PHYSICAL INVENTORY MaddenCo, Inc.

Please understand that MaddenCo, Inc. has expended substantial sums in developing and maintaining its software, systems and related materials, and as a result, it has and will continue to have substantial proprietary interest and valuable trade secrets therein. Also understand that MaddenCo, Inc. s software, systems, related materials and the "ideas" represented by software, as well as the physical materials, are valuable trade secrets and are strictly confidential material, and important, and that its confidentiality gravely affects the successful conduct of the business of MaddenCo, Inc. 2

Table of contents PHYSICAL INVENTORY OVERVIEW... 5 PHYSICAL INVENTORY... 6 CREATE TO BE INVENTORIED FILE... 6 SELECT STORE NUMBER... 7 SELECT SORT SEQUENCE... 8 PRODUCT SELECTION... 9 NAME THE TO BE INVENTORIED FILE... 10 CAPTURE SYSTEM COUNTS... 11 Enter Store... 12 Select To Be Inventoried File... 12 PRINT COUNT SHEETS... 14 Select Store Number... 14 Input Message Line... 14 Select Sort Sequence... 15 Product Selection... 16 Actual Cost and Quantity Options... 17 Select Printer... 18 INPUT COUNTS... 21 Select Store Number... 21 Select File Name... 21 Input Counts Screen Display... 22 Start at Selects... 22 Serial Number Count Input... 23 Toggle Between Incremental and Total Quantity... 24 PRINT EDIT REGISTER... 25 Select Store Number... 25 Input Message Line... 25 File Selection... 26 Product Selection... 26 Variances... 27 Printed Report... 28 CREATE ADJUSTMENT FILE... 30 Select Store Number... 30 Input Message Line... 30 File Selection... 31 Transaction Date and General Ledger Distribution... 31 Select a Printer... 32 Printing... 32 ACCOUNTING FOR PRODUCTS ON OPEN ORDERS AND RECEIVERS... 34 RECOMMENDED STEPS WHEN TAKING A PHYSICAL INVENTORY... 36 OTHER PHYSICAL INVENTORY MENU OPTIONS... 37 SCAN INVENTORY USING A PORTABLE HAND-HELD DEVICE... 38 3

PRODUCT BARCODE MAINTENANCE... 38 SCANNING BARCODE AT PHYSICAL INVENTORY TIME... 40 Sample Retread Finished Goods Label... 42 ERROR AND WARNING MESSAGES YOU MAY ENCOUNTER... 43 Specific Errors... 44 APPLYING SCANNED INVENTORY... 46 Customer retread count detail... 48 INVENTORY ADJUSTMENTS... 50 CREATE A MANUAL ADJUSTMENT... 51 Adjusting an Inventory Item... 52 Inventory adjustment quantity... 53 WORK WITH INVENTORY ADJUSTMENT DETAIL... 54 Input a Dollar Adjustment... 55 Serial Numbered Item Adjustment... 56 Serial number cost... 57 Core Product Adjustment... 58 Retread Inventory Adjustment... 58 PRINTING AN ADJUSTMENT REGISTER... 61 Sample Inventory Adjustment Register... 62 INVENTORY ADJUSTMENT COST CALCULATIONS... 62 INVENTORY ADJUSTMENT GL POSTING COST CALCULATIONS... 63 TIRE DEALER SYSTEM G/L PHYSICAL INVENTORY CONTROL RECORDS... 64 TIRE DEALER SYSTEM G/L INVENTORY ADJUSTMENT CONTROL RECORDS... 64 4

Physical Inventory Overview The MaddenCo Physical Inventory feature is designed to simplify the process of taking your inventory counts and calculating and keying in the inventory adjustment differences. By having you build a file with items you wish to count and capturing the on hands at that very moment you are counting, this feature also reduces the urgency to have all of your count values immediately keyed into the system. The saying Timing is everything is the most important point to keep in mind as you implement this functionality. Planning a schedule for your inventory and performing the appropriate steps described in this manual, in the proper order, will help eliminate the challenges involved in taking an accurate inventory. As a guide, please refer to the Recommended Steps When Taking a Physical Inventory section of this document for a list of steps that should be taken. The steps involved are listed in the order they should occur. To help further improve the accuracy of your inventory, MaddenCo has added advanced functionality that now allows inventory counts to be taken using the latest wireless computer technologies. These technologies include the use of Portable Wireless hand-held scanners to scan barcodes on inventory items in place of manually counting and writing quantities on paper count sheets. Taking inventory can be a paperless process, which will eliminate a lot of errors that occur whenever you are moving a lot of paperwork around the office. With many vendors now shipping products with barcode labels on them, the ability to implement scanning has become that much easier. In addition, taking inventories with a scanner has been shown to increase not only the accuracy of your inventories but also saves a tremendous amount of time in the process. In fact, MaddenCo customers (of all sizes) who have started initially with limited deployments of inventory scanning have, after seeing the results, quickly expanded their implementations throughout their organizations. To get started using the Physical Inventory module, we suggest reviewing this manual and getting all the necessary control records setup that allow the module to be used the way you handle taking your physical inventory counts. As with all MaddenCo functionality, you should find that the Physical Inventory Module is also very flexible in order to fit the way you do business. You will start the process by deciding which products you will be counting. Keep in mind that you can choose to inventory all products or limit your counts by product vendor, type, or class. You can also single out groups of products to inventory by many of the other fields you see in your product maintenance records. After deciding which products to inventory, you will want to schedule your counts so they occur after a regular end of day update is run. Remember, on hand as of last update counts (which most people use as the ones to reconcile) are updated when an end of day update occurs. So again, as noted, you will want to start your physical inventory process fresh right after a daily update. When the end of day update is complete, your next step is to create what we call To Be Inventoried Files. These are the files that will contain the products that you wish to count and the captured system on hand quantities that you will match your counts up against. Let s begin our tour of Physical Inventory by guiding you through each of the screens involved starting with the initial step of creating your To Be Inventoried Files. 5

