Cycle Counting & Physical Inventory

Transcription

1 Cycle Counting & Physical Inventory

2 Overview Physical inventory is an auditing technique to verify the accuracy of inventory quantities on the books by actually counting items in a warehouse. Minxware provides two different methods: the freeze all transactions and count everything in stock method and the cycle count method. Both are described in this chapter. WARNING: Because of the system-wide influence of cycle counting and physical inventory, it is recommended that the maintenance and utility programs of this module be password protected, and access to them restricted. Physical Inventory Method Considerations The nature of your business, the volume of inventory, and staffing levels determine the method you will use. This decision should be made by your company managers, accountants, and auditors. Cycle Counting vs. Annual Physical Inventory Cycle counting verifies inventory items on a cyclic schedule rather than once a year. A specified portion of the total inventory is counted each day or week. Each item in inventory is counted on a regular, defined basis (more frequently for high-value or fast-moving items and less frequently for low-value or slow-moving items). This type of inventory requires no system or production downtime. A small staff can perform it, as only a few parts are counted each day or week. WIP Physical Inventory Methods Physical inventory of work in process can be complicated and time consuming. You can count work in process as finished assemblies, semi-finished assemblies, or as components. Counting finished assemblies is the simplest method and counting components the most time-consuming. The section on WIP inventory provides suggestions on minimizing the counting required. Part Tracking Tracked parts are handled differently than non-tracked parts during cycle counting or physical inventories. Therefore, personnel who perform the cycle counts and physical inventories should be familiar with the part tracking system and with the tracking type(s) and method(s) used. Minxware provides tracking of lot and/or serial numbers on component parts, subassemblies, and final assemblies. The part tracking system maintains linkages of components and sub-assemblies to final assemblies. You determine the type of tracking and when it should be performed. See the Part Tracking chapter in this volume for more information on choosing tracking types and methods and implementing a part tracking system. 124 Using Minxware

3 Setup Before you perform a physical inventory or cycle count, you must have the inventory control system set up. See the Inventory Control chapter in Getting Started with Minxware for detailed information about setting up your inventory control system. Control File Variables The following control file variables are used for cycle counting, physical inventory and WIP inventory. Set or verify these variables before you begin. CFV Description 7 A percent break for ABC code 8 B percent break for ABC code 9 Number of days to count A parts 10 Number of days to count B parts 11 Number of days to count C parts 12 Next tag number (for stockroom inventory) 25 Only one inventory account (Y/N) 27 Monetary variance threshold tag report 28 % Qty variance threshold tag report 50 Single warehouse 51 Single warehouse number 65 Next tag number ( for WIP inventory) 75 Must enter all WIP count tags 81 Allow parts to be added in BM,1 83 Add new locations only in IN,3 See the System Utilities chapter of Getting Started with Minxware for information on setting Control File Variables. Enter GL Accounts Because a primary purpose of the physical inventory process is to establish an accurate value for stock and finished goods inventory, it is necessary to have inventory accounts set up in the general ledger. General ledger accounts are entered using Chart of Accounts Maintenance (GL,1). See the General Ledger chapter of Getting Started with Minxware for information about setting up the chart of accounts. Using Minxware 125

4 Enter Warehouses Minxware requires you to have at least one warehouse before you can set up locations for parts. Warehouse codes are entered using Warehouse Maintenance (IN,9). See the Inventory Control chapter of Getting Started with Minxware for information about entering warehouses. Enter Part Information and Part Costs Use Part Maintenance (IN,1) to enter part and cost information, which must be available before you begin a cycle count or physical inventory. The following two codes are used in the physical inventory and cycle counting process, and should be established before you begin. See the Inventory Control chapter of Getting Started with Minxware for information about entering parts, costs, class codes and ABC codes. Class Codes User-defined class codes are used to group inventory parts for reporting and inventory purposes. The Physical Inventory module gives you the option of counting parts by class code. A recommendation for companies who serial track at inventory movement for their parts, is to code all serialized components with a different class code from the non-tracked components. This will allow you would allow you to print the tags for the non-tracked parts before freezing your class codes. Then, just before taking the Physical Inventory, you could run the tags for the serialized parts by running them for that particular class code. If you do not want to classify parts in this way, you can assign a class code of none. However, since inventory is frozen for physical inventory by class code, this will freeze your entire inventory, which may not be desirable. ABC Codes Cycle count frequency is determined by a part s ABC code. You can assign ABC codes when entering parts with Part Maintenance (IN,1) or you can use the ABC Analysis Report/Update Utility (IN,RP,8) to assign the codes based on nettable quantity on-hand, year-to-date issues, or MRP gross requirements. Enter Locations Assigning ABC codes is discussed in the Cycle Counting section, later in this manual. If you are performing a cycle count, you must have locations set up (Location Maintenance (IN,3) before you begin. The cycle count process does not allow you to add locations when entering counts. Locations can be added during a physical inventory, but the process is complicated. It is best to have all required locations entered before beginning the physical inventory process. 126 Using Minxware

