SageAccpac INVENTORY CONTROL User Manual

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ACCPAC International, Inc. Publisher

No part of this documentation may be copied, photocopied, reproduced, translated, microfilmed, or otherwise duplicated on any medium without written consent of ACCPAC International, Inc.

Use of the software progra m s desc ri bed her ein a nd this do c u m enta tio n is su bj ect to the ACCPAC I nternational License Agreement enclosed in the softw are pa ckage.

ACCPAC, the A C CP A C lo go , and Si m ply Accounting are either registered trademarks o r trademarks of ACCPAC International, I nc. or its aff iliates in the United States and/or other countries. All o ther ma rks are tradem arks o r registered tradem a rks of their resp ective companies.

ACCPAC International, Inc.

End User License Agreement for Indicated

Evaluation, Demonstration or Retail Software

THIS END USER LICENSE AGREEMENT APPLIES TO THESE ACCPAC SOFTWARE PRODUCTS:

ACCPAC Advantage Series

ACCPAC Warehouse Management System

ACCPAC Options

BPI Accounting II

™

ACCPAC Plus

Simply Accounting

ACCPAC Pro Series Small Business Edition

™

BitWare

Simply BitWare

FAXserve

Simply BitFax

™

IMPORTANT — READ CAREFULLY BEFORE YOU INSTALL OR USE THIS SOFTWARE:

(“

”) is a legal agreement between You (“

EULA

International, Inc. (“

ACCPAC

respectively referred to as “ “

Software

”). The Software includes all component parts, the associated m edia, any printed materials, any updates, and any “online”

”) concerning the specified evaluation, demonstration and/or retail software products(s) (hereinafter

Evaluation Product

” and “

You

,” “

Demonstration Product

” includes a person and/or an individual entity) and ACCPAC

Your

” and “

Retail Product

This End User License Agreement

”; and collectively referred to as

or electronic documentation, as applicable. By accessing, installing, copying or otherwise using the Software, You agree to be bound by the terms of this EULA. If You do not agree to the terms of this EULA, ACCPAC is unwilling to license the Software to You. In such event, You may not access, use or copy the Software, and You should promptly contact ACCPAC for instructi ons on returning the Software. WRITTEN ASSENT IS NOT A PREREQUISITE TO THE VALIDITY O R ENFORCEABILITY OF THIS EULA.

___________________________________________________________________________________________________________________________________

1. License a. License Grant (i) Retail Product

. If You licensed a Retail Product, subject to the payment of all applicable license fees, and the terms and conditions of this EULA, ACCPAC hereby grants to You a limited, non-sublicensable, non-exclusive, non-transferable right to install and run one copy of the specified version of the Software and the accompanying documentation, solely for Your individual use. This EULA authorizes You to mak e one copy of the Retail Product solely for backup or archival purposes, provided that the copy You make contains all of the proprietary notices set forth in or on the original version of the Software.

(ii) Demonstration Product

. If You licensed a Demonstration Product, subject to the payment of all applicable license fees, and the terms and conditions of this EULA, ACCP AC hereby grants to You a limited, non-sublicensable, non-exclusive, nontransferable and revocable right to instal l and run copies of the Dem onstration Product and the accom panying documentation, solely on computer(s) owned or controlled exclusively by You, for Your individual use and for demonstration, marketi ng, promotional, end user support, training and/or development purposes, each to the extent permitted and/or required under the applicable ACCPAC Solution Provider, Certified Consultant, Development Partner, Professional Accountant Recommender, Online Referral Partner, Hosting Partner, Recognized T raining Center, Distribution Agreem ent or other applicable agreements between You and ACCPAC (collectively the “

Other ACCPAC Agreement

”). Use of the Demonstration Product is limited to not more than the number of concurrent users and/or seats as specified in the Other ACCPAC Agreem ent, multi-user license, product packaging or accompanying documentation. This EULA authorizes You to mak e one copy of the Demonstration Product solely for backup or archival purposes, provided that the copy You make contains all of the proprietary notices set forth in or on the original version of the Software. You may have additional rights as may be set forth in the applicable Other ACCPAC Agreement.

(iii) Evaluation Products

. If You licensed an Evaluation Product, subject to the terms and conditions of this EULA, ACCPAC hereby grants to You a limited, non-sublicensable, non-exclusive, non-transferable and revocable right to install and run one copy of the Evaluation Product and the accompanying documentation, solely for Your individual use for evaluation purposes.

(iv) All Software alphanumeric key (the “

. Upon receipt of the appropriate Software registration information, ACCPAC will provide You an

Activation Code

” or “

PAC Code

”) to enable You to use the Software pursuant to the terms of this EULA. Documentation shall include, but not be lim ited to, any printed materials, “online” or electronic data provided by or obtained from ACCPAC with regard to this Software (“

Documentation

”). The Software and Documentation are licensed, not sold. Even though copies of the Software may be provided on media of different formats, copies of the Software on different media formats do not constitute multiple licenses to the Software. If the Software is licensed as a suite or bundle with more than one specified Software product, this EULA applies to all such specified Software products, subject to any restrictions or usage terms specified on the applicable product packaging or accompanying documentation that applies to any of such Software products individually.

b. Single-User

. If this Software is licensed as a single user product, You may use only one copy of the Software, by not more than one user at a tim e, on a total of one computer or workstation, or personal di gital assistant, or pager, or “smart phone,” or one such other electronic device for which the Software was designed (“

Client Device

”), unless otherwise set forth herein. The component parts of the Software may not be used individually or jointly in full or in part on more than one Client Device, unless otherwise set forth herein. The Software is “in use” on a computer when it is loaded into the temporary memory (i.e., random-access memory or RAM) of that Client Device.

c. Multi-User

. If the Software is licensed with multi-user or networked license terms, You may use the Software on one server computer, or a greater number as specified in the applicable multi-user license, product packaging or accompanying documentation, within a multi-user or networked environment for connecti ng, directly or indirectly, to not more than the maximum number of Client Devices, concurrent users and/or seats, as specified in the applicable multi-user license, product packaging or accompanying documentation. Use of software, hardware or services that bypass any Software license restrictions and/or reduce the number of Client Devices, concurrent users and/or seats, as may be applicable, accessing or utilizing the Software (e.g., “multiplexing,” “pooling,” or third party add on software or hardware) expressly does not reduce the number of licenses required (i.e., the required number of licenses would equal the number of distinct inputs to the m ultiplexing or pooling software or hardware “front

end”). If the number of Client Devices, concurrent users and/or seats that can potentially connect to the Software exceeds or has the potential to exceed the number of licenses You have obtained, then You must have a reasonable self-enforcing automatic mechanism in place to ensure that Your use of the Software does not exceed the use limits specified for the license You have obtained.

2. Term conditions of this EULA. This EULA will terminate automatically if You fail to comply with any of the limitations or other requirements described herein, and such termination shall be in addition to and not in li eu of any criminal, civil or other remedies available to ACCPAC. W hen this EULA terminates, You must imm ediately cease using the Software and destroy all copies of the Software and the Documentation. You may terminate this EULA at any point by destroying all copies of the Software and the Documentation.

a. Retail Product EULA earlier, in accordance with the terms set forth herein.

b. Demonstration Product ACCPAC termi nates the EULA earlier, in accordance with the term s set forth herein or the terms set forth in Your Other ACCPAC Agreement or upon the earlier termination or expiration of Your Other ACCPAC Agreement.

c. Evaluation Product date this Evaluation Software is downloaded, installed or first run and thereafter continuing for the period specified in the product packaging or accompanying docum entation, unless sooner terminated by You or ACCPAC in accordance with the terms set forth herein, but in no event shall such term exceed one hundred and eighty (180) days.

3. Updates maintenance service, if applicable and offered, is available for R etail Product at an additional cost to You, as Licensee, under a separate written agreement. ACCPAC’s maintenance service is not available for Evaluation Product.

4. Ownership Rights a. Ownership of Software

other intellectual property laws, and international treaty provisions. ACCPAC and its third party licensors, if any, retain all title to and, except as expressly and unambiguously licensed herein, all rights and interest in (a) the Software, including, but not l imited to, all copies, versions, customizations, compilations and derivative works thereof (by whomever produced) and all related Documentation; (b) the ACCPAC trademark s, service m ark s, trade nam es, i cons and logos; (c) any and all copyright rights, patent rights, trade secret rights and other intellectual property and proprietary rights throughout the world in the foregoing; and (d) all Confidential Information (as defined in Section 14 below). You acknowledge that Your possession, installation, or use of the Software does not transfer to You any ownership, title, or registrable interest of any kind to the intellectual property in the Software, and that You will not acquire any rights to the Software except as expressly set forth in this EULA. You agree that all backup, archi val, or any other type of copies of the Software and Documentation will contain the same proprietary notices that appear on and in the Software and Documentation.

b. Submissions website(s), or otherwise, whether as feedback, data, questions, comments, ideas, concepts, techniques, suggestions or the like, You agree that such submissions are unrestricted and shall be deemed non-confidential upon submission. You grant to ACCPAC and its assigns a non-exclusive, royalty-free, worldwide, perpetual, irrevocable license, with the right to sublicense, to use, copy, transmit, distribute, create derivative works of, commercialize, display and perform such submissions.

5. Restrictions its components. You may only install and use the Software on hardware which is (a) under Your exclusive control and (b) in the case of hardware performing any server functions, located at premises where You normally conduct day-to-day business operations. Notwithstanding the foregoing, if the Software is hosted under the auspices of an authorized ACCPAC Hosting Partner, it may be installed on server hardware located at premises under the exclusive or primary control of such Hosting Partner or its agent. You may not permit any parent, affiliate, subsidiary or any other third parties to benefit from the use or functionality of the Software, either directly or via a facility management, timesharing, service bureau or any other arrangement; provided, however, that You may use the Software, as provided herein, to process the data of an affiliate or subsidiary of which You own more than fifty percent (50%); provided, however, You may not exceed the number of datasets specified on the applicable product packagi ng or accompanying documentation. You may not use the Software as part of a facility management, timesharing, or service bureau arrangement. You may not transfer any or all of the rights granted to You under this EULA. To the maximum extent this restriction is permitted under applicable law, You may not rename files of, modify, translate, localize, decompile, disassemble, decrypt, reverse engineer, attempt to derive source code from, remove any proprietary notices from, or create derivative works based upon the Software, in whole or in part. You may not duplicate or copy any portion of the Software or Documentation, unless otherwise set forth herein. You may not remove any proprietary notices or labels on the Software, including, but not lim ited to, the ACCPAC and product names wherever they may appear. All rights not expressly set forth hereunder are reserved by ACCPAC. ACCPAC reserves the right to periodically conduct audits upon advance written notice to verify compliance with the terms of this EULA.

6. Warranty and Disclaimer a. Limited Warranty

Software is contained will be free from defects in materials and workmanship. b. Customer Remedies

To receive replacement of defective m edia, You must receive a return authorization number from A CCPAC and return the defective media to ACCPAC at Your expense with a copy of Your receipt. This limited warranty is void if the defect has resulted from accident, abuse, or misapplication. Any replacement media will be warranted for the remainder of the original warranty period. This remedy is not available to the extent it is prohibited under United States export control laws and regulations.

c. Warranty Disclaimer LIMITED WARRANTY SET FORTH HEREIN, THE SOFTWARE (AND ACCOMPANYING DOCUMENTATION) IS PROVIDED ON AN “AS IS” BASIS WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED. WITHOUT LIMITING THE FOREGOING

. Regardless of the location of the Software, You are responsible for strict compliance with any and all of the terms and

. If You licensed a Retail Product, this EULA is effective unless and until You or ACCPAC terminates the

. If You licensed a Demonstration Product, this EULA is effective unless and until You or

. If You licensed an Evaluation Product, this EULA is effective for a period commencing on the earliest

. ACCPAC may, at its sole discretion, make bug fixes, updates and/or service packs available. ACCPAC’s

. The Software and Documentation are protected by United States patent, copyright laws and

. Should You decide to submit any materials to ACCPAC via electronic mail, through or to ACCPAC

. You may not rent, lease, sublicense, loan, sell, distribute, market or comm ercialize any portion of the Software or

. ACCPAC warrants that for ninety (90) days from the date of original purchase the media on which the

. ACCPAC’s entire liability and Your exclusive remedy shall be replacement of the defective media.

. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND EXCEPT FOR THE

PROVISIONS, YOU ASSUME SOLE RESPONSIBILITY FOR SELECTING THE SOFTWARE TO ACHIEVE YOUR INTENDED RESULTS, AND SOLE RESPONSIBILITY FOR THE INSTALLATION OF, USE OF, AND RESULTS OBTAINED FROM THE SOFTWARE. WITHOUT LIMITING THE FOREGOING PROVISIONS, ACCPAC MAKES NO WARRANTY T HAT THE SOFTWARE WILL BE ERROR-FREE, VIRUS FREE, OR FREE FROM INTERRUPTIONS OR OTHER FAILURES OR THAT THE SOFTWARE WILL SATISFY YOUR SPECIFIC REQUIREMENTS. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, ACCPAC DISCLAIMS ALL WARRANTIES AND CONDITIONS, EITHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING BUT NOT LIMITED TO ANY (IF ANY) IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, OF FITNESS FOR A PARTICULAR PURPOSE, OF LACK OF VIRUSES, OF LACK OF ACCURACY OR COMPLETENESS OF RESPONSES, OF RESULTS, AND LACK OF NEGLIGENCE OR LACK OF WORKMANLIKE EFFORT, ALL WITH REGARD TO THE SOFTWARE AND ASSOCIATED DOCUMENTATION. THERE IS NO WARRANTY OR CONDITION OF TITLE, QUIET ENJOYMENT, QUIET POSSESSION, CORRESPONDENCE TO DESCRIPTION, OR NON-INFRINGEMENT WITH REGARD TO THE SOFTWARE. THE ENTIRE RISK OF THE QUALITY OF OR ARISING OUT OF USE OR PERFORMANCE OF THE SOFTWARE, IF ANY, REMAINS SOLELY WITH YOU. SOME STATES AND JURISDICTIONS DO NOT ALLOW LIMITATIONS ON IMPLIED WARRANTIES, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. THE FOREGOING PROVISIONS SHALL BE ENFORCEABLE TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW.

d. Indemnification affiliates, sublicensees, and agents from and against all claims, defense costs (including reasonable expert and attorneys’ fees), judgments and other expenses arising out of or on account of any negligent act, omission, or willful misconduct by You or on Your behalf in (i) the installation or use of the Software or (ii) your compliance or failure to comply with this EULA.

e. Data LIKELIHOOD OF HUMAN AND MACHINE ERRORS, MALICIOUS MANIPULATION, OMISSIONS, DELAYS, AND LOSSES, INCLUDING, BUT NOT LIMITED TO, INADVERTENT LOSS OF DATA OR DAMAGE TO MEDIA THAT MAY RESULT IN LOSS OR DAMAGE TO YOU AND/OR YOUR PROPERTY, AND/OR YOUR DETRIMENTAL RELIANCE ON MALICIOUSLY MANIPULATED DATA. ACCPAC SHALL NOT BE LIABLE FOR ANY SUCH ERRORS, OMISSIONS, DELAYS, OR LOSSES. YOU ARE RESPONSIBLE FOR ADOPTING REASONABLE MEASURES TO LIMIT THE IMPACT OF SUCH PROBLEMS, INCLUDING BACKING UP DATA, ADOPTING PROCEDURES TO ENSURE THE ACCURACY OF INPUT DATA, EXAMINING AND CONFIRMING RESULTS PRIOR TO USE, ADOPTING PROCEDURES TO IDENTIFY AND CORRECT ERRORS AND OMISSIONS, REPLACING LOST OR DAMAGED MEDIA, AND RECONSTRUCTING DATA. YOU ARE ALSO RESPONSIBLE FOR COMPLYING WITH ALL LOCAL, STATE, AND FEDERAL LAWS PERTAINING TO THE USE AND DISCLOSURE OF ANY DATA. IF YOU LICENSED AN EVALUATION PRODUCT, YOU ACKNOWLEDGE AND UNDERSTAND (I) THAT THE EVALUATION PRODUCT MAY BE USED FOR EVALUATION PURPOSES ONLY, (II) THAT THE EVALUATION PRODUCT SHALL BE OPERABLE ONLY FOR A LIMITED TIME AND (III) THAT, UPON EXPIRATION OF THE EVALUATION PERIOD, ANY DATA OR OTHER INFORMATION USED WITH, PROCESSED BY AND/OR STORED IN CONJUNCTION WITH THE EVALUATION PRODUCT MAY BE IRRETRIEVABLE, UNRECOVERABLE AND/OR OT HERWISE UNUSABLE.

f. Authorized ACCPAC Solution Providers and Certified Consultants PROVIDER, CERTIFIED CONSULTANT, RESELLER, INSTALLER OR CONSULTANT IS NOT AFFILIATED WITH ACCPAC IN ANY CAPACITY OTHER THAN AS A RESELLER, INSTALLER OR CONSULTANT OF ACCPAC’S PRODUCTS AND HAS NO AUTHORITY TO BIND ACCPAC OR MODIFY ANY LICENSE OR WARRANTY. ACCPAC MAKES NO REPRESENTATIONS, WARRANTY, ENDORSEMENT OR GUARANTEE WITH RESPECT TO THE SKILLS OR QUALIFICATIONS OF ANY AUTHORIZED ACCPAC SOLUTION PROVIDER, CERTIFIED CONSULTANT, RESELLER, INSTALLER OR CONSULTANT AND YOU ARE ENCOURAGED TO INDEPENDENTLY INVESTIGATE THE SKILLS AND QUALIFICATIONS OF ANY AUTHORIZED ACCPAC SOLUTION PROVIDER, CERTIFIED CONSULTANT, RESELLER, INSTALLER OR CONSULTANT WITH WHOM YOU ASSOCIATE.

