Adding From Inventory Charges

The From Inventory option allows companies to separately invoice for services related to the production, storage, and shipment of items. The specific type of services available are: Inventory On Hand, Job Finishes, Job Relieves, Labor, PO Receipts, PO Receipts - Bill To, Received IC Xfers, and Sales Order Shipments. One example might be charges related to the production of an item that is separate from the price associated with the sale and shipment of items to the customer. Item Masters in Deacom can contain multiple From Inventory parts based on the different types needed. This option involves three steps:

  • Creating item master records that represent the services to be charged.
  • Attaching these items to the normal saleable items to the customer.
  • Using the "From Inventory" button to add these items to Sales Orders during Sales Order entry.

Configuration

  • Categories representing the group(s) of item that will receive From Inventory charges need to be created via Inventory > Maintenance > Categories.
  • Item Masters representing the From Inventory charge that will be added to sales orders will need to be created via Inventory > Item Master. This process is described below.
  • The From Inventory item masters will need to be attached to those items that will be applicable for the From Inventory charges. These are usually the normal items regularly sold to the customer. This process is described below.
  • All the appropriate setup steps for sales order entry, including the creation of Customers, Terms, Ship Via, and Facility records will need to be created.

Note: The security setting "Item master -- access From Inventory tab" will need to be set to yes in order for users to access the From Inventory tab on the Item Master record.

Process

Creating Item Master records

  1. Navigate to Inventory > Item Master.
  2. In the "Part Number" field, select an item that closely resembles a service charge.
  3. Click the "View" button to display the Item Master - Standard form.
  4. Select the part to copy and click the "Copy Part" button to open the Copy Part form. Creating parts by copying an already existing part that matches the part to be created as close as possible is recommended. 
  5. Review the check boxes on the Copy Part form. Theses boxes are checked by default. Uncheck boxes as necessary. A description of the boxes is available in the Item Master buttons section of the Item Master Encyclopedia page.
  6. Once all the information has been entered and the appropriate boxes checked or unchecked, click the "Save" button to complete the copy process.
  7. From Inventory items are normally marked as "Non-stocked" on the Item Master Properties tab. In addition, users should ensure the Units of Measure on the General tab of the Item Master are filled in correctly, including the "Stock Unit", "Stock Pricing Unit", and "Sales Pricing Unit" fields. See the Item Master General 1 tab Encyclopedia page for additional information on these fields.
  8. To verify all information on the new part is correct, exit back to the Item Master pre-filter, select the part that was just created, and click "Modify". Review the record and if necessary, make changes and save, otherwise close the form.

Attaching records to saleable items

  1. Navigate to Inventory > Item Master.
  2. In the "Part Number" field, select the saleable item that will contain From Inventory charges.
  3. Click the "Modify" button to display the Edit Item Master form.
  4. Navigate to the From Inventory tab.
  5. Click the "Add" button to display the Edit From Inventory form.
  6. Select a Type from the pick list depending on the charge being added, in the "Part Number" field select the part created in the section above, and add a Facility filter, if desired. See the Item Master From Inventory tab section of the Encyclopedia page for details on all the fields available to this form.
  7. Once all the information has been entered, click "Next" to add another charge or click the "Save" and "Exit" buttons to complete the process.

Adding From Inventory charges to Sales Orders

  1. Navigate to Sales > Order Entry.
  2. Create a new Sales Order as normal and add a part that will contain a From Inventory charge.
  3. Click "From Inventory" to display the From Inventory form.
  4. Fill in the appropriate information. See the From Inventory tab section for details on all the fields available to this form.
  5. Once all the information has been added, click the "Apply" button.
  6. The system will add a line item to the Sales Order representing the From Inventory charge. Specifically, when "Apply" is clicked on the From Inventory form, it will tally either On Hand, Sales shipments minus un-shipments, Purchased receipts minus unreceipts, or Production finish quantities for the specified date range within the current Facility. It will only show parts for the specified Category or that have a Customer-part for the selected Customer on the order. For each quantity found, it will add that quantity of the part's "From Inventory Part" to the order.

Note: Lines added to a sales order from the From Inventory option will be rounded before being combined if adding Summarized or By Part lines.

Examples of From Inventory charges

A summary of some of the processes used in Deacom to handle the different types selected on the Edit From Inventory form is indicated below.

