Microsoft Dynamics GP Inventory Control v2018 PDF

Microsoft Dynamics GP
Inventory Control
Series GP 2018
Contents
Course Objectives 5
Email Pro Within a Company 6
1) Overview and Setup 7

1.1 Reason Code Setup 10
1.2 Inventory Control Setup 11
1.3 Unit of Measure Setup 15
1.4 Price Level Setup 17
1.5 Price Group Setup 17
1.6 Lot Category Setup 18
1.7 Stock Calendar Maintenance 19
1.8 Price Group Setup 20
1.9 Lot Category Setup 20
1.10 Stock Calendar Maintenance 21
2) Item and Pricing Setup 23

2.1 Item Class Setup 23
2.2 Item Maintenance 34
2.3 Item Maintenance Options 40
2.4 Item Maintenance Options 43
2.5 Suggest Items 45
2.6 Item Kits 48
2.7 Item Sites 49
2.8 Item Quantities 51
2.9 Item Site Assignment 53
2.10 Item Creditors Maintenance 54
2.11 Item Price Lists 56
Microsoft Dynamics GP Inventor Control | < Date Created>

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Contents
2.12 Item Purchasing Options 62

2.13 Item Stock Count Cycles 63
2.14 Item Debtor Maintenance 65
3) Daily Procedures 66
3.1 Inventory Batch Entry 66
3.2 Adjustments and Variance Transactions 68
3.3 Item Transfers 75
3.4 Bin Transfer Entry 81
3.5 In-Transit Transfer 81
3.6 Stock Count Scheduling 83
3.7 Stock Count Entry 87
4) Editing and Removing Records 96

4.1 Change, Inactivate or Delete Records 96
4.2 Reconcile 99
4.3 Adjust Costs 100
4.4 Change Standard Cost for periodic valuation items 101
4.5 Change Valuation Methods 102
4.6 Change Decimal Places 103
4.7 Price List Utilities 105
4.8 Remove Bins 105
4.9 Using Enquiry Windows 106
4.10 Inventory All in One 106
4.11 Reports 118
4.12 Historical Received not Invoice Report 122
4.13 Report Lists 123

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Contents
5) Period-End Procedures 124

5.1 Period-End Procedures 124
5.2 Year-End Closing Procedures 126
6) Inventory Control GP2018 Evaluation Form 129

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IMPORTANT
This training manual is not a process document but rather
a generic training document that helps facilitate Professional
Advantage training objectives.
Each company using Dynamics will utilize the functionality in
a wide variety of ways. Your specific company processes
will be discussed during training.
Please make notes in this manual so you can refer back
to the way your company processes utilise the discussed
functionality.
This manual should be used alongside the Printable Manuals
found under the Dynamics Help Menu. These can be accessed
by using ALT-H and selecting Printable Manuals.

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Email Pro Within a Company
EMAIL PRO
Collection Bank Fixed

Management Reconciliation Assets
EMAIL PRO
BANK PRO BANK PRO
Receivable General Payables

Management Ledger Management
EMAIL PRO EMAIL PRO
Sales Order Inventory Purchase

Processing Management Orders

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1) Overview and Setup
The Objectives are:

• List features available in the Inventory Control module
• Set up a User Category
• Set up internal document numbers
• Set up multiple bin functionality
• Set quantity decimal places
• Set up override privileges
• Set up default entries throughout the module
• Set up a Unit of Measure Schedule
• Set up a Price Group
• Set up a Price Level
• Set up item price levels
• Set up item price groups
• Set up a Lot Category
• Set up working and non-working days and times
• Setup Reason Codes to identify causes for Inventory transactions and changes.
INTRODUCTION
Welcome to Microsoft Dynamics™ GP Inventory Control, an integral component of the inventory management
system. Microsoft Dynamics GP offers a streamlined solution to your total business needs by providing
inventory information quickly, efficiently, and accurately. With Inventory Control, you gain the insight needed to
make better, timelier business decisions. You will also be able to manage your inventory on a site-by-site basis.
This chapter focuses on the windows used to set up Inventory Control. Use the system setup checklist to
assign users to specific tasks and to track which tasks have been completed. This checklist is available in the
application and can be used to track all setup windows in Microsoft Dynamics GP.
Before setting up Inventory Control, be sure to complete the following setup procedures.
• Company Setup
• Financial Setup
• Posting Setup
If you have not completed all of the tasks associated with these setups and require help, use the GP
Foundation and GP General Ledger training curriculum to guide you. Complete all of the setup procedures
before continuing with the procedures in this chapter.

