DOCUMENTATION CONVENTIONS

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2 The documentation in this publication is provided pursuant to a Sales and Licensing Contract for the Prophet 21 System entered into by and between Prophet 21 and the Purchaser to whom this documentation is provided ( License Agreement ). In addition, the licensed software to which this documentation refers may be supported in accordance with a customer support agreement by and between the same parties ( Support Agreement ). All warranties, conditions of use, transfer restrictions, and other provisions in the License Agreement or Support Agreement which are applicable to Licensed Software, are applicable to this publication. In addition, this publication may include inadvertent technical inaccuracies or typographical errors for which Prophet 21 is not responsible. Changes may be periodically made to this publication; these changes will be incorporated in new editions of the publication. Any questions about the material contained in the publication should be addressed to the Prophet 21 Customer Support Department at Nothing in this statement amends or extends the terms of your agreement with Prophet 21, including any warranties that might be included in our products. Warranties for such agreements are set forth in your agreement with Prophet 21. Improvements and/or changes to the Licensed Software described in this publication may be made by Prophet 21 at any time without notice. DOCUMENTATION CONVENTIONS The eyeglass symbol ( ) indicates a field on which you can browse. The star ( ) indicates the default for a field. To allow for the widest possible parameters when printing a report or performing a function, accept the defaults for all of the parameter fields. To accept the defaults, either escape through all the fields, or press [Enter] without specifying any values. Generally, samples in the documentation are shown using the default values. Start and End parameters define the limits to a range of information you will print on a report. If information does not appear on a report, it may be because the information was excluded from the Start, End range. For a detailed explanation on how maintenance screens function, refer to the Tour Guide manual. Use the search tool in Adobe Acrobat Reader 4.05c or higher to find which manual describes a specific module, job, or function. 9/22/05 Prophet 21 Acclaim Version 16 The Prophet 21 system and Prophet 21 Acclaim are registered trademarks, and Prophet 21 and ScratchPad are trademarks of Prophet 21. All other trademarks and registered trademarks are the property of their respective companies. ii

3 Table of Contents 1 INTRODUCTION 5 Before Enabling Inventory Movement 5 Enabling Inventory Movement 6 After Enabling Inventory Movement 10 New Inventory Movement Journals/Reports 10 Updated Existing Reports 11 Material Received Register 11 Monthly Invoice Register 12 2 GETTING STARTED 13 Printing and Clearing or Committing the New Inventory Movement Reports 13 Print and Clear the Nonstock Adjustments Register 14 Print and Clear the Nonstock Cost Change Register 16 Update the Inventory Balance Report with Ending Inventory Values 17 Print the Inventory Value Summary Report 17 Print the Nonstock Inventory Value Report 19 Nonstock Inventory Value Report: Sample 23 Cost Change Codes 23 System Cost Change Codes 24 User-Defined Cost Change Codes 24 Enter System Cost Change Codes 24 Enter User-Defined Cost Change Codes 28 Assign User-Defined Cost Change Codes 30 Updating Stock Items Costs and Unit Sizes with Catalog Item Information 34 3 AUTOBATCHES 36 General Information on Autobatches 36 Inventory Movement Autobatches 36 Inventory Movement Autobatches Table 37 CSLD - Cost of Goods Sold Autobatch Defaults 38 CCHG - Item Cost Changes Autobatch Defaults 40 iii

4 NSIC - NS Item Cost Change Autobatch Defaults 41 ADJ Stock Item Adjustments Autobatch 42 NSAJ - NS Inventory Adjustment Autobatch Defaults 46 CVAR - Cost Edit Variances Autobatch Defaults 48 RTRN - Received Value of Transfers Autobatch Defaults 49 POCD - PO Cost Discrepancies Autobatch Defaults 49 UMAC - Uninvoiced Material Accrual Autobatch Defaults 50 4 RECORD INVENTORY VALUE 52 Inventory Balance Report 52 Checklist for Updating and Printing the Inventory Balance Report 53 Reports / Journals for Inventory Balance Report 53 Inventory Balance Report Options 55 Update the Inventory Balance Report 56 Three Important Dates on the Inventory Balance Report 57 Print the Inventory Balance Report 57 Reset the Inventory Balance Report 58 Appendix A: Cost Change Code Cost Change Code Cost Basis is C-AVG: Example 59 Cost Basis is L-AVG: Example 62 Appendix B: Interbranch Shipments and their Ledger Autobatches 64 iv

5 1 INTRODUCTION The Inventory Movement feature allows you to consolidate various journals and reports that track system transactions affecting inventory value. This feature accounts for your inventory by the transactions you enter in the system. It does not account for your transactions by the amount of inventory the system indicates you have. The conventional method of balancing inventory involves calculating a beginning and ending value. To calculate a beginning inventory value, you need to take a physical inventory count. To calculate an ending inventory value, you need to subtract the value of goods sold from the value of material received over a specific period of time. The ending value is usually updated on a monthly or annual basis. Any discrepancies between the running inventory value and the actual value found during the next physical count are attributed to the cost of goods sold. The discrepancies between the beginning and ending inventory values are the result of the following inventory changes: Items sold Changes in item costs Edits to line-item costs on customer orders Material transfers Cost discrepancies in purchased items Uninvoiced inventory additions Item adjustments The Inventory Movement feature allows you to use the power of your Prophet 21 System to pinpoint the source of these discrepancies. By consolidating the various journals that track all changes to inventory value, the Inventory Movement feature maintains a total inventory value with a minimal margin of error. BEFORE ENABLING Important! We highly recommend that you enable the Inventory Movement feature at the end of the month. In order to establish a correct beginning inventory balance, you must clear/commit the following reports before you can enable the Inventory Movement feature: 5

