The Business Edge has a feature that will allow you to zero out values for dead inventory. The Dead Inventory System is located below and this document will take you through the steps to use it.
Inventory System Inventory File Maintenance Dead Inventory System
The first step in the dead inventory process is to run the report below which will allow you to select the parameters for the products you would like to write-off as dead inventory. The Dead Inventory Report is located below:
Inventory System Inventory
File Maintenance
Dead Inventory System
Dead Inventory Reports
Dead Inventory Report
The Dead Inventory report will give you the option to select a date in which products haven’t been sold or received since. The products displayed on the report must fit both of the date requirements selected here. The Business Edge does require you to select a date sold that is at least one year or greater from the date that you are running the report. Once you have selected the dates you can also select to only show items with dollar values, skip items never sold and include or do not include components. The Dead Inventory will also allow you to show individual lots and locations if desired.
Below is an example of the screen where you will select the criteria.
The Dead Inventory Report will display a list of products that fit your parameters. This can be adjusted/changed by simply pressing OK or Escape and running the report again with new parameters. The Dead Inventory Report is for information purposes only. It enables you to narrow down the right parameters you will use to actually zero out the inventory. To complete the dead inventory process you must go to Zero Dead Inventory Values. The Dead Inventory Report displays a recap of the parameters selected as well as the total value of the Dead Inventory as seen below.
Don't Include Components - if the item is a component of another item, assume it is not a dead product and don't show on this list.
Include Components-Don't Check BOM/Finished Goods - include all items, but only check if THIS item has been sold/received in the time frame. Basically, ignore the fact that it could be sold as a converted item.
Include Components-Check BOM/Finished Goods - include all items, once done with the sales / receipts of the products (it includes all products not sold/received in parameters, even if they have 0 on hand / 0 total value), go through the list and if it is a component of something that is not on the list, then remove the component from the list.
If you would like to upload the products to Fastener’s Clearing House there are FCH options on the right-hand side. This option does need to be set up prior to use and can be instituted by calling the customer support team at Computer Insights.
Another Option in the Dead Inventory System is to view a Dead Inventory Summary.
The Dead Inventory Summary is similar to the Dead Inventory Report, but the Dead Inventory Summary allows you to summarize the products on the report by classification or classification family. The Dead Inventory Summary will not give you an option to show individual lots and locations or include or not include components, instead it will summarize your products into classification or classification family.
The Dead Inventory Summary will show you a summary of each classification or classification family depending on which you have selected on the report parameter page with a total quantity, weight and value for the classification or family. The total value of the products as well as your report parameters display at the top of the screen as seen below.
The final step in the Dead Inventory process is to run the Zero Dead Inventory Values Report located here:
Inventory System
Inventory File Maintenance
Dead Inventory System
Zero Dead Inventory Values
At this point, you can still change the parameters for which you would like to run the report. The posting date defaults to today’s date and your user name is pre-filled based on the person logged in. The reference for G.L. is an area which you can type a reference for this transaction which can be viewed in General Ledger reports such as the Account Transaction Inquiry. The Balancing G.L. Account is pre-filled based on your Income Statement Control Accounts for Inventory Over/Under set up in the General Ledger. If you would like to change the Balancing G.L. Account either type the General Ledger account number in or to view a list of General Ledger Accounts click on the blue box next to Balancing G.L. Account.
When you are ready to run the report click OK or hit escape and The Business Edge will ask you to confirm that you would like to run the report. This process will create two transactions in the Cardex. The on hand inventory will be taken out of inventory at the on hand value and it will be put back in at zero value. You must be sure you want to complete this process before confirming.
The system will then present a screen like the one below showing the parts that were adjusted down to zero value. The available columns are Product Code, Lst Sale, Inv #, On Hand, UOM, FCH, Total Value, Cust, Customer Name, Product Description, Lst Rcpt, PO, Prod Class, Product Class Desc, Theo. Weight, Alternate Code, Slp Code.
You also have the opportunity on this screen to mark the products to be sent to Fastener Clearing House.
The Zero Dead Inventory Values automatically creates the appropriate general ledger adjustment for each product based on the balancing G.L. Account that was selected on the report parameters. If you would like to see the General Ledger transactions that were created by running the Zero Dead Inventory action you can go to the General Ledger Account Transaction Inquiry located below:
General Ledger System
Account Transaction Inquiry
The Account Transaction Inquiry can be viewed by selecting the G.L. Account that was selected when the Zero Dead Inventory Values and the posting date selected when the Zero Dead Inventory Value report was created.
The G.L. Account Transaction Inquiry report shows a line for each item that was zeroed out.
The individual products that were zeroed out can be viewed in the Adjustment reports located in Inventory Reports.