Inventory (Projects | Inventory) Enter Inventory Items Step 1

  • Select Projects
  • Select Inventory

 The inventory feature allows you to manage owned and consigned Inventory.

There is a common confusion between Inventory and Products.  Inventory is used when you have a physical piece available for sale.  My Products refers to a type of catalog of products that you can keep in Studio Designer to hold the details about products that you frequently sell and then use those details to quickly create an item to sell to your clients.

 

These are the steps to manage inventory list below. This article reviews step 1. only. 

1. Enter Inventory Items

2. Purchase Inventory

        2a. Building inventory with multiple components 

        2b. Purchase Consignment Inventory 

3. Sell Inventory 

        3a. Sell Consignment Inventory 

4. Inventory Accounting 

 

 

1. Enter Inventory Items

Details about new inventory items are entered on the My Inventory page. 

This includes the Inventory ID, description and pricing. 

After the inventory item is entered, inventory can be purchased and sold.

  • Select Items
  • Select My Inventory

This is a list of all inventory items that you have a record of. 

You may or may not have the items on hand.

Select Edit (right side) to view the details for the selected Inventory. 

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Select New Inventory to create a new Inventory Item. 

Here you will enter all of the details about the item that you will purchase and later resell.

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Each Inventory ID has four tabs:

1. Inventory

2. Receive

3. Adjust

4. History

 

1. Inventory Tab 

Active

Most inventory items that are sold by designers are unique.  After they are sold, they can be made inactive so they no longer appear in the list of inventory items available for sale.  To make an item inactive, simply uncheck the Active indicator. 

Note: Items with any quantity available, committed or associated values should be left Active until quantities or values have been removed.  Making inventory items inactive while they have associated values may cause unpredictable results within inventory reports.

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Description

A short description of the item.  This is what is seen in the inventory list.

Inventory ID

The Inventory ID is a unique name used to identify this inventory record.

My Vendor

The Vendor the Inventory is purchased from.

Sales Code

The sales code defaults to new items entered with this Inventory ID.

The sales code also defines the cost of sales account to expense the merchandise cost to.

When inventory is sold, the cost of sales account will be debited for the merchandise cost.

Example:

Inventory Merchandise Cost = $2,500.00

Quantity on Hand = 2

1 item is sold

 

Debit Merchandise Cost of Sales for the Sales Code $1,250

Credit Inventory -$1,250

 

Other Sales Code

The other sales code defines the cost of sales account to expense all other costs to.

When inventory is sold, the cost of sales account will be debited for the other costs.

Example:

Inventory Other Costs = $300

Quantity on Hand = 2

1 item is sold

 

Debit Merchandise Cost of Sales for the Sales Code $150

Credit Inventory - $150

Note: Although you can assign multiple Other Costs to inventory items when purchased, these costs do not use the income and expense accounts associated with the other costs the way that normal items do.  As stated above, they will be lumped together based on the sales code used for "Other Sales Code."

 

Category

Select a category from the list.

This list is maintained by Studio Designer for use in the Studio Designer Market and Product Catalogs and cannot be modified by users.

Sub Category

Optional - select a subcategory if one is available and applicable.

Item Code 1

The item code 1 defaults to new items entered for this inventory ID.

Item Code 2

The item code 2 defaults to new items entered for this inventory ID.

Purchase Cost

The cost to purchase a new inventory item.

Selling Price

The price the inventory item is sold for.

Note: This price will come into the Selling Unit on the amounts tab at the time of sale.  Mark up will automatically be applied if one is present on the codes tab of the client's address record.  If you want your standard markup applied, the selling price entered on the inventory item should match the purchase price on the inventory item.

Retail Price

The retail price the inventory item is sold for.

Note: This is not inserted anywhere into the item when sold.

Actual Cost

Place holder for the actual cost.

This is not inserted anywhere into the item when sold.

Received

The date the inventory item was received.

Note: That there is also a received date recorded for each individual purchase.  This space may be left blank.

Location

The location defines the address where the inventory item is located.

The inventory location is defined by a record in the address file.

Example: 

You may have an address record created for a warehouse or storage unit. 

The location where the inventory is stored would be related to this address record.

Unit

The unit of measure for the inventory item. 

Ordered

The quantity ordered.

Received

The quantity received.

The quantity received cannot be entered unless the vendor invoice is entered.

The quantity received cannot be greater than the quantity ordered.