6 1 INTRODUCTION Module Invoice Material Material Item Work Edit Journal / Report Monthly Invoice Register Monthly Confirmed Vendor Return Register Material Receipts Register Item Cost Change Register Assemblies for Stock Adjustments Register Note: You only need to clear/commit this report if you enabled the Assemblies / Lot Billing optional package. Item List Item Adjust Invoiced Cost Edit Variance Report Stock Adjustments Register Please refer to the appropriate manuals for information on how to clear/commit these reports. For example, refer to the Inventory Control manual for more information on printing and clearing the Stock Adjustments Register. Note: It is highly recommended that you print and commit both the Unreconciled Receivings Report and the Discrepancy Journal in Payables before enabling Inventory Movement. You can find instructions for clearing/committing these reports in the Payables Manual. ENABLING After you clear the necessary journals and/or reports, you can enable the Inventory Movement feature. To enable the Inventory Movement feature, complete the following steps: 1. From the Company Information menu, select Options. Select Options. 6

7 1 INTRODUCTION 2. From the Options menu, select Inventory Control. Select Inventory Control. 3. From the Company Inventory Control Options menu, select Inventory Movement. Select Inventory Movement. If you have not printed and cleared all of the appropriate reports and journals before selecting the Inventory Movement option, you will not be able to enable it. The system displays a message similar to the following, listing all of the reports, registers, or journals you need to print and clear before you enable this feature: If you receive the previous message, you must print and clear the specified journals and/or registers before you can enable the Inventory Movement feature. For a list of the journals and registers you need to print and clear, refer to the table on page 6 at the beginning of the Before Enabling Inventory Movement section. After you print and clear these reports, select the Inventory Movement option again to enable it. 7

8 1 INTRODUCTION Important! If Lib-Update has not successfully generated the files needed for the Inventory Movement feature, a warning message appears when you select the Inventory Movement option, indicating that certain files need to be created by Lib-Update. In this case, stop the system and run Lib-Update from the jump to box. For more information on running Lib-Update, refer to the System Administration manual. When you select Inventory Movement, the system displays a disclaimer message: Important! As indicated in the previous message, you cannot use Inventory Movement with Secondary Processing. 8

9 1 INTRODUCTION Using the Inventory Movement feature successfully involves implementing rigid daily and monthly procedures. In addition, because inventory movement uses many different areas of the software, it is extremely important that you understand it thoroughly. The disclaimer message reminds you of these issues, and prompts you to receive training on the Inventory Movement package before you enable it. Therefore, we strongly suggest that you attend a Prophet 21 University class on Inventory Movement prior to enabling it. To enable this feature, press any key to continue. The following screen appears: Inventory Movement and Balance... determines whether the Inventory Movement feature is enabled. When this option is set to: Y the system enables the Inventory Movement feature. N the system does not enable the Inventory Movement feature. Include DS & PD Costs in Invoice Reg. Invt. Costs... determines whether the system includes stock and nonstock values from Direct Ship and Pick Up and Deliver customer orders on the Monthly Invoice Register. When this option is set to: Y the system includes the values of stock and nonstock Direct Ship and Pick Up and Deliver customer orders in the Stk-Inv-Cost and NS-Inv-Cost totals on the Monthly Invoice Register. If you enabled the COGS (Cost of Goods Sold) Autobatch, the system then takes these values from the Monthly Invoice Register and includes them in this autobatch. When you post the COGS autobatch to the ledger, the system posts these values to the stock and nonstock inventory and COGS accounts on the ledger. N the system does not include stock and nonstock values of Direct Ship and Pick-Up and Deliver customer orders in the Stk-Inv-Cost and NS-Inv-Cost totals on the Monthly Invoice Register. Instead, the system enters a stock or nonstock adjustment code of 98 on the Stock or Nonstock Adjustments Register to account for this reduction of inventory. You might want to set this option to N if you do not want to post the values of your Direct Ship and Pick Up and Deliver orders to your regular inventory account. By tracking reductions in 9

10 1 INTRODUCTION your inventory from your DS and P&D invoices through the Stock and Nonstock Adjustments Autobatches, you can post code 98s to separate DS and P&D inventory and COGS accounts. If you set this option to N, when you enter your vendor invoices for DS and P&D material, you need to make sure you are debiting the same DS and P&D inventory to which you posted the code 98. You have now successfully enabled the Inventory Movement feature! AFTER ENABLING After you enable Inventory Movement, the system adds new reports to your system, and updates existing system reports. For more information on the new Inventory Movement reports, refer to the following section, New Inventory Movement Journals/Reports on page 10. For information on the updated existing system reports, refer to the section, Updated Existing Reports on page 11. NEW JOURNALS/REPORTS After you enable Inventory Movement, the system adds the following reports to your system: Journals/Reports Nonstock Adjustments Register Nonstock Inventory Value Report Nonstock Cost Change Register Inventory Balance Report Module ITEM ADJUST EXPEDITE ORDER EXPEDITE ORDER ITEM LIST 10

