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| = INTRODUCTION TO TRADING IN STOCK WITH SOLACE ACCOUNTING =
| | #REDIRECT [[Accounting#12. Setting Up Inventory for Trading in Stock]] |
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| = SETTING UP SOLACE INVENTORY MODULE =
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| Before using inventory in Solace Accounting, all the settings must be completed. This module assume that you have completed module D and E.
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| To configure Solace for Inventory or Retail Trading
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| From the main screen click on "Control Panel"
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| In the Navigator double click on Inventory to get to the following screen
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| '''Global parameters'''
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| The first option on the left is the "'''General Setting'''" for inventory. All the parameters are listed on the right.
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| {| class="wikitable"
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| ! Multi Store
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| ! Tick this option to allow the system to use and display stores. If not tick, the system will work with only 1 store. This option can be turn on later.
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| | Cannot Sell out of stock.
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| | Tick this option to block the system from record any sales when there is no stock. This will also means that the system will not allow negative quantities or quantities be go below zero.
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| | Warn when out of Stock Message
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| | Tick this option to display a message whenever an inventory stock in about to go below zero.
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| | Create new Item on missing code
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| | Tick this option if the process requires new code on the fly while capturing transactions.
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| | Warn if preferred Supplier not used
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| | Tick this option to display a message whenever a purchase is raised using a supplier not in the preferred list of the inventory item
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| | Set Average cost 0.00 When Zero on Hand
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| | Tick this option to reset the Inventory Item Average cost to zero when the quantity on hand level is reaches 0.00
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| | Sales order reserve inventory
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| | Tick this option to reduce the available quantity of the inventory and reserve it for the customer.
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| | Sales order reserve Serial Number
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| | Same as the previous option, a Tick in this option will reserve the Serial Number for the customer.
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| | No Backorder
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| | A tick in this option will suppress the creation of backorder for unclaimed quantities on invoice. If not ticked, the system will create a backorder of difference between the quantity ordered and quantity shipped or invoiced.
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| | Check reorder Level
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| | This option allow the system to display notification for inventory quantity low level or level reaching the reorder level defined per inventory item.
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| |}
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| The next block '''Integration''' on this same screen you can setup the system to integrate inventory to the ledger for inventory valuation. This simply means that the Cost of Sales transactions will be generated. The method used for recording Cost of Sales is Average Cost or latest cost for evaluating the inventory. When this is enabled then you must select the Cost of Sales journal that will be used to record the transactions.
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| This journal can be forced to use consolidate or merge transactions while posting to the ledger. The integration mode should be decided once before starting any stock valuation and any inventory transaction is recorded. For more details see Module G.
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| The last block '''Limits''' is for setting discount limits when capturing transactions for inventory items.
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| {| class="wikitable"
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| |-
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| ! Max Discount line %
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| ! This option determines the maximum discount allowed per transaction
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| | Max Invoice Discount %
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| | This option determines the maximum discount for the entire invoice.
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| |}
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| '''Groups'''
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| Solace accounting makes it easy to link inventory items to ledger accounts. The second button on the left of inventory parameters screen opens the following panel with ledger account linking.
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| Create a group and attach all relevant account. That tax type can be set one type for both sales and purchase, Solace will allocate correctly input tax and output tax to relevant transactions. The ledger accounts that need to be are as follows.
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| {| class="wikitable"
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| ! Code
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| ! Group Code
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| | Description
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| | The name of the group
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| | Purchase Tax
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| | Tax Type used when transacting with suppliers.
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| | Sales Tax
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| | Tax Type use when transacting with customers.
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| | Sales
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| | Sales Account use when selling and transacting with customers
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| | Inventory
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| | This is the inventory control account used for inventory evaluation.
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| | Purchase Variance
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| | Account recording all the variances on purchases. this is more useful when trading in different currencies
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| | Count Variance
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| | Account recording differences on inventory item quantities.
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| | Cost of Sales
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| | Accounting recording Cost of Goods Sold. This is used in conjunction with the integration parameter.
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| | Adjustment
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| | Account recording all the inventory adjustment transactions.
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| |}
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| '''Defaults'''
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| When creating inventory item, Solace Accounting can help seep-up capturing by setting defaults for the newly created item.
