After activating Inventory Control, your first task is to use the I/C Options screen to select Inventory Control processing options.
Your choices determine how your Inventory Control system operates and the types of data that it stores and displays. You can also use the screen after setup to review your entries and, as needed, change most of them.
This topic describes the options you can select on the Processing tab in the Options screen.
Using Multicurrency Accounting
You can set up an Inventory Control system that lets you process and report receipt transactions, and set up price lists for items in all the currencies used by your company.
To use more than one currency in Inventory Control, select the Multicurrency option on the Processing tab on the I/C Options screen.
You can turn on this option only if you have already selected the Multicurrency option for the company on the Company Profile screen in Common Services .
You also specify a default rate type, such as spot rate, for converting source-currency amounts in transactions to their functional-currency equivalents.)
Important! You can select the Multicurrency option at any time, but once you select the option, you cannot change Inventory Control back to a single-currency ledger.
Mixing Multicurrency and Single-Currency Modules
If you turn on the Multicurrency option in Inventory Control, System Manager automatically turns on the Multicurrency option in Order Entry and Purchase Orders, if either or both are installed.
All other Sage 300 modules that you integrate with Inventory Control can use either single-currency accounting or multicurrency accounting.
Using Fractional Quantities
If you allow transactions that use fractional quantities (such as 0.5 dozen) in your present inventory control system and want to set up your Sage 300 Inventory Control system to do the same, select the Allow Fractional Quantities option.
Fractional quantities are useful if your inventory includes homogeneous items. (Homogeneous items are those with identical elements that can be broken down into multiple, smaller units, such as oil or grain.) These items can require a wide range of units of measure.
- Fractional quantities let you use bigger stocking units. Instead of using the smallest unit (such as ounces) as the stocking unit, use a larger stocking unit (such as pounds), and fractional quantities for amounts of less than a pound.
- Fractional quantities in BOMs. You must select the Allow Fractional Quantities option before creating BOMs that will include fractional quantities.
- Do not select fractional quantities unless you need them. If you do not intend to enter any transactions that use fractional quantities, you can simplify transaction entry by not selecting the Allow Fractional Quantities option. This means you do not have to enter decimal places for quantities, and it means that unnecessary decimal places do not appear on reports.
Note: You can select the Allow Fractional Quantities option at any time. However, once you select the option, you cannot change back.
Allowing Items at All Locations
If your company stores inventory at more than one location (for example, warehouses in different regions), you can set up the Sage 300 Inventory Control system to manage items at multiple locations.
After you enter all your inventory items and set up all the locations in Inventory Control, you need to specify which items are stored at which locations before you can start entering transactions. There are two ways you can do this. Either specify which item or group of items can be stored at each location, or permit every inventory item to be stored at all locations.
Note: All items that you transfer through a goods-in-transit location must be allowed at the GIT location that you use.
If your company has only one location, or it does not need to restrict any items from being stored at any locations, you can save time setting up your Inventory Control system by permitting every item at all locations. This allows you to start entering transactions right away involving any item at any location. (Transactions include receipts, shipments, returns, transfers, adjustments, and assemblies.)
To allow every inventory item at all storage locations, select the Allow Items At All Locations option on the Processing tab in the Options screen.
If you do not turn on this option, you must use the Location Details screen or the Locations screen to allow an item to be stored at a location before you can enter transactions for the item at the location.
Inventory Control shows an item to be stocked at a location only after you enter the first transaction (such as a receipt) involving the item at the location. If you stock the item at more than one location, the item appears on reports and in screens only at the locations for which a transaction has been entered, even if the item can be stocked at any location. For example, only after you enter the first transaction for an item at a location does the item appear in the Location Details screen or report at that location.
Note: You can turn the Allow Items At All Locations option off or on at any time. (This option is selected automatically when you install Inventory Control.)
Allowing Negative Inventory Quantities
If you allow transactions that cause an item's quantity on hand to go below zero in your present inventory control system, you can set up your Sage 300 Inventory Control system to do the same. (For example, negative quantities can result from timing problems when you enter shipments for items before entering their receipts. In this situation, your computer’s inventory figures do not match your physical inventory.)
To allow transactions that result in negative inventory levels, select the Allow Negative Inventory Levels option on the Processing tab in the Options screen.
If you do not want inventory levels to go below zero for any reason, do not select this option.
Note: You can turn the Allow Negative Inventory Levels option on or off at any time.
Allow Receipt of Non-Stock Items
Select the Allow Receipt of Non-Stock Items if you want to maintain a list of items that you purchase regularly but for which you do not maintain an inventory quantity.
