MACSworld: MACS Warehouse Processing Module

MACS Warehouse Processing Module

This MACS module supports agencies that stock consigned or buy/sell inventory. It provides order entry, document preparation, order inquiry and backorder processing, as well as complete inventory control, stock replenishment ordering, and inventory value reporting.

Can "Rep Software" Also Handle Warehousing?

In many industries, it is common for a sales agency to stock consigned or buy/sell (owned) inventory. However, most traditional "rep software" offers no order processing, inventory control or billing capability. As a result, many agencies use manual systems, try to program their own software, or adapt "distribution software" to meet their needs.

At MACS, we recognize that, as a stocking agency, you may have unique computing requirements that combine the capabilities of rep software-such as sales and commission accounting-with some elements of distribution software. We also recognize that if you haven't stocked before, you may acquire a stocking line, or begin billing and collections where you didn't before. You need a system that will adapt to your changing requirements. In other words, a software system should enable your agency to sieze opportunities, rather than hold you back.

For these reasons, MACS Software provides you with a completely integrated, comprehensive system for sales agency computing featuring these two optional modules:

Warehouse Processing
Billing/Accounts Receivable

These two modules can operate independently of each other, or together for billing of items you warehouse. However, these modules do require at least the MACS Basic System, and can be used in conjunction with other MACS optional modules.

Warehouse Processing Menu

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Master Files
Distribution Files
Order Entry
Printing Releases
Verifying Releases
Shipment Register
Backorder Reports
Backorder Release
Inventory Control
End-of-Month Processing

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Inventory Item Master File

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The Inventory Item Master File contains basic item information such as description, price, cost, and stock status. Item numbers can be up to 18 characters. An alternate item number permits access to items by an alias.

Quantities maintained in the file include the quantity on-hand, quantity committed (unshipped orders and backorders), and quantity on order. The system keeps a history of the quantity sold month-to-date, year-to-date, and total last year. For agencies that buy and resell inventory, MACS keeps track of inventory value using average, current market, FIFO, or LIFO costing method. Reorder points and quantities are used to flag items for restocking.

The Item Master File contains the base price of an item-the price before any markups or markdowns. Special pricing, including discounts/multipliers, quantity breaks, column pricing and contracts, can be established to automatically calculate the selling price during order entry.

Distribution Files

Two MACS Software mechanisms for calculating customer prices are described below.

Item Pricing Records

Pricing Records are used to establish pricing information for items sold at varying prices based on dollar volume or quantity breaks. For any item or group of items, a record can be established with up to six pricing levels. An indicator determines whether pricing adjustments occur at quantity breaks or dollar volume levels and whether the base price should be adjusted by a dollar amount or by a percentage. Below is an illustration of a pricing record which discounts the base price based on the quantity ordered. For example, if the customer orders a quantity between 50 and 99, the base price will be discounted by 40 percent.

Price break screen.

Customer Contracts

Customer Contracts are used to establish and maintain special pricing information for customers who place orders based on a negotiated contract. Beginning and ending contract dates and the maximum quantity of items which can be purchased under the contract pricing may be specified. A contract can be used with Item Pricing Records to implement contract pricing with price breaks at quantity or dollar volume levels. The sample contract below permits Maloney Industrial to purchase up to 5,000 2" Red Widgets between January 1 and December 31, 1985, at a contract price of $11.50 each.

Sample contract.

Warehouse Order Entry

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MACS Order Entry is a sophisticated, yet easy-to-use system. Almost the entire order is completed based on the manufacturer, customer and items entered. The operator can accept or override any piece of information provided automatically by the system. Much of the information automatically inserted in an order comes from the Distribution Files and from the Agency Information Base.

Printing Releases

This function is used to print orders that have not yet been printed. In addition to orders entered through Order Entry, this includes released backorders and shipped orders where the operator has requested a reprint. (An order will not be printed more than once unless specifically requested.) Orders can be printed in order of manufacturer or type of release form.

Verifying Releases

Release Verification is used to record changes to an order after it has been printed and shipped and to inform the system that the order is complete. Quantities ordered, shipped and backordered may be changed, and items may be added or removed from the order. Shipping charges can be recorded and messages added or updated. An opportunity is provided to print a clean copy of the release.

