Master Records > Inventory > Update, Delete or Archive Inventory Item

The Inventory Maintenance function allows you to update and maintain inventory item records. This section discusses the procedure on updating, amending or deleting an inventory item record. The changes you make will only affect the transactions that you post after you made the changes.

Note: You can only update and/or delete the inventory record, and edit the inventory settings if you are granted the appropriate access rights. These access rights are defined in the Group Access Rights function in the System Manager module.

Update inventory records

To update an inventory record, perform the following procedures:

1.Access the Inventory Maintenance function from the Inventory group under the Maintenance main menu of the Inventory Control module. The Search screen is automatically displayed when this function is accessed.

Alternatively, you may also access the Inventory Maintenance function from the Accounts Receivable, Sales Order, Purchase Order and Manufacturing modules.

Note: Various drillable fields are available in this function screen. When you click any drillable fields in this function, the system automatically displays the corresponding Maintenance function screen.

2.Enter in the Search field the item # that you want to update or you may scroll up and down the grid to locate the item record; then, double-click the item code to select. As soon as an item # is selected, the item's details are displayed on their respective fields in the different pages of this function.

3.Amend the values in applicable fields in the Information, Warehouse, Unit of Measurement, Pricing, Multi-Level Pricing , Remarks/Image, Settings, GL Accounts, and Notes pages of this function. Fields that are grayed out and inaccessible cannot be changed or edited. Refer to the detailed discussion on these fields and options in Create Inventory Record topic.

4.If you have recorded transactions in several modules or have set up related maintenance records for this inventory item record, the system automatically monitors the transactions' effect on item quantity and tracks maintenance setup for easy reference and analysis. In the Information page, you may click the Expand () button in the Item Transaction Summary area to view the following values shown in the read-only fields:

oInterim Quantity

This field is applicable if the Sales Order module is activated and only when the Inventory Acceptance feature is activated. This field displays the item's quantity that requires confirmation but are not yet invoiced.

oOn-order Quantity

This field is applicable if the Purchase Order module is activated. This field displays the quantity on-order for the item in the warehouse indicated in the Warehouse field. The value in this field increases when purchase orders are created and decreases when receipt of goods is posted.

oIn-transit Quantity

This field is applicable if you have activated the Inventory Control module. This field displays the quantity of the item that has been recorded as transferred from one warehouse of the same company but has not yet been recorded as received in the warehouse indicated in the Warehouse field. The in-transit quantity increases when you transfer inventory items using the Warehouse Item Transfer function but not yet received at the target warehouse. On the other hand, the in-transit quantity decreases when you record the receipt of the item in the target warehouse using the Receive Warehouse Item Transfer function.

oIn-process Quantity

This field is applicable when you have activated the Manufacturer’s Inventory module. This field displays the quantity of partially manufactured master item with bill of materials. The value in this field increases whenever a work order containing this master inventory item is posted to work-in-process and decreases whenever the work order containing such master item is posted as finished.

oDefective Quantity

This field is applicable when you have activated the Return Authorization module. This refers to the quantity of the item that will be repaired. This value increases if you receive inventory items from the customer for repair and you adjust the inventory using the Defective Inventory Adjustment Maintenance function to reflect the defective quantity purchased from the vendor. On the other hand, the value in this field decreases when you ship the defective items to the vendor for repair and you adjust the inventory using the Defective Inventory Adjustment Maintenance function to record the repaired items that have been shipped back to the customer.

oOn-hand Quantity

This field displays the actual quantity in stock at a specific point in time, before taking into account items booked for sale. Booked-for-sale items are items in the unshipped sales orders. The on-hand quantity increases each time you post the receipt of goods, receive warehouse inventory transfer, add units of the item using the Inventory Adjustment function of this module, and/or process customer’s return using the Accounts Receivable or Return Authorization module. On the other hand, the on-hand quantity decreases when you ship goods in a sales order, create an invoice or decrease units of the item using the Inventory Adjustment function of this module. The on-hand quantity is not affected by the creation of sales orders and quotes or purchase orders and quotes.

oAllocated Quantity

This field is applicable when the Manufacturing module is activated. This field displays the quantity of a partially manufactured component inventory item included in the bill of materials. The value in this field increases whenever a work order containing this component inventory item is exploded and decreases whenever the work order containing such component item is posted to work-in-process and posted as finished (if the Require WIP for Finished Job feature is inactivated).

oIssued Quantity

This field is applicable when the Manufacturing module is activated. This field displays the item quantity that is alloted or reserved to cover the requirement of a work order.

oBooked Quantity

This field is applicable when the Sales Order module is activated. This field displays the quantity of this inventory item created in sales order and remained unshipped. The value in this field increases as sales orders are created and decreases when units of the ordered items are shipped in the Sales Order module.

oAvailable Quantity

This field displays the quantity of this inventory item currently available for sale equivalent to the on-hand quantity less the quantity of unshipped sales orders and allocated quantity.