11 1 INTRODUCTION UPDATED EXISTING REPORTS In addition to adding new system reports, enabling the Inventory Movement feature also updates some of the existing system reports. Before you enabled the Inventory Movement feature, the system added the stock and nonstock inventory costs together, and grouped the sum of these costs in the column, Invt Cost, on the Material Received Register and the Monthly Invoice Register. After enabling the Inventory Movement feature, the system displays the stock and nonstock inventory costs in two separate columns (Stk Invt-Cst and NS Invt-Cst) on these reports. MATERIAL RECEIVED REGISTER Stk Invt-Cst and NS Invt-Cst appear. 11

12 1 INTRODUCTION MONTHLY INVOICE REGISTER Stk-Invt-Cost and NS-Invt-Cost appear. Proceed to the next chapter, Getting Started to print and clear the new inventory movement reports, and to set up cost change codes. 12

13 2 GETTING STARTED After you have successfully enabled the Inventory Movement feature, you need to complete the following in order to use this feature properly: Print and clear the journals and reports that the system added when you enabled the Inventory Movement feature, except the Inventory Balance Report and the Nonstock Inventory Value Report Post inventory value to the Inventory Balance Report from the Inventory Value Summary Report and the Nonstock Inventory Value Report Enter and assign system and user-defined item cost change codes PRINTING AND CLEARING OR COMMITTING THE NEW REPORTS You need to print, and clear or commit the following reports after you enable the Inventory Movement feature. If you previously enabled the Inventory Movement feature, disabled it, and then enabled it again, you might still have inventory information on these reports that you need to clear in order to start with a clean month. This section describes the procedures involved in clearing or committing the following reports: Nonstock Adjustments Register Nonstock Cost Change Register Important! You must have Q-Mode enabled to clear or commit these reports. 13

14 2 GETTING STARTED PRINT AND CLEAR THE NONSTOCK ADJUSTMENTS REGISTER To print the Nonstock Adjustments Register, select the NS Register option from the Item Adjust menu: Select NS Register. On the Printer Options screen, select the printer you want. Select the kind of information and the report s layout on the following screen: Each time a nonstock adjustment takes place in the system, it is assigned an adjustment number. These adjustment numbers appear on the Nonstock Adjustments Register, and can be used to limit future printings of the register. The register can also be limited by adjustment code. For more information on nonstock adjustment codes, refer to the section, Post Nonstock Adjustment Codes to Specific Accounts for Nonstock Inventory Adjustments on page

15 2 GETTING STARTED Complete the parameters on the following screen: When you press [Enter] at the Field prompt, the system prints the Nonstock Adjustments Register, similar to the following: 15

16 2 GETTING STARTED The system prints a Nonstock Adjustment Summary after the Register, displaying branch and company totals, similar to the following: After you print the Register, the system prompts you to clear the register. Type CL to clear it: When you press [Enter], the system clears the report and posts the totals of the register to an autobatch. The system displays the message Creating Autobatches, Please Wait, and returns you to the Item Adjust menu. You have successfully cleared the Nonstock Adjustments Register. Note: If the system doesn t prompt you to clear the register, you probably don t have Q-Mode enabled. In this case, enable Q-Mode and reprint the Register. PRINT AND CLEAR THE NONSTOCK COST CHANGE REGISTER When you edit the cost or unit size of an allocated nonstock item on a customer order or return in Expedite Order or a vendor return in Expedite Return, the system automatically records these cost changes on the Nonstock Cost Change Register. To print and clear the Nonstock Cost Change Register, enable Q-Mode and select the NS Inventory Value Reports option from the Expedite Order menu: Select NS Inventory Value Reports. 16

17 2 GETTING STARTED From the NS Inventory Value Reports menu, select Cost Change and press [Enter]. Select Inventory. On the Printer Options screen, select the printer you want, and print the report accordingly. The system prints the report, similar to the following: After you print the report and press [Enter], the system prompts you to clear the report: When you press [Enter], the system clears the report and posts the totals of the register to an autobatch. The system displays the message Creating Autobatches, Please Wait, and returns you to the Expedite Order menu. You have successfully cleared the Nonstock Cost Change Register. Note: If the system doesn t prompt you to clear the register, you probably don t have Q-Mode enabled. In this case, enable Q-Mode and reprint the register. UPDATE THE INVENTORY BALANCE REPORT WITH ENDING INVENTORY VALUES After you printed and cleared or committed the Nonstock Adjustments Register, the Nonstock Cost Change Register, and the Unreconciled Receivings Report, you need to update the Inventory Balance Report with the values from the Inventory Value Summary Report and the Nonstock Inventory Value Report. To update the Inventory Balance Report with these values, you need to print the Inventory Value Summary Report and the Nonstock Inventory Value Report, making sure that the Update Inventory Balance Report parameter is set to Y. This updates the Inventory Balance Report with your ending stock and nonstock inventory values. In addition, you must set the other report parameters accordingly to accurately update the Balance Report. For more information on setting these parameters, refer to the following two sections, Print the Inventory Value Summary Report on page 17, and Print the Nonstock Inventory Value Report on page 19. PRINT THE INVENTORY VALUE SUMMARY REPORT One of the most important source reports you need to print in order to accurately update the Inventory Balance Report is the Inventory Value Summary Report. 17