5 See the Inventory Control chapter of Getting Started with Minxware for information on entering locations. Reports and Inquiries The following reports and inquiries provide information on the set up information entered: Control File Variables Control File Report (SU,RP,3) Warehouses Warehouse Report (IN,RP,2) Parts Part Inquiry (IN,2) Part Inquiry by Description (IN,13) Parts Catalog (By Description) (IN,RP,5) Part Master Report (IN,RP,12) Locations Location Inquiry (IN,4) Serial Number Location Inquiry (IN,20) Inventory Location Report (IN,RP,10) Using Minxware 127

6 Application Cycle Counting This section discusses the three major inventory methods: cycle counting, physical inventory, and work in process inventory. The cycle count process is a simple one. The following chart details the steps required to prepare for cycle counting and to complete one cycle count. Figure 14 Cycle Counting Process Assign ABC Codes (IN,1) or (IN,RP,8) Print Cycle Count Reports Cycle Count Report (IN,RP,13) Bar Coded Cycle Count Report (IN,RP,27) Initialize Cycle Count Dates IN,UT,3 Count Parts Enter Cycle Counts (IN,TR,2) 128 Using Minxware

7 Prepare for Cycle Counting Before you begin cycle counting for the first time; you must assign ABC codes and initialize the cycle count days. Once established, you will need to do this again only when adding new parts, or when re-initializing count days (after a physical inventory, for example). Assign ABC Codes CAUTION: You must have Control File Variables 7, 8, 9, 10 and 11 properly set to assign ABC codes. Since cycle count frequency is determined by the parts ABC codes; all parts to be counted must have a code assigned. If you did not assign ABC codes when entering parts, you can do this now by selecting ABC Analysis Report (IN,RP,8). The ABC code assigned is based on nettable quantity on-hand, year-to-date issues, or MRP gross requirements. NOTE: Individual ABC codes and cycle count dates will NOT be updated if the code contains an asterisk in the second position (for example, A* ). See the Inventory chapter of Getting Started with Minxware for additional information. 1. Select ABC Analysis Report (IN,RP,8). 2. Indicate the printer destination for the ABC report. 3. Enter the starting and ending part numbers to update or (A)ll parts. 4. Enter the starting and ending source codes to update or (A)ll source codes. 5. Indicate whether to update the part records processed with the newly established ABC code. If no, only the report is produced showing you the ABC code that would have been assigned. 6. Indicate how you want the ABC codes established: a. nettable quantity on hand b. year-to-date issues c. MRP gross requirements. NOTE: To assign ABC codes based on MRP gross requirements, you should have recently completed an MRP Regeneration (MR,1). 7. (A)ccept your entries to produce the ABC report and update the codes (if you chose to do so). Initialize Cycle Days Once ABC codes are assigned, you can initialize cycle count dates. Do this only when first setting up the system, or after a physical inventory. After a physical inventory, all count dates for ABC parts are reset for parts counted in the physical inventory. The initialization divides the parts equally among the count days and randomly sorts the parts count dates based on their ABC codes. This results in an equal number of A, B, and C Using Minxware 129

8 type parts being scheduled for counting each day. After the initialization is done, the location cycle count dates for each part is reset. If cycle count dates are not initialized, cycle counting is based on any existing cycle count dates in the location records. When setting up part locations, if you entered cycle count dates that you want to retain, do NOT select Initialize Cycle Count Dates (IN,UT,3), unless the ABC code contains an asterisk as the second character. NOTE: Individual ABC codes and cycle count dates are NOT updated if the code contains an asterisk in the second position (for example, A* ). See the Inventory chapte r of Getting Started with Minxware for additional information. 1. Shut down Minxware using Minx Shut Down (SU,2). 2. Select Initialize Cycle Count Dates (IN,UT,3). 3. After reading the warning message, indicate whether you want to continue. CAUTION: This selection does NOT contain a final acceptance prompt (Accept, Edit, or Reject). After indicating cycle count options the program begins processing immediately. 4. Indicate whether to use the same cycle count date for all locations of an individual part, or press [ESC] to exit the program. If yes, you will cycle count all locations for a part on the same day. If no, all locations for an individual part will be randomly scheduled (not on the same day). 5. If you entered yes to the previous prompt, indicate whether to cycle count all locations of an individual part in each (W)arehouse or in (A)ll warehouses. If you select warehouse, all locations within EACH warehouse will be scheduled for cycle counting on the same date. Locations in other warehouses will be scheduled on a different date. If you select all, all locations in all warehouses will be scheduled for cycle counting on the same date. After you answer this prompt, cycle count dates are automatically initialized. The number of locations processed for each ABC code is displayed. Record Cycle Counts Print one of the following reports to use to record your cycle counts: Cycle Count Report (IN,RP,13) Bar Coded Cycle Count Report (IN,RP,27). Typically these reports are run each day (usually first thing in the morning) and counts are entered before anyone starts transacting inventory. 130 Using Minxware

