Government of Bermuda

Inventory

JDE EnterpriseOne 9.0

Functional Design Specification

September 21, 2009

Draft
Executive Summary

The Government of Bermuda is upgrading their version of J.D. Edwards from World A7.3 to EnterpriseOne 9.0. Currently, only two
departments (Police and Corrections) utilize JDE World Inventory.

The EnterpriseOne Inventory module will be utilized to track inventory quantities, locations and costs for all stores items.
Transactions will include inventory issues, transfers and adjustments, as well as all functions related to annual (and other periodic)
stock counts. The Inventory module is fully integrated with the E1 General Ledger (as well as all other E1 modules), resulting in a
significant improvement in efficiency related to reconciliations currently done between external systems/manual processes and JDE.

Assumptions for EnterpriseOne, Phase 1

1. The following departments will utilize E1 for inventory:
a. Works and Engineering five sites
b. Department of Public Transportation
c. Police Department
d. Marine & Ports Dockyard stores
e. Bermuda Regiment
f. Ministry of Education
g. Department of Corrections
h. Department of Conservation Services
i. Immigration
2. Departments will be responsible for creating and maintaining their own inventory item master and branch data.
3. Inventory will be costed using the average costing method.
4. No historical information will be converted to E1. Legacy systems may be maintained for a period of time to provide historical
data. These systems include:
a. W&E ASR
b. DPT iMaint
c. Marine & Ports iMaint, QuickBooks
d. Ministry of Education RealWorld
e. Department of Corrections - MYOB
f. Department of Conservation Services QuickBooks
Report Requirements
The following reports have been identified as a requirement in order to allow the JD Edwards E1 Inventory system to meet the
Business Requirements defined in this document.
Report
Requirement From Report # Description of Report Requirements
Process #
2.0 Custom W&E adds a percentage upcharge to inventory issues. Report will search for G/L
transactions related to these issues, calculate the upcharge and create a new
G/L entry to book the additional expense and related revenue.
2,3,4 Custom Inventory Issues, Returns, Transfers Report
Daily Custom Inventory Valuation Report

Interface Requirements
The following interfaces are required in order to allow the system to meet the Business Requirements defined in this document.

Interface Relates to
Description of Interface Requirements
Requirement # Requirement #
Post Office POS system to create Inventory entries in G/L (TBD)
Table of Contents

Section Page

1. SET UP NEW INVENTORY ITEM.................................................................................................................... 1

FLOWCHART: SET UP NEW INVENTORY ITEM........................................................................................................2
2. ISSUE AN INVENTORY ITEM......................................................................................................................... 3
FLOWCHART: ISSUE AN INVENTORY ITEM............................................................................................................. 4
3. RETURN AN ISSUED ITEM TO STORES.......................................................................................................5
FLOWCHART: RETURN AN ISSUED ITEM TO STORES.............................................................................................6
4. TRANSFER AN INVENTORY ITEM BETWEEN BRANCHES.........................................................................7
FLOWCHART: TRANSFER AN INVENTORY ITEM BETWEEN BRANCHES.......................................................................8
5. WRITE OFF OBSOLETE INVENTORY...........................................................................................................9
FLOWCHART: WRITE OFF OBSOLETE INVENTORY................................................................................................10
6. PROCESS STOCK COUNT........................................................................................................................... 11
Flowchart: Process Stock Count.................................................................................................................... 13
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1. Set up new inventory item

Starts With: Need for new inventory item is determined

Ends With: Item has been added to inventory master and appropriate branch

Description: This table/flowchart documents the process of creating a new inventory item.

Step
Number Responsible Task Description
End-user,
manufacturer,
inventory The requirement for a new inventory item can result from
1.0 management Need for new inventory item is determined a variety of sources.
End-user, inventory Need is communicated to system user
2.0 management responsible for new item setup E-mail, verbal, request form
Document item number, description, unit of
measure, primary stock location (if known), All pertinent information is assembled prior to entering
3.0 Inventory admin primary supplier, reorder point (if known) item in system.

4.0 Inventory admin Enter item in Item Master

5.0 Inventory admin Add item to appropriate branch(es)

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Flowchart: Set up new inventory item

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2. Issue an inventory item

Starts With: End-user requests item for use

Ends With: Inventory balance updated, expense account charged

Description: This table/flowchart documents the process of issuing an inventory item.

