Configuring Inventory and Order ManagementLesson 3

Configuring Basic Inventory and Order Management

Back to D100: Inventory Order Management Basics

Lesson 3: Configuring Basic Inventory and Order Management

Part 1: Configuring Inventory and Order Management

This lesson explains the minimum configuration of the order management functionality that is required for

Acumatica ERP users to process the sales and purchases of stock items through sales orders and purchase orders. Configuration of Order Management: General Information

This topic provides a general overview of the configuration steps that you have to perform before you can track inventory items and users can process sales and purchases of inventory items through orders.

Learning Objectives

In this lesson, you will do the following:

  • Learn about the system features that are required for inventory and order management
  • Specify the minimum required configuration for the inventory, purchase order, and sales order management functionality
  • Become familiar with the recommended settings that you can specify to make the system fit your business requirements

Applicable Scenarios

You perform configuration of inventory and order management in any of the following cases:

  • You are initially implementing Acumatica ERP and the Inventory and Order Management and Inventory features are included in your license.
  • Your new license includes the Inventory and Order Management and Inventory features, and you need to configure inventory and order management in the existing system.

System Features to Be Enabled

To be able to configure and use the inventory and order management functionality in the system, you need to enable the following features on the Enable/Disable Features (CS100000) form:

  • Inventory and Order Management: Required for sales order management and purchase order management and allows you to configure purchase order processing for regular orders and configure sales order processing with the predefined order types.
  • Inventory: Required for inventory management. A warehouse included in the basic functionality has one warehouse location, which is configured in the system automatically. This warehouse and location are used by default for receiving and issuing all inventory items and are not displayed on the forms.
            Each particular feature may be subject to additional licensing; please consult the Acumatica ERP sales
        policy for details.

Creation of Inventory Entities

The primary inventory entity defined in Acumatica ERP is stock items: the finished goods and raw materials that cost money, have value, and are stored. For each stock item, you create a record on the Stock Items (IN202500) form that holds the settings of the item, such as the GL accounts assigned to the item and the rules for the item's availability calculation. Before you start creating stock items in the system, you need to create the following entities that are used in the item's settings:

  • Posting classes on the Posting Classes (IN206000) form: You must create posting classes before you start creating item classes. For details about these classes and their implementation, see Creating Posting Classes.
  • Units of measure on the Units of Measure (CS203500) form (optional): If you need to create units of measure for item classes or stock items beyond those that are predefined in the system, this should be done before you start creating item classes. For details, see Creating Units of Measure.
  • Availability calculation rules on the Availability Calculation Rules (IN201500) form: You must create availability calculation rules before you start creating item classes. For details, see Creating Availability Calculation Rules.
  • Item classes on the Item Classes (IN201000) form: You must create item classes before you start creating stock items. For details, see Creating Item Classes for Stock Items.
             The order in which you create entities is important, because some entities derive settings from other
         entities or use them in other ways. You first create posting classes, units of measure, and availability
         calculation rules in any order; you then create the item classes for which these entities will be used
         as settings. Aer item classes have been created, you create the stock items on the Stock Items
         (IN202500) form that will belong to these item classes and will derive settings from them. (See the
         following diagram.)

    Figure: The use of settings in inventory entities
    For details, see Creating Stock Items.

Configuration of Order Management: Implementation Activity

In this implementation activity, you will learn how to prepare the system to support the tracking of inventory and the processing of sales and purchase orders with stock items.

Story

Suppose that you are an implementation manager for the SweetLife Fruits & Jams company, and you need to configure the system for the processing of sales and purchases of stock items through orders.

Process Overview

In this activity, you will do the following:

  1. Configure inventory preferences on the Inventory Preferences (IN101000) form
  2. Configure sales order preferences on the Sales Orders Preferences (SO101000) form
  3. Configure purchase order preferences on the Purchase Orders Preferences (PO101000) form
  4. Review the company's units of measure on the Companies (CS101500) form
  5. Configure inventory control accounts on the Chart of Accounts (GL202500) form

System Preparation

Before you start configuring the inventory and order management functionality, you should do the following:

  1. On the Enable/Disable Features (CS100000) form, make sure that the Inventory and Order Management and Inventory features are enabled.
  2. On the Reason Codes (CS211000) form, create and save the reason codes that are required for configuring inventory and order management, as described in Reason Codes: Implementation Activity.
  3. On the Order Types (SO201000) form, activate at least the SO order type, as described in Sales Order Types: Implementation Activity.

Step 1: Configuring Inventory Preferences To configure the inventory functionality, do the following:

  1. Open the Inventory Preferences (IN101000) form.
  2. In the Default Reason Codes section of the General tab, specify the following settings:
  • Receipt Reason Code: INRECEIPT
  • Issue/Return Reason Code: INISSUE
  • Adjustment Reason Code: INADJUST
  • Phys. Inventory Reason Code: PHYINVADJ
  1. In the Posting Settings section, select the Update GL check box.
  2. In the Data Entry Settings section, clear the Hold Documents On Entry and Validate Document Totals on Entry check boxes.
  3. On the form toolbar, click Save.

Step 2: Configuring Sales Order Preferences To configure the sales order functionality, do the following:

  1. Open the Sales Orders Preferences (SO101000) form.
  2. In the Data Entry Settings section of the General tab, make sure that SO is selected in the Default Sales Order Type box. This is the predefined sales order type used for the processing of stock items with shipping.
  3. In the Shipment Settings section, clear the Hold Shipments on Entry and Validate Shipment Total on Confirmation check boxes.
  4. In the Invoice Settings section, clear the Hold Invoices on Failed Credit Check check box.
  5. In the Posting Settings section, select the Automatically Release IN Documents check box.
  6. On the form toolbar, click Save.

Step 3: Configuring Purchase Order Preferences To configure the purchase order functionality, do the following:

  1. Open the Purchase Orders Preferences (PO101000) form.
  2. In the Validate Total on Entry section of the General tab, make sure that the For Normal and Standard Orders and For Receipts check boxes are cleared.
  3. In the Other section, specify VENDORRET as the PO Return Reason Code.
  4. Select the Release IN Documents Automatically and Release AP Documents Automatically check boxes.
  5. Clear the Hold Receipts on Entry check box.
  6. On the form toolbar, click Save.

Step 4: Reviewing the Company’s UOMs To review the settings of the company’s units of measure (UOMs), do the following:

  1. Open the SWEETLIFE company on the Companies (CS101500) form.
  2. In the Miscellaneous Settings (Shared) section of the Company Details tab, make sure that KG has been specified in the Weight UOM box and LITER in the Volume UOM box.

Step 5: Reviewing Inventory Control Accounts To review the control accounts needed for inventory operations, do the following:

  1. Open the Chart of Accounts (GL202500) form.
  2. Search for the 12100 account that has Inventory Asset in the Description column.
                  To search for a record in a list or records, you can enter a text string in the Search box of the
              filtering area. The system will find all the records that match your search criteria and display
              these records in the table. For details, see Searching in Acumatica ERP.
  3. In the Control Account Module column for the 12100 - Inventory Asset account, make sure that IN is specified.
  4. Search for the 20100 account that has Inventory Purchase Accrual in the Description column.
  5. In the Control Account Module column for the 20100 - Inventory Purchase Accrual account, make sure that PO is specified.
    You have configured the basic inventory and order management functionality. Now you can proceed with configuring inventory entities.