Do the Right Thing: Create and Track Purchase Orders and Maintain Perpetual Inventory

Transcription

1 Do the Right Thing: Create and Track Purchase Orders and Maintain Perpetual Inventory Presented by: Stephen Rosenbaum, CPA, MBA Preview This course discusses how to create and track purchase orders and how to maintain inventory with the new perpetual inventory system; how to sell from samples, continuously track inventory, what the new quantity committed and in process mean; and how to receive warning messages when selling products that are nonstock, discontinued, backordered, not in stock or in stock when being ordered from a vendor. Also, you will learn how to pick and send inventory if you have a Distribution Center and/or Company. Learn the important new steps that must be followed to reduce inventory from stock on hand, order products from vendors, send lab orders to outside labs, and receive and dispense the jobs. Learning Objectives with Purchase Orders How to set up OfficeMate to create or not create Purchase Orders for all or specific vendors. The 3 different scenarios for creating PO s from Fee Slip whether maintaining quantity levels or not. How to Create Manual Purchase Orders. How to create Purchase Orders from Stocking Levels. How to Receive Purchase Orders. How the quantity counts are adjusted when Purchase Orders are created and received. The available Purchase Order reports. Learning Objectives with Maintaining Perpetual Inventory How to indicate the product stock status; Stock, Non-stock, Discontinued, Inactive, Backordered. How to indicate the sample stock and be warned when samples are being sold. How to be warned when Non-stock, Discontinued or Backordered products are being sold. How to not receive warning messages if continuous quantities on hand are not being maintained but you are selling from stock on hand.

2 Definitions of the product columns in the Products table What are the products quantity counts when products are sold and received The available inventory reports. How to adjust inventory levels to actual or adjust levels for returns to vendors or swap among stores. How to pick and ship inventory if you have a Distribution Center or Company Lab. Why Create and Track Purchase Orders Whether perpetual inventory is maintained or not, Purchase Orders are tracking documents used to: Tell the practice what needs to be ordered. Tell a vendor what order needs to be fulfilled and authorizes that purchase with the estimated cost. Indicate to the practice what has been ordered and not received. Tell the practice what has been received and authorized to be purchased and the estimated cost when the order was placed. It is OK to pay the invoice. Process Flow when using Purchase Orders When ordering a product, give the vendor the copy of the PO or the PO # and order details. File the open PO s in a separate file. When products are received, match the PO to the packing slip and verify all that was ordered was received. When the invoice is received, match the PO/Packing slip to the invoice and verify the accuracy. Pay the invoice because the PO is the authorization that it was OK to order and pay. To Not Create Purchase Orders for all Vendors and Not maintain Inventory 1. Open the Product Setup window. 2. Select the Product Type(s). 3. Uncheck Maintain Perpetual Inventory No PO s can be created and quantities are not adjusted. To Not Create Purchase Orders for Specific Vendors 1. Open the Vendor Maintenance window. 2. Select the Vendor. 3. Check Suppress Purchase Orders for this Vendor To Designate the Vendors to Match to the Products 1. Open Products. 2. Select the Product Name. 3. Select the Vendor in the Vendor field. NOTE: Vendors are setup on the Setup/Vendor Maintenance form and the products they sell are also designated on this form

3 To Designate Vendors to Create Purchase Orders from Fee Slips after each sale regardless of the Quantity on Hand 1. Open the Vendor Maintenance window. 2. Select the Vendor 3. Uncheck Stocking Levels and Reorder Points are maintained for inventoried products. 4. After each Fee Slip is recorded a PO From Fee Slip is processed, each product sold will be listed on a Purchase Order to their respective Vendors the Vendors established for each Product Name. To Designate Vendors to Create Purchase Orders from Stocking Levels Only 1. Open the Vendor Maintenance window. 2. Select the Vendor 3. Check Stocking Levels and Reorder Points are maintained for inventoried products 4. Purchase Orders will NOT be created after each product is sold but when PO from Qty on Hand is processed. 5. Open the Task/Purchase Order/PO from Qty on Hand form 6. Click New PO. 7. Click Process (or select the Product Type if not all and click Process). 8. All products Quantities on Hand will be compared to the Reorder Point and if less than or equal to, product will be ordered to get to the Stocking Level in increments of the Minimum Reorder Quantity. To Setup the Ship To of the Purchase Order 1. Open the Setup/Location Preference form 2. On the Frame Order and Soft Contact Order select the Ship To; Store, Distribution Center or Company Lab. 3. On the same tabs you can indicate whether to display the Adjust Quantity on hand button on the Frame Order Rx Order tab, whether you will allow sample frames to be sold, whether the quantities of the selected frame are shown on the Frame Order tab and whether to be warned when a frame is Discontinued or Backordered. To Not Allow Purchasing at the Stores (Centralized Purchasing) On the Setup/Preferences/Centralized tab, in the Purchase Order Centralized Purchasing panel select Yes. The Purchase Order and Receive Purchase Order task will be disabled at the store. To create and receive the Purchase Orders, set up a Distribution Center or Company Lab. Purchase Order Rules Purchase Orders can only be created if Maintain Perpetual Inventory is checked in Product Setup. Purchase Orders can only be Created and Received at the Ship To Location setup in Location Preferences. DO NOT create Manual Purchase Orders in the Home Office/Administration.