Step
Number Responsible Task Description
Complete stores requisition/issue note
including expense account (and work order
1.0 Requestor number if applicable)

2.0 Requestor Bring/send document to stores

3.0 E1/Storeman Is item in stock?

4.0 Go to Create PO process

5.0 Storeman Retrieve item from stores location

6.0 Storeman Item is given/delivered to requestor

7.0 Requestor Sign form to confirm receipt

Issue transaction entered into system with

8.0 Storeman/admin appropriate expense account information

Run custom batch program to calculate Program should run in the evening after the close of
9.0 E1 expense upcharge/revenue entries business.

10.0 Purchasing Print Inventory Issues Report

9.0 Accounts/manager Approve Inventory and G/L batches

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10.0 Controller Post Inventory and G/L batches

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Flowchart: Issue an inventory item

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3. Return an issued item to stores

Starts With: Item no longer needed or wrong item issued

Ends With: Inventory balance adjusted, expense account credited

Description: This table/flowchart documents the process of returning an inventory item to stock.

Step
Number Responsible Task Description

1.0 End user Item returned to stores with original issue note

2.0 Storeman Return item to stock location

3.0 Storeman Write stock location on original issue note

Negative issue transaction entered into system Negative inventory issue will restore inventory and credit
4.0 Storeman/admin with appropriate expense account information original expense account.
Program should run in the evening after the close of
Run custom batch program to calculate business. Upcharges will be booked opposite of original
5.0 E1 expense upcharge/revenue entries (W&E only) entries.

6.0 Purchasing Print Inventory Issues Report

7.0 Accounts/manager Approve Inventory and G/L batches

8.0 Controller Post Inventory and G/L batches

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Flowchart: Return an issued item to stores

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4. Transfer an inventory item between branches

Starts With: Branch requires item that is stocked at another branch

Ends With: Inventory balance transferred

Description: This table/flowchart documents the process of transferring inventory items between branches.
Step
Number Responsible Task Description

1.0 Purchasing Review Suggested PO Report

2.0 Purchasing Review on hand balances at other branches

3.0 Purchasing Contact from branch to arrange transfer

4.0 Storeman Prepare transfer note

5.0 Storeman Pull inventory from stock location

6.0 Driver Physically move goods to requesting branch

7.0 Driver Return signed transfer note to from branch

8.0 Storeman/admin Enter inventory transfer transaction in system

8.1 E1 Print Inventory Transfers Report

9.0 Accounts/manager Approve Inventory G/L batch

10.0 Controller Post Inventory G/L batch

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Flowchart: Transfer an inventory item between branches

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5. Write off obsolete inventory

Starts With: Inventory identified as obsolete

Ends With: Inventory removed from on hand stock

Description: This table/flowchart documents the process of removing obsolete inventory from stock.
Step
Number Responsible Task Description

1.0 Inventory management Identify inventory items as obsolete

2.0 Authorized manager Review item details, costs

Authorize inventory write-off and provide

3.0 Authorized manager account number

4.0 Storeman/admin Enter inventory issue transaction

5.0 Accounts/manager Approve Inventory G/L batch

6.0 Controller Post Inventory G/L batch

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Flowchart: Write off obsolete inventory

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6. Process stock count

Starts With: Stock count done periodically per departmental policy

Ends With: Inventory reconciled with physical count

Description: This table/flowchart documents the process of performing a stock count and updating the perpetual inventory records.
Step
Number Responsible Task Description

1.0 Inventory management Identify items and/or locations to be counted

W&E conducts quarterly stock counts for the top100 items
by value, by issue volume, and by value for items coded
2.0 Purchasing Is count a quarterly Top 100 count? as obsolete.

Run ABC Analysis program to identify top x% of

3.0 Purchasing inventory items by usage

4.0 Inventory management Select items and/or locations to be counted Run batch program to perform selection

5.0 Inventory management Print count sheets

6.0 Stores personnel Perform physical count

7.0 Inventory management Enter physical count in system

8.0 Inventory management Print variance report

9.0 Finance Approve variance?

Perform second count on items/locations in
10.0 Stores personnel question

11.0 Inventory management Print variance report

12.0 Finance Approve variance?

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13.0 Inventory management Research variances

14.0 Finance Approve stock count

Update variance to perpetual on hand balance
15.0 Inventory management and G/L

16.0 Accounts/manager Approve Inventory G/L batch

17.0 Controller Post Inventory G/L batch

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Flowchart: Process Stock Count

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