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| These parameters will be used when creating a new inventory item.
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| {| class="wikitable"
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| ! Unit
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| ! Description of unit type
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| | Fixed Description
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| | Tick this option to disable editing or changing the Item description in the document entry screen.
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| | Inventory Group
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| | The group of accounts that will be selected for any new item.
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| | Invoicing Store
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| | The default store selected on new line in the invoice entry screen.
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| | Service Item
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| | Any new Inventory Item is created as a Service Item or Physical item
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| | Physical Item
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| | Any new Inventory Item is created as a Service Item or Physical item
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| | Item with Serial Number
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| | This option is selected on each new item to set the Serial number control mechanism on or off.
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| |}
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| '''Selling prices'''
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| Solace Accounting accommodates 10 regimes price that the user can define names and parameters. This is available on the same setup with the button selling prices that opens the following screen.
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| {| class="wikitable"
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| ! Options, Available Regimes
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| ! Defines how many regimes or price type will the displayed and used in the system
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| | Regime Name
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| | Defines under which name the regime will identified.
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| |}
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| '''Manufacturing and Bills of Materials'''
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| For clarity and transparency manufacturing is described in “Module G Using Manufacturing”
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| '''Logistic and Transportation Management'''
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| For the same reason, logistic is also described in separate module for better understanding.
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| = CREATE INVENTORY ITEM =
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| In this tutorial, we will be trading with 2 inventory items namely a dinner table and a coffee table as an example.
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| {| class="wikitable"
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| ! CODE
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| ! DESCRIPTION
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| ! COST PRICE
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| ! SELLING PRICE
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| ! OPENING STOCK
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| | 0DINER
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| | Dinner Table
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| | 750
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| | 1000
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| | 20
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| | 0COFFEE
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| | Coffee table
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| | 1100
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| | 1700
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| | 5
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| |}
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| Solace accounting uses Code to identify inventory items. Each item is controlled by means of Cost of Sales, selling price and quantities. Each item is linked to a Inventory group that describe the ledger side of the item. The group is a simple way of linking inventory item to ledger accounts. The most important accounts are Sales Account, Cost of Sales and Stock Control Account. These 3 accounts are all ledger accounts involved in the 2 basic operations of stock: stock purchases and stock sales.
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| {| class="wikitable"
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| ! Operation
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| ! DR
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| ! CR
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| | Stock Purchases
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| | Stock Item (Cost Price)
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| | Creditor (Cost Price)
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| | Stock Sales
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| | Debtor (Selling of Items)
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| | Sales (Selling Price)
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| | Cost of Sales (Cost Price)
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| | Stock (Cost Price)
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| |}
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| The inventory entry screen has many tabs that helps creating and setting up all sort of inventory items. The inventory code must be handy as it is mandatory for every item.
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| To Create or Edit inventory items:
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| From main screen click on inventory.
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| Double click on inventory to open the inventory entry screen "Edit Inventory Master".
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| Click on Add button.
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| Enter the code and use the enter key to navigate on the screen.
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| Enter the description and unit if needed
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| Select the group in parameters block. Notice the tax block is auto filled with selected group tax types
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| Select the '''item type'''
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| Setup processing parameters as needed. A special note '''linked to Previous Item'''. Solace option has a capability of creating item with price base on calculation using previous line item in a document. An example will be provided to illustrate this.
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| In the '''coat''' box enter the latest code value of the item. This can also be used in edit mode.
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| To Enter or Change item prices
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| A. Normal Prices
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| From the Inventory entry screen. ( see previous section)
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| Click on Prices tab.
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| Select or check the selected store in the item details.
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| Enter the price in inclusive column or exclusive column. Enter in one column and Solace accounting will re-calculate the other column by using the tax rate of the tax type of the item selected group. Solace is using 10 possible price type. Depending on how many regime the company is using, setup all regimes accordingly.
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| B. Future Prices
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| Future are used to prepare price changes without altering the current price applicable to current transaction. To apply current the future price or replace current prices with future prices use the assistant found in Solace accounting Control Panel.
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| C. Special Prices
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| A different price regime can be applied for a specific period, that is a special price. On the Item entry screen in price tab, the bottom section provide a way to setup, per item, the special price.