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FEATURES AND BENEFITS
Inventory Control is a computer application that helps you create and maintain item records and item classes,
enter and edit transactions, and print inventory analysis reports. Information compiled in Inventory Control is
used to generate the Purchase Advice Report, Transaction History Report, Stock Status Report, and other
important inventory reports.
CREATE ITEM CLASSES

Creating and using item classes allows you to:
• Shorten the item setup process by assigning the same information to many items at once.
• Change or add information for many items, by entering the changes once and then rolling down the
changes to items assigned to the class.
CREATE ITEM CATEGORIES

Create up to six item categories to define broad groups of items in inventory. Within each category, you can
assign an unlimited number of values. Categories provide greater flexibility when sorting reports and tracking
movement patterns in your inventory.
MAINTAIN ITEMS
Once item records have been created, you can track information about lot-numbered and serial-numbered
items, and assign a unique price list. Valuation methods also may be selected on a per-item basis.
MAINTAIN MULTIPLE SITES

Once you have created item records, you can track item quantities at multiple sites or locations.
MAINTAIN MULTIPLE BINS

Once an item/site record has been created, you can track item quantities at the bin level. Assign bins to a site
and identify default bins for an item/site combination.
MAINTAIN A COMPANY STOCK CALENDAR

The Stock Calendar provides the ability to set working and non-working days specifically for inventory counting
purposes. In addition to tracking working days, you can enter other company settings such as shifts
and start time.
MAINTAIN REASON CODES

Use the Reason Code Setup window to create, modify and delete reason codes. A reason code is used to
identify causes and track cost amounts for item stock movements and adjustments. Once reason codes are set
up, they can be assigned to a line item on inventory adjustments, variances, transfer and stock counts.

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CUSTOMIZE TRANSACTION ENTRY AND POSTING
Transactions can be posted:
• Individually (transaction level posting)
• In single-use batches
• In recurring batches
Recurring batches are useful for transactions that occur regularly, like an increase adjustment for an item
received on a weekly basis. Determine how often to post batches - weekly, monthly, or after a specified number
of days – automatically incrementing the transaction date each time you post.
TRANSFER ITEMS
Transfer transactions allows you to change quantity types from one type to another. You can transfer items
from one site to another and change item types at the same time.
ADJUST TRANSACTIONS
Adjustment transactions allow you to increase or decrease item quantities. When entering decrease
transactions:
• Choose to override the quantity available.
• Decrease inventory beyond the quantity recorded in Inventory Control.
• View the quantities available for a specific unit of measure.
This provides flexibility when there is a shortage of one unit of measure for an item, or when deciding whether
to order more of an item.
PERFORM STOCK COUNTS

Stock Counts allow you to process the variances between actual inventory counted and the on-hand quantities
in inventory. By specifying count frequencies for all of your items, Microsoft Dynamics GP determines which
items are scheduled for a stock count and creates a Stock Count Schedule. Once the Stock Count Schedule
has been created you can:
• Start the count.
• Enter actual quantities on-hand.
• Process the stock count to automatically generate variance transactions.
These variance transactions then update the General Ledger.
PRINT A PHYSICAL INVENTORY CHECKLIST

The physical Inventory Checklist allows you to print a list of all the quantities on-hand, including lot and serial
numbers, sorted by any of multiple options. This allows you to organize the list according to the order in which
a physical count of your items will be completed.
PRINT A PURCHASE ADVICE REPORT

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The Purchase Advice report can be used to identify item quantities that are greater or less than the quantity
level you want to maintain. In addition, this report displays the quantities to order to maintain
the inventory items.
PRINT REPORTS TO MULTIPLE LOCATIONS

You can send reports to a file, a printer, or the screen. Microsoft Dynamics GP provides the flexibility to view
reports in whatever format is needed.
QUERY TRANSACTION DETAILS

Microsoft Dynamics GP querying tools provide a total financial picture by allowing you to zoom on the origin of
a particular transaction. This feature can be especially helpful if you suspect an error in a transaction and need
to trace it back to its origin. You can also use Inventory Control's enquiry windows to access documents and
customer balances in detailed and summary form.
Microsoft Dynamics GP allows you to perform inquiries on transactions and purchase receipts as well as on
item, serial number and lot number information.
1.1 Reason Code Setup

MICROSOFT DYNAMICS GP >> TOOLS >> SETUP >> INVENTORY >>
REASON CODE SETUP
Use the Reason Code Setup window to create, modify and delete reason codes. A reason code is used to
identify causes and track cost amounts for item stock movements and adjustments. Once reason codes are set
up, they can be assigned to a line item on inventory adjustments, variances, transfer and stock counts.
1) Reason Code Setup Window.

