Pronto Xi Inventory

Applications Overview

Inventory

Part of the Distribution application

Trademarks

Pronto Software, Pronto, Pronto Xi, the Pronto interrobang logo, the P interrobang logo, Pronto Woven, Pronto iQ and Pronto Cloud are all registered trademarks of Pronto Software Limited. All other marks are the property of their respective owners.

Copyright © 2023 Pronto Software Limited (ABN 47001337248).

Disclaimer

This document contains statements related to our current and future developments that may constitute forward-looking statements. They are subject to changes and may be available in a Pronto Xi 770 service pack or future release of Pronto Xi.

All diagrams, drawings, product screenshots and any other types of visualisations in this document, use demo or synthetic data created for display purposes only.

Efficiently control your product flows with Inventory

With seamless integration with Pronto Xi modules such as Purchasing and Manufacturing, and the ability to track stock by warehouse, Inventory gives you complete visibility over your business’s inventory.

Maintain detailed information about an inventory item

Inventory includes:

• multiple warehouses, suppliers and prices per item

• multiple units of measure (UOM) and full first-in, first-out (FIFO)

• support for Global Trade Item Number (GTIN) barcodes

• standard, average, FIFO, actual and replacement costings

• serial number and lot tracking

• item licences

• full stocktake/cycle counting

• interactive image display for products

• item attributes

• automated reordering and replenishment

Inventory master records

Inventory records all the information and transaction history associated with an item. To create or maintain an item, you can use the main Inventory Maintenance screen or an industry-specific screen. Chemical, paper, retail, wholesale distribution, timber and mining are some of the industries that are supported by specialised maintenance screens.

Different types of items handled include:

• Stocked or standard – a normal saleable item, which is typically purchased but can also be manufactured

• Manufactured – items that have components, a bill of material (BOM) and routings

• Raw materials – items that are not saleable and do not have a BOM, but can be transferred using a transfer sales order

• Indent – items that are not normally held in stock but are instead purchased subject to a sale

• Kit – a combination of various types of items

• Labour – items that can have a cost and a selling price but there is no necessity to control the quantity on hand (for example, items used as components to cost labour in a BOM or in kits)

• Specials – items that can have a cost and a selling price, but because they are generally used to control cost overhead recovery or are consumables (for example, expense items such as stationery or electricity) there is no necessity to control the quantity on hand

Inventory master records can also include additional information or notes such as hazardous or dangerous goods documentation.

Managing multiple processes

Inventory provides you with the flexibility to manage multiple processes for a single inventory item.

For example, you may have an item that needs to be configured as backflushed, in line with your manufacturing process, but that also requires license controls. With Inventory’s process requirement functionality, you can configure the required options in one easy step.

Inventory maintenance

The module’s main Inventory Maintenance screen displays detailed information about your items, while menu options give you access to additional screens for warehouses, suppliers, pricing, alternatives, notes, BOM and more.

Warehouses

Inventory allows you to maintain pick and bulk locations against each warehouse. Additional inventory tracking is available in Warehouse Management System.

Inventory records and tracks movements, costs and commitments for each item in each warehouse, helping you to manage your reordering requirements. In addition, the Warehouses screen permits you to:

• determine inventory postings to the General Ledger

• record sales history

• automatically receive items from other warehouses via internal transfer orders

It accommodates various types of warehouses, including standard and advanced warehouses, factories, service vans (inventory stored in fleet vehicles) and consignment.

The screen also captures detailed inventorylevel information for each warehouse. This includes stock on hand, supplier orders, and order commitments.

Inventory movements in each warehouse are recorded, summarised and displayed by transaction type.

Suppliers

The Supplier screen allows you to set up a supplier for an item by region, record pertinent information, and track their performance levels. Any number of suppliers can be specified.

Add of edit Supplier details for an item

Supplier attributes include:

• supplier preference

• supplier item code, description and conversion factor

• minimum order quantity

• supplier item group

• pack quantity and volume for cost apportionment of freight charges

• supplier’s estimated and most recent lead time

• multiple quantity price breaks by supplier

• foreign currency pricing

Pricing

Inventory allows you to set pricing structures within the inventory master records. You can maintain multiple pricing levels for each item, as well as promotional prices for specified periods; price algorithms and discount matrices can also be set up. Tax rules are appropriately handled either at the item level or globally.

