This is part 4 of a 7 part series of Microsoft Dynamics GP Dashboards for Distribution presentation I did at the GPUG Summit in Tampa, November 2013.
In this video, I build an Excel Refreshable Report that shows when I need to reorder Inventory Items based on Item Quantities Maintenance and the Item Resource Planning Maintenance (Order-Up-To Level) in Microsoft Dynamics GP.
Dashboard for Distribution Series:
Part 1: Microsoft Dynamics GP - Excel AR Trial Balance
A Microsoft GP User sent me an email asking about how they can consume inventory items for use and how they can transfer inventory items to Fixed Assets. For the second part, I found a fabulous blog posting from my friend and fellow Microsoft MVP, Mariano Gomez (the link is below).
This video is simply putting Mariano’s blog posting into action. Thanks Mariano for this great answer to Jeanne’s question.
An item type assigned to items that consist of other component items that are assembled at the time of sale. The kit is a single item with an item number; it consists of one or more component items in your inventory. Component items can be services, sales inventory, discontinued, miscellaneous charge, and flat fee items.
Kit items consist of other component items. Quantities on hand won’t be tracked for items you designate as kits. However, current costs are associated with these items, and the quantity sold will be tracked when the items are assembled at the time of sale. When you post a transaction that contains a kit item, amounts will be posted to the Sales account specified for the kit item and the Inventory account and Cost of Goods Sold account for each of the component items in each kit.
Even if you select Kit as the item type for a class of items, you can sell components as separate items if you want to.
So what does this mean to you?
I always use the example of buying a Big Mac at McDonald’s. You buy a Big Mac and that is what you see on your receipt, 1 Big Mac. McDonald’s does not keep Big Mac’s in inventory. They do keep in inventory:
2 All Beef Patties
Sesame Seed Bun.
So when you buy a Big Mac, you are reducing their inventory for all of the above. If you do not want Cheese on your Big Mac, your receipt will say “Big Mac w/no Cheese.” Then you are reducing the following from inventory:
2 All Beef Patties
Sesame Seed Bun.
This is a great way to offer promotions by combining items. A good example of this is McDonald’s Happy Meals. It consist of:
McDonalds can then capture how many burgers they sold (with and without the Happy Meal,) and independently track how many Happy Meals they sold.
I do not know what McDonald’s uses for an Accounting/ERP system, but if you use Sales order Processing, I’m sure you can think of a lot of opportunities by using Kits. They are easy to setup and easy to use!
If you use Microsoft Dynamics GP Inventory Control, you may need to occasionally return some of these items to the Vendor (or Supplier) you purchased them from. The Purchase Order Processing module can handle this for you using the Returns Transaction Entry window. The return window will return any item entered as returned through Sales Order Processing (SOP) or any item entered in Inventory from Inventory Transactions.
Inventory: This type allows you to reduce your Inventory quantities and inventory value.
Inventory w/Credit: This type allows you to reduce your Inventory quantities and inventory value AND issue and post a return in payables to reduce the amount you owe your vendor. If you choose this option, you will still need to manually apply the return to the appropriate invoice using Apply Payables Document.
Replace Returned Goods: Checking this box indicates that you expect to receive replacements for the goods you are returning. A PO will be created.
Invoice Expected for Returned Goods: If you choose the type “Inventory w/Credit” this option will be checked and dimmed out so you can change the field.
Use Microsoft Dynamics GP Inventory Returns Part 1 will follow and will cover the return types: Return and Return w/Credit.
If you use Microsoft Dynamics GP Purchase Order Processing (POP) to receive Inventory Items, you may need to occasionally return some of these items to the Vendor (or Supplier) you purchased them from. The Purchase Order Processing module can handle this for you using the Returns Transaction Entry window.
Return: This type allows you to reduce your Inventory quantities and inventory value.
Return w/Credit: This type allows you to reduce your Inventory quantities and inventory value AND issue and post a return in payables to reduce the amount you owe your vendor. If you choose this option, you will still need to manually apply the return to the appropriate invoice using Apply Payables Document.
Replace Returned Goods: Checking this box indicates that you expect to receive replacements for the goods you are returning. If the original Purchase Order has not been moved to history, the quantity you expect will be added to the PO. If the PO has been moved to history, a new PO will be created.
Invoice Expected for Returned Goods: If your vendor will issue an invoice for the original amount, a credit memo and another invoice for the new amount (if you choose to replace the goods) then check this box. If you choose the type “Return w/Credit” this option will be checked and dimmed out so you can change the field.
Use Microsoft Dynamics GP Inventory Returns Part 2 will follow and will cover the return types: Inventory and Inventory w/Credit.
(The attached video includes all of the information in the text below for those of you who prefer to “watch it” rather than “read it.”)
“Suggested Sales Items” is an awesome new feature in Microsoft Dynamics GP 2013. This new version is due to be released at the end of December, 2012.
We’ve all been to a restaurant and ordered an entrée only to have the wait person suggest some additional side or appetizer based on our entrée selection. This is known as “upselling.” We’ve also been in the situation where we have seen a newspaper advertisement for a product on sale only to get to the store to see another version of the sale product that is better but not on sale. This is known as a “loss leader.”