7. Limitation of Liability CONTRACT, OR OTHERWISE, SHALL ACCPAC BE LIABLE TO YOU OR TO ANY OTHER PERSON OR ENTITY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY CHARACTER WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, LOSS OF GOODWILL, LOSS OF CONFIDENTIAL OR OTHER INFORMATION, FOR BUSINESS INTERRUPTION, WORK STOPPAGE, COMPUTER FAILURE OR MALFUNCTION, FOR PERSONAL INJURY, LOSS OF PRIVACY, FOR FAILURE TO MEET ANY DUTY INCLUDING A DUTY OF GOOD FAITH OR OF REASONABLE CARE, FOR NEGLIGENCE (WHETHER ACTIVE OR PASSIVE), AND FOR ANY OTHER PECUNIARY OR OTHER LOSS WHATSOEVER) ARISING OUT OF OR IN ANY WAY RELATED TO THE USE OR INABILITY TO USE THE SOFTWARE, OR OTHERWISE UNDER OR IN CONNECTION WITH ANY PROVISION OF THIS EULA, EVEN IN THE EVENT OF FAULT, TORT (INCLUDING NEGLIGENCE, AND GROSS NEGLIGENCE), STRICT LIABILITY, BREACH OF CONTRACT, OR BREACH OF WARRANTY BY ACCPAC, AND EVEN IF ACCPAC HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT WILL ACCPAC BE LIABLE FOR ANY DAMAGES IN EXCESS OF THE LIST PRICE ACCPAC CHARGES FO R A LICENS E TO THE SOFTWARE. THIS LIMITATION OF LIABILI TY SHALL NOT APPLY TO LIABILI TY FOR DEATH OR PERSONAL INJURY TO THE EXTENT THAT APPLICABLE LAW PROHIBITS SUCH LIMITATION. FURTHERMORE, SOME STATES AND JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THIS LIMITATION AND EXCLUSION MAY NOT APPLY TO YOU. THE FOREGOING PROVISIONS SHALL BE ENFORCEABLE TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW.

8. Entire Agreement ACCPAC shall not be bound by or liable to You for any pre-existing or contemporaneous written or oral representations or warranties, made by anyone, with respect to the Software Product, including any authorized Solution Provider, Certified Consultant, distributor or reseller or their respective agents, employees, or representatives, nor shall You be deemed a third party beneficiary of any obligations of ACCPAC to any such Solution Provider, Certified Consultant, distributor or reseller.

9. Attorneys’ Fees shall be entitled to recover its reasonable attorneys’ fees, costs, and other expenses.

. YOU ACKNOWLEDGE THAT ANY DATA ENTRY, CONVERSION OR STORAGE IS SUBJECT TO THE

. You agree to defend, indemnify and hold harmless ACCPAC and its directors, officers, employees,

. ANY AUTHORIZED ACCPAC SOLUTION

. UNDER NO CIRCUMSTANCES AND UNDER NO LEGAL THEORY, WHETHER IN TORT,

. This EULA expressly supersedes and completely replaces any and all prior end user license agreements.

. If any party employs attorneys to enforce any rights arising out of or relating to this EULA, the prevailing party

10. Severability. If any provision of this EULA is held to be unenforceable, the enforceability of the remaining provisions shall in no way be affected or impaired thereby.

11. United States Government software” and “commercial computer software documentation,” respectivel y, pursuant to DFAR Section 227.7202 and FAR Section

12.212, as applicable. Any use, modification, reproduction, release, performance, display or disclosure of the Software and accompanying Documentation by the United States Government shall be governed solely by the terms of this EULA and shall be prohibited except to the extent expressly permitted by the terms of this EULA.

12. Export Controls

. You acknowledge that the Software may be subject to export controls imposed by U.S. laws and regulations. During the term of this EULA, You agree to comply with the U.S. Foreign Corrupt Practices Act and with all export laws and restrictions and regulations of the United States Department of Com merce or other United States or foreign agency or authority, and not to knowingly export, re-export, download, or allow the export, re-export or downloading of the Software or Documentation and any underlying information or technology in viol ation of any such restrictions, laws or regulations, to A fghanistan, Cuba, Iran, Iraq, Libya, North Korea or to any Group D:1 or E:2 country (or to any national of such countries), specified in the then current Supplement No. 1 to Part 740, or i n violation of the em bargo provisions in Part 746 of the U.S. Export Administration R egulations (or any successor regulations or supplement), except in compliance with all licenses and approvals required under applicable export laws and regulations, including, without limitation, those of the United States Department of Commerce. By accessing, installing, downloading or using the Software You are agreeing to the foregoing and You are certifying that You are not located in, under the control of, or a national or resident of any such country or on any such list.

EXPORT OF THE SOFTWARE MAY BE SUBJECT TO COMPLIANCE WITH THE RULES AND REGULATIONS PROMULGATED FROM TIME TO TIME BY THE BUREAU OF EXPORT ADMINISTRATION, UNITED STATES DEPARTMENT OF COMMERCE, WHICH RESTRICT THE EXPORT AND RE-EXPORT OF CERTAIN PRODUCTS AND TECHNICAL DATA. YOU ACKNOWLEDGE AND AGREE THAT IF THE EXPORT OF THE SOFTWARE IS CONTROLLED UNDER SUCH RULES AND REGULATIONS, THEN YOU SHALL NOT CAUSE THE SOFTWARE TO BE EXPORTED OR RE-EXPORTED, DIRECTLY OR INDIRECTLY, (A) WITHOUT ALL EXPORT OR RE-EXPORT LICENSES AND UNITED STATES OR OTHER GOVERNMENTAL APPROVALS REQUIRED BY ANY APPLICABLE LAWS, OR (B) IN VIOLATION OF ANY APPLICABLE PROHIBITION AGAINST THE EXPORT OR RE-EXPORT OF ANY PART OF THE SOFTWARE. SOME COUNTRIES HAVE RESTRICTIONS ON THE USE OF ENCRYPTION WITHIN THEIR BORDERS, OR THE IMPORT OR EXPORT OF ENCRYPTION EVEN IF FOR ONLY TEMPORARY PERSONAL OR BUSINESS USE. YOU ACKNOWLEDGE THAT THE IMPLEMENTATION AND ENFORCEMENT OF THESE LAWS IS NOT ALWAYS CONSISTENT AS TO SPECIFIC COUNTRIES. YOU ACKNOWLEDGE THAT IT IS YOUR ULTIMATE RESPONSIBILITY TO COMPLY WITH ANY AND ALL GOVERNMENT EXPORT AND OTHER APPLICABLE LAWS AND THAT ACCPAC HAS NO FURTHER RESPONSIBILITY AFTER THE INITIAL LICENSE TO YOU WITHIN THE ORIGINAL COUNTRY OF LICENSE.

13. High Risk Activities requiring fail-safe performance, including without limitation, in the operation of nuclear facilities, aircraft navigation or communication systems, air traffic control, weapons systems, direct life-support machines, or any other application in which the failure of the Software could lead directly to death, personal injury, or severe physical or property damage (collectively, “High Risk Activities”). ACCPAC expressly disclaims any ex press or implied wa rranty of fitness for High Risk Activities.

14. Confidentiality

. You agree that the Software, including, but not limited to, all source and object code components, screen shots and displays, graphical user interfaces, algorithms, formulae, data structures, scripts, application programming interfaces and protocols, and the Documentation (collectively the “Confidential Information”) are trade secrets of ACCPAC and are owned by ACCPAC or, where applicable, its third-party licensors. You agree to retain all Confidential Information in strict confidence at least with the same amount of diligence that You exercise in preserving the secrecy of Your most-valuable information, but in no event less than reasonable diligence. You agree to: (i) only disclose Confidential Information to Your employees and agents to the extent required to use the Software under the terms of this EULA and not to disclose or dissemi nate the Confi dential Information to any third party without the prior written consent of ACCPAC, (ii) use the Confidential Information solely for Your benefit as provided for herein and not to allow any third party to benefit from the Confidential Information, and (iii) bind Your employees and agents, by terms no less restrictive than those set forth herein, to maintain the confidentiality of such Confidential Information, and not use or disclose such information except as permitted under this EULA. Notwithstanding the disclosure of any Confidential Information for any reason, such Confidential Information shall continue to be owned by ACCPAC or its licensors. Nothing contained herein shall be deemed to prevent You from disclosing or disseminating Your data, in any format or any report, to whomever You so choose. Notwithstanding anything else to the contrary in this Section 14, and only with respect to Demonstration Product, You are permitted to use the Demonstration Product to demonstrate and promote the functionality and benefits of the Product.

15. Miscellaneous

. This EULA is exclusively governed by the laws of the United States and the State of California, without reference to conflicts of law principles. In the event of a dispute or legal action between the parties, they agree to waive any objections to personal jurisdiction, and agree to service of process and exclusive venue in the Federal District Court for Northern California or the California Superior Court of A lameda County. The application of the U nited Nations Convention of Contracts for the International Sale of Goods is expressly excluded. This EULA sets forth all of Your rights and i s the entire agreement between the parties. This EULA supersedes any other communications with respect to the Software and/or Documentation. This EULA may not be modified except by a written addendum issued by a duly authorized representative of ACCPAC. No provision hereof shall be deemed waived unless such waiver shall be in writing and signed by a duly authorized representative of ACCPAC. You hereby acknowledge a breach of this EULA would cause irreparable harm and signifi cant injury to ACCPAC that may be difficult to ascertain and that a remedy at law would be inadequate. You agree that ACCPAC shall have the right to seek and obtain immediate injunctive relief to enforce the obligations under this EULA in addition to any other rights and remedies it may have. If any provision of this EULA is held invalid, the remainder of this EULA shall continue in full force and effect. The controlling language of this EULA is English. If You have received a translation into another language, it has been provided for Your convenience only.

16. ACCPAC Customer Contact ACCPAC for any other reason, please call (925) 461-2625, or write to us at: ACCPAC International, Inc., 6700 Koll Center Parkway, Third Floor, Pleasanton, California 94566, USA. You may also find us on the Web at http://www.accpac.com or http://www.accpaconline.com.

. The Software and accompanying Documentation are deemed to be “commercial computer

. The Software is not fault-tolerant and is not designed or intended for use in hazardous environments

. If You have any questions concerning these terms and conditions, or if You would like to contact

EXHIBIT A

SupportPlusTM Program

Terms and Conditions

1. The following terms and conditions govern the relationship between Client and ACCPAC International, Inc. (“ACCPAC”) with regard to the services to be supplied for the Products.

2. Level s of service during the term of the Agreement:

•

Bronze – provides product upgrades and updates

•

Silver – provides product upgrades and updates; TechnoPedia™; and callback support technician service up to 12 issue resolutions (North America Only)

•

Gold – provides product upgrades and updates; TechnoPedia; callback support technician service; unlimited issue resolutions; support analyst service; system analysis service; environment profile; orientation and quarterly review (North America Only)

3. Products: Client must be on the then-current version of the Product to purchase SupportPlus. Client represents and warrants that the Products included are all the Products currently licensed from ACCPAC.

4. Suppo rtPlus Fee: The SupportPlus fee (“Fee”) will be based on the then-current list price. Multi-year options are also available. ACCPAC agrees to invoice the Client for the Fee forty-five (45) days in advance of the due date. Cli ent agrees to pay the Fee as invoiced. Fees are non-tran sferable and nonrefundable.

5. Lapsed SupportPlus Coverage: To resume SupportPlus coverage after a lapse, Client must purchase a minimum of on e (1) full year o f S ervice an d pay a “Rein statemen t F ee.” Th e Rein state men t F ee wi ll b e ten percent (10%) of the th en-current Fee for each mont h of lapsed coverag e, as well as a surcharg e of ten percent (10%) of the Fee.

6. Upgrades: Clients who are not current on SupportPlus and desire to purchase a Product upgrade may do so by contacting an ACCPAC Business Partner (“ABP”).

7. Term of Agreemen t/R enewal : Th is Agreemen t sh all commen ce on th e first d ate p aymen t is recei ve d b y ACCPAC and will continue for the period set forth on the invoice (“Term”), but in no event less than twelve (12) months or until terminated by providing ACCPAC with thirty (30) days written notice. The Fee is not refundable.

8. Additional Services: Additional services may be purchased at ACCPAC’s then-current published rates. All expenses incurred by ACCPAC, including reasonable transportation and lodging, shall be paid for by Client. The Fee and availability of international on-site visits shall be determined on a case-by-case basis.

9. Audit: Client shall permit ACCPAC and its representatives and agents to conduct periodic audits of Client’s Products.

10. Client Responsibility: Client is responsible for maintaining the security of its Client ID number. Under no circumstance shall Client allow persons other than employees of ABPs of Record to use its Client ID number. Client’s ABP may be changed at any time by completing the Change of Business Partner of Record Designation Form.

11. Limitations: ACCPAC shall have no obligation to support altered, damaged or modified Product, or to remedy problems caused by: (i) Client’s negligence, abuse or misapplication of the Product; (ii) use of the Product other than as specified in the ACCPAC documentation; or (iii) hardware malfunctions, software not licensed by ACCPAC, or Product which is not the then-current release. Client agrees, at its expense, to assist ACCPAC in its obligations hereunder by providing documentation of problems and test data. ACCPAC shall have no obligation to resolve problems if Client fails to reasonably cooperate. Support shall be provided in the English language, except as otherwise agreed by the parties and subject to payment of any additional fees required by ACCPAC in connection therewith.

12. Limitation of Liability: ACCPAC liability for damages from any cause of action whatsoever relating to ACCPAC’s agreement to provide services shall be limited to the amount paid by Client for the services for the applicable year. ACCPAC’s liability shall be further limited as provided in the End User License Agreement between Clien t and ACCPAC for the Product, which may be eit her a signed agreement or electronic end-user l i cense accompanying the Produ ct (respectively “EULA”).

THESE TERMS AND CONDITIONS CONSTITUTE A SERVICE CONTRACT AND NOT A PRODUCT WARRANTY. THE PRODUCT AND ALL MATERIALS RELATED TO THE PRODUCT ARE SUBJECT EXCLUSIVELY TO THE WARRANTIES S ET FORTH IN THE EULA. THIS AGREEMENT IS IN ADDITION TO THE EULA AND DOES NOT CHANGE, EXP AND OR SUPERSEDE ANY TERM OF THE EULA EXCEPT TO THE EXTENT UNAMBIGUOUSLY EXPRESSED TO DO SO.

IN NO EVENT SHALL ACCPAC’S AGGREGATE LIABILITY FOR ANY CLAIM HEREUNDER EXCEED THE FEES PAID TO ACCPAC FOR THE PRECEEDING TWELVE (12) MONTH PERIOD.

13. Force Majeure: Neither party shall be held responsible for any reasonable delay or failure in performance hereunder caused by fires, strikes, embargoes, acts of nature, or other causes beyond their reasonable control.

14. Default and Termination: a) If Client breaches any of the terms, conditions or provisions of this Exhibit A, and fails to cure such

breach within thirty (30) days after written notice thereof, ACCPAC shall have the right to terminate the Services without further notice.

b) In the event of Client’s breach, ACCPAC may, in addition to the right to withho ld its performance

under and/or terminate this Agreement, avail itself of all other rights, remedies and causes of action available at law, in equity or o therwise, against such party fo r damages as a result of such b reach. Unless otherwise provided in this Agreement, remedies shall be cumulative and there shall be no obligation to exercise a particular remedy.

c) Any expiration or termination of this Agreement shall not prejudice, limit, or restrict any other

rights or remedies either party may have arising prior to such expiration or termination. ACCPAC shall be under no obligation to refund any amounts paid by Client.

Chapter 1: Introducing Inventory Control

Inventory Control Features

Tailor Inventory Control to Your Business Maintain Detailed and Accurate Inventory Information Take Advantage of Flexible Transaction Entry Produce Comprehensive Accounting and Ma nagement Information Protect the Integrity of Your Data

Use Multicurrency Accounting Integrating with Other Programs How to Use This Guide The User Guide Converting From ACCPAC Plus Where To Now?

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1–1 1–1 1–3 1–4 1–4 1–5 1–5 1–6 1–7 1–8 1–8 1–9

Chapter 2: What You Need to Know Before Setting Up Inventory Control

Overview of Inventory Control Setup

Steps in Inventory Control Setup Choosing Inventory Control Options

Inventory Control Features

Inventory Control

Introduction

Introducing

Inventory Control maintains detailed perpetual inventory records and produces reports to help manage your stock effectively. Regardless of the size and complexity of your business, you can adapt Inventory Control to meet your needs.

You can use Inventory Control by itself or as part of an integrated system with other ACCPAC accounting applications. You can also transfer Inventory Control data to and f rom spreadsheet and database programs.

Use Inventory Control through a browser or from the ACCPAC desktop

You can access your Inventory Control data using the ACCPAC desktop or through your Internet browser. All Inventory Control data entry forms are designed to enable users at remote locations to enter and view transaction data using a browser.

The rest of this section describes some of the tasks you can accomplish using Inventory Control.

Tailor Inventory Control to Your Business

ACCPAC Inventory Control easily handles the requirements of your existing inventory system and offers many flexible features you can use to improve your inventory management.

Getting Started 1–1

Inventory Control Features

You can:

■

Set up any number of account sets to assign to inventory items, specifying the costing method to use and the general ledger balance sheet accounts to post for item transactions.

Automatically assign all items to all inventory locations or specify the items you permit at individual locations.

Use an unlimited number of inventory categories to classify your inventory items for reporting, pricing, and accounting purposes, and to specify the revenue and expense general ledger accounts to use for items in each category.

Take advantage of flexible item-number formatting to assign item numbers of up to 24 characters, with up to ten segments. Validate segments in item numbers.

Use predetermined item structures to ensure that all your item numbers conform to the formats you want to use.

■

Set up as many units of measure and conversion factors as you need for all the ways in which you purchase, stock or sell individual items.

■

Set up as many price lists as you need, such as for the regions, sales types, or currencies you use in your inventory control system. Easily copy items from one price list to another and update prices and costs for a range of items in a single step.

■

Set up pricing for individual customers based initially on category code or item number. You can then price by:

Customer type

–

Discount percentage

–

Discount amount

–

Cost plus a fixed amount

–

Cost plus a percentage and

–

Fixed amount (only for pricing by item number).