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• Inventory Transactions: Mark the Adjustment and / or Variance checkboxes if you want to use this
reason code on adjustment or Variance transactions. If the box is not marked, you will not be able to enter
or select the reason code for adjustments or variances
• Types of Adjustments/Variances: You can select Increase and Decrease, increase only or Decrease
only. The more specific options you select, the more closely you’ll be able to monitor your inventory, and
see the trends provided by the reason code.
• Default Offset Account: Select the account which will be used to track amounts posted with this reason
code.
• For example, if you set up Spoilage as a reason code, and enter it every time you enter a decrease
adjustment for spoiled items, you will be able to identify the costs of all spoiled items distributed to this
account at the end of the year.
• Entering an account is optional, if you don’t specify an account for the reason code, the standard account
for the item will be used.
1.2 Inventory Control Setup

INVENTORY CONTROL
NAVIGATION PANE >> INVENTORY >> SETUP >> INVENTORY CONTROL
The Inventory Control Setup window allows you to set default entries that appear throughout the Microsoft
Dynamics GP system.
2) Inventory Control Setup Window.
• User Category: User categories allow you to define up to six different categories in which to group your
inventory items. These categories are used on the Item List by User Category Report and as sorting
options on some other reports.

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Click the expansion button next to User Categories to open the Item Category Setup window, where you assign
values for each category. Values may also be assigned in the Item Class Maintenance and Item Maintenance
windows. The number of values for each category is unlimited.
3) Inventory Category Setup Window.
• Next Document Number: Select the next document number for three types of inventory transactions:
• Adjustments
• Transfers
• Variance transactions
The document numbers entered are displayed in the appropriate transaction entry windows. Document
numbers are used to track individual transactions and appear on reports as part of your audit trail. Use these
numbers to trace transactions to the point they originally were entered in Microsoft Dynamics GP.
You can enter a starting document number in the Inventory Control Setup window or accept the default. Notice
that there are leading zeroes in the document number. Microsoft Dynamics GP requires these to increment
correctly. Each time you enter transactions, the default document number increments by one. You can change
the next document number; however, the same number cannot be posted twice.
• Segment ID for Sites: If a business has more than one physical site, one segment of the General Ledger
posting account may be set to represent the business’ sites. The account segment ID identified here
defaults when you set up items in Item Site Maintenance. An example would be where a business uses
the first account segment for the site location, the second segment for the department, and the third
segment for the specific account.

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4) Account Segment Settings.
• Default Decimal Places: Select the number of decimal places to use for displaying item Quantities. For
example, a business selling specialty coffees by the kilogram or pound might use two decimal places for
quantities. The number of decimal places you select appears as the default for quantities in the Unit of
Measure Schedule Setup, Item Class Setup, and Item Maintenance windows.
Select the number of decimal places to use for displaying Currency amounts. For example, if you sell petrol,
you need three decimal places to indicate a price of $1.139 per litre. Microsoft Dynamics GP allows you to
select from zero to five decimal places. The decimal places selected appear as the default and can be changed
in the Item Class Setup and Item Maintenance windows.
• Allow Overrides: You can allow overrides during transaction entry for adjustment, variance and transfer
transactions. Overrides allow you to allocate quantities that are greater than the quantity on hand.
For example:
Quantity On-Hand = 10
Decrease Adjustment = 15
If Allow Overrides is selected, the quantity on hand is -5 after the decrease adjustment is posted.
• Display Costs Adjustments: Select the Cost for Decrease Adjustments option for an item's cost to be
displayed in the Item Transaction Entry window when you enter decrease transactions and in the Item
Transfer Entry window when you enter a transfer. The cost displayed is either the current cost or the
standard cost, depending on the valuation method being used for the item.
If you are using a perpetual valuation method, the current cost displays on the transaction but may not be
the cost issued when posting the inventory and cost of goods sold accounts in General Ledger. The actual
cost (according to the valuation method) is used when posting to these accounts. Remember that current
cost is the cost of the item the last time it was received.
• Autopost Stock Count Variances: Select this option to have the Inventory Transactions created when
processing a stock count using the Stock Count Entry window to automatically post to inventory when the
stock count is complete. If this option is cleared an Inventory Transaction Entry batch is created when you
process the stock count. You then must post the Inventory Transaction Entry batch to update inventory.
• Enable Multiple Bins: Select this option for the ability to track item quantities in bins, which reside within a
site. This feature enables you to track items at a more detailed level.
Items can easily be transferred from bin to bin within a site or into a different site/bin location.