An item’s basic pricing record consists of a base price, multiple prices for different categories or quantity breaks, and the recommended retail price. Each item may have additional pricing structures defined by customer group.

Prices can be recalculated for items based on a mark-up value or by applying a percentage increase over current prices. Your current price list can also be copied into a price maintenance environment – where price changes can be manipulated – before you update the current price lists.

Inventory also allows you to keep track of your competitors’ prices.

Inventory master fields

Item code

The item code is an alphanumeric field used to identify items throughout Pronto Xi.

Description

Each item includes a three-line product description. In addition, extended note facilities allow unlimited text to be stored for internal and external purposes.

Product hierarchy

A multi-level classification system, the product hierarchy allows you to clearly define your business’s product taxonomy.

The five-level structure has a wide range of benefits, including enhanced inventory management and reporting capability via Pronto Xi modules such as Business Intelligence.

You can select how many of the five ‘levels’ of the hierarchy are turned on and flexible maintenance means the hierarchy to be maintained from the top down, or bottom up, making it suitable for various business needs and industries.

Associated functions such as price maintenance, reordering and bulk item maintenance are able to leverage active hierarchy levels. Data integrity is maintained by enforcing the hierarchical relationships between each ‘child’ and ‘parent’.

Product group

Items can be categorised by product groups, which is beneficial for:

• recording sales history

• posting to the General Ledger for sales, cost of goods sold and more

• reporting

• dissection of prices, discounts and promotions

• calculation of sales representative commissions

• inventory valuation

Posting of inventory transactions to the General Ledger is fully automated.

Prices, discounts and promotions can be established based on item groups, for example, contract price by customer type/ item group and promotional discount by customer type/item group. Special commission rates for sales representatives by item group can also be established.

Attributes

Item attributes help extend the description of a product through a structured and ordered categorisation. Importantly, they can be used as data points to “slice and dice” sales data to uncover customers’ buying habits and preferences. These insights can then be used to create sales promotions, forecast purchases and exchange data with Avenue and eCommerce platforms.

APN

An alternative part number (APN) for a specific item can be used to include the code of another item, which is cross-referenced when the first item is superseded.

GTIN

The universally recognised Global Trade Item Number (GTIN) is the industry-accepted barcode for a specific item. A single item can have multiple GTINs to reflect various units of measure, such as consumer unit, traded unit or pallet.

Both APN and GTIN can be used for enquiry, reporting and scanning directly into Inventory.

Units, packs, sizes and weights

Multiple units of measure for the sale, warehouse storage and procurement of each inventory item can be used. Pack weights and cubic dimensions can also be stored.

Traceability

Inventory allows for various methods of traceability:

• Serial-tracked — can be used when the goods are received, at dispatch, or both

• Lot-tracked (for batch tracking) — facilitates full traceability from purchase to product recall, if required

• Purchase-tracked — used for tracking by purchase order number

Import tariffs/excise tax

When an item is imported from a foreign supplier, the tariff charged depends on the supplier’s country and the nature of the item.

Inventory uses a country code to identify the country of origin, and a tariff code to identify the class of the item for tariff purposes. The country code is stored against the supplier, while the tariff code is held at the item level.

Inventory transactions

Inventory holds comprehensive transaction details for each item and warehouse, including control numbers (e.g. serial number and lot number), source document and financial information.

Users can define the retention period for historical data files.

Inventory adjustments

Most inventory issues are captured within other Pronto Xi modules, such as Shopfloor Manufacturing or Sales. However, in some instances there may be a need to record inventory issues manually.

Issues can be recorded against the following:

• Manufacturing (Factory/WIP or work order)

• Project (General Ledger or Service Call)

• General Ledger

• Maintenance

• Inventory Adjustment

• receipts from purchase order or work order

The manual recording of issues normally occurs within the Purchasing module, but Inventory includes a fast and simple option – called Manufactured Goods Receipt – to receive goods that have been purchased without using the BOM to create and process a formal work order.

