The Stock Account document displays product details and associated settings. Each Product Code exists as an Account (Main) within the INVENTORY Ledger.
Within the Stock Account: Product Code, Product Description, Group, Standard Cost, Current Cost, Selling Price should all be established to allow a product to be included in Purchase Order and Sales Order processing.
The Product Code field allows up to 16 alphanumeric characters.
Search for existing products using a right mouse click. Create a new Product Code via the '*New Product' button from the ribbon.
The first line of description is used on Sales Orders & Invoices etc. The second line is optional.
White fields are calculated during transaction processing of Purchase Orders and Sales Orders.
Products should be allocated a Group. Groups are established at: Documents Parameters > Groups > Product Groups.
As a result of Sales Order processing (Sales Order -> Tax Invoice), Group is displayed as a Sub Account for TRADING : COST OF SALE and TRADING : SALES, in General Ledger reporting.
Typically Standard Cost is used to debit (build value) of the Product Code within the INVENTORY Ledger, when a Purchase Invoice is generated as the conclusion of Purchase Order processing. Purchased Stock is held as Inventory on the Balance Sheet, until sold.
The generation of a Tax Invoice (the conclusion of Sales Order processing) credits (reduces value) at Standard Cost, of the Product Code within the INVENTORY Ledger, as the product is sold and removed from stock. A posting is also made to TRADING : COST OF SALE using Standard Cost. Another posting is made to TRADING : SALES, using a Selling Price. SALES minus COST OF SALE contributes to Gross Profit, reported in Profit or Loss.
Alternatively, Average Cost or Current Cost can be used.
*Depending on setup, Current Cost can reflect (update and store) the most recent (current) Purchase Invoice price for a product.
Future Purchase Orders will default to use the Current Cost.
Where there is a difference between Standard Cost and Current Cost the difference is posted to TRADING : VARIATIONS : PURCHASES.
Average Cost is average purchasing cost of a product over time - given fluctuations in purchase price over time.
Average Cost is dynamically updated with the processing of a Purchase Invoice.
The processing of Purchase Invoices re-computes the Average Cost as follows. A1 := (A0 * S + Q * P)/(S+Q), where A0 is the previous Average Cost, and A1 in the new Average Cost. S is the previous stock quantity, P is the invoice unit cost, and Q is the invoice quantity.
Average Cost for each product may be re-calculated by clicking the “Check Stock” button in the Stock Account document for individual products, or running Reports > Stock > Live Check Balance.
Reports > General Ledger > Ledger Detail: From Ledger: INVENTORY From Account: PRODUCT CODE
Reports > General Ledger > Audit Trail: From Ledger: INVENTORY From Document: Invoice Number
Documents > Parameters > Groups > Product Groups allows the classification of products without GST.
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Additional Stock Account Detail
Allocating a Group enables products to be managed in groups, ie, consolidated reporting of groups.
Groups are established at: Documents > Parameters > Groups > Product Groups
Number of Items held in stock. Progressing a Purchase Order to Goods Received will update this figure, increase stock. 'Received' Purchase Orders).
Number of Items 'on order' from customers. (As a result of clicking 'Register' within a Sales Order).
This field is currently displaying 100 stock items with un-processed Purchase Orders. Further processing of the Purchase Order associated with this product will reduce this field to zero.
Displays the Number of Items available for sale.
View the date this image was edited.
Stock Control Re-ordering & MRP Parameters.
Establish suppliers for automatic stock requisition.
Associate an image or technical drawings.
Internal notes provide for technical specifications and private (not for internet display) details of products.
External notes are available for incorporation into Quotes & Orders, and internet presentation in eCommerce operations via Lennox Computers Active Server module.
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Deleting with the Red X - From the Ribbon
Using the Red X from the Ribbon to delete a Product Code(s) will remove access to the Product from all documents. Historical reporting of deleted Product Codes will remain. In the event that a deleted Product Code is re-Keyed into the Stock Account as a "new or recalled" product, historical ledger entries for this product are once again associated with the "new or recalled" product moving forward.