4 If a Purchase Order is received at the DC or Company Lab for another location (the fee slip was created at store and the PO from fee slip was created for the patient at that store), when the PO is received a Transfer is automatically created. When the product arrives from the DC, Receive the Transfer of the product. Manual Purchase Orders must be finalized before the PO is created. Purchase Orders are never created for Had Lens orders, use the Lab Order as the PO, it has all of the order detail. The options on the Location Preferences Frame Order tab are used for the Fee Slip sales. To Create Manual Purchase Orders 1. On the Task menu select the Purchase Order/Manual PO. 2. Click New PO. 3. Select the Ship To location. 4. Select the Vendor and enter all other pertinent information and click Save. 5. On the Purchase Orders Details tab select the products to include on the Purchase Order. NOTE: Don t enter a product name and click tab, the wrong product may be populated. Enter the name and click the Product Name/Code blue button and select the products to include on the PO. 6. When ready to create the Purchase Order, on the Purchase Order and Shipping Information tab click Finalize. To Create Purchase Orders from Fee Slips at the Ship To Location 1. Create the Rx Order and Source = From Vendor or create the Fee Slip after answering yes to Order from Vendor. 2. On the Task menu select the Purchase Order/From Fee Slip. 3. Click New PO. 4. Click Process. To Create Purchase Orders from Quantities on Hand at the Ship to Location 1. On the Task menu select the Purchase Order/Qty on Hand. 2. Click New PO. 3. Click Process. The Stocking Levels and Reorder Points will be compared. The recommended order will bring the quantity equal to or greater than the Stocking Level in increments of the Minimum Reorder Quantity. If the sample has been sold, the order quantity will add the sample quantity. If a location has a Stocking Level of 0 and a Minimum Display Qty of 1, and a QOH of 0, 1 will be ordered to replenish the sample. Stocking Level should NOT include the Samples. To Receive Purchase Orders 1. On the Task menu select Receive Purchase Order. 2. Enter the PO number or click Find PO and select the PO.

5 3. Enter the quantities received on each line or if all received click Receive Complete. Enter any backorder dates if applicable. The Backorder dates will be entered in the product SKU and the SKU will be marked as Backordered. 4. Click Record. Note: If receiving at the Distribution Center for multiple stores, transfers are automatically created if the Create Transfer check box is checked. Receive Transfers at each location. Reports Available for Purchase Orders Purchase Order Purchase Orders Backordered Purchase Order Detailed Purchase Order Summary What is Perpetual Inventory? In business and accounting, perpetual inventory describes systems of inventory when information on inventory quantity and availability is updated on a continuous basis as a function of doing business. To Maintain Inventory by Product Type 1. Open the Product Setup window. 2. Select the Product Type(s). 3. Check Maintain Perpetual Inventory 4. Leave the Stocking Level, Reorder Point and Minimum Reorder Qty defaults at zero, else all will go to every location and the Home Office. When adding a product indicate the levels for each SKU on the Product/Product Details tab. Designating Stocking Levels, Reorder Points and Minimum Reorder Quantities 1. Open Products. 2. Select the Product Name. 3. On the Product Details tab select the detail line. 4. On the All Locations Inventory tab enter the Stocking Levels, Reorder Points and Minimum Reorder Quantities at each location. Designating Stocking Status Provides Warnings to Staff 1. Open Products. 2. Select the Product Name. 3. On the Product Details tab select the detail line and check whether the product is a Stock/Inline, Non Stock/Not In Line, Discontinued, Inactive and Backordered. The Status Change button shows who changed the stock status