–

■

Add up to eight optional fields to your item records and up to two extra cost fields to your inventory locations to contain specialized information your company keeps.

1–2 ACCPAC Inventory Control

Inventory Control Features

Maintain Detailed and Accurate Inventory Information

Inventory Control features help you ensure complete and precise inventory records, letting you:

■

Keep detailed records for each item in your inventory, including cost, markup factor, discount or markup rates, desired minimum and maximum quantities, supplier information, and more.

■

Keep unit costs, prices, and conversion factors in up to six decimal places, and keep quantities in up to four decimal places.

■

View the last cost for purchasing an inventory item.

■

Receive non-stock items in both Inventory Control and Purchase Orders with vendor costing information updated.

Inventory Control

Introduction

Introducing

■

Maintain costs by location.

■

Update inventory quantities immediately when goods are purchased, received, or transferred, and when you assemble master items or post adjustments.

■

Set up reorder information based on all locations. You can set reorder quantities for an item only, or for an item and a location.

■

Print detailed worksheets for recording physical inventory counts, then reconcile your counts with the figures kept for your system by Inventory Control.

■

Accumulate transaction statistics and sales and returns statistics by your choice of up to 52 periods and for as many fiscal or calendar years as you need.

■

Assign an unlimited number of serial numbers to shipped items, and record serial numbers on returned items. Keep serial number information on hand until you choose to delete it.

■

Record up to nine vendors (suppliers) from whom you purchase each inventory item.

■

Use options to let you record receipts and shipments of items by fractions of their units of measure, and ship items before

Getting Started 1–3

Inventory Control Features

you have posted the receipts for them, even when it results in negative inventory levels online.

Take Advantage of Flexible Transaction Entry

Inventory Control includes five separate transaction-entry forms to let you:

■

Quickly enter transactions by type, as well as assign security to identify the operators who can enter each type of transaction.

■

Post receipts as incomplete, if you wish to record returns and adjustments directly on the receipt, rather than as separate adjustments.

■

Optionally record customer numbers on shipments, select price lists, and enter as many serial numbers for each item line as you need.

■

Adjust item costs and quantities as needed.

■

Record transfers of stock between locations, automatically updating quantities at each location.

■

Post assemblies of master items with online checking of component availability and full accounting details of each assembly.

Produce Comprehensive Accounting and Management Information

Inventory Control provides a full ra nge of options and reports to supply you with complete and timely accounting and management information, including:

■

Tracking transactions down (‘drill-down’) to their sources in the Inventory Control, Purchase Orders or Order Entry modules.

■

Detailed posting journals by transaction type to list the key information you need to track transactions from entry to posting to your general ledger.

1–4 ACCPAC Inventory Control

Inventory Control Features

■

Up-to-the-minute reports of item quantities to let you analyze item performance and identify overstocked or slow-moving items, and items you need to order.

■

Flexible costing, with six costing methods that include accurate and complete LIFO and FIFO costing.

■

Your choice of the amount of detail in general ledger transactions, keeping full detail or using one of two consolidation methods.

■

Current reports of all your Inventory Control records, price lists, and inventory levels.

■

Analytical reports that let you analyze your item prices and identify unprofitable products, as well as items with unusually low or high profit margins.

Inventory Control

Introduction

Introducing

Protect the Integrity of Your Data

Inventory Control helps you avoid problems with your data in several ways:

■

You cannot delete items with quantities on hand, on purchase order, or on sales order, or which are master items in a bill of material.

■

You cannot delete categories and account sets that are assigned to items, or locations that have item details.

■

You can assign password security to specify the users who can enter or view your inventory transactions, costing information, and other data.

Use Multicurrency Accounting

Inventory Control lets you process transactions in any of the currencies you use in your ACCPAC system. You can:

■

Create separate price lists by currency.

■

Receive goods in any currency and record additional costs on a receipt in source or functional curr e ncy.

Getting Started 1–5

Integrating with Other Programs

■

Display exchange rates automatically during transaction entry, then accept or change the displayed rates, as needed.

■

Print key reports either in the functional currency or in the source currencies in which you posted the transactions.

■

Print the Markup Analysis report by a specific currency and exchange rate.

Integrating with Other Programs

You can integrate Inventory Control with the following ACCPAC applications:

General Ledger.

Inventory Control can create a general ledger batch directly in General Ledger, or create a batch that is ready to import to General Ledger at another site.

You can choose to create the general ledger batch automatically during day-end processing, or create the batches yourself when you are ready, and you can post transactions to the General Ledger in consolidated form or with full details. You can specify what you want to include as the reference and description for each transaction sent to the general ledger.

You can select General Ledger account numbers from the Finder in Inventory Control. You can override the General Ledger account-number segments (except the account segment) by location.

Order Entry.

Inventory Control displays item numbers you can select for Order Entry transactions, and provides Order Entry with item information, including descriptions, pricing, costing information, alternate (substitute) item numbers, and General Ledger sales accounts and returns accounts.

1–6 ACCPAC Inventory Control

How to Use This Guide

Order Entry orders and invoices update item costs, quantities on hand and on sales order, statistics, transaction history, and serial numbers in Inventory Control item records.

Inventory Control

Introduction

Introducing

Purchase Orders.

numbers and look up item descriptions and costs while entering purchase orders. You can also automatically generate purchase orders from Inventory Control reorder quantities.

Posted purchase orders immediately update quantities on purchase order in Inventory Control item records. Purchase Orders receipts and returns update costs, quantities, statistics, and transaction history in Inventory Control item records.

Accounts Payable.

and currency information (in multicurrency ledgers) from Finders while entering receipts and adding item records in Inventory Control.

Accounts Receivable.

numbers and currency information (in multicurrency ledgers) from Finders while entering shipments in Inventory Control.

You can select Inventory Control item

Select Accounts Payable vendor numbers

Select Accounts Receivable customer

How to Use This Guide

This Getting Started guide explains how to set up Inventory Control and provides lessons for learning to enter Inventory Control transactions.

To install ACCPAC and set up your printer, follow the instructions in the System Manager Administrator Guide.

In addition to Chapter 1, the Getting Started guide contains the following chapters:

Chapter 2, What You Need to Know Before Setting Up Inventory Control,

take full advantage of the program’s features and meet your company’s current and future needs.

tells you how to set up inventory control to

Getting Started 1–7

The User Guide

Chapter 3, Setting Up Your Inventory Control System,

you through setting up Inventory Control to meet the unique needs of your company, and transferring your current inventory control data to your new system.

Chapter 4, Tutorial,

records and Inventory Control transactions.

The with corresponding page-number references.

The User Guide

The Inventory Control package contains this Getting Started guide and the User Guide.

The Inventory Control User Guide contains a n overview of Inventory Control processing, and describes daily and periodic processing and maintenance procedures. It also shows reports printed from the sample data.

Index

guides

provides lessons on how to enter item

contains an alphabetical listing of topics in this guide,

The appendixes in the Inventory Control User Guide describe how to print the setup checklist and data entry forms, and contain technical information about error messages and importing and exporting.

Turn to the User Guide once you have finished setting up your Inventory Control system, following the instructions in this Getting Started guide.

Converting From ACCPAC Plus

If you are upgrading from ACCPAC Plus Inventory Control, read the guide Converting From ACCPAC Plus Accounting before you attempt to convert your data for ACCPAC Advantage Series. The Converting From ACCPAC Plus Accounting guide contains general information about conversion as well as the

1–8 ACCPAC Inventory Control

steps you must follow to convert your data to ACCPAC Inventory Control.

Where To Now?

If you have just purchased the System Manager and Inventory Control, install the applications on your computer, following the instructions in the System Manager Administrator Guide. If you have already installed System Manager, install Inventory Control, following the instructions in the System Manager Administrator Guide.

If Inventory Control is already installed on your system, we suggest you read Chapter 2, “What You Need to Know Before Setting Up Inventory Control,” in this manual, and try the exercises in Chapter 4, “Tutorial,” before you begin using Inventory Control with your own data.

Where To Now?

Inventory Control

Introduction

Introducing

When you are ready to create your own Inventory Control system, follow the instructions in Chapter 3, “Setting Up Your Inventory Control System,” in this manual.

Getting Started 1–9

Chapter 2 What You Need to Know Before Setting Up Inventory Control

Overview of Inventory Control Setup

Steps in Inventory Control Setup

Choosing Inventory Control Options

Company Information Processing Options

Using Multicurrency Accounting Allowing Transactions That Use Fractional Quantities Allowing Transactions Resulting in Negative Quantities Allowing Every Inventory Item at All Storage Locations Saving Transaction History for Reporting Handling Additional Costs on Receipt Returns Accumulating Item Statistics for Reporting Using Alternate Cost Fields Defining a Unit of Weight for Inventory Items

Item Number Options

Defining Segments for Item Numbers Defining Optional Fields for Item Records G/L Integration Options

Choosing Consolidation Options for General Ledger Transactions

Selecting References and Descriptions for General Ledger Transactions

Planning Your Item Numbers

Follow These Steps When Planning Your Item Number Formats

Tips for Item Number Formats

Defining Item Number Formats

Setting Up Segments Adding Segment Codes

Setting Up Item Structures

Summary of the Rules for Item Numbers

Sorting Order for Item Numbers

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2–1 2–2 2–3 2–3 2–4 2–5 2–6 2–6 2–7 2–8

2–9 2–10 2–12 2–13 2–14 2–14 2–14 2–15 2–18 2–19 2–20 2–21 2–22 2–22 2–23 2–23 2–25 2–26 2–28

Before Setting Up

Getting Started 2–i

Entering Inventory Control Setup Information

Setting Up Account Sets

Costing Methods Setting Up Categories Setting Up Locations Setting Up Price Lists

Defining Price Lists

Adding Items to Price Lists Setting Up Contract Pricing

Setting Up Inventory Item Records

Adding Inventory Items

Non-stock Items

Items with Serial Numbers

Alternate Items Adding Reorder Information Assigning Items to Locations Adding Bills of Material

Importing and Exporting Inventory Control Records Entering Current and Historical Data

Entering Current Item Quantities and Costs Entering Sales Statistics for Current and Previous Years Entering Transaction Statistics for Current and Previous Years

Using Multicurrency Accounting in Inventory Control Where To Now?

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2–28 2–29 2–31 2–39 2–42 2–43 2–44 2–45 2–47 2–49 2–50 2–52 2–52 2–53 2–54 2–56 2–57 2–60 2–61 2–62 2–62 2–63 2–63 2–64

2–ii ACCPAC Inventory Control

Chapter 2 What You Need to Know Before Setting Up Inventory Control

This chapter contains an overview of the steps for setting up an ACCPAC Inventory Control system, and explains the options you can select and data you need to add during setup.

Read this chapter before setting up Inventory Control

Read this chapter before setting up Inventory Control. It will help you create a system that takes full advantage of Inventory Control’s features and meets your company’s current and future needs.

After reading this chapter, follow the instructions in Chapter 3, “Setting Up Your Inventory Control System.” For information about running Inventory Control to process daily transactions, see the User Guide.

Before Setting Up

Overview of Inventory Control Setup

Install and set up the ACCPAC System Manager first

Before you can begin Inventory Control setup, do the following:

1. Install the ACCPAC System Manager, General Ledger (if you have it), and Inventory Control programs.

2. Create a company database and select company-wide options in Common Services.

3. If needed, add information about the currencies used in your inventory control system. If you have General Ledger, set it up before setting up Inventory Control.

The chart on the next page outlines the steps you take to set up an Inventory Control system.

Getting Started 2–1

Overview of Inventory Control Setup

Steps in Inventory Control Setup



Prepare ACCPAC System Manager for your Inventory Control data

Install ACCPAC System Manager and Inventory Control



Create the co m pany profile in Com m o n Services



If needed, add tax information and currencies for Inventory Control



Add inventory accounts to your ge n e ral ledger chart of accounts



Activate Inventory Control

Create your Inventory Control data

Add inventory items



Use the I/C Options form to enter information and to specify how your Inve n t or y Co n t ro l syst em will operate



Design coding schemes for your Inventory Control records



Add records and print corresponding reports for:

Segment codes

–

(optional)

Item structures

–

Account sets

–



Add item records



Assign items to price list s



Add location de tails for items



Add vendor details (optiona l)



Add bills of ma terial (optiona l)



Add current item quantities and costs

Price list code s

–

Categories

–

Inventory locations

–

Add your inventory statistics to inventory control

2–2 ACCPAC Inventory Control



Add sales statistics (opt io n a l)



Add transa ction statistics ( o ptional)

Choosing Inventory Control Options

Once you have activated Inventory Control, your first task is to use Inventory Control’s Options form to enter general ledger integration information and choose which Inventory Control processing options you will use.

Your choices determine how your Inventory Control system operates and the types of data that it stores and displays. You can also use the form after setup to review your entries and, if needed, change them.

This section explains the purposes and effects of the choices you make in the I/C Options form, presenting topics in their order of appearance. The options are briefly mentioned again in sections that discuss records and operations that are affected by the options you choose.

Before Setting Up

Using the Inventory Control Options data entry form

As you read this section, you can record the options you want to use on the Inventory Control Options form, one of the data entry forms shipped with Inventory Control. To print data entry forms, follow the instructions in Appendix B in the User Guide.

You can transfer the information from the printed form to the I/C Options form when you set up your system, following the instructions in Chapter 3, “Setting Up Your Inventory Control System.”

Processing Options

Use the Processing tab in the I/C Options form to record whether your Inventory Control system:

■

Uses multicurrency accounting.

■

Permits transactions that use a fractional quantity of an inventory item.

■

Permits every inventory item to be stored at all storage locations.

■

Permits transactions that cause negative inventory quantities.

■

Allows receipt of non-stock items.

■

Saves transaction history to a file for reporting.

ACCPAC Order Entry

■

Prorates additional cost assigned to goods being returned over the remaining goods on the receipt, or leaves the additional cost assigned to the items being returned.

■

Saves and allows editing of item statistics (transaction statistics and sales statistics).

You also use the Processing tab to define the following:

■

Names for two alternate cost fields as you want them to

appear in the Location Details form. You can store costs in these fields which you can then print on Inventory Control reports.

Order Entry can use the alternate cost fields as the base for

tax calculations. (Order Entry uses the tax base you specify in Tax Services.)

■

The name of the unit of weight, such as pounds or

kilograms, that you plan to use when you enter the weight of one stocking unit of an inventory item on item records.

If you integrate Inventory Control with ACCPAC Order

Entry, the weight unit of measure is used by Order Entry to estimate the total weight of an order, for shipping purposes.

2–4 ACCPAC Inventory Control

Choosing Inventory Control Options

ACCPAC Purchase Orders

If you integrate Inventory Control with ACCPAC Purchase

Orders, the weight unit of measure can be used by Purchase Orders to allocate additional charges by weight to items on orders.

Changing the weight unit of measure

If necessary, you can change the weight unit of measure after

setting up your system; however, if you have entered any weights in item records, you will need to change them so they correspond with the new unit of measure.

Using Multicurrency Accounting

Multicurrency ledgers

You can set up an Inventory Control system that lets you process and report receipt transactions, and set up price lists for items in all the currencies used by your company.

Using multicurrency accounting

To use more than one currency in Inventory Control, turn on the Multicurrency option on the Processing tab in the I/C Options form. You can turn on this option only if you have already turned on the Multicurrency option for the company in Common Services.

Before Setting Up

Mixing multicurrency and single-currency applications

When you turn on the Multicurrency option, you also specify a default rate type, such as spot rate, for converting sourcecurrency amounts in transactions to their functional-currency equivalents.

You can select the Multicurrency option at any time but, once you select the option, you cannot change Inventory Control back to a single-currency ledger.

If you turn on the Multicurrency option in Inventory Control, System Manager automatically turns on the Multicurrency option in ACCPAC Order Entry and Purchase Orders, if either or both are installed.

All other ACCPAC programs that you integrate with Inventory Control can use either single-currency accounting or multicurrency accounting.

Information about creating multicurrency records is included in the discussion of each record type. A summary of the steps to

Getting Started 2–5

Choosing Inventory Control Options

take to set up a multicurrency ledger is contained in the “Using Multicurrency Accounting in Inventory Control” section, near the end of this chapter.

Allowing Transactions That Use Fractional Quantities

If you allow transactions that use fractional quantities (such as

0.5 dozen) in your present inventory control system, you can set up your ACCPAC Inventory Control system to do the same.

Using fractional quantities

Simplifying data entry

To allow transactions that use fractional quantities (you can use up to four decimal places), select the Allow Fractional Quantities option on the Processing tab of the I/C Options form.

You can select the Allow Fractional Quantities option at any time but, once you select the option, it cannot be changed.

Fractional quantities are useful if your inventory includes homogeneous items. (Homogeneous items are those with identical elements which can be broken down into multiple, smaller units, such as oil or grain.) These items can require a wide range of units of mea sure.

Instead of using the smallest unit (such as ounces) as the stocking unit, use a larger stocking unit (such as pounds), and fractional quantities for amounts of less than a pound.

If you do not intend to enter any transactions that use fractional

quantities, you can simplify transaction entry by not selecting the Allow Fractional Quantities option. This means you do not have to enter decimal places for quantities, and it means that unnecessary decimal places do not appear on reports.

Allowing Transactions Resulting in Negative Quantities

If you allow transactions that cause an item’s “on hand” quantity to go below zero in your present inventory control system, you can set up your Inventory Control system to do the same.

2–6 ACCPAC Inventory Control

Choosing Inventory Control Options

Allowing negative quantities

To allow transactions which result in negative inventory levels, select the Allow Negative Inventory Levels option on the Processing tab of the I/C Options form.

For example, negative quantities can result from timing problems when you enter shipments for items before entering their receipts. In this situation, your computer’s inventory figures do not match the physical inventory.

If for any reason you do not want inventory levels to go below zero, do not select the Allow Negative Inventory Levels option.

You can turn the Allow Negative Inventory Levels option on or off at any time.

Allowing Every Inventory Item at All Storage Locations

If your company stores inventory at more than one location (for example, warehouses in different regions), you can set up the Inventory Control system to manage items at multiple locations.