Product Codes proposed for Red X Deletion, or, given a Status of INACTIVE (indefinitely), may have the their ledger balances reviewed. Typically such Product Codes would have a nil value in the Balance Sheet.
Marking a Product Status as INACTIVE
Using the Status field in the Stock Account, a Product Code(s) can be assigned an INACTIVE Status. *The INACTIVE Status must be defined as below, at: Documents > Stock > Status. The Unavailable tick is the important inclusion. The name of the Key INACTIVE is not important, another term such as DELETED, or REMOVED can be used.
The Product Code below is given the Status INACTIVE. This will result in the Product Code not appearing as available for selection in the Stock Account, Sales Order, and other documents with the F12 / Right Mouse click search.
*The INACTIVE Product Code can however be manually keyed or found with Prev / Next from the ribbon. *INACTIVE Products by default will not appear in Stock reports unless the 'Active Only' parameter in the report is de-selected.
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Marking a Product Status as INACTIVE
Product Code DWV C050 is not visible with the F12 / Right Mouse click search.
Using the toggle Padlock Icon, INACTIVE Product Codes are made available for selection. If necessary the INACTIVE Status may then be edited or blanked.
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Marking a Product Status as INACTIVE
DWV C050 marked as INACTIVE results in the product not appearing in default report output. 'Active Only' is a default Parameter
*With the 'Active Only' parameter de-selected, DWV C050 will appear in the report.
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Stock Account
• Product Code - Identification of product. Up to 16 Alpha-Numeric characters. • Product Description - First line of description appears on Sales Orders, Invoices, etc. • Group - Register a product within a "Group" - Establish at: Documents > Parameters > Groups > Product Groups. • Standard Cost - A set fixed cost for a product, typically for manufacturing applications. • Current Cost - The most frequently and generally used value for the cost of a product. • Per - This setting allows products to be purchased and sold in a variety of measurements. • Bin - Bin Location - Establish at: Documents > Parameters > Bin Locations. • Minimum Stock - Set minimum stock levels for automatic requisitioning. Blank is regarded as zero. - If a Minimum is set, a Maximum should also be set for Stock Deficient reporting, (Maximum can = Minimum). - Minimum Stock required to be on hand. - This figure will trigger/influence/suggest quantity of stock to be re-ordered, in relation to the Stock figure. - If Stock is greater than the Minimum Stock, Auto Purchase Order will not place an order. • Maximum Stock - Set maximum stock levels for automatic requisitioning. Blank is regarded as zero. - Maximum Stock required to be on hand. - This figure will trigger/influence/suggest quantity of stock to be re-ordered, in relation to the Stock figure. - When an Auto Purchase Order is triggered by Minimum Stock, stock is ordered to reach the Maximum Stock. • Pack Size - Number of products in a Pack. • Min Order Qty - Minimum order quantity. • Multiple - Order in multiplies of....
• Type - Group products by type - Establish at: Documents > Parameters > Product Types. • Bulk Bin - Bulk Bin Location - Establish at: Documents > Parameters > Bin Locations. • Nett Prices - Prices for this product are net, no discount is applied. • Freight Rate - Freight Rate per Unit. • Status - Group products by Status - Establish at: Documents > Parameters > Stock Status. • Colour - Group products by Colour - Establish at: Documents > Parameters > Stock Status. • Non Stock - Typically for fabricated products. Check this box if Components are used to define this product in Sales Order Processing. There are no COGS or Inventory postings associated with the invoicing of Non Stock products, as COGS and Inventory postings are associated with the components, which make up the FABRICATED (Non Stock) product.
• From Product - Facilitates the copying of Stock Account data from one product code to another. • Previous - A previous/historical record. Relevant where a product has undergone a change in Product Code. • Suppliers Orders - The number of items on order from a supplier. • Due Date - Date for next shipment. • Uninvoiced - Received but not confirmed. • In Production - Work Orders Issued from Production Orders • Weight - Tonnes per cubic metre. (e.g. water is 1.0 t/m3, hardwood is 1.25/m3, petrol is 0.7489 t/m3). • Cubic Weight - Cubic Weight. • Purchase Discount - On Purchase Order. • Duty - For importation. • Part Number - Secondary Key. • GTIN - Global Trade Item Number is an identifier for trade items.
