The Inventory feature allows you to create, update, and manage all of the merchandise your company is currently maintaining to resell to your clients in the future. With the Inventory feature, you can add Inventory items to projects while maintaining an updated inventory list.
Inventory Settings
Inventory Settings
You can set defaults for your Inventory by going to Settings in the black navigation bar to the left and then click on Inventory Settings.
You can select the Default Warehouse that will be added to all Stock Items when entered. You can enter a Default Mark-Up % for all Stock Items when entered. When finished making changes, click on Save.
Note: this default mark-up % can be changed with the Stock Item is added to a Project. If the Warehouse you generally use for Inventory Items is not listed, you can add a new Warehouse by going back to the main Settings page and clicking on Glossary. Click on the Ship To Codes and then click on the +Add button to add the Warehouse. When adding the new Warehouse make sure you select or click in the box next to Warehouse/Showroom.
Understanding the Inventory/Stock Items List
Understanding the Inventory/Stock Items List
You can view your Inventory Stock Items by going to Stock Items in the black navigation bar to the left.
In the Stock Items list, you can see the information on that item such as a picture, Stock No., Description, Vendor and if you move to the right you can see On Hand and Committed quantities along with Unit Price. To see more information such as which project the Stock Item has been committed too, click on the Stock No.
On the first tab, Item, you can see more detailed information and make any changes if needed. If you do make changes, make sure you click on Save.
On the second tab, Status/Adjustment, you can see how many are On Hand and Committed. You can also see the Warehouse that the Stock Item is stored in. The fields shown as greyed out (On Hand, Paid For, etc) come from the initial information entered when adding the Stock Item and from any adjustments shown under Transactions. If you need to make any changes to any of this information, click the green +Add button to add a status adjustment. Note: only manually added adjustments can be edited or deleted by clicking on the TX#.
The Inventory Adjustment window is used to enter the actual quantity and cost changes that are desired. Though the Inventory Adjustment Window has fields to adjust all the Stock Item quantities and cost, not all fields need to be used for a given Inventory Adjustment. In other words, if you are adjusting the On Hand Quantity only, you do not need to input anything into the On Order Adjustment field. NOTE: Use positive values to increase the quantities or Total Cost while using negative values to decrease those figures. When finished entering your adjustments, click on Save.
On Hand Adjustment: Input the number of units by which to increase or decrease the On Hand Quantity. The On Hand Quantity is the number of units of the Stock Item currently in possession by the company.
Paid For Adjustment: Input the number of units by which to increase or decrease the Paid For Quantity. The Paid For Quantity represents the number of units that are currently On Hand that have been previously purchased in full from the Vendor. More often than not, if the On Hand Quantity is being adjusted, the Paid For Quantity should likewise be adjusted.
Committed Adjustment (Committed Adj.): Input the number of units by which to increase or decrease the Committed Quantity. The Committed Quantity represents the number of units of the Stock Item that has been previously been allocated to Projects and Orders using the Add Items from Inventory function on the Specifications Window or the From Inventory button on the Component Window - Component Tab.
On Order Adjustment: Input the number of units by which to increase or decrease the On Order Quantity which is the number of units of the Stock Item that are currently included on Inventory Purchase Orders but have not yet been received.
Cost Adjustment: Enter the amount by which the Total Cost of the Stock Item needs be altered. Note: The Cost Adjustment affects the Total Cost of the Stock Item and should be entered to change the cost for all units of the Stock Item, not as a per unit adjustment.
Project / Item No. / Component No.: When a Committed Adjustment value is entered, the Project, Item No., and Component No. fields become enabled allowing the user to enter the precise Reference Number for a Specification within a Project to which the Inventory Adjustment for the Committed Quantity will be associated. Note: Generally, to decommit an Inventory Item one should delete the Item on the Items/Specifications Window. Therefore, using the Project / Item No. / Component No. fields in this manner is usually reserved for correcting past errors.
Warehouse: A valid Warehouse Code must be entered for each Inventory Adjustment. The Warehouse Code represents which physical location in which the Stock Item is stored is representative of the Inventory Adjustment. For example, if one unit of a Stock Item is damaged so the On Hand Quantity and Total Cost are being reduced, the Warehouse Code indicates in which location the unit resides that was truly damaged. The Warehouse Code may be manually entered or the Search button can be used to locate the desired Warehouse.
Transaction Description: An optional description of the Inventory Adjustment can be entered for your reference. The Transaction Description appears on many Inventory Reports.
Adjustment Date: The date of the Inventory Adjustment.
Transfer to Warehouse: The Transfer to Warehouse function is a convenient tool to quickly create a pair of Inventory Adjustments which represent the relocation of an Inventory Item, or portion thereof, from one Warehouse to another. To do so, enter the proper On Hand, Paid For, Committed, On Order, and/or Cost adjustments for the Warehouse from which the Inventory Item has been removed. Note: all of the adjustments figures must be negative values as they represent the quantities and cost being reduced in the source Warehouse. Then, select the Transfer to Warehouse option in order to enter the Warehouse Code into which the Inventory Item is being moved. Upon clicking the OK button, two Inventory Adjustments, one for each Warehouse, will be created indicating the goods being moved from the source Warehouse into the destination Warehouse.
Adding an Inventory Item
Adding an Inventory Item
You can add an Inventory/Stock Item by going to Stock Items in the black navigation bar to the left. In the list of Stock Items, click on the +Add button in the top right
In the Add a New Stock Item to Inventory window, enter the information for you Stock Item.
Stock Number: When adding a new Stock Item, a unique Stock Number must be recorded. Design Manager reserves numbers 1 through 9999999 for bar codes. You will not be able to use these numbers for Stock Numbers of Inventory Stock Items. You can use any combination of letters and numbers or any number greater than 9999999. The Stock Number cannot be changed once a Stock Item has been created and will, therefore, be locked when editing a Stock Item
Name: Name or Title of the Stock Item
Sales Category: Sales Categories are used to classify or group your revenue from sales and costs from purchases. For example, a sofa may fit into a Furniture Sales Category while installation of wallpaper may fit into a Labor Sales Category. The Sales Category will determine which Revenue Account is used to record the sale of the Stock Item through the Point of Sale system and will be defaulted into the Sales Category of the Item when using the Add Items from Inventory function through the Items/Specifications Window
Initial Quantity: The number of Stock Item you currently have
Est. Unit Price: The anticipated per unit cost to purchase the Stock Item from the Vendor. The Estimated Unit Cost is also used to determine the Unit Sell Price for the Stock Item when a Markup Percent is entered
Unit Sell Price: The anticipated per unit price of the Stock Item that will be charged to the Client. If an Estimated Unit Cost and Markup Default are both entered, the Unit Sell Price will be calculated as the sum of the Estimated Unit Cost and Estimated Unit Cost X Markup Percent. For example, if the Estimated Unit Cost is 100.00 and the Markup Percent is 50, then the Unit Sell Price will be 100 + (100 X .50) = 150.00. You can also manually enter a Unit Sell Price whereupon Design Manager will automatically adjust the Markup Percent accordingly
When finished click on OK.
On the Inventory Stock Item window you can enter more information and edit any information entered before.
Description: The second field is the Description of the Stock Item that the will be defaulted to the Client Description on the Item Window when using the Inventory button on the Items/Specifications Window or the Purchase Order Description on the Component Window. The Description can be of nearly unlimited length. As you type into this field, the text will automatically wrap at the end of each line. To skip to a new line while inside this box, press the Enter key on your keyboard
Style / Size: An optional descriptive field of the Stock Item used primarily to record the size and dimensions or particular style of the Stock Item
Color / Finish: An optional descriptive field of the Stock Item used primarily to record the color and finish of the Stock Item
Add a Photo: Add a photo of the Stock Item by dragging and dropping or you can search through your computer to find the photo. The photo added will be defaulted to the Client Description on the Item Window when using the Inventory button on the Items/Specifications Window
Storage Location: The optional location where the Stock Item is stored such as a warehouse name or particular locale within the company storage facility, for example: Row 3, Shelf 2
Vendor: You can optionally enter the Code of the Vendor from which you will be ordering the Stock Item in the future into this field
Manufacturer's Catalog Number (MFG. Cat. No.): The optional manufacturer’s catalog or Item number for the merchandise
Inactive: As long as the On Hand, Committed, Paid For, and On Order Quantities as well as the Total Cost as displayed on the Status Tab are all zero, a Stock Item can be set as Inactive. Inactive Stock Inventory Items will not appear on the Inventory Stock Item List
Markup Percent (Markup %): The Markup Percent represents the desired percentage of the Estimated Unit Cost to be added in order to determine the Unit Sell Price for the Stock Item
Notes: Any notes, special instructions, storage information, etc. pertaining to the Stock Item can be recorded in the Notes field.
When finished entering the information click on the Save button in the top right.
After clicking on Save, you will go back to the Stock Items list. When Saving your Stock Item, Design Manager automatically creates an initial adjustment based on the information you entered. You can view this adjustment by clicking on the Stock No. in the list and click on on the Status/Adjustment tab. If you need to change any of the information shown, you can click on the TX# and make changes. This information is covered in detail above under Understanding the Inventory/Stock Items list.