Physical Inventory The Physical Count Menu is located on the Tire Dealer System Inventory Menu. Create To Be Inventoried File Select the Physical Count Menu to create a To Be Inventoried File. 6

Select Store Number Our standard store selection screen prompting for the store number you plan to count. If you have multiple stores/locations you will want to create a file for each individual store. 7

Select Sort Sequence You can lock your stores into only one sort option by setting control record INPHSORT to a sort value from 01 to 30. By doing this, the above screen will not be displayed and your To Be Inventoried File will be created using the sort option entered as the value of this control record. 8

Product Selection Limiting down to the products you are going to count. Note more user fields are available to use in selecting. 9

Name the To Be Inventoried File You will need to name each inventory file. We suggest that you develop a consistent method of naming your inventory files. A combination of store and count date is a suggested scheme. If you wish to only create an inventory file for products with non-zero units on hand, answer the above prompt with a Y. This would add only items with either a positive or negative on hand value. If this prompt is answered N then a file is created for all products in the system for the selected sort options from the previous page. If you are planning to only include items in your To Be Inventoried Files that have non-zero units on hand, it is suggested that you also consider setting up control records PHYSALPN and PHYSALPR. PHYSALPN when set to a value of Y will also scan through the sales history file and in addition to items with non-zero units on hand will also include in both your To Be Inventoried Files and your count sheet printouts items that have had sales activity within the time frame specified by control record PHYSALPR. The value of control record PHYSALPR will be a two digit number representing the number of months to scan back in your sales history file for activity. A value of 06 or sales activity in the past six months is recommended. 10

Capture System Counts The Capture System Counts option on the Physical Count Menu will capture current on hand quantities and use those values as your System Counts that your physical count will be compare against to calculate your adjustments. This step should be taken immediately after generating your To Be Inventoried Files. Both steps should occur after running an end of day update. 11

Enter Store Select To Be Inventoried File Enter To Be Inventoried File name or use the File Name Inquiry function to prompt for list of created To Be Inventoried Files. 12

Select the file name for which you are capturing system counts. Repeat this option for each To Be Inventoried File that you created for your inventory. 13

Print Count Sheets Select Store Number Input Message Line This is an optional message that will print at the top of each page of the count sheets. 14

Select Sort Sequence Select the sort option to set the order of how products will print and be grouped on your count sheets. Note: You will want to print your count sheets in the same order that you chose when you created the To Be Inventoried File. 15

Product Selection Limiting down to the products you are going to count. Should match inventory file. Note: You must enter leading zeros for Product Class and Vendor. Additional product user fields are available. 16

Actual Cost and Quantity Options Designate if you want actual cost to print on the report. Also, choose whether you want only products with non-zero inventory units on hand to print on the count sheets. 17

Select Printer The default printer is highlighted above the printer input. If a printer is not enetered, this is where the report will print. The default printer for reports will come from the printer control key 1411 or 8x11, depending on which report is being printed. Printer control keys can be assigned by user, workstation or store. Enter the number of copies to print, or leave as the default of one copy. If Place report on Hold is answered Y, the report will be spooled to the printer id but put on hold where it can be displayed or released. 18