• Stock - Number of items currently in stock. • Customer Orders - Number on items 'Registered' in a Sale Order Document. • Used In Production - • Available For Sale - Number of items available for sale. • Uninvoiced Qty - Received but not invoiced by Supplier. • Transhipments In - Internal product movement between entities within an enterprise. • Transhipments Out - Internal product movement between entities within an enterprise. • Average Cost - Average purchasing cost of a product over time - given fluctuations in purchase price over time. • Desired Items - For stock adjustments. • Desired Stock - For stock adjustments. • Desired Average - For stock adjustments. • Unit - This setting allows products to be purchased and sold in a variety of measurements. • Freight Amount - last freight on this item.
• Selling Price 1 - Selling price • Selling Price 2-6 - Additional selling price which may be applied to particular customers or circumstances. • Documents > Setup > Price Names is used to establish a names, ie Retail, Trade, Builder... for Selling Price 1,2,3. GST can also be selected to be displayed in the Stock Account.
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• Mark Up % - Add a percentage mark up. E.g. a product with Standard Cost and Current Cost of $1, a 100% Mark Up may result in a Stock Account Selling Price of $2.20 (to account for purchase costs in the Stock Account not presenting / displaying a included GST, subject to Company Data settings). Setup > Selling Prices marked to include GST may also be relevant. Further / subsequent GST calculation may take place during Sales Order processing. Company setup may be configured to present and use any desired markup, price, and GST presentation. • Min Buy - Set a minimum quantity to be sold in a Sales Order. • Commission - Supplier Commissions • Width - Width of a product. • Thickness - Thickness of a product. • Length - Length of a product.
• Suppliers - Establish preferred suppliers in the stock account for automatic requisitioning. • Code - Product code of the the supplier. • Price - Price at which the suppler sells. • Currency - Establish at: Document > Creditor > Account.
• Active Server Group - The product group. • No Price - no price on active server. • Sort Line - Line Number in certain reports. • Online - Show in LILAC Online. • Port - Import or destination port. • Web Address - URL.
Carton - cm • Length - Carton length (centimetres) for volumetric shipping calculations. • Width - Carton width (centimetres) for volumetric shipping calculations. • Height - Carton height (centimetres) for volumetric shipping calculations.
• Computer Aided Design - Draw in this space with in-built LILAC CAD functions.
• Internal Notes - Include notes for internal viewing. • External Notes - Include notes for external viewing.
LILAC Average Cost Stock Value Accounting - Points on this topic.
1. Purchase Invoice Time The processing of purchase invoices re-computes the average cost as follows A1 := (A0 * S + Q * P)/(S+Q), where A0 is the previous Average, A1 in the new average, S is the previous stock quantity, P is the invoice unit cost, and Q is the invoice quantity.
2. Check Balance There are two ways that Average Cost for each product may be (re)-calculated. Clicking the “Check Stock” button in the Stock Account document for individual products, and running he “Live Check Balance” Report for across the board re-calculation.
3. FIFO Product Movement It is assumed that product moves through the warehouse on a “First-in-first-out” basis in so far as there may be any variation in value with respect product age.
4. FOREX Processing All postings the INVENTORY accounts are conducted in $AUD.
5. Sales Invoice Time The average does not change. It is used to compute COST OF SALES and INVENTORY postings.
6. Use Actual Landed Cost This feature setting in the Setup Company Data document invokes the Average Costing behaviour in LILAC except with respect to any “Serial Numbered” or “Batch Numbered” products, in which case “actual” means actual.
7. Stock Take in past period. The Average Cost may be reset to suit a past period by running the Live Check Balance report in the past period to permit stock take processing use the appropriate averages. It is important that no future period transaction are processed at that time until the Live Check Balance is re-run the latest accounting period.
