MBS ARC Training Manual Merchandise Hierarchy and Settings This chapter focuses on how items and inventory are structured in the Merchandise and Accounting application. This section includes review of system hierarchy and inventory structure as well as a discussion of select settings that tie into this structure. The MBS System is a Retail Accounting system, and a summary of calculations for this type of system is also available in this chapter. This manual covers the following aspects of merchandise item records: System Hierarchy... 3 Company... 3 Store... 3 Inventory Structure and Settings... 5 Division... 6 Department... 6 Class... 6 Class Settings... 7 Item... 9 Merchandise Management Settings... 10 Logo-Color-Size Codes... 10 Min/Max Models... 12 U/M Code... 12 Season Code... 16 Item/Shelf Location Assignment... 17 System Setup... 20 Calendar Control... 20
Create a Calendar... 20 Buyer Codes... 24 Event Code... 25 MBS TEXTBOOK EXCHANGE, INC. PAGE 2 OF 25
System Hierarchy ARC groups merchandise and text inventory based on a structural hierarchy. Well-planned data structure enhances report analysis and record-keeping. A good deal of thought should go into the development of the system hierarchy, frequently referred to as the class structure. For inventory, the structure flows from general (Division Level) to specific (Class Level). Each grouping level is an extension of the previous level of grouping and should be numbered accordingly. Divisions are identified by a single digit, Departments by two digits, and Classes by three digit. Class 320, for example, should indicate that it is grouped under Department 32 and Division 3. Company The Company is the customer account at the broadest point. It refers to the corporation or university with which the stores are associated (for example, MBS University). A company can consist of single or multiple stores (for example, Store 1 is the MBS Bookstore, Store 2 is the Corner Shop, Store 3 is the Ashland Extension Campus all stores are part of the MBS University store system). Division > Department > Class structure is established at company level and applies to all stores unless otherwise configured. Changes at these levels are coordinated with your MBS Client Representative. Store Stores are established within a Company. It is important to note that item records and vendors in Merchandise are maintained at a company level. Beyond that, stores can be maintained separately from each other for Inventory value and Sales performance. Inventory and sales are tracked both by store and by company in the Stock Ledger and General Ledger. Data contained for the store will be used to prepopulate numerous fields and processes throughout the system. For example, store address information is used in processes such as Purchase Orders, Receiving, and Returns. MBS TEXTBOOK EXCHANGE, INC. PAGE 3 OF 25
Store Inquiry The core settings for a store can be displayed as an inquiry in Merchandise. Please note that these preliminary settings are set up by MBS Implementation and Client Services. Any changes must be coordinated through your Client Representative. 1. To view your store information, go to Buyer Reports/Inquiries > Inquiries > Master Files > Stores 2. Highlight the store for which you would like to view information. Click Display. Store Number 001-999 Figure 1: Store Information Address, Phone, City, State, Zip Store information that will display on purchase orders, returns, invoices, etc. Postal Code only used for customers located outside the United States District groups stores with similar pricing and sales patterns MBS TEXTBOOK EXCHANGE, INC. PAGE 4 OF 25
Load Factor indicates a stocking fee % assessed by transferring store or warehouse Store Type/Store Code/Post Code these options are not currently used at this time for store settings Print Tickets when using Warehouse Management, yes will print tickets as part of distribution Store Tax Rate cumulative rate of state and local sales tax by store Inventory Structure and Settings Inventory records themselves are structured at the company level. The example below explores the grouping that makes up the inventory structure in Merchandise. Division 3 - Supplies Department 30 - General Supplies Department 31 - School Supplies Department 32 - Art Supplies Class 310 - Paper Supplies Class 311 - Notebooks Class 312 - Ring Binders SKU 200107 Notebook, College Ruled Type Level Red Notebook, Blue Notebook, etc SKU 200108 Notebook, Wide Ruled SKU 200109 Notebook, No Lines MBS TEXTBOOK EXCHANGE, INC. PAGE 5 OF 25