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| To Add item to stores
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| Using the same item entry screen
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| Click to store tab. All the stores will be listed
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| Put a tick on any store that will feature the item.
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| To Add or Remove item picture
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| Still on the same item entry screen
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| Click on picture tab.
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| Two buttons are provided. '''Load''' and '''Clear'''.
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| Click on load and locate your picture. This picture is also used for point of sale main menu quick access button.
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| Click on clear to remove any loaded picture.
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| To Check item quantities
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| A report can be used with more details but a quick check is accessible from the inventory.
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| Click on statistics tab
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| To setup stock Ordering levels
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| This is accessible from the same screen item inventory entry.
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| Enter min and max reorder quantities
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| Enter preferred suppliers accounts.
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| {| class="wikitable"
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| ! Note: The BOM tab is described in the module G "Using manufacturing"
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| |}
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| = USING INVENTORY IN DOCUMENTS =
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| All documents in Solace accounting are directly linked to inventory. There are manly two types documents: documents to suppliers and documents to customer. The two types are accessible from the customer and supplier menu. Solace accounting is a batch driven system. All document are in temporary mode until posted and update the ledger. After committed the document is sealed and cannot be altered.
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| For illustration we will use supplier purchase(Supplier invoice) and customer invoice but all documents uses the same screen layout. We buying 10 Dressing Tables at 1500 each and sale one for 2500. See Creating Inventory Item in this Module for ledger side.
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| To Register Item Purchase
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| From main menu screen click on supplier button on the left.
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| Double click on '''Documents''' in the right side menu.
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| On the Entry screen select Supplier Invoice.
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| Press enter and use enter key to navigate using solace essential flow navigation assistant. leave the Number as '''*Auto* ''' and select the account in the account lookup. Select Sub account if need, change the date and enter the document reference.
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| Press enter until the document lines section is enabled.
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| The first column is the line type.
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| Press enter and select the store if no default was setup.
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| Press and select the item we are purchasing.
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| Press enter and change the description if needed.
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| Click on Next button for next document.
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| To Post to the ledger, click un update and select '''Current Document Only''' from the menu.The system will display the document on the screen with option to '''print''', '''save¸ or email'''.
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| Close the report screen and close the document entry screen.
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| Few report have been updated and the most important are:
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| - Inventory Quantities (Inventory Report menu)
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| - Entry type per batch (General Ledger Report menu)
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| - Supplier Transactions (Supplier Report menu)
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| - And all others transaction and inventory reports.
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| {| class="wikitable"
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| ! Note: The document header contains many details but most are filed with defaults values setup in solace. Using enter key, Solace accounting will jump only in the essential details needed to start the documents. All other can still be adjusted during .
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| |}
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| To Register Item Sale
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| This exactly same process as registering item purchase process using the customers main menu. The customers main menu offers '''Tax Invoice''' menu and '''Quotation '''menu which both start the same screen, the document entry screen. The document type can be change from the document entry screen first header option.
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| - Few reports has been updated and here are some of them.
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| - Inventory Quantities.
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| Note that available quantity is now 9 after selling 1 Dressing table from pervious purchase.
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| - Entry Type batch report.
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| - Customer Transaction Report.
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| - The Trial Balance report.
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| This report is one of the financial report giving a snapshot of the books for the selected period. after this purchase and sale, the trial balance report is showing all the balances of all accounts updated by these two transactions.
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| Many other report can be printed showing more details of the two transactions. ''' Sales analysis''' has more details for company’sstrategy decisions.
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| -List of all documents available in Solace Accounting.
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| {| class="wikitable"
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| ! Document Name
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| ! Purpose and use
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| | Customer Documents
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| | Customer Documents
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| | Quotation
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| | This is an estimate sent to a customer in provision of sale.
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| | Sales Orders
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| | The Sales Order can be processed prior to an invoice. This from the customer accord to buy.
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| | Invoice
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| | For any sale to a customer, you issue an Invoice. This affect inventory and ledger accounts.
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| | Credit Note
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| | You will issue a Credit note if you customer returns part or all the items on an invoice.
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| | Debit note
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| | If you have left one or more item off an invoice, you will issue a Debit Note.
