Inventory management is purpose-driven. Understanding what each link in the chain does and its purpose allows you to hone in on the specific aspects of your system that needs improvement. If you have been using smaller accounting solutions like tally erp for inventory accounting entries then identify your requirements for inventory management and start there. Improving inventory management requires improving command of your warehouse operations and the physical stock inside it. Here are four things you can work on right away that will improve your inventory management with Sage erp x3 that cannot be achieved by using standard inventory accounting methods of software like tally erp, Sage 50, Sage One, etc.
Sage erp x3 Inventory provides a common repository for maintaining product information used in sales, purchasing, warehousing, and production. Sage erp x3 manages lots, serial numbers, shelf life, expiration dates, and potency. Supported costing methods include standard, average unit, FIFO, LIFO, last, lot, and order cost. Sales information referring to substitutes, supersessions, warranty periods, customer products, and packaging is also provided. Products can be handled in various units of measure including stock, sales, purchasing, and packing, and in different types such as volume and length.
Inventory locations could be within the same fiscal entity or across fiscal entities. A smaller inventory accounting process does not track or manage inventory. So the inventory management is periodic and not perpetual. Entry-level erp solutions dubai like tally erp or Sage erp 300 keep inventory data in silos – one database file for each fiscal company and are not ideal for Multi-branch or multi-entity companies with intercompany movement. It does not enable central support and consolidated view of all transactions which is supported in Sage erp x3. Sage erp x3 site parameters are used for flexible location numbering format definitions, as well as warehouse receiving, storage, and picking location assignments. Controls are provided to facilitate, delay, or restrict access to locations as needed. Locations can be dedicated to specific items, dynamically assigned, or used to track inventory stored at third-party sites. Inter entity site movements can be addressed without the need for customer-vendor relationships to be set up in each entity – a very important consideration if you have registered for VAT as a Group entity.
Inventory Balance Snapshots
Sage erp x3 allows users to view stock balances by site including on-hand, reserved, available, on-order, in-transit, on backorder, and QC, with further zooms to details at the location and low levels. Available-to-Promise and projected stock level inquiries help users to visually see—using tables, graphs, or charts—the impact of events like order allocations and planned purchase or production orders. Inventory management thus provides far more benefits to an organization than inventory accounting
Quality Control and Sampling
Traceability is a feature that is absent with pure inventory accounting solutions. Traceability is an outstanding feature in Sage erp x3. Batch and Quality control features that allow us to define and upload QC certificates for each batch for improved auditability. Quality control features include forward and backward tracing of all QC-related transactions, as well as managing the disposition of accepted and rejected items. Both normal and lot-controlled items can be tracked from the point of origin—production or supplier—to the subsequent end user. All QC historical transactions are available on a single, easy-to-view window. Quantities in QC may be considered when calculating available stock. Special features are available to control items managed by expiration date, potency, and International Units. QC Sampling logic that supports the ISO 2859 standard is available. Sampling is initiated through multilevel controls and is integrated throughout the QC process.
If you are in the business of Food, Pharma, Chemicals or other products where expiry date, quality assurance/traceability by batch and recalls being important then this is a must-have feature
Inventory replenishment rules and data are maintained by product and site to help balance customer service and inventory levels, including lead time, safety stock, reorder formulas, and firm and planning time horizons. Replenishment orders can be generated as part of MRP or to reorder buy-for-stock items separately. Multiple-order point and quantity schemes are supported including minimum/maximum, EOQ, and period coverage. Replenishment orders automatically become open requirements for action by production or purchasing. If you are using Excel sheets for Material Requirement Planning the do ask yourself how much of inventory do you currently stock as a measure of you annual sales (Inventory turns) If this can be improved then do consider moving up to an Enterprise solution like Sage erp x3
Basic Inventory accounting methods or ERP solutions like Sage 300 ERP software will help you to manage, track and control your stock while, Sage erp x3 manages all inbound, outbound, and intrasite stock movements. Receipts, shipments, inter-site transfers, and returns are tightly integrated with sales and purchasing. Transactions resulting from the physical count and other stock adjustments are controlled by parameter-driven entry windows, adaptable to individual user and site policies. All intrasite stock movements to and from the appropriate storage and picking locations are also managed. Simple intrasite transfers can be entered without the need to create sales and purchase orders.
Sage erp x3 delivers powerful distribution capabilities that automate business processes such as accounting, order entry and inventory management. This results in streamlined operations, enhancing supply chain, warehouse and inventory accounting process management. Sage erp x3 Inventory management ensures optimum coherence and real-time monitoring of inventory status data. Inventory control is fully user-definable on each site with the application of the multisite, multi-warehouse and multilocation management. The module also incorporates some powerful quality control functions, while providing for total traceability of inventory quantities in real-time, both upstream and downstream, by material flow management