How To Configure Store Inventory Management

Introduction

The purpose of this guide is to show how to configure the Enactor Estate Manager and POS to enable the Inventory Management capabilities of the solution. While very little configuration is needed to activate the functionality itself, there are numerous options within various master data components that will impact the overall capabilities and experience.

The Enactor Inventory Management application is not only responsible for tracking store level inventory as it is impacted by retail transactions, but it also provides the necessary functionality to track and manage inventory as it traverses the retailer's supply chain. The associated Inventory Management operations are largely managed Business Processes.

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Overview

The following areas will be reviewed as part of establishing Inventory Management:

1. Inventory Management Preferences - Distribution responsibility, cost price method, stock take defaults, and printing options
2. Products - Inventory-specific product settings including merchandise, inventory, dimensions, location, and costs
3. Locations - Warehouse creation and store-level ordering configuration
4. Suppliers - Supplier setup including ordering, communication, and MM Group settings
5. Supplier Products - Associating products to suppliers including bulk import
6. Inventory Types - Labels used to track inventory through the supply chain
7. Reason Codes - Reason types that move inventory between inventory types

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Prerequisites

Resources

Before starting, you should have the following resources in place:

• Enactor Estate Manager
• Enactor POS, connected to the Estate Manager
• Standard Configuration, including:
  • Base Configuration
  • Products

Prior Training/Experience

You should be familiar with the following:

• Estate Manager configuration
• Enactor configuration concepts, including Locations, POS Terminals, Products etc.
• Data broadcasting
• Inventory Management operations
• Inventory Levels and Inventory Types

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Configuration Steps

Inventory Management Preferences

The Inventory Management Preferences are set by default. No changes are required to enable Inventory Management functionality. Changes may be required to ensure the tracking and valuation of inventory meets your retailer's requirements.

Navigate to Inventory Management Preferences using the Search or the path: Configuration > Inventory > Inventory Management Preferences

Select Preference Set ID 1 for editing.

The General tab displays the core inventory management settings. Set Distribution Responsibility and Cost Price Management Method to match the retailer's accounting practices.

On the General tab, the first setting to consider is Distribution Responsibility. The choices for this setting are Source or Destination. This setting defines which location "owns" the inventory while in transit. This setting should be made based on the retailer's accounting practices.

Set Cost Price Management Method to the appropriate option (None, FIFO, LIFO, Cost, or Average Cost) based on the retailer's accounting practices.

The next setting on the General tab is Cost Price Management Method. The choices for this setting are None, FIFO, LIFO, Cost, or Average Cost. As above, this setting should be made based on the retailer's accounting practices.

Also on the General tab, there are several settings related to the Stock Take function. When a Stock Take is initiated, the system will suggest a deadline for Stock Take completion and a time at which the inventory snapshot will be taken. Changes to these settings will drive the default values as Stock Take requests are submitted. These values should be changed to match the retailer's preferred business process.

Configuration	Description
Distribution Responsibility	Defines which location owns inventory while in transit - Source or Destination
Cost Price Management Method	Determines inventory valuation method - None, FIFO, LIFO, Cost, or Average Cost
Stock Take Deadline	Default deadline suggested when a Stock Take is initiated
Stock Take Snapshot Time	Time at which the inventory snapshot will be taken

On the Printing tab, you are able to specify if any of the documents associated with the standard Inventory Management transactions should automatically be generated as a PDF or printed as part of the standard business processes.

The Printing tab controls which inventory management documents are automatically generated as PDF or printed during standard business processes.

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Products

A separate guide has been published on setting up base product data (see: How to configure example Product Data). This guide will only deal with the aspects of product setup that support or impact Inventory Management.

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While all product data will likely be provided by an integration to the retailer's ERP system, the following section demonstrates how these changes can also be made directly within Estate Manager.

Navigate to Product Maintenance using the Search or the path: Configuration > Merchandise > Products

Use the filters provided to locate and select the desired product.

Use the filters to locate and select the desired product for editing.