Adding an Inventory Item to a Project
Adding an Inventory Item to a Project
To add an Inventory/Stock Item to a Project, first navigate to the Project and the Items tab. Then click on Add From and select Inventory.
On the Add Item from Inventory window, search or type in your Stock Item No.. Enter the quantity you want to add to the Project and a Location this Item will be going in the Project. You can select what pricing to use in the Project. Use Inventory Sell Price will include the Inventory Markup %. Use Project Pricing Calculation will include any Markup % or other pricing types as part of the Project settings/Defaults. Whichever one you decide, you can always change this in the Component if it is not what you expected.
When you are finished entering the information, click on Ok.
The Item has now been added to your Project and you can see it in your list of Items. This item can be edited with more pictures, description and pricing if needed.
If you want to remove this item or uncommit it from the Stock Items list, select the Item and go to Actions and select Delete. This will remove the Item from the Project and show this Stock Item as not being committed.
Inventory Accounting
Inventory Accounting
The accounting for Inventory can also be recorded in Design Manager to appropriately show your inventory asset dollar amount. Design Manager comes preconfigured with Account Number 17000 designated as the Inventory Asset Account. You can see this setting by going to Settings in the black navigation bar to the left. Then click on Accounting Settings and scroll the bottom right to see your Inventory Accounts.
Note: If you are unfamiliar with advanced accounting practices, it is recommended that you leave these accounts as they are currently configured! Setting them incorrectly can cause data to be misrepresented in your General Ledger.
The two accounts shown are:
Inventory: The Inventory Account is used when recording purchases for the company's Inventory and sales to clients for merchandise from the Inventory. The Inventory Account should be an Asset Account
Inventory Freight: The shipping costs of merchandise for the company Inventory can be recorded separately into this Account, if desired. If you want the shipping costs to be included with the merchandise costs, set this Account to the current Inventory Account from above
To record an Inventory purchase and to show that you paid for the Inventory Item(s) you can enter a general Expense or Bill and these steps are outlined below. You can also enter a Journal Entry and this option is better suited for inputting large amounts of Inventory. You can learn how to create a Journal Entry by clicking here.
1. On the left side menu, under Accounts Payable, click on Vendor Invoices.
2. Click on the +Add button in the upper right hand side and select Expense / Bill / Miscellaneous.
3. In the Add Expense / Bill / Miscellaneous window, select the Vendor that the Inventory Item was purchased from. Then add in the Invoice information:
Invoice Number: Invoice or order number from Vendor
Invoice Date and Due Date if applicable
Trans. Desc.: A description about the Vendor Invoice
Pay With: Select how you paid the Vendor Invoice
4. To add in the expense details, click on the +Add button.
5. On the Vendor Invoice Distribution [Expense / Misc.] window enter the information:
Type/Account Info: Choose Non-Project
Account No.: Select the Inventory Account, 17000
Amount / Cost: Enter the amount or cost of the Inventory Item(s)
When finished entering the information, click on OK.
6. Check the information entered for accuracy. For example, do they match the amount you paid on the bill? Check the amount field for accuracy and enter notes in the Notes field. When finished click on Save.
7. You'll see the expense listed under New in the Vendor Invoices window. The expense has not been recorded yet and needs to be posted to be recorded. Review the information for accuracy and if needed make changes by clicking on the Tx Ref No. When ready to post, click on Post in top right. On the new window, select the fiscal month to post the payment to and click on Post.
8. The expense is now listed under the Existing tab for Vendor Invoices and this amount can be seen in your Inventory Asset Account.
Inventory Reports
Inventory Reports
The Inventory Reports can be found in the navigation bar to the left under Reporting and under Inventory.
Committed Analysis: provides an analysis of Inventory Items which are currently committed or allocated to various Projects. The Committed Analysis Report can either by sorted and subtotaled by Inventory Stock Number or Project Code as determined by the Report Format selection. Printing by Inventory Stock Number is useful when tracking the distribution of a Stock Inventory Item over many Projects while printing by Project is desirable to review precisely what Stock Inventory Items have been allocated to the Project and not yet invoiced to the Client. Either version of the report will list the Inventory Stock Number and Description, Project and Client Code and Name, the Specification Reference Number within the Project for the Stock Inventory Item, Committed Date, Committed Quantity, Unit and Extended Estimated Cost, and the Extended Estimated Price. Ranges for Inventory Stock Number, Client and Project Codes, and Inventory Transaction Dates are available to narrow the scope of the report.