Saving Transaction History for Reporting
Inventory Control can save detailed transaction records when you post, so you can print a transaction history report later. The Transaction History report lists all transactions posted for items assigned to selected account sets within a specified period.
To save transaction history for reporting, select the Keep Transaction History option on the Processing tab in the Options screen.
Note: You can turn the Keep Transaction History option on or off at any time. If you turn it off after you have used it, Inventory Control immediately stops saving transaction history, although it retains those records already collected until you clear (delete) them using the I/C Clear History screen. If you turn the option on again, there will be a gap in the collected information corresponding to the period when the option was not used.
You can export transaction history to other databases or to spreadsheets for further analysis.
If you do not save transaction history, nothing is reported in the Transaction History report.
Maintaining Transaction History
Saving transaction history uses a large amount of storage space on your computer, so you should turn this option on only when needed. To avoid wasting storage space on your computer, use the I/C Clear History screen to clear (delete) transaction history when you are finished using it. If you turn the Keep Transaction History option on then off without clearing transaction history, there will be a gap in the history records, making the information incomplete.
Prompt to Delete During Posting
Inventory Control provides an option for deleting individual transactions after posting if you do not want to save transaction information.
To delete transaction information, you must select the option Prompt To Delete During Posting, on the Processing tab in the I/C Options screen.
If you want to keep all transaction information, make sure that you turn off this option.
If you delete transactions after posting, you cannot view posted transactions or drill down to them from General Ledger.
Also, if you post transactions using the I/C Post Transactions screen (instead of from transaction entry), you cannot choose to delete them. Instead, you can remove transactions using the I/C Clear History screen.
Only Use Defined UOM
You can specify whether to use only units of measure that are defined in Inventory Control, or any units of measure for an item.
If you select the Only Use Defined UOM option, you can use only inventory units of measure that are set up on the I/C Units of Measure setup screen. This setting lets you enforce consistency for all items added after you select this option.
If you do not choose this setting, you can specify any units of measure for new inventory items—whether or not they have been added to Inventory Control.
Note: This option affects only new inventory items or new units of measure that you add to existing items. Turning on this option has no effect on existing items, unless you add new units of measure to item records.
Alternate Cost Fields
You can create two alternate cost fields to use in Inventory Control, and in Sage 300 Order Entry and Purchase Orders, if you use them with Inventory Control.
You create alternate cost fields by entering meaningful names (up to ten characters long) into the Alternate Amount 1 Name and the Alternate Amount 2 Name fields on the Processing tab in the Options screen.
Example: You could assign the name Landed to one of the alternate cost fields to indicate the nature of the amount it contains.
Names for alternate amounts can contain uppercase letters, numbers, blanks, symbols (such as @ and #), and punctuation marks (such as ? and !).
Alternate cost fields appear in the I/C Location Details screen with the names you assign to them. These fields appear on and are used by the following Inventory Control reports: Location Details, Item Status, Markup Analysis, Selling Price/Margin Analysis.
Sage 300 Order Entry and Purchase Orders
Order Entry and Purchase Orders use alternate costs as the basis for tax calculations when taxes are charged on costs, if you select an alternate cost as the tax base for the tax authorities.
Use the Tax Authorities screen in the Tax Services folder of Common Services to select an alternate cost as the tax base for a tax authority.
Default Weight Unit of Measure
You can choose the weight unit of measure which is the basic or standard unit that you use for measuring the weight of your inventory items—such as pounds or kilograms.
You specify a default weight unit of measure using the Default Weight UOM field on the I/C Options screen.
Note: Usually, you will add weight units of measure after choosing inventory options, but before adding item records. You can add as many weight UOMs that you need for your items, along with conversion factors to convert different UOMs to the default unit.
If you use Inventory Control with Order Entry, Order Entry uses the weights you supply in Inventory Control to estimate the total weight of each order in the unit of weight you specify here. Order Entry uses the estimated total weight of an order to calculate the cost of shipping the order.
If you use Inventory Control with Purchase Orders, Purchase Orders can use the weight unit of measure you supply in Inventory Control to prorate (distribute) additional costs on orders.
Handling Additional Costs on Receipt Returns
When you post a receipt return transaction to record the return of goods to suppliers, Inventory Control can treat any additional costs assigned to the receipt in either of two ways. It can automatically prorate any additional cost assigned to the goods being returned over the remaining goods on the receipt, or leave the additional cost on the receipt. (Freight charges and duty charges are two examples of additional costs.)
