Anybody, please help me with the following scenario
I purchase soda in cartons and sell cartons and bottles for retail (1 Carton contains 10 Bottles)
How do I enter products into the Inventory? Is there any way to control the stock in cartons and bottles
I need the system to know the number of Cartons and the number of bottles in the inventory
Have you considered Inventory Kits? Read this guide Use inventory kits | Manager
Create the bottle as an inventory item and create an Inventory kit for the carton (1 Carton contains 10 bottles)
I think this should work well for you.
1 Like
Yes Abeiku Thanks
But I have seen in some other application there is a setting which automatically transfers or adjust the inventory to carton -1 and bottles +10 as and when the 10th bottle is sold
Basic is the purchasing is done by cartons
Search the forum about this issue, @AMM. It has been discussed dozens of times. You can use production orders to convert cartons into bottles, but you need separate inventory items.
Thank You Tut
I searched could not find
I would be thankful if any body can tell me how to create the Production Order for the above scenario
@AMM, the Guide @Joe91 linked covers how to enter production orders in detail. But I think you might have been referring more specifically to how to use them for converting bulk purchases into individual units for sale. If so, the following quote comes from the July 2020 issue of the Manager Updates newsletter. (Subscribe on the home page.) It is more complete than any of the individual discussions on the forum.
Bulk or Loose?
The most common questions on our Forum are about inventory items purchased and sold in different units of measure. You might buy an item by the case, ton, dozen, barrel, or roll, but sell it by the bottle, kilogram, piece, ounce, or meter. You might also sell by more than one unit, offering loose bolts or entire boxes. Or, rather than buying in larger lot sizes and breaking those down into smaller ones, you might buy individual pieces but sell only in cases. How should you deal with the fact that an inventory item can be defined with only a single unit of measure?
You have three basic options:
- Define different inventory items with distinct units. Then buy one and use production orders to convert into the other. For example, purchase 1 case of tomato sauce, from which you produce 12 cans.
- Define the item according to how you purchase it, and sell fractional units. For example, buy 1 kilogram of saffron spice that you sell to customers .001 kilogram at a time.
- Define the item to match the way you you sell it, and purchase multiples that convert readily to the way your suppliers sell or ship to you. If you sell 1-liter refills of olive oil to customers who bring their own containers, you could purchase 1,000 liters from a supplier who quotes kiloliters, relying on the supplier to make the conversion.
How should you choose? Consider these factors:
- Frequency and size of purchases compared to sales. If you sell both bulk and loose inventory, of course, Option 1 is often preferable. Occasional purchases of large quantities followed by frequent sales of small ones suggests Option 3.
- Willingness to create production orders. Do you have the time to create a production order every time you break open a carton containing 10 packs of coffee filters, as you would under Option 1? Or would you be better off choosing Option 3?
- Possibility of confusing your suppliers. Can you confidently order by the pound from a flour mill selling by the ton just because you distribute to bakers who think and order in pounds? Do you want to risk delivery of a quantity so large you cannot store it? Or would you be smarter to define two items and issue production orders?
- Difficulties for your staff. Option 2 may be attractive when fractional units of sale are convenient. Think back to that carton of 10 packs of coffee filters. It might be easy to sell 0.1 carton. But it would be cumbersome to sell 0.0833333 case of tomato sauce when a customer buys 1 can from a case of 12. (That also make discrepancies in physical counts more likely.)
- Warehousing practices. Do you store items in bulk until needed to fulfill sales? Or do you immediately break them down upon receipt? If you keep both versions on hand, Option 1 could be best. A few loose bolts in a bin, with full boxes behind, is a common sight at hardware stores. But the electrical section of the same store would probably not stock pre-cut lengths of wire. Instead, they would cut the length needed from a large spool.
- Customs and import considerations. Government officials usually expect documents to match in quantities, units of measure, and value. So consider how any imported goods will be manifested for transportation. The effort of creating a production order to convert to another unit of measure is a small price to pay for smooth passage across a border.
There is no single correct answer. Look back at the history of your inventory items. Ask yourself whether any have consistently caused problems or frustration because of their units. If you decide to make changes, keep several things in mind:
- Be cautious if changing units on existing items! This will retroactively affect all previous transactions involving that item. It is acceptable to substitute names for equivalent units, such as altering each to piece or case to box. But changing liter to barrel will only create confusion. (See next point.) A customer returning 1 of 5 bottles of shampoo would cause you some uncertainty if your record of the sales invoice shows she purchased 5 cases.
- Changing units will not change quantities on past transaction forms. Units are only labels in Manager. Trying to retroactively change those barrels you purchased to liters will only create the impression you have much less oil in stock than you really do. You will be wondering why you are ordering more when you have so much in the warehouse.
- Unused inventory items can be made inactive to avoid mistakes.
- Units or codes in item names will help during item selection on transaction forms. No one will know which of two Tomato sauce items to choose for a transaction, because units do not show in selection dropdown menus.
- Production orders are a quick way to convert items in one unit to items of another. This is the preferred method when unit changes imply different numerical quantities (liters to barrels or cases to bottles).
- Batch updates are simpler and faster when the unit change does not imply different quantities. In other words, a single process can convert case to carton, each to piece, or roll to spool for many inventory items at once.
One final note. Units are optional in Manager. However, if you do not use them, the program functions as though you have chosen each. That may have led to inconsistent treatment of inventory items in the past, especially when customers buy both bulk and loose quantities. And it may explain discrepancies you have encountered during physical verification of inventory. These should be rectified with inventory write-offs or write-ons.
Thank You very much for all
The Production Order method is is difficult for this purpose
The Inventory kit method works easy for me
@AMM, if you use inventory kits, you should understand you cannot purchase inventory kits, only sell them. So, while you can purchase bottles and sell a kit that is a carton, you cannot do the reverse. That is, you cannot purchase a kit that is a carton and sell bottles.
That means, if you choose the inventory kit route for selling, you will always have to buy in bottles, not cartons. But what you said you wanted to do was buy in cartons and sell in both bottles and cartons. To do that, you will have to use production orders.
I did a sample in the downloaded and installed Manager.io application
I created Brown Sugar (Bags)50 kg each
Purchased 25 bags
Created an inventory kit as follows and did some sales which worked fine. But only exception
The Sales Invoice Totals reports does not include which are sold with receipt
@AMM, your last post is not clear. You wrote, “…did some sales which worked fine.” But you did not explain how you recorded the sales. Then you said, “The Sales Invoice Totals reports does not include which are sold with receipt.” No, it would not. The title of that report clearly tells you it is totals from sales invoices, not total sales. Your final screen shot is also of a completely different report. How is that screen shot related to your written post?
Its Like this.
I purchase 25bags Each Bag 50kgs
I soled 535kgs via Sales Invoice at the rate of 120 a kg =64200
Then I soled 90kgs via Receipts and Payments tab (Cash Sales) =10800
535+90=625 which is 12.5 bags
Then Inventory Quantity Summery is correct
But Sales Invoice Totals by item shows
The items sold via Receipts and Payments tab does not appear I think due to the fact that is only invoice reports
Better if we can raise a report for all
OK. As long as you understand the Sales Invoice Totals by Item only covers goods sold by sales invoice. A more comprehensive report could be generated by custom report.
How to create a custom report to show all the sales
Read the Guide: Create custom reports | Manager.