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Inventory

Inventory Overview

With the optional inventory module EULANDA® supports you in carrying out the inventory with the following functions:

  • Each physical inventory - whether year-end closing or interim inventory - is created as a separate transaction and can be viewed again at any time.
  • The current stock of each stock item (target quantity) is recorded for each physical inventory. A difference list can be printed together with the stocks (actual quantities) determined during the physical inventory. The list can also be output at any later time.
  • Even during the inventory, this list helps you to recognize and correct input errors early on.
  • During the main physical inventory phase, the warehouse is blocked for other processes, such as delivery notes and goods receipts, so that stocks are not changed accidentally.

The central point of contact for all tasks relevant to physical inventory is physical inventory management in the area of warehousing. From here, an inventory is started and completed, inventory valuation lists are printed and target/actual comparisons are carried out. Inventory data (count lists) is entered under Inventory documents, also in the Warehouse Management area.

inventory management

 

Inventory process

The inventory process in your EULANDA® ERP system is divided into four phases:

Preparation for physical inventory is primarily an organizational matter and not directly a program function. During the main phase, the stocks are determined and entered in the system. The optional (dashed) post-processing phase still allows small stock corrections after the main phase has been completed. The follow-up is again an organizational matter.

The individual phases are described in more detail below. A flow chart for each phase can always be found on the left-hand side. For better orientation, the following and previous phases are also displayed. The current phase is highlighted in yellow and subdivided more precisely. Optional points are bordered with a dashed line.

 

Inventory preparation

You have already taken the first important step towards correct planning by working through this chapter and understanding how your EULANDA® ERP system can support you in carrying out the inventory in your company.

Planning the physical inventory involves determining a suitable point in time. When using an inventory management system with a complete goods movement journal, such as EULAND®, the legislator allows - depending on the form of company - a certain scope in the choice of the time of the physical inventory. Thus, at a point in time before the end of the fiscal year, the inventory can take place in EULANDA® with recording of all physical quantities. At the end of the fiscal year, a simple form of inventory is sufficient, in which mainly the stock figures currently available in EULANDA® are transferred (see Transfer old stocks below).

You must decide which form of inventory you can or may ultimately choose in order to comply with the laws and regulations that apply to you. If you have any questions, you should also contact your tax advisor.

A further planning step relates to the execution of the count. We recommend carrying out the count separately according to premises and, if necessary, according to storage locations (shelves etc.). This is the only way to ensure that no quantities that are in the wrong place, for example, are skipped. EULANDA® offers you the possibility to enter each room separately on a separate inventory document and thus increases the transparency of the entire inventory.

Using the optional Piccolink radio server module, it is possible to perform the inventory completely with the mobile radio scanner from NordicID or to combine it with manual counting. The acquisition costs are offset by enormous time savings (personnel costs, low downtimes of the normal business process) and the largely avoidance of input errors.

Informing employees

A point that is usually underestimated is to adequately inform the employees about the effects on the respective work processes. The ideal case is that during the inventory all employees, who are not entrusted with the counting or input of the inventory data, remain at home, all orders are completely completed or any non-inventory workflow is stopped in the company is probably only rarely to be found nowadays. More often it will be the case that stock withdrawals have to be made until shortly before the inventory in order to fulfil urgent customer orders.

Among other things, the following points must be communicated to the employees concerned:

  • Early notification of the time of the inventory so that important processes can be completed and customers are also informed in good time of possible delays
  • During the main physical inventory phase, the warehouse account is blocked and no delivery notes/goods receipts can be created or posted. If this is still attempted, the

employee the following or similar error message:

Advice
The order could not be converted
Warehouse account 1000 is currently blocked for warehouse postings.

The lock has the following reason(s):
- At the moment the inventory 20049 - February - warehouse is carried out.
No stock movement can be carried out during the physical inventory.

  • However, orders can be entered, posted and printed.
  • When the physical inventory is completed, all storage transactions that take place before the physical inventory are considered final. This means, for example, for a delivery note that was posted before the physical inventory, it is assumed that the corresponding goods have actually left the warehouse. Accordingly, it is no longer possible to cancel such a delivery note.

If this is attempted, the following or similar error message appears:

 

Advice
The warehouse posting could not be reversed
Reversal of warehouse posting record 1869 is blocked

 

The lock has the following reason(s):
- Stock postings that were made before the last physical inventory cannot be reversed.

  • The flow of goods in such a delivery note can only be reversed by creating a credit memo.
  • An order for which a posted delivery note already exists can no longer be entered. A supplementary order or a credit memo order would then have to be written.
  • If you usually enter further orders in your business process (and cancel the existing delivery notes), you must check which orders could be affected by this before the physical inventory, and these must then be reset to Enter status before the physical inventory.

 

Checking the status of delivery notes

To illustrate the problem, here is a short description of the usual delivery process in EULANDA®: An order that is converted into a delivery note (and thus released for delivery) is first given the status reserved. The warehouse stock is temporarily reduced so that the corresponding quantity cannot be used by another order. However, the goods themselves are still in stock. The delivery note is then posted when the goods are actually withdrawn. In this case, both the reservation is cancelled and the warehouse is finally reduced in one step.

Since the reserved goods are still in stock, the respective quantities are to be added to the target stock for the physical inventory. EULANDA® therefore saves the reservations in a reservation memory before the inventory and replenishes the corresponding quantities in the goods account. After the inventory, the reservations are restored. During the physical inventory, it may turn out that there is less of an article than originally expected (less than the target quantity). However, if the difference is so large that less stock is available after the physical inventory than was reserved before the physical inventory, the physical inventory cannot be closed immediately. Otherwise the stock would fall into the negative. The corresponding delivery notes could then not be delivered anyway. The following steps are necessary:

  • First, the shortage must be posted - usefully using a separate inventory document.
  • Only then can the inventory be completed.
  • The relevant delivery notes must now be cancelled.
  • Now the inventory can be resumed.
  • The previously posted shortfalls are cleared again.
  • You can now complete the physical inventory.