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• Enable Picking Shortage Tasks: The Inventory module provides the ability to perform and track cycle
counts. Cycle counting is a term used when instead of, or in addition to, an annual physical count of all
your inventory items, you perform ongoing scheduled counts of items. This makes it difficult to plan for
staffing and performing the counting activity.
For example, you might count your high-usage expensive items on a weekly basis, the moderate usage
lower cost items on a monthly basis, and the low-usage/ low-cost items on a quarterly basis. This spreads
out the workload and ensures better Inventory accuracy. To help plan the cycle count activity, stock count
alerts a new reminder that notifies you when items are due to be counted.
• Setting up Reminders for Shortage Tasks: Use the Reminder Preferences window to set up a reminder.
This window is opened by clicking Microsoft Dynamics GP on the tool bar, and clicking User
Preferences. Select the Remind Me box and enter the number of days prior to the due date you want to
be notified next to “Items Due for Stock Count.”
5) Shortage Task.
• Shortage Task Demonstration:

Scenario:
A Sales Order with five items is entered into the system and it says all five items are available in the
warehouse. However, when a worker goes to pick the five items, they only find four. Therefore a picking
shortage is encountered.
The Materials Manager decides it is best to start setting up reminders to schedule a special stock count.

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Here is the process the Materials Manager uses:
• To set up a specific person to be notified for a reminder, start by enabling the shortage task and assigning
a user in the Inventory Control Setup window.
• After the initial setup in Inventory, the next step is to set reminders and tasks associated with the reminder.
Use the Reminders window to view tasks (Microsoft GP > Reminders).
• If a task has not been set up one can be created by clicking on New Task in the Reminders Window. This
is where the Due Date is entered for the reminder. This due date and reminder works in conjunction with
the days before due date field in the Reminder Preferences window. After setting this, the associated user
will receive a reminder with a task associated with it.
• Item Classes: At the bottom of the Inventory Control window is the Class button. Clicking this allows the
user to set up item classes. It is recommended to wait until price groups and unit of measures schedules
are complete before setting up item classes.
NOTE:
• If you modify a category, the values previously assigned to the category in the Item Maintenance and Item
Class Setup windows do not change. However, you may change the values manually.
• If you are using Microsoft Dynamics GP on a network where more than one person is entering transactions
at the same time, the number may appear to increment by two or more.
• The Segment ID for Sites field is required. Once it is entered and saved, it cannot be changed. If sites are
not used, leave the Account Segment ID field blank in the Item Site Maintenance window. This situation is
discussed later in this section.
• If Multicurrency is registered, the Currency decimal places field is dimmed. The decimal place of the
currencies assigned to each inventory item is used instead.
• Overrides are assigned to either the current cost or standard cost depending on the valuation method
assigned to the item.
• Overrides are not recommended for serial or lot numbered items, as they will not become negative.
1.3 Unit of Measure Setup

ADMINISTRATION SERIES BUTTON > SETUP > COMPANY > COMPANY
MICROSOFT DYNAMICS GP > TOOLS > SETUP > COMPANY > COMPANY
Units of measure are the quantities in which your business buys or sells an item. A unit of measure schedule is
a group of related units of measure. For example, your business might sell soda in three units of measure -
cans, six-packs, and cases. One can of soda equals the unit of measure Each or Can. Six cans equals Pack,
and 24 cans equals Case. The unit of measure schedule for soda defines each of these Units of Measure
based on Can, the equivalent common to all Units of Measure.

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6) Unit of Measure Schedule Setup Window.
• Unit of Measure Schedule ID: Enter a U of M Schedule ID using up to ten characters. Enter a description
using up to 30 characters to further define the ID. In the previous example, the U of M Schedule ID would
be Soda. Other examples are Lumber, Phone, and so on.
• Decimal Places: Select the number of decimal places used for tracking quantities of the items to which
this U of M schedule is assigned. Decimal places must be entered before entering a Base U of M.
• Base Unit of Measure: The base unit of measure is typically one of two things:
• The smallest unit in which items can be bought or sold
• The unit that you want to track all your quantities
• All other units in the schedule must be entered as an equivalent of the base unit. In the example of soda,
the base unit of measure might be Can because all the other Units of Measure are multiples of a single
can.
Once the base unit of measure and decimal places for quantities have been entered, you cannot change
them from within the scrolling window. If the information is not correct, you need to delete the schedule and
create a new one with the correct information.
• Quantities and Equivalents: The base U of M is displayed with a quantity of 1 and an equivalent of 1.
Complete the following steps to set up additional units of measure:
• Enter the next unit in the Description field.
• Enter the Quantity (in base units) necessary to convert to the equivalent.
• Enter the Equivalent unit (typically the base unit).
Each unit of measure set up must be defined in the base unit of measure, such as can equivalent to one can or
six-pack equivalent to six cans, and so on. All other equivalents, meaning those not defined as the base unit of
measure, such as 12-pack equivalent to two six-packs and a case equivalent to two 12-packs are for informal
purposes only.

