An item’s available quantity is the On Hand quantity - Committed quantity.

The average for each item is the sum of the usage of the periods displayed divided by the number of periods displayed.

A purchase order document which contains open items that were not received on the original shipment. The items on the document are backordered.

Branches are created/maintained through System Management Branch F/M. Branches may be referred to as stores or profit centers. The length of the branch is two digits (01-99).

Buyer codes are created/maintained through Purchase Order Buyer Code F/M. The buyer code is used to track an authorized purchase of goods on a purchase order.

Catalog items are goods that are provided by a vendor but are not carried in inventory. A record tracking price information exists in a catalog file.

Items whose percentage of sales are so small that an investment in inventory cannot be justified. Dead stock items are discontinued for replenishment.

GL departments are used to track revenues and expenses by division. The GL department is imbedded in the G/L number for posting purposes. General ledger financial reports may be printed by department.

A direct shipment is the shipment of goods from the vendor to the customer, as opposed to, a warehouse shipment where the goods are shipped by the distributor to the customer. This is also referred to as a drop shipment.

Freight on board indicates at what point freight is charged. If FOB is destination, the seller bears the freight cost. If FOB is shipping point, the buyer bears the freight cost.

The cost associated with the transportation of goods by means of a carrier.

Freight factor is the means to distribute the freight cost between the line-item on the order. The freight factor is applied to the cost of line-items during the Receipt Register. Freight Factor options include: to divide the freight by the total units, to divide the freight by the total pounds, to divide the freight by the dollar amount, or to not factor the freight at all.

A GL number that exists on file is valid. Valid G/L number’s are set up through the general ledger Account F/M program. General ledger account numbers are user-defined and are used throughout the FACTS system for posting purposes to GL. For more information, refer to the Account F/M in general ledger.

A GL posting table that exists on file is valid. Valid GL posting tables are set up through the IC GL Posting Table F/M program. The length of the GL posting table is up to three characters (alphanumeric, user-defined). Each customer is assigned to a GL posting table for purposes of posting purchase order transactions to general ledger. For more information, refer to the GL Posting Table F/M in inventory control.

The warehouse that originate the order is the initiating warehouse.

The interchange number is a means of identifying an item by other references other than the item number. The interchange number is used in inquiries and entry programs throughout the Inventory Control, Purchase Order, and Sales Order modules.

Item classes are created/maintained through Inventory Control Item Class F/M. Item classes are used to group items.

Item price classes are created/maintained through Inventory Control Item Price Class F/M Program. Item price classes are used as a way of categorizing items for pricing purposes.

Journal numbers are used for separating journal entries in general ledger by type of entry (example: sales, payroll, receivables, etc.). Each module determines the journal number to post the transactions of that module to in general ledger.

The costing method normally used in a manufacturing environment that is considered the replacement method. Last cost reflects the cost of replacing inventory at current market prices. Last cost is used when jointly produced output proportions are changed from a previously established mix of components. Joint cost allocation is based on the change in costs arising from a change in the mix of these components. Since inventory is valued at replacement cost versus actual cost, reconciliation of Inventory to the GL is often impossible with this method.

Lead time is the number of days from the date a purchase order is placed for an item until the date the item is received. Average lead time is calculated as the current average lead time plus the lead time from the two most recent receipts divided by 3. An item will be flagged for lead time if the new average is 50% less or greater than the previous average lead time.

An item which is flagged as a lot item through the Item F/M is one which when received or sold must be assigned a lot number per unit. Multiple units may be assigned to the same lot. Examples of lots are reels (wire, etc.) or lots in lumberyards or brickyards.

The costing method normally used in a manufacturing environment that is considered the standard method. Manual cost reflects an anticipated cost of producing and/or selling a unit. All manufacturing costs are charged to cost objects at standard cost. Every time a unit is produced, its standard (manual) cost is entered. Standards are pre-established per cost object, predetermined (standard) hourly rates are established for each job. Manual cost is used often by companies that use mass-production methods. Standard costs are used to reflect the transfer of units between work in process inventory to finished goods inventory and from finished goods inventory to cost of goods sold. Detailed (actual) costs are not kept per unit and not normally used for managerial purposes. Since detailed costs are not kept per unit, reconciliation of Inventory to the GL is often impossible with this method.

Refers to items that are not replenished but may exist in the warehouse, for example items that may have been special ordered but were not purchased by the customer.

Purchase orders which have been completely received and are no longer open or backordered purchase orders. A past PO is stored in a separate file from open PO’s once completely received.

The date the vendor indicated the merchandise of a PO would be in the user’s warehouse (received).

The date the merchandise is delivered to the user’s warehouse.

The date the users request the merchandise be delivered to their warehouse.

An item which is flagged as a serial item through the Item F/M is one which when received or sold must be assigned a serial number per unit.

The carrier for the freight. The method of transportation for the purchase order.

Ship-From records are set up through Purchase Order Ship-From F/M. Purchase orders can be sent to the vendor’s address stored in the AP Vendor File or to a different billing and shipping (warehouse) address.

A sales order which is tied to an associated purchase order is considered a special order.

Temporary items are goods offered to your customer as a value added service but are not carried in inventory. They do not exist in the item file.

Two-character codes that represent different types of payment terms and are used in the ending routines of most Purchase Order Entry Programs. Terms codes used in Purchase Order programs are created and maintained the Inventory Control Item F/M.

A uninventoried item is an one that exists in the item file but is not kept in inventory, for instance supply items used internally by the company.

The rate of usage (sales, transfers out, manufacturing components) for a stocked item in a period (month, i.e., the usage rate is the quantity of an item used in a month) Usage rates form the basis for replenishment control calculations (e.g., order point). For highly seasonal items the usage rate is the anticipated average usage of the upcoming 3 periods based on those 3 periods as of a year ago. For (low) seasonal items the usage rate is the anticipated average usage of the upcoming 6 periods based on those 6 periods a year ago. For non-seasonal items the usage rate is calculated as the average usage of the last six periods.

Optional instructions, memo lines, notes recorded on a specific vendor available for inquiry and reporting. Vendor notes are entered through the Vendor Inquiry program.

The vendor-item number is the code number that the manufacturer uses to identify this item. This number may print on the purchase order in addition to the user’s item number.

The space allocated for the storage of merchandise.

A warehouse shipment is the shipment of goods from a warehouse to the receiving customer.