That workflow is much more in sync with everyday work practise, except your “Available Qty” would under common (every day) usage be referred to as “Qty on hand”.
I agree, a stocktake report - based on Qty on hand (unsold) plus Qty to deliver which should equal Inventory on the shelf - but the periodic requirements of that report shouldn’t dictate (dominate) day to day inventory management.
So if the previous Inventory Items tab remains the accounting point (perhaps with a changed title) and then if a business activates either the Goods receipt and/or Delivery Note tabs then those documents would activate an inventory physical point tab. so both views are catered for.
Quantity on hand: The total number of stock-keeping units (SKUs) that are physically located in the warehouse location at the current time. This includes items that are already allocated to fulfilling production needs or sales orders. So, this number may differ from the quantity available total.
Quantity available: The total number of stock-keeping units (SKUs) that are currently available for use in filling a new order internally or externally for purposes such as production or distribution. This quantity does not include items already allocated to other orders or items that are in transit from a supplier.
So yeah, I will replace Qty on hand column for Available qty and Qty on hand will be available in some stocktake report.
One argument could be made is that if business doesn’t use Goods Receipts tab, then Available qty will be the same as Qty on hand in which case I could call the column just that.
@ismail I’m still calibrating terminology and looking for what feels right. Anyway, I’m working on incorporating Purchase Orders and Sales Orders into inventory quantity equation which will allow to set up min. stock levels etc.
It would be easier if it was possible for the user to select what entry affects the inventory in what way.
Scenario 1: For companies who use Sales Order to identify Qty to deliver and Purchase Order to identify Qty to receive.
In this case, Sales Order will + Qty to deliver. Sales Invoice will - Qty to deliver, - Qty on hand. (If delivery note for the same not made earlier). Delivery Note will - Qty to deliver, - Qty on hand. (If Sales Invoice for the same not made earlier). Purchase Order will + Qty to receive. Purchase Invoice will + Qty on hand, - Qty to receive. (If goods receipt for the same not made earlier). Goods Receipt will + Qty on hand, - Qty to receive. (If Purchase Invoice for the same not made earlier).
This method is useful when a company provides both goods and service. For example a company may need to service and return items free of charge for goods returned during a guarantee period. In such situation they may need to make goods receipt and delivery note without making a purchase invoice or sales invoice. These goods may be returned as it is or maybe disassembled to various inventory items.
Scenario 2: For companies who use Sales Invoice to identify Qty to deliver and Purchase Invoice to identify Qty to receive.
In this case, Sales Invoice will + Qty to deliver. Delivery Note will - Qty to deliver, - Qty on hand. Purchase Invoice will + Qty to receive. Goods Receipt will + Qty on hand, - Qty to receive.
Yeah, I’ve already thought of this. But it’s not as simple.
If you want Qty to receive to be increased by purchase order, you still have to somewhere keep track what you have ordered and what has been actually invoiced. So supplier doesn’t send you bogus invoices for goods you have never ordered/received.
Then you start thinking of columns such as Qty on order, Qty invoiced etc. And before you know it, you have inventory tab with 10+ columns nobody can really wrap their head around.
Your solution to pick invoice or order (based on what was entered earlier) is not going to work. You might put in 1 order and receive 4 deliveries and 2 invoices. It will just fall apart.
I definitely want to incorporate orders into inventory so minimum stock levels can be implemented properly. I have a few ideas which are less intrusive.
Now i understand the difficulties being a developer.
What about the reference number then? The user needs to make sure the goods are received or delivered against the same reference number which can track. I might be wrong but thats just my idea. You as a developer is the one who knows what can or cannot be done. So i will leave that to you.
A problem with that approach is that suppliers don’t always use your reference numbers, as they have accounting processes of their own. And if you are small and they are big, they aren’t likely to follow your instructions. The same thing can happen when selling. Some customers are big enough to have leverage to force you to use their reference numbers on sales-related documents (or lose their business). They care nothing for what it does to your accounting processes.
@lubos, thats great work, how did you got so much space in inventory tab. . ok but will there be still automatic back_order and negative qty in hand ?.
@lubos - currently airport hopping so not able to download, but what you have described via 17.6.31 sounds ideal - now the Inventory Items tab will “really” talk to the user. Thanks for listening.
Truth that hurts so badly, in Malaysia, Some big companies’ documents put ‘Your reference’ and ‘Our Reference’ but rarely in use. Even they used, they might have redundant or jumbled up the reference codes with other documents for the same content.
I agree. but as i said its the user who needs to make sure of it. not able to do and not doing are two different things. also, small companies are always greater in number than big companies so for the majority of consumers its achievable.
Whilst I have an understanding of the points put regarding Purchase/Sales Orders inclusion I am not a supporter of their direct inclusion into the accounting inventory system.
Accounting systems are there to record the certainty of real events, those that actually happen, not the possibility of an event, where the actual outcome of a particular processed Order can be somewhat different from the initial intention as illustrated in examples provided by others above.
Orders are part of inventory planning - not inventory financial recording. Perhaps Inventory Items could be the basis for a non-accounting inventory planning tab/report.
However, i prefer the previous Inventory Item Layout with Inventory Quantity Column and Inventory Amount Column.
It was way simpler where i could get my Purchase and Sales invoices in one page stacked correctly as stock in and out.
Also it was easy for me to find the serial numbers of the products in the search bar which is not at all possible now.
this is great, but please let me add to it something . i have purchased 100 boxes of Dispo Van, inventory will say 100 then i am selling 20 inventory will show 80 balance, then i am purchasing another 50 boxes, how will i add these 50 boxes in inventory. some easy way out there.
. ok but will there be still automatic back_order and negative qty in hand ?.