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1.4 Price Level Setup
MICROSOFT DYNAMICS GP >> TOOLS >> SETUP >> INVENTORY >> PRICE LEVEL
NAVIGATION PANE >> INVENTORY >> SETUP >> PRICE LEVEL
Price levels are used to associate similar groups of pricing. A prime example would be setting up a wholesale
price level for a wholesaler and a retail price level for a retailer.
Price Level Setup allows you to enter an unlimited number of price levels. These Price Levels are used in Item
Price Lists to define item pricing for different combinations of Unit of Measure and Price Levels. Price levels
can be assigned to the customer or the item itself. Consider using price levels if you are a standard pricing
model.
7) Price Level Setup Window.
NOTE:
• A minimum of one price level is required if you are using a price list.
1.5 Price Group Setup

MICROSOFT DYNAMICS GP >> TOOLS >> SETUP >> INVENTORY >> PRICE GROUP
NAVIGATION PANE >> INVENTORY >> SETUP >> PRICE GROUP
Price Group Setup allows you to enter an unlimited number of price groups. Price Groups are used to
categorize items with a similar price list. A Price group is available as a restriction on several inventory reports,
and is available in the inventory views in SmartList.
8) Price Group Setup Window.

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1.6 Lot Category Setup
MICROSOFT DYNAMICS GP >> TOOLS >> SETUP >> INVENTORY >> LOT CATEGORY
NAVIGATION PANE >> INVENTORY >> SETUP >> LOT CATEGORY
Lot categories are useful for grouping lot-numbered items according to a similar characteristic. For instance,
lots are commonly created for items such as fabrics, carpets, and wallpaper to group items that were created at
the same time using the same dye or ink. Lot categories can also be created for tracking items created on a
particular date (such as pharmaceuticals). The user may enter a descriptive name of up to ten
characters in length.
9) Lot Category Setup Window.
• Lot Attributes and Dates: Lot attributes are used when entering transactions to further identify the lot-
numbered item you have received. When lot attributes are set up in this window, the attributes appear in
the Item Lot Attribute Entry window if you assign the lot-numbered item to this lot category using the Items
Maintenance Options window.
The following is an example of how lot attributes may be set up as well as how they would be displayed in
the transaction windows associated with the item you are receiving.
Action Procedure
Lot Category: CARPET LOT NUMBER
Attribute 1: DYE DCE9384
Attribute 2: COLOUR 0010-SAND
Attribute 3: FIBER Olefin
Date 1: RECEIPT 11/23/07
Date 2: MANUFACTURED 9/07

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1.7 Stock Calendar Maintenance
STOCK CALENDAR
NAVIGATION PANE >> INVENTORY >> SETUP >> STOCK CALENDAR
purposes. The calendar is used when creating cycle counts for items. You can designate whether weekends or
Sundays are normally non-working (down) days as well as specifying other non-working days, such as
holidays. In addition to tracking working days, you can enter other company settings such as shifts
and start time.
10) Stock Calendar Maintenance Window.
• Designate Working Days: The company name defaults from the Company Setup window. Select the
month to view the stock calendar. As you change the selected month, the calendar displays that month.
Select the year to view the stock calendar.
The calendar displays the days for the month and year selected. Each day has a status of working (up) or
non-working (down). Up days appear with white background; down days appear with black background.
To change the status of a day, click on that day within the calendar. The first time you change the status of
a day in the session a message displays asking you to confirm the change. This message is received once
per session.
• Company Wide Settings: The Number of Shifts field is an informational field to track the number of
inventory shifts for your company. The Hours per Shift field is an information field to track the number of
hours per shift.
The Start Time field is an informational field used to record the start time of the first shift of the day.
• Company Wide Down Settings: The user may select the standard weekend down days for your
company. The following options are available:
• None if your company does not have down days on the weekend
• Sundays Only if Sunday is the only standard down day
• Saturdays and Sundays if your company is normally down for the entire weekend
If you change the Company-wide Down Day settings, a message displays asking you to confirm the change.
The weekends are updated with the correct status. For example, the setting for your Company-wide Down Day
Settings was Saturday and Sunday, but Sunday July 11th is marked as an up day. If you change the setting to
Sunday Only, all Saturdays become up days and all Sundays, including July 11th, are down days.

