Part Inventory Warehousing Overview:
The user has a very specific operational requirements of holding all Inventory in a single database, but distributed to different physical warehouses or mobile service vans.
The dealership requires the ability to sell from these different geographic warehouses and control restocking levels. Also within each warehouse they need to employ management practices using location field on inventory records
The business is operating under a single Blackpurl ORG and single accounting integration with one location being the main purchasing and warehouse - from this point on we refer to Main Warehouse
Main Warehouse will decide what parts will be held at remote warehouses and will manage the distribution to them
Main warehouse will manage all purchasing from external vendors but any non stock local purchases made at remote locations will be controlled via sublets, AND NOT PARTS INVENTORY
How Blackpurl Achieves this:
Establish an Internal Vendor for each Warehouse
Establish an Internal Customer in same name format as each Vendor - See Steps two and Three
Import Main Warehouse Total Inventory Parts Master file to each Remote Warehouse Vendor
Main Warehouse allocates initial Inventory to each Remote Warehouse Vendor via an invoice or Inventory Adjustment.
Each Warehouse ensures the Inventory available has a min / max level set, and location tag that marries with the physical location within that warehouse.
Staff at each warehouse sell from the Vendor allocated to them.
Main Warehouse will run a parts needed report at an appropriate interval to alert them of warehouse replenishment requirements.
From this report build a customer invoice to replenish
Produce Picking Slip from Invoice, pull parts from location on slip, include picking slip with parts and ship.
Record Freight Tracking Number on Invoice
Close Invoice. Transfer complete
Remote warehouses, on receiving shipped parts will check off corresponding picking slip space to confirm accuracy of shipment. Place in warehouse locations as per picking slip.
It’s that simple !!
Of course some of the steps above are heavily summarised, and there is more detail to be aware of. However all staff will need to be aware of the process summary on the previous page, but fewer people need to take the “deep dive” as laid out below. Some of these steps will be done with the help of your Blackpurl Activation Specialist, but most are within the control of User Staff.
Before creating the Vendor or Customer we have to ensure the correct control settings are set up. They being:
Go to System settings then
In Settings and Controls
Price Levels > Add = Warehouse Stock Transfer > Inventory replenish > Average Cost > 0% > 0%>Add
Account Type > Add = Internal Warehouse > Customer >Check boxes for Taxes to be Exempt click Add and make Active.
In Accounting Integration
Categories. > Add = Part Type > STOCK TRANSFER > Income GL same as Part default > COGS GL = Income GL > Inventory GL same as Part Default > Save
Transaction Type > Add = Part Sale > Stock Transfer > Stock Transfer
Step Two Set up Vendors: How to Create / Add a New Vendor
Make sure the name of Vendor is in line with the Warehouse name. Keep commonality amongst all Vendors. Ie: Melbourne Warehouse, Melbourne Service Van One etc.
Make sure there is no potential for conflict with a known “real” vendor name . In this instance a Vendor with the Name Melbourne Warehouse Supplies may be potential for confusion. Not a game changer, as that Vendor would not have your required Inventory on file, but just be aware.
Step Three Setup Customers: How to Create / Add a New Customer
Each Vendor set up in Step Two must have a customer set up that mirrors the Vendor name.
Customer is Tax Exempt which is determined by the price level and account type
Customer Price Level = Warehouse Stock Transfer (from Step 1)
Customer Account Type = Internal Warehouse (from Step 1)
If you want to use email to communicate documents, make sure the email address for remote warehouse is loaded
Step Four Import Price File from Main Warehouse Inventory record to all Remote Warehouse Vendors
Instruction at end of this document
Activation Staff will walk through first download, after which user will manage whenever necessary
Step Five and Six Prepare Warehouse Inventory files
Two ways to do this. First, the Main Warehouse prepares a list of inventory that will be transferred. User staff prepare Part Number files for location and Min /Max from this list in readiness for transfer
Secondly, the easiest, but most dependant on discipline, is to make the Transfer then run a no bin report to identify transferred parts and make the location and min / max entries.
Another potential scenario is when the Remote Warehouse already has the inventory in it, but is under the Main Warehouse Inventory records. In this instance a simple transfer invoice using a manually prepared stock count sheet, then perform the location and min / max entry from the No Bin report.
Step Seven Sell on CO’s no differently to any other circumstance, EXCEPT to click on the part number with the correct Vendor attached. NOTE the transaction will be OK if a mistake is made here, but it will create reorder and stock count issues later.
Step Eight At Regular Intervals run a Parts Needed report filtered by Vendor as below
Export report as Excel File and open on computer monitor. Ideally you have a monitor that will allow this file and Blackpurl open side by side.
All you do with this file is copy and past part number in the Stock transfer process below.
Next Open Parts CO against Customer that corresponds with Warehouse name. Click on Change Type.
Next The box below appears. Select Stock Transfer and SAVE
Next You copy and paste from Excel file into search field
Next Step has several Key Points
After copy and paste, select the correct warehouse to draw from. Enter the QTY needed from the report.
The next entry select the Warehouse you are transferring to, the QTY required will be the negative value corresponding to the first entry. (refer to red circle on left, in picture below)
The next point is IMPORTANT . It is possible that due to timing of price file upgrades, or adjustments made to an individual part price , that there is a difference in the cost price of the two parts. SO it is very important to make sure the cost values (as illustrated in the two green circles) correspond. If they don’t then you must change the cost on the part going to Warehouse (negative quantity entry) so both costs balance.
The red circle to the far right should always be zero after each corresponding entry. This is the visual check.
Should you get to the end of the invoice entries and the balance is not zero, then go back and change the offending line.
After all parts are entered and the invoice balance is still zero, print the Parts Picklist as below
Pick Inventory to be picked and checkoff in the corresponding line. Place picking slip with Inventory to be shipped, this will provide a checklist for receiving at the remote warehouse.
Finally, place the freight tracking number in the appropriate field in the Invoice Checkout Screen and close out CO to Account Credit. There will be no effect on any balance sheet values
Inventory Price File Upload
It is important to note that this process is separate to the Upload of Manufacturer Price File TO the Main Warehouse. But to keep your warehouses insync it is advisable to run this process straight after a new manufacturer master file upload has occurred.
What we are doing here is taking a report of all Inventory Files currently in the Main Warehouse and then uploading into each Vendor. The advantage of this approach is we capture all Inventory in the Main Warehouse in one report, irrespective of what Vendor supplied them.
Step 1 Select reporting > Common Search > Part Inventory Valuation. Filter this report to display Part Number, Description, Average Cost, Retail and MSRP only. Print to Excel File
Cleanup the Excel file by removing rows above the Column description row.
Scroll down from top and remove subtotal lines and blank rows
Highlight the whole document and Change the drop down field in centre ofTaskbar from “General” to “Text”
Save file. This is your Main Warehouse price file to upload to remote Warehouse Vendors
Go to Import manual price file in the tool section on the BP Header (Box with 9 dots)