Manage and adjust stock

Applies to:     Office Accounting Professional

Microsoft Office Accounting 2008 has a number of tools to manage your stock. These can be found in numerous places, but especially on the Stock form, the Product and Service List, the Reminders pane and the adjust stock forms.

Product and Service List

When you want to look at all products and services together, you can look at the Product and Service List.

Manage and adjust stock

Product and Service List

Just like any other list, the Product and Service List can be customised to include the information you need. The Product and Service List can be modified to show:

  • Product group

  • Quantity on purchase order

  • Quantity on sales order

  • Commission associated

  • Supplier product number

  • Preferred supplier

  • UPC/SKU

  • Additional custom fields

To modify the Product and Service List, on the View menu, click Add/Remove Content. Remember that lists can be printed or exported to Microsoft Office Excel for further analysis.

Manage and adjust stock

Modify Layout dialog box

Reminders

Office Accounting 2008 has a number of reminders on the Company Home page. The reminders associated with managing stock are the Back Orders and the Stock to Reorder reminders.

Manage and adjust stock

Stock reminders on the Company Home page

Click the individual back orders reminders to open each sales order with back orders, or click the stock reorder reminders to open the Reorder Stock dialog box.

Reorder stock

With Accounting 2008, you can reorder stock in a simple way using the Reorder Stock dialog box, which can be opened from either the Company Home page or the Product and Service List.

Manage and adjust stock

Reorder Stock dialog box

The Reorder Stock dialog box lists all the stock products that should be ordered, because there is a shortage based on existing sales orders (back orders) or because the quantity on hand has fallen below the stock reorder point.

The quantity to reorder, which may differ from the shortage quantity, is calculated as follows:

Restock level minus the quantity on hand plus the quantity on sales orders

Accounting 2008 uses the preferred supplier information when opening the purchase orders.

Back orders

Back orders occur when a sales order is created for a larger quantity than exists on hand.

Manage and adjust stock

Sales order with back order

In the preceding example, there are 2 golf club sets on hand, but the sales order shows a quantity of 5 ordered, so 3 golf club sets are on back order (for this particular order). There could potentially be other sales orders for the same product with back orders as well. Handling the back order can either be done using the reorder stock functionality or by creating a purchase order from the sales order as follows: On the toolbar of the Sales Order form, click Create and then click Create Purchase Order.

Manage and adjust stock

Create a purchase order from a sales order

Create purchase orders from sales orders

The purchase order created from the sales order contains the same information as the sales order. (Note that the unit price is the purchase price, rather than the sales price.)

Manage and adjust stock

Purchase order created from a sales order

In the preceding example, the quantity of 5 on the sales order has been copied to the purchase order. The user can now adjust the quantity to the missing amount, or have the supplier drop ship all five sets directly to the customer to speed delivery. To drop ship directly to the customer, type the customer's address in the purchase order Delivery address and set the Delivery method to Drop Ship.

When the customer receives the golf club sets, the purchase order can be received into stock (to get the proper cost of sales for the products) and the sales order can be converted to an invoice.

Adjust stock

If you use stock products, you should perform a physical stock count at least once a year at the end of your fiscal year. To help you count your stock, use the Stock Take Worksheet report. To open the Stock Take Worksheet report, on the Suppliers menu, click Stock Take Worksheet.

Manage and adjust stock

Sample Stock Take Worksheet report

After you count what is actually on hand, you may want to adjust your stock for quantity or value.

With the Adjust Stock Quantity form selected from the Suppliers menu, you can adjust the stock quantity where the value of the remaining stock is adjusted accordingly, based on the first-in, first-out (FIFO) principle. This is used when the stock has kept its per-unit value, but the quantity differs from what is recorded in Accounting 2008.

Manage and adjust stock

Adjust Stock Quantity form

The Adjust Stock Quantity and Value form is used when the remaining stock no longer has the value it is posted at, either because it is damaged or the market value has gone down. When this form is saved, the stock is revalued at the date of the transaction, replacing the entire set of FIFO layers by the new entry on the adjustment date.

Manage and adjust stock

Adjust Stock Quantity and Value form

In the preceding example, the remaining tents and volleyball sets were damaged and the value was adjusted accordingly. Note that stock adjustments cannot be voided. To change a stock adjustment, you must make an additional stock adjustment on the same date.

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