If control record PERSTORE contains a Y, a separate count sheet will print for each store. This is only for sort options 4, 5, 6, 12 and 18. If control record PGBRKCLS is answered Y, the report will page break by product class if you have selected a sort by product class. If control record PGBRKVND is answered Y, the report will page break by vendor if you have selected a sort by vendor. If both control records are set to a Y, the sort order must include both vendor and class for a page break to occur. If you chose to print only products with non-zero inventory and control record PHYSALYN is answered Y, the sales file is checked for activity and control record PHYSALPR contains a two digit number of how many previous months back to check for sales activity. This will print items without inventory that have had recent sales activity. If control record PHYSALPR is not on file or has 00, then sales history will not be checked. If control record PHYPRWRH contains a Y, the warehouse location and/or alternate warehouse location will print on the report. If control record PHYCPSER is answered Y, serial number products will be printed if their available inventory quantity is greater than 0. Control key TRACSER# should contain a Y in order for serial 19

number processing to be used. If using the Serial# Tracking feature, the product description for each individual serial number can now be input by setting control record SER#DESC to Y. Control record PHYINVOH indicates which inventory quantity will print on the count sheets. If answered with an M, the memo quantity is printed, if answered with a U, the on hand as of last nights update is printed. If the control record does not exist or is not set to a U or an M, neither quantity will print on the report. If control record PHYPRODO is answered Y, there will be 4 lines printed after the product number for writing in counts, otherwise only one line will print. If answered Y, no on hand quantities will be printed and control record PHYINVOH will not be read. If you would like 2 lines to print for counts instead of one line, set the value of control key PHYPR2L ot Y. Control key PHYINVOH should be set to N since the product inventory quantity cannot be printed on the report due to spacing. You will still get 4 lines for counts if you have PHYPRODO set to Y. To print a barcode representing the product on the printed count sheet, set control record PRTBCCNS to a Y. You can also set the number of blanks lines to print before and after the barcode to control spacing. Set control key PRTBCLBF to the number of blank lines before the barcode and control record PRTBCLAF to the number of blank lines to print after the barcode. The report can also be emailed. 20

Input Counts After counts are taken, you will begin inputting your counts. This is the Input Counts option from the Physical Count Menu. Select Store Number Enter the store number. This is the standard store screen input as displayed above. Select File Name Next, input or use the Find function and select the To Be Inventoried File name you will be working on. 21

Input Counts Screen Display The physical count input screen is now displayed. Assuming that you ran the count sheets in the same order that you created the file, this should be displayed in the exact same order. Each time you press enter, the last item you keyed will automatically be displayed at the top of the screen and your cursor will be positioned at the next item available for entry. If you would like to redisplay the previous items that you have keyed, use the Top of File function and you will be repositioned to the first record in your count file. If you posted your counts from a scanner, you would see the quantities that were applied in the Total Count column. You can modify these counts if needed. If you see an * under the S Column Heading, this is an indication that you are tracking serial numbers for this product. These types of products will need to be reconciled during inventory by serial number. Position your cursor on the product and use the Serial Cnt function to view or add a count for individual serial numbers on hand for this product. The Add Product function allows you to add a product number that you have counted that does not exist in your count file. Start at Selects Product Number If you key in a product number on this line, the cursor will then be positioned on the line to key in a quantity for this product number if it exists in the file. If the item is not in the count file, the cursor will be positioned at the count line for the product number that is listed first on the current screen. Location If you track consignment inventory in our system, then it may be useful to position to a specific location. 22

Serial Number Count Input Products with an * under the S Column Heading on the Input Counts work panel indicate that you are tracking serial numbers for this product. Serial number tracking is setup in product maintenance. Place your cursor on the product and use the Serial Cnt function to view or add a count for individual serial numbers on hand for this product. Control key PHYSERYN must be set to a Y in order to do this. On this screen you will key in a count of 1 if you have the serial number in stock and a quantity of 0 if you do not. If you cannot locate a serial number in this list, you can enter it using the Add Serial function. When you return to the previous screen, the count quantity will reflect any changes you made on the serial number quantity. 23

Toggle Between Incremental and Total Quantity If your tires are spread out in your warehouse in multiple places, this option can be useful. If you print multiple copies of your count sheets and have a quantity of 8 for part number XYZ on one count sheet and on another count sheet have a count of 24 for the same product XYZ, you may not want to manually go through and add all the counts together to enter one count on the system. By using the Toggle Incremental/Total function, you can key in 8 and then come back and key in 24, and the system will add these together for you. You must be very careful when using this function. When you key in a quantity and press enter, the quantity will go back to 0 and the quantity you keyed will not be displayed. If you press use the function again to return to Total Count, you will then see the total number keyed in for that product. The screen below is in incremental mode. Notice all quantities are 0 and the Column Heading says Incremental Count 24

Print Edit Register When your counts have all been entered, you are ready to print an edit register. Take Print Edit Register option from the Physical Count Menu. Select Store Number Enter the store number. This is the standard store screen input as displayed above. Input Message Line 25

File Selection Enter your file name or use the File Name Inquiry function to select from a list of available To Be Inventoried Files. Product Selection 26

If control key PHYINSEL is set to a Y, you will see our standard select screen when running the report. This will give you the capability to just print a partial report instead of all products in the to be inventoried file each time. An additional Product User field screen is also available. Variances 27