Inventory List: displays information regarding all active Inventory Stock Items. The Inventory List Report displays pertinent information of the Inventory Stock Item including the Stock Number, Sales Category Code, Description, Style / Size, Color / Finish, Vendor Code, Storage Location, and Manufacturer's Catalog Number. Following such information are the current quantities, dates, and costs:
On Order Quantity: The total number of units of the Inventory Stock Item currently on Inventory Purchase Orders but have not yet been received
On Hand Quantity: The current number of units of the Inventory Stock Item in the company's possession
Unit Estimated Cost: The Unit Estimated Cost as entered by the user on the Inventory Stock Item Window
Unit Sell Price: The Unit Sell Price as entered by the user on the Inventory Stock Item Window
Unit Average Cost: The Total Average Cost divided by the Paid For Quantity
Total Average Cost: The total cost for the Stock Inventory Item.
Ranges for Stock Number, Style / Size, Color / Finish, and Vendor and Sales Category Codes are available to narrow the scope of the report. The Stock Inventory Items can be sorted by Stock Number, Style / Size, Color / Finish, Vendor, Storage Location, and Sales Category within the Showroom/Warehouse as determined by the Sort By selection. The full description of the Stock Inventory Item can also be optionally displayed. By default, Inventory Stock Items with no On Order Quantity, On Hand Quantity, Paid For Quantity and a Total Cost of zero would not be displayed on the report. To show such Inventory Stock Items, select Yes on the Include Zero Items selection.
The sum of the Total Average Cost is displayed at the end of the report and should, ideally, match the current balance of the Inventory Account. The total Units On Hand and Retail Value, which is the sum of the On Hand Quantity and Unit Sell Price for each Inventory Stock Item, are also displayed at the end of the report.
Inventory List by Warehouse: displays information regarding all active Inventory Stock Items within each separate Showroom/Warehouse. Further, unlike the Inventory List Report, the Inventory List by Warehouse Report can be printed retroactively to view Inventory information as it existed in prior fiscal periods.
The Inventory List by Warehouse Report displays pertinent information of the Inventory Stock Item including the Stock Number, Sales Category Code, Description, Style / Size, Color / Finish, Vendor Code, Storage Location, and Manufacturer's Catalog Number. Following such information are the current quantities, dates, and costs:
On Order Quantity: The total number of units of the Inventory Stock Item currently on Inventory Purchase Orders but have not yet been received
On Hand Quantity: The current number of units of the Inventory Stock Item in the company's possession
Unit Estimated Cost: The Unit Estimated Cost as entered by the user on the Inventory Stock Item Window
Unit Sell Price: The Unit Sell Price as entered by the user on the Inventory Stock Item Window
Unit Average Cost: The Total Average Cost divided by the Paid For Quantity
Total Average Cost: The total cost for the Stock Inventory Item.
By default, the Inventory List by Warehouse Report displays information for the current fiscal month but the report can be printed retroactively by selecting the desired period on the Fiscal Month menu. Ranges for Stock Number, Style / Size, Color / Finish, and Vendor and Sales Category Codes are available to narrow the scope of the report. The Stock Inventory Items can be sorted by Stock Number, Style / Size, Color / Finish, Vendor, Storage Location, and Sales Category within the Showroom/Warehouse as determined by the Sort By selection. The full description of the Stock Inventory Item can also be optionally displayed.
The sum of the Total Average Cost is displayed for each Showroom/Warehouse and at the end of the report which should, ideally, match the current balance of the Inventory Account for the selected fiscal month. The total Units On Hand and Retail Value, which is the sum of the On Hand Quantity and Unit Sell Price for each Inventory Stock Item, are also displayed for each Showroom/Warehouse.
Inventory Sales: displays information for Inventory Stock Items sold within a given period of time. The Inventory Sales Report displays pertinent information of the Inventory Stock Item including the Stock Number, Description, Style / Size, Color / Finish, and Vendor Code and Name. Following such information are the relevant quantities, costs, and prices derived from the sale of the Inventory Stock Item:
Number of Sales (# of Sales): The number Invoices upon which the Inventory Stock Item has been included
Total Quantity Sold (Tot. Qty. Sold): The number of units of the Inventory Stock Item included on all Invoices within the Invoice Date range
Extended Price (Ext. Price): The total revenue realized from all Client Invoices for the Inventory Stock Item within the Invoice Date range
Extended Cost (Ext. Cost): The total reduction to the Inventory Account and the Inventory Stock Item's Total Cost by selling the merchandise
Gross Profit: The Extended Price less the Extended Cost