Inventory cannot be committed or sold unless it is received.

Sold

The quantity sold. Only items invoiced to clients will be included in Sold.

On Hand

Received - Sold = On Hand

Committed

The quantity currently Proposed for all clients that have not yet been invoiced.

Available

On Hand - Committed = Available

Consignment

The quantity currently on consignment.

Merchandise Cost

The sum of purchase cost associated with this Inventory ID for items that have had a vendor invoice assigned to them.

Other Cost

The sum of the other costs associated with this Inventory ID for items that have had a vendor invoice assigned to them.

Total Cost

Merchandise Cost + Other Cost = Total Cost

Studio Designer uses Average Cost to value inventory.  If you purchase one item at $20.00 and one at $30.00, you will have two items with a total cost of $50.00.  When you sell one (assuming that you had purchased both items prior to selling either), the purchase cost on the one item sold would be valued at $25.00 and the new inventory on hand value would also be $25.00.

Costs added to any of the original items after it has been sold will NOT increase the cost of the sold item.  The costs will remain with the Inventory on hand.  Due to this, it is possible to have a quantity of 0 and a cost of  > 0.  If you increase the purchase cost of an item after it has been sold, you will need to "Adjust" the cost to remove it from the inventory item using the adjust tab. 

Additional Input Fields

 Use the scroll bar (right side) on the Inventory tab to access the additional input fields below.

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Copy Description

Check this box to automatically copy the client description to the vendor description.

Client Description

This is the detail client description that will be copied to new items.

Vendor Description

This is the detailed vendor description that will be copied to new items.

COM

Customer's own material details and requirements.

Finish

Finish details and options for this item.

Dimensions

Dimensions for this item.

Content

Content of this item.

Primary Color

The primary color for this item.

Secondary Color

The secondary color for this item.

Bar Code

The barcode for this item.

Note:  We do not currently have any internal scanning capabilities for barcoded items.

 

2. Receive tab

After an item has been ordered or moved to inventory from an existing item, it must be "Received" in order to update quantities and values.

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To "Receive" an item, enter a vendor invoice # and the quantity received into the Received field and select Save.

You must enter a vendor invoice # to receive an item.  If you do not have an actual vendor invoice, you can enter a date or another number that may have significance to you.

 

Vendor Invoice #

The vendor invoice # for ordering the inventory.

General Ledger entries are created when the vendor invoice is entered:

Debit Inventory

Credit Accounts Payable

Note: If a Vendor Deposit already exists on this item, an entry will also be posted to relieve both Vendor Deposit and Accounts Payable of the amount of the deposit.

 

Received

The quantity received.

The quantity received cannot be entered unless the vendor invoice is entered.

The quantity received cannot be greater than the quantity ordered.

Inventory cannot be committed or sold unless it is received.

Note: If the inventory ordered will be received in multiple shipments, the quantity received should be cumulative at the point of each shipment. 

 

3. Adjust Tab

To adjust the quantity and values of inventory items without ordering or selling inventory, you can use the Adjust tab. 

This is the most common method for entering quantity and values for beginning inventory balances.

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Quantity to Adjust

You can adjust the inventory on hand by entering a quantity in the quantity field to adjust.

Enter a positive amount to increase the quantity on hand.

Enter a negative amount to decrease the quantity on hand.

Merchandise Cost to Adjust

You can adjust the inventory merchandise cost by entering an amount in the merchandise field to adjust.

Enter a positive amount to increase merchandise cost.

Enter a negative amount to decrease the merchandise cost.

General ledger entries are created when you post the entries:

Debit Inventory

Credit Inventory Adjustments

Merchandise cost is the total for the quantity being adjusted.

Example:

2 Lamps at $50.00 each would be a merchandise cost of $100.00.

 

Other Cost to Adjust

You can adjust the inventory of other costs by entering an amount in the field Other Cost.

Enter a positive amount to increase other costs.

Enter a negative amount to decrease the other cost.

 

General ledger entries are created when you post the entries:

Debit Inventory

Credit Inventory Adjustments

Note: Quantity, merchandise cost, and other costs are all independent of each other.  You are not required to update one just because you update another.

Note: The Inventory Adjustment account cannot be changed.

Consigned inventory cannot be "adjusted" and must be entered by creating an order to purchase it.

 

4. History Tab 

Inventory History displays a history of inventory transactions.

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