Tracking Stock Data

Stock On Hand

This is the actual number of parts currently on the shelf, or in  storage.  ** HINT ** When first setting up the system, you will be entering parts which may be sold before the job is complete.  We  suggest you use the stock counts from the shelf.  When complete, run  the inventory report, perform a physical count, and calculate the  differences.  You will be able to then use the Input option to add,  or decrease, your actual count.

Stock On Hand and On Order

Whenever parts are first added to the system, it is necessary to  specify the current stock on hand.

Always leave the On Order field  at 0, because this is manipulated by the Purchase Order system.  When  parts are ordered using a P/O, the On Order total will increase by  the amount specified.  When parts are input into stock, that have  been on a P/O, the number will be decreased, and the Stock On Hand will be increased.

When parts are added to a workorder, the stock is  decreased by the quantity used.  However, if that number is adjusted  through editing, the Stock On Hand will not be adjusted

appropriately.

*** ERROR WARNING ***  Some people tend to not use the stock input program - and simply adjust the Stock On Hand value whenever parts  are received.  This is not recommended because other values (ie.  average cost) are not calculated properly.  Although you can  realistically perform this operation, the result will be a failure to  really see the proper inventory statistics.

Core In House and Due Back

Generally, the Core In House and the Core Due Back fields will never  be touched.  On initial setup, if cores have been tracked manually,  it will be best to continue tracking the outstanding cores by hand  until they have been fully "processed."  The The Auto Shop Writer system  will track the cores with workorder processing.  The Core In House total are used core, waiting to be returned to the vendor.  The unsold core is the same count as the Stock On Hand.  The  Due Back field is the count of core which are currently in the hands  of clients, usually as the result of a counter sale, and they are due  to be returned.        

Setting Minimum, and Stocking, Levels

The Minimum is that stock level below which you wish to reorder new  parts.  This figure may be calculated by the following formula:

           (Sales/day x days to restock) x safety factor

If you sell 2 framagadgets each day, it takes 5 days to receive an  order, and you want a 20% safety factor, you would have 2 x 5 x 1.2,  or a minimum of 12.  Using your averages, this means that you will actually be able to function for 6 days waiting for your order.  Of  course, no formula will be totally dependable, and you could run low,  or overstock.  As you calculate your minimums, you may realize that  some adjustments will be necessary.  These can be made manually at  any time.

The Stocking Level works on the same principle.  You would use the  formula:  

 ((Sales/day x restocking interval) x safety factor) + minimum  

If you stock every 10 working days, and you average 2 sales per  day, with a minimum of 12, and a safety factor of .2, you would  calculate the Stocking Level as (2 x 10 x 1.2) + 12, which equals 36.  These two figures will keep your stock under control.          

Sales History: Y-T-D, M-T-D and Past Years

The Auto Shop Writer automatically totals all parts sales, and  maintains a history count for the inventory items.  The Month Chart, Month To Date  and Year To Date counters are advanced with every sale.  The -1 year,  and -2 years totals are preserved when a year end closing is  performed.

The Month To Date field displays the total sales for the current month.  The chart shows the totals for each month of the fiscal year.

When entering parts for the first time, totals can be  entered in these fields if they are known. Otherwise, simply let the  system do the counting.  The program also tracks the dates of last  sale, and last purchase.  This is especially useful when monitor  information during parts ordering.

Obviously, if you hit the minimum  on a part, but it hasn't sold for a month, and availability is good,  it is probably time to readjust the minimum.  Intelligent decisions  will be at hand by watching these dates during order processing.

Date of Last Purchase, Sale

The system will automatically track when you last purchased an individual part, and when you last sold one.  You do not need to enter any values in these fields.

You may find the information valuable when you browse parts, but it is also possible to run reports based on these dates, and to adjust your stocking patterns accordingly.

Monthly Totals

The system will automatically accumulate the totals for each part sold in the appropriate month.  This chart is interactive with the parts application routine that places items on workorders, and is considered "live" processing.

Stocking vs. Non-Stocking Parts

The advantage of this inventory system is that it tracks all parts used including those that do not reside in inventory.  Consequently it is very easy to track non-stocking items of quantity, seasonal parts, and lost sales.  The system will automatically place non-stocking parts into inventory when first used, and then update the data as appropriate.

Vendors

When you purchase a part from a vendor, you will want to add them to the list.  You must use the proper A/P account number and not codes of your own development.  These codes help process automatic ordering, and give you a quick reference when needing to buy specific parts or replace stock.  You may use the search button to open a lookup in Accounts Payable.