9 Enter Cycle Counts Enter the quantities after all the parts on the cycle count report have been counted. 1. Select Cycle Count Transaction (IN,TR,2). 2. Enter the transaction date of the cycle count. This is the transaction date used for any general ledger adjustments to inventory. 3. Enter the part number you are cycle counting. If the part is a single location part, the warehouse and location are displayed. 4. Enter the warehouse and location. CAUTION: You cannot add new locations during a cycle count. 5. For parts that are lot or serial tracked (inventory movement or checkpoint), indicate whether to (A)dd a new lot/serial number or (C)ount existing lot/serial numbers in stock. 6. If you (A)dd, enter the new lot or serial number. a. For new lot numbers, enter the quantity to add. b. For new serial numbers, indicate whether to count the new serial number now. If yes, the new serial number is added. c. Indicate whether to add more lot/serial numbers or press [RETURN] to exit. Serial Tracked (inventory movement or checkpoint) 7. For serial tracked parts, indicate whether the serial number is still in stock. If yes, the serial number is retained (counted). If no, the serial number is removed from the inventory file. 8. Continue to verify all serial numbers for the serial tracked parts. 9. Press [RETURN] when you have finished verifying serial numbers for this part. Not Tracked, Lot or Serial Tracked (late as possible) 10. For not tracked, lot tracked or serial tracked (late as possible) parts, enter the cycle count quantity. 11. Press [RETURN] when you have finished entering counts for this part. Using Minxware 131

10 The following screen is displayed: This screen shows the new location quantity and the monetary adjustment (if any) to the inventory value (displayed in system currency). A general ledger transaction number is displayed if adjustments are posted to the inventory accounts. 12. Continue entering part numbers until the cycle count is complete. Physical Inventory A physical inventory is one performed usually once a year where all stocked parts and finished assemblies stored in all warehouses are counted at the same time. The steps required to perform the inventory are shown in the figure on the next page. 132 Using Minxware

11 Figure 15 Physical Inventory Process Update Location Information Print Parts with No or Zero Qty Location Report (IN,RP,11) Add Locations (IN,3) Create Tags (PI,1) Print Tags (PI,3) Freeze Class Codes (PI,2) Print Count Sheets (PI,2) Count/Recount Parts Record/Edit Physical Counts (PI,TR,1) Reconcile Physical Inventory Update Quantities & Part Variances (PI,UT,1) PI Tag Report (PI,RP,1) Untagged Location Report (PI,RP,6) PI Reconciliation (PI,RP,2) Using Minxware 133

12 Prepare for Physical Inventory Before beginning the inventory you should update location information and then create tags for all parts to be counted. You can create and print tags well in advance of freezing the inventory. It is common to count parts using two-part count tags. The bottom copy has a sticky back and is attached to the part s bin or location. The top copy is torn off after the count and used to enter the counts into Minx. Using this method makes it easier to visually track which parts have been counted. Update Location Information Use the following two selections to identify any locations with zero quantities and to add any new locations that will be required to complete the inventory count. 1. Select Parts with No or Zero Qty Locations (IN,RP,11). 2. Use the report to eliminate any unnecessary locations using IN,UT,10. This will decrease the number of tags to be printed. 3. Select Add Locations (IN,3). 4. Add any locations that will be needed. Although you can add locations during the physical inventory, this should be avoided except in emergencies since the process is cumbersome (class codes are frozen). See the Inventory Control chapter of Getting Started with Minxware for information about adding locations. Create Tags When you create the inventory physical count tags, the system will create a record in the Physical Data File (IN4PHYD) that includes the location quantity on hand. This value is then updated when you freeze your class code. This information provides the basis for comparison when the actual count is completed. If you add inventory locations AFTER creating the tags, the new information will NOT be included in the Physical Data File. You must select Create Tags For Untagged Locations (PI,TR,4), to create tags for the new locations. If you fail to create a new tag, there will be no initial book quantity to compare the actual count to, resulting in a100% variance for the new quantities. Print PI,RP,6 to verify all locations were tagged. To ensure assignment of consecutive tag numbers and count sheets, only one person can create tags at a time. 1. Select Create Inventory Physical Count Tags (PI,1). 2. Indicate whether to (D)isplay class code status or create the (T)ags. 134 Using Minxware