Choose whether you only want to show products with variances on the report. Most users will answer this with a Y to only show items with a variance. Answer Y if you will summarize by product. The work order detail and serial number detail will not print when answered Y. Printed Report This report will print products in the To Be Inventoried File and will show the physical count, captured or current system count, and any variance. The report can also be emailed if this feature has been setup for the user. If control record INVPHYC$ is answered Y, the F.E.T., unit cost and the value of the difference will be printed on the report. The item cost printed on the report is based on the value of control record GLCOST and which cost is posted to G/L. Please be aware that control key GLCOST also affects other modules. If the Capture System Counts option has been ran for this file, then the on-hand quantity that was captured will be used to compare counts. If control record INVAMEMO is answered with a Y, then the inventory memo field from the product file will be used for the comparison. Otherwise, the current on hand count in the product file will be used to compute the variance. This control key is used in both the Create Inventory file and Capture System Counts and should not be changed between processes. If control record PRTSYSCT is set to an N, the system count will not print on the edit register. If control record PHYSALYN is answered Y, the sales file is checked for activity of zero inventory product numbers and control record PHYSALPR contains a two digit number of how many periods of sales to check for activity. This will print items without inventory on hand that have had sales activity during that time. If control record PHYSALPR is not on file or has 00, then the sales file will not be read. If you are tracking products by serial number and control record PHYSERYN is answered with a value of Y, the serial numbers and their physical count will print on the edit. The product warehouse location and alternate location will print on a line under each product when control key PHYRGLOC is set to Y. If control record PHYCHSRT is set to a Y, the edit register can be printed in a different sort order than the one used when originally creating the To Be Inventoried File. This report will print subtotals by class and page break when the PGBRKCLS control record is answered with a Y and a sort option by class is chosen. The report will print subtotals by vendor and page break if control record PGBRKVND has a value of Y and a sort option by vendor is chosen. If both keys are set to a Y and a sort order that includes both vendor and class has been chosen, subtotals will be written whenever one or both change. Printing The Physical Counts Edit Register prints 80 characters (8 x 11 size paper) unless control key INVPHYC$ is set to Y. When set to Y, the FET and cost variance is printed making the report expand to 132 characters (14 x 11 size paper). You can assign an alternate printer control key using PHYERFM. If this control key is on file and contains data, use of this printer control key overrides the use of any other printer control key for this report. The 28

printer control name can only be 4 characters and must be set up as a printer control key and contain the printer information. You may input any form name you wish, however the size of the form does depend on whether you are printing extra information based on control key INVPHYC$. Example: Key User/Workstation Store Data PHYERFM 000 INVT Note: You can copy an existing Printer Control Key to get a formatted entry screen. Max characters per line (page width) should be set to 132 when printing on 14 x 11 size paper. 29

Create Adjustment File When you are comfortable with all the input counts, you are ready to select the Create Adjustment File menu option to automatically create inventory adjustments to correct your on hand system inventory. Select Store Number Enter the store number. This is the standard store screen input as displayed above. Input Message Line 30

File Selection Enter the file name or use the File Name Inquiry function to prompt for list of available To Be Inventoried Files. Transaction Date and General Ledger Distribution When creating the adjustment file in Physical Inventory, the transaction date and year/period can now be protected and not changed, if control record PIPRDTYP is set to Y. 31

Select a Printer You have now created an inventory adjustment for any items that had a variance; these adjustments will be applied during the next end of day update. An asterisk (*) will print for any product whose system count was adjusted by a selected ticket or receiver. Also a list of POS tickets and receivers are printed at the end of the report. Inventory adjustments created from a physical count can now be protected from being changed, deleted, held or released from the inventory adjustments input option if control record INAJPHYP is answered Y. Note: The inventory memo field will take all adjustments into account immediately. Printing The Adjustments Edit Register prints 80 characters (8 x 11 size paper) unless control key INVPHYC$ is set to Y. When set to Y, the FET and cost variance is printed making the report expand to 132 characters (14 x 11 size paper). You can assign an alternate printer control key using PHYCAFM. If this control key is on file and contains data, use of this printer control key overrides the use of any other printer control key for this report. The printer control name can only be 4 characters and must be set up as a printer control key and contain the printer information. You may input any form name you wish, however the size of the form does depend on whether you are printing extra information based on control key INVPHYC$. 32

Example: Key User/Workstation Store Data PHYCAFM 000 CNTS Note: You can copy an existing Printer Control Key to get a formatted entry screen. Max characters per line (page width) should be set to 132 when printing on 14 x 11 size paper. 33

