to the customer returns area of your stock room. There, the proper personnel can mark any item to be returned to the vendor, items to be trashed, or items to be returned to receipts. The following paragraph discusses an alternate way of handling returns. 25

26 26 Warehouse Flow Restocking Returned Items For merchandise that is returned to stock, ECi recommends that you put these items on an Inventory P/O and physically move them to a to be restocked shelf. To do this, go to the (F) Purchase Order Entry screen and select the [O] Order action code to create the purchase order. When the cursor moves to the VENDOR # field, type INVENTORY. You may need to assign the P/O containing returned merchandise the number RESTOCK so that you can exclude this P/O when flushing backorders. Enter the items that you need to restock on this purchase order. When you receive this purchase order, the system will write the item to the RECEIPTS file just like a valid purchase. Also, when you print a Stock Receipts Report in the (TR) Order Entry Reports screen, the word RESTOCK will appear in the P/O Number column for this item. This makes it easy to identify the items in your returns area that need to be restocked. Processing Vendor Returns For merchandise that you will return to the vendor, ECi recommends that you use the Vendor Credit Returns module. For details, see the heading Using Vendor Credit Returns. Internal Usage Usage of stock by the dealer for company operations should not be treated any differently than an order to a customer. Your company s operation will dictate the best way to handle internal usage. ECi advises you to use Order Entry for recording stock usage. This way, you can maintain inventory quantities, track dollar usage, and report accurate sales tax of internal usage. For example, set up a shelf or cabinet outside the stockroom or warehouse that you sell to employees. Clerks help themselves to things in this cabinet. Someone is in charge of the cabinet and order supplies to replenish it. This involves checking the cabinet once a week, then creating an order for the necessary merchandise. When the order is filled, the merchandise is placed in the cabinet. When creating the order, use a special customer that is just for this purpose. You can use a pay code 0 (no charge) or a pay code 2 (charge) to create the order. Either pay code will track the cost for you (a charged order will actually be posted to A/R).If you charge internal usage to A/R, you don t need to write a check. Make adjustment payments against the account, using the appropriate expense general ledger numbers for the REVERSE G/L. This will reduce the A/R and increase the expense accounts. It takes discipline to record all internal usages. Perpetual inventory of pens and paper clips can quickly deviate from the actual quantities when internal usage management is slack. Eliminating Excess Quantities of Slow-Moving or Dead Stock The first step in economizing your warehouse is to determine which of the stock you carry is slow moving. This information is easily obtained by running a Usage Report with on-hand quantities. The next step is to run an Overstock Report. This report indicates which items it is necessary to liquidate. For information on these reports, see the heading Reports that Affect Inventory Control. After you determine which items to liquidate, determine how to eliminate them. Options include: Attempt to return the items to the vendor from whom they were purchased Organize the sales force and offer an in-house sale Distribute small quantities to your retail locations to display Donate the items to charity and declare the losses on your taxes.

27 After eliminating excessive slow-moving stock, review your usage trends on a periodic basis to avoid accumulating the items again. Compare each year to the previous year (or an equivalent period of time). Use the following formula: (Last Year Usage - Previous Year Usage / Last Year Usage) x 100 The resulting percentage can be used to determine whether to re-evaluate stocking procedures for an item. If the item shows a five percent change, or greater, then the quantities and frequency of purchasing need to be examined. This process can help you prevent slow-moving items from becoming dead stock. Reports That Affect Inventory Control The following describes the reports that affect inventory control. Using the Items Sold Restock Report The Items Sold Restock Report, which you print through the (U) Sales Selectors screen, is an excellent way to get started because it does not require inventory, on-hand, or Min/Max levels. It recommends that you buy the same amount that you sold. However, unless you limit the report to specific stock classes, you may replace items that you do not normally keep in stock. You may also reorder inappropriate quantities because a backorder ticket was included on the report. When you print the report, you indicate the time period to include, since the report prints from archived customer orders. This report shows items sold for the month, and includes the following information for each item: Item number and company Item description and stock class Unit of measure and quantity sold Extended selling price Hits and vendor. Using Low-Stock Reports The most important tool for replenishing stock items is the Low Stock Report. There are 3 different lowstock reports you can use for purchasing information. The Low-Stock Wholesaler Report-Min/Max bases these order quantities on minimum and maximum stock levels. The Low-Stock Wholesaler Report-Cycle bases suggested order quantities on the last three months of sales history of an item and the projected number of weeks between orders (cycle), and predicts an order quantity for your next two months. Finally, the 13-Month Low-Stock Report bases order quantities on 13 months of sales history. This report also displays 24 months of usage. All of these reports can generate a file that can be used to automatically create purchase orders using the Short-Buy function. Low-Stock Reports can be run without saving the purchasing information in a file. However, since efficiency is your objective, take this opportunity to limit the report to a single manufacturer s line, to a company field from the (E) Inventory Master screen, or to a stock class. The Low-Stock Wholesaler Cycle Report The Low-Stock Wholesaler Cycle Report suggests an order amount for each inventory item based on sales history and cycle weeks (the length of time between purchase orders). Note: This report uses extended item history information. Therefore, this report can only be accurate for items in the stock classes that you keep extended history on. 27

