Month-End Inventory Review

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The month-end inventory review details steps that can be taken to balance all warehouse levels. This should be used anytime a warehouse is counted in its entirety, as it results in all discrepancies being written off / on to ensure a correct ending level. Once complete, all virtual and Variance levels will be cleared, and all negative levels will be properly washed, leaving only the correct positive levels in each location.

Month-end inventory review consists of six processes:

  1. Validate WMS Levels
  2. Clear Virtual Locations
  3. Move All System Locations to Variance
  4. Perform Full Count
  5. Move All Count Discrepancies to Variance
  6. Perform Write-Off / Write-On to Clear Variance Location

There is also a copy of this information available for easy downloadable reference here: Month-End Inventory Review.

1. Validate WMS Levels

Go to File > Database Administration > Validate > WMS Levels.

Purpose: This process allows you to verify that the inventory numbers in an ION Report match the WMS levels in the database. Any difference creates a WMS level in the Variance location.

Usage:

  1. Click Validate WMS Levels against ION.
    MEIR1.png
  2. Highlight all of the rows in the left grid.
  3. Click Post selected adjustments.

2. Clear Virtual Locations

Go to WMS > Utilities > Clear Virtual Levels.

Purpose: This process allows you to move any Virtual levels to the Variance location. A Virtual level is a system created level attached to a ticket number whose level, for any number of reasons, remains attached to a ticket number location.

Usage:

  1. Set the Warehouse and Date.
    MEIR2.png
  2. Click Select All.
  3. Click Move to Variance.

3. Move All System Locations to Variance

Go to WMS > Move Stock.

Purpose: A System is any location used by eoStar to hold inventory that is not categorized as a picking or backstock location. These locations are used in the normal work flow and show not contain inventory at month end. The following are the key locations:

  • QC - Levels indicate a mismatch between picked and loaded quantities.
  • Warehouse - Levels indicate that an inventory process occurred without there being the context of a location.
  • Returns - Levels indicate that product returned from the trade was not properly put away.
  • Receiving - Levels indicate that product received from suppliers or other warehouses was not properly put away.

Usage:

  1. Select the Warehouse.
    MEIR3.png
  2. Select the Variance location in the left grid.
  3. Select the Warehouse location in the right grid.
  4. Highlight all of the rows in the right grid.
  5. Click Move Stock.
    • Note: Take care when moving inventory from these System locations, as in process transactions will make use of them. It is important that this step is performed while there is no activity in the warehouse.

4. Perform Full Count

Go to WMS > Count Session.

Purpose: By counting all products and locations, users can ensure that any discrepancies are found and accounted for prior to performing month-end adjustments.

Usage:

  1. Select the Warehouse and click Start Session.
    MEIR4.png
  2. Select all products.
  3. On the Count Request tab, check the box for the selected warehouse.
  4. Click Request Counts for Marked Locations.
  5. Perform the count process in eoWarehouse per your SOP.
    • Note: When selecting locations for counting, you will notice that it is impossible to select the QC and Variance locations. This is by design, as eoStar processes these locations automatically.

5. Move All Count Discrepancies to Variance

Go to WMS > Count Session.

Purpose: Moving all discrepancies to variance allows for overages to offset shortages in a single location. The end result is a single discrepancy in the variance location, as opposed to multiple variances in multiple locations.

Usage:

  1. Select the Problems tab.
    MEIR5.png
  2. Highlight the appropriate rows in the grid (Ctrl + A for all).
  3. Click Move Selected to Variance.
    • Note: Once posted, only the "In Variance" column will show levels.

6. Perform Write-Off / Write-On to Clear Variance Location

Go to WMS > Count Session. Purpose: Writing-off any remaining discrepancies from the variance location will adjust the on-hand inventory level to match what was counted. Until this write-off has been completed, no inventory adjustments have been made.

Usage:

  1. Select the Problems tab.
    MEIR6.png
  2. Highlight the appropriate rows in the grid (Ctrl + A for all).
  3. Click Write-off Selected Items from Variance.
  4. Select the date and the Write-off Reason.
  5. Repeat Steps 2-4 for any remaining variances until you are finished writing-off variances.
  6. Click End Session.