18 2 GETTING STARTED From the Item List module, select Inventory. From the Inventory menu, select Inventory Value. From the Inventory Value menu, select Value Summary: Select Value Summary. On the Printer Options screen, choose the printer you want. After you enable the Inventory Movement feature, the Update Invt. Balance Report parameter appears on the print parameter screen for the Inventory Value Summary Report. Make sure you set this parameter to Y, so that you can print an updated and accurate Inventory Balance Report: The Update Invt. Balance Report field displays. Update Invt. Balance Report... determines whether the system updates the Inventory Balance Report with the information from the Inventory Value Summary Report. If this parameter is set to: Y the system updates the Inventory Balance Report with the information from the Inventory Value Summary Report. You should only set this option to Y at month s end when you want to update and print the Inventory Balance Report. Important! When you set this option to Y, you must set the Report By field to CO (Company), and the Loc Detail field to Y. In addition, you must also set open parameters for this report. N the system does not update the Inventory Balance Report with the information from the Inventory Value Summary Report. You should set this option to N when you re not updating and printing the Inventory Balance Report. 18

19 2 GETTING STARTED When you complete the parameters on this screen, the system prints the Inventory Value Summary Report, similar to the following: For more information about the Inventory Value Summary Report, refer to the Item Reporting manual. PRINT THE NONSTOCK INVENTORY VALUE REPORT Nonstock inventory holds value when it is allocated to a customer order, customer return, vendor return, or transfer. Your nonstock inventory value is affected under the following circumstances: When a nonstock item is allocated to or unallocated from a customer order, customer return, vendor return, or transfer If you change the cost or unit size of the nonstock item while it is allocated to one of the previous transactions The Nonstock Inventory Value Report displays allocated nonstock items on customer orders, unreceived nonstock material on transfers, and unconfirmed nonstock quantities on vendor returns. You can print a Nonstock Inventory Value Report in the Expedite Order module. From the Expedite Order menu, select NS Inventory Value Reports: Select the NS Inventory Value Reports option. 19

20 2 GETTING STARTED On the following screen, select Inventory: Select the Inventory option. On the following parameter screen, make sure you set the Update Invt. Balance Report option to Y, similar to the following: Set the Update Invt. Balance Report option to Y. Seq... determines whether you are sorting the report by customer order number, sales rep number, customer code, or taker number. Start, End... specifies the range of the sequence you selected. For example, if you select to limit the report by customer code, you would enter the first and last customer code in the range in the Start and End parameters, respectively. Starting Order Date... specifies the oldest order date in the range of orders that you want to include on the report. For example, if you want to limit the report to all orders that have an order date between 8/10/99 and the current date, enter 08/10/99 in this field. 20

21 2 GETTING STARTED Date-Reqd Cut Off... specifies the most current date of the order required dates in the range of orders that you want to include in the report. For example, if you want to limit the report to all orders with a required date of 9/05/99 and before this date, enter 09/05/99 in this field. Cust Class Start, End... specifies the range of customer classes you want to include in the report. Report By... determines whether the report encompasses a single branch, location, or the entire company. Br #/Loc #... holds a stocking location (or branch) on which to base the report generation. To generate the report on a specific location, enter the location number in this field. To generate the report on a specific branch, enter the branch number in this field. This field is activated only if you enter the Location or Branch value in the Report By field. If Report by COMP (company) is selected, this field defaults to the ALL value. Select Features Totals Only... determines whether you only include total costs on the report. If this field is set to Y the report only displays totals by product group N the report displays specific order information Show Costs... determines individual costs of your nonstock items appear on the report. If this field is set to Y the report displays unit costs of nonstock items N the report does not display unit costs of nonstock items Show PO data... determines whether purchase order information will be included on the report. If this field is set to Y the report displays purchase order information N the report does not display purchase order information Brief Format... determines whether general or detailed information about your nonstock inventory appears on the report. If this field is set to Y the report displays general information about your nonstock inventory N the report displays full, detailed information about your nonstock inventory 21

22 2 GETTING STARTED Show Desc 1... determines whether the contents of the Desc 1 field for nonstock items will be included on the report. If this field is set to Y the report displays Desc 1 information of nonstock items on this report N the report does not display Desc 1 information of nonstock items on this report Nonstock Valuation Parameters Exclude Credits... determines whether credit information will be included on the report. If this field is set to Y the report does not display credit information of nonstock items on this report N the report displays credit information of nonstock items on this report Include Ship Detail... determines whether ship detail information will be included on the report. If this field is set to Y the report displays shipment information about the nonstock items on this report N the report does not display shipment information about the nonstock items on this report Include Assembly Headers... determines whether assembly header information will be included on the report. If this field is set to Y the report displays assembly header on this report N the report does not display assembly header information on this report Update Invt. Balance Report... determines whether the system updates the Inventory Balance Report with the information on the Nonstock Inventory Value Report. If this field is set to Y the system updates the Inventory Balance Report with the information from the Nonstock Inventory Value Report. Make sure you only set this parameter to Y at month s end when you want to update and print the Inventory Balance Report. Important! In order to enable this option, you must set the Brief parameter to N. In addition, you should make sure that you set open parameters for the Nonstock Inventory Value Report. N the report does not update the Inventory Balance Report with the information on the Nonstock Inventory Value Report For more information on the Inventory Balance Report, refer to page