28 The Low-Stock Wholesaler Cycle Report contains the following information: Inventory location, item number, and company Description, unit of measure, and replacement cost Last year s sales Year-to-date sales Previous three months sales Current month s sales Hits Amount needed based only on sales history Quantity on-order, on-hand, and on backorder Suggested order amount Warehouse Flow To calculate a suggested order quantity to meet future sales, the system uses a formula that uses the past three months sales. Month-to-date sales are not used. The formula weights the most recent past month and takes into account quantities currently on-order, on-hand, and backordered. The number of weeks in your order cycle must be specified. The default number of cycle weeks is 10. The suggested order amount is calculated for each item according to the following formula: ([M1 X 2] + M2 + M3 / 17) x CW) - OO - OH + BO = Suggested Order Quantity Where: M1 = Month One CW = Cycle Weeks M2 = Month Two OH = On-Hand M3 = Month Three OO = On-Order 17 = Average Weeks BO = Backordered in Four Months This formula produces two projections. The Need column in the report shows the projected total sales for an item over the time period specified by the cycle weeks. The Order column shows the suggested order amount, based on the projected total sales and the current on-hand, on-order, and backordered quantities. Note: There are other low stock reports on the system, such as the 13 Month Low Stock Report. For more information, see the Customer Support Center. The Min/Max Low-Stock Report If you are using Mins and Maxes to help stock your store, you can print a low-stock report to show what items are at or below your minimum and what you need to order to bring the stock level to the maximum. You can set up Mins and Maxes for each item in the Inventory Usage Record of the (E) screen, or you can make mass changes using the (+E) Special Item screen. Min is the lowest amount of stock that you need on the shelves. Max is the greatest quantity of stock that you need on the shelf. A low-stock report using Mins and Maxes only looks at items in your item file that have been given Mins and Maxes. Then, the system compares the on-hand, on-order, and backordered quantities to determine 28

29 if you will equal or go below your minimum. If so, it recommends that you order enough to reach your maximum. The Low-Stock Min/Max Report contains the following information: Inventory department, item number, and company Description, unit of measure, and replacement cost Last year s sales Year-to-date sales Minimum and maximum quantity to have on-hand Hits Amount needed based on maximum amount Quantity on order, on-hand, and on backorder Suggested order amount. The Exceptions Report This report lists every change made to your tickets in order entry. This report is a valuable part of your audit trail, and can be a useful management tool. If you have problems after changing or deleting tickets, you may be able to determine what happened by examining this report. The Exceptions Report includes information for each exception that meets the limits you set. Each line of the report will display the invoice number, followed by the order-taker. The next two columns show the customer and item keys (the customer key is the customer s account number; the item key is the item number and company). Each line also includes when the exception occurred, and a message describing the exception. An important field in this report is Quantities Changed exceptions, which indicates that the backordered or shipped amounts were changed. The number of Quantities Changed exceptions should be minimal. The Receipts Report The Receipts Report lists the items in the RECEIPTS file. If you print this report immediately after you flush backorders, it will show you what will be released to update on-hand quantities. This report will display the item s inventory location number, item number, company, and vendor. The next columns are P/O number, quantity amount received, and quantity amount left in the RECEIPTS file after flushing. Finally, the report prints the invoice number, unit price, bin location, and unit of measure. You can also use this report to see your allocated quantities. The Usage Report The Usage Report gives a detailed sales history for each item. You can use it to help determine which items you should stock and which items you should stop stocking. This report can also list items that have not sold. This report contains the following information: Item number Company Description Selling unit of measure 29