Before Setting Up

Is “All Locations” best for you?

After you enter all your inventory items and set up all the locations in Inventory Control, you need to specify which items are stored at which locations before you can start entering transactions. There are two ways you can do this:

■

Specify which item or group of items can be stored at each

location.

■

Permit every inventory item to be stored at all locations.

If your company has only one location, or it does not need to restrict any items from being stored at any locations, you can save time setting up your Inventory Control system by permitting every item at all locations. This allows you to start entering transactions right away involving any item at any location. (Transactions include receipts, shipments, returns, transfers, adjustments, and assemblies.)

Getting Started 2–7

Choosing Inventory Control Options

“All Locations” turned off

Allowing every item at all locations

How it works

If you do not turn on the Allow Items At All Locations option, then before you can enter transactions for an item at a location you must use either the Location Details form or the Locations form to assign the item to the location.

To allow every inventory item at all storage locations, select the Allow Items At All Locations option on the Processing tab of the I/C Options form.

You can turn the Allow Items At All Loca tions option off or on at any time. (When you install the Inventory Control program, this option is automatically selected.)

The program shows an item to be stocked at a loca tion only after you enter the first transaction (such as a receipt) involving the item at that location. If you stock the item at more than one location, the item appears on reports and in forms only at locations for which a transaction has been entere d (even though the item is allowed to be stocked at any location).

For example, only after you enter the first transaction for an item at a location does the item appear in the Location Details form or report for that location.

For more information on how to specify which item or group of items can be stored at a location, see “Assigning Items to Locations,” later in this chapter.

Saving Transaction History for Reporting

Inventory Control can save detailed transaction records when you post so you can later print the Transaction History report. The Transaction History report lists all transactions posted for items assigned to the account sets you select within a specified period.

To save transaction history for reporting, select the Keep Transaction History option on the Processing tab in the I/C Options form.

2–8 ACCPAC Inventory Control

Choosing Inventory Control Options

Turning the Keep Transaction History option on and off

Maintaining transaction history

You can turn the Keep Transaction Histor y option on or off at any time. If you turn it off after you have used it, Inventory Control immediately stops saving transaction history, although it retains those records already collected until you clear (delete) them, using the Clear History form.

If you turn the option on again, there will be a gap in the collected information corresponding to the period when the option was not used.

You can export transaction history to other databases or to spreadsheets for further analysis.

If you do not save transaction history, nothing is reported in the Transaction History report.

Saving transaction history uses a large amount of storage space on your computer, so you should turn this option on only when needed. To avoid wasting storage space on your computer, use the Clear History form to clear (delete) transaction history regularly. If you turn the Keep Transaction History option on, and then off without clearing transaction history, there will be a gap in the history records, making the information incomplete.

Before Setting Up

Handling Additional Costs on Receipt Returns

If you post a receipt return transaction to record the return of goods to suppliers, the program can either automatically prorate any additional cost assigned to the goods being returned over the remaining goods on the receipt, or leave the additional cost assigned to the goods being returned. (Freight charges and duty charges are two examples of additional costs.)

Prorating additional cost

To have the program prorate the additional cost on receipt returns to the remaining items on the receipt, select Prorate for the Additional Cost For Items On Receipt Returns option on the Processing tab.

Getting Started 2–9

Choosing Inventory Control Options

Leaving additional cost

To have the program leave the additional cost assigned to the goods being returned, select Leave for this option. Use the Adjustments form if you want to reassign to another general ledger account the additional cost that was assigned to the items being returned.

You can change the option at any time, and you can override your choice for this option when entering receipt returns using the Receipts form.

If you return all of the items on a receipt, you must use the Adjustments form if you want to reassign to another general ledger account the additional cost that was specified on the receipt.

For information about returning goods from incomplete receipts, see “Processing Receipts,” in Chapter 2 of the User Guide.

Accumulating Item Statistics for Reporting

Turning the Keep Item Statistics option on and off

Inventory Control can save item statistics from transactions posted for your inventory items, and display this information or print it on the Sales Statistics and Transaction Statistics reports.

You can print the statistics for an item by period and year, as far back as the oldest year and period for which you keep this information. You can also edit the statistics.

To save item statistics for display and reporting, select the Keep Item Statistics option on the Processing tab in the I/C Options form. You also select whether to accumulate the statistics by fiscal year or calendar year.

You can turn the Keep Item Statistics option on or off at any time. If you turn it off, Inventory Control immediately stops saving statistics, although it retains those already collected until you clear (delete) them using the Clear History form.

If you turn the option on again, there will be a gap in the collected information corresponding to the period when the option was not used.

2–10 ACCPAC Inventory Control

Choosing Inventory Control Options

Options for organizing statistics

Changing the method of reporting statistics

On the Processing tab in the I/C Options form, you also specify:

■

Whether to allow editing of the statistics you choose to keep

(select the Allow Edit Of Statistics option). This option is especially useful when you set up Inventory Control.

■

Whether to accumulate and report the statistics by fiscal year

or calendar year (select the Accumulate By option).

If you keep statistics by calendar year, the first statistical

period begins with January 1. If you keep statistics by fiscal year, the first statistical period begins on the first date in your company’s fiscal year.

■

The type of period by which the statistics are totaled and

reported — weekly (Sunday=day 1), seven days (beginning on the first day of the week in your fiscal or calendar year), bi-weekly (Sunday=day 1), four weeks, monthly, bi-monthly, quarterly, semi-annually, annually, or fiscal period (if you select Fiscal Year for the Accumulate By option).

You can change the type of year and period by which Inventory Control reports statistics, but if you do, you will not be able to compare new period figures directly to figures in past periods.

Before Setting Up

For example, suppose that you begin with quarterly reporting, posting these totals in the first three quarters:

Periods Totals

2 3 4

500 300 600 0

If you then switch to monthly reporting, the totals from the first three quarters then become the totals for the first three months, causing incorrect figures for the first nine months:

Periods Totals

7 8 9 10 11 12

1 2 3 4 5 6

500 300 600 0 0 0

0 0 0 0 0 0

Getting Started 2–1 1

Choosing Inventory Control Options

If you need to change the type of year or period by which Inventory Control reports statistics, you should either do so after the fiscal or calendar year-end, or edit the statistics for the earlier periods in the year to correct distortions.

Reviewing statistics

Use the Transaction Statistics and Sales Sta tistics forms to display the statistics.

Editing statistics

Normally, you do not need to change statistics, because they are updated automatically and accurately each time you run Day End Processing. However, if you set up your Inventory Control system partway through a fiscal year, you may want to use the Allow Edit Of Statistics option so that you can enter sales figures for previous periods of the current year or for previous years. Use the Sales Statistics form to edit the statistics.

Reports

The Sales Statistics and Transaction Statistics reports will be blank if you do not turn on the Keep Item Statistics option. For more information about the Transaction Statistics and Sales Statistics reports, see Chapter 7, “Reports,” in the User Guide.

Using Alternate Cost Fields

You can create two alternate cost fields to use in Inventory Control, and in ACCPAC Order Entry and Purchase Orders, if you use them with Inventory Control.

Creating alternate cost fields

You create alternate cost fields by entering meaningful names (up to ten characters long) into the Alternate Amount 1 Name and the Alternate Amount 2 Name fields on the Processing tab in the I/C Options form.

For example, you could assign the name Landed to one of the alternate cost fields to indicate the nature of the amount it contains. Names for alternate a mounts ca n contain upper- or lower-case letters, numbers, blanks, symbols (such as @ and #), and punctuation marks (such as ? and !).

Using alternate cost fields in Inventory Control

2–12 ACCPAC Inventory Control

Alternate cost fields appear on the Location Details form with the names you assign to them.

Choosing Inventory Control Options

These fields appear on and are used by the following Inventory Control reports:

ACCPAC Order Entry and Purchase Orders

■

Location Details

■

Item Status

Order Entry and Purchase Orders use alternate costs as the basis for tax calculations when taxes are charged on costs, if you select

■

an alternate cost as the tax base for the tax authorities.

Use the Tax Authorities form in Tax Services to select an alternate cost as the tax base for a tax authority.

Defining a Unit of Weight for Inventory Items

You can record the name of a unit of measure (such as pounds or kilograms) for the item weight you enter when you add the item to Inventory Control. Inventory Control displays this information on screen and in reports.

Markup Analysis Selling Price/Margin Analysis

Before Setting Up

ACCPAC Order Entry

ACCPAC Purchase Orders

Defining a weight unit of measure

Changing units

If you use Inventory Control with ACCPAC Order Entry, then Order Entry uses the weights you supply in Inventory Control to estimate the total weight of each order in the unit of weight you specify here. Order Entry uses the estimated total weight of an order to calculate the cost of shipping the order.

If you use Inventory Control with ACCPAC Purchase Orders, then Purchase Orders can use the weight unit of measure you supply in Inventory Control to prorate (distribute) additional costs on orders.

You can specify a weight unit of measure in the Weight Unit Of Measure field on the Processing tab in the I/C Options form.

For example, if you use pounds as the weight unit of measure, then in each item record you must enter the weight of the stocking unit in pounds.

If you change the weight unit of measure, you need to update the weight for each previously added item record so it makes sense with the new weight unit of measure.

Getting Started 2–1 3

Choosing Inventory Control Options

For example, assume the weight unit of measure is kilograms and you add an inventory item that weighs one kilogram. If you then change the weight unit of measure to pounds, you need to change the item’s weight to 2.2 so it agrees with the new weight unit of measure. (There are approximately 2.2 pounds in one kilogram.)

Item Number Options

Item numbers are the numbers you assign to your inventory items so you can identify, organize, and sort them in the order you want for reports and lists. You define item number segments as the first step in setting up item number formats.

Defining Segments for Item Numbers

In Inventory Control, an item number can consist of up to ten parts, called segments. You use segments to organize items by common attributes such as item category, style, color, or size. On many reports, you can specify the segment of an item number by which you want reports sorted.

Where to define segments

Use the Items tab on the I/C Options form to record the segments you define for your Inventory Control system.

For more information on item segments, see “Setting Up Segments,” later in this chapter.

Defining Optional Fields for Item Records

You can customize your Items form by adding up to eight fields to it, to include extra information your company needs to keep for inventory item records. For example, you can add a field to record special handling instructions. Any of these fields you elect to use will appear, with the name (title) you supply, in the Items form.

2–14 ACCPAC Inventory Control

Choosing Inventory Control Options

Defining optional fields for the Items form

Validating data for optional fields

To add fields to the Items form, you use the Optional Fields for Items section of the Items tab in the I/C Options form. You can add up to six fields of different lengths (2, 3, 4, 12, 15, and 30 characters), a date field, and an amount (monetary) field.

For each field, you enter the name (title) you want to appear beside the field in the Items form.

You can use optional fields for sorting inventory items, or grouping them for reporting purposes in ways that help you in decision making. Giving the fields meaningful names will help make their intended uses clear.

You can restrict the information that can be entered into any optional field you add to the Items form.

You first create a list of permitted entries for the field, using the Optional Tables form in Common Services, then assign that table to the field in the I/C Options form. From then on, when you enter data into the field in the Items form, Inventory Control checks that the entry exists in the table before accepting it. This would be useful for any field that has a clearly defined set of valid entries, such as the letters A to Z.

Before Setting Up

For more information about creating optional tables, see the System Manager User Guide.

Turning optional fields on and off

Use the Optional Fields for Items column (labeled “Use”) on the Items tab in the I/C Options form to turn an optional field on or off as often as you like. When you turn off a field, it does not appear in the Items form, but any information you previously stored in the field remains intact, and will reappear if you turn the field on again.

G/L Integration Options

Inventory Control produces general ledger transactions from the inventory transactions you post. Each general ledger transaction includes all the information you need to update inventory control accounts in your general ledger.

Getting Started 2–1 5

Choosing Inventory Control Options

If you use ACCPAC General Ledger and Inventory Control with the same database, Inventory Control creates new General Ledger batches or appends (adds) to existing batches either when you run day-end processing or at a later time.

If your General Ledger is at another location or in a separate database, Inventory Control appends general ledger transactions to a file you can import into another general ledger, or print, then enter manually into your general ledger. Inventory Control appends to the transaction file either when you run day-end processing or at a later time that you choose.

Using the Integration tab of the I/C Options form, you can:

Choosing when to produce general ledger transactions

Reporting general ledger data

■

Specify when to generate general ledger transactions: either

automatically when you run day-end processing or manually at a later time that you choose, using the Create G/L Batch form.

– To create a batch or append to an existing batch or

transaction file only when you are ready, use the On Request Using Create G/L Batch Icon option. When you are ready to create general ledger transactions, you then use the Create G/L Batch form.

Se lect this option if you want to be able to consolidate

general ledger transaction details and print Inventory Control’s G/L Transactions report.

– To create a batch or append to an existing batch or

transaction file when you run day-end processing, use the During Day End Processing option.

The G/L Transactions report is a listing of the general ledger

transactions created by Inventory Control that you might need to print as part of your audit trail.

If you selected the On Request Using Crea te G/L Batch Icon

option, you can print the G/L Transactions report from Inventory Control after you run day-end processing, but before you create or append to general ledger batches. You can print this report whether or not you use ACCPAC General Ledger with the same database as Inventory Control.

2–16 ACCPAC Inventory Control

Choosing Inventory Control Options

If you selected the During Day End Processing option for

creating the general ledger batch, you cannot print the G/L Transactions report from Inventory Control. If you need this information for your audit control, you can print the general ledger batch from ACCPAC General Ledger. If you do not use ACCPAC General Ledger, you may be able to print it from your non-ACCPAC general ledger system.

Before Setting Up

ACCPAC General Ledger

General Ledger batches

If you want to avoid making accidental changes to ACCPAC

General Ledger batches created by Inventory Control, select No Edit for the Edit Imported Entries option in the General Ledger’s Options form (on the Posting tab).

For more information about the G/L Transactions report, see

Chapter 7, “Reports,” in the User Guide.

■

Specify whether to append general ledger transactions to an

existing ACCPAC General Ledge r batch each time you run day-end processing, or to create a new General Ledger batch.

To have only one General Ledger batch to which all

transactions are appended, turn on the Append G/L Transactions To Existing Batch option. Inventory Control must use the same database as ACCPAC General Ledger.

If you do not use ACCPAC General Ledger — or if your

ACCPAC General Ledger system is at another location, Inventory Control appends its general ledger transactions to a file in your company’s data directory called icgltran.csv, which can be imported by a remote site ACCPAC General Ledger, or transferred to another general ledger that you use. The file is in a Comma Separated Values (CSV) format.

■

Choose whether to create detailed general ledger

transactions or to consolidate them during day-end processing, as described under the “Choosing Consolidation Options for General Ledger Transactions” heading, later in this section.

The Integration tab of the I/C Options form also displays the next day-end number the program will assign, and the day-end number up to which you have generated general ledger transactions. (These are for display purposes only.)

Getting Started 2–1 7

Choosing Inventory Control Options

Choosing Consolidation Options for General Ledger Transactions

If you selected the On Request Using Create G/L Batch Icon option to create general ledger transactions, then you can create consolidated batches of general ledger transactions that combine several details into a single detail, or you can create unconsolidated batches that include all the details posted to each general ledger account.

If you selected the During Day End Processing option to create general ledger transactions then you cannot create consolidated batches of general ledger transactions.

Select the consolidation method you want from the Consolidate G/L Batches option.

Consolidating general ledger transactions

Creating detailed general ledger transactions

You can consolidate transaction details for each general ledger account by either:

■

Account number and fiscal period.

■

Account number, fiscal period, and source code.

Consolidation reduces the amount of information in the general ledger batch and results in a shorter G/L Transactions Listing. Consolidation also “consolidates” the inf ormation in the Reference and Description fields for each transaction as described in the next section, “Selecting References and Descriptions for General Ledger Transactions.”

Consolidate transaction details if you do not need a record of all details posted to each general ledger account from Inventory Control transactions.

If you require detailed general ledger transaction information for your Inventory Control records, use the Do Not Consolidate option.

The Do Not Consolidate option provides complete information in your general ledger transaction batch, but can result in a long G/L Transactions report and a large general ledger batch. However, if you use ACCPAC General Ledger, you can consolidate the transaction details when you post the batch in General Ledger.

2–18 ACCPAC Inventory Control

Choosing Inventory Control Options

Selecting References and Descriptions for General Ledger Transactions

You can specify the type of information to use in the Reference and Description fields for each unconsolidated general ledger detail. The information appears in the Reference and Description columns on Inventory Control’s G/L Transactions report, and on reports in ACCPAC General Ledger.

Select the information you need for your audit trail of unconsolidated Inventory Control transactions. As the reference or description for each unconsolidated detail, you can choose:

■

Document number.

■

Reference number.

■

Source code/day end number/entry number.

■

Header description.

■

Customer/Vendor number (only shipments produce this).

■

Customer/Vendor name (only receipts produce this).

When you consolidate general ledger transactions by account number and fiscal period, the source code after consolidation is IC-CO.

Before Setting Up

Changing your choices for G/L integration

Important!

When you consolidate general ledger transactions, the reference for each transaction remains blank and the description for each transaction is changed to “Consol. by I/C on date.” (Note that when there is only one of a particular transaction type, the reference and description for the transaction are whatever you selected on the Integration tab in the I/C Options form.)

You can change any of your choices on the Integration tab at any time. However, you should be aware that any changes you make will apply only to general ledger transactions created after the change, and will not affect existing general ledger batches.

If you want to change from using the Create G/L Batch form to produce your general ledger transactions to creating them during day-end processing, be sure to run Create G/L Batch to process any outstanding transactions first, to avoid accidentally omitting transactions from your general ledger batches.

Getting Started 2–1 9

Planning Your Item Numbers

Before you begin to set up your item numbering system, you need to design formats that will meet your needs for identifying items as well as for sorting and grouping items for inventory reports and lists. Once you decide on the types of item numbers you need, you create one or more item structures in Inventory Control to use for formatting item numbers.

For example, you may want all your item numbers to have the pattern #XX-XXXX. A sample item numbe r using this pattern is #01-2C45.