Manufactured Goods Receipt is a simple method of recording the receipt of manufactured items into an inventory. As goods that have been allocated to a work order are sometimes returned unused, this option can be used to return the components back into inventory.

Quality analysis

Goods for release can be held until they have passed through your quality checks. If goods do not pass the checks, Inventory allows you to reject, scrap or return the items to the supplier.

View a list of all your reorder items and details

Reorder processing

Inventory includes reordering functions that allow you to automatically create purchase orders and work orders according to selected criteria. These can be reviewed prior to the creation of the actual orders.

Reorder Reports calculate the reorder quantities needed to satisfy your business’s commitments, minimum inventory levels, maximum inventory levels, or a combination of these. Average sales history, average warehouse demand or forecast can also be used to plan requirements.

The reorder processing calculation considers a number of factors, including:

• minimum and maximum days cover

• minimum and maximum inventory levels

• economic order quantity

• lead time

• current inventory level, including current commitments

• items on order from supplier

• in transit

• internal requisitions

Budgets

Inventory holds budget information at the item level, planning group level or item group level.

Budgets can be manually entered for each period of the year. Spread factors – which use weightings/ratios to fix each period’s relative proportion of the annual amount – can also be used.

Pronto Xi offers numerous reports that allow you to compare budgets against actual sales and budget listings.

Costing

Various costs – such as standard, average, FIFO and actual – can be maintained in Inventory for posting purposes, inventory valuations and sales margin reporting.

Inventory valuation reports can be produced at any time using the costing method of your choice and, if necessary, costs can be recalculated based on a range of factors.

Landed costs are calculated as part of the shipment costing process in Accounts Payable.

Kits

Kits are a list of components made up from saleable items that can be optionally selected during the sales order process. For example, a personal computer, keyboard, monitor and mouse can be sold individually or as a kit.

Inventory accommodates various categories of kit component lines, including:

• mandatory

• optional

• variable quantity

• grouped options

Kit pricing can either be generated from the components or simply selected from the item price record.

Stocktake

To help you measure your inventory accuracy, Inventory is able to generate a snapshot view of your holding. Any adjustments are automatically reflected in the General Ledger.

To ensure company policies are adhered to, Inventory supports wall-to-wall and cycle counting techniques, as well as data-capturing techniques such as tickets, barcodes, radio frequency (RF) and cards.

The stocktake process can include:

• Initial pre-stocktake check – Inventory reports on any outstanding inventoryrelated transactions that may need to be completed prior to the final snapshot of the book inventory

• Prepare stocktake – Inventory creates a snapshot file of your inventory holding and, if required, produces a Stocktake Report. A unique stocktake control code is generated as part of this process to facilitate easy identification and parameters

• Stocktake refreeze – Inventory resets the snapshot file if there has been further reprocessing that will affect the book inventory of the original snapshot

• Enter counts – Inventory employs multiple data entry techniques, including manual data entry

• Produce reports – Inventory generates reports to assist with reconciliation, including Uncounted Items, Variation and Valuation reports

• Update stocktake – Inventory performs an update once the stocktake is finalised to make all necessary adjustments to the stock ledger and General Ledger have been made for the appropriate accounting period

About us

We are an Australian developer of award winning business management and analytics solutions. Pronto Xi, our Enterprise Resource Planning (ERP) software, integrates accounting, operational and mobile features in a single system – optimising business processes and unlocking actionable insights. That’s why for more than 40 years, over 1,500 Australian and global organisations, across a wide range of industries, have trusted Pronto Xi to simplify their most complex challenges. With headquarters and our Development Centre located in Melbourne, we have support offices and consultants based across Australia, as well as a global network of Resellers and Solution Partners. Specialised business units within Pronto Software have the expertise to assist you with pivotal technology –Digital Transformation with Pronto Woven, Cloud and Hosting services with Pronto Cloud and Business Intelligence solutions with Pronto iQ. When you choose Pronto Software, you gain a team with deep industry experience, giving us the ability to understand your specific needs and build innovative solutions that drive business growth and revenue.

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