How do I create an Inventory-Managed Product?
In order to create products with tracked inventory is start by creating a New Product in Sales - More - Products and Services - New Product or Service. You will be offered the option to "Manage Inventories."
Tracked products will:
- Generate inventory movements, if a Receiving Note is used on the purchase side (inventory entries) and/or a Delivery Note on the sales side (inventory withdrawals)
- Will trigger the Cost of Goods sold that are posted into your P&L the moment you deliver a product using a delivery note
- Will reserve products in your stock on hand the moment you create a Picking List
- Will show in Stock on hand in Inventory - Stock
- Can also be used to manually update the stock on hand using Inventory Count Sheets, Inventory Entries and Inventory Withdrawals
When to use a non-inventory tracked product
If you create a Sales - More - Products and Services - New Product or Service and select "NO" in the field "Track Inventory", OneUp will:
- Not generate any inventory movements
- Post the complete Cost of Goods sold right into your P&L the moment you create a bill or an expense for your purchased product
- Not allow you to create a picking list
- Not show the products in your stock on hand in Inventory - Stock
- Not let you use any manual update of stock on hand using inventory count sheet, inventory entry or inventory withdrawal
Non-tracked products can be used to register costs you purchase (like shipping, handling), but of course also to record any kind of product that is used as consumable for example.
In purchase documents, it is not possible to register any service into purchase lines (exception: in a bill, you would be able to use the expense tab to do so).
If you buy a service from a vendor, please create a non tracked product and you will be able to select this into a corresponding purchase document.
For sales documents, non tracked products will produce sales related accounting transactions, but no product specific cost of good sold entries into the P&L
Invoices, Delivery Notes and Inventory
Delivery Notes create inventory withdrawals but invoices do not. In order to send an invoice and affect inventory, you will first need to create a sales order or a delivery note and then convert that into the invoice. Keep in mind this inventory movements are only created for products that are inventory managed.
Vendor Bills, Receiving Notes and Inventory
Receiving Notes create inventory entries but vendor bills do not. In order to affect inventory, you will first need to create a purchase order or a receiving note and then convert that into the vendor bill. Keep in mind this inventory movements are only created for products that are inventory managed.
Automatically updating inventory with Delivery Notes and Receiving Notes
This is an automatic process. There are two kinds of product : the ones that are inventory managed, and the ones that are not. If you use a product that is inventory managed in a delivery note (or receiving note), the inventory is updated.
By default, when you create an inventory-managed product, OneUp will notify you when a particular action you are taking will cause it to have a negative inventory balance. This includes creating a sales order, delivery note or manual inventory withdrawal containing inventory-managed products.
Creating/inserting opening balances for inventory
With New Inventory Count Sheet, (Inventory - More - Inventory Count Sheets - New Inventory Count Sheet) you can set up in one screen the actual quantity of each inventory managed product you've got. This can be used to make inventory adjustments, or to set up a first inventory. Each time you make an inventory count sheet, it becomes the active inventory count sheet and the prior one is saved as an historic log.
Note: Inventory count sheets cannot be deleted, a new one must be created to override it.
Adjusting the Cost of Goods sold for my products
Your inventory value is shown in the balance sheet and also, when you generate a New inventory Count Sheet in Inventory - More - Inventory Count Sheets - New Inventory Count Sheet.
Please note that once you generated such a count sheet and validated with DONE, you won't be able to modify or delete it for audit reasons.
In a New inventory Count Sheet, you will get the possibility to not only adjust your total stock on hand quantity, but also the WAP (weighted average price = Cost of Goods sold) for each product. The adjustment of the value will then modify your total inventory value in the assets in your balance sheet as well as future cost postings of a product, when you sell it.
How do I add landed cost such as freight, duty etc. as part of my cost to my product?
OneUp does not offer landed cost (shipping, custom, handling) addition or a landed cost factor.
You will need to track those additional costs and update the WAP from time to time to include the additional cost into your normal WAP product costs.
Register your landed cost either in an expense or in the expense tab in a bill. Your landed cost expenses will be posted into your CoGs, if you select an according account from your chart of accounts.
Of course you are free to use a non tracked product instead of an expense or the expense tab in your bill.
Either way will allow you to evaluate the total landed costs. Should you use non tracked products, you check the according product entries, but in any case, you will get the total cost visible in your accounting.
To correct your product cost, please go to Inventory - More - Inventory Count Sheets and modify the WAP in the field “adjusted WAP”.
An increase of your WAP will then decrease your CoGs accordingly and make up for the landed cost expenses posted earlier.
Using multiple warehouses with OneUp
OneUp allows the selection of different storage locations for inventory management.
Locations can be used as "in or out" locations, for example, one can be used for delivery, the other one for receiving. You can also perform Inventory Adjustment per location, or transfer stock from one location to another.
Handling products that should have different costs
If you have products that are for example obsolete or discounted in any way, we recommend transferring those into a separate location and create an inventory count sheet for that location, to adjust the WAP (Weighted Average Price = product cost).
You normally sell product A for $10 and have a cost of $6, you sell from location A.
Now you have also old, obsolete products A that you would sell for $6 and that have a remaining cost of only $2 due to depreciation.
You would then create location B and transfer those obsolete ones from A to B. Then you would create an inventory count sheet for your location B and adjust the WAP from $6 to $2.
When you create a sales order for product A, you will be able to select from which location you wish to sell and then get the correct CoGs for your sale.
Does OneUp support Manufacturing-related functions?
Functions related to manufacturing are not currently available in OneUp. These include:
- Product Trees
- Block/Lot numbers
- Multi-level Bills of Material
These features will be made available once the Manufacturing Package is brought to OneUp. Please note that there is no timeline set yet.
A manual workaround would be, that you have your components inventory tracked and create manual inventory withdrawals, when you need them to produce your finished good.
Once the end product is produced, you would need to make sure, your product shows "Standard Cost" as costing valuation method when you create the product (Sales - More - Products and Services - New Product or Service).
Manually calculate your Cost of Goods sold and set this up to have your product cost valued and recorded in accounting the moment you deliver.
Your finished good must then be entered manually into your stock on hand using a New Inventory Entry sheet (Inventory - More - Inventory Entries - New Inventory Entry).
How do I see my inventory value at a specific date in the past?
Please note that the inventory count sheet will always show the quantity and value as at the very moment you generate this report.
You can always check your inventory value at a specific date in the balance sheet in Reports - Accounting.
Should you need the quantity and value by product, you would need to generate an inventory count sheet and subtract inventory entries as well as add inventory withdrawals for the time period between your specific date in the past and the date you generate the inventory count sheet.