23 2 GETTING STARTED NONSTOCK INVENTORY VALUE REPORT: SAMPLE The following is a sample of the Nonstock Inventory Value Report: COST CHANGE CODES After you ve cleared the new Inventory Movement reports and posted your inventory value, you need to enter and assign item cost change codes. Cost changes to both stock and nonstock items affect your inventory value. Assigning each cost change a specific code accounts for that change in your system. When a cost change code is assigned, the system makes an entry on the Item Cost Change Register, which is organized by code. Cost change codes represent the kinds of cost changes you make to your items in the system. When you change an item s cost, the system either prompts you to manually assign a cost change code to account for the change you made, or it automatically assigns a cost change code to account for the change. The way the system assigns cost change codes depends on the specific circumstances under which you made the change. 23

24 2 GETTING STARTED SYSTEM COST CHANGE CODES There are six system cost change codes (77, 88, 94, 95, 98, 99). The system automatically assigns a system cost change code under specific circumstances. Before the system can assign these cost change codes, however, you must manually enter them in the system. It is very important that you enter the six system cost change codes immediately after enabling the Inventory Movement feature. Doing so ensures that the system assigns the appropriate cost change codes to the cost changes on the Stock and Nonstock Cost Change Registers. For more information on system cost change codes, refer to the section, Enter System Cost Change Codes on page 24. Caution! If you do not enter cost change codes after enabling Inventory Movement and a cost change occurs, the system will not associate the cost change with any code on the registers. USER-DEFINED COST CHANGE CODES User-defined cost change codes are codes that you set up to account for item costs or unit sizes that you manually edit in the Item record. These codes allow you to identify the reason why you are making this change. When you manually edit an item s cost or unit size in the Item record, the system prompts you to assign a cost change code that identifies why you are making this cost change. ENTER SYSTEM COST CHANGE CODES The following table displays the six system cost change codes, and the specific circumstances under which the system assigns them to cost changes. Use these descriptions to define your cost change codes in the Auxiliary Table module. Important! If you don t define your cost change codes, the system will still assign cost changes to the correct codes and will include these values in the total amounts on the Cost Change Register. Without descriptions, however, you won t be able to easily understand to what cost changes the codes refer on the report. Therefore, we highly recommend that you enter cost change code descriptions. 24

25 2 GETTING STARTED Cost Change Code Description When Assigned 77 Nonstock cost changes The system assigns this code when you change the cost or the unit size of an allocated, nonstock item in Expedite Order or Expedite Return. If you change the cost or unit size of a nonstock item, the inventory value of that item changes. Therefore, you must update the GL inventory account accordingly. This code debits inventory and credits your cost change or COGS (Cost of Goods Sold) account. Note: The only system cost change code for nonstock cost changes is code Cost changes in the Pricing module The system assigns this code under the following circumstances: You update the Item file via a diskette, and the value of the Cost Basis field, set to either standard or moving average cost, changes to a new cost There is an on-hand quantity of that item when the Cost field is updated If the above circumstances are true, the inventory value of that item changes. Therefore, this change must be reflected on the ledger. This code debits inventory and credits the cost change / COGS account. 94 Cost changes in the Material module due to variances in vendor returns This code is assigned to any variance between the stock item cost on the vendor return and the item cost value set in the Cost Basis field in the Inventory Control Company Options. When a vendor return is confirmed in the Material module and a cost variance exists, a Code 94 entry is placed on the Item Cost Change Register. 25

26 2 GETTING STARTED 95 Cost changes from Material Receipts Reconciliation in Payables The system assigns this code if your cost basis is MAC, and you change the invoice cost during the payable process using material receipts reconciliation. Moving average cost is updated when there is a difference between the invoice cost and the purchase order amount. This code should debit inventory and credit the same account that is set up as the debit account on your Payables Discrepancy Journal autobatch (usually an A/P discrepancies account). 98 Cost changes in the Material module The system assigns this code if the following circumstances are true: Your cost basis in the Company module is set to STND Material is received and the standard cost of the item is different than the purchase order cost If the above are true, the cost change code accounts for the difference between the standard cost and purchase order cost. The entry of this code balances your standard inventory value to your ledger, due to the fact that you reconcile the purchase order cost to the invoice cost. The invoice cost affects your ledger. This code debits inventory and credits a cost change / COGS account. Note: This code does not appear on the Inventory Balance Report. 26