To plan item numbers and item number formats, you need to be familiar with the following terms:

Item number

Item number segment

Separator and prefix characters

Item number structure

An alphanumeric code that uniquely identifies an item in your inventory. For example, #6094-734-8-W might identify a particular kind of size 8 women’s shoes.

Each item number contains from one to ten se gments. For example, item number #6094-734-8-W contains four segments.

Item numbers can contain a separator character between consecutive segments and a prefix character in front of the first segment. For example, item number #6094-734-8-W contains the prefix character # and three separator characters (-).

An item number structure describes the number of item segments in an item number, the order in which the segments appear, and the position and type of separator and prefix characters.

Inventory Control allows you to define more than one item number structure, so your item numbers can have more than one format. For example, you could define one item number structure having three segments and another having four segments.

If you already use a standardized item number system, the following sections will help you determine whether or not you can easily use your existing system in Inventory Control.

2–20 ACCPAC Inventory Control

Planning Your Item Numbers

Keep in mind that it is easier to design your item formats carefully before entering them into the system than to change them afterward.

Keep in mind also that Inventory Control lets you use more than one item number structure, so you may be able to accommodate a mix of existing item numbers.

Follow These Steps When Planning Your Item Number Formats

1. List all your items.

2. Design an item numbering scheme that suits your inventory reporting needs.

Before Setting Up

Item numbers

Segments

Item numbers can contain upper-case letters and numbers, and ca n be up to 24 characters long, including all segments,

separator characters, and a prefix character. (For information about separator and prefix characters, see “Summary of the Rules for Item Numbers,” later in this chapter.)

An inventory item number ca n consist of up to ten parts

called segments. Different items can use different sets of segments. For

example, some of your items could have numbers with two segments and some could have numbers with three segments (you might use a segment to represent color only in the numbers of items where color is important).

You use the segments to organize items by common attributes such as style, color, or size, and you can specify the segment of an item number by which you want reports to be sorted.

All item numbers must contain at least one segment. (For more information on segments, see “Setting Up Segments,” later in this chapter.)

Getting Started 2–2 1

Defining Item Number Formats

Tips for Item Number Formats

While you design your item numbering format, consider the following suggestions:

■

Use numbers (rather than letters or combinations of numbers

and letters) for all segments to make the order in which item numbers appear on reports and in lists more predictable.

■

Define item numbers so you have room to add items in the

future. For example, assign large numbers such as 1100, 1200, and 1300 to a segment for consecutive items, rather than 1100, 1101, and 1102. Using large numbers leaves you room to assign a new item number, such as 1150, between two existing numbers (1100 and 1200).

■

Assign item numbers according to the order in which you

want items to appear on reports and lists. For example, identify the style of an item as men’s or women’s by assigning a style segment 1100, 1200, and 1300 for men’s styles, and 2100, 2200, and 2300 for women’s styles.

■

Use segments of different lengths in an item number format

to easily tell what each part an item number represents.

Defining Item Number Formats

The steps in setting up item number formats are:

Segments

Segment codes

Item structures

1. Define the segments you require for your item numbers.

2. Add segment codes (optional) to control what the program allows you to enter in segments of the item number.

3. Set up one or more item number formats (called item structures) in Inventory Control.

Item structures control which segments ar e included in item

numbers and the order in which the segments appear. You select the item structure you want to use when you add items to Inventory Control.

The sections that follow provide more information and examples of segments, segment codes, and item structures.

2–22 ACCPAC Inventory Control

Setting Up Segments

An item number can consist of up to ten parts called segments. Use the segments in item numbers to organize items by common attributes. You can sort reports by any item number segment.

Defining Item Number Formats

Before Setting Up

Where to define segments

Use the Items tab on the I/C Options form to add the segments you want to use in your Inventory Control system.

You can define up to ten segments, any numbe r of which you can then combine to define item structures, which are used to format item numbers. Each segment can be up to 24 characters long. An item structure can be up to 24 characters long (including all segments, separator characters, and a prefix character). For information on item structures, see “Setting Up Item Structures,” later in this chapter.

For example, item number #01-RED-L3401 has the following item number segments:

Segment Length Description

XX 2 Style

XXX 3 Color

XXXXX 5 Size

You can change the name of a segment after it is set up, but you cannot change or delete the segment itself.

Segment codes

You can control what can be entered into a segment of an item

number by supplying segment codes, as described next.

Adding Segment Codes

After you defined the segments you plan to use for your inventory item numbers, you can store valid segment codes for each segment. In other words, you can list all the valid codes that you can enter into a segment of an item number.

Getting Started 2–2 3

Defining Item Number Formats

Segment codes are optional

Adding segment codes is optional, as is using them once you have entered them. Use the Validate option on the Items tab of the I/C Options form to restrict entries to the list of segment codes for individual segments at any time, by double-clicking in the Validate column to change from Yes to No.

The following table shows two examples of how you can set up segment codes (consecutive Xs denote a segment in an item structure).

Segment

Name Length

Segment

Code

Code Description

XX Style 2 R1 Regular

M1 Modern

XXX Color 3 RED Red

WHI White

Segment codes

Used to verify item numbers

BLU Blue

Use the Segment Codes form to define your segment codes.

A segment code can contain upper-case letters and numbers. Segment codes can be neither longer nor shorte r than the length of the segment for which they will be used.

You can turn the Validate option for segment cod e s on or off for individual segments at any time. When you add a new inventory item number, Inventory Control verifies what you enter in each segment (for which the segment code Validate option is on) of the item structure, against the segment codes you entered for the segment. If the segments are all valid, the item number is added to the system.

To use segment codes, you must enter all the codes you want the program to allow for a segment in the Segment Codes form before adding your items.

You can add segment codes as needed, but you can delete segment codes only if they are not used by any item numbers.

2–24 ACCPAC Inventory Control

Setting Up Item Structures

Defining Item Number Formats

Using more than one item structure

When you add items to your inventory, the item structure ensures that you enter item numbers in the format you want. Item structures control which segments are included in item numbers and the order in which the segments appear.

If you create more than one item structure, you can select an item structure code as the default for formatting item numbers. The selected item structure code appears as the default when you add item records to Inventory Control. You should choose the item structure code that you will use most often.

You should set up your item structures to format your item numbers in a way that meets your needs for sorting and grouping items for inventory reports and lists.

In the following table are samples of how item structures format item numbers. Note the following about the table:

■

Consecutive Xs denote alphanumeric characters in a segment in an item structure.

Before Setting Up

Where to define item structures

■

Characters appearing between the segments of an item structure or item number are called separator characters.

■

A character appearing at the front of an item structure or item number (such as the # in the fourth example in the following table) is called a prefix character.

Item Structure Sample Item Number

XXXX F605 XXX.X 120.5 XX-XXX/X K1-501/A #XXX-XXXXX-XX-X #L31-GT213-8A-0

Use the Item Structures form in Setup to define item structures for your Inventory Control system.

You create item structures by combining up to ten segments (which you must set up first), in any order, and you can create as

Getting Started 2–2 5

Defining Item Number Formats

many item structures as you require for your item numbers. You must create at least one item structure.

Using separator characters

When you define an item structure, you can select a separator character to appear between segments so item numbers are easier to read.

For a list of the separator characters that Inventory Control allows you to select, see the next section.

If you select a separator character for the last segment in an item structure, the character appears at the end of item numbers using that item structure. For example, 5046-010-92#.

If your current inventory item numbers already follow the rules for item numbers listed in the next section, you can create the item structure(s) you need for entering item numbers into Inventory Control. Otherwise, design a new item number format before creating your item structures. For more information, see “Planning Your Item Numbers,” earlier in this chapter.

Summary of the Rules for Item Numbers

■

An item structure can be up to 24 characters long (including

all segments, separator characters, and a prefix character).

■

Item structures can have from one to ten segments. For

example, you can use a segment to indicate color, model number, or size.

A segment can be up to 24 characters long, including the

optional separator character(s). Keep in mind that item structures are also limited to 24 characters, so you could have no more than one 24-character segment in an item structure.

■

An optional separator character can follow each segment in the item structure so segments can be distinguished from each other, and an optional prefix character can be specified to appear at the front of the item structure.

Separators divide segments in item structure codes, and therefore cannot also be used as characters in item

2–26 ACCPAC Inventory Control

Defining Item Number Formats

structures. You may wish to exclude a character from the list if you want to give it a particular meaning in your codes. Note that once an item separator is set to No (not in use) and saved, it cannot be reset to Yes (to use) again.

If you do not want a separator or prefix character, select “None” for the Prefix option and the Segment Separator field for each segment in the Item Structures form.

The following table shows the separator and prefix characters you can use.

Character Description

Before Setting Up

– / \

. ( )

■

Inventory Control ignores separator and prefix characters

when sorting item numbers.

■

Inventory Control also ignores separator and prefix characters when distinguishing between item numbers. For example, the program considers the item numbers #5200-010 and 5200/010 to be identical since the only difference is the prefix and separator characters, even though the numbers were formatted using different item structures.

None Hyphen Slash Backslash Asterisk Period Left parenthesis Right parenthesis Number sign

■

Item numbers may contain blank spaces, so that item numbers XXX/XXX/XXX and XX_/X_X/_ XX, where / is a separator character and the underscore _ represents a blank space, are both legal item numbers. By the same rule, Inventory Control treats 11_/111/111 and _11/111/111 as

Getting Started 2–2 7

Entering Inventory Control Setup Information

separate and distinct item numbers. (Simply press the space bar to enter blanks in your item numbers.)

■

You cannot enter duplicate item numbers.

Sorting Order for Item Numbers

Inventory Control sorts item numbers for reports and lists from left to right in the following order:

0 1 2 3 4 5 6 7 8 9 A B C D E F G H I J K L M N O P Q R S T U V

W X Y Z

For example, the program sorts the following sample item numbers in the order shown:

123 123A A12 A2 AB1234

Separator and prefix characters do not affect the order. Note that special characters may have different sorting orders due to Crystal Reports.

Entering Inventory Control Setup Information

Before you can add your inventory item records to Inventory Control, you must set up other records to assign to your items. This section describes the records you need, and explains the options you can select when setting up each type of record.

Select icons from the Setup folder to set up the following records:

■

Account sets.

■

Price list codes.

■

Categories.

■

Locations.

2–28 ACCPAC Inventory Control

Setting Up Account Sets

Account sets are groups of general ledger accounts to which you post Inventory Control transactions. Each account set has its own costing method. By defining more than one account set, you can group items by the accounts to which you post item transactions in your general ledger, or by the inventory costing method you use for valuing inventory and determining the cost of goods sold. (For information on costing methods, see “Costing Methods,” later in this chapter.)

You can use as many account sets as you need for your inventory items. For example, you may wish to use separate account sets for different item categories, for items assembled in different areas, or for items obtained from different suppliers.

Entering Inventory Control Setup Information

Before Setting Up

Adding account sets

Contents of account sets

You use the Account Sets form in I/C Setup to add account sets.

When you add an account set, you enter a unique code of up to six characters for the set, and a description. Account set codes can contain upper-case letters and numbers.

For each account set, you specify a costing method and enter account numbers for the following general ledger accounts:

■

Inventory Control.

■

Payables Clearing.

■

Adjustments Write-Off.

■

Assembly Cost Credit.

■

Non-stock Clearing.

■

Transfer Clearing.

Inventory Control.

■

An asset account containing the total value of the inventory on hand. The account increases when you receive goods, and decreases when you ship goods.

The word “c ontrol” in the account name means that the

account contains only totals, whereas the information stored by Inventory Control contains item-by-item details.

When you process all accounting entries correctly, the total

value of the inventory equals the totals in the Inventory Control accounts in the general ledger.

Getting Started 2–2 9

Entering Inventory Control Setup Information

Payables Clearing.

■

Inventory Control posts the “other side” of the accounting entries for inventory you receive (and for previous receipts you return to suppliers).

Inventory Control normally generates credit entries to this

account for inventory you receive; therefore, the account can be thought of as the accrued amount payable for goods received into inventory. Inventory Control debits this account when you enter receipt returns.

A suspense account to which

ACCPAC Accounts Payable

As you post the rela ted vendor invoices in A CCPAC

Accounts Payable, offsetting journal entries (debits) related

to the inventory purchased are generated against the

Payables Clearing account to clear the balance that is left in this account from posting the inventory receipt.

Adjustment Write-Off.

■

The account to which you post inventory adjustments and write-offs. Entries to this account are normally expenses (debits); therefore, the account number you specify should be in the expenses or cost of goods sold section of your general ledger.

Assembly Cost Credit.

■

The account to which you post the variable and fixed costs of assembling items. The program credits this account with the variable and fixed cost of assembly. You may want to create manual entries in the general ledger to redistribute the assembly cost credit to accounts such as labor costs.

Non-stock Clearing.

■

The account which you credit when you ship non-stock items, and debit when you enter shipment returns for non-stock items.

Using non-stock items

You can use non-stock items to handle specially ordered items which you do not stock in your inventory, and to handle service charges that appear on invoices.

For information about non-stock inventory items, see “Nonstock Items,” later in this chapter.

Transfer Clearing.

■

hold the additional cost incurred during a stock transfer. E.g., transfer 10 items from location 1 to location 2, where the original cost of the items is 50.00, and the additional cost to do the transfer 6.00.

2–30 ACCPAC Inventory Control

The Transfer Clearing account is used to

Entering Inventory Control Setup Information

After posting the transfer, you get:

Costing Methods

Debit Credit

Before Setting Up

I/C Control account for location 1 50.00 I/C Control account for location 2 60.00 Transfer clearing 10.00

For each account set, Inventory Control provides a choice of six methods for valuing your inventory and determining the cost of goods sold:

■

Weighted moving average.

■

Standard cost.

■

First-in, first-out (FIFO).

■

Last-in, first-out (LIFO).

■

Most recent cost.

■

User-specified.

Selecting a costing method

Using these costing methods, Inventory Control values your inventory and determines the cost of goods sold for items by location. If you store the same inventory item at more than one location, Inventory Control tracks and costs the item at each location (rather than costing all the items together).

Since different methods of inventory valuation are appropriate in different situations, you may want to ask your accountant to determine which method best suits your needs, and to ensure that you select the ACCPAC calculation method that is appropriate for your business.

Getting Started 2–3 1

Entering Inventory Control Setup Information

A description of each costing method follows.

Weighted moving average costing method

Weighted Moving Average.

Under this method, Inventory Control pools the costs of all acquired units at a location, so that the costs of one unit cannot be distinguished from the costs of another. The program assigns a unit cost to items that are withdrawn from a location’s inventory for sale or use. This unit cost is an average of all units in the location’s pool at that time.

When you receive new items into inventory, the program adds the total cost of the units received to the total cost of the items already in inventory at that location. When a unit cost is required, Inventory Control divides the total cost by the quantity on hand at the location, and rounds the result to the nearest currency unit (for example, the nearest cent).

To determine the total cost of a shipped item, Inventory Control multiplies the number of units shipped by the calculated average unit cost at the location (or the most recent cost if the inventory is less than zero).

The weighted moving average method tends to yield an item cost that is between those resulting from the FIFO and LIFO methods.

The following table contains an example of a moving average cost calculation. (Note that some numbers are rounded.)

Transaction Units Unit Cost Total Cost

Opening stock 0 0.00 Oct. 10, purchase 100 7.00 700.00 Balance Oct. 10

Oct. 15, purchase Balance Oct. 15

Oct. 16, issue Balance Oct. 16

Oct. 20, purchase Balance Oct. 20

Oct. 25, issue Balance Oct. 25 350 8.64 3025.00

2–32 ACCPAC Inventory Control

100 300

400 200

200 500

700 350

7.00

8.00

7.75

9.00

8.64

700.00

2400.00

3100.00

(1550.00)

1550.00

4500.00

6050.00

(3025.00)

Entering Inventory Control Setup Information

Standard cost

Standard Cost.

Standard costs are carefully predetermined target or attainable costs that are useful in building budgets and gauging performance. You might use this method if your item costs do not vary much, or if stock turnover is rapid.

When you use the standard costing method, Inventory Control records the difference between the weighted moving average cost and the standard cost in the general ledger cost variance general ledger account, and uses weighted moving average to value your inventory.

Under the standard costing method, actual costs are posted to inventory upon receipt. The inventory is then valued and reported on the basis of the weighted moving average cost for each item at a location. When you ship goods, the cost of goods sold is calculated using each shipped item’s standard cost.

For example, assume the standard cost for an item is established at $10.00. If the quantity on hand is 5 units valued at $11.50 each and you then receive 5 more units at a cost of $10.50 each, the quantity on hand becomes 10 units at a moving average cost of $11.00.

Before Setting Up

Warning!

The data recorded is shown in the following chart.

Opening inventory value 5 @ $11.50 = $57.50 Added to inventory 5 @ $10.50 = $52.50 Value of inventory 10 @ $11.00 = $110.00 When 2 units are sold, cost

of goods sold Cost variance 2 @ ($11.00 - 10.00) = $ 2.00 Closing inventory value ($110.00 - 20.00 - 2.00) = $ 88.00

2 @ $10.00 = $20.00

The remaining quantity on hand is 8 units.

You can change the standard cost of an item at any time using the Location Details form.

If you ship units of an item that uses the standard costing method and you have not yet entered a standard cost, Inventory Control calculates the cost of goods sold using a standard cost of zero.

Getting Started 2–3 3

Entering Inventory Control Setup Information

First-in, first-out (FIFO) costing method

Last-in, first-out (LIFO) costing method

FIFO/LIFO buckets

First-In, First-Out (FIFO)

Last-In, First-Out (LIFO).

and

Although these two costing methods differ in the way they calculate costs, they are similar enough to be discussed together.

Under the FIFO method of cost calculation, Inventory Control assumes that the first units to arrive at a loca tion are the first units shipped. Consequently, the units on hand in the closing inventory are assumed to be from the most recent purchases. As a result, current revenues are matched to oldest costs.

Under the LIFO method of cost calculation, the program assumes that the last units to arrive at a location are the first ones shipped. Consequently, the units on hand in the closing inventory are assumed to be from the oldest purchases.

