|
|
 home |
 download |
 help |
 buy now |
 contact us |
|
|
||||||||
|
|
In Chapter 5—Inventory, basic functions of the Inventory module were explained. In this chapter, you will find instructions for more advanced applications of these functions—such as procedures for carrying out cycle counts, physical inventories, and managing multiple warehouses.
According to the Educational Society for Resource Management, a cycle count is “an inventory accuracy audit technique where inventory is counted on a cyclic schedule rather than once a year. A cycle inventory count is usually taken on a regular, defined basis. Most effective cycle counting systems require the counting of a certain number of items every workday with each item counted at a prescribed frequency. The key purpose of cycle counting is to identify items in error, thus triggering research, identification, and elimination of the cause of errors.”[1]
Based on the specific characteristics of your company, you need to establish a system for conducting cycle counts. For instance, you might count a different location every day or you might count a certain item on a certain day. One option that some users of Almyta Control System prefer is to set up the “Center Code” list as a means of classifying inventory items by how quickly they move. For example, each item may be assigned a letter of the alphabet with “A” designating the fastest moving items and “E” designating the slowest moving items. This system of classification allows you to generate a report for fast-moving items only and to count these items more frequently than you count slow-moving items since it is more likely that there will be errors among the fast-moving items than among the slow-moving ones. See section 3.2 for information on setting up the “Center Codes” list.
After choosing a system, the actual count is simple using Almyta Control System. Follow the steps listed below.
1. Print out a report of the items you plan to count. First, select “Inventory” under “Reports” on the main menu bar.
2. Choose the “Items in Stock” report. On the filter and sort screen that appears, set the filter to display only items from a particular location or from a particular category. Your filter settings will depend on how you have decided to organize your cycle counts. For example, if each day you count the items in a different location, you need to print a report that displays only the items in the location that you plan to count today.
3. After setting the filters, print the report to the screen and check to make sure it displays the information that you want. If satisfied, send the item to your printer. If not, return to the filter and sort screen to make any necessary adjustments.
4. Take the report into the warehouse and count the items. Record any differences from the figures listed on the report.
5. Return to a PC and reconcile the physical count with the report.
You need to correct the data in the Almyta Control System to reflect the results of your cycle count. Before doing this, you should be sure to have a positive adjustment code and a negative adjustment code that indicate that items were received or issued in response to a cycle count. Follow the instructions listed under the “Positive/Negative Adjustment Code Headings” in section 3.2 for setting up these lists. Listed below are the usual errors that are found in a cycle count and how to address them.
1. An item is physically present in a location but is not listed on the report.
§ If the item does not have a serial number, receive it using the adjustment code for cycle counts (see section 5.12 for instructions on performing a direct receive).
§ If the item does have a serial number, you should check to see if it was ever in your system. You can do this using the “Unit Archive” (see section 5.16). If it has been issued, you can try to figure out why it has not actually left your warehouse. Then you can re-receive it so it is appears in your system again (see section 5.12).
2. An item is listed on the report but does not appear in the specified location.
§ If the item is serialized, you can attempt to find it in obvious places in the warehouse that it may have been misplaced to. If you find it, you can either change its listing in the system to reflect its actual location (use the “Locate and Move” feature) or you can transport it to the location that it’s supposed to be in. If you are unable to find it, you should place the item on hold. This will prevent customers from ordering an item that cannot be located. Furthermore, we suggest typing in the “Remark” field that the item is lost.
§
The list of items that are on hold should be updated
frequently. It is possible that one of
the items on the list may turn up during a future cycle count. However, after the cycle count period has
expired, you will need to perform a direct issue to remove the item from your
system. See section 5.13 for
instructions on performing a direct issue.
Over time, the results of cycle counts can be used to detect errors in the procedures that your company uses.
1. Select “Inventory” under “Reports” on the main menu bar.
2. From the dropdown box that appears, choose either “Positive Adjustments” or “Negative Adjustments.”
3. On the filter and sort screen that appears, you can select the adjustment code that you use for cycle count adjustments.
The report that appears will show you all the
adjustments that were made as a result of a cycle count. Patterns that appear
in this report will help you detect errors that are being made consistently in
your warehouse. For example, if you see that every month you must make a
positive adjustment to a particular location, you know that every month when
you count the items in that location you are finding items that do not appear
in your system. Based on this information, you probably want to examine your
procedures for data entry in that location. Checking cycle count adjustments
from time to time will help you to eliminate mistakes in your procedures and
reduce the inconsistencies between the data in your system and the items in
your warehouse.
A physical inventory is similar to a cycle count except it is done far less frequently and it counts every item in your stock. Before a physical inventory can be performed, you must shut down your warehouse so that nothing is brought in or taken out between the time that you print the Items in Stock Report and the time that you finish reconciling your system. Follow the steps below to conduct a physical inventory.
Print an Items in Stock Report.
1. Select “Inventory” under “Reports” on the main menu bar.
2. Select “Items in Stock.” On the filter and sort screen that appears, do not set any filters. You need to print a report of every item in your system. In the sort field, choose “location.”
3. Print the report to your printer.
Take the report into the warehouse and count the items.
4. Assign each member of your warehouse staff to a location or set of locations in your warehouse. Give each person the report for the location(s) that he or she is supposed to inventory.
5. Each person needs to take the report for his or her location into the warehouse and count the items that appear in the location. Differences between the report and the physical contents of a location should be recorded directly on the report.
Audit your counts.