5.If you have recorded transactions in several modules, the system monitors the applicable cost of the inventory item in the Settings page. View the following values shown in the read-only fields in the Other Price and Cost Details area of this page:

oLast Sales Price (and Date)

These fields are applicable if you have activated the Sales Order or Accounts Receivable module. These fields display the price exclusive of tax and date for the most recent sale of this item.

oLast Received Cost (and Date)

These fields are applicable if you have activated the Purchase Order module. These fields display the cost and date for the latest purchase of this inventory item.

Note: The last received cost, displayed in this field, is based on the item’s unit of measure; such that, if an item is purchased in a unit of measure different from the unit of measure in the item record, the system will translate the item’s unit price in the purchase order to its equivalent in the item’s unit of measure. For example, if AEROCHAIR-A1’s unit of measure is EACH and it is purchased for $480 in 4PAK, once the item is received this field displays the last received cost of $120.

oLast Finished Cost (and Date)

These fields are applicable if you have activated the Manufacturer’s Inventory module. These fields display the most recent cost and date on which a unit of this item is manufactured.

oLast Repair Cost (and Date)

These fields are applicable if you have activated the Return Authorization module. These two fields display the repair cost and the date when the item was most recently returned to the vendor for repair.

oList Price

This field displays the basic selling price per unit of this item. The list price is defined in the Pricing page of this function.

oAverage Cost

This field displays the system-generated weighted average, per unit cost of these items currently in inventory, regardless of the cost method selected for this inventory item.

Example: If LIFO (last in first out) cost method is used and your on-hand quantity consists of two (2) items. The first purchases was last period amounting to US$25 and one quantity was purchased yesterday for US$35, the (weighted) Average Cost shown here will be US$30 [(US$25 + US$35) / 2] even though the LIFO cost for the next unit sold would be US$35 (the cost of the last unit you received). The cost will contain from zero to four decimal places depending on the decimal places setting you defined in the Unit Cost field in the General Information page of the IC/AR/SO/PO Module Setup function.

oProfit Margin (and Percentage)

This field displays the dollar and percentage profit margins for one unit of this product by deducting the average cost to the unit price amounts displayed in the corresponding Average Cost and List Price fields of this page. This value is a useful measure on the gross contribution of each unit of item sold towards operating and sales costs, and comparison on the relative contribution of various inventory items.

Example: If the unit price is US$25 and the average cost is US$15, the profit margin is US$10 per unit. The system computes the percentage profit margin by dividing the profit margin by the unit sales price and multiplying by 100. To continue our previous example, since the profit margin is US$10 and the unit price is US$25, the percentage profit margin would be 40%. The amount and percentage margins allow you to compare the contribution of different items. For example, while an item that costs US$60 and sells for US$100 generates only US$40 profit margin, and one that costs US$100 and sells for US$150 generates US$150 profit margin, the gross return on cost for the first is 40% (US$40/US$100) while the second yields only 33% (US$50/US$150). Which item is a better investment will depend on how fast they turn over, shipping, holding, advertising, selling and other costs.

Note: You can edit the Standard Cost field in the Settings page only if you are granted the necessary access right (i.e., the Edit checkbox is marked in the Group Access Rights function in the System Manager module). This is true regardless of the inventory item's assigned cost method.

6.When you are ready, click the Save button from the function toolbar to save your changes; otherwise, click the Cancel button to disregard all changes.

Delete or archive inventory records

To delete or to archive an inventory record, perform the following procedures:

2.Enter in the Search field the item # that you want to delete or archive, or you may browse through the pages to locate the item record; then, double-click the item code to select. As soon as an item # is selected, the item's details are displayed on their respective fields in the different pages of this function.

3.When you are ready, click the Delete button from the function toolbar. Any of the following may occur:

•If no transactions were recorded for the inventory item, a message is displayed requesting confirmation to delete the record. Click Yes to confirm; otherwise, click No.

•If the inventory item had a non-zero on-hand quantity and balance, if it is included in a kit formula, or assigned to another record, a message is displayed informing you that deletion is not allowed. Click OK to close the message window.

•If transactions involving the inventory item were posted but it had a zero on-hand quantity and balance, a message is displayed requesting confirmation to archive the record. Click Yes to confirm; otherwise, click No.

Notes: Archiving an inventory item record simply sets a flag in its record so it will not show up in the items Lookup list; the inventory item information remains saved and intact.

Reactivate (Unarchive) Inventory records

To reactivate or unarchive an inventory record, perform the following:

1.Access the Inventory Maintenance function from Inventory group under the Maintenance menu. You can also access the Inventory Maintenance function by clicking the underlined Item # field label in any applicable functions.

2.Click the New button to display the Create New screen.

3.Click the Archive Search button beside the Item # field. This will display the Archived Search window where you can select the archived item record that you want to reactivate or unarchive.

4.In the Archived Search window, enter in the Search field the item # that you want to reactivate or unarchive, highlight the record; then, click OK. Alternatively, you may browse through the search pages to locate the item record; then, double-click the item code to select.

5.A message will display asking for confirmation if you want to unarchive the record. Click Yes to confirm; then, click the Save button in the function toolbar.

Update, Delete or Archive Inventory Item

Update, Delete or Archive Inventory Item

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