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NOTE:
• The Number of Shifts multiplied by the Hours per Shifts cannot exceed 24 hours.
1.8 Price Group Setup

MICROSOFT DYNAMICS GP >> TOOLS >> SETUP >> INVENTORY >> PRICE GROUP
NAVIGATION PANE >> INVENTORY >> SETUP >> PRICE GROUP
Price Group Setup allows you to enter an unlimited number of price groups. Price Groups are used to
categorize items with a similar price list. A Price group is available as a restriction on several inventory reports,
and is available in the inventory views in SmartList.
11) Price Group Setup Window.
1.9 Lot Category Setup

MICROSOFT DYNAMICS GP >> TOOLS >> SETUP >> INVENTORY >> LOT CATEGORY
NAVIGATION PANE >> INVENTORY >> SETUP >> LOT CATEGORY
Lot categories are useful for grouping lot-numbered items according to a similar characteristic. For instance,
lots are commonly created for items such as fabrics, carpets, and wallpaper to group items that were created at
the same time using the same dye or ink. Lot categories can also be created for tracking items created on a
particular date (such as pharmaceuticals). The user may enter a descriptive name of up to ten characters in
length.
12) Lot Category Setup Window

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• Lot Attributes and Dates: Lot attributes are used when entering transactions to further identify the lot-
numbered item you have received. When lot attributes are set up in this window, the attributes appear in
the Item Lot Attribute Entry window if you assign the lot-numbered item to this lot category using the Items
Maintenance Options window.
The following is an example of how lot attributes may be set up as well as how they would be displayed in
the transaction windows associated with the item you are receiving.
Action Procedure
Lot Category: CARPET LOT NUMBER
Attribute 1: DYE DCE9384
Attribute 2: COLOUR 0010-SAND
Attribute 3: FIBER Olefin
Date 1: RECEIPT 11/23/07
Date 2: MANUFACTURED 9/07
1.10 Stock Calendar Maintenance

STOCK CALENDAR
NAVIGATION PANE >> INVENTORY >> SETUP >> STOCK CALENDAR
purposes. The calendar is used when creating cycle counts for items. You can designate whether weekends or
Sundays are normally non-working (down) days as well as specifying other non-working days, such as
holidays. In addition to tracking working days, you can enter other company settings such as shifts and start
time.
13) Stock Calendar Maintenance Window.

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• Designate Working Days: The company name defaults from the Company Setup window. Select the
month to view the stock calendar. As you change the selected month, the calendar displays that month.
Select the year to view the stock calendar.
The calendar displays the days for the month and year selected. Each day has a status of working (up) or
non-working (down). Up days appear with white background; down days appear with black background.
To change the status of a day, click on that day within the calendar. The first time you change the status of
a day in the session a message displays asking you to confirm the change. This message is received once
per session.
• Company Wide Settings: The Number of Shifts field is an informational field to track the number of
inventory shifts for your company. The Hours per Shift field is an information field to track the number of
hours per shift.
• The Start Time field is an informational field used to record the start time of the first shift of the day.
• Company Wide Down Settings: The user may select the standard weekend down days for your
company. The following options are available:
• None if your company does not have down days on the weekend
• Sundays Only if Sunday is the only standard down day
• Saturdays and Sundays if your company is normally down for the entire weekend
If you change the Company-wide Down Day settings, a message displays asking you to confirm the change.
The weekends are updated with the correct status. For example, the setting for your Company-wide Down Day
Settings was Saturday and Sunday, but Sunday July 11th is marked as an up day. If you change the setting to
Sunday Only, all Saturdays become up days and all Sundays, including July 11th, are down days.
NOTE:
• The Number of Shifts multiplied by the Hours per Shifts cannot exceed 24 hours.

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2) Item and Pricing Setup
The Objectives are:

• Create Item Classes
• Create Inventory Items
• Define details about items
• Set up default posting accounts for items
• Create Kit item types
• Create item sites
• Assign bins to sites
• Assign site specific information to items
• Review quantities for item/site combinations
• Assign items to multiple sites at once
• Create a creditor with detailed purchasing information
• Create Price Lists for Items
• Define rounding options for purchases on specific items
• Define when to revalue the cost variance on a specific item
• Assign stock counts to multiple items
• Create customer specific item information
• Create beginning balances for your items
• Enter historical item information
INTRODUCTION
In this course the requirements for setting up Items and Item Classes are discussed. Each Item Class, and
individual item, has many options available. Some of these options are required, and some are optional. This
Chapter discusses the purpose and the advantages of the options available in the system.
2.1 Item Class Setup

MICROSOFT DYNAMICS GP >> TOOLS >> SETUP >> INVENTORY >> ITEM CLASS
NAVIGATION PANE >> INVENTORY >> SETUP >> ITEM CLASS
Item classes allow you to group items according to similar characteristics. For example, you can group items by
function, price or any other similar characteristics. Creating item classes is optional.