13 If you display class codes, the physical count status of all class codes in the physical inventory process is displayed. When you finish reviewing the codes, press [RETURN] to create tags. 3. Enter the starting and ending class code (or (A)ll class codes) for which to create tags. 4. Enter the starting tag number or press [RETURN] to use the default (CFV# 12 Next tag number ). 5. Indicate whether to create the tags sorted by (L)ocation or (P)art number, depending on how the stockroom(s) is set up. NOTE: Sorting tags by Location or Part is important as tags will be numbered depending on this sort. Numbering correctly will make entering counts easier later. When tags are created by Location, they will print by Warehouse, Location then Part#. When tags are created by Part, they will print by Part#, Warehouse, Location. 6. (A)ccept the options to generate the tags. Tags are created with the following information for each part number: warehouse, location number, lot or serial number, part number, description, S/UM, and tag number. Print Tags You can now print the tags for those class codes that are ready to be counted. This step can be skipped if you plan to use Count Sheets instead of Tags. NOTE: Tags can be printed or reprinted up until the time the class codes are frozen for counting. 1. Select Print Inventory Physical Count Tags (PI,3). 2. Indicate whether to (D)isplay Class Code Status or Print (T)ags. Using Minxware 135

14 3. If you print tags, enter the printer destination. 4. Enter the starting and ending (or (A)ll) tag numbers to print. 5. Indicate whether to reprint any previously printed tags. 6. Enter the number of extra tags to print (if any). 7. Enter the starting tag number of the extra tag(s). 8. Indicate whether to print an alignment tag. You can print as many alignment tags as necessary. When the forms are aligned, enter no and the forms will be printed. A sample tag is shown on the next page. Figure 16 Sample Tag TAG NUMBER DATE WHSE LOCATION CLASS QUANTITY COUNTED BY /16/00 main 1b3c hdwr Tag Dimensions: Width : 8.5 inches (perforation to perforation) 7.5 inches for Print Area Height: 3.5 inches PART NUMBER DESCRIPTION S/UM LOT/SERIAL Static Protector EA 24QR1362c Using Minxware

15 NOTE: Most customers use 2-part Tags, these can be ordered from Yankee Systems Freeze Class Codes and Print Count Sheets Freezing class codes insures that no transactions are processed against parts being counted until after the physical count is completed. Use count sheets to record the tags as location counts are taken. The physical inventory book quantity (set when tags are created) is updated with the current inventory quantity on hand if: tags were created, but not yet printed tags were printed, but the class code has not yet been frozen. Once the part's class code is frozen, you cannot change or update the physical inventory book quantity. 1. Select Freeze Inventory Class Codes/Print Count Sheets (PI,2). 2. Indicate whether to (D)isplay class code status or (F)reeze class codes. CAUTION: Transactions for parts within frozen class codes are severely restricted. Notify those affected well in advance of the date you plan to freeze class codes. 3. Indicate whether to print the count sheets. NOTE: If you are using actual tags, you normally do not need count sheets. If yes, enter the printer destination. 4. Enter the starting and ending class code (or all ) to freeze for counting. Using Minxware 137

16 5. Indicate whether to reprint the count sheets (if they were previously printed). 6. Sort the count sheets by (L)ocation or (P)art number. A sample count sheet is shown on the next page. Once the selected class codes are frozen, and the count sheets printed, you can count inventory. Continue to the next section when you are ready to record the counts. 7. Run an Inventory Valuation report (IN,RP,1) or (IN,RP,16). This is optional. CAUTION: Stop making inventory transactions at this time. 138 Using Minxware

17 Figure 17 Sample Count Sheet Using Minxware 139

18 Record Physical Counts You can record physical counts as the tags are returned. Enter them in batches or all at once. If a tag has already been entered, you can enter a recount quantity. It is easiest to record counts in Minx if the tags have been arranged in tag number order, as the program will default to the next tag number. When entering blank tags, the tag number must be entered manually. CAUTION: Once the tag has been counted (a count date is entered), the part is released for inventory transactions. If you want to prevent transactions, you would need to put Minx into Shutdown Mode using SU,2, until all counts are recorded and the reconciliation is complete. This is an unnecessary step as Minx has recorded the quantity of the location when it was frozen and new transactions will not affect this process. 1. Select Record Physical Counts/Count Log (PI,TR,1). 2. Indicate whether to print the count log, which reports each tag entry. If yes, enter the printer destination for the report. The following screen is displayed: 3. Enter the tag number to record. 4. Indicate whether the tag is (M)issing or (V)oided or press [RETURN] if it is neither. a. A missing tag can be updated later by indicating that it was found. b. A voided tag prevents any further activity against it. Use this only when you know that the tag was destroyed (such as during printer problems). A replacement tag should be printed, or you can use an extra tag (if you created any). 5. Enter the date the part was counted. 140 Using Minxware