Division Division is the broadest order of structure within a Company. It is a single digit numerical field, and up to nine divisions are available. Examples at this level are Division 1: Textbooks, Division 2: General Merchandise, Division 3: Supplies, Division 4: Apparel, etc. In the example above, Division 3 refers to Supplies. A Division cannot be deleted once it is assigned a Department. Department Department is a less-broad order of structure that is assigned to a Division. It is more specific than Divisions and extends from the Divisions structure. Departments consist of a two digit number between 10-99. Examples at this level are Department 30: General Supplies, Department 31: School Supplies, Department 32: Art Supplies, etc. Often Departments are structured so the first number (3- in our example) matches the Division number (3: Supplies). It is acceptable as well to structure Departments with different first numbers to a Division as needed, but it is recommended to organize these Departments so they flow logical from Division and into Class. For example, Division 1: Books may have Departments 10 19 assigned for textbook departments. Department 20 29 may be assigned for Trade/General books in Merchandise, but still report to Division 1 as book type departments. A Department cannot be deleted once it is assigned a Class. Class Class is the last structure in the inventory hierarchy before individual SKU s, and several details associated with inventory and item records are established at this level. Class-level records establish such critical information as the default mark-on % (margin), Cost Complement, General Ledger inventory levels, and non/taxable status for retail based accounting. Classes are the most specific order of formal hierarchy established and extend from their Department structure. Stores may create Classes 100-999. An example at this level is Class 311: Notebooks (under Department 31: School Supplies; Division 3: Supplies). MBS TEXTBOOK EXCHANGE, INC. PAGE 6 OF 25
Classes are the first level at which a Sales transaction may be conducted. Class sales are often associated with items that do not need tracked at an individual SKU level. Since Classes do not exist at a per-unit level, Classlevel sales will post only cost and retail values to the Inventory Stock Ledger as opposed to inventory quantities. This is also the level where inventory groups are mapped to desired General Ledger accounts. Many Classes may be mapped to a single General Ledger Account, but a single Class may not be mapped to numerous General Ledger Accounts. Classes have an established default markon % (margin). Each item within a Class should have a similar markon % value. ARC uses information gathered at this level to calculate Cost Complement, a critical value which serves as the basis for valuing the store inventory. A Class cannot be deleted once it is assigned an Item. Item Records SKU information is attached to a class to allow for individual items to be tracked in inventory. An example at this level includes SKU 2000107: Notebook, College Ruled (assigned to Class 311: Notebooks; part of Department 31: School Supplies; an extension of Division 3: Supplies). Many enhanced features available within ARC are designed to be used at the item-level and will be unavailable to most class-level sales activities. Examples of these features include Type Codes, Season Codes, Min/Max Values, Units of Measure, Kits, etc. Items are discussed in more detail in the Item Records chapter. Class Settings Just like Divisions and Departments, Classes are initially set up by the MBS Implementation and Client Services teams. If you need to create or change a class, contacting your Client Representative. Class information can be reviewed though through inquiries. 1. To view your store s class-level information, go to Buyer Reports/Inquiries > Inquiries > Master Files > Class/Subclass MBS TEXTBOOK EXCHANGE, INC. PAGE 7 OF 25
2. Highlight the class for which you would like to view information. Click Display. Figure 2: Class Information Note: all fields displayed with an asterisk (*) are required fields. (*) Class/Sub-Class Number 3-digit number 100-999. Sub-Class is not supported. (*) Description Alpha-numeric label used to identify the Class category (*) Department Department under which the Class is assigned Season, Min/Max Units, Vendors, and Buyer Codes Used primarily for items and are typically blank for classes (these are discussed further in the Item Records chapter) Year-Round Discount Percentage of universal discount for a given class (this is rarely used) (*) Default Markon % Establishes a target Margin for items grouped under this Class. The markon % refers to the percent that is added to an item s cost to create a retail price, and it creates a reciprocal record called MBS TEXTBOOK EXCHANGE, INC. PAGE 8 OF 25
cost complement. This entry is an estimate for the markon %, and actual Invoice and Sales activities will determine actual markon % for Class. (*) Taxable/Non Taxable These flags dictate how the class, and items in the class, are taxed on POS and insite. Items in a class flagged as Non Taxable will default to not being charged tax during a sale transaction. Allow Loyalty Sales Permits items within this class to be sold within the Loyalty Program, the purchase of which will contribute to the accrual of Loyalty Points. Exclude from Loyalty Redemption Restricts the use of Loyalty Points from being utilized as part of the purchase for items within this class. G/L Account for Inventory Maps to the General Ledger Asset account reserved for this type of inventory (e.g., Inventory Supplies, Inventory Clothing, etc.). This enables inventory changes to flow into General Ledger (or to be transmitted via a Gateway to campus accounting, if available). G/L Account for Cost of Sales Maps to the General Ledger Expense account (e.g., Cost of Sales, Cost of Goods Sold) and allows Sales and Cost of Goods to flow to General Ledger (or to be transmitted via a Gateway to campus accounting, if available). Rental Class Used only for those classes associated with the Textbook Rental module. Class examples: New Textbook Rental Class, Used Textbook Rental Class (non-serialized); Rental Textbook Class (serialized). Non-Merchandise Item for Rental Textbook Rental Classes only. Refers to the non-merchandise code set up for the initial purchase amount of a textbook rental. This is set up in Settings > POS > Non-Merchandise Item Codes. (*) UDT Class Used only for the textbook class that is defined for Universal Digital Textbooks (ebooks) Item Items are individual units for retail sale and the level at which Stock Ledger tracks inventory at quantity, cost, and retail values. With the exception of class-level inventory and sales, all documentation from processes such as ordering, receiving, and sales will track at the item level. MBS TEXTBOOK EXCHANGE, INC. PAGE 9 OF 25
Items assigned to the same class should have a similar margin. There are many aspects to working with items in Merchandise, and these will be expressed further in the Item Records chapter. Merchandise Management Settings Logo-Color-Size Codes Settings > Merchandise > Logo/Color/Size Codes Logo/Color/Size (L/C/S) Codes are used to describe variations of a single SKU by characteristics such as logos, colors, and sizes. These are most commonly used with clothing and merchandise with several sizes and colors. Navigate to Settings > Merchandise > Logo/Color/Size Codes to work with these codes. The table defaults to Logo codes first. Use Change Group Type to cycle through to the tables for Color and Size. The codes are created by clicking Add and entering a two digit, alpha-numeric, code and a short description. MBS TEXTBOOK EXCHANGE, INC. PAGE 10 OF 25
Clicking Work with Detail from the options provides a table entry for what types of Logos, Colors, or Sizes are included in this group code. A Type Code consists of a 3-digit numeric Code, Description, Short Type (Description), and Sequence number. As Type Codes are user-defined, it is best to establish a convention in order to keep the codes manageable. To help start the process, here are a few considerations: Keep it simple. If clothing is categorized as Small, Medium, and Large for Men, Women, and Children, use those under one group (i.e. something like Basic Sizes) as opposed to creating separate groups for each. Create Type Code/Descriptions with your inventory in mind, not your vendors. o i.e., Red Dark is equivalent to merlot, crimson, burgundy, etc. It is best to use a naming convention you, your staff, and your students are familiar with. MBS TEXTBOOK EXCHANGE, INC. PAGE 11 OF 25
When displaying on insite, adding types to item UPC s, ordering, and printing barcodes, the type code table displays in a drop down. Keeping the detail in the type code specific helps avoid large tables to maintain later in the system. o For instance, if Red, Blue, and Black are the only colors for the University sport teams, a separate School Colors group with these three defined can provide smaller tables elsewhere when ordering items with sports themes. Click Save to complete edits to the type level detail and that detail will be associated with that Type group code. Type Codes provide a sub group of items that also provide detail throughout Receiving, Stock Ledger, and Sales. The Item Records chapter will go into more detail about Type Codes. Min/Max Models Item Records have an option to set a minimum and maximum need for inventory quantity. This is helpful for select reports (i.e. Suggested Needs Report) as well as for replenishment. Settings > Merchandise > Min/Max Models is an area to review and maintain current min/max settings on an item record. Min/Max Models will be discussed further in the Item Records chapter. U/M Code Unit-of-Measure (U/M) Codes are used to convert Inventory items received in bulk to a per-unit quantity for sales (POS/inSite) and Stock Ledger (reporting). U/M Codes are setup and configured over multiple stages. The first step is to establish a code (i.e., box, carton, case, pack, etc.). This descriptive code is then defined in the Item Record in terms of bulk quantity (i.e., box of 12), bulk cost, and bulk retail values of the selected descriptive U/M Code. Finally, all U/M associations (system-wide) are displayed under the Item/UM Assignment feature. Set up for a U/M code description is in Settings > Merchandise > U/M Codes. MBS TEXTBOOK EXCHANGE, INC. PAGE 12 OF 25
Click Add to create a code. A two-digit, alphanumeric code and a description are required. Once the code is created the Unit of Measure case be associated with an item and an assignment can be made for number of units and the list cost and retail for the entire group of items (used for ordering and receiving individual cost and retail will be defined on the item level). Assigning Units of Measure is typically done from the item level, but it can be done as well from settings. The steps for working with Units of Measure on an item level will be in the Item Records chapter. Follow the steps below to work with Units of Measure instead from Settings. 1. Navigate to Settings > Merchandise > Item U/M Assignment. MBS TEXTBOOK EXCHANGE, INC. PAGE 13 OF 25