Accounting for Products on Open Orders and Receivers One big challenge when taking a Physical Inventory is trying to track counts of items that have been delivered to customers or other stores on open Point of Sale work orders and/or are on Inventory Receivers that have not been updated. Making this task even more difficult is the fact that the same item can appear across several different open work orders and receivers. As you should be aware, product on-hand units are not adjusted until Point of Sale work orders are closed as invoices and updated. Inventory receivers don t affect on hand inventory until they are updated as well. In the past, to account for product delivered on work orders that have not been updated, most users would have to print a Point of Sale Edit Register showing a list of each open work order and the products and quantities they contain. The same would be done with held or open inventory receivers; a receiving register would be printed out showing items and quantities on receivers not yet updated. Taking this information, you would then have to manually calculate totals for each item represented on Point of Sale Work Orders and add these to your physical count through the input count function. You would do the same again for outstanding inventory receivers. That task has now been simplified through the menu option Select W/O-Rcv to Adj Sys Cnt that will allow you to select open Point of Sale Work Orders and Outstanding Receivers to consider when matching your Physical Counts with the System On-hand Counts. Enter your store number and the To Be Inventoried File name that will have its system on-hand accounts adjusted by products on work orders and receivers. 34

A list of open POS work orders and open receivers are displayed. If you have more than one store and use inter-company transfers you will also see your open orders from other stores. The Show only Selected or Not selected prompt at the top of the screen will allow you to toggle between displaying all documents (leave field blank), just the already selected documents (answer field with an S) or those not yet selected (answer with an N). Use the Select option for each open POS work order, receiver and store order document whose item quantities you want considered when matching your physical count with your captured system on-hand counts. Once items are selected, these calculated quantities representing item units on your open documents will automatically adjust your To Be Inventoried Files captured system on-hand counts. You will not have to to manually add up quantities of items on open work orders and receivers and having to adjust these manually on your input counts. Note: The timing of when you do your selecting of open POS work orders, receivers and store orders is very important to the accuracy of your overall inventory. For help, refer to the Recommended Steps When Taking a Physical Inventory below. 35

Recommended Steps When Taking a Physical Inventory 1. Run an End of Day Update. 2. Create your To Be Inventoried Files (option 1 off of the Tire Dealer Physical Count Menu). 3. Immediately after the To Be Inventoried Files are created, run the Capture System Counts function (option 20 off of the Tire Dealer Physical Count Menu) for each To Be Inventoried File. 4. Use the Select Work Orders/Receivers to Adjust System Counts function (option 18 off of the Tire Dealer Physical Count Menu) and select from the displayed list of open Work Orders, Receivers, and store orders the documents that need to be considered to adjust the captured system count that will be used to compare with your physical count. 5. If taking manual counts, print your count sheets (option 3 off of the Tire Dealer Physical Count Menu) making sure they are in the same exact order as the corresponding To Be Inventoried Files. 6. Take manual counts and/or Physical Counts using a portable wireless handheld scanner. 7. If you are using handheld scanners to capture your physical counts, take option 8 to apply the scanned counts to the inventory file. 8. If you are not scanning, manually type in your unit counts directly from your count sheets using Input Counts (option 3 off of the Tire Dealer Physical Count Menu). 9. If not using the Select Work Orders/Receivers to Adjust System Counts function (option 18 off of the Tire Dealer Physical Count Menu), then print both a work order edit register and receiving register to use to calculate item counts to use to manually adjust your input physical inventory counts. 10. When input is all complete, print an edit register (option 4 off of the Tire Dealer Physical Count Menu) for each To Be Inventoried File to review the potential adjustments that will be created once you update your counts. Now is the time to catch errors before taking the final Create Adjustments option. 11. If errors are found while reviewing Edit Registers, use Input Counts (option 3 off of the Tire Dealer Physical Count Menu) again to correct errors and rerun edit registers to double check for accuracy. 12. When edit registers look correct, run Option 5; Create Adjustment File from the Tire Dealer Physical Count Menu. This will create adjustment files in MaddenCo s Inventory Adjustment screen for each To Be Inventoried File that is updated. Your adjustments will update during the next end of day update. 36

Other Physical Inventory Menu Options There are a few other things that you can do with physical counts. Print Count Sheets by Whse is used to print count sheets by warehouse and is used with the Bin Locator feature. Scanned Inventory Inquiry is used to view what items have already been scanned. Information will be displayed listing the who, what, when and where a barcode was scanned. Delete To Be Inventoried File is used if you need to delete a To Be Inventoried File that you created in error or decide not to use to adjust your inventory. Set Input Count to System Count is used to set the input count to the current on hand for each product line in the To be Inventoried file. By using this option you would only need to input counts that are different from what the system says you have on hand. This is not the recommended method for inputting counts. If control record INVSICOH is set to a Y, On hand will be used, otherwise inventory memo field will be used. Work with Physical Count Files is used to view the status of the existing To Be Inventoried Files that are on your system. Information will be displayed such as the date and time each To Be Inventoried File was created and the date and time the System Count was captured for each file. It is also where you can use the Reset option for a file that has become locked when power to your terminal was lost while you were accessing the file. The reset is the @ symbol on the number key 2. You are allowed to view one store or all stores, if you have access to all stores. Input Customer to be Inventoried is used to assign customers to a Physical Inventory file that will be used to take a retread physical inventory for a customer or group of customers. 37

