Cleaning Up Inventory

Inventory Edition only

If you didn't have a process or the personnel in place when you starting using inventory... your inventory is probably off. And, when your inventory isn't accurate, you'll need to clean it up. There is not a quick way to delete all your inventory, but the following steps will help. You must complete and maintain ALL of these steps ... leaving out the first two will cause the same problems to come back in the future.

In this article

STEP 1: Clean up old Purchase Orders

First, create a view of your open purchase orders that shows Ordered, Partially Filled, and Over-Filled POs - sort by Order Date and call it something like "Open POs". These PO statuses ultimately have an impact on your inventory (they affect the On Order Qty), so it's important to keep this list up-to-date. 

Any open POs that are older than your typical order fulfillment cycle should be adjusted and closed. Go into each one and either receive the PO or adjust the Ordered Qty to match the Received Qty until the PO is either Not Ordered or Received. 

Here's a video explaining in detail how to create this "Open PO" view:

STEP 2: Create a report to clean up incomplete activities with material

Next, create a report showing all the job activities with material assigned to them that are not complete. Again, these activities affect inventory, so it's important not to leave old ones uncompleted.

Here's a video explaining how to create this report in detail:

STEP 3 Create a serial number detail view to clean up old inventory

For products tracked by serial number, each serial number needs to be adjusted. First create a detailed view of your inventory and then use the examples below to make adjustments. Here's a video with more detail:

Create a serial number detail view on the inventory page. You should have something like this:

  • CASE 1: Instead of a serial number you see (Unserialized). For a serialized product this means the product has been ordered but a serial number has not been defined OR the product was allocated to a job but a serial number was not selected. In this example, 50 sq. ft is on order and 70 sq. ft has been allocated. You can tell this by the values in the associated columns. To find the Purchase Order and the Job, click the product variant Granite Venetian Gold 3CM and select View Inventory Transactions Then, click the Options button and change the date. For example, change the date to 6/10/2011 to see all transactions from that date. You will see something like this:

    Scan the  Serial Number column looking for blanks. Then, look in the corresponding Reference column for the PO number or job name.Serial numbers that are allocated to an activity will be removed from inventory when the activity has a status of complete. Click on the job name to view the job and either delete the allocation or change the status of the activity to complete.
    Products on order will need to be removed from the PO. Double-click on the PO number (001407) and delete the Purchase Order.

  • Case 2: Serial numbers that are allocated. Double-click the job name (Patricia Russo) to view the job and either delete the allocation or change the status of the activity to complete.
  • Case 3: Serial numbers that are not allocated. Click the serial number: #### and select View Serial Number Detail.

    Click on  New Adjustment

    Enter a negative number to remove the balance. For example if the balance is 45.8333 you would enter -45.8333

    You should end up with a 0 balance

  • Case 4: you have serial numbers with negative on-hand balance - this comes from allocating remnants incorrectly ... see related article below to fix these

Once your inventory is cleaned up, you'll want to make sure you have a process to keep it accurate. 
For example:

a. Create purchase orders for all material you bring in
b. Allocate material to jobs before or as it is used
c. Complete job activities as they become complete
d. Track remnants (optional) - see Related Articles
e. Periodically verify that your physical inventory matches what you think you have

You probably need to delegate the allocation and consumption of inventory to your shop manager, unless you already have a person designated to manage inventory. You'll also want to assign a back-up person responsible for inventory.

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