27 2 GETTING STARTED 99 Cost changes in the Material module (updating moving average cost) The system assigns this code if the following circumstances are true: Your cost basis is set to C- AVG; or, your cost basis is set to L-AVG, but the location s moving average cost is equal to zero An item s value is changed because it was received at another location For more information about calculating your moving average, refer to Appendix A: Cost Change Code 99 on page 59. Before the system can assign these cost change codes to cost changes you make in the system, you need to manually enter these codes in the system. Select Item/Catalog from the Auxiliary Tables menu. Select Cost Change Codes. Select the Maintenance option. After you select the Maintenance option, press [Enter]. The system prompts you to enter a cost change code. Press [Insert] to change to Add mode as shown on the right side of the screen. Enter one of the six system cost change codes displayed in the previous table, similar to the following: When you press [Enter], the system prompts you to enter a description for the cost change code you entered. In the Description field, enter a relevant description, similar to the following: Note: Because the system assigns cost change code 77 when you change the cost or the unit size of an allocated, nonstock item, a good description of this code is Nonstock Cost Changes. 27

28 2 GETTING STARTED Press [Enter] to enter another cost change code. After you complete entering your system cost change codes, you can view the codes you entered from the Cost Change Code Browse. Press [F4] to return to navigation mode. At the Cost Change Code field, perform a dot scan ([.] and [Enter]) to view the system cost change codes you entered: Proceed to the next section, Enter User-Defined Cost Change Codes to enter your user-defined cost change codes. ENTER USER-DEFINED COST CHANGE CODES User-defined cost change codes allow you to identify the reason why you are changing an item s costs. When you manually edit an item s cost in the Item record, the system prompts you to assign a cost change code that identifies why you are making this cost change. You should assign at least one user-defined cost change code in the system. To enter item cost change codes, select Item/Catalog from the Auxiliary Tables menu. Select Cost Change Codes. Select the Maintenance option. 28

29 2 GETTING STARTED After you select the Maintenance option, press [Enter] to view the Item Cost Change Code Maintenance frame. Press [Insert] to move into Add mode. The system prompts you to enter a cost change code, similar to the following: When you press [Enter], the system prompts you to enter a description for the cost change code you entered. In the Description field, enter a relevant description, similar to the following: Press [Enter] to enter another cost change code. After you complete entering your system cost change codes, you can view the codes you entered from the Cost Change Code Browse. Press [F4] to return to navigation mode. At the Cost Change Code field, do a dot scan ([.] and [Enter]) to view the system cost change codes you entered: Cost Change Code... number that identifies the item cost change code. You can enter a new cost change code, or press [.] [Enter] to access the Cost Change Code Scan and select the code you want accordingly. When you enter a code that already exists, the description appears automatically in the Description field. You can delete an item cost change code by pressing [Ctrl] [D] after you enter the Cost Change Code. The system deletes the entry and returns you to the Cost Change Code prompt. 29

30 2 GETTING STARTED ASSIGN USER-DEFINED COST CHANGE CODES Unlike system cost change codes, when you make a cost change that falls under a user-defined category, the system prompts you to enter an appropriate cost change code. The system prompts you to enter a cost change code when you make the following changes in the system: Edit the unit size of an item The system prompts you to assign cost change codes when you edit the cost basis or unit size of an item in Item Maintenance or Location Price/Cost Maintenance. In addition, if you change your stock item costs or unit sizes in the process of updating your stock items with catalog item information, the system prompts you for cost change codes as well. Edit the cost of an item while you re performing the following in the system: Manually editing the item in the Item record Performing a pricing service update Performing a catalog to item update Using the Fast Edit option from the Item module Using the Multiply option from the Item module Edit the cost basis of an item For example, if your cost basis is set to STND (standard) and you edit the MAC of the item, the system does not prompt you to enter a cost change code. However, if your cost basis is set to STND and you edit the standard cost of the item, the system will prompt you to enter a cost change code. Important! If your cost basis is set to FIFO and you change the cost of a FIFO layer, the system does not prompt you to enter a cost change code. For more information on FIFO, refer to the FIFO Inventory Costing manual. 30

31 2 GETTING STARTED Defining Your Cost Basis You define your cost basis on the Company Inventory Control Options screen (Company / Options / Inventory Control). The four different cost basis methods are the following: 1. STND 2. L-AVG 3. C-AVG 4. FIFO For more information on defining your cost basis, refer to the Company Setup manual. Item Maintenance / Location Price/Cost Maintenance Depending on the setting of the Cost Basis field in the Company Inventory Control options, the system prompts you to enter a cost change code when you edit the standard cost, the moving average cost, or the unit size of an item in Item Maintenance or Location Maintenance. 31

32 2 GETTING STARTED In Item Maintenance, a Cost Change Code field appears: Cost Change Code field appears. In Item Location Price/Cost Maintenance, a Cost Change Code field appears: The Cost Change Code field appears. This field is not accessible (NA) unless you edit the cost basis or unit size of an item. 32

33 2 GETTING STARTED If you edit the cost basis or unit size of an item, the system forces you to enter a cost change code in this field. After you make the change, the value in the Cost Change Code field becomes zero: The value becomes zero in this field. You cannot access any fields following the Cost Change Code field, nor exit this screen until you enter a value in this field. If you try to do so, the following screen appears: In the Cost Code Change field, enter the code that you want to assign to the cost change. You can also browse on this field and select the cost change code from the Item Cost Change Code Browse. If you edit an item s cost or unit size using the Fast Edit or Multiply options from the Item module, the system prompts you to enter a cost change code with the following screen: 33