30 Buying unit of measure Wholesaler s cost of the item Last year s sales of this item Year-to-date sales of this item Sales for each of the last three months Month-to-date sales On-hand quantity On-order quantity Last date this item was sold. A column called L-Purch will appear on the report; this column is reserved for future use. Warehouse Flow The Overstock Report The Overstock Report indicates which items you may have overstocked, based on sales quantities and onhand accounts. These reports are an important tool for replenishing stock items. It shows what items you should return to your vendors, based on sales quantities and on-hand amounts. These reports are sorted by the item number and company, and contain the following information: Item number, company, and description Selling and buying unit of measure Average cost of the item Last year s sales of this item Year-to-date sales of this item Sales from two and three months ago Sales from last month Month-to-date sales Hits (number of times the item has been sold) Quantity needed, which is the projected sales quantity On-order, on-hand, and backordered quantities Suggested order quantity on the Low-Stock Report, or overstock quantity on the Overstock Report Total dollar amount and total weight. The Inventory Extended Dollars Report The Inventory Extended Dollars Report shows you how much money you have invested in inventory. It shows the value of the merchandise you have on-hand, as well as how much you can anticipate paying for items on order. If you print this report periodically and limit it to non-stocked items, it will show you how much you have invested in inventory that should become a possible stocked item. 30

31 The default sorts for this report are item number and company. The report contains the following information: Item number Company Description Selling unit of measure Base price for the selling unit of measure On-hand quantity and dollar value Backordered quantity and dollar value On-order quantity and dollar value Allocated quantity and dollar value Total in-house inventory value for each department and for the entire report Total values for on-hand, backordered, on-order, and allocated quantities. The Sales Recap by Manufacturer s Cost or Actual Cost The Sales Analysis Recap Report summarizes sales information on salespersons and order-takers for a specific month. You can sort the report by manufacturer s cost or actual cost to show your gross margins by inventory department, based on the manufacturer s cost or the actual cost. You can compare these reports to see the difference between the margin you actually made and the margin you would have made if all goods had been in stock. This report includes the salesman numbers and names that you need to print. For each salesman, the report also includes: Number of lines Dollar amount of the month s sales Total sales margin dollar amount Gross profit margin percentage Year-to-date gross profit margin percentage The second page of the report lists total sales, margin, and gross profit percentage for each department, and the total sales, margin, and gross profit percentage for all the departments. Using the Picking Manifest No matter what your needs are for processing in-stock items, the new picking manifest can enhance and simplify this process for you by automatically creating a complete, concise list of items that need to be pulled from the shelves so orders can be filled. The following instructions give a brief overview of using the picking manifest. 1. Set up the parameters for the new picking manifest in the (L8P) Picking Manifest Parameters screen. In this screen, shown in the figure on the following page, you set the limits and sorts that you will use most often. These settings will be the defaults when you are creating a picking manifest. 31

32 Using the options in this screen, you can: Set the manifest to automatically print after it is created. Set the Marrying Report to automatically print when the manifest is built. You would use this option if you normally pull and marry the items at the same time. Specify the default selector and printer for the manifest, shipping labels, and marrying report. Set the shipping labels to automatically print for bulk items when building the picking manifest. Specify whether you need the picking manifest to be marked as complete before the system will allow you to final verify. Include or exclude furniture orders on the manifest, or limit to furniture orders only. Include or exclude will call orders on the manifest, or limit to will call orders only. Include or exclude serialized orders on the manifest, or limit to serialized orders only. Set the manifest to include completely shipped orders only. Set the number of line items to include on a picking manifest. Set the number of orders to include on a picking manifest. Choose the order you need the system to search for and build the manifest. You can select ticket number, route number, or customer account number. Limit the picking manifest by route, salesperson, customer, inventory location, general ledger location, pick ticket status, or department. 2. Build the manifest. To do this, you go to the (TM) screen, select the [A] Build New Manifest function, and enter the order-writer number of the person that will be pulling the order. If all of the settings in this screen (the default settings from the (L8P) screen) are correct, you press Enter and the system builds the manifest. The manifest is built at a status Make any changes to the manifest using the [M] O/E Change Tickets on Manifest function in the (TM) screen. For example, you would this function if you need to change the shipped quantity on a ticket. 32

