Tracking Consignment (Floor Plan) Inventory. Introduction. Setup

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Ralph Bishop
7 years ago
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1 Tracking Consignment (Floor Plan) Inventory Introduction This document describes the process for tracking consignment inventory within SuccessWare21. Using these procedures, quantities and average cost of consignment items can be managed without affecting your company balance sheet. These procedures can be used for floor plan arrangements as well, which may have an expiration date, at which time items must be purchased from the vendor. Setup 1. Add the General Ledger account that you wish to use when you are invoiced for the usage of consignment items. This account should be a Cost of Sale Account. 2. Go to the Reference Library>Pricebook and add an Expense type for the consignment items. Select the GL account that you added for these items. 3. Go to the Reference Library>Inventory Control and add an IC Adjust Code for the consignment items. Select the GL account that you added for these items. 4. Open the Pricebook and add a Category and Group(s) for consignment items. 5. Add the items that you will carry as consignment to the Group(s) in the Pricebook. Use the following scheme for creating item numbers: Cxxxxxx, where C is for Consignment, and xxxxxx is the item number you normally use for each particular item. You may use a letter other than C, but you should choose a letter that will not conflict with other part item numbers in your system. A unique beginning letter will facilitate reporting on your consignment items. If you have consignment with multiple vendors, use a different letter for each vendor. When adding the items make sure they are marked as counted items but DO NOT make them valued. (Making them valued will result in transactions posting to your inventory account.) 6. Open the Inventory Manager and select the Stock/Whse view. Add a warehouse named Consignment Inventory. This warehouse is for consignment items stored in your main warehouse. It is not necessary to create a new consignment warehouse for each truck separate from your existing truck warehouses. 7. Add all of the items that you will carry as consignment items to the warehouse s stock item list. Consignment Inventory 1

These procedures can be used for floor plan arrangements as well, which may have an expiration date, at which time items must be purchased from the vendor. Setup 1.

2 To add initial base quantities to the consignment warehouse, or to make additions/subtractions to/from the base quantity stocked: 1. Go into the Inventory Manager and add an Adjustment for the consignment warehouse. Use the IC Adjust Code that you added in Setup. 2. Select each item number and enter the counts that you wish to add to the warehouse. 3. Post the adjustment. Posting will NOT create any general ledger entries but will update the quantity on hand and average cost for the items. Consignment Inventory 2

Use the IC Adjust Code that you added in Setup. 2.

3 To record consignment usage: 1. When invoicing a job in which you used a consignment item, enter the item in the Parts Itemization page of Cost Entry, being sure to use the consignment item number. 2. Verify the items just as you would a normal inventory item. The system should indicate that you need to requisition the item(s). You will process the requisition, but be sure to select that you wish to requisition it from the consignment warehouse, if appropriate. 3. Post the inventory transactions and update invoice cost. Since the items are not valued, the system does NOT post any general ledger entries. It will only update your consignment stock counts. Consignment Inventory 3

Verify the items just as you would a normal inventory item. The system should indicate that you need to requisition the item(s).

4 To list items used: Open the Report Gallery and run the Inventory Transaction report. Enter the date range for which you need to list items used. Select the consignment warehouse. Or Select a truck warehouse and enter C% for the Item No, assuming you used C to represent consignment items. Select the Transaction Source Requistions only. Group by Item #. The report will list the items used during the date range and will give sub-totals by item number. A sample of that report follows. Consignment Inventory 4

Or Select a truck warehouse and enter C% for the Item No, assuming you used C to represent consignment items.

5 Consignment Inventory 5

6 To process vendor invoice for usage: When you enter the vendor s invoice for the used items, be sure to select the item numbers you set up for the consignment items. Posting the invoice will replenish the consignment stock counts and create the general ledger transactions to record the Cost of Sale. Floor plan expiration 1. Enter the vendor s invoice for the expiration of floor plan items. Be sure to select the item numbers you use for tracking your own inventory, NOT the item numbers you set up for the consignment items. Posting the invoice will update your inventory stock counts and create the general ledger transactions to record the increase to inventory. 2. If the items you were required to purchase are not being restocked, make any necessary adjustments to base stock levels using the procedures outlined in the section titled To add initial base quantities to the consignment warehouse, or to make additions/subtractions to/from the base quantity stocked. Consignment Inventory 6

Enter the vendor s invoice for the expiration of floor plan items.

The Purchasing Wizard

The Purchasing Wizard INTRODUCTION The Purchasing Wizard allows for the creation of purchase orders based upon restocking requirements (min/max or usage) or task parts lists. The wizard automatically creates