The program keeps track of the order in which units arrive at a location by storing their receipt date, receipt number, quantity, and extended cost in individual “buckets.” The program calculates the cost of units shipped from the costs stored in the buckets. For FIFO, the program first ships units from the bucket having the oldest receipt date, and for LIFO the program first ships units from the bucket having the most recent receipt date.

Inventory balance

There is no limit to the number of buckets Inventory Control can use.

Consider Figure 2.1, where there are three buckets for an item at a location:

Jan.1, 2010

Date: Receipt #:

Qty:

$100.00

Cost:

Figure 2.1.

Date:

A123

FIFO/LIFO buckets, ordered by date.

Jan.22, 2010

Receipt #:

Qty:

$200.00

Cost:

A299

Date:

Receipt #: Qty: Cost:

Feb.5, 2010

A456

$55.00

The program calculates the inventory balance for the data in Figure 2.1 the same way for both FIFO and LIFO, by summing the costs from all buckets. So the inventory balance in the example is $355.00.

2–34 ACCPAC Inventory Control

Entering Inventory Control Setup Information

Cost of goods sold (FIFO)

When 15 units are shipped using FIFO costing (see Figure 2.1), the program takes the 10 units from the Jan. 1 bucket (the oldest bucket) at a cost of $100.00, and another 5 units from the Jan. 22 bucket (the next oldest bucket) at a cost of $50.00. Therefore, the total cost of goods sold is $150.00.

When all of the units are shipped from a bucket, the program deletes that bucket, so the Jan. 1 bucket is deleted. If only some of the units are shipped from a bucket, the program updates quantity and cost in the bucket. Figure 2.2 shows how the buckets from Figure 2.1 look after shipping the 15 units using FIFO costing.

Jan.22, 2010

Date: Receipt #: Qty: Cost:

Figure 2.2.

costing. The Jan. 1 bucket is gone, and the quantity and cost in the Jan. 22 bucket are updated. The Jan. 22 bucket is now the oldest bucket, so for th e n ext shipment the pro gra m w ill t a ke units from there first.

A299

$150.00

Buckets after shipping 15 un it s ( see Figure 2.1) using FIFO

Date:

Feb.5, 2010

Receipt #:

Qty:

$55.00

Cost:

A456

Before Setting Up

Cost of goods sold (LIFO)

The FIFO inventory balance is now $205 (the sum of the costs in the remaining two buckets).

When 15 units are shipped using LIFO costing (see Figure 2.1), the program takes the 5 units from the Feb. 5 bucket (the newest bucket) at a cost of $55.00, and another 10 units from the Jan. 22 bucket (the next newest bucket) at a cost of $100.00. Therefore, the total cost of goods sold is $155.00.

The Feb. 5 bucket is deleted, because the quantity is zero. The program updates quantity and cost in the Jan. 22 bucket.

Getting Started 2–3 5

Entering Inventory Control Setup Information

Figure 2.3 shows how the buckets from Figure 2.1 look after shipping the 15 units using LIFO costing.

The offset bucket

Jan.1, 2010

Date: Receipt #: Qty: Cost:

Figure 2.3.

costing. The Feb. 5 bucket is gone, and the quantity and cost in the Jan. 22 bucket are updated. The Jan. 22 bucket is now the newest bucket, so for th e n ext shipment the pro gra m w ill t a ke units from there first.

A123

$100.00

Buckets after shipping 15 un it s ( see Figure 2.1) using LIFO

Date:

Jan.22, 2010

Receipt #:

Qty:

$100.00

Cost:

A299

The LIFO inventory balance is now $200 (the sum of the costs in the remaining two buckets).

For each item at each location, there is an “offset” bucket the program uses for special cases, such as when you ship more items than there are in stock from a location (you must have turned on the Allow Negative Inventory Levels option in order to do this). Offset buckets contain a quantity and a cost, but do not contain a date or receipt number, like other buckets.

When you ship more units of an item than the total quantity from all buckets, the program records a negative quantity in the offset bucket and uses the most recent cost for the item at the location to calculate the extended cost.

For example, if you shipped 45 units from the example in Figure 2.1, which has a total quantity of only 35 units, the only bucket left would be the offset bucket, which would look like Figure 2.4.

Date: none Receipt #: none

-10

Qty:

-$110.00

Cost:

Offset bucket

Figure 2.4.

remains, with the quantity and cost shown. The program calculates the cost using the most recent cost of $11.00 (from t he Fe b . 5 b uck e t ) . T h e most recent cost is the same for both FIFO and LIFO.

2–36 ACCPAC Inventory Control

After shipping 45 units (see Figure 2.1), only the offset bucket

Entering Inventory Control Setup Information

If you receive 15 units of the item (on Mar. 7, at an extended cost of $150.00), the units are put into the newly created bucket shown in Figure 2.5.

Before Setting Up

none

Date: Receipt #:

-10

Qty:

-$110.00

Cost:

Figure 2.5.

and the offset bucket remains the same, with the quantity and cost shown.

Date:

none

After receiving 15 unit s (see Figure 2.4), a n e w bucket exists

Mar. 7, 2010

Receipt #:

Qty:

$150.00

Cost:

A679

Note that an offset bucket can contain a positive quantity, instead of a negative quantity, and that other buckets may exist while the offset bucket has either a positive or a negative quantity. The program uses all buckets, including the offset bucket, when it calculates the inventory balance for an item at a location.

If you ship units when the offset bucket has a positive quantity, the program ships the units from the offset bucket before shipping the units in other buckets.

If you ship units when the offset bucket has a negative quantity and there are units in other buckets, the program clears the offset bucket by shipping the number of units you specify plus enough units to cover the negative quantity in the offset bucket. The program includes in the calculation any cost in the offset bucket (positive or negative), so the offset bucket has zero quantity and zero cost after shipping.

Item Status report

Receipts do not affect the offset bucket.

For more information on how FIFO and LIFO buckets are affected by Inventory Control transactions, see Chapter 2, “What You Need to Know Before Using Inventory Control,” in the User Guide.

The Item Status report includes the information contained in each bucket, including the offset bucket. For information about and a sample of the Item Status report, see Chapter 7, “Reports,” in the User Guide.

Getting Started 2–3 7

Entering Inventory Control Setup Information

Most recent cost costing method

Warning!

Most Recent Cost.

When you ship units from a location using this costing method, Inventory Control assigns the cost of the most recently acquired unit at the location to all units shipped. Consequently, the units on hand in the closing inventory are assumed to be from the oldest acquisitions.

The program uses weighted moving average to value inventory when the costing method is most recent cost.

To determine the total cost of a shipment, the program multiplies the number of shipped units by their most recent cost at the location.

The program records the difference between the most recent cost and the average cost in the general ledger cost variance account of the category being used for the shipment. (The average cost is the total cost of units on hand divided by the total number of units on hand.)

If you ship units of an item that uses most recent costing and you have not yet received any stock or entered a most recent cost, Inventory Control calculates the cost of goods sold using a most recent cost of zero.

The following example shows how Inventory Control calculates the cost of goods sold and cost variance, using the most recent cost method.

Jan.1, added to location 1

100 @ $5.00 = $500.00

(most recent cost = $5.00) Jan.3, added to location 1

50 @ $6.00 = $300.00

(most recent cost = $6.00) Average cost $800.00 ÷ 150 = $5.33 When 60 units are shipped,

cost of goods sold is: Cost variance 60 @ ($5.33 - $6.00) = - $40.20

60 @ $6.00 = $360.00

You can change the most recent cost of an item at a location at any time.

2–38 ACCPAC Inventory Control

Entering Inventory Control Setup Information

User-specified costing method

User-specified.

for items as they are shipped. Inventory Control uses this costing method for all non-stock items. You can also use it for stock items.

Under this costing method, stock items are received and inventory valued at moving average cost. When you ship an item, you enter the unit cost or extended cost.

Setting Up Categories

You use categories in Inventory Control to group inventory items with similar characteristics. You can use categories to:

■

Classify items into logical groups for reporting purposes.

For example, a furniture company might use categories like

User-specified costing allows you to enter costs

Before Setting Up

those in the following table.

Category Description

ACCPAC Order Entry

C2 Chairs - steno D1 Desks - executive D2 Desks - secretarial F1 Filing cabinets

■

Allocate the cost of goods sold and sales by category.

When you add a category, you specify the general ledger

cost of goods sold and sales account numbers for that category. All items sold in the category use the specified accounts, unless you change the category when entering transactions.

Order Entry uses the sales accounts and returns accounts you

specify in categories. Inventory Control does not use these accounts.

Getting Started 2–3 9

Entering Inventory Control Setup Information

For example, to separate costs and revenue for items, specify

different general ledger accounts in the item’s category, as follows:

Category Description

C2 Chairs - steno 5000-10 4000-10 D1 Desk - executive 5000-20 4000-20 D2 Desk - secretarial 5000-20 4000-20 F1 Filing cabinet 5000-30 4000-30

■

Specify whether commissions can be earned on sales and, if

so, the maximum commission rate allowed . Commission information is used by Order Entry.

Cost of Goods

Sold Account

Sales Revenue Account

Where to create categories

■

Specify tax authorities and sales tax classes for use by Order

Entry, and purchase tax classes for use by Purchase Orders.

You must add categories before you can add items to Inventory Control. You assign a unique name of up to six characters, called a category code, to each category you create. If you do not group your inventory items, you can set up one category code and assign it to all items. Category codes can contain upper-case letters and numbers.

Use the Categories form to create categories for your Inventory Control system.

You can override the category when you ship an item, and you can change the category assigned to an item record at any time. For example, on a shipment you could specify the category as “sample” to deal separately with costs and revenues for goods shipped out as samples.

You cannot delete a category if it is assigned to any items.

2–40 ACCPAC Inventory Control

Entering Inventory Control Setup Information

Integration with general ledger

For each category, you must enter general ledger account numbers for the four following accounts (ACCPAC Order Entry uses the Sales account and Returns account — Inventory Control does not use them):

Sales.

■

A revenue account which Order Entry credits with

the revenue from goods sold.

Returns.

■

A revenue contra account which Order Entry debits to record the reduction of revenue caused when previously sold goods are returned or credit notes are issued.

Cost of Goods Sold.

■

An expense account which Inventory Control automatically debits with the cost of goods sold, and credits with the cost of goods returned.

Cost Variance.

■

An expense account in which Inventory Control records the cost variance between the actual cost and either the standard cost (for items using the standard costing method) or the most recent cost (for items using the most recent costing method) of inventory items sold.

Before Setting Up

ACCPAC Order Entry

ACCPAC Purchase Orders

If you use ACCPAC Order Entry, the Inventory Control categories:

■

Specify whether commissions can be paid on the sale of

items in a category and, if so, the maximum commission rate.

■

Assign a taxing authority and tax classes for sales.

Tax information from categories appears automatically in

item records to which you assign the category. You can override the category tax information in item records.

For more information about tax authorities and classes, see

the Tax and Bank Services User Guide .

Order Entry uses the commission rate and tax information — Inventory Control does not.

If you use ACCPAC Purchase Orders, the Inventory Control categories assign a taxing authority and tax classes for purcha ses.

Getting Started 2–4 1

Entering Inventory Control Setup Information

Changes

If you change the tax classes or the price list code in a category after assigning the category to inventory items, the changes appear only in the item records to which you assign the category after the changes.

Setting Up Locations

A location is a place, such as a warehouse or retail store, where you keep some or all of your inventory. For each location, you set up a location record in Inventory Control.

You must set up at least one location for your inventory items.

Where to add locations

Use the Locations form to add location records to your Inventory Control system.

When you add a location, you record the following information:

■

A unique name of up to six characters to identify the

location. Location names can contain upper-case letters and numbers.

If you use ACCPAC General Ledger

■

(Optional) The location’s name, address, phone and fax

numbers.

■

(Optional) The name of a contact person at the location.

■

Whether the location is active (available for use in

transactions).

■

You can specify which items you want to store at the location

if you turned off the Allow Items At All Locations option in the I/C Options form.

You can select groups of items for stocking by item number,

category, item segment, or picking sequence.

■

Whether you want to turn on the Override G/L Account

Segments option to replace (override) segments in General Ledger accounts when you generate Inventory Control transactions involving items stocked at the location.

The accounts affected are those in an item’s category and account set. You can replace any segment except the account

2–42 ACCPAC Inventory Control

Entering Inventory Control Setup Information

segment, which identifies the General Ledger account as an asset, liability, income, or expense account.

For example, if you have a location segment in your General Ledger inventory control account, you can value your stock by physical location if you replace the location segment with segment codes which identify physical locations.

Before Setting Up

Assign items to locations

Before you can post transactions involving an item at a location, such as receive the item at the location, you must do one of the following:

■

Select the Allow Items At All Locations option in the I/C

■

Assign the item to a location (an item can be assigned to

You must assign an item to a location before you can add

For more information on assigning items to locations, see the section “Assigning Items to Locations,” later in this chapter.

Setting Up Price Lists

Options form.

more than one location).

(receive) the current quantity and cost for the item at the location.

ACCPAC Order Entry

This section describes how you set up and use price lists in Inventory Control to meet your company’s needs. You can have as many price lists for your items as you need, to handle different locations, different countries, and different currencies.

Inventory Control uses the base price on price lists for shipments and for reports. Order Entry uses Inventory Control price lists to calculate prices, discounts, and taxes on orders and invoices.

You take the following steps to set up price lists for your items in Inventory Control:

1. Add one or more price lists using the Price List Codes form. Each price list lets you select default options for calculating

customer discounts (by customer type or by volume

Getting Started 2–4 3

Entering Inventory Control Setup Information

purchased) for the items you add to price lists. You can override these discount options when adding item prices to the price lists. You do not have to create price lists before you add inventory items.

2. Add inventory items using the Items form.

3. Add items to price lists using the Item Pricing form. To have items appear on a price list, you must assign the

items to the price list code. When you assign items to their first price list code, you specify pricing information for one item at a time. Afterwards, if you want to assign items to other price list codes, you can assign ranges of items, adjusting pricing information as needed at the same time.

These steps are described in more detail in the following sections.

Defining Price Lists

You use price lists to store pricing information for items, which you can then print on reports and on item labels and bin/shelf labels. If you have Order Entry, the pricing information is used to calculate invoice amounts, taxes, and discounts.

You can have price lists to store:

■

Regular prices.

■

Sale prices.

■

Wholesale prices.

■

Regional prices.

■

Prices that take into account volume discounts to customers

who make large purchases.

■

Prices in each currency with which your company deals (if

you use multicurrency accounting).

2–44 ACCPAC Inventory Control

Entering Inventory Control Setup Information

To add a price list, you:

■

Assign a unique code, up to six characters, to identify the

price list. Price list codes can contain upper-case letters and numbers.

■

Select default options and settings which will appear when

you add items to price lists. Specify: – Whether to calculate customer discounts by discounting

your selling price, by marking up your markup cost, or by marking up your standard cost.

– Whether to calculate customer discounts by discounting

or marking up by a percentage or a specific amount, and the percentage or specific amount to discount or mark up.

– Whether to base customer discounts on customer type,

or on the number of items purchased (volume discount).

– The rounding method (up, down, or none) that you want

the program to use when calculating discount or markup prices. If you discount or mark up prices by a percentage, you can also specify a number to which you want all prices rounded, such as the nearest five cents.

Before Setting Up

When you define price lists, they contain no prices — you add item prices later.

Adding Items to Price Lists

You add items to price lists after adding your inventory items to Inventory Control. After you add prices to one price list, you can use the price list as the basis for adding prices to other price lists.

For example, you can create a price list of your regular prices first, then create a sale price list by basing it on the regular price list. Basing the sale price list on the regular price list allows you to create the sale price list more quickly than if you enter item prices one at a time, as you must do for the first price list to which you add each item.

– Tax authorities (such as state or province) and customer

tax classes that apply to the sale of items on the price list.

Getting Started 2–4 5

Entering Inventory Control Setup Information

First price list

Use the Item Pricing form to add items to their first price list.

To add an item to a price list, you specify:

■

The currency code, for multicurrency ledgers (a price list can

contain items that use different currencies).

■

The price list code.

■

The item number.

■

A description you want to appear with the item on price list

reports.

■

The number of decimal places you want the program to use

for displaying and printing the prices and costs of the item.

■

A base price, which is the expected selling price.

■

A sale price with start and end dates for the sale (optional).

■

A markup cost, and a factor by which to mark up this cost to

calculate a selling price for the item.

■

Whether to calculate selling prices by discounting your

selling (base) price, or by marking up your cost. You can also choose to mark up your standard cost. In multicurrency ledgers, you can mark up on standard cost only on functional-currency price lists.

Other price lists

■

Whether to calculate customer discounts on selling prices by

a percentage or by a specific amount, and whether customer discounts are calculated based on volume purchased or on customer type.

■

Tax authorities (such as state or province) and customer tax

classes if you want the program to include taxes in the prices of items for ACCPAC Order Entry.

After adding items to their first price list, use the Copy Item Pricing form if you want to copy a single item or group of items to subsequent price lists. For information about using the Copy Item Pricing form, see “Maintaining Price Lists” in Chapter 4 of the User Guide.

2–46 ACCPAC Inventory Control

Entering Inventory Control Setup Information

To copy items already on a price list to another price list, you specify:

■

The price list code of the price list to which the items already belong.

■

The pricing currency you are copying from.

■

The price list code of the price list to which you are copying the items.

■

The pricing currency you are copying to.

■

Which items to add.

■

Which pricing information to copy exactly and which to adjust.

Before Setting Up

Updating price lists

Use the Update Item Pricing form if you want to change pricing information for a range of items on one or more price lists. For information about using Update Item Pricing, see “Maintaining Price Lists” in Chapter 4 of the User Guide.

Setting Up Contract Pricing

You use Contract Pricing to set up pricing for specific customers. The pricing is based on the customer number and either the Inventory Control category code or item number. You can set up a number of contract pricing arrangements for each customer.