Merchandise Tab

Once the product has been selected, click on the Merchandise tab.

On the Merchandise-General tab, set Standard Cost Price and Standard Margin as required for inventory valuation purposes.

Some settings within Product Maintenance will not impact user functionality but may provide meaningful data to other processes. On the Merchandise-General tab, it is possible to define a Standard Cost Price and a Standard Margin amount. These entries may be used by your retailer to arrive at an inventory valuation as discussed in the section on Inventory Management Preferences.

Also on the General tab, it is possible to designate if an item is allowed to be loaned out or if it can be sold as a customer order instead of from stock.

Configuration	Description
Standard Cost Price	Cost price used for inventory valuation calculations
Standard Margin	Standard margin amount for the product
Allow Loan	Designates whether the item can be loaned out
Customer Order from Stock	Controls whether the item can be sold as a customer order instead of from stock

Inventory Tab

The Inventory tab contains several settings that directly impact the ordering of a product.

The Inventory tab controls purchase order eligibility, delivery method, and inventory tracking options for the product.

The Is Stocked option only applies to constituent products and is used in relation to the inventory management of Composite Products. The Inventory Management Type option is available in the event that the product inventory needs to be tracked and managed at the serial number level, which is often the case for high-value goods.

Selecting the Allow Purchase Order option permits a purchase order to be raised against the item. Additionally, if the Direct To Store Delivery option is selected, the product may be shipped directly from the supplier to the store without passing through the retailer's own distribution channel. The Purchase Order Start and End Dates make it possible to specify a date range as to when Purchase Orders can be raised.

The Customer Order Only option will prevent the product from being sold from store stock. The product can only be sold through a customer order.

Options for Inventory Units and Warehouse Unit of Measure are derived from the values selected for Measure System and Sales Unit as part of the standard product setup.

Configuration	Description
Is Stocked	Applies to constituent products for Composite Product inventory management
Inventory Management Type	Enables serial number level tracking for high-value goods
Allow Purchase Order	Permits purchase orders to be raised against the item
Direct To Store Delivery	Allows the product to ship directly from supplier to store
Purchase Order Start Date	Start of the period when purchase orders can be raised
Purchase Order End Date	End of the period when purchase orders can be raised
Customer Order Only	Prevents the product from being sold from store stock
Inventory Units	Derived from Measure System and Sales Unit
Warehouse Unit of Measure	Derived from Measure System and Sales Unit

Dimensions Tab

The Dimensions tab allows the recording of product dimensions, weight, and general size statement. This information could be used by other applications to provide things like slotting assignments or boxing recommendations for orders.

The Dimensions tab captures product dimensions, weight, and size information used for slotting assignments and order boxing recommendations.

Location Tab

The Location tab captures properties relating to the product at the selected location. After clicking on the Location tab, select a location from the left-hand column.

Select a location from the left-hand column, then configure location-specific inventory settings such as Is Ranged, Include in Planning, and Supplying Warehouse.

The Is Ranged option indicates that the product is part of the selected location's normal stock range. If Include in Planning is selected, the store will be included in any planning for that product.

When Allow Purchase Order is enabled, the store will be allowed to raise a purchase order for the item. Those purchase orders would be created as direct delivery. The Supplying Warehouse permits the selection of which warehouse is assigned to fulfil the selected product to the selected store.

Additional fields are provided on the Location-Inventory tab to specify Minimum, Maximum, and Ideal stock levels. Standard Replenishment and Delivery Lead Times can also be added.

Configuration	Description
Is Ranged	Indicates the product is part of the location's normal stock range
Include in Planning	Includes the store in planning for this product
Allow Purchase Order	Allows the store to raise a purchase order (created as direct delivery)
Supplying Warehouse	The warehouse assigned to fulfil this product to the selected store
Minimum Stock Level	Minimum inventory level for the product at this location
Maximum Stock Level	Maximum inventory level for the product at this location
Ideal Stock Level	Target inventory level for the product at this location
Replenishment Lead Time	Standard lead time for replenishment
Delivery Lead Time	Standard lead time for delivery

Minimum Stock Quantities

The Minimum Stock Quantities sub-tab captures required minimum stock levels to be applied by the Inventory Management System. Levels may be specified with a period dependency at a level of granularity required by the business for the individual Product and Location. Minimum stock level may be specified for a specific period (or number of periods) of the year and varied from year to year.