19 6. Enter the date the part was recounted, if the tag was previously entered. 7. Enter the counted quantity. If the part is serial number tracked, you can only enter a quantity of 0 or Enter the recounted quantity, if the tag was previously entered. 9. Enter the initials of the person that completed the count or recount (not required) 10. Indicate whether to (E)dit the information or press [RETURN] to accept it. If you accept, the next tag number in the series is displayed. 11. When the last tag is processed or you press [ESC] to stop entering tags, the count log is printed (if you opted to print it). See the next page for a sample of the Count Log. Figure 18 Count Log Monetary variance is shown in system currency - US Dollars in this example. Using Minxware 141

20 Reconcile Physical Inventory Use the following reports to help with the reconciliation process. Physical Inventory Tag Report (PI,RP,1) Untagged Locations Report (PI,RP,6) Physical Inventory Reconciliation (PI,RP,2) Which can be sorted by Variance Amount or Part Number Physical Inventory Value Report (PI,RP,7) Recount/Edit Physical Counts If data entry or count errors are found during the reconciliation, you can enter recount quantities as needed. 1. Select Record Physical Counts/Count Log (PI,TR,1). 2. Indicate whether to print the count log, which reports each tag entry. 3. Enter the tag number to recount, or enter a blank tag number. 4. If the tag has already been counted, indicate whether to enter a recount. 5. If yes, enter the recount date and recount quantity. CAUTION: You SHOULD back up your system before proceeding. 142 Using Minxware

21 Update Quantities and Post Variances (PI,UT,1) After a physical count is complete, you must update the inventory records with the new count quantity, and post any variances to the General Ledger. NOTE: It is HIGHLY recommended that you first use this selection in NON-UPDATE mode. This will produce a ' what-if' analysis report, but NOT update inventory or post to the general ledger. 1. Select Update Inventory Quantities and Post Variances (PI,UT,1). 2. Indicate whether to (D)isplay class code status or (U)pdate quantities. 3. If you select update, enter the printer destination for the rollover report. 4. Enter the starting and ending (or (A)ll) class codes to update. 5. Indicate whether to use the book quantity for all uncounted tags. If you enter no, uncounted tags are not processed, and the affected class code frozen until the tags are completed. 6. Indicate whether to update inventory, and the GL transaction date. 7. (A)ccept the update options. 8. When Minxware completes processing the selected class codes, press [RETURN] to generate the report. 9. NOTE: You may wish to rerun IN,RP,1 or IN,RP,16 for comparison at this point. Using Minxware 143

22 PI,UT,1 - Physical Inventory Roll-Over Report Quality Corporation, Div of Pivotpoint Report: piut1 Requested By: judi Database: 515 Fri Mar 24 14:54: PHYSICAL INVENTORY ROLLOVER REPORT PAGE: 1 INVENTORY ACCOUNT NUMBER: GENERAL LEDGER TRANSACTION NUMBER: TAG DATE / BOOK LAST COUNTED COUNT DOLLAR NMBR STATUS WHSE LOCATION LOT/SERIAL NUMBER QUANTITY QUANTITY VARIANCE UNIT COST VARIANCE PART NUMBER: 125 S/UM: EA CLASS CODE: E Voided 1 done none POSITIVE VARIANCE TOTAL: NEGATIVE VARIANCE TOTAL: TOTAL VARIANCE: INVENTORY ACCOUNT NUMBER: GENERAL LEDGER TRANSACTION NUMBER: TAG DATE / BOOK LAST COUNTED COUNT DOLLAR NMBR STATUS WHSE LOCATION LOT/SERIAL NUMBER QUANTITY QUANTITY VARIANCE UNIT COST VARIANCE PART NUMBER: 125 S/UM: EA CLASS CODE: E /24/ none /24/00 1 j77236 none /24/00 1 rich none /24/ none /24/00 main 1 none /24/00 main 2 none /24/00 used used loctn none PART NUMBER: 126 S/UM: EA CLASS CODE: E /24/ none /24/ none POSITIVE VARIANCE TOTAL: NEGATIVE VARIANCE TOTAL: TOTAL VARIANCE: Using Minxware

23 WIP Inventory A work in process inventory is performed on all assemblies in your production area. The steps required to perform the inventory are shown in the figure on the next page. Using Minxware 145