33 4. Mark the manifest as complete. To do this, go to the (TM) screen and select the [B] Complete Manifest function. This moves the manifest to a status Final verify the tickets. Go to the (TM) screen and select the [C] Final Verify Tickets on Manifest function. You can mark any tickets with exceptions that you need to verify line-by-line. 6. Print the manifest. You can print a single manifest, or you can batch print multiple manifests. (If the print option is set in the (L8P) screen, the manifest will automatically print when it is built.) 7. To print a single manifest, go to the (TM) screen and select the [D] Print a Picking Manifest function. To batch print, go to the (TM) screen and select the [F] Batch Print Picking Tickets function. Shipping Manifest The shipping manifest application is a powerful and flexible tool that can be used to make the delivery process more efficient. Flow of Shipping Manifest 1. Create the manifests in the (TS) Shipping Manifest screen. 2. When you finish creating manifests, you can make any necessary adjustments to the manifests in the (TS) screen. Use the [T] Transfer action code to move invoices from one manifest to another. If you need to add an invoice to a manifest, you can do so with the [A] Add action code. The [C] Change action code lets you change information in an existing manifest. This can be done by specifying the manifest number or the invoice number. This action code also lets you delete individual invoices from a manifest. You can use the [D] Delete action code to delete an entire shipping manifest. However, you cannot delete a manifest that has previously been released. The [I] Inquire action code is used to view existing shipping manifests. You can view entire manifests or specific invoices on a manifest. 33

34 3. When you re ready to deliver your orders, release your manifests using the [R] Release & Print action code. You can correct delivery information when releasing manifests, including the driver s name and departure time. After you release manifests, delivery information is attached to each manifest. By inquiring on an invoice in the Order Entry window, you can quickly view its delivery information. 4. When the driver returns, you can perform a returning release, which lets you correct any delivery information that was incorrect. For example, you could indicate that the driver was unable to deliver a particular package. (Before you can perform a returning release, you must enable this feature by checking the Do Returning Release box in the Delivery Manifest General Parameters window.) The returning release, if done, completes the delivery process. Understanding the Methods for Creating Shipping Manifests After you have created invoices in the Order Entry window, you can create shipping manifests through the (TS) Shipping Manifest screen. There are several methods for creating shipping manifests: Using Manual Entry with Entry Order: You can use this method to enter or scan individual invoices for a single route. When you use this method, invoices will appear on the manifest in the order you enter them. Therefore, you must determine the order in which your invoices will be delivered before using this method. A sequence number will be assigned to each invoice in increments of ten (beginning with ten). Using Manual Entry With Sort Order: This method is used to manually enter or scan individual invoices for a single route. The manifest prints the invoice numbers in sort order, according to the sort code specified in the Sort Order field in the Manifest Record of the (AQ) Customer Service Quality screen. Using List Entry With Sort Order: Use this method to manually enter or scan individual invoices for any number of routes. Each route will have a separate manifest. Using Batch with Sort Order: This method lets you automatically create shipping manifests, eliminating the need to manually enter invoices for each manifest. When you create manifests by batch, you must first specify which file the manifests will be created from (P-MASTER, JOUR-S, or a sales journal file). You then set limits to indicate which invoices will be included. The system groups these invoices by route, and creates a unique manifest for each route. The invoices on each manifest will be sorted using the Sort Order field in the (AQ) screen. Creating a Shipping Manifest Using List Entry With Sort Order This method lets you manually enter or scan individual invoices for any number of routes. Each route will have a separate manifest. Within each manifest, invoices will be sorted according to the order specified in the Sort Order field in the Manifest Record of the (AQ) Customer Service Quality screen. Use the following instructions to create a manifest using list entry with sort order: 1. Go to the (TS) screen and select the [A] Add action code. 2. At the prompt Append to Existing Manifest, press Enter or type N. The system displays the available methods, along with the Manifest Creation Method prompt. 3. To create the manifest using list entry with sort order, type C. The cursor moves to the Invoice # field. 4. Enter the number of the first invoice to place on the manifest. This can be done manually or by scanning the invoice bar code. The system displays the information attached to this invoice in the upper portion of the screen. 34

