Inventory Valuation -

Inventory Valuation - Inventory valuation means. First in First Out [FiFo] Step Action 1. From the Start Center select Go To > Inventory > Item Master. 2. Click the Insert New Item toolbar button. Result: A blank Item screen is displayed. 3. Type the following in the Item field: FIL-5000 4. Type the following in the Description field: Filter, 25x25x5000 5. Type EA / EACH in the Order Unit and Issue Unit fields.

6. Your screen should look similar to this: 7. Complete any other fields needed for your business. You can add any image to this item using Select Action -> Add/Modify Image. Pick up any image file from my pictures folder. 8. Click Save. 9. Click Select Action > Add Items to Storeroom. Result: The Add Items to Storeroom dialog box is displayed

10. Either type in a valid storeroom or use the field assistant ( look up a valid storeroom. ) to Select Storeroom as CENTRAL in Bedford site 11. Click OK. Result: The Storeroom information fields are displayed in the dialog box. Select Central storeroom for this item. 12. Complete the following fields: Default Bin= B01 Standard Cost = 10 Current Balance = 10 13. Click OK. Result: The Item Master is saved and the Inventory Record can now be used for work.

14. Click the Vendors tab. 15. In the Vendor field, click on the Detail Menu button and select FSC. Result: Maximo returns the vendor s name, description, and currency. 16. In the Promised Lead Time (Days) field, enter 4. (Note: This signifies the number of days it takes the vendor to supply the item.) 17. Complete the remaining information. Result: The vendor is associated to the item record. 18. Click Save to save the record. 19. Change the status of Item to Active and tick the checkbox add new status to inventory and organization 20. ORDER FIFO ITEM thru PO 21. Create a new Purchase Order thru GoTo Purchasing Purchase Order Enter the following details PO PO-5000 Description Purchase Order for FIL-5000 Vendor FSC Save the PO.

22. Click on POlines and Select FIL-5000 using vendor s Item 23. Enter the quantity = 10 and Unit cost = 20 24. Enter storeroom as CENTRAL and conversion factor =1 Approve the PO. 25. Go to Receiving application and receive these 10 quantities against the PO = PO-5000 26. So, we have same item = FIL-5000 ordered twice with a different unit rates. First time 10 quantities @ 10 per unit and second time 10 quantities @20 per units.

27. Let s now issue some of the quantities. Before we do that, let s change the cost type as FIFO for site = BEDFORD GoTo Administrator Organizations Highlight the site BEDFORD first and then select issue cost as FIFO 28. Create a new workorder to reference at the time of material issue- WO = WO-5000 Description Work order for FIL-5000 Issue GL Account 6100-200-200 29. Approve the work order 30. Now go back to Inventory application and fetch the item record for FIL-5000 31. Click on Select Action Issue Current Item and Select Work Order = FIL-5000 to issue

32. Issue quantity = 2 against this work order 33. Check the Inventory LIFO/FIFO table for details You would observe that system has posted this issue @ 10. 34. Check the work order FIL-5000 and verify the Actuals tab and Materials subtab. 35. Now issue 12 quantities against this work order.

36. Now, since only 8 quantities were available so to issue 12 quantities, first 8 got issued @10 and other 4 got issued @20. 37. Go to Work Order FIL-5000 and verify the status of Actuals Actuals tab => Material Sub tab

Last in First Out [LiFo] Step Action 1. GoTo Administrator Organizations Change the cost type as LIFO for site = BEDFORD Click OK and Save the record 2. Create a new workorder to reference at the time of material issue- WO = FIL-5005 Description Work order for FIL-5005 Issue GL Account 6100-200-200 Approve the work order

3. Create a new Item = FIL-5005 From the Start Center select Go To > Inventory > Item Master. 4. Click the Insert New Item toolbar button. Result: A blank Item screen is displayed. 5. Type the following in the Item field: FIL-5005 6. Type the following in the Description field: Filter, 25x25x5005 7. Type EA / EACH in the Order Unit and Issue Unit fields. Click Save. 8. Change Status of this Item to Active 9. Now, take this item to storeroom location Click Select Action > Add Items to Storeroom.

10. Enter the following details Unit Cost = 15 Current Balance = 10 11. Click ok and save the record. 12. Let s create a new PO to receive this item again GoTo Purchasing Purchase Order Click on Create New PO Enter the following details PO PO-5005 Description Purchase Order for FIL-5005 Vendor FSC Save the PO. 13. Click on POlines and Select FIL-5005 Item

14. Enter the quantity = 10 and Unit cost = 20 15. Enter storeroom as CENTRAL and conversion factor =1 Approve the PO. 16. Go to Receiving application and receive these 10 quantities against the PO = PO-5005 17. So, we have same item = FIL-5005 ordered twice with a different unit rates. First time 10 quantities @ 15 per unit and second time 10 quantities @20 per units.

18. Now, go to Inventory Application and Issue 12 units against the workorder WO-5005 19. Click on Select Action -> View Inventory Transaction -> 20. You would observe that this single transaction of issue of 12 quantities, got split in to 2. The first one with 10 quantity @20 and second 2 quantity @15 as per the Last in Fist out [LIFO] costing method.

Receipt Tolerance: Step Action 1. Create a new Item = FIL-5555 From the Start Center select Go To > Inventory > Item Master. 2. Type EA / EACH in the Order Unit and Issue Unit fields. Click Save. 3. And change the Status of this Item to Active

4. Now, take this item to storeroom location Click Select Action > Add Items to Storeroom. 5. Create a new Purchase Order and include line item as PO-5555 Use FSC as vendor Order for 10 quantities Enter Charge to as storeroom - CENTRAL

6. Enter Receipt Tolerance % as 10 Approve the PO. 7. Go To > Purchasing > Receiving application and receive the ordered material for PO PO-5555 Enter the quantity due as 13 in place of ordered 10

8. System would prompt the message that This message got appeared because of receipt tolerance defined for this item. Click Cancel and try receiving quantity =11 System would again display the message, but that is little different. Click OK and receive the item.

Receipt Void: Step Action 1. Open the PO = FIL-5555 created in last exercise. 2. Duplicate this PO using Select Action => Duplicate PO and assign a new name as PO4Void 3. Approve the PO 4. Go to Receiving Application and receive this item against the PO = PO4VOID Click on Select Ordered Items Save the record. The receipt is complete. Check the list tab.

5. Now, click on select receipts to void 6. Select the Item FIL-5555 to void the receipt. 7. System posts another transactions as below 8. Observe that the receipt status is now Partial 9. Receive the material again to finish this exercise.