24 Figure 19 Work in Process Inventory Print WIP Preparation Worksheets (PI,RP,3) Create WIP Physical Count Tags (PI,4) Print Tags Print WIP Component/ Blank Tags (PI,5) Print Finished Assembly Tags (PI,6) Count/Recount Items Record/Edit Physical C ounts Record WIP Component/Finished Assembly/Blank Tags (PI,TR,2) Record Semi- Finished Assembly/ Labor Count Tags (PI,TR,3) Reconcile WIP Inventory WIP Tag Report (PI,RP,4) WIP Work Order Reconciliation Report (PI,RP,5) Update WIP Quantities & Part Variances (PI,UT,2) Delete Blank WIP Tags (PI,UT,3) 146 Using Minxware

25 Prepare for WIP Inventory Before you start the WIP inventory you must produce worksheets and tags. NOTE: To minimize component counting, it is recommended that you close for General Ledger completed work orders, using SF,TR,12 and delete any unkitted work orders before you begin the WIP inventory. This will cut down on the number of worksheets you will have to go through. Print Worksheets WIP preparation worksheets help you determine which work orders are in process and the type of tags you will need. Worksheets are printed with WIP Preparation Worksheets (PI,RP,3). NOTE: It also helps in preparing these worksheets to have copies of SF,RP,1 and SF,RP,3 printed in Work Order Number order. For Closed and Unkitted work orders, the required quantities of each tag and worksheet will be 0. For kitted or in-process work orders, look up the status in SF 2 or refer to the SF,RP,1 and SF,RP,3 reports. Decide on the appropriate number of tags/worksheets for each work order. Deciding on Component Tags vs. Finished Assembly Tags vs. Semi-Finished Assembly Worksheets Component Tags Component Tags are the most straight-forward means of counting WIP. You will receive a tag for each component on the work order. Depending on the control file settings, you may have to count each tag. Regardless, they should all be collected and reconciled. Component Tags are especially helpful for companies where components for work orders may not be in the same location. Component Tags should be used on Rework and Service Work Orders. Unentered tags will be counted at the Issued Quantity. Finished Assembly Tags Finished Assembly Tags are the easiest, but most unlikely, way of counting WIP. You must enter the total quantity of complete sets of components without exception that are in WIP. The sets of components can be completed assemblies or complete sets of parts in any stage of completion. For example, if you have a work order open for 5 assemblies, to count without a variance you would enter a count of 5. If you counted 6 you would change the quantities issued to be ample supply to make one additional assembly. Use these tags for work orders where you know all the components are there and no other components have been issued to the work order. Also, this method is helpful Using Minxware 147

26 and quick for work orders that are "almost complete but were not able to be completed to stock and closed out. Semi-Finished Assembly Worksheets Semi-Finished worksheets are best used when a work order is in basically one general area. To decide how many sheets, determine the number of assemblies the work order was generated for. If the work order is for quantity one, you will run one worksheet. If the work order is for more than one, you have a choice of running one sheet and counting the total number of components from all sets of the assembly or running one sheet for each assembly. Worksheets ask you to either Include components that you find or to count Short components which are missing from what should be there. To count short, you need 1 worksheet per unit. If the work order is for more than one and you only run one worksheet, you MUST I)include and count all tags because uncounted tags will assume the QPA for only ONE assembly. Using individual sheets for each assembly is actually a true way to count WIP. Using just one worksheet for more than one assembly is tricking minx. If you know your product and can visually detect that x components are short, you can quickly enter in a short amount on the worksheet for the missing component. All others will assume the QPA or 0, depending how you answer. If you do not know your product well enough to visually detect, you should either a) be using the alternate method, I)nclude, where you will actually count components or b) use Component Tags instead of semi-finished worksheets. Create WIP Physical Count Tags When you create the count tags, the selected work orders are frozen, and you cannot process any transactions until the count is complete. Once created, you can print the tags and worksheets separately. Before you begin, verify CFV# 65 ( Next tag number ) for the next tag number that will be used. Change this number (if required) to coincide with the next preprinted tag number you will use. Also verify CFV# 75 ( Must enter all WIP count tags ). Set the flag to 'yes' if ALL created tags must contain a count entry, even if it is zero. CAUTION: If CFV# 75 is set to yes, ALL work orders must be updated before any are released (unfrozen) from the WIP physical count. If set to no, individual work orders are released as they are updated. 1. Select Create WIP Physical Count Tags (PI,4). To ensure assignment of consecutive tag numbers, only one user can use this program at a time. 148 Using Minxware