Contract Pricing Based on Category Code

If you base pricing on the category code, you can choose to have the customer’s contract price for an item determined by the customer type (A, B, C, D, E, or Base), a discount percentage, a discount amount, cost plus a percentage or cost plus a fixed amount. (Inventory Control does not directly use customer types, but they are used by ACCPAC Order Entry.)

If you select:

Customer type

■

, then all items for that category will be

priced using the customer type specified.

Discount percentage

■

, then all items for that category will be priced using the base price from the price list (specified on the order) less the discount percentage.

Getting Started 2–4 7

Entering Inventory Control Setup Information

Discount amount

■

priced using the base price from the price list (specified on the order) less the discount amount.

Cost plus a percentage

■

cost you specified plus a percentage of the cost.

Cost plus a fixed amount

■

cost you specified plus a fixed amount.

then all items for that category will be

then the item is priced using the

, then the item is priced using the

Contract Pricing Based on Item Number

If you base pricing on the item number, you can choose to have the customer’s contract price for an item determined by the customer type (A, B, C, D, E, or Base), a discount percentage, a discount amount, the cost plus a set percentage, the cost plus a fixed amount, or a fixed price.

If you select:

Customer type

■

, then the item is priced using the price list

and customer type you specified.

Discount percentage

■

, then the item is priced using the

base price from the price list less the discount percent.

Discount amount

■

, then the item is priced using the base

price from the price list less the discount amount.

Cost plus a percentage

■

, then the item is priced using the

cost you specified plus a percentage of the cost.

Cost plus a fixed amount

■

, then the item is priced using the

cost you specified plus a fixed amount.

Fixed price

■

specified.

After you have set up contract pricing for a customer, you can later use the Contract Pricing form to add, remove or edit contract pricing.

2–48 ACCPAC Inventory Control

, then the item is priced using the amount

Setting Up Inventory Item Records

Before you can enter inventory transactions, you need to add your inventory item records to Inventory Control. Item records contain the information you need to manage your inventory.

This section tells you what you need to know before adding item records to Inventory Control, and describes the options you can select so the item records meet your company’s needs.

Before Setting Up

Prepare to add inventory item records

Add inventory items

Add reorder information

ACCPAC Purchase Orders

Assign items to locations

Before you can add your item records to Inventory Control, you must set up item number formats, account sets, categories, and locations. If you need more information about any of these tasks, they are discussed in earlier sections in this chapter.

You take the following steps to set up item records in Inventory Control:

1. Add the item information from your existing inventory system to Inventory Control, selecting the options you want to use.

2. (Optional) Add minimum and maximum desired stock quantities for items so you can print reports to identify understocked and overstocked items in your inventory.

Purchase Orders uses reorder information to automatically

generate purchase orders for understocked items.

3. (Optional) If you have already set up your inventory locations, assign items to the locations where you want to stock them (or you can do this later).

Add bills of material

Note:

If you turned on the Allow Items At All Locations option in the I/C Options form then the program assigns all items to all locations.

4. (Optional) If you repackage or assemble items before selling them as merchandise, add bills of material to define master items that you make from component items.

These steps are described in more detail in the following sections.

Getting Started 2–4 9

Setting Up Inventory Item Records

When you are ready to add your item records to Inventory Control, follow the instructions in Chapter 3, “Setting Up Your Inventory Control System.”

Adding Inventory Items

Adding item records to Inventory Control involves transferring your existing item information to ACCPAC and selecting options that help you process inventory data effectively.

When you add an item, you record the following information in the Items form:

■

The item number you use to identify the item, described in

the section “Defining Item Number Formats,” earlier in this chapter.

■

A description of the item.

■

The item number structure (the code you use to identify the

item number format).

■

The category to which the item belongs.

■

The account set the item uses. (You assign an account set to

define the costing method and general ledger balance-sheet accounts for the item.)

■

(Optional) A commodity number, if your company reports a

value-added tax (VAT).

■

The weight of one stocking unit of the item. The weight must

be in the same weight units (such as pounds) you specified in the I/C Options form. For more information, see “Defining a Unit of Weight for Inventory Items,” earlier in this chapter.

■

The price list from which you want the Shipments form to

display the item’s price. (You can override this price list when you enter shipments.)

ACCPAC Order Entry

If you use Order Entry, the prices Order Entry displays for

items come from this price list (if it has a price in the customer’s currency).

2–50 ACCPAC Inventory Control

Setting Up Inventory Item Records

■

Whether the item is a regular stock item that you store in

your inventory, or a non-stock item such as a service charge or other item which you do not store in your physical inventory.

■

Whether the item has serial numbers that you track.

■

(Optional) The item number of an item in your inventory

that you want to be an alternate for the item record you are adding. An alternate item is an item that you want to ship when the regular item is out of stock.

For more information about alternate items, see the section

“Alternate Items,” later in this chapter.

■

The stocking unit of measure (such as each or dozen), which

is the unit Inventory Control uses to report stock levels for the item.

Before Setting Up

ACCPAC Order Entry and Purchase Orders

If you did not select the Allow Fractional Quantities option in

the I/C Options form, the stocking unit is the smallest unit of measure you can specify.

■

(Optional) Other units of measure for the item (based on the

stocking unit) by which you purchase or sell the item.

■

(Optional) Tax information, including the taxing authority,

and tax classes for purchases and sales of the item.

Order Entry and Purchase Orders use this information to

calculate tax amounts. Inventory Control uses tax information for reporting purposes only.

For more information about taxes, see the Tax and Bank

Services User Guide.

■

(Optional) Information about the vendor(s) who supply the

item. This information includes the vendor number (up to 12 characters), the name of a contact person, your priority rating for the vendor (primary, secondary, and so on), and the vendor’s number for the item.

Vendor numbers ca n contain upper-case letters, numbers,

blanks, symbols (such as @ and #), and punctuation marks (such as ? and !).

For information on printing the Vendors report, see

Chapter 7, “Reports,” in the User Guide.

Getting Started 2–5 1

Setting Up Inventory Item Records

■

Information your company wants to include in any optional

fields you created for your item records in the I/C Options form.

For information about optional fields, see “Defining Optional

Fields for Item Records,” earlier in this chapter.

■

Up to 300 characters of additional item information.

Importing item records

You can import item records into Inventory Control from nonACCPAC programs, instead of entering them in the Items form. For information about importing item records, see Appendix C, “Importing and Exporting,” in the User Guide.

Non-stock Items

You can create non-stock item records to use when shipping specially ordered items which you do not normally stock in your inventory, or to handle service charges or other non-inventory charges.

Non-stock items must use the user-specified costing method. For information about the user-specified costing method, see “Costing Methods,” earlier in this chapter.

Items with Serial Numbers

A serial number is a number that a manufacturer assigns to an item to distinguish it from other items. When you ship or return an item for which the Serial Number option is turned on, you can record one or more serial numbers for the item and print the Serial Numbers report, which contains the following information:

■

Shipment or return date.

■

Transaction type (shipment or return).

■

Customer number.

■

Customer name (contact).

■

Item number and description.

2–52 ACCPAC Inventory Control

■

Serial number.

Setting Up Inventory Item Records

Alternate Items

■

Category code.

■

Location code.

■

Transaction reference.

You can print the Serial Numbers report or export it to a nonACCPAC program, such as a program for tracking serial numbers and warranties. For information about exporting the report, see Appendix C, “Importing and Exporting,” in the User Guide.

For each item in your inventory, you can specify other items as alternates. The following example illustrates how this works:

1. Add items A, B, and C to Inventory Control.

2. On A’s item record, select item B as its alternate item.

The program links the two items so that item A is also an

alternate for item B.

Before Setting Up

3. On C’s item record, select item A or B as its alternate item.

Item C is linked to the alterna te item list that already

contains A and B. The result is that each of items A, B, and C has two alternates.

The following table shows this result:

Item Alternate items

A B, C

B A, C

C A, B

4. Remove item B from Inventory Control by deleting its item record.

Getting Started 2–5 3

Setting Up Inventory Item Records

5. After removing item B, the relationships between the remaining items look like this:

The links between items A and C were not destroyed even though item B, which originally established them, was deleted from the system.

For information on printing the Alternate Items report, see Chapter 7, “Reports,” in the User Guide.

Item Alternate items

A C C A

ACCPAC Order Entry

If you use Order Entry, you can select from an item’s alternates when entering orders, invoices, or credit notes.

Adding Reorder Information

If you add reorder information to Inventory Control, you can print reports that list understocked and overstocked items in your inventory. You can use these reports to help you decide when to reorder.

Adding reorder information

ACCPAC Purchase Orders

Use Reorder Quantities to add reorder information for your inventory items.

If you use Inventory Control with Purchase Orders, you can use the Purchase Orders program to generate purchase orders automatically for items that need to be reordered.

If you stock an item at more than one location, you can add reorder information for the item at a specific location or all locations. These options are mutually exclusive. If you set a reorder quantity for an item at a specific location, you cannot also set a reorder quantity for the same item at all locations, and vice-versa.

2–54 ACCPAC Inventory Control

Setting Up Inventory Item Records

Varying reorder information

Minimum and maximum quantities

You can keep different reorder information for different periods of the year. You can specify quantities for as many periods as you want within the calendar year.

You can record the following reorder information for each period:

■

The minimum and maximum number of units you want in

inventory.

■

The number of units to order when the item’s quantity falls

either below the minimum, or below the projected sales.

■

The projected sales.

You record all quantities in terms of the stocking unit of measure (which is the unit Inventory Control uses to report stock levels for the item).

Inventory Control calculates the number of units for an item as the quantity on hand plus the quantity on purchase order, minus the quantity on sales order.

Before Setting Up

For example, if the quantity of an item on hand is 100, on purchase order is 50, and on sales order is 80, then the quantity of stock for that item is 70 (that is, 100+50-80).

If you want to specify different reorder information for each calendar quarter, enter the four period-start dates: January 1, April 1, July 1, and October 1. For bi-monthly coverage enter the six period start-dates: January 1, March 1, May 1, July 1, September 1, and November 1.

Note that you enter period-start dates numerically in the order month, day. For example, you would enter the period-start date June 30 as 6/30.

In the preceding two examples, the first period starts on January 1 and all periods are of equal duration, but these are not requirements. For example, here is another set of valid periodstart dates: May 2, September 10, January 20, and March 25.

You may want to add reorder information only for part of your inventory, such as expensive or high-volume items.

Getting Started 2–5 5

Setting Up Inventory Item Records

Assigning Items to Locations

If you did not select the Allow Items At All Locations option in the I/C Options form, you must assign an item to the location(s) where you want to stock it. You must allow an item at a location before you can post transactions involving the item and location.

For example, you must assign an item to a location before you can add (receive) to Inventory Control the number of units and cost for the item at the location. (For more information on adding current item quantities and costs, see “Entering Current Item Quantities and Costs,” later in this chapter.)

You can assign active items to any number of locations. (You cannot assign inactive items to locations.)

Assign all items to all locations

Inventory Control provides three ways for you to assign items to locations. You can assign:

■

All your inventory items to all locations.

■

A group of items to specific locations.

■

A single item to specific locations.

Use the following list to decide which of these methods (or combination of methods) of assigning items to locations is the most efficient for you to use.

■

If your company does not keep inventory at more than one

location, or it does not need to restrict any items from being kept at any of several locations, you can save time setting up

your Inventory Control system by assigning all your

inventory items to all locations. This allows you to start entering transactions right away involving any item at any location.

To allow every item to be stocked at all storage locations,

select the Allow Items At All Locations option on the Processing tab in the I/C Options form. You can turn the option on or off at any time.

Assign a single item to specific locations

■

If your company keeps some inventory items at more than

one location, but restricts others, you can assign items individually to as many locations as you want.

2–56 ACCPAC Inventory Control

Assign multiple items to specific locations

Setting Up Inventory Item Records

Use Location Details to assign single items to inventory

locations.

■

If your company keeps different categories or types of

inventory items at different locations, you can assign ranges of items (by item category, item number, or a segment of an item number) to any locations.

For example, if you had the three item categories F1, F2, and

F3 for different types of filing cabinets, you could assign all the filing cabinets to a location by specifying that all items having a category in the range F1 to F3 be assigned to the location.

Use the Loca tions form to assign groups of items at the same

time to a specific inventory location.

Before Setting Up

Adding Bills of Material

Many non-manufacturing companies repackage items or assemble items before selling them. Inventory Control contains an assembly function designed for these situations. You can use the assembly function to assemble bills of material that you create.

You create a bill of material to define the component items and quantities, and the fixed and variable costs, required to assemble a specific number of units (build quantity) of a master item.

An assembly of a bill of material takes component items out of inventory and creates a supply of master items. If you allow negative inventory levels, you can assemble a master item even if its component items are not in stock. The costs of the components are transferred to the master item.

If you assemble the same master item from different components (for example, using alternate items), you must set up a separate bill of material for each version of the master item.

Getting Started 2–5 7

Setting Up Inventory Item Records

Build quantity

Assigning numbers to identify bills of material

The build quantity is the number of master items that one assembly of a bill of material produces. No fractional build quantities are allowed. For the build-quantity unit of measure, you can use any of the units of measure specified in the master item record.

For example, consider the following bill of material:

Master item = Mixture A Build quantity = 10 bottles Components: X1= 3 boxes, Y1 = 4 cans, Z1 = 7 lb.

One assembly of the above bill of material requires 3 boxes

of X1, 4 cans of Y1, and 7 pounds of Z1 to make 10 bottles of Mixture A.

You assign each bill of material (BOM) a BOM number, up to six characters long, which uniquely identifies it. If you want to assemble the same master item with different components, you specify a different BOM number for the second bill of material. BOM numbers can contain upper-case letters and numbers.

Fixed and variable costs

When you add a bill of material, you can specify fixed and variable costs associated with assembling the master item.

Fixed cost is the setup cost for preparing to assemble a bill of material one or more times. The fixed cost is a one-time cost which is the same regardless of the number of times you assemble the build quantity of the master item.

Variable cost is the cost of assembling the build quantity of a bill of material exactly once. When you assemble a bill of material, the program multiplies the variable cost by the number of assemblies (not the number of master items produced). The cost of labor for an assembly is an example of a variable cost.

For example, consider the following bill of material:

Master item = Mixture A Build quantity = 10 bottles Components: X1 = 3 boxes, Y1 = 4 cans, Z1 = 7 lb. Fixed cost = $16.00 (for setup) Variable cost = $15.00 (for labor)

2–58 ACCPAC Inventory Control

Setting Up Inventory Item Records

Assembling the preceding bill of material five times:

Adding bills of material

Rules for bills of material

■

Produces fifty bottles (5 times 10 bottles) of the master item (mixture A).

■

Requires 15 boxes of X1, 20 cans of Y1, and 35 pounds of Z1.

■

Incurs a fixed cost of $16.00 (this is the setup cost).

■

Incurs a variable cost of $75.00 (5 times $15.00).

Use the Bills Of Material form to add bills of material to Inventory Control.

Follow these rules when defining and using bills of material:

■

Before you can set up a bill of material, you must add item

records for the items you intend to use for the master item and component items to the bill of material.

■

Before you can post an assembly transaction, the master item

and all its component items must be stocked at the same Inventory Control location.

■

Master items and component items can use any costing

method except the user-specified costing method. (For information about costing methods, see “Costing Methods,” earlier in this chapter.)

Before Setting Up

■

You cannot delete an item from inventory if it is a master or

component item in a bill of material.

■

The component items in a bill of material are fixed (you

cannot use alternate components). To build a master item using an alternate component item, you must create, and use, a separate bill of material.

■

You can create a bill of material that uses the master item

from a different bill of material as a component item. You must assemble as many units of the component master item as you need, prior to assembling the next level of master item.

Getting Started 2–5 9

Importing and Exporting Inventory Control Records

Having a computerized inventory control system means that you can import records directly into ACCPAC Inventory Control.

You can also export records from another ACCPAC Inventory Control database, edit them in a spreadsheet or other program to change codes, amounts, and other information, then import them into the new ACCPAC Inventory Control system you are setting up.

What you can import or export

Inventory Control records you can both import and export include:

■

Account sets

■

Bills of material

■

Categories

■

Item pricing

■

Item mappings

■

Item structures

■

Items

■

Location details

■

Contract pricing

■

Locations Physical inventory quantities Price list codes Reorder quantities Sales statistics Segment codes Transaction statistics Vendor Details

You can, for example, export sales statistics to a spreadsheet for further analysis. You can also export price lists to a spreadsheet, change pricing information, then import the sales statistics back into Inventory Control.

Import only

Inventory Control records you can import (but not export) include:

■

Adjustments

■

Assemblies

■

Receipts

2–60 ACCPAC Inventory Control

■

Shipments

■

Transfers

Entering Current an d Historical Data

Export only

Export formats

Inventory Control records you can export (but not import) include:

■

Serial numbers

Inventory Control can create export files in several formats, including:

■

Excel 2000

■

CSV File (Comma Separated Values)

■

Single CSV file

■

Access

■

dBase 5.0

■

Excel 5.0

■

ODBC

You select the format to use when you export the data.

Before Setting Up

Import formats

You can also create files to be imported by Inventory Control in any of the above formats.

For information about importing and exporting Inventory Control records, see Appendix C, “Importing and Exporting,” in the User Guide, and also see the System Manager User Guide.

Entering Current and Historical Data

Item quantities and costs

Sales and transaction statistics

To set up your Inventory Control system, you must add your current item quantities and costs.

Inventory Control maintains sales and transaction statistics for the current year and for all the previous years for which you retain the data. You add the historical information you need during setup. Inventory Control then automatically updates the statistical information each time you run day-end processing.

Getting Started 2–6 1

Entering Current an d Historical Data

Current-year sales and transaction statistics

If you set up partway through a fiscal year, enter any sales and transaction statistics from previous periods of the current year that you want to view online or for which you want to print reports.

Previous-years sales and transaction statistics

You can also enter any sales and transaction statistics f r om previous years that you want to view online or for which you want to print reports.

You can enter current-year and previous-years sales and transaction statistics either during or after setup.

Entering Current Item Quantities and Costs

When you set up your Inventory Control system, you must add the current quantities and costs for your inventory items.