34 2 GETTING STARTED When you press [F3] on this field, the Item Cost Change Code Browse appears, similar to the following: Select or enter the code you want in the Cost Change Code field. When you assign cost change codes while using the Item Fast Edit option, the Item Cost Change Code Assignment screen appears once and remains in effect for the duration of the Fast Edit process. UPDATING STOCK ITEMS COSTS AND UNIT SIZES WITH CATALOG ITEM INFORMATION In the process of updating your stock items with your catalog item information, the system might change your stock items costs or unit sizes with your updated catalog items costs or unit sizes. In this case, you need to assign cost change codes to account for these cost changes. Therefore, when you choose to update your stock items with catalog item information, the system prompts you to enter a cost change code. From the Catalog Information menu, select Update, and from the Update menu, choose Select. The Cost Change Code field appears, prompting you to assign a cost change code for any cost changes that might occur during the update. When you complete the information on this screen, it appears similar to the following: The system prompts you to enter a cost change code. 34

35 2 GETTING STARTED Using the example on the previous screen, the system will assign a cost change code of 2 for any cost changes that occur during the catalog to item update. 35

36 3 AUTOBATCHES GENERAL INFORMATION ON AUTOBATCHES When inventory activity occurs in your system, the system creates an entry on the appropriate report or register. (For example, when you make a stock adjustment, the system creates an entry on the Stock Adjustments Register.) When you print and clear or commit that report/register, the system posts the change or adjustment to a specific autobatch. Eventually, the system includes the value of this adjustment on your ledger when you post the autobatch (provided you set one up). We highly recommend that you set up the following inventory movement autobatches. Autobatches allow you to easily and efficiently post values to the ledger. If you don t set up autobatches, you will have to manually post the values of your source reports to the ledger. Posting autobatches ensures more accurate values on the ledger than manually posting these values. For more information on manually posting the values of your source reports to the ledger, refer to the Ledger manual. Note: To balance your inventory accounts and maintain an accurate inventory value for assemblies, you must manually post the total from the COST-DIFF column on the Assemblies for Stock Adjustments Register to the associated inventory and COGS accounts on the ledger. This is only relevant if you enabled the Assemblies and Lot Billing package. For more information on manual postings, refer to the Ledger manual. AUTOBATCHES There are several autobatches for many different areas of the system (e.g., sales tax, payroll, salesman commissions, etc.). However, there are nine specific autobatches that are either created or are affected by the Inventory Movement feature. You need to make sure you set up default debit and credit accounts for these autobatches, to which the system posts the specified inventory activity. The system accounts for these changes, adjustments, and general inventory activity when you post these autobatches to the ledger. In addition to specifying default debit and credit accounts, you can also set specific debit and credit accounts for five out of the nine autobatches, to which the system posts a specific adjustment code, cost change code, or product group. These autobatches are indicated by a checkmark in the Specific Accounts column of the following Inventory Movement Autobatches Table. 36

37 3 AUTOBATCHES AUTOBATCHES TABLE This table provides the following information: Name of the Inventory Movement Autobatch Page number on which you can find more information about the values associated with each autobatch Source report from which the system posts the inventory activity to the autobatch Location of the source report in the system (i.e., module, menu name and options) Autobatch Page Source Report Location of Source Report in System Cost of Goods Sold (CSLD) Item Cost Changes (CCHG) 38 Monthly Invoice Register Invoice / Monthly Register 40 Item Cost Change Register Item / Registers / Cost Change Nonstock Item Cost Changes (NSIC) Stock Item Adjustments (ADJ) Nonstock Inventory Adjustments (NSAJ) Cost Edit Variances (CVAR) 41 Nonstock Item Cost Change Register 42 Stock Adjustments Register 46 Nonstock Adjustments Register 48 Invoiced Cost Edit Variance Report Expedite Order / Nonstock Inventory Value Reports / Cost Change Item Adjust / Register Item Adjust / NS Register Item List / Inventory / Inventory Value / Invoiced Received Value of Transfers (RTRN) 49 Material Received Register Material / Reports / Material Received Register PO Cost Discrepancies (POCD) Uninvoiced Material Accrual (UMAC) 49 Payables Discrepancy Journal 50 Unreconciled Receivings Report Payables / Management Reporting / Discrepancy Journal Payables / Management Reporting / Receivings List - Unreconciled Important! 1. There is no autobatch for the Assembly for Stock Adjustments Register. 2. Make sure that the Autobatch? field on the default screen of every Inventory Movement autobatch is set to Yes. 37