Configure period-based minimum stock levels for the product at the selected location. Enter the period properties and required minimum stock level, then select Add.

To add a Period-Minimum Stock Level specification to the list, enter the properties defining the period and the required Minimum Stock level, then select the Add option. To remove entries, select the Rubbish Bin icon:

Use the Add button to add entries and the Rubbish Bin icon to remove them. Quantity accepts a numeric value with a maximum of 99999.

Configuration	Description
Quantity	Numeric value (maximum 99999) - the required minimum stock level for the period
Period	The time period for which the minimum stock level applies

Location Costs

The Location Costs sub-tab captures manual entries of cost details for the Product at the selected Location. Details for the selected Inventory type are added to a list when the user selects Add. The list is normally populated automatically if Inventory Preference Cost Price Management Method is not set to NONE in Configuration > Inventory > Inventory Management Preferences.

The Location Costs sub-tab displays cost details for the product at the selected location, grouped by inventory type. Select Add to create new entries.

The cost details are captured using the properties shown. These values are normally populated automatically when the Cost Price Management Method is configured.

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Locations

The core configuration for Locations is covered in the How to configure a New Store guide. This guide will cover the specific location settings that impact Inventory Management. This guide will also show how to create a Warehouse location.

Navigate to Location Maintenance using the Search or the path: Configuration > Organisation > Locations

The Location Maintenance screen displays all configured locations. Select an existing location to edit, or click Create a New Location to add a new one.

Creating a Warehouse Location

To create a Warehouse Location, click on Create a New Location. Select a Location Type of Warehouse, assign a Location ID, and click Create.

Select Location Type as Warehouse, enter a Location ID, and click Create to add the new warehouse location.

Generally, the information needed to set up a warehouse is the same as what is required for a store setup. On the General-General tab, a warehouse Name and Region selection are required. As with stores, a default Locale should be assigned as well as the appropriate MMG Group.

On the General-General tab, enter the warehouse Name, select the Region, and assign the appropriate Locale and MMG Group.

The General-Ordering tab is also very similar to that of a store location. This allows additional control over how the warehouse will interact with customer orders.

The General-Ordering tab controls whether the warehouse can accept and fulfil various order types. Configure Accept Collection Orders, Accept Reservation Orders, Fulfil Collection Orders, and Fulfil Delivery Orders as required.

Configuration	Description
Name	The warehouse location name
Region	The region the warehouse belongs to
Locale	Default locale for the warehouse
MMG Group	The merchandise management group assigned to the warehouse
Accept Collection Orders	Allows the warehouse to accept collection orders
Accept Reservation Orders	Allows the warehouse to accept reservation orders
Fulfil Collection Orders	Authorises the warehouse to fulfil collection orders
Fulfil Delivery Orders	Authorises the warehouse to fulfil delivery orders

All other location settings closely mirror the default location setup steps.

Store Ordering Configuration

To configure store-specific Inventory Management settings, return to the Location Maintenance screen and choose a store location. After selecting a store, navigate to the General-Ordering tab.

On the Ordering tab, select the Default Warehouse for the store and configure order acceptance and fulfilment settings.

On the Ordering tab, the Default Warehouse is selected for a location. This represents the location where stock should be drawn from to fulfil orders. On the Ordering tab, it is also possible to specify if the location can Accept Collection Orders or Accept Reservation Orders. Additionally, it is possible to specify if the location is authorised to Fulfil Collection Orders or Fulfil Delivery Orders. A location can also be restricted from using stock on hand to fulfil collection orders.