6 To Mark Products as Backordered 1. Open Products. 2. Select the Product Name. 3. On the Product Details tab select the detail line item. 4. Check Backordered and if applicable enter an estimated off backorder date. OR 5. When the PO is received and the product is backordered, enter a backorder ETA date. Setting Up OfficeMate to Sell from Sample Stock 1. Open Products. 2. Select the Product Name. 3. On the Product Details tab select the detail line. 4. Check Display Sample in the details panel. NOTE: A MDQ of 1 will be added to all locations except the DC, Company Lab and Home Office. Adjust accordingly. 5. Set the Stock Level to zero. Products will not be ordered unless the Sample has been sold. The Quantity Available for sale will always be 1 if QOH = 1 and MDQ = If the Sample Quantity is not 1, on the All Locations Inventory tab in the Min. Display Qty field enter the #. 7. When the Quantity Available (Quantity on Hand Minimum Display Quantity) is zero, a you are selling your sample warning message will display. To Allow Samples to be sold On the Setup/Location Preferences tab, select Yes or No on the Allow sample frames to be sold. To Allow a Sample Product to be sold when the Product is Backordered On the Setup/Preferences/Perpetual Inventory tab, on the When a product is backordered, allow the sample to be sold click Yes To Receive Warning Messages when selling a Frame or Lens if the product is Discontinued or Backordered On the Setup/Location Preferences form, on the Warn if the frame is Discontinued click Yes On the Setup/Location Preferences form, on the Warn if the frame is Backordered click Yes The same options are available on the Soft Contact Lens Order tab Other system messages Stock is available at the location if source = vendor and stock is not available if source = enclosed. To Sell from Stock on Hand when QOH = 0 and Not Receive a Warning Message Many users may elect to purchase and sell from stock on hand while not maintaining perpetual inventory, e.g. 25 frames are purchased and on hand and those frames are sold.

7 To sell from quantities on hand and not receive a warning message that the stock is not available: On the Setup/Preferences/Perpetual Inventory tab, on the Allow sale of Inventory items with zero quantity on hand without warning message click No System messages to the staff are: Product is available when the source = vendor. Product is not available when the source = enclosed from location. Frame Sources available on an Rx Order (Setup in the Location Preferences) Enclosed from Location takes reduces the frame quantity on hand Order From Vendor creates a PO from Fee Slip for the frame. Create an Rx order for Plano Sunglasses with Rx lenses. Contact Lens Sources on an Rx Order (Setup in the Location Preferences) From Stock reduces the frame quantity on hand. Order From Vendor creates a PO from Fee Slip for the lenses. Always create an Rx order for replenished lenses, do not sell them from the Fee Slip. Hard lenses do not have a PO created, use the lab order. To complete the Inventory Process by marking jobs as Received and Dispensed When a job is received in the store from the lab, open the RX order and mark the order as Received. When a job is dispensed to the patient, open the RX order and mark the order as Dispensed. Quantity Committed and In Process is reduced. Ship to Patient is automatically marked as dispensed. To Adjust Inventory Quantities 1. On the Task menu select the Inventory/Adjust. 2. Select the Location and adjustment reason. 3. Select the Product(s). NOTE: Don t enter a product name and click tab, the wrong product may be populated. Enter the name and click the Product Name/Code blue button and select the products to include on the PO 4. Click Record and Print. Tip: To not print the PO s setup a PDF printer and cancel the print before the PDF is created. To Adjust the Quantity from the Frame Order tab 1. If the stock is available but the inventory count is wrong, from the Frame Order tab, click the Adjust QOH button. 2. Increase the quantity The preference to display the button is in Location Preferences Display the adjust quantity on hand button.

8 4. The preference to display the quantity grid is also in the Location Preferences - If the frame is not available at the current store, display availability at other stores. To Transfer Products between Locations used for stock transfers or returns to the DC 1. On the Task menu select the Inventory/Transfer 2. Select the From and To Locations. 3. Select the Product(s). NOTE: Don t enter a product name and click tab, the wrong product may be populated. Enter the name and click the Product Name/Code blue button and select the products to include on the PO 4. Click Record and Print. Tip: To not print the PO s setup a PDF printer and cancel the print before the PDF is created. Quantity in Transit +1 at the To location and Quantity on Hand -1 at the From Location. To Receive Transferred Products 1. On the Task menu select Receive Transfers. 2. Enter the transfer number or click Find Open. 3. Mark the products quantity received 4. Click Record. Quantity in Transit 11 at the location and Quantity on Hand +1 at Location. Note: If POs are received at the DC for stores, transfers are automatically created. Standard Reports Available for Inventory Tracking Stock Status Frame Stock Status Order Recommendation Inventory Valuation Location Inventory Other custom reports created by you To See Current and Enter Actual Quantities on Hand after a Physical Inventory 1. From the Task menu select Inventory/Physical Count. 2. Select the Manufacturer and Count Cycle. To scan your Actual Inventory when they are Bar-coded 1. From the Task menu select Inventory/Scan Count. 2. Select the Manufacturer and Count Cycle. 3. Scan the Product Codes. To Close the Inventory Period 1. From the Task menu select Inventory/Period Close. 2. Select the Period to Close.