35 5. At the Correct Ticket prompt, specify whether this is the correct invoice. Warehouse Flow 6. When you specify that the displayed invoice is the correct one, the cursor moves to the CTN field. At this point, you can enter the number of cartons and envelopes. If the displayed number of carton and envelopes are correct, and you do not need to change the sort code, customer s route, or shipping address, press Enter. Go to Step 12. To change the number of cartons on the invoice, enter the number. If you are using DDMSP- LUS, you can enter up to four characters in this field. If you are using DDMS, you can enter up to two characters in this field. Press Tab. If there are no cartons on this invoice, press the Space to zero out the field. To accept the default number of cartons, press Tab. 7. In the Env field, enter the number of envelopes on the invoice and press Tab. If you are using DDM- SPLUS, you can enter up to four characters in this field. If you are using DDMS, you can enter up to two characters in this field. If there are no envelopes on this invoice, press Tab to move past this field. 8. If you do not need to change the sort code, customer s route, or shipping address, press Enter and go to Step When the cursor moves to the Sort field, you have two options. You can change or accept the sort, or you can change the customer s route. If you need to change the customer s route, press Esc when the cursor is in the Sort field. The cursor moves to the Route field. Enter the new route for the customer and press Tab. The cursor returns to the Sort field. If you need to change the sort, enter the correct sort for the manifest. The sort determines the order in which delivery will be made. The Sort field defaults to the sort order set in the (AQ) screen. If you do not need to change the sort or the customer s route, press Tab. 10. At the Change Customer Shipto Address prompt, specify whether to change the shipping address. Enter your response according to the following: If you do not need to change the shipping address, type N. Go to Step 12. If you need to make changes to the shipping address, type Y. The cursor moves to the Name field, so you can enter the correct information. Press Tab to move to each field you need to change. You can change the name, suite, street, state, and zip code. When you finish making changes, press Enter. 11. At the Update Customer with New Shipto prompt, specify whether you need update the customer s record with the changes you made to the shipping address. 12. The cursor moves to the Invoice # field on the next line. Enter the next invoice number you need to add to this manifest. To change any information for an invoice you previously entered on this manifest, enter the invoice number again. At the Correct Ticket prompt, type Y. At the Invoice on List Change prompt, type Y. The cursor moves to the Ctn field, so that you can make any changes. Use the instructions in Step 6 through Step

36 13. When you finish adding invoices to the manifest, press Esc with the cursor in the Invoice # field. The system will display the manifest totals, which include the manifest number, route code, route description, number of stops, invoices, and credits. The End of Batch Adding Any Key To Continue message will also appear. 14. To return to the action code field, press Enter. Using Vendor Credit Returns It can often be difficult to perform credit returns to vendors, largely because you do not have a good way to track the history of your vendor return items. You don t know which items need to be returned and to which vendors they can be returned to. Also, you don t always have a way to find out where to return the item for the highest credit. In this situation, you can easily lose money. This is why we developed this feature. It helps automate the vendor return process. You can print a report showing all of the items you have returned to vendors. Using this report, you can easily find the original purchase order, the P/O on which you paid the highest price, and other information. You can then easily put your vendor return items on a type of purchase order (debit memo) which you send to your vendor for a credit. This debit memo tracks your item, from the original purchase order number to recording the return merchandise authorization number that is issued by the vendor. After you fax the debit memo to the vendor, the vendor issues a credit for the items. You can then post the credit to A/P using the Debit Memo Entry tab. Flow of Vendor Credit Returns Before using the vendor credit returns feature, you should understand how it fits into your order entry and purchasing flow. This part of the handout briefly explains the steps involved in using vendor credit returns. For more information, see the ECi Customer Support Center or consult your online help. 1. Set up your vendor credit return parameters in the (LG0), (LF), and (LF3) screens. (LG0): Set the Keep all Pick Fields in JOUR-S field to Y. (LF): Enter a debit memo number in the Next Debit Memo # field. (LF3): Enter information in the Additional Return Reasons, Wholesaler, Manufacturer, P/O Receive Age Days, and Maximum Lines Per Vendor fields. Set sort preferences in the Vendor Sort Preference and P/O Sort Order fields. In the Allow Purging Debit Memos Without Posting to A/P field, specify when to purge the debit memo. 2. Set up the Vendor Window. 2.1 Select the vendor. 2.2 Click the Remit To/Settings tab. 2.3 Click the Recv Days box and enter the maximum number of days this vendor accepts returns without charging you a restocking fee. 2.4 Click the Max lines field and specify the maximum number of lines per purchase order that the system displays for this vendor on the Debit Memo Report. This number can be between 0 and Click. 3. Create a purchase order for an item. 36