You add your current item quantities and costs by receiving them using the Receipts form. You can also import receipts from a spreadsheet or other non-ACCPAC program.

For step-by-step instructions on adding your current item quantities and costs, see “Step 11: Add Current Item Quantities and Costs,” in Chapter 3, “Setting Up Your Inventory Control System.”

Entering Sales Statistics for Current and Previous Years

If you want prior-period sales statistics, you can enter the sales data (units sold, number of transactions, sales amount, and actual cost) from current and previous years that you want to view online or for which you want to print reports either during or after setup.

Before you can add sales data, you must select the Allow Edit Of Statistics option on the Processing tab of the I/C Options form.

Use Sales Statistics to add sales data from current and previous years to your Inventory Control system.

2–62 ACCPAC Inventory Control

Using Multicurrency Accounting in Inventory Control

Step-by-step instructions for entering sales statistics are included in “Step 12: Add Sales Statistics,” in Chapter 3.

Entering Transaction Statistics for Current and Previous Years

Either during or after setup, you can enter transaction data from current and previous years that you want to view online or for which you want to print reports.

Before you can add transaction data, you must select the Allow Edit Of Statistics option on the Processing tab of the I/C Options form.

Use Transaction Statistics to add transaction data from current and previous years to your Inventory Control system.

Before Setting Up

Step-by-step instructions for entering transaction statistics are included in “Step 13: Add Transaction Statistics,” in Chapter 3.

Using Multicurrency Accounting in Inventory Control

You use multicurrency accounting if you want to process receipt transactions and shipment transactions, maintain price lists, and fill orders (using ACCPAC Order Entry) in more than one currency.

To create a multicurrency Inventory Control system, you:

1. Turn on the Multicurrency option for the company and select a default rate type in the Company Profile form of Common Services.

2. Use the Currency form in Common Services to add any currency codes you need for Inventory Control, and enter exchange rates for the currencies you use.

When you install ACCPAC, you also install a large set of

currency codes that use standard international abbreviations and the format and number of decimal places that are

Getting Started 2–6 3

Where To Now?

normally used with each currency. You probably will not need to define new code s unle ss you do not use the international codes.

Turn on multicurrency accounting

You cannot turn off the Multicurrency option

Add price lists in each currency

3. Select the Multicurrency option in the I/C Options form in

You can select the Multicurrency option at any time, but once

4. Use the Item Pricing and Copy Item Pricing forms to add

You do not need to enter multicurrency totals for Inventory Control sales statistics, because the program keeps these statistics in the functional currency.

Where To Now?

You are now ready to set up your own ACCPAC Inventory Control system, following the steps in Chapter 3, “Setting Up Your Inventory Control System.” You may also want to practice processing Inventory Control transactions using the lessons in Chapter 4, “Tutorial,” in this manual.

Inventory Control to turn on multicurrency accounting for your Inventory Control system.

you save the I/C Options form with the option selected, you cannot change back to single-currency accounting.

item prices for every currency in which you sell each item.

If you are unfamiliar with the operation of the System Manager, you should read the System Manager User Guide.

2–64 ACCPAC Inventory Control

Chapter 3 Setting Up Your Inventory Control System

Before You Begin Using Inventory Control with an Internet Browser

Access Restrictions to Inventory Control Overview of Inventory Control Setup While You Work

Guideposts to Inventory Control Information

Using Finders Using Help Finding Additional Information Finding Multicurrency Information Protecting Your Work

Setting Up an Inventory Control System

Step 1: Gather Data from Your Present Inventory Control System

Step 2: Add Inventory Accounts to Your Chart of Accounts

Step 3: Add Tax, Currency, and Security Information for Inventory Control in

Common Services

Step 4: Select Inventory Control Options

Changing Your Selection of Inventory Control Options

Step 5: Add Inventory Control Records

Add Segment Codes Add Item Structures Add Account Sets Add Inventory Locations Add Price List Codes Add Categories

Modifying and Deleting Inventory Control Records Step 6: Add Inventory Items Step 7: Assign Vendors to Items (Optional)

Modifying and Deleting Item Records

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3–1 3–2 3–3 3–3 3–5 3–5 3–5 3–6 3–6 3–7 3–7 3–7 3–8 3–9

3–10 3–10 3–21 3–21 3–23 3–24 3–26 3–28 3–31 3–35 3–38 3–39 3–45 3–47

Inventory Control

Setting Up

Getting Started 3–i

Allow Items at Locations

Step 8: Assigning Items to Price Lists

Modifying Price Lists

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Step 9: Set up Contract Pricing (Optional) Step 10: Add Location Details for Items

Modifying Location Details

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Step 11: Add Bills of Material (Optional) Step 12: Add Reorder Information (Optional) Step 13: Add Current Item Quantities and Costs Step 14: Add Sales Statistics (Optional) Step 15: Add Transaction Statistics (Optional)

Where To Now?

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3–48 3–51 3–55 3–55 3–58 3–61 3–62 3–64 3–67 3–70 3–72 3–74

3–ii ACCPAC Inventory Control

Chapter 3 Setting Up Your Inventory Control System

This chapter contains instructions for defining and creating an inventory control system suited to your business. It also describes how to transfer your existing inventory control records to ACCPAC Inventory Control after you have set up the system.

The purpose of this chapter is to get you “up and running” quickly. For a complete understanding of options, read Chapter 2, “What you Need to Know Before Setting Up Inventory Control,” in this guide.

Converting from ACCPAC Plus to ACCPAC Advantage Series

If you plan to convert from the DOS version of Inventory Control, first follow the instructions in the guide, Converting from ACCPAC Plus Accounting, before following the steps in this chapter. The Converting From ACCPAC Plus Accounting guide contains general information about conversion as well as the steps you must follow to convert your data.

Before You Begin

Inventory Control

Setting Up

For more information about any task in the following list, see the ACCPAC System Manager Administrator Guide.

1. Install and set up the ACCPAC System Manager.

2. Install the Inventory Control program. When you install Inventory Control, a dialog box allows you

to choose the components to install. If you plan to use the ACCPAC Customization Kit to customize any of Inventory Control’s user-interface forms, make sure you include I/C Screens when you select components to install.

Getting Started 3–1

Using Inventory Control with an Internet Browser

For information on customizing ACCPAC user-interface

forms and reports, refer to the ACCPAC Customization Kit User Guide.

3. Create a database for your company and select companywide options from Common Services.

4. Activate Inventory Control.

When you have completed the tasks in this list, you are ready to set up your Inventory Control system.

Using Inventory Control with an Internet Browser

Inventory Control is designed to enable users at remote locations to enter and view data using an Internet browser.

The left-hand panel provides buttons that let you open the program you wish to use. These buttons correspond to the folders and icons on the ACCPAC desktop.

Click the button i n t he left panel for the form you wish to use, or click the relat ed i con in the area to the right.

If you are using a browser, you navigate the program a little differently than you would from the ACCPAC desktop. Because the differences are minimal, they are noted once, here, rather than throughout this guide.

The following illustration depicts the browser after you have signed on to your company database.

3–2 ACCPAC Inventory Control

To find out how to set up your system for use on the Web and how to sign on to ACCPAC through your browser, see the System Manager Administrat o r Guide.

Access Restrictions to Inventory Control

If you are running Inventory Control on a network, your System Administrator defines a password and security profile for each person who uses ACCPAC.

Your password and security profile determine which icons appear for your use when you sign on to ACCPAC. You might not have access to some icons and forms discussed in this guide. If you require access to an icon or form that does not appear on your screen, contact your ACCPAC System Administrator.

Overview of Inventory Control Setup

Inventory Control

Setting Up

For information about the ACCPAC security system, see Chapter 7 in the System Manager Administrator Guide. Also, see Appendix D in the Inventory Control User Guide which lists the Inventory Control tasks to which security can be assigned.

Overview of Inventory Control Setup

The flowchart on the next page lists the tasks involved in setting up an ACCPAC Inventory Control system. The step numbers, shown in parentheses, identify the sections of this chapter where each task is fully explained.

Getting Started 3–3

Overview of Inventory Control Setup

Gather data from your present inventory control system (Step 1)

Add inventory accounts to your chart of accounts (Step 2)

Add tax, currency, and security information (Step 3)

Select Inventory Control options (Step 4)

Add the following records to customize your Inventory Control system (Step 5):



Segment codes (optional)



Item structures



General ledger account sets

Add inventory items (Step 6)

Assign vendors to items (optional) (Step 7)

Assign items to price lists (Step 8)

Set up contract pricing (optional) (Step 9)

Add current item information:



Location details for items (Step 10)



Bills of material (optional) (Step 11)



Reorder quantities (optional) (Step 12)



Inventory locations



Price list codes



Categories



Current item quantities and costs (Step 13)

Add sales statistics (optional) (Step 14)

Add transaction statistics (optional) (Step 15)

3–4 ACCPAC Inventory Control

While You Work

Use the setup checklist and data entry forms

You can simplify your data entry by following the Setup checklist and by completing the supplied data entry forms, then referring to them as you set up your Inventory Control system.

See Appendix B, “Setup Checklist and Data Entry Forms,” in the User Guide for examples of the checklist and forms, and for instructions on how to print them.

Review “What You Need to Know...”

If you need more background or overview information any time during the setup, refer to Chapter 2, “What You Need to Know Before Setting Up Inventory Control,” in this manual.

Skip steps that do not apply to the way you will use Inventory Control.

Guideposts to Inventory Control Information

This section describes icons that identify information or suggestions to help make setup easier and protect your work.

Inventory Control

Setting Up

Using Finders

Finder icon

A Finder icon beside a field in an ACCPAC form indicates that you can use it to display a list of possible entries for the field.

To open a Finder list, do one of the following:

■

Click the Finder button with a mouse.

■

Press the F5 key.

To select a record from a Finder list, do one of the following:

■

Double-click your selection with a mouse.

■

Use the arrow keys to highlight a selection, then press Enter.

■

Click or use the arrow keys to highlight a selection, then:

Click the Select button with your mouse.

–

Hold down the Alt key then press S.

–

Getting Started 3–5

While You Work

Varying the order of records in a Finder list

Go button

Mouse icon

Keyboard icon

The Finder also lets you search for records by specifying selection criteria (matching records based on the contents of particular fields), and lets you vary the display order.

For instructions on using the various features of the Finder, press F1 when the Finder list is open.

To display records in some Inventory Control forms, you make entries in two or more fields that have Finders, then click the Go button. The program automatically inserts entries in the required fields based on the record selected, and displays the record.

If you use a mouse,

click the mouse pointer on a different tab

to display the information on that tab.

If you use the keyboard,

press the Alt key plus the underlined letter on the tab you wish to move to. (For example, to move to the Processing tab in the I/C Options form when you have the Company tab displayed, press Alt+P.)

Using Help

Press the F1 key

If you have questions or encounter error messages as you work in ACCPAC applications, press the F1 key or choose Help from the menu.

To get help on a specific topic, click Contents on the Help menu and choose a topic from the list, or click the Search tab, type a description of the topic, then choose from the list.

Finding Additional Information

Further information

The Information icon identifies other sections in the Inventory Control guides that contain background information about setup tasks. You should read the suggested sections when you need more information about the task you are trying to accomplish.

Security icon

This icon indicates that security settings are needed.

3–6 ACCPAC Inventory Control

Finding Multicurrency Information

Setting Up an Inventory Control System

Multicurrency icon

Protecting Your Work

Check data and make backups

The multicurrency icon identifies information and instructions that apply to a multicurrency Inventory Control ledger.

If you do not use multicurrency accounting, the icon lets you easily recognize sections you can skip.

Throughout this chapter, when you see a microscope in the margin, you should check data integrity and make backups of your ACCPAC data.

Do not ignore this suggestion!

You should check integrity and back up your data:

■

When you have added records that would be timeconsuming to enter a second time.

■

Before you run Day End Processing or do other major tasks that change your Inventory Control data.

Inventory Control

Setting Up

For most offices, this means a routine, daily integrity check and backup of accounting records.

For information about checking data integrity and making backups, see the System Manager User Guide.

Setting Up an Inventory Control System

The rest of this chapter guides you step by step through setting up your Inventory Control system. The instructions in each step list the information you must enter to define records, as well as optional information you may wish to enter or that you may need for your particular system.

Getting Started 3–7

Setting Up an Inventory Control System

Step 1: Gather Data from Your Present Inventory Control System

After you have activated your ACCPAC Inventory Control data files, you must add the data from your company's present inventory system to Inventory Control.

Refer to existing records

First, gather all your current Inventory Control records. These can be manual records or printed listings and reports from other accounting software, such as:

■

A list of the general ledger accounts used in your Inventory Control system, including:

– Inventory control – Cost of goods sold – Payables clearing – Adjustment write-off – Assembly cost credit – Non-stock clearing

■

Lists of codes and other information you will use for setup:

– Cost variance – Sales – Returns

– Item structures – Categories – Segment codes – Account sets – Price list codes

– Locations – Item records – Bills of material

■

The current quantity, cost, price, and tax status for each inventory item.

■

Stocking information for each item, including minimum and maximum levels, and reorder and projected sales quantities (optional).

■

If you do not use ACCPAC Accounts Payable, a list of the vendors you deal with (including the items you purchase from each vendor) (optional).

■

Historical sales statistics for items (optional).

■

If you use a multicurrency Inventory Control ledger, a list of the source currencies in which you deal, and a list of current exchange rates.

3–8 ACCPAC Inventory Control

Setting Up an Inventory Control System

Work from data entry forms and checklists

Consider importing the data

■

The data entry forms and checklists you printed and filled

out while reading Chapter 2, “What You Need to Know Before Setting Up Inventory Control.”

You may be able to enter much of the Inventory Control data by copying it directly from files created by another program. In ACCPAC, this is called importing.

You can import data into ACCPAC Inventory Control for:

■

Account sets

■

Bills of material

■

Categories

■

Item pricing

■

Item mappings

■

Item structures

■

Items

■

Locations Physical inventory quantities Price list codes Reorder quantities Sales statistics Segment codes Transaction statistics

Inventory Control

Setting Up

■

Location details

■

Contract pricing

■

Vendor details

For further information about importing, read Appendix C, “Importing and Exporting,” in the User Guide.

Step 2: Add Inventory Accounts to Your Chart of Accounts

Add the accounts to your general ledger that you need for your Inventory Control data, including:

■

Inventory control

■

Payables clearing

■

Adjustment write-off

■

Assembly cost credit

■

Non-stock clearing

■

Cost of goods sold Cost variance

■

Sales

■

Returns

Getting Started 3–9

Setting Up an Inventory Control System

Step 3: Add Tax, Currency, and Security Information for Inventory

Control in Common Services

Tax Services

Use the Tax Services form in Common Services to enter tax information used in Inventory Control. For information about this service, see the Tax and Bank Services User Guide.

If you use currency codes or currencies not currently included in the Common Services Currency feature, add the currencies you require, and enter rates for each currency, following the instructions in the System Manager User Guide.

Security

Use Administrative Services to assign passwords and assign user authorizations for Inventory Control. See Chapter 7, “Setting Up Security,” in the System Manager Administrato r Guide for more information.

Step 4: Select Inventory Control Options

After you install the Inventory Control program and activate Inventory Control for your company database, your first task is to select Inventory Control processing options and enter general information about your inventory system.

You enter this information in the I/C Options form, which is found in the Inventory Control Setup folder.

If you change settings after setup, you can modify the information in the I/C Options form.

The I/C Options form contains the following tabs:

■

Company.

■

Processing.

■

Items.

■

Integration.

3–10 ACCPAC Inventory Control

For background reading about setup options, see “Choosing Inventory Control Options,” in Chapter 2 of this manual.

SageAccpac INVENTORY CONTROL User Manual

Specifications and Main Features

Frequently Asked Questions

User Manual

Contents

Inventory Control Features

Tailor Inventory Control to Your Business

Maintain Detailed and Accurate Inventory Information

Take Advantage of Flexible Transaction Entry

Produce Comprehensive Accounting and Management Information

Protect the Integrity of Your Data

Use Multicurrency Accounting

Integrating with Other Programs

How to Use This Guide

The User Guide

Converting From ACCPAC Plus

Where To Now?

Overview of Inventory Control Setup

Steps in Inventory Control Setup

Choosing Inventory Control Options

Company Information

Processing Options

Using Multicurrency Accounting

Allowing Transactions That Use Fractional Quantities

Allowing Transactions Resulting in Negative Quantities

Allowing Every Inventory Item at All Storage Locations

Saving Transaction History for Reporting

Handling Additional Costs on Receipt Returns

Accumulating Item Statistics for Reporting

Using Alternate Cost Fields

Defining a Unit of Weight for Inventory Items

Item Number Options

Defining Segments for Item Numbers

Defining Optional Fields for Item Records

G/L Integration Options

Choosing Consolidation Options for General Ledger Transactions

Selecting References and Descriptions for General Ledger Transactions

Planning Your Item Numbers

Follow These Steps When Planning Your Item Number Formats

Defining Item Number Formats

Tips for Item Number Formats

Setting Up Segments

Adding Segment Codes

Setting Up Item Structures

Summary of the Rules for Item Numbers

Entering Inventory Control Setup Information

Sorting Order for Item Numbers

Setting Up Account Sets

Costing Methods

Setting Up Categories

Setting Up Locations

Setting Up Price Lists

Defining Price Lists

Adding Items to Price Lists

Setting Up Contract Pricing

Setting Up Inventory Item Records

Adding Inventory Items

Non-stock Items

Items with Serial Numbers

Alternate Items

Adding Reorder Information

Assigning Items to Locations

Adding Bills of Material

Importing and Exporting Inventory Control Records

Entering Current an d Historical Data

Entering Current Item Quantities and Costs

Entering Sales Statistics for Current and Previous Years

Using Multicurrency Accounting in Inventory Control

Entering Transaction Statistics for Current and Previous Years

Where To Now?

Before You Begin

Using Inventory Control with an Internet Browser

Access Restrictions to Inventory Control

Overview of Inventory Control Setup

While You Work

Guideposts to Inventory Control Information

Using Finders

Finding Additional Information

Finding Multicurrency Information

Setting Up an Inventory Control System