Inventory

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Overview

In your BOM, you will notice that in the side bar, we have separate pull downs for INVENTORY and ITEMS LIST.

BOM - SideBar - Inventory & Menu Items
BOM – SideBar – Inventory & Menu Items

INVENTORY : This is where you create INVENTORY ITEMS that you can buy, into one or many stock locations, sorted by INVENTORY CATEGORY. When you use the DOCUMENTS menu to purchase these INVENTORY ITEMS, the cost price and stock on hand quantity will be updated. This is also where you can create a PRODUCTION SHOP to combine different INVENTORY ITEMS into something new ( for example, you may keep eggs, flour and butter as raw materials, that you turn into cakes that you can transfer and / or sell. More on PRODUCTION SHOPS later ).

ITEMS LIST : This is what you actually SELL on your POS APP, WEB APP, MOBILE APP. Sometimes I will refer to these as MENU ITEMS ( just to confuse you ). When you sell an ITEM, that can be the end of the story. However, if you want to do STOCK CONTROL and COSTING, you would “link” your MENU ITEM to an INVENTORY ITEM/S via a RECIPE. Your RECIPE could be a simple 1-to-1 relationship or it could be a very complex ratio with multiple levels. More on this later.

When you go down the STOCK CONTROL route, you need to put a bit of planning into how you are going to SELL and BUY, as well as the relationship between the INVENTORY ITEM/S and the MENU ITEM/S.

I will probably do a FAQ just on this concept.

LIST INVENTORY CATEGORIES

Navigate to BOM / Inventory / Categories.

These are a nice way to keep your “stock controlled” INVENTORY ITEMS grouped together.

BOM - Inventory - Categories
BOM – Inventory – Categories

This is from my demonstration BOM, so is set up by type of stock control. In the real world you would more likely be using something like :

BEER CTN

BEER KEG

SPIRIT BOTTLE

BULK MEAT KG

This way you can keep all your similar INVENTORY ITEMS together. I have also included the “stock keeping unit of measure” in the title. It will make it a lot easier for you later on if you do these things 🙂

As a side note, you have noticed that I have used CAPITALS. As we progress through this discourse you will also note that my INVENTORY ITEMS are also all in capitals. My MENU ITEMS however, are all “Title Cased“. Often a MENU ITEM and an INVENTORY ITEM will have the same name. I do not want all capitals on receipts or ordering interfaces ( it is rude to “shout” ), so the INVENTORY gets all the capitals to make it stand out for me. It also feeds any OCD tendencies.

Having said all of that, from this screen we can see a list of our INVENTORY CATEGORIES, we can <refresh> the view, we can <ADD> a new one, we can <Remove> one, we can also go to the <Archive> and add them back. We can also see how many INVENTORY ITEMS we have in each INVENTORY CATEGORY. You can also jump straight to a list of INVENTORY ITEMS by clicking on the number in the “Count” column.

ADD INVENTORY CATEGORY

Navigate to BOM / Inventory / Categories and click <Add>.

This is a very complex screen, so be sure to pay close attention…

BOM - Inventory - Categories - Add
BOM – Inventory – Categories – Add

Enter the name you want to use and click <Save>.

LIST INVENTORY ITEMS

Navigate to BOM / Inventory / Inventory Items.

Bom - Inventory Items - List
Bom – Inventory Items – List

Here we have a list of all INVENTORY ITEMS.

I have a number of controls available across the to of the screen :

  • Refresh : the view.
  • Add : a new INVENTORY ITEM.
  • Delete : the selected INVENTORY ITEM/S.
  • Filter : Create a complex filtered view.
  • Import : Bulk import a list of new INVENTORY ITEMS.
  • Location : Filter by Stock Location.
  • Category : Filter by INVENTORY CATEGORY
  • Recipe Availability : Filter by if RECIPE.
  • Search : For any partial string.
  • Archive : To list any deleted INVENTORY ITEMS.

We can also see some basic information about our stocks.

A more detailed view can be obtained by clicking on the INVENTORY ITEM.

INVENTORY LOCATIONS

Navigate to BOM / Inventory / Locations.

BOM - Inventory - Locations
BOM – Inventory – Locations

In order to manage your INVENTORY ITEMS, you have to have at least one INVENTORY LOCATION into which you put your INVENTORY ITEMS. This could be a physical, virtual or accounting place. How you set this up depends on your business model.

You could have a nice & simple single LOCATION.

Multiple LOCATIONS could be the same physical place, but you want to keep your INVENTORY ITEMS separated for management purposes.

You can also use INVENTORY LOCATIONS for PRODUCTION SHOPS and STOCK TRANSFERS.

Your POS APP will use an INVENTORY LOCATION as a default.

In a multi store setup, you could have a warehouse location and each store has its own location.

  • Each POS/WEB/MOB APP is linked to a STORE.
  • But a  STORE doesn’t have to have a POS/WEB/MOB APP.
  • Each STORE is linked to an INVENTORY LOCATION.
  • Every INVENTORY LOCATION is available to every STORE.
  • Every INVENTORY ITEM is available to every INVENTORY LOCATION.
  • However, an INVENTORY ITEM will NOT appear in an INVENTORY LOCATION unless it is transacted in some way ( ie produced, transferred, purchased, sold, written off, etc )

Does an image of this relationship help ?

BOM - Inventory - Relationship
BOM – Inventory – Relationship

PRODUCTION SHOPS

Navigate to BOM / Inventory / Production Shops.

BOM - Inventory - Production Shops
BOM – Inventory – Production Shops

You can turn INVENTORY ITEMS into different INVENTORY ITEMS in your PRODUCTION SHOP.

So you might buy into stock INVENTORY ITEMS called EGGS, FLOUR and BUTTER by entering SUPPLIER INVOICES. This will update the COST and STOCK ON HAND. You can then use your PRODUCTION SHOP to turn them into SPONGE CAKE ( with an associated COST & QTY ) and transfer to another STOCK LOCATION or sell them.

Each PRODUCTION SHOP should be called something that makes sense to you and be linked to an INVENTORY LOCATION.

More on this in PRODUCTION RUNS.

About the author: Tim Atkinson