It is probable that you’ve bought the extra side dish or the “non-sale” more expensive item in both of the situations above at least once.
Q: So how can you use Microsoft Dynamics GP to translate this action in your customers?
A: The new feature in GP 2013 “Suggest Sales Items.”
This feature is setup in Inventory Control, but used in Sales Order Processing. You start with the Inventory Item Maintenance Window (Inventory ~ Cards ~ Item.)
Select an item using the Item Lookup Window.
Click on the new button in the bottom of the Item Maintenance Window called “Suggest Items.”
The new “Suggest Sales Item Maintenance” window will open.
Select which Sales Order Processing (SOP) Document type for which you want to have suggestions made to you while working with a customer or prospect. (The default is for all SOP document types. This feature does not work with Back Orders or Returns.)
In the grid at the bottom, select the item you want Microsoft Dynamics GP to suggest to you. Click on the Lookup icon for a list, then enter the quantity that you want suggested. This may not always be a one to one relationship (e.g. If you are selling a 10 gallon bucket of paint, you may want to suggest 2 paint rollers or 8 brushes or a single spray painting machine.) In this example you’ll notice we can suggest more than item.
Begin your Sales Order Processing transaction in the SOP Entry window.
After an item that has suggestions assigned to it is entered, the “Suggest Sales Item Entry” window will appear. This will allows you as a sales person to discuss these additional options with your customer or prospect.
OPTIONAL: If you do not have enough of the original item OR the suggested item in stock, you will receive the “Sales Quantity Shortage Options” window at the appropriate time to ensure you are given the option of how you want to handle shortages.
OPTIONAL: If the client is over their credit limit, you will receive the Credit Warning window after you enter the original item and BEFORE the “Suggest Sales Item Entry” window appears. It will still appear giving you the opportunity for upselling, however normal Credit Rules already in place will still exist.
Should the customer or prospect choose to receive any of the suggested items, all you have to do is:
Click on the box next to the item number in the grid at the bottom.
Ensure the quantity is the desired quantity, if not change it. Once you are returned to the Sales Order Processing Entry window, you can edit the quantities and pricing there as well.
If the customer does not want the items, just click OK to close the window.
This is a really cool new feature and I hope everyone who utilizes the distribution series takes advantage of it!
(The attached video includes most of the information in the text below for those of you who prefer to “watch it” rather than “read it.”)
How can Microsoft Dynamics GP improve your customers’ experience when ordering your product?
In the Sales Series, under Cards is an option called “Customer Items, which opens the Customer Item Maintenance window. In this window you can pull up a customer from the Customer and Prospects Lookup List. You then will select one of your item numbers using the Items Lookup List.
At this point you can then set your customer’s:
Item Number or ID
Five User Defined Text fields and substitute item information
More often than not, your customer will use a different item numbers than you. By setting up the item number your customer uses in your Microsoft Dynamics GP, you will be able to take your customers’ Purchase Orders or talk to them on the phone using numbers they are familiar with, thus making the ordering process easier for them and the customer / vendor experience better.
If you choose to use the Substitute Item Number area of the Customer Item Maintenance window; you can setup another one of your items that you can recommend to your customer should you not have enough inventory of the item being ordered. Let’s assume you are having a sale of one of your items and a customer calls to order that item. If you do not have enough in stock, rather than backorder the item you can recommend another item from your inventory.
Should you choose to populate the Substitute Item’s Effective Date Range in the Customer Item Maintenance window; the Substitute Item selected will be suggested if the transaction date falls within that date range. You can also use this Effective Date Range to remove temporary Substitute items.
To set up customer item numbers and substitute item numbers:
Open the Customer Item Maintenance window. (Cards >> Sales >> Customer Items)
Enter or select a customer and an item number.
Enter the item name that the customer uses. When you create a sales order and enter the customer item, the inventory item number will be displayed.
You can enter a customer item description, short name, and generic name.
You can enter additional information in the text fields.
To assign a substitute item, you can enter or select an item to substitute for the item displayed in the Item Number field.
You can enter a date range for when the substitute item is effective. This date also can be used to remove customer/item substitute records in the Remove Customer/Item Substitutes window.
Removing Substitute Items
To remove Substitute Items, you can open the “Remove Customer / Item Substitutes” window which is located under Utilities in the Sales Series. This window will remove item substitute records with expiration dates equal to or earlier than the date you enter.
To remove customer/item substitute items:
Open the Remove Customer/Item Substitutes window. (Microsoft Dynamics GP menu >> Tools >> Utilities >> Sales >> Remove Substitute Items)
Enter the date to remove customer/item substitute records that expired on or earlier than the date.
Choose Process. The Customer/Item Substitutes Removed report will be printed.
Different than Inventory Setup Substitute Items
This feature is different than Inventory Item Maintenance Options Substitute Items. They work the same in that they suggest a pre-selected item number at the time of the sale if the item requested is out of stock. But the Inventory option is general and not specific to a customer AND it does not expiration dates.