37 4. Sell this item to a customer. Later, the customer returns the item to you for some reason. For example, the item could be damaged or the wrong color. If the item is damaged, you do not need to return it to stock, but you need to return it to a vendor that you bought it from. 5. To return the item to a vendor, create a credit return in the Global Credit Data dialog box. 5.1 Create the credit return as you normally would. The Item Detail tab reopens. 5.2 Click the Disposition box. 5.3 Click the Disposition drop-down menu and select Vendor. 5.4 Finish the credit return as you normally would. When you invoice the item, the item s credit return information automatically goes into a new debit memo file called P-DEBMEMO. 6. After you create vendor credit returns, print the Debit Memo Report in the text-based (SRM) Debit Memo Report screen. Although this is an optional report, it shows you what items need to be returned, which vendors you can return them to, and on what purchase orders. The purchase order you bought the item on is flagged with an asterisk (*). The report lists items by vendor, along with the following information for each item: vendor number and name, purchase order number, acknowledgment number, date, quantity, unit of measure, and cost. After you run the Debit Memo Report, the P-DEBMEMO file is updated with the suggested vendor and purchase order for returns. 7. After you print the report, you can create the debit memo for the vendor you need to return items to. To do this, you use the [M] Deb action code in the (F) Purchase Order Entry screen. When you build the debit memo, you specify the items that you need to return to the vendor. You can build the debit memo manually, by including items individually, or you can let the system build it automatically from items in the P-DEBMEMO file. You can limit the items that can be included by vendor, item company, stock class, and inventory department. You can also specify information about the purchase order you need to use to return the item. This purchase order is known as the original P/O. When you include the item on the debit memo, the system suggests that you use the purchase order on which you originally bought the item as the original P/O. If you do not choose this as the original P/O, you can choose one from a list of purchase orders on which you also bought the item. 8. After you build the debit memo, you can fax or call it in to the vendor to request a credit for the items. The vendor may issue you an RMA (returned merchandise authorization) number. The vendor then issues you a credit memo. You can match the credit memo against the debit memo to ensure that the vendor credited you for the correct number of items at the correct prices. 9. At this point, you can use the [C] Chg action code in the (F) screen to enter the RMA number or other information about the debit memo. You may also now need to return the items to the vendor. 10. To finish the vendor credit return process, post the debit memo to A/P in the Accounts Payable Post P/O tab. Use either the debit memo number or the RMA number. This process receives the debit memo automatically. Since you purge the debit memo from JOUR-PO as part of your day-end procedures, you will have a historical record of the items that have been credited. As with other information in the system, you can create a report in the Report Writer application containing this debit memo information. However, you cannot set sorts or limits. Using Multiple Bins The multiple bin feature helps you manage bulk items that are in multiple bins. With this feature, you can keep track of the quantities and where the items are located in your warehouse. 37

38 1. Set up the Multiple Bin Pulling Codes parameter in the (LE1) screen. In these fields, enter a range of user-defined codes that specify which bins the system should pull from first, which bins to pull from last, and which bins to never pull from. When you set up the multiple bin database, you assign a user-defined code to each of the bins in the Code field in the Multiple Bins dialog box. When you place an order, the system will determine which bin to pull from according to the code that is assigned to the bin and the range of codes that are entered in these fields. 2. Set the Split To A Separate Line Partial Backorder parameter in the (LG0) Order Entry Parameter screen. If you are going to set up multiple bins, ECi recommends that you set the parameter Split To A Separate Line Partial Backorders field in the (LG0) screen to Y. 3. Set up the multiple bin database in the Multiple Bins dialog box. See the heading Setting Up Multiple Bins. Each bin number that you plan to use must be set up on your system. 4. Set up the item. This involves the following two steps: Type Y in the Multiple Bin box in the Item Settings tab for any item that uses multiple bins. Assign the bin numbers to the item in the Add Item Aux Record dialog box in the Item History window. 5. When receiving in the Purchase Order Entry window, the system prompts you to specify which bins to place the items in. You can place all of the order quantity for an item in one bin or multiple bins. Once a quantity is completely depleted from a bin, the bin is no longer assigned to the item. You can reassign this bin when receiving. Setting Up Multiple Bins Each bin number that you are going to use must be set up on your system. The multiple bin database is set up in the Multiple Bins dialog box. Use the following instructions to set up bins on your system: 1. From the Master Menu, click Databases and select Item Bin, or type Ctrl + B. The Multiple Bins dialog box opens. 38

39 2. Click the Location box and type the inventory location number where to add to the bin and click Find. 3. Click. The Add a Bin dialog box opens. 4. Click the Bin box and enter the bin number. You can enter up to four characters in this box. Note: If you are authorized for eight-digit bins, you can use up to eight characters for the bin number. Contact ECi Sales for more information. 5. Click the Description box and enter a description for this bin. 6. Click the Code box and enter a one-character code for this bin. This is a user-defined code that determines the order in which merchandise is pulled. 7. Click the Type drop-down menu and select Multiple Bin. 8. Click OK to add the bin. 9. Click. 39