27 2. Enter the starting and ending work order number, (or (A)ll work orders). Repeat this step until you have correctly created the needed tags for each work order depending on how it is being counted (Component, Finished Assembly or Semi-Finished Assembly) 3. Enter the number of pre-printed component tags. These tags are created in sets. One set will print 1 tag for EACH component on the assembly. Two sets will print 2 tags for EACH component on the assembly, and so on. 4. Enter the number of pre-printed finished assembly tags (one tag per assembly). 5. Enter the number of semi-finished assembly worksheets (one sheet for each partially finished assembly). 6. Enter the starting tag number or press [RETURN] to use the default from the control file (if available). 7. If you accept the entry options, the affected work orders are frozen for counting. Print Tags and Worksheets Use the following when you are ready to print the tags component and assembly) or the worksheet semi-finished assembly), depending on your requirements. Print Component/ Blank Tags Use these tags to record counts for components issued to the shop floor or at an operation that have not yet been consumed in the manufacturing process. 1. Select Print WIP Component Tags/Blank Tags (PI,5). 2. Enter the printer destination for the tags. 3. Indicate whether to sort tags by (T)ag number or by (W)ork Order. 4. Depending on what you chose, enter the starting and ending tag number or work order number. 5. Indicate whether to reprint any tags previously printed. 6. Enter the number of blank (extra) tags to print. 7. Enter the starting tag number to use for the blank tags. 8. Indicate whether to print an alignment tag. You can print as many alignment tags as necessary. When the forms are aligned enter no, and the tags will be printed. Using Minxware 149

28 Print Finished Assembly Tags Use these tags to record counts for completed assemblies located on the shop floor. 1. Select Print WIP Finished Assembly Tags (PI,6). 2. Enter the printer destination. 3. Indicate whether to sort tags by (T)ag number or (W)ork Order. 4. Enter the starting and ending tag number or work order number (depending on what you chose). 5. Indicate whether to reprint any tags that were previously printed. 6. Indicate whether to print an alignment tag. You can print as many alignment tags as necessary. When the forms are aligned enter no, and the tags will be printed. Print Semi-Finished Worksheets Use worksheets to record counts and labor percentage completed at an operation, for all semi-finished assemblies. 1. Select Print WIP Partially Completed Assembly Worksheets (PI,7). 2. Enter the printer destination. 3. Enter the starting and ending semi-finished work order (or (A)ll work orders) for which to print a worksheet. 4. (A)ccept the options to print the worksheets. 150 Using Minxware

29 Record Tag and Worksheet Counts After the count is complete, enter the information from each tag or worksheet you created. Component, Finished Assembly, and Blank Tags You will use one selection to enter the counts (or recounts) for components, finished assemblies, and blank tags. 1. Select Record WIP Component/Finished Assembly/Blank Tag Counts (PI,TR,2). 2. Indicate whether to print the count log, which reports each tag entry. If yes, enter the printer destination for the report. The following screen is displayed: Using Minxware 151

30 3. Enter the tag number to record. NOTE: If the tag has already been counted, you can enter recount information. 4. Indicate whether the tag is (M)issing or (V)oided, or press [RETURN] if it is neither. a. A missing tag can be updated later by indicating that it was found. b. A voided tag prevents any further activity against it. Use this only when you know that the tag was destroyed (such as during printer problems). A replacement tag should be printed, or you can use an extra tag (if you created any). 5. Enter the date the part was counted. 6. If the tag was previously entered, enter the date the part was recounted. 7. Enter the counted quantity. 8. If the part was previously entered, enter the recounted quantity. 9. Enter the initials of the person that completed the count or recount. 10. Indicate whether to (E)dit the information or press [RETURN] to accept it. If you accept, the next tag number in the series is displayed. 11. When the last tag is processed or you press [ESC] to stop entering tags, the count log is printed (if you opted to print it). Semi-Finished Assembly/Labor Tag Counts Enter semi-finished counts by indicating whether assembly components are short or included. You can also enter labor percentage complete at an operation, which is used for reference only. 1. Select Record WIP Semi-Finished Assembly/Labor Tag Counts (PI,TR,3). 2. Enter the work order number. 3. Enter the starting tag number from the semi-finished worksheet. 152 Using Minxware

31 NOTE: If the work order/tag has already been counted, you can enter recount information. The following screen is displayed: All tag numbers associated with the worksheet, beginning with the starting tag you indicated, are displayed, including a labor inventory tag. 4. Indicate whether to void any of the tags on this worksheet. 5. Select the tag number for which to enter counts. 6. Enter the date counted. Enter Component Tag Information 7. Indicate whether the count is a short or included quantity of the assembly. Short Included The work order is short by the count quantity you will enter. The work order includes the count quantity you will enter. NOTE: The quantity, whether short or included, should be based on the quantity issued to this work order. 8. Enter the count quantity (either short or included). A warning message is displayed if the quantity is greater than the work order required quantity. However, you can continue. 9. Enter the initials of the person who counted the component. Using Minxware 153