Configuration	Description
Default Warehouse	The warehouse from which stock is drawn to fulfil orders for this store
Accept Collection Orders	Allows the store to accept collection orders
Accept Reservation Orders	Allows the store to accept reservation orders
Fulfil Collection Orders	Authorises the store to fulfil collection orders
Fulfil Delivery Orders	Authorises the store to fulfil delivery orders

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Suppliers

If Enactor will be used to order product from external sources, it will require the setup of Suppliers. Based on the Product and Product-Location settings discussed previously in this document, purchase orders may be raised to suppliers from stores, warehouses, or both.

Navigate to Supplier Maintenance using the Search or the path: Configuration > Inventory > Suppliers

The Supplier Maintenance screen displays all configured suppliers. Click Create a new Supplier to add a new one.

To add a Supplier, click on Create a new Supplier. After entering the Supplier ID, the Supplier Configuration will be presented.

General Tab

On the General-General tab, enter the supplier Name and Currency. Set Communication Method and Cancellation Communication Method to define how order information is shared with the supplier. Set Status to Approved to enable purchase orders.

On the General-General tab, the Supplier Name and Currency are required. Additionally, Communication Method and Cancellation Communication Method are also required as they drive specific activities within various business processes. These settings determine how order and cancellation information will be shared with a supplier. Current choices include: Post, Fax, File, Email, Email (CSV), Email (PDF), and None.

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It will not be possible to raise a purchase order unless the Status is set to Approved.

Settings for Allow Back Orders and Allow Receipt of Unexpected Items are also provided. If Allow Back Orders is selected, orders can remain open after initial receipt to receive any items that were back ordered. The Allow Receipt of Unexpected Items option will allow the receiver to add items to the receipt that were not ordered but were delivered.

Configuration	Description
Name	The supplier name
Currency	The currency used for transactions with this supplier
Communication Method	How order information is shared with the supplier - Post, Fax, File, Email, Email (CSV), Email (PDF), or None
Cancellation Communication Method	How cancellation information is shared with the supplier
Status	Must be set to Approved to enable purchase orders
Allow Back Orders	Allows orders to remain open after initial receipt for back-ordered items
Allow Receipt of Unexpected Items	Allows the receiver to add unordered items that were delivered

Orders Tab

The General-Orders tab controls order handling attributes. Tick Supports Electronic ASN if the supplier provides electronic advance shipping notices. Tick Auto Authorise Purchase Orders to skip the authorisation step when the creator has approval authority.

The General-Orders tab allows the configuration of several key order handling attributes. The Supports Electronic ASN option is selected if electronic ASNs from this Supplier will be interfaced to Enactor. If the Supplier does not support electronic ASNs, the system will automatically generate a receiving document to be used when the shipment arrives.

In the default business processes, Purchase Orders go through an authorisation task. The option to Auto Authorise Purchase Orders will skip that step if the person creating the Purchase Order also has the authority to approve it.

Other common settings found on the General-Orders tab include the ability to track a Default Lead Time as well as the necessary Cancellation Notice requirement. Minimum and Maximum Order variables can also be specified.

Configuration	Description
Supports Electronic ASN	Enable if electronic ASNs from this supplier will be interfaced to Enactor
Auto Authorise Purchase Orders	Skips the authorisation step if the creator has approval authority
Default Lead Time	Standard lead time for orders from this supplier
Cancellation Notice	Required notice period for order cancellations
Minimum Order	Minimum order quantity or value
Maximum Order	Maximum order quantity or value

MM Groups Tab

If a Supplier is associated with different MM Groups, the MM Groups tab can be used to establish different order rules based on MM Group.

Select an MM Group in the left panel, then configure group-specific order settings in the right panel. These settings are applied based on the MM Group specified on the Purchase Order.

After an MM Group is selected in the left panel, MM Group-specific order settings can be selected in the right panel. These settings will be enacted based on the MM Group specified on the Purchase Order.

note

The additional settings found on the General-Billing, Factories, Contacts, Contacts Directory, and User Attributes tabs do not impact the core Inventory Management functionality and are provided for general Supplier information.

