Aviation Specialties Unlimited

4. Inventory Management

Overview

▪ The following screens illustrate the following capabilities of the Inventory System:

▪ Sites (Boise, L3, Repair)

▪ Bin- Rows, Racks and Shelves

▪ Inventory Items

▪ Inventory Costing (Standard Costing)

▪ Purchase/Receipt of Inventory Items

▪ Transferring Inventory between sites

▪ Physical Inventories

▪ Reporting

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Aviation Specialties UnlimitedWarehouse Setup

March 2018

Overview of Warehouse Setup

▪ The following items have been setup in the inventory module:

▪ Sites

▪ Bin

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Sites

▪ Boise (Main Inventory Site)

▪ L-3 – Remote Site for material shipped to vendor to be returned

▪ REPR – Site to be used for receipt of items to be repaired

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Inventory Module Main Menu

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Site Setup

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Warehouse Bin Setup

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Inventory Items

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Inventory Items – Setup Inventory Item

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Inventory Item – Quantities Tab

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Inventory Item – Cost Price Tab

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Inventory Item – OM Accounts Tab

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Inventory Item – Item Defaults Tab

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Aviation Specialties UnlimitedInventory Transactions

Overview of Inventory Transactions

▪ The following transactions can be processed with the inventory:

▪ Purchase Order/Receipts

▪ Receipts (Not Demonstrated – DR: Inventory CR: Accrued Liability – No Purchase Order)

▪ Issues

▪ Transfers (Between Sites and Bins)

▪ Adjustments (Write off, Damaged etc.)

▪ Physical Inventory Adjustments

▪ Order Management (Sales COGS relief of inventory)

▪ Production Orders

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Aviation Specialties UnlimitedPurchase Orders/Receipts

Overview

▪ The following screens show the creation of Purchase Order to acquire inventory

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Purchase Order Module Menu

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Setup and Print Purchase Orders

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Purchase Order Form

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Receipt of inventory against Purchase Order

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Whse Bin Loc and Unit Cost Changed from PO amount. The cost change will generate a Purchase Order Variance for difference between standard cost and actual cost.

Release the receipt

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Accounting Entry Posted – Note Purchase Price Variance

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DR: Inventory $28,800DR: PPV Acct 4830 8,700CR: Accrued Liability 37,500

Inventory Trial balance reflecting inventory activity

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Aviation Specialties UnlimitedIssues – To Projects

Issues Overview

▪ Issue transactions may be entered in Inventory module. Typical usage is to issue inventory to a project resulting in expense to project and credit to the inventory.

▪ Production Order will also generate issue transactions as material is charged to production orders. This is illustrated in the manufacturing section of the document.

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Issuing Inventory to a project

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In the above example 10 items have been issued to project SO0014 resulting in the following entry:

DR: MaterialCR: Inventory

See actual entry on following screen

Journal Entry posted

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Inventory Trial balance reflecting activity

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Aviation Specialties UnlimitedInventory Transfers

Overview of Transfers

▪ The system provides the ability to transfer inventory items between sites and/or bin locations. There are two types of transfers:

▪ One Step – Relief and Increase at sites and bin happens immediately.

▪ Two Step – Relieve occurs upon initial transfer putting inventory into account Inventory-In Transit. Upon receipt at destination location, In-transit inventory is relieved and the item is placed into inventory. Two Step is not demonstrated.

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Transfer from Boise Bin AA1 to L-3 Bin RFR 5 Units

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Journal Entry posting

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No general ledger impact as the Debit and Credit are to the same account

Inventory at Boise and L-3 Sites

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Aviation Specialties UnlimitedInventory Adjustments

Inventory Adjustments

▪ Inventory may be adjusted for a variety of reasons including:

▪ Damaged Inventory

▪ Obsolete Inventory

▪ Reason codes are created which drive the adjustments to different General Ledger accounts for tracking purposes

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Adjustment Entry – Reason codes have been mapped to acounts

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Journal Entry posted

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Inventory Trial balance reflecting activity

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Aviation Specialties UnlimitedPhysical Inventory

Overview

▪ The purpose of this section is to demonstrate the processes to take physical inventories using the Dynamics SL Inventory module.

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Aviation Specialties UnlimitedKey Setup

Overview

▪ The following slides show several key setup areas that will affect the taking of physical inventories.

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Inventory Module Menu – Key Screens for Physical inventory

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Sites – Inventory is taken by “Site.” The following screen illustrates the required setup

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Warehouse Bin Locations – Sites may be broken down into Warehouse Bin Locations

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Inventory Item – Inventory Items may be classified as A, B or C items

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Cycle Count ID may be

assigned providing ability to

do partial inventory. For

example, only if L-3

Inventory Items are to be

counted.

The Physical/Cycle tab of IN Setupcontrols physical inventory operations.

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The above setup items represent other

key setup information required to do

physical inventory. Inventory

Adjustments will be recorded in account

4840 and Subaccount 00-00

Aviation Specialties UnlimitedFull Physical Inventory Process

Physical Inventory Process

▪ In the following screens, the process to take a physical inventory is demonstrated. The process may be summarized as follows:

▪ Select Items or Locations to Count

▪ Print Count Sheets and/or tags

▪ Record Physical Inventory Counts

▪ Update Inventory with Adjustments

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Inventory Module Menu

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Physical Inventory

Order:

1. Generate

Inventory Tags

2. Physical Count

Entry

3. Physical

Inventory Review

4. Reconcile

Physical

Inventory

Other options for physical inventory tags.

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Other options for physical inventory tags.

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Step 2 – Print Tags or Count Sheets -The Physical IN Count Sheets report prints count sheets to be used for recording the physical counts of items in your warehouse. Alternately, you can print tags instead of count sheets.

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Physical Inventory Count Sheet

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Physical Inventory Tag

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Physical Inventory Tag

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Step 3- Enter Counts - Physical Count Entry may be used to enter physical count quantities for a

physical inventory.

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Book quantities are displayed. As tags are entered, the line status will change to Entered

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Item counts can be changed based upon physical counts.

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Step 4 – Review Physical Inventory Counts -Physical Inventory Review is used to update physical inventory status.

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As items are entered the “Status” changes to indicate the current condition of the physical inventory items

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Counts may be entered in this screen also. Line status also changes as items are entered.

The count information is set to a status of Balanced once the inventory quantities have all been entered

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Step 5 – Book Adjustments - Use Reconcile Physical Inventory to create adjustment batches that can be reviewed and released in Adjustments. These adjustments will update the Inventory database with the book-to-physical quantities. Click on begin processing to process the physical inventory adjustments.

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Inventory Adjustment Batch is created (Seen in Inventory Adjustments Screen)

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These are the items for which physical inventory quantity was different than book quantity

General Ledger Module Menu

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Post Inventory adjustment to the general ledger.

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Journal entry batch created by adjustment process.

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Inventory Trial balance Report

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Inventory Trial Balance

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Aviation Specialties UnlimitedReports and Inquiry

Inventory Item Lookup

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Availablity

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Inventory Status Inquiry

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Inventory Transaction Inquiry

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