9 For Practices with Distribution Centers and/or Company Labs How to pick inventory at the DC and Ship to the Company Lab 1. From the Task menu select Inventory/Pick Product for Job and Ship to Location. 2. Enter the Product Type and Job Number and click Get Lab Order. 3. Click Picked Product for Job. How to receive the Frame at the Company Lab 1. From the Task menu select Inventory/Pick Product for Job and Ship to Location. 2. Enter the Product Type and Job Number and click Get Lab Order. 3. Click Product Received. How to Ship the Job to the Store 1. From the Task menu select Inventory/Pick Product for Job and Ship to Location. 2. Enter the Product Type and Job Number and click Get Lab Order. 3. Click Shipped to Location. How to Complete the Jobs at the Store 1. In the Rx Order, mark the order Received when the job is received back from the lab. In Process In the Rx Order, mark the order Dispensed when the job is dispensed to the patient. Quantity Committed -1 and In Process +1. How to Pick a Frame at another Location Store requesting frame Frame Source = From another Location and in the quantity grid, double click the location supplying the frame. At the location supplying the frame, from the Task menu select Inventory/Pick Product for Job and Ship to Location. Click Picked product for job. Quantity Count Definitions Quantity on Hand is decreased when the QOH >=1 and the product is sold from the fee slip or is marked as Enclosed from Location on the Rx Order. Quantity on Hand is increased when a PO is received from a manual PO or one that was created to replenish stock, not fulfill a patient order. It is also increased or decreased from Inventory Adjustments. Quantity Committed is increased when a product is ordered for a patient from the fee slip or an Rx order and the quantity is not on hand. Quantity Committed is decreased when a job is dispensed or a product is ordered from the fee slip and the PO is received. In Process is increased when a job is received in the store from a lab

10 In Process is decreased when a job is dispensed to a patient. Quantity on Order is increased when a PO from Fee Slip is created and when a job has the frame source as to come from the lab. It is also increased when a job is sent to a lab. Quantity on Order is decreased when a PO is received or when a job is received back from the lab. Quantity in Transit is increased when a transfer is created. Quantity on Hand is decreased. Quantity in Transit is decreased when a transfer is received. Quantity on Hand is increased. Inventory Definitions Qty on Hand (asset) (QOH) Physical stock on hand. Qty on Order (QOO) - Items on order from lab, DC, or Vendor, but not yet received at current site. Could be a frame sold from stock Qty in Transit (asset) (QIT) - Items sent from another site to the current site, but not yet received by the current site (NEW) - Qty Committed (liability) (QC) - Items sold to a customer, but not yet dispensed. QC is used instead of negative QOH. If a product is sold that is not in stock, the QC is +1. When the order is received, QC is -1. IF there is a QC, QOH is not adjusted. (NEW) - In Process (IP) - Items picked that are not yet dispensed or received but not yet dispensed, or a job received but not yet shipped to the store (perhaps, in a tray, or completed and ready for pickup). - Items sold to a customer that are being transferred between locations. Items ordered at the store with a ship to the lab or Dc and Received at the lab or DC. Transfers are automatically created. (NEW) - Minimum Display Quantity (MDQ) Sample Quantity. The number of products on display that are not to be sold. Used in the Quantity Available (QA) calculation. Quantity Available = QOH MDQ. (NEW) - Quantity Available (QA) = QOH MDQ. The quantity of product available for sale before a product availability message displays. Qty Sold (QS) - Items sold to a customer or from a lab to a site (regardless of the jobs status) (NEW) - Minimum Reorder Quantity (MRQ) the minimum quantity to order when a Purchase Order is created, For example, if MRQ = 12, orders will be placed in increments of 12 to get to the Stocking Level. PO from Fee Slip Purchase Orders created when an order is placed from the fee slip or RX and the Quantity on Hand is zero and the order is for a specific patient. Supplier On a soft lens order the supplier is the Vendor of the Soft Lens. On a Hard lens Order the Supplier is the lab making the hard lenses. Order Lens From On the Eyewear order, the Order Lens From is the Lab who makes the lenses that fit into the frame. Purchase Order from Quantity on Hand purchase orders created to replenish stock related to the Stocking Level and Reorder points and are not for specific patient orders. Quantity on Hand Ordering Formula - When a product is ordered, the ordering formula is: On Hand + On Order + In Transit + WIP Committed Minimum Display Quantity Target (what we want to have) = Stock Level

11 Available = Quantity On Hand + Quantity on Order + Quantity In Transit Quantity Committed - Minimum Display Quantity If Available is at or below reorder point, Quantity to order = Target Available If Minimum Order Qty > 1, Quantity to order is rounded up to next multiple of Minimum Order Qty