Shipment Register

The Shipment Register is run periodically (usually once a day) to list all orders that have been shipped since the last Shipment Register was printed. After the Register has printed, completed orders are removed from the open order file.

Backorder Processing

MACS Software maintains orders with backordered items until they are completely shipped. By printing a Back Ordered Items Report, you can see which backordered items can now be shipped, based on inventory on hand. Four sequences are available for the report: Customer; Date/Customer; Manufacturer/Item Number; Date/Manufacturer/Item Number.

Releasing Backorders

Back orders are normally released following a receipt of inventory. Backorders can be released either manually or automatically. If manually, the operator determines which orders and which line items on the order to release. If automatically, the computer determines which back orders will be released, based on the order of the above report. Items with quantities in the column "Can Be Shipped" on a Back Ordered Items Report can be released. Released orders are considered open orders and treated as if they were new orders.

Inventory Control

Monitoring and maintaining inventory levels is a key component of successfully managing a warehouse. The MACS Warehouse Processing module provides inventory control procedures geared to the agency warehouse with reporting and replenishment ordering capabilities to satisfy your manufacturers' requirements.

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Stock Inquiry
Suggested Order List
Warehouse Activity Report
Inventory Value Report
Stock Replenishment
Stock Receipts Processing
Stock Adjustments Processing
Performing a Physical Inventory
Inventory Count Sheets
Variance Report

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Stock Inquiry

Virtually all information about an inventory item can be displayed on the screen with just a few keystrokes. An item is selected by entering all or part of its item number. If the entire item number is entered, the information is displayed immediately. If only a part of the item number is entered, the system displays items at the bottom of the screen beginning with the characters entered. The desired item can be selected from the list.

Pressing one key causes the system to display transactions against the selected item. In that case, receipts, sales and adjustments to the item are displayed at the bottom of the screen, with corresponding order numbers, dates, and customers.

You can use the Stock Inquiry screen to check availability and quote a price when a customer calls.

Suggested Order List

The Suggested Order List prints a listing of items that have reached the reorder points established in the Inventory Item Master File. In calculating the inventory level, the quantity on hand, open orders and backorders are all considered. For buy/sell lines, the Vendor Cost is extended to determine the cost of the suggested order.

Warehouse Activity Report

The Warehouse Activity Report prints historical sales data for inventory items. The report lists current quantities as well as month-to-date, year-to-date, and last year sales quantities, and average monthly sales quantities for this year and last year.

Inventory Value Report

The Inventory Value Report calculates value of on-hand inventory. The Accounting Cost is constantly recalculated based on the valuation method selected for each item.

Stock Replenishment

Stock Replenishment processing updates the on-order quantities in the Inventory Item Master File. Purchase Orders are entered easily through the Stock Replenishment Entry procedure. The Stock Replenishment Register lists purchase orders that have been entered and updates the Inventory Item Master File.

Stock Receipts Processing

Stock Receipts Processing records incoming inventory in the Inventory Item Master File. Quantity on hand is increased and quantity on order is reduced by the amount of the receipt. Stock Receipts may be entered from a packing slip or purchase order. The Stock Receipts Register provides a permanent printed copy of inventory receipts for future reference.

Stock Adjustments Processing

Adjustments Entry is used to record changes in inventory quantities other than shipments and stock receipts. The Inventory Adjustments Journal is a printed record of the adjustments.

Performing a Physical Inventory

The MACS Warehouse Processing module provides functions and prints reports that help to conduct an organized, methodical physical inventory. A physical inventory can be done on just one product line or all lines at once.

Inventory Count Sheets

MACS prints Inventory Count Sheets to aid in the collection of physical inventory counts. Each item is printed in order of warehouse bin location.

Variance Report

A Variance Report lets you identify any discrepancies between the physical inventory counts and the values expected by MACS.

Warehouse End-of-Month Processing

The Warehouse End-of-Month Processing menu provides procedures typically run at the end of every month by users of the MACS Warehouse Processing module.

WHE\16.24                    Any Sales Agency, Inc.                     09/05/06
S67                         MACS Software User Name                     11:13 AM



                       WAREHOUSE E-O-M PROCESSING   [WHE]

                        1. Inventory Reconciliation
                        2. Freight Paid by Agency Report
                        3. Voided Release Report
                        4. Monthly Shipment Summary
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                        7.
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                        9. E-O-M Inventory Update





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