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Overview |
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Some common terms
OnHand Quantity
The actual physical quantity we have in stock.
If we receive 12 items of some Product such as "bol-273" and nothing else happens we have an OnHand Quantity of 12.
Receipts and Issues that occur in any of the Inventory, Sales and Purchasing modules affect the OnHand Quantity.
Receipts occur mainly in the Inventory and Purchasing modules. However, Receipts may also occur in the Sales module as a result of returns from a Customer of products being returned to inventory that are processed as a Sales Credit Note.
Issues occur in the Inventory and Sales modules. The OnHand Quantity is the result of subtracting the total Issues from the total Receipts.
Allocated Quantity
When the Sales module is installed a Sales Order may allocate some quantity of an item for a Sales Order in advance of those items actually being shipped. Although those items are still physically in stock they are not available for sale to some other Customer.
For example, assume a Sales Order allocates 4 of that Product "bol-273" referred to above but nothing else happens. Then our OnHand Quantity is still 12 and our Allocated Quantity is 4.
OnHand Available Quantity
The OnHand Available Quantity is the net result of subtracting the Allocated Quantity from the OnHand Quantity. It shows the quantity of an item that we have in stock available for sale.
Continuing with our "bol-273" example our OnHand Available Quantity is now 8 representing the OnHand Quantity of 12 less the Allocated Quantity of 4. The system continuously maintains the current OnHand Available Quantity by Product by Warehouse. If Sales Orders is not installed then the OnHand Available Quantity is the same as the OnHand Quantity.
Sales BackOrder Quantity
When the Sales module is installed a Sales Order may contain items that have been ordered but have not been allocated.
There may be various reasons for this such as a future shipping date, insufficient credit or being out of stock on those items.
Regardless of the reason, those items that are not allocated have no effect on the On Hand Available Quantity but are reflected in the Sales BackOrder Quantity.
Continuing with our "bol-273" example, assume another Sales Order is entered on which 3 are ordered but not allocated. Our OnHand Quantity remains 12 and our OnHand Available Quantity remains 8 but we now have a Sales BackOrder Quantity of 3. Sales BackOrder Quantity is only applicable when the Sales module is installed.
Purchase OnOrder Quantity
When the Purchasing module is installed a Purchase Order reflects outstanding Purchase Order demand for a Product. Once the Products are received that Purchase Order demand is relieved.
Continuing with our "bol-273" example, assume a Purchase Order occurs where 5 of these are ordered. Our Purchase OnOrder Quantity is now 5. There are no effects on the other Quantity summaries such as OnHand Quantity or OnHand Available Quantity.
Unit of Stock
Within Inventory the Quantity value is expressed in the Unit of Stock specified for a Product. Inventory transaction line items use that Unit of Stock specified for the Product.
Unit of Sale
Within the Sales module the Quantity value is expressed in the Unit of Sale specified on a transaction line item basis for the Product.
The standard Unit of Sale specified for a Product is used in specifying standard selling prices for a Product. These standard prices apply to Customers that do not have Customer-specific price(s) for a Product.
Selling prices for a Product for a specific Customer are based on the Unit of Sale specified for that Customer for that Product.
Unit of Purchase
Within the Purchasing module the Quantity value is expressed in the Unit of Purchase specified on a transaction line item basis for the Product.
The standard Unit of Purchase specified for a Product is used as the default in specifying the Unit of Purchase for a Supplier of that Product but may be changed on a Supplier-specific and Product-specific basis.
Purchase prices for a Product for a specific Supplier are based on the Unit of Purchase for that Supplier for that Product.
Multiple Warehouses
AdaptAccounts supports multiple Warehouses. A Company must have at least one Warehouse.
All transactions in the Inventory, Sales and Purchasing application modules specify the particular Warehouse. The system presents the various Quantity values by Warehouse for each Product.
Product Groups
Product Groups provide a way to group Products into categories. This grouping serves several purposes.
One is to provide a convenient mechanism for a new Product to inherit the common characteristics of all similar Products in a Group.
A related purpose is for Product Group by Warehouse records to inherit the default General Ledger Accounts for that Product Group. Another purpose is for Sales and Purchasing analysis.
Receipts and Issues
Transactions entered through the Inventory application are saved in the Inventory transaction tables. An individual transaction is either a Receipt or an Issue transaction. The IcType specifies whether the transaction is a Receipt or an Issue.
Items on a Receipt transaction increase the On Hand position of their Products.
Items on an Issue transaction decrease the On Hand position of their Products.
When transactions are viewed the Receipts and Issues quantities are usually shown in separate columns. Within the detail records however, Receipt quantities are stored as positive values and Issue quantities are stored as negative values.
When Sales and/or Purchasing are present they also produce transactions that decrease or increase a Product’s On Hand position. Although these transactions are maintained separately, they are reflected in the Inventory summary inquiries and reports.
Transfers between Warehouses
Support for Inventory transfers from one Warehouse to another is included in both the transaction entry task and the transaction importing task.
Transfers are entered or imported just like an ordinary Issue transaction except that the ToWarehouseID specifies the receiving Warehouse.
An ordinary Issue simply leaves that ToWarehouseID blank. When that transfer transaction is posted or imported the system generates an Issue transaction from the issuing Warehouse and a corresponding Receipt transaction for the receiving Warehouse.
Allowing Negative OnHand Available Quantity
A negative OnHand Available Quantity means Issues and Allocation exceed Receipts. Although this is not physically possible it is conceptually possible and is preferred in some installations.
The standard setup does not allow negative OnHand Available Quantity. This means the system will not accept Issues or Allocation that exceed the OnHand Available Quantity. For most environments this is the correct attitude. In many cases it simply means ensuring that Receipts get entered and posted promptly.
However, there are some environments where it is appropriate. In those environments the system will accept Issues and Allocation even if they do exceed the current OnHand Available Quantity. If this is what you prefer then you can change the default setting using the Inventory Setup task.