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• Benefits of Item Classes: The benefits of using classes are:
• Organizes and speeds up item record entry by providing defaults for new item records.
• Groups of item records can be changed easily and quickly if information for a class changes.
• Allows grouping and sorting items on some Inventory reports.
• Groups items on Smartlist views.
In addition to providing defaults for data entry, classes are used to group and sort items on some Inventory
reports and in SmartList inventory views.
14) Item Class Setup Window.
• Changing information in Classes: When changing information in a class record, you can quickly change
the information for all items assigned to the class. This is referred to as rolling down changes. A roll down
can be made when you decide that the information changed should be reflected on every item record
associated with the class.
For example, you change the price group for a class. If you decide to roll down the changes, the price
group will be changed for all items in the class. If you do not roll down the changes, existing items will not
be changed. When any new items are assigned to this class they will have the new price group settings.
• Class ID and Description: Enter a Class ID of up to 15 characters. The Description is used to further
identify the code for your reference and can be up to 30 characters long. You may find it helpful to enter a
name that identifies the class, such as ELECTRONICS.
Microsoft Dynamics™ GP allows you to select a default item class. The entries made for the default class
appear as defaults for the new classes.
Action Procedure
Phones All Phones
Answer All Answering Machines
Fax All Fax Machines
Wire All wire

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This ten-character code is another available option for grouping items and for sorting many of the Inventory
reports. There are no limits to the number of generic descriptions that may be entered.
• Item Type: The table lists the possible item types that may be selected for an item class. All items in a
class should be the same type.
Type Description
Sales Inventory − Quantities can be tracked for sales inventory items, and both increase
and decrease transactions can be entered. Transaction amounts are
posted to the Inventory and Inventory Offset accounts. Most items in your
inventory will be designated as sales inventory.
Discontinued − Items identified as discontinued are tracked in the same manner as sales
inventory items, and the amount listed as the Quantity on Hand can be
sold. Decrease and increase transactions for discontinued items can be
entered in Inventory. When the quantity of discontinued items reaches
zero, you can delete the item during the Inventory Year-End Closing.
Transaction amounts are posted to the Inventory and Inventory Offset
accounts.
Miscellaneous Charges − Current Costs, but not quantities are tracked for Miscellaneous Charges
items. An example of a miscellaneous charge is inventory freight
expense. Transactions for Miscellaneous Charges for items are posted to
the Sales and Cash/AR accounts.
Kit − Kit items are defined as items consisting of other component items that
are grouped at the time of sale. Component items can be the following
types:
• Services
• Sales inventory
• Discontinued
• Miscellaneous charges
• Flat fee items
Amounts are posted to the accounts specified for each of the component
items in each kit. Quantities are maintained for components,
but not the kit.
Services − Current costs, but not quantities, are tracked for service items. These
items can be sold individually or as components of kits. Transactions for
service items are posted only to the Sales and Cash/AR accounts.
Flat Fee − Items designated as having a flat fee item type can have current costs,
but not quantities. Flat Fee items can be sold individually, or as
components of a kit. Transactions for flat fee items are posted to the
Sales and Cash/AR accounts.

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• Valuation Method: When you have selected an item type of sales inventory for the class, enter a method
for valuing items. The five valuation methods include:
Type Description
FIFO Perpetual − With the FIFO perpetual method items purchased first are considered
sold first. Detailed information for the cost of all items is maintained, and
the inventory is valued at its actual cost. The current cost for items
assigned this valuation method is the cost of the item the last time it was
received.
LIFO Perpetual − With the LIFO perpetual method items purchased last are considered
the inventory is valued at its actual cost. The current cost for the items
received.
Moving average perpetual − This valuation method varies from FIFO and LIFO in that the cost of
items with the same item number is totalled and an average cost is
assigned to the items. The average cost of an item is revalued
throughout the period as you enter increase transactions for items. The
average cost is displayed as the current cost.
FIFO periodic With the FIFO periodic valuation method items purchased first are
considered sold first, and are valued at their standard cost. The standard
cost is the cost used to sell the item. The standard cost for each item is
manually entered or can be adjusted to the current cost at the time of the
year-end close.
LIFO periodic − With the LIFO periodic valuation method, items received last are
year-end close.
• Tracking: Select whether to track serial or lot numbers for items in this class. Serial numbers and lot
numbers are usually assigned by the manufacturer and are tracked by the wholesaler or retailer. The Track
option is available for sales inventory item types only.
If you are tracking by lot numbers, select a Lot Category to indicate which lot attributes are
available for items in this class in the Item Maintenance window.
• Expired Lots: Use the Expired Lots functionality to assign how many days a lot numbered item is
considered “good” before it expires. This is only available for lot tracked items. If this feature is used, the
system will send a message stating “this item has expired” when a user tries to manually enter the item in
Inventory, Sales, or Bill of Materials. This warning does NOT display when lot numbers are assigned
automatically.
• If the Warn box is marked, you can tell the system to remind you a specified number of days before your lot
item(s) expire.