6. After the items in the warehouse have been counted, collect all the reports and perform spot checks. Randomly select one of the reports and return to the warehouse to recount the items. If the corrected report matches the physical contents of the location, proceed to the next step. If the audited report is not correct, you may want to perform several more audits to check the accuracy of your inventory.
Reconcile your system with the physical counts.
7. Once you are satisfied that your stock has been accurately counted, you need to adjust your system to reflect the physical contents of your warehouse. You can do this using direct receives/issues. Before you can adjust your system, be sure to create adjustment codes that indicate that an item was received/issued as a result of a physical inventory. See the Adjustment Codes heading of section 3.2 for information about creating and using these codes.
8. If an item is present in the warehouse but is not listed on the report, you need to perform a direct receive to enter the item into your system. See section 5.12 for instructions on this procedure.
9. If an item is not present in the warehouse but is listed on the report, you need to perform a direct issue to remove the item from your system. See section 5.13 for instructions on this procedure.
Almyta Control System can be used to manage multiple virtual warehouses. You should turn on this feature prior to entering your data for the first time. If you are just starting up and using the system for the first time, a few adjustments need to be made.
1. On the “System” tab of “Options” under “System” on the main menu, you need to check the box next to “Support Multiple Warehouses.”
2. Also under “System” on the main menu, select “System Lists” and “Company Locations.” On this tab you need to enter information for each warehouse in your system. After adding the first, simply click “Add New” for each new warehouse. When you enter the information for a warehouse, be sure to check the “Warehouse” box to the right of the screen.
3. When you set up your “Inventory Locations” list, you will be entering information about different locations within each warehouse. Follow the instructions in section 3.2 but choose a warehouse (in the field at the top of the screen) before you begin entering information about the location
4. You have two options when you perform transactions:
§
To work within more than one warehouse in a short
period of time, check the “Confirm warehouse each time” button on the
“System” tab under “Options” under “System” on the main menu. Now, each time you issue or receive items,
you will be asked to select a warehouse and then will be taken to the standard
“Issue/Receive” screen.
§
To work within the same warehouse for a period of
time, do not check the “Confirm warehouse each time” button on the “System”
tab under “Options” under “System” on the main menu. Instead, choose “Select Warehouse” under “System.” Choose the warehouse within which you are
going to be performing all of your transactions. When you are finished working in this warehouse, you can either
select a new warehouse or you can check the “Confirm warehouse each time”
button.
Almyta Control System has several features that are useful when researching an item in your system.
The “Fast Browse” function provides you with a quick overview of a list of information rather than a detailed look at an individual item. For example, you can fast browse your inventory to see a list of the items you have in stock rather than using the Item Master List to view items one at a time.
To fast browse a system, simply select a heading from the main menu bar and choose “Fast Browse” from the dropdown menu that appears. For example, if you fast browse the Inventory, a list of all the inventory items that are in stock will appear. You can use the filter field at the bottom of the screen to edit the list. Click the “Detail” button at the bottom of the screen to view more details about the highlighted item.
After units have been shipped or issued from inventory, the information about them is moved from active inventory to the unit archive. This archive allows you to search for old items and to view a unit history of each item. This feature is particularly useful in conjunction with the “Repair Orders” feature. For example, if a customer calls about a unit that needs to be repaired, you can use the unit archives to find the item ID of his or her unit. You can access the archives by selecting “Archived Units” under “Inventory” on the main menu. Then enter the known information in the appropriate fields and click “View All.” All items that fit the given criteria will be displayed. You can then locate the exact item you are looking for by clicking “Unit Detail” or “Unit History.” The “Unit Detail” screen contains information such as the receiving and issuing dates, references, warranty, the single unit cost of the items at the item of receiving and its weight. The “Unit History” screen contains the details of any major events that you have documented in Almyta Control System. For instance, if the unit has previously been returned for repair work, information about this work will be included on the “Unit History” screen.
The adjustment history shows a list of all instances of an item being received or issued. This list can be accessed in two ways:
· From the Item Master List, you can select “Positive/Negative Adjustment History” from the operation box at the bottom of the screen. Almyta Control System will display a list of all the instances in which that particular item was received and issued. This feature is especially helpful if you are trying to determine what purchase order an item was received against, when it was shipped, etc.
· From “Reports” on the main menu, you can choose to view the “Positive/Negative Adjustment History” from under “Inventory” in the dropdown box. You can filter this list according to a number of characteristics. For instance, you can choose to view only certain item numbers or to view all items that were received under a certain adjustment code.
Remember that either the report or screen can be exported
to Microsoft Excel for further analysis.
Almyta Control System will let you know which item IDs have fallen below their minimum in-stock quantity. To take advantage of this, you must set reorder levels for your inventory items. This is done by item on the Item Master List (under “Inventory” on the main menu), or you can use the “Purchasing Utilities” feature (under “Purchasing” on the main menu). The “Purchasing Utilities” screen allows you to set reorder levels globally. For example, you could use Purchasing Utilities to change the reorder levels for all items that you get from a particular supplier assuming that you want to set the same reorder level for all of the items.
After setting reorder levels, you have two choices:
· On the “Purchasing Utilities” screen, select the “Make Purchase Orders” tab, then click “View Suggested Purchase Orders.” Almyta Control System will generate purchase orders based on the reorder levels that you set and the end date that you specified. See Chapter 7—Purchasing Utilities for more information on this option.
· Under “Reports” on the main menu, select “Inventory,” then select “Items to Order.” Almyta Control System will generate a list of items that you need to order based on the reorder levels that you set. You can filter this report to display only certain item numbers or only items that come from a particular supplier. Based on this report, you will have to create purchase orders manually.