2. Click Add to assign an item Units of Measure for the first time, or search for an item and Change to edit current U/M settings. 2-decimal COST and RETAIL 3. Ensure the proper Item Number is selected, and type or select a U/M Code from the drop-down menu. The Informational U/M is optional and may provide an additional level of description for this U/M. MBS TEXTBOOK EXCHANGE, INC. PAGE 14 OF 25
4. Enter the Quantity of items contained in the package for this item (e.g., box of 12, enter 12) in the Selling Units per a U/M. Note: Each Item Record may only use a specific U/M code once (e.g., there can only be one box for this item). However, each Item Record may use multiple U/M relationships (i.e., box, carton, case, package, etc.). 5. Enter the bulk Cost and Retail in the U/M List Cost and U/M Current Retail fields. These fields may be updated in the Purchase Order and/or in Receiving and are most easily worked with in those features. Freight Amount per U/M is informational and reflects what shipping costs typically would be for the U/M package of this item. This is more commonly assigned directly to an invoice and is not required here. U/M Minimum Order QTY mirrors Vendor minimum order information. 6. Click Save. An Optional screen appears that is used with the Warehouse application. The system defaults a 1 in Pallet TI, Pallet HI and Pallet Size. All other fields are left blank until Save is clicked again. Below is an example of a completed screen. Notice that Height of U/M, Length of U/M and Width of U/M fields are populated. When using U/M Assignment in the Merchandise Items record, the process is identical. This will be reviewed in the Item Records chapter. Information regarding ordering and receiving Units of Measure will be in the Purchase Order and Receiving chapters as well. MBS TEXTBOOK EXCHANGE, INC. PAGE 15 OF 25
Season Code Settings > Merchandise > Season Codes Season Codes are information-only tags. They provide an additional field by which most Sales, Inventory, and other reports/inquires may be filtered. As a general rule, Season Codes are best used when defining records that are related to specific seasons or periods of special item sales (e.g. winter/fall/summer/spring or football/soccer/baseball/etc.). Season Codes consist of a Description field and single-character Season code, and are associated in the Item Record for use in many Reports and Inquiries. Figure 3: Season Codes 1. To create a season code, select Add. Figure 4: Season Code Entry Season Code Enter single alphanumeric code. Season Description Enter code description (limit 20 characters). MBS TEXTBOOK EXCHANGE, INC. PAGE 16 OF 25
2. Click Save to continue. Then click Save to verify. The fields will blank to allow for additional entry. Once finished with the entry, click Go Back to return to the code listing. Item/Shelf Location Assignment Merchandise > Maintain Items > Shelf Locations Shelf Location Codes are used to define where an item is located within the store. They must first be established before they can be assigned to items as part of the Item/Shelf Location process in the Merchandise Items menu. 1. Click Add to assign a new shelf location code. 2. Verify the Store Number where the shelf code is being set up and then enter the shelf Location, Description, and Picking Sequence. MBS TEXTBOOK EXCHANGE, INC. PAGE 17 OF 25
Shelf Location accepts up to 15 alphanumeric characters and description accepts up to 30. Pick Sequence is optional and is used to determine the item order on a Pick List. This is used primarily for store transfers. 3. Multiple shelf locations can be added at once. Click save to complete the entry, and the shelf locations will now display in the table. Note: It is advisable to keep consistent with the same descriptors as the floor map used with Physical Inventory, where possible. Item/Shelf Location Assignment Settings > Merchandise > Item/Shelf Location Assignment This option permits the user to assign pre-established shelf locations to particular Item Records. 1. Add/Change an item from the Item/Shelf Location Assignment menu. MBS TEXTBOOK EXCHANGE, INC. PAGE 18 OF 25
2. If adding, the user is prompted to select the store and item they wish to assign a location. Click Save. 3. Select from the Shelf Location drop-down or manually enter the desired location Click Save. MBS TEXTBOOK EXCHANGE, INC. PAGE 19 OF 25