Scan Inventory Using a Portable Hand-Held Device If you have uniquely identified any part of your inventory with a barcode, these barcodes can be scanned at physical inventory time. You can scan using either a regular workstation in the warehouse with an attached scanner or by using a Portable Wireless Hand-held Scanner Device. The process is fairly simple. You still create the To Be Inventoried File. You just scan each item s barcode instead of counting them manually and writing them in on the count sheet. Once you have scanned all of your barcodes you take an option to apply the scans and it will automatically update the counts in the To Be Inventoried File just as if you had hand keyed them in through the Input Counts option. For inventory with no barcode, just write them in on a count sheet and you can still manually key those in. Product Barcode Maintenance Use the Bar Code option to input Barcodes for products via Product Maintenance. You can also access Barcode Entry directly using the function from editing a product in Product Maintenance. Note: Barcodes can also be input from the Product Barcode Maintenance function on the Scan Billing menu as well as being captured with a wireless handheld Ethernet scanner. 38

Most new tires have barcodes printed on their labels. As long as the barcode is unique to that particular tire we should be able to use it to scan the tire. The barcode does not have to have the product number you use for that tire. It doesn t even have to have the manufacturer s product number. It just has to be a number that is always on that tire. We have a file associated to the product master file you can input the number that is on the barcode. It is possible you will find tires with no barcode labels or, even worse, barcodes intended only for the manufacturers internal use that contain, for example, a lot or warehouse location number. Don t panic! Your MaddenCo System has a function that allows you to print your own product barcode labels. This function will also come in handy for items with barcode labels that are damaged or the scanner cannot read (i.e., some shipping company places their label on top of the barcode.). Some manufacturers, as the above panel shows, will have multiple barcodes for the same tire. Often the different barcode numbers represent the same product manufactured at different plants or even different countries. This should not be a problem. You can associate more than one barcode to an item. Call us before you start to key (or scan) item barcodes into the product file. We will be attempting to accumulate barcode files for most vendors so if we have a file, there is an upload function to add those to your system. Note: For items arriving without barcodes, you can print barcodes directly from the MaddenCo inventory receiving function and within Scan Inventory using the Bar Code function. Just enter a bar code and continue to the printer screen to input the bar code printer. Refer to the Implement Scan Billing document for more information on this feature. 39

Scanning Barcode at Physical Inventory Time Take the Scan Physical Inventory option on the Physical Count menu to begin scanning your inventory. You may be prompted for a store number if you have access to more than one store. You will be prompted to input the Physical Inventory file name that you are counting. This is the file name you used when Creating an Inventory file that contains your retread products. You can use the File Name Inquiry to prompt for available Physical Inventory file names. 40

After inputting employee number, you will be ready to start scanning your inventory. New tires, serialized products and retreads can all be input at the same time. The screen will list the barcode that was scanned first, then the Work Order/Line # for retreads or the Product Number for all other items, depending on the type of line item you scan. 41

Sample Retread Finished Goods Label The barcode that you are scanning on the label must represent the work order line number that is referenced in the MaddenCo Retread System. For MaddenCo Retread System users, control key @BARCLBL must be set to a W to have the barcode that prints on the finished goods label represent the retread work order line number. The actual product number will still print above the barcode as shown above. 42

Error and Warning Messages You May Encounter In some cases a barcode may represent a new tire and a retread work order. If this is the case you will be presented with an additional screen, which will ask you to identify what you are scanning. For products, you have the option of keying in a quantity if control record SCIINQTY is set to a Y, otherwise the quantity will default to 1. If you scan a retread or serialized product you will not be prompted for a quantity. 43

If you are tracking products using our Serial Number feature, each serial number can be scanned as well. If a serial number represents more than one product in your system, you will be presented with a screen displaying the products and must choose which product it represents. Specific Errors If you scan the same serial number twice for the same product, you will see the error message This Serial Number has been scanned! If you scan the same retread twice, you will see the error message This Retread has already been scanned! And, if you scan a barcode that is not tied to any item on your system, you will see the error message Invalid barcode scanned: product, tag # or retread WO# not found. You should not be scanning non-inventory items since you do not keep a count on these. If you do, you will see the error message This is a NON-Inventory Item. 44

If you scan the same barcode twice or want to remove a line, use the Delete function to remove the last item scanned. Note: The last item scanned is always listed at the top of the list on the screen. 45

Applying Scanned Inventory Inventory Adjustment ACCESS is required unless control key PHYIAPSC is set with the value of Y. This allows the inventory to be applied without granting access to adjust inventory. When you have finished scanning your inventory, you will be ready to apply the scans. Take the Apply Scanned Inventory option on the Physical Count Menu. Enter your store number and then you will be prompted for the To Be Inventoried File name. Enter the file name or use the File Name Inquiry function to select a file. 46

The system will prompt if you want to include scanned retreads. You can store the Y or N default answer to the question Include scanned retreads in control record PIIRTDFT. If you answer Y, your scanned item counts will be added to the To Be Inventoried File that you specified. After the apply is complete, you can view the applied quantities by using the Input Counts menu option on the Physical Counts Menu. Any incorrect applied scanned counts can be corrected. Excluded counts can be added for any products that were not scanned due to items without barcodes or having barcodes that the scanner could not read. 47