32 10. Enter a location (this is for reference only). 11. Indicate (E)dit if you need to change any of the information or press [RETURN] to accept it. Enter Labor Tag Information (FOR REFERENCE ONLY) 1. Select the inventory labor tag number. 2. Enter the operation number if routings are used. 3. Enter the percentage of this operation that is complete if routings are used. Otherwise, enter the percentage of labor completed for this assembly. 4. Indicate (E)dit if you need to change any of the information or press [RETURN] to accept it. Continue selecting tags for this work order until you have completed all entries. 154 Using Minxware

33 Reconcile WIP Inventory Use the following reports to help with the reconciliation process. WIP Tag Report (PI,RP,4) WIP Work Order Reconciliation Report (PI,RP,5). Recount/Edit WIP Counts If data entry or count errors are found during the reconciliation, you can enter recount quantities, as needed. Recount Component, Finished Assembly or Blank Tags 1. Select Record WIP Component/Finished Assembly/Blank Tag Counts (PI,TR,2). 2. Indicate whether to print the count log, which reports each tag entry. If yes, enter the printer destination for the report. 3. Enter the tag number to recount, or enter a blank tag number. 4. If the tag has already been counted, indicate whether to enter a recount. 5. If yes, enter the recount date and recount quantity. 6. Press [RETURN] to accept the recount. Recount Semi-Finished Tags 1. Select Record WIP Semi-Finished Assembly/Labor Tag Counts (PI,TR,3). 2. Enter the work order number. 3. Enter the starting tag number from the semi-finished worksheet. 4. Indicate whether to void any of the tag numbers. 5. Indicate that you want to enter a recount. 6. Enter the recount date and recount quantity. 7. Press [RETURN] to accept the recount. Using Minxware 155

34 Update WIP Quantities and Post Variances After all counts have been reconciled, you must update Shop Floor material records and post any variances to the General Ledger. CAUTION: You SHOULD back up your system before proceeding. Shop Floor material records are updated with the corrected count quantities and any changes to the material value (standard cost * count variance), depending on whether the adjustment was for components, assemblies, or partially completed assemblies. A General Ledger posting is also created for any WIP count adjustments. 1. Select Update WIP Quantities and Post Variances (PI,UT,2). 2. Enter the printer destination for the update report. The following screen is displayed: 3. Enter the starting and ending work order (or (A)ll work orders). 4. Indicate whether to update the shop floor material file. NOTE: It is HIGHLY recommended that you first use this selection in NON-UPDATE mode (enter no to the update question). This will produce a 'what-if' analysis report, but NOT update shop floor material or post to the general ledger. 5. Enter the GL transaction date to use If the fiscal period or the module is closed to posting, you cannot continue with the update. 6. (A)ccept the update options. 156 Using Minxware The rollover report is created when processing is complete. A sample is shown on the next page.

35 If CFV# 75 (Must enter all WIP count tags ) is set to yes, ALL tags must be updated before any work orders are released for normal processing. If CFV #75 is set to no, affected work orders are released as each tag is updated. Delete Blank WIP Tags If you have unused blank WIP tags, you can delete them after updating shop floor and posting variances. 1. Shut down Minxware using Minx Shut Down (SU,2) 2. Select Delete Blank WIP Tags (PI,UT,3). 3. Enter the starting and ending tag number or (A)ll. 4. (A)ccept the options to delete the blank tags. Using Minxware 157

36 Troubleshooting Unfreeze Class Codes/Abort Physical Inventory If you start a physical inventory or freeze a class code by mistake, you can use Update Inventory Quantities and Post Variances (PI,UT,1) to stop the process. To do this, no counts can exist for any of the tags. If you are unfreezing a class code, no counts can exist for any tags within that class code. CAUTION: If counts do exist, inventory will be updated, and any general ledger adjustments will be posted. 1. Select Update Inventory Quantities and Post Variances (PI,UT,1). 2. Indicate whether to (D)isplay class code status or (U)pdate quantities. 3. Enter the printer destination for the rollover report. 4. Enter the starting and ending (or (A)ll) class codes to update. If you are aborting a physical inventory, select all class codes. 5. Enter yes to use the book quantity for all uncounted tags. 6. Indicate whether to update inventory. NOTE: Although you are correcting a mistake (either unfreezing a class code or aborting a physical inventory), it is HIGHLY recommended that you first select NOT to update inventory. There may be physical inventory records you are not aware of, that could cause unwanted results when inventory is updated. 7. Enter the GL transaction date. 8. (A)ccept the update options. The affected class codes will be unfrozen and no change in inventory value will result. 158 Using Minxware