System Setup Calendar Control A calendar must be defined for each year in order to allow the system to process data. The system can create the calendar automatically following the standard accounting 4-4-5 calendar format. Two other calendar formats are also available. The calendar can also be created manually. NOTE: It is recommended that the new fiscal calendar be created prior to the last week of the old calendar. Calendars can be created in advance and at any time. The system does not automatically default to the current calendar month but will maintain the current open month as shown in the system. At the end of each month it is closed in order to advance the next open month in the system. As long as ordering, receiving, and similar adjustments display the correct calendar month at the transaction level, the system will sort the records accordingly once previous months are closed out. All data, except sales, are posted by the user to the appropriate month (the month the activity occurred). Sales are posted based on the date the sales were processed at the register. The Control File question of Do merchandise period endings differ from calendar month ends? also determines which month the sales post. Create a Calendar 1. Navigate to Settings > Other > Calendar Control. Yes System will generate fiscal calendar from criteria defined below No User will create the fiscal calendar manually 2. If Yes is selected in Calendar Control, the following screen appears: MBS TEXTBOOK EXCHANGE, INC. PAGE 20 OF 25
Fiscal Week Ending Date Enter the last day of the first week of the new fiscal year. For example, if fiscal year 2018 begins in July 2017 and a week is Sunday to Saturday, 07/01/17 would be entered as the ending date for the fiscal year. Fiscal Year Enter the year for the new fiscal year. This identifies that starting with the first week ending date, the fiscal year will be the year entered here. From the example above, 2018 would be entered. Period Sequence Select the period sequence for this fiscal year. Using the table below, enter the correct sequence based on the first month of the fiscal year. 4-4-5. January, April, July, or October 4-5-4. February, May, August, or November 5-4-4. March, June, September, or December 53 Week Year Determine if the fiscal year has 52 or 53 weeks. The best way is to simply count the number of weeks on a calendar. If the fiscal year is 53 weeks, answering Yes displays an additional field for the extra week. 1. Designate which fiscal year will include the extra week. General accounting practices assign this week to the last period of the fiscal year. 2. When finished with this screen, click Save. The system creates the calendar and returns to the Main menu. MBS TEXTBOOK EXCHANGE, INC. PAGE 21 OF 25
If No is selected in Calendar Control, the following screen appears: Columns for the Date, Week, Period, Year, Season, and Closed display. Since this is a fiscal calendar, notice that 06/24/17 is Week 52, Period 12, and Year 2017. July 1 st, 2017 is the first week of the new fiscal period for the fiscal period of 2017 2018, and therefore displays as Week 01, Period 01, Year 2018. At any time, a user may view the calendar detail. 1. Click Calendar Control and answer No to Do you want the system to create the calendar? Click Save. The weeks are displayed in chronological order. By entering the beginning date of the new fiscal year in Position to, the user can view the fiscal weeks. 2. To create a new calendar, select Add. MBS TEXTBOOK EXCHANGE, INC. PAGE 22 OF 25
Figure 5: Calendar Control: Manual Assign Step 2 Week Ending Date Enter date the first week ends. Fiscal Week Enter number of total weeks according to fiscal calendar. Fiscal Period Enter number of the period according to fiscal calendar. Fiscal Year Enter fiscal year. Season Code (optional) Used in conjunction with the Replenishment module. Close Code System defaults a C in the Close Code field when weeks are closed. Note that manually entering a C into this field does NOT close out a given week in the system. Weeks can be closed from the following screen; similar to Month s- and Year s-end closing: Settings > Period Ending > Week 3. Click Save to verify the changes. Once all weeks have been created, click Go Back to return to the week listing screen. MBS TEXTBOOK EXCHANGE, INC. PAGE 23 OF 25
Buyer Codes Settings > Other > Buyer Codes Buyer Codes can be used in varying ways. For example: To identify a specific individual on Purchase Orders, SKU s or Classes As a prefix to the Purchase Order numbers To identify vendors by the merchandise they sell As an additional benefit to the variety of uses for these codes, there are several reports available that offer Buyer Codes as selection criteria. When the Abbreviation field has the buyer s name entered it then populates the Written by field on the purchase order header to further identify the purchase order. Buyer codes may be used to define buyers for specific departments/classes such as clothing, electronics, textbooks, supplies, etc. through the use of Buyer Codes. 1. To create a Buyer Code, select Add. MBS TEXTBOOK EXCHANGE, INC. PAGE 24 OF 25
Buyer Codes are tags that consist of (3) character spaces, a name description, as well as Buyer Abbreviation and Buyer Initials fields (both optional). Again, Buyer Abbreviation will populate into the Written by field on purchase orders. Event Code Settings > Other > Event Codes Event Codes are used to track in-store events, promotional sales, or catalog items. It is used for tracking purposes only and can be attached to classes or SKU s. Event Codes consist of a 3-digit numerical Event number, a Description field, fields for Status A (Active) or D (Inactive), and Start/End Dates. Event Codes are attached to an item in the Item Record and/or Purchase Orders, and are used predominantly with Purchase Orders. MBS TEXTBOOK EXCHANGE, INC. PAGE 25 OF 25