SO Shipments type

  1. Creation of a non-stocked Item Master that represents charges and parameters that the company will be offering for the selected items. An example might be an item called "Handling Charges".
  2. On the From Inventory tab of the item from above click the "Add" button to indicate the "Type" of services that will be covered and then the part the will be receiving these services. For example, choosing a type of "SO Shipments” and a part number of “Subassembly 1" indicates that when "Subassembly 1" is shipped from inventory, a handling charge may be applied using the From Inventory option in Deacom.
  3. Processing of the handling charge. In this example, click the "From Inventory" button on Sales Orders for "Subassembly 1" to have the handling charge applied. The amount applied to the Sales Order is based on the pricing set on the Handling Charges Item Master. Information on the "From Inventory" Sales Order button is available via Sales > Order Entry.
  4. Invoicing is handled normally from this point in the Deacom system. Refer to Invoicing Sales Orders for more information.

Job Finishes type

  1. Creation of a non stocked Item Master that represents charges and parameters that the company will be offering for the selected items. An example might be an item called "Production Charges".
  2. On the From Inventory tab of the item from above click the "Add" button to indicate the "Type" of services that will be covered and then the part the will be receiving these services. For example, choosing a type of "Job Finishes” and a part number of “Subassembly 1" indicates that when "Subassembly 1" is finished, a production charge may be applied using the "From Inventory" option in Deacom.
  3. Link the necessary Sales Orders and Jobs for billing purposes. In order to create a Sales Order for the Job finishes performed, the "From Inventory Job" field on the Misc 2 tab of the Sales Order must be filled in.
  4. Invoicing is handled normally from this point in the Deacom system.

Purchase Orders Receipts type

Purchase Orders can also get the quantities of non-stocked goods shipped/purchased and this information when using the From Inventory option. The example below illustrates the feature for Purchase Orders, but the same process is used for Sales Orders. 

  1. Create/Identify a non-stock part.  
  2. Assign that part a From Inventory part and a Category. 
  3. Create/receive a new Purchase Order with that non-stock part on the order.  
  4. Perform From Inventory for the Category chosen and with a filter for the current day. Verify that the from inventory part from the non-stock good is added to the order with the same quantity it was received with.  
  5. Un-receive the order and try again. Notice nothing is added.
  6. Re-receive the order, but for a quantity less (or greater) than was chosen when making the PO.  
  7. Perform the From Inventory step and verify that it is added again, but for the new quantity it was received at.  

Labor type

When selecting a type of "Labor", the from inventory changes to display a start/end date field and a Labor Group field. The Labor Group master record also has a corresponding "From Inventory Part" field. When performing From Inventory on Labor it adds the from inventory part to the order on a 1:1 basis per hour. So if a person worked for 2.5 hours, 2.5 of the part will be added. When determining how many hours were worked, it only takes into consideration the time fields on the payroll (dtjob3) table; The actual hours/overtime hours/rate fields are not considered at all. It will consider all hours that fall within both the posted labor and the From Inventory form to be valid and add them to the order.

  1. There is a payroll entry spanning 2/15 - 2/19. The From Inventory form is filtered for 2/16 - 2/17. 48 hours will be added.
  2. If instead it is filtered for 2/19 - 2/25, only 24 hours will be added because it is only considering 2/19 as valid.  
  3. The "Labor Group" search box limits the query to payrolls that were logged as part of that Labor Group.  
  4. When Labor is chosen, the "Lines" field will change to "Summarized" if it was not already, and will no longer be editable. 

Notes:

  • Sales user calcs are run/re-run when using the From Inventory option with Sales Orders.
  • The "Lines" options for the "Labor" type are "Summarized" and "By transaction". When the "By transaction" option is selected, the system will split out the lines on the Sales Order by the Job numbers that the labor was tracked against (one line per job). Similar to the other "By Transaction" pieces, the system will fill in the "Notes" field of the line with the Job number. If the "Job Description" (jo_descrip) field is not empty, the system will append a dash and then jo_descrip. This appending does not apply to other "By Transaction" options, since Sales Orders and Purchase Orders do not have description fields.  
  • The From Inventory feature automatically converts the quantities of the original part from the original parts' Stock Unit to the billing parts Sales Unit (or the billing parts Customer Part for the specified customers Sales Unit).  
  • For the "Finish Job" type, if the item is a Catch Weight item, its Catch Weight value is now taken as its value instead of its actual quantity. For more information on Catch Weights, refer to Using Catch Weight Parts.
  • Beginning in version 17.04.001, the "Duplicate Charges" field has been added to the From Inventory form. This field enhances the way the system handles the possibility of duplicate charges for From Inventory charges.