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Supplier Products

Once a Supplier has been created, products must be associated to the supplier to permit ordering. While this can be completed within Product Maintenance, adding this information one product at a time is too inefficient when working with a number of items. The Supplier Products application provides a format to handle large data sets including direct copy-paste from a spreadsheet.

Navigate to Supplier Products using the Search or the path: Configuration > Inventory > Supplier Products

The Supplier Products screen displays all product-supplier associations. Add or update values for the headers displayed on the form.

The Supplier information for any Product can be added or updated simply by adding values for the headers displayed on the form.

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Large quantities of updates can be made by copying and pasting data from a spreadsheet. Copy the data range from a spreadsheet without header row information, then click the Paste button in the bottom right corner of the page.

Paste the copied spreadsheet data into the dialog. The data should not include header rows.

Once the data has been pasted, a mapping utility will be presented to associate the data columns with the appropriate fields. Default values can also be specified at this point if needed.

Use the mapping utility to associate each data column with the appropriate field. Specify default values where needed, then click OK.

When the mapping is complete, click on OK. The copied data will now be mapped onto the form in Estate Manager.

The pasted data is now mapped onto the form. Click Save to commit these entries.

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Inventory Types

By default, a number of Inventory Types are created to account for various Inventory Type labels that are needed to track inventory as it flows through the supply chain.

Navigate to Inventory Types using the Search or the path: Configuration > Inventory > Inventory Types

Inventory Types are essentially labels to be used by various Business Processes and, therefore, carry no configuration details. To create an additional Inventory Type, simply click on Create a new Inventory Type, then enter the Inventory Type ID and associated Description.

The Inventory Type list shows all configured types. Click Create a new Inventory Type to add a new one.

Enter the Inventory Type ID and Description for the new Inventory Type.

Configuration	Description
Inventory Type ID	Unique identifier for the inventory type
Description	Descriptive label for the inventory type

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Reasons

There are multiple Reason Types that are related to Inventory Management. These Reason Types have the capability of moving inventory between Inventory Types. Reason Types with the provision to alter Inventory Types include:

• Inter Store Transfer
• Item/Receipt Exchange
• Item/Receipt Return
• MMG Return
• Stock Adjustment

Using the Inventory Types mentioned in the previous section, these Reason Types allow associated Reasons to define and execute the inventory movement associated with the transaction.

Navigate to Reason Maintenance using the Search or the path: Configuration > Organisation > Reasons

The Reason Maintenance screen displays all configured reasons. Select a reason to edit its inventory type settings.

Return and Exchange Reasons

Return and Exchange related Reasons allow the specification of the inventory type that the merchandise should be allocated to upon completion of the return.

For return and exchange reasons, select the desired Inventory Type in the Effect on Inventory setting to define where the merchandise is allocated upon return.

This is accomplished by selecting the desired Inventory Type in the Effect on Inventory setting.

Inter Store Transfer Reasons

Reasons associated with an Inter Store Transfer Reason Type allow specification of the Inventory Type that the product is being moved from.

For inter store transfer reasons, select the Inventory Type that the product is being moved from.

In the case of an Inter Store Transfer Limited Reason Type, the end Inventory Type can also be specified.

For inter store transfer limited reasons, specify both the source and destination Inventory Type selections.

Stock Adjustment Reasons

The Stock Adjustment Reason Type includes both the beginning and resulting Inventory Type.

For stock adjustment reasons, specify the source and destination Inventory Type. Optionally include a Stock Ledger Transaction Type.

In addition to the Inventory Type, a Stock Ledger Transaction Type can be optionally included.

Reason Type	Source Inventory Type	Destination Inventory Type	Stock Ledger Transaction Type
Item/Receipt Return	N/A	Effect on Inventory	N/A
Item/Receipt Exchange	N/A	Effect on Inventory	N/A
Inter Store Transfer	Yes	N/A	N/A
Inter Store Transfer Limited	Yes	Yes	N/A
MMG Return	N/A	Effect on Inventory	N/A
Stock Adjustment	Yes	Yes	Optional

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