In the Inventory file, there is a field called Re-Order Point. This field can be updated manually in Enter and Edit Products or automatically based on sales history. The Re-Order Point Report uses this re-order point field, comparing it to your current On-Hand Quantities, Sales Orders and Purchase Orders to help you decide if you need to re-order.

While the Re-Order Point report works great for those that have re-order points set up in their inventory file, we have found that many companies do not have re-order points or have not maintained them.

There is a new report in The Business Edge that will assist you in generating a Purchase Order based on different requirements. This is the Inventory YTD Average Re-Order Point Report.

This report can be generated for any range of Products by Product Code.

The system will prompt you for the Number of Days of Stock that you would like to maintain in Inventory. If you would like to keep the quantity that has been used in an average month in stock, you would enter 30 Days.

Next you will be prompted for a Beginning Date and Ending Date. This is the Date Range the system will consider when calculating your Average Daily Usage. You can select any time period here. If you are trying to predict seasonal usage based on last year’s history you would input October through December of last year.

The system will generate a report that will present the Average Daily Usage for the time period that you requested, Quantity on Sales Orders, Quantity on Purchase Order and the Quantity that you should order to keep you inventory at the desired level for the next 30 days (or the requested time period).

The Average daily usage will be multiplied by the Number of Days you selected to Stock. This becomes the target number. Sales Orders will be subtracted, Purchase Orders will be added. If the final number is less than the target, the report will suggest that you order the quantity needed to reach that goal.

This report can be found in: