Insert Chapter Head

Exercise- Inventory
Exercise - Create a new warehouse layout
For this exercise, you need to create a warehouse in company USMF.

This warehouse has the following format for its location: Aisle-Rack-Shelf, which will be
represented with numerical values such as 001-01-01.

The default location is 450 X 250 X 200 as width, depth, and height. You do not want to
create outbound docks or bulk locations.

Set the default location capacity

1. Open company USMF.
2. Go to Inventory management > Setup > Inventory and warehouse
management parameters.
3. Select the Locations tab.
4. In the Standard width field, enter 450.
5. In the Standard depth field, enter 250.
6. In the Standard height field, enter 200.
7. Select Save.
8. Close the page.

Define the location name format

1. Go to Inventory management > Setup > Inventory breakdown > Warehouses.
2. Select New.
3. In the Warehouse field, type 17.
4. In the Name field, type Raw materials.
5. In the Site field, select the drop-down button to open the lookup.
6. In the list, find and select site 1.
7. Expand the Location names section. The options in this section define the default
format for location names. For this example, you'll include the aisle number, rack
number, and shelf number.
8. Set the Include aisle option to Yes.
 9. Set the Include rack option to Yes.
10. In the Format field, for the rack, type -##.
11. Set the Include shelf option to Yes.
12. In the Format field, for the shelf, type -##.
13. Select Save.

Define warehouse locations

1. On the Action Pane, select Warehouse.
2. Select Location wizard.
3. Select Next.
4. Select the Outbound docks option.
5. Select the Bulk locations option.
6. Select Next until the Finish button appears.
7. Select Finish.
8. Close all pages.

Exercise - Create a costing version, item

model group, and tracking number
group
As a warehouse employee at company USMF, you need to create a standard cost
version to record products that use the item model group with inventory model
of Standard. You also need to group items based on the FIFO inventory model.

Therefore, you need to create an item model group, a cost version, and tracking number
group to allocate batch and serial numbers.

Create a costing version

1. Go to Cost management > Predetermined cost policies setup > Costing
versions.
2. Select New.
3. In the Costing type field, select Standard cost.
4. In the Version field, type SeahorseST.
5. In the Name field, type Seahorse Standard Costing.
 6. In the Block activation field, select No.
7. Select Save.
8. Close the page.

Create an item model group

1. Go to Inventory management > Setup > Inventory > Item model groups.
2. Select New.
3. In the Item model group field, type STDN.
4. In the Name field, type Standard Cost.
5. In the Inventory model field, enter Standard cost.
6. Expand the Inventory policies section.
7. In the Approved vendor check method field, enter No check.
8. Select Save
9. Select New.
10. In the Item model group field, type FIFO.
11. In the Name field, type FIFO.
12. Close the page.

Create a tracking number group

1. Go to Inventory management > Setup > Dimensions > Tracking number
groups.
2. Select New.
3. In the Number group field, type ASer.
4. In the Name field, type Auto-Serial.
5. Select No in the Date field.
6. Select No in the Lot ID field.
7. Select Yes in the Number sequence No. field.
8. In the Number sequence code field, select any number sequence.
9. Select Yes in the Only for inventory transactions field.
10. Select Yes in the On physical update field.
11. Select New.
12. In the Number group field, type USer.
13. In the Name field, type Unique-Serial.
14. Select No in the Date field.
15. Select No in the Lot ID field.
16. Select Yes in the Number sequence No. field.
 17. In the Number sequence code field, select any number sequence.
18. Select Yes in the Only for inventory transactions field.
19. Select Yes in the On physical update field.
20. Set Per qty. to 1.
21. Select New.
22. In the Number group field, type Batch.
23. In the Name field, type Auto Batch.
24. Select No in the Date field.
25. Select No in the Lot ID field.
26. Select Yes in the Number sequence No. field.
27. In the Number sequence code field, select any number sequence.
28. Select Yes in the Only for inventory transactions field.
29. Select No in the On physical update field.
30. Close the page.

Exercise - Use a movement journal

In USMF, you need to manually update the on-hand inventory by using an Inventory
movement journal.

1. Go to Inventory management > Journal entries > Items > Movement.

2. Select New.
3. In the Name field, select the drop-down button to open the lookup.
4. Select Imov. It’s a good practice to use different journal name templates for the
different business purposes.
5. In the Offset account field, specify the value 140200. This is the offset account
that will be the default account on the journal lines. It’s possible to override the
default to assign different offset accounts for each line.
6. Select OK.
7. Select New.
8. In the Item number field, select the drop-down button to open the lookup.
9. Select item A0001.
10. Select the Inventory dimensions tab.
11. In the Site field, select the drop-down button to open the lookup.
12. Select site 1.
13. In the Warehouse field, select the drop-down button to open the lookup.
14. Select warehouse 13.
15. In the Location field, select the drop-down button to open the lookup.
16. Select location 13.
 17. In the Quantity field, enter a number.
18. Select Save.
19. Select Post.
20. Select or clear the Transfer all posting errors to a new journal check box. If you
enable this option, any lines that fail to post will be copied to a new journal. You
can use the information in the log to correct the issues and then re-post the lines.
21. Select OK.
22. Close all pages.

Exercise - Use an inventory adjustment

journal
As a warehouse manager in the USMF company, you need to adjust stock levels of
products in the warehouse.

1. Go to Inventory management > Journal entries > Items > Inventory

adjustment.
2. Select New.
3. In the Name field, select the drop-down button to open the lookup.
4. In the list, select the inventory adjustment journal name that you want to use.
Other fields will be populated based on the setup of the inventory adjustment
journal name that you select.
5. Select OK.
6. Select New.
7. In the Item number field, select D0001.
8. In the Site field, select the drop-down button to open the lookup.
9. In the list, select site 1.
10. In the Warehouse field, select the drop-down button to open the lookup.
11. In the list, select Warehouse 13. If you have selected an item with Location as a
mandatory dimension, you would have to specify the location here.
12. In the Quantity field, enter a number. The Cost price field specifies the cost per
unit for inventory receipts. If the cost is not specified for the item number, or if you
wanted to change it manually, you would do this here.
13. Select Validate.
14. Select OK.
15. Select Post. When you post this kind of journal, an inventory receipt or issue is
posted, the inventory level and value are changed, and ledger transactions are
generated.
 16. Select OK.
17. Close all pages.

Exercise - Use a transfer journal

As a warehouse employee in the USMF company, you need to perform the process of
creating and posting an inventory transfer journal to register movement of an item from
one location in a warehouse to another.

In this example, you will transfer an item within the same warehouse, from a license
plate-controlled location to a location that is not license plate-controlled.

1. Go to Inventory management > Journal entries > Items>Transfer.

2. Select New.
3. In the Name field, enter or select ITrf.
4. Select OK.
5. Select New.
6. In the Item number field, enter or select A0001.
7. In the From site field, enter or select 2.
8. In the To site field, enter or select 2.
9. In the From warehouse field, enter or select 24.
10. In the To warehouse field, enter or select 24.
11. In the From location field, enter or select FL-001.
12. In the To location field, enter or select BULK-001.
13. In the Quantity field, enter a number.
14. Select the Inventory dimensions tab.
15. In the License plate field, enter or select 24.
16. Select Save.
17. Select Post.
18. Select OK.
19. Select Inventory.
20. Select Transactions.
21. Close all pages.

Exercise - Use a counting journal

As a warehouse worker in the USMF company, you need to perform the process of
creating and posting an inventory counting journal to count a specific item at a location
in the warehouse.

1. Go to Inventory management > Journal entries > Item counting > Counting.
2. Select New.
3. In the Name field, select the drop-down button to open the lookup.
4. In the list, select the Inventory counting journal icon. Other fields will be
populated based on the setup of the inventory counting journal name that you
select.
5. In the Worker field, select the drop-down button to open the lookup.
6. In the list, select the worker you want to use.
7. Select the Select option.
8. Select OK.
9. Select New.
10. In the Item number field, select the drop-down button to open the lookup.
11. In the list, find and select A0001.
12. In the Site field, select the drop-down button to open the lookup.
13. In the list, find and select site 2.
14. In the Warehouse field, select the drop-down button to open the lookup.
15. In the list, find and select warehouse 24.
16. In the Location field, select the drop-down button to open the lookup.
17. In the list, find and select location BULK-001.
18. In the Counted field, enter a number.
19. If you enter a counted number that’s different from the number shown in the On-
hand field, the Quantity field is updated to show the discrepancy.
20. Select Save.
21. Select Post. When you post an inventory counting journal, if the counted amount
differs from the amount that’s reported in the On-hand field, an inventory receipt
or issue is posted, the inventory level and value are changed, and ledger
transactions are generated.
22. Select OK.
23. Close all pages.