Customer retread count detail Once applied to the inventory file, the retreads are flagged with an R to the right of the count. If you place the cursor on a retread count and take the Retread Cnt function, the system will display the detailed retread count information. 48

The system will display the count of this retread product by work order/line number. When the physical inventory counts are adjusted, the system will also adjust the retread billing file to accurately reflect the customers retreads available to bill. The retread detail will print on the Inventory Edit Register. Once your counts are applied you should follow the instructions in this document for Printing Edit Registers and Creating Adjustment Files. In addition, please refer to Recommended Steps When Taking a Physical Inventory section of this document for more information on the order of steps to follow when taking physical counts. 49

Inventory Adjustments Sometimes the need exists to do a plus or a minus to an inventory item to bring the perpetual inventory in line with the physical inventory. We will use Inventory Adjustments, which is located on the Inventory Menu. 50

The Work with Inventory Adjustments screen displays adjustments waiting to be processed in the Daily Update. Note: Inventory adjustments created from a physical count can be protected from being changed, deleted, held or released from the inventory adjustments input option if control record INAJPHYP is answered Y. Create a Manual Adjustment Use the Add function to add a new inventory adjustment. You can assign your own reference number or you can have the system assign the next reference number by taking the Next Reference # function. Control record REFNBR is used to determine the next available reference number. The input date and year/period dates are protected and default to the current date and year period if control record SYSDATE is answered Y. 51

Adjusting an Inventory Item Next, enter the product number or use the Find function to search for the product number. 52

Inventory adjustment quantity You should enter the quantity that you would like to adjust. To subtract a unit from inventory you will enter the quantity then press field minus or enter quantity then the minus sign and then field exit. If control record INAJACT is set to a Y, the on hand quantity as of last nights update will be displayed. Otherwise, the inventory memo field is displayed. A description line is available if you would like to enter some text regarding the adjustment for this item. This description will no longer be available once the adjustment is updated. If control record IAJRQDDS is answered Y, a description is required when adding or editing a line item on an inventory adjustment. When you have finished keying in all of your adjustments use the Exit function to return to the Work with Inventory Adjustments screen. 53

Work with Inventory Adjustment Detail The cost to use for the adjustment is determined by control key PRHAORR. Replacement cost is used if set to R and actual cost is used if set to A. You will need to review the line item to see the cost associated with the adjustment. This amount represents the quantity times the cost. A list of each item that you have adjusted is displayed. From this screen you have the Edit, Delete, and Display options available to you. You can Add another product adjustment or you can use the Memo function to enter information about this adjustment. 54

There is additional information available about an entry when using the Display option. You can see who last changed this record and on what date and time. If no one has attempted to change this information, then the information displayed is for the user who originally keyed in the adjustment. Input a Dollar Adjustment You can also enter a dollar amount using the Dollar Adj function if control record IAJALWDA to set to Y. 55

This method of input is used to update the value of the product. While this creates a journal entry (provided the system is set for this), a new average cost is not calculated. You will need to calculate this and do product maintenance to achieve this end. If control key INVNO$AJ is set to N, the dollar adjustment amount is updated to the product file. Serial Numbered Item Adjustment If control record TRACSER# is answered Y and the Track Ser #s field in product maintenance is answered Y, then a serial number must be entered. This will be required after you have typed in a product number and before you enter a quantity. You can use the Search function from the serial number display and you will see a list of available serial numbers in the system to select. Or you can type in the number and it will be added for you. If you are adding a product with a serial number that is not found in the system, then a window will be displayed to enter a cost for this serial number. Note: Control key SER#DFLT contains the default serial number to be used if the actual serial number is not known when using the serial number tracking feature (TRACSER# is answered Y). When the actual serial number is not entered, the normal validations will not be done. If this key is not set up, the word DEFAULT will be used whenever a serial number is required and one is not entered during the Receiving and Inventory Adjustments Inputs. This control key cannot be specified by user/workstation or by store. Control key SERUNQYN contains a Y or N indicating whether to use unique serial numbers. If answered Y, this serial number is not just by product number but is unique throughout the serial number file. This control key cannot be specified by user/workstation or store. 56

Serial number information can be Displayed. The History option shows the cost and receiver for the serial number. Serial number cost Control record SERHAORR is read to determine the cost. If it contains an A, actual cost will be used. If it contains an R, replacement cost will be used. If this control record is not on file and there is no cost in the serial file, Actual cost will be used. 57