To prevent this problem, the reserved delivery notes should be checked before the inventory. Firstly, it must be checked whether the delivery note has not already been delivered. In this case, it must be booked. Secondly, it must be checked whether it is due for extradition at all or has only been converted accidentally or has already been done for other reasons. In this case, the delivery note must be cancelled. It may also be necessary to check the associated order. For the remaining delivery notes, consider whether it would not be better to cancel them and convert them again after completion of the inventory. If there are no compelling reasons against it, this is the means of choice - e.g. if the delivery note document has already left the house.

 

Main phase

The actual main phase of the physical inventory begins with the creation of the physical inventory. To do this, choose Create physical inventory in physical inventory management.

Until the physical inventory is completed (due to completion or termination), the merchandise account remains blocked for all warehouse movements that do not affect the physical inventory. This primarily concerns the creation, posting and cancellation of delivery notes and goods receipts. Orders, on the other hand, can still be entered, posted and printed. Invoices can also still be created, provided that the corresponding delivery notes were already posted before the inventory.

When you create the physical inventory, all warehouse stocks are set to zero. This also applies to articles requiring serial numbers. The original stock data is not lost, however, but is only transferred to a separate warehouse account (the so-called inventory account).

If the inventory is not carried out via the transportable barcode radio server, the count lists can now be printed. All articles that have stock at the time of the physical inventory are displayed in the count list. You can print count lists with or without target stock.

During the physical inventory, you can view the original stock figures at any time using the evaluation Target/Actual Quantity Comparison. You can find the old stocks in the Target Quantity column.

If you only want to carry out physical inventory for a subsection of your warehouse articles, you have the option of transferring the old stocks. You can restrict the transfer to certain article number ranges or to certain characteristics from your characteristic tree. These stocks can also be corrected during physical inventory by entering physical inventory documents.

The actual counting of articles should be carried out separately according to premises and storage locations. EULANDA® offers you the possibility to create a separate inventory record for each completed count list. Each document contains an information field in which you can enter the storage bin and/or employee who carried out the counting/entry. This information increases the traceability of the inventory itself. You can view this information in the goods movement journal in the article information system, even after the physical inventory.

You can change the system inventory record documents as you wish. However, the quantities entered are only taken into account in the debit/actual evaluation once the document has been posted (CTRL+B). If input errors are found after posting, you can enter the document again by pressing CTRL+E.

Documents are entered in the Warehouse Management module Inventory Documents. You create new documents with CTRL+N. The entered documents can also be printed. This makes it easy to compare them with handwritten count lists. It also makes sense to file these printouts together with the count lists. A list of all documents belonging to the inventory is available in EULANDA® Inventory Management under Display Inventory Documents. Here you can also see immediately from the color of the line whether the document has already been posted or is still in Enter mode.

Once you have entered all stock values and posted all documents, you can close the inventory. The warehouse posting block is released again. Delivery notes can now be written again. EULANDA® blocks storage processes that were carried out before the inventory. This means that no more delivery notes or goods receipts that took place before the physical inventory can be reversed after the physical inventory. This ensures that the figures determined are permanently correct.

If circumstances arise during the inventory that require the immediate resumption of normal warehousing, EULANDA® offers you the possibility to cancel the inventory. This reverses all entered documents and restores the old warehouse stock. Storage blocks are removed. Once an inventory has been canceled, it cannot be resumed and stock data entered cannot be used again. In this case, you must start a new physical inventory.

 

Correction period

If, after completing the physical inventory, you discover that some of the figures determined are incorrect, you can resume the physical inventory for postprocessing.

To do this, call up the relevant physical inventory from the list of completed physical inventories and select the Resume physical inventory item.

The follow-up phase differs in some points from the main phase:

The warehouse is no longer blocked.
Documents that have already been posted in the main phase cannot be entered any further,
and the physical inventory cannot be canceled during the adjustment phase. A reset to the position before the main phase is therefore not possible.

The changes during the postprocessing phase should be made carefully, since the stocks can also be changed by normal goods movements.

However, the counted quantity displayed in the inventory lists is not changed by normal stock movements, but only by the physical inventory documents.

 

Inventory management (optional)

Physical inventory documents (optional)

The physical inventory documents are part of the optional physical inventory module. This is used to enter the stocks determined during the physical inventory or to make corrections. Outside the physical inventory, smaller stock differences can be posted using the special form of the"interim inventory" document.

  • Any number of physical inventory documents per physical inventory that can be entered in parallel
  • Import of inventory data from Excel
  • Inventory recording via radio scanner (optional)

Input mask for physical inventory documents

The input screen is divided into two main areas: the header area and the item area. The active area is displayed brighter than the non-active part. Many commands - such as Create new with CTRL+N - always refer to the currently active area. You can switch between the areas by pressing CTRL+TAB or by clicking on the respective area.

Create a document

You create a new physical inventory document by clicking on the plus sign under "Physical inventory documents". In the selection box, select the appropriate inventory for which you want to count articles.

Creating a Physical Inventory Document

 

In the header area, assign an external document number and object or whether it is an outflow-accession posting.

You enter the counted articles as in the order. You can search for the article number and the article match. The articles entered appear at the bottom of a list. By clicking on an article in the list, the quantity can be changed or deleted if an incorrect entry has been made.

 

Select an article