to search.
Use the following inputs to control inventory related functions within Sales Orders:
1. Allow Backorders
Indicate whether backorders are allowed in the sales orders entry programs and eCatalog and eStorefront. If N is entered, backorders are not allowed and the backorder input in the sales orders entry programs is skipped. If Y is entered, backorders are allowed depending on how the Allow Backorder flag is set for the customer in the Customer F/M. Press Enter (CR) to initially default to unselected.
eCatelog Note: If the AT module is used and this field is changed, all item master records must be updated on the eCatalog database. Rather than creating all of the item master log records required for this from here, the system displays a message indicating to run the eCatalog Initialization Program for item master records, which builds all the item records into the log file and could be done at some more convenient time.
2. Auto Reprint of Back Orders
Indicate whether backorders should automatically be added to the Order Reprint File after the Daily Sales Register has been run. Press Enter (CR) to initially default to unselected.
3. Default Price
Enter the hierarchy of the order in which the system is to look for prices for an item when determining the default price. When setting up this flag, the user must determine the order in which prices should be selected. Valid entries will be any combination of:
The price search program is what the system uses to find the default price. The default price is found based on a number of factors including the quantity being sold, the selling and pricing units of measure on the sales order line item, the types of prices available for the item being sold as well as a number of system control flags.
4. Default Cost
The cost entered her is used as the default cost in the Sales Order programs. The GL Cost of Goods Sold and the Inventory Asset accounts are affected by this cost. This cost is also pulled and used in the gross margin calculations. This cost is posted to Sales Analysis. Cost of Goods Sold, the expense related to inventory, is often the largest expense on the income statement. As a result, improper accounting for inventory may have a major effect upon other reported financial statement items.
Enter the cost to use as the default cost in the sales orders entry programs. Options are:
M - Manual cost from the Item File: This method is typically used in a manufacturing environment and results in an anticipated cost of producing and/or selling a unit. All manufacturing costs are charged to cost objects at standard cost. Used when detailed or actual costs per unit are not used for management purposes. Costs are used to reflect the transfer of units between work in process to finished inventory or from finished inventory to cost of goods sold. The item’s manual cost is tied to the item, not a warehouse or specific vendor. Both Item and Vendor manual costs are completely user defined. Changes to manual cost must be performed by the user.
A - Average cost from the Inventory Cost/Price File. The average unit cost computed is affected by the number of units purchased at various costs. The total of the number of units purchased plus the units on hand prior to the purchase is divided into total cost of goods available for sale. The cost of goods sold is stated at an amount less than obtained using LIFO but more than obtained under FIFO.
L - Last cost from the Inventory Cost/Price File. This method is typically used in a manufacturing environment. Also known as the replacement method, this option returns the cost of replacing inventory at current market prices. Last cost is not vendor specific. If an item is purchased from multiple vendors (primary, secondary, etc), it is important that as many vendor and item combinations as necessary are set up in the PO Vendor/Item F/M program, otherwise item values will be pulled which may not be desirable.
F - FIFO (first in first out) cost from the Inventory Cost/Price File. The costs of the first goods purchased are the first costs charged to cost of goods sold. Inventory consists of the newest units and their related costs. Balance sheet amounts for inventory are likely to approximate current market values. Offers a more precise matching of historical cost of goods sold with sales revenue.
O - LIFO (last in first out) cost from the Inventory Cost/Price File: The costs of the last goods purchased are the first costs sold. Item costs are normally closer to replacement costs and selling prices are frequently based on replacement costs. LIFO results in the largest cost of goods sold because the newest costs that are charged out of inventory are also the highest costs. Offers a more precise matching of historical cost of goods sold with sales revenue.
Enter (CR) initially defaults to the default cost set up in the Inventory Static Control Record.
5. Default CM Terms Code
Enter the terms code to use as the default terms code in Credit Memo Entry. The entry must be a valid AR terms code. Entering a valid terms code displays a partial description. Press F2 or
to search.
6. Default Cash Customer
Enter the customer number which is used as the default cash customer in Counter Sale Entry. The entry must be a valid customer. Entering a valid customer displays a partial description. Press F2 or
to search.
7. Ser/Lot Cost
You now have the ability to cost serial and lot items by the system cost (costing method for the module). The feature provides for GAAP compliance. Select from A-Averaged Actual or S-System Cost. The default setting for each Static Control F/M is A-Averaged Actual. The net result of selecting S-System Cost is that serial/lot items will be costed like non-serial/lot items.
8. Min. Allowable G.M.%
Enter the minimum allowable gross margin percent (+/-999). If the gross margin percent for the item falls below this number during quote, order, invoice or credit memo entry, a message is displayed and the user may continue. Press Enter (CR) to initially default to zero.
9. Max. Allowable G.M.%
Enter the maximum allowable gross margin percent (+/-999). If the gross margin percent for the item is above this number during quote, order, invoice or credit memo entry, a message is displayed and the user may continue. Press Enter (CR) to initially default to zero.
10. Display G.M.%
Enter whether Q-to only show the gross margin percentage during quote entry, A-to show the gross margin percentage in all the sales orders entry programs (except Counter Sale Entry), or N-never show the gross margin percentage. Press Enter (CR) to initially default to unselected. If Y is entered and the gross margin needs to be displayed in Counter Sales, see the technical notes in the Counter Sale Entry Program.
Indicate whether to print the component items of a bill of material item on the pick ticket. If the item’s BOM/Formula flag is set to B in the Item F/M, the system prints the component items used to produce the bill of material item on the pick ticket. Press Enter (CR) to initially default to unselected.
Indicate whether to print the component items of a bill of material item on the invoice. If the item’s BOM/Formula flag is set to B in the Item F/M, the system prints the component items used to produce the bill of material item on the invoice. Press Enter (CR) to initially default to unselected.
13. BOM Update
Indicate whether to update the component items during the SO entry programs. If this flag is set to Y, the system checks the Update in SO flag of the MC BOM Entry Program to see how to handle assembling to BOM component items in SO. If this flag is set to unselected, BOM items are produced through manufacturing, regardless of the value in the Update in SO flag. Press Enter (CR) to initially default to unselected.
Enter whether you want to post A - actual total of LIFO/FIFO or W - weighted average. Press Enter (CR) to initially default to A.
This input enables users to have all available items committed on sales orders or leave one in inventory. The Commit Backorder program will look at this field when calculating the amount available to be committed to backorders. Press Enter (CR) to default to unselected.