38 3 AUTOBATCHES CSLD - COST OF GOODS SOLD AUTOBATCH DEFAULTS Set the Autobatch? field to Yes. Note: For more information on the fields on the previous screen, refer to the Ledger manual. Enter Default Debit and Credit Accounts for Cost of Goods Sold On the Cost of Goods Sold Autobatch Defaults screen, enter a default debit and credit account. The system debits the cost change from the debit account and credits it to the credit account. You should set the default stock credit account to a stock inventory account, and the default stock debit account to an expense account, such as Cost of Goods Sold. You should set the default nonstock credit account to a nonstock inventory account, and the default nonstock debit account to an expense account, such as Cost of Nonstock Goods Sold. Autobatch Your CSLD While Invoicing A Company Accounting option, Autobatch While Invoicing, allows you to determine whether you need to print and clear the Monthly Invoice Register to enter the invoice on the autobatch, or whether the system automatically enters the invoice on the Monthly Invoice Register and the autobatch simultaneously. If you enable this option, the system enters the invoice on the Monthly Invoice Register and the autobatch simultaneously. If you do not enable this option, you must print and clear the Monthly Invoice Register to enter the invoice on the autobatch. To access this option, select Options from the Company Information menu, and Accounting from the Options menu. For more information on this company option, refer to the Company Setup manual. Post Product Groups to Specific Accounts for Cost of Goods Sold In addition to entering default debit and credit accounts for your cost of goods sold, you can also set up specific debit and credit accounts for specific product groups. If the Ship Product Group Summary option from the Company Order Processing Options menu is set to Y, you can autobatch the cost of goods sold by ship branch product group. 38

39 3 AUTOBATCHES After you complete the fields on the Cost of Goods Sold Autobatch Defaults screen, the system prompts you to enter account numbers for each product group. A screen similar to the following appears: Enter a specific product group. Product Group... specifies the product group of items whose cost of goods sold the system posts to the specified debit and credit stock or nonstock accounts. The system posts the values of stock items in this product group to the specified stock debit and credit accounts, and the values of nonstock items in this product group to the specified nonstock debit and credit accounts. For example, on the previous screen, the system posts the values of all cost of goods sold stock items in product group 999 to the debit account , and the credit account It posts the values of all cost of goods sold nonstock items in product group 999 to the nonstock debit account , and the nonstock credit account Stock Item Account #s Debit... specifies the debit account to which the system posts the values of cost of goods sold stock items in the specified product group. When you post the CSLD autobatch, the system posts the stock items sold in this product group to this debit COGS account. Credit... specifies the credit account to which the system posts the values of cost of goods sold stock items in the specified product group. When you post the CSLD autobatch, the system posts the stock items sold in this product group to this credit stock inventory account. Nonstock Item Account #s Debit... specifies the debit account to which the system posts the values of cost of goods sold nonstock items in the specified product group. When you post the CSLD autobatch, the system posts the nonstock items sold in this product group to this debit nonstock COGS account. 39

40 3 AUTOBATCHES Credit... specifies the credit account to which the system posts the values of cost of goods sold nonstock items in the specified product group. When you post the CSLD autobatch, the system posts the nonstock items sold in this product group to this credit nonstock inventory account. If you do not enter a specific product group and debit and credit accounts on the Autobatch Cost of Goods Sold by Product Group screen, the system posts the stock and nonstock cost of goods sold values to the debit and credit accounts specified on the main Cost of Goods Sold Autobatch Defaults screen for all product groups. CCHG - ITEM COST CHANGES AUTOBATCH DEFAULTS Set the Autobatch? field to Yes. Enter Default Debit and Credit Accounts for Cost Changes On the Item Cost Changes Autobatch Defaults screen, you can create a default debit and credit account and enter your cost change codes in these accounts accordingly. You should set the default debit account to an inventory account, and the default credit account to an expense account, such as Stock Cost Changes or Cost of Sales. You can set the default credit account to some other expense account of your choice. Post Specific Cost Change Codes to Accounts for Cost Changes Instead of using the default debit and credit accounts for cost changes, you can have the system post a specific cost change code to a separate debit and credit account. These codes include the system cost change codes, and any user-defined cost change codes you entered in the system. For more information about cost change codes, refer to page

41 3 AUTOBATCHES When you complete the parameters on this screen, the Autobatch Cost Change by Cost Change Code screen appears, similar to the following: Cost Change Code... specifies the cost change code that you want the system to post to a separate debit and credit account. When you post the Item Cost Change Autobatch, the cost changes associated with this code are posted to the specified debit and credit accounts. Debit... specifies the debit account to which you want to post the specified cost change code. When you post the Item Cost Change Autobatch, the cost changes associated with the specified code are posted to this debit account. Credit... specifies the credit account to which you want to post the specified cost change code. When you post the Item Cost Change Autobatch, the cost changes associated with the specified code are posted to this credit account. NSIC - NS ITEM COST CHANGE AUTOBATCH DEFAULTS Set the Autobatch? field to Yes. Enter Debit and Credit Accounts for Nonstock Cost Change Code 77 When you edit the cost or unit size of an allocated nonstock item in the Expedite Return and Expedite Order modules, the system assigns a nonstock cost change code of 77 and enters this code on the Nonstock Cost Change Register. On the NS Item Cost Changes Autobatch Defaults screen, create a default debit and credit account to which the system will post nonstock cost change code 77. You should set the default debit account to a nonstock inventory account, and the default credit account to an expense account, such as Nonstock Cost Changes or Cost of Nonstock Sales. You can also set the default credit account to some other expense account of your choice. 41