You use the Additional Cost For Items On Receipt Returns field to specify how to handle additional costs, as follows:
- To have the program prorate the additional cost on receipt returns to the remaining items on the receipt, select Prorate for this option.
- To have the program leave the additional cost assigned to the goods being returned, select Leave for this option. Use the I/C Adjustments screen to reassign to another general ledger account the additional cost that was assigned to the items being returned.
You can change your selection for this option at any time, and you can override your choice for this option when entering receipt returns using the I/C Receipts screen.
Note: If you return all of the items on a receipt, you must use the I/C Adjustments screen to reassign to another general ledger account the additional cost that was specified on the receipt.
Default Goods In Transit Location
A goods-in-transit location is a virtual location where you store goods while they are in transit. This allows you to more closely match the transfer process, where goods may be on trucks or in transit for days or weeks at a time.
Each time you transfer goods between inventory locations, you can choose to transfer goods:
- Directly (and immediately) to the destination location.
- Using a goods-in-transit location.
Goods in transit are moved to the GIT location first, and then are received at the destination location. This means that goods can travel on different trucks and be received in separate lots. It also means that goods can stay in transit indefinitely.
A goods-in-transit location is treated just like any other inventory location, so you can check item quantities in transit.
Keeping Item Statistics
Inventory Control can save item statistics from transactions posted for your inventory items, and display this information or print it on the Sales Statistics and Transaction Statistics reports.
Select the Keep Item Statistics option if you want to accumulate statistics from posted transactions.
Inventory Control retains transaction and sales statistics from the transactions processed for up to 53 periods per year, for any number of years. (Sage 300 Standard is limited to accumulating statistics by fiscal year and fiscal period.)
Inventory Control uses these statistics to produce the Transaction Statistics report and the Sales Statistics report. You can print the statistics for an item by period and year, as far back as the oldest year and period for which you keep this information.
You can turn on or turn off the Keep Item Statistics option at any time. If you turn off the option, Inventory Control immediately stops saving statistics, although it retains those already collected until you clear (delete) them using the I/C Clear History option. If you turn the option on again, there will be a gap in the statistics corresponding to the period when the option was not used.
Organizing Statistics
You also specify whether to accumulate the statistics by fiscal year or calendar year.
The Accumulate By and Period Type fields let you choose whether to report period statistics by fiscal year or calendar year, and to specify the period type to use.
If you choose to accumulate by calendar year, the starting date for statistics will be January 1st. If you choose to accumulate by fiscal year the starting date will be the first day of your fiscal year.
You also specify the type of period by which the statistics are totaled and reported—weekly (Sunday=day 1), seven days (beginning on the first day of the week in your fiscal calendar), bi-weekly (Sunday=day 1), four weeks, monthly, bi-monthly, quarterly, semi-annually, annually, or fiscal period (if you select Fiscal Year for the Accumulate By option) (use the Period Type option).
You can change the type of year and period by which Inventory Control reports statistics, but you will not be able to compare new period figures directly to figures in past periods.
Tip: If you need to change the type of year or period by which Inventory Control reports statistics, you should either do so after year-end, or edit the statistics for the earlier periods in the year to correct distortions.
Note: The Accumulate By option appears only if the Keep Item Statistics option is selected.
Editing Statistics
Select the Allow Edit of Statistics option if you want to add or edit either of the following statistics:
- Sales statistics for previous periods of the current year or for previous years. (You might want to do this if you set up your Inventory Control system partway through a fiscal year.)
- Transaction statistics from posted transactions.
Note: This option appears only if the Keep Item Statistics option is turned on.
You use the I/C Sales Statistics screen to add and edit sales statistics, and the I/C Transaction Statistics screen to edit transaction statistics.
Normally, you do not need to edit statistics, because they are updated automatically and accurately each time you run Day End Processing. However, if you set up your Inventory Control system partway through a fiscal year, you may want to use the Allow Edit Of Statistics option. You can then enter more complete inventory records by adding the statistics from your previous system for previous periods in the current year, and for previous years. (You use the Sales Statistics screen to edit the statistics.)
Once your system is operating, you should turn off the option because the program automatically updates the statistics when you post transactions.
You can turn on or turn off the Allow Edit Of Statistics option at any time.
Reviewing Statistics
Use the Transaction Statistics and Sales Statistics screens to display the statistics.
Reports
The Sales Statistics and Transaction Statistics reports will be blank if you do not turn on the Keep Item Statistics option.