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| | Delivery Note
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| | Suppliers Documents
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| | Suppliers Documents
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| | Purchase Order
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| | A purchase order is a record of the order you are placing with the supplier. This is not posted to the ledger accounts and does not update the quantity on hand.
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| | Goods Rec Note
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| | You process a goods received note to record new goods into your company prior to receiving supplier’s invoice. When the supplier invoice is raised, the system allows you to link it to the GRN. Note that the GRN is not posted to the supplier Account but to the Accrual Account.
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| | Supplier Invoice
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| | When you receive goods from supplier, the supplier will send also the supplier invoice. This is also called purchase note. If linked to a GRN then the accrual account will be reduced and transferred to the supplier account.
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| | Return/Debit
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| | If one or more items are defective and you wish to return to a supplier then you issue a Supplier return. The document is a reversal of a supplier invoice.
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| | Credit to Supplier
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| | If your supplier left one or more items off an invoice you can use a credit to Supplier.
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| |}
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| = USING RECURRING INVOICE =
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| The recurring invoice type is used for invoice the need to repeat periodically. The system will record the document once and allow to repeat it whenever needed or schedule. There is manual repeating assistant and scheduler that need an external solace module to automatically repeat document and run unattended processes called "Solace Grata"
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| To Create a recurring invoice template.
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| From the main menu click on customers to reveal customers menu.
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| Double-click on Tax invoice or Quotation to open document entry screen.
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| Select Repeating Invoice in the Document type drop down list.
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| The document entry screen will start in repeating mode. The entry screen is totally identical to the normal entry screen.
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| Complete the invoice and close the entry screen so save the template.
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| To setup recurring scheduler.
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| The recurring document entry screen reveals an extract tab that is not available on the normal entry screen. The scheduler tab allows to create a schedule for auto repeat invoice.
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| {| class="wikitable"
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| !
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| ! Put a tick in enable option to set this template to automatically repeat using the below parameters.
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| |}
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| {| class="wikitable"
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| ! Note: The recurring invoice can be automatically generated using an external Solace module called Solace Grata. This module has more feature than this. Refer to solace accounting site for more details on Solace Grata.
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| |}
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| To Generate Invoice from recurring template.
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| Solace accounting provides an assistant to help generate invoices from recurring templates
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| .
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| From the main menu click on customers to reveal customers menu.
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| Double-click on Recurring Invoice
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| The assistant will open and guide the user through options.
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| Extra Documents Details.
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| Solace Accounting provides extra details that can be printed with document most of which are standard document details.
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| = STOCK TAKE =
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| Stock take is done generally when the system is first configured and regularly to keep the physical inventory and computerise inventory in synch. Performing once or twice a year is a absolutely essential for maintaining healthy inventory levels and minimizing losses in retail and wholesale businesses.
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| The system allows to take a snapshot and partial stock of inventory level and continue trading while counting the physical stock. It also provides an assistant to guid through the correct sequence of events.
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| The assistant is found unset inventory/Assistants/Inventory Count
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| From this screen click on process to select partial or full stock count. For full stock count leave the selection right side empty to include all items and click close.
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| The assistant will now disable the first step allow only to continue with the second step. Any time the process is flowed abort all with last action “Abort inventory Count” to start all over.
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| Click on process to print the A4 sheet that will help in physical counting. The last column in empty and should be used while physically counting stock.
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| Once done each page can be loaded directly as the system will stay will hold the stock take process until all is done. Closing the Assistant will keep all quantities entered and will not change the system stock level until asked to do so.
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| You can choose to enter manually the counted stock or use eternal csv file to enter the quantities. For manual capturing select “Enter Inventory manually” will open the following screen. The search box can be used to filter the list by code or description.
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| This operation should be repeated until all items have been counted and captured.
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| For importing stock levels select “Import Inventory Count” option that will open the following screen
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| The default file format first 4 columns must be Stock Code, Barcode, Description, Qty.
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| It is good practice to export first the file and use it as template the exported file format is csv
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| When all qty levels has been captured and Variance’s report checked, procced to “Update quantities” to conclude the stock count. This last process will apply the new quantities to the inventory register and terminate the stock take process.
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| = WHERE FROM HERE =
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| More details on Inventory process can be found in other modules or on the wiki page accessible from the main screen in solace Accounting.
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