Core Product Adjustment Adjustments can be made for core products if you are using the core tracking feature, control key CORESYN is answered Y. When you create an inventory adjustment for a product that has a core, an inventory adjustment for the same quantity for the core product will automatically be added. This will keep the quantities for these products in sync. Both adjustments will appear in the list. The description on the automatically generated core adjustment will always be 'AUTO CORE ADJ' and you will not be allowed to change it. You can edit the adjustment made to a product with a core and change the quantity. The adjustment quantity on the core product will also be changed. If you delete an entry for a product with a core, the core product will also be deleted. If you need to make an inventory adjustment on only the core product but not the product that has the core, you can create an adjustment for the core product only. You will also be able to edit this adjustment to the core product to change the quantity and description. If you create a dollar adjustment for a product with a core, an automatic inventory adjustment for the core will NOT be created. To keep the dollars in sync on those products, you would have to make a separate dollar adjustment on the core product also. Retread Inventory Adjustment The retread inventory adjustments feature is available within the Inventory Adjustment Input option of the Tire Dealer System. Control record @RTDINAJ must be set to Y for the Retread Adjustment function to be available. 58

A screen will be presented asking for the retread work order and line number. The quantity you enter must be either 1 or -1 depending upon whether you are adjusting the tire into or out of your inventory. 59

If the work order line that you are adjusting is a cap and a casing, both products will be adjusted. The description for each line added is the work order line number. If the system thinks the work order line is on hand at another store and you are adjusting it into your inventory, an inventory adjustment transaction will automatically be created at the other store to take it out of their inventory. The adjustments are logged in the retread time stamp file and are listed on the retread work order inquiry screen. 60

Printing an Adjustment Register The Print option is used for an individual adjustment reference number and will print a copy of that adjustment. Use the Print function to print an Adjustment Register, which will summarize all adjustment reference numbers that have not yet been updated. 61

Sample Inventory Adjustment Register Control key IAREGCST is used to determine which cost will print on the Inventory adjustment edit register. If this key is answered with an A then the actual cost is used. If it is answered with an R then replacement cost is used. If this key is not on file then the cost from the transaction file will be used. If control key IAREGPPC is set to Y, the product class will print in place of the Extended FET column. A recap of totals by product class are printed at the end of the report as shown in the example above. If control record MEMOPRT contains a Y, then the memo will print for any adjustment that has a memo associated with it. Inventory adjustment cost calculations If control record PRHAORR contains an A, then the actual cost is used to calculate the adjustment amount. If it contains an R, then the replacement cost is used. This control key is also used to determine which cost to use when writing to the product history file (PRHSTYN set to Y). This cost is also used to display cost from the inventory adjustment options. If this control record does not exist, actual cost will be used. 62

Inventory adjustment GL posting cost calculations If you would like to post inventory adjustments to the General Ledger, you will need to set control record POSTGLIA to a Y. When posting inventory adjustments to the general ledger, control record GLCOST is used to determine which cost is used. If this control record contains a Y then replacement cost is used, if it contains an N then actual cost is used. If the control key is not on file, actual cost is used. Note: See GL Posting document for more detail of how the system will post the inventory adjustment to the general ledger. 63

Tire Dealer System G/L Physical Inventory Control Records See G/L Posting Document for more information. GLCOST --- Contains a Y or an N determining which cost you will use when posting to the General Ledger. If Y, the replacement cost will post. If N, the actual cost will post. Please be aware before changing value that this key affects other modules. Default value is N. GLINV/P --- Contains a V or P indicating which method will be used in posting inventory to General Ledger. If answered P, posting will be done by product class using control keys GLINVxx. If answered V, posting will be done by vendor number using control keys GLINxxx. The inventory variance for inventory adjustments will post to the account number found in GLVARxxx if this key is set to V or to the account found in control key GLVARxx if this key is set to P. Default is P. GLINVxx --- where xx is a product class code. Contains the General Ledger account number for inventory entries for this product class. Used only if control key GLINV/P is answered P. Use data code GL for a formatted entry. This control key cannot be specified by user/workstation or by store. GLINxxx --- where xxx is a vendor number. Contains the General Ledger account number for the inventory entries for this vendor. Used only if control key GLINV/P is answered V. This control key cannot be specified by user/workstation or by store. GLVARxxx --- where xxx is the product vendor, if control key GLINV/P is set to V, contains the G/L account where the inventory variance will post. Used in Inventory Adjustments. GLVARxx --- where xx is the product class, if control key GLINV/P is set to P, contains the G/L account where the inventory variance will post. Used in Inventory Adjustments. Tire Dealer System G/L Inventory Adjustment Control Records POSTGLIA --- Contains a Y or N. If answered with Y, the dollar amount of all inventory adjustments will post to general ledger. The inventory side of the posting will be to the G/L account contained in the control key GLINVxx, where xx is the product class, if control key GLINV/P is set to P, otherwise it will post to the G/L account contained in the control key GLINxxx, where xxx is the product vendor. The inventory variance will post to the G/L account contained in control record GLVARxxx, where xxx is the product vendor, if control record is set to V, otherwise it will post to the G/L account contained in control record GLVARxx where xx is the product class. 64