Business Stock Configuration

Use this screen to manage stock management settings for the business.


Use BOMS?

Click on the box to allow the building of Bills of Material (BOMs). If you are only purchasing items for resale it is unlikely you need the BOM feature.

Bills of Material represent a receipe to manufacture a finished product or sub-assembly. A BOM is defined by a list of components and/or sub-assemblies and their relevant quantities. A standard cost for the completed item is calculated.

A Works Order for a quantity of product will automatically post the relevant stock movement transactions using the BOM.

Stock Valuation

Select a stock valuation method. If you are using BOMs then Standard Cost must be selected. For more information on stock valuation methods see Stock - Configuration and Stock Types

Standard Cost is a valuation method based upon using a pre-determined cost for each element of cost. When a stock transaction takes place the associated value is based upon the standard cost set for that component. Even when say the purchase of a component is at a different unit price to the current standard cost, the stock value is still based upon the standard cost and any difference is posted as either an income or expenses account.

FIFO (First In or First Out) valuation is based upon the In Stock quantity representing the latest purchase or manufacture cost.

Average Cost valuation is based upon the average purchase or manufacturing cost over the accounting period.

If you are unsure as what valuation method to adopt you are strongly recommended to consult your advisor.

Allow Negative Stock from Works Order?

Click on the box to allow negative stock quantities from Works Order transactions.

Will complete Works Order stock movement even though the system available quantities may be a negative as a result. If this box is not ticked the system will issue a warning and not process the transaction.

This feature will be helpful where multiple users are responsible for different aspects of stock management, and entering information may not necessarily be sequential and at a particular moment system data may not be consistent with the physical reality.

Allow Negative Stock from Sales Order?

Tick the option to allow negative stock quantities from Sales Order reservation transactions.

Will allow the reservation of a sales order even though the system available quantities may be a negative as a result. If this box is not ticked the system will issue a warning and not process the transaction.

In effect any negative reserve balance represents quantities to be made or purchased.

Whilst reserved stock remains negative it is not possible to despatch a negative stock.

Next PO Number

The next PO (purchase order) number to commence an automatic sequence may be set here.

PO Number Prefix

If a prefix (such as a year number or some other) is desired then enter it in this box.

This prefix will appear on all future PO's until changed.

Next SO Number

The next SO( sales order) number to commence an automatic sequence may be set here.

SO Number Prefix

If a prefix (such as a year number or some other) is desired then enter it in this box.

This prefix will appear on all future SO's until changed.

Customer PO Required on Orders

Tick this box to force users to enter a purchase order reference in the Customer PO Box when entering a new sales order.

The system will prevent a sales order being submitted and stored if a PO is missing.

Quote Policy Text

If Quote Policy Text is to appear on quote documents then enter the text in this box.

It would be usual to put a time limit, say 20 working days for quote to remain valid.