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• Sales Tax Option: Specify whether this item is taxed when items are sold, and if so, on what basis.
• If you select:
• Taxable - Enter a tax schedule for the item in the Tax Schedule ID field.
• Non-taxable - The item is not taxed.
• Base on Customers - All the details on the customer tax schedule or the site tax schedule are applied.
• If Use Shipping Method when Selecting Default Tax Schedule is selected, the tax schedule could
change, depending on whether the shipping method is delivery or pickup. The shipping method determines
where the exchange of goods takes place and which tax schedule appears as a default entry for the
transaction. If the shipping method is delivery, the tax schedule designated for the shipping address for the
customer appears as the default entry. If the shipping method is pickup, the tax schedule designated for the
site you are selling from appears as the default entry.
• Sales Tax Schedule ID: Enter a tax schedule to be applied when this item is sold. This field is available
only if you select Taxable from the Tax Option list. If you select Taxable Item but do not enter a tax
schedule here, no taxes are calculated for the item. The item tax schedule should include ALL details that
COULD be used to calculate tax on that item.
• If you are using Inventory Control and select Taxable, Microsoft Dynamics GP calculates taxes using the
schedules based on the shipping method. If Use Shipping Method when Selecting Default Tax
Schedule is selected, the system will use the following tax schedules:
• Shipping Method Delivery: The tax schedule for the customer is compared to the tax
schedule for the item.
• Shipping Method Pickup: The tax schedule for the site is compared to the tax schedule for the item.
• Purchase Tax Option: Specify whether taxes need to be paid when this item is purchased, and if so, on
what basis. If you select:
− Taxable - Enter a tax schedule for the item in the Tax Schedule ID field.
− Non-taxable - The item is not taxed.
− Base on Creditor - All the details on the creditor tax schedule are applied, depending on whether the
shipping method is delivery or pickup, if you selected Use Shipping Method when Selecting Default Tax
Schedule.
The shipping method determines where the exchange of goods takes place and therefore which tax
schedule appears as a default entry for the transaction.
• The Purch Addr Tax Sched field is displayed when the shipping method for the document is pickup or
when there is not a shipping method assigned. The tax schedule assigned to the purchase address of the
creditor is the default tax schedule. Changing the purchase address ID or the shipping method in the
Purchasing Creditor Detail Entry window also can change the tax schedule ID and possibly the name of the
field.
• If you decide not to use the shipping method to determine the default tax schedule, the tax schedule
assigned to the creditor's purchase address is the default tax schedule. The option to use the shipping
method to determine the tax schedule is in the Company Setup Options window.
• Purchase Tax Schedule ID: Enter a tax schedule to be applied when this item is purchased. This field is
available only if you selected Taxable from the Tax Option list. If you select Taxable Item but do not enter a
tax schedule here, no taxes are calculated for the item.
• Allow Back Orders: Select Allow Backorders to allow customers to back order items in this class. The
availability of this option depends on the item type selected. You can back order items designated as sales
inventory.

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• Back Order documents are generated when using the Sales Order Processing module. If this option is not
selected, a back order document for this item is not created in Sales Order Processing.
• Revalue for Cost Variance: You have the option of whether inventory items will be revalued for cost
variances. If revaluing the inventory item, you can specify a tolerance percentage. This means that if a
purchasing invoice is matched and the cost variance matches or exceeds (either above or below) the
tolerance specified, the inventory purchase receipt is revalued and the entry that is posted to General
Ledger is to the Inventory Account. If the cost variance does not meet the tolerance or you do not choose
to revalue this item for cost variances, the inventory purchase receipt is not revalued and the General
Ledger is expensed to a Cost Variance account.
• Maintain History: Microsoft Dynamics GP allows you to keep detailed and summary history. Calendar
year and fiscal year history is a summary of posted transactions for each period in the calendar or fiscal
year. Transaction and distribution history includes detailed information about each transaction and the
distributions entered.
• If you select Calendar Year, history, cost, quantity and sales information is kept in a month-by-month
format for items in this class. If you select Fiscal Year, the same information is kept according to the fiscal
period format entered in the Fiscal Periods Setup window. If your fiscal year ends December 31, there is no
need to keep fiscal year history.
If you select Transaction History, you keep information about inventory transactions and can print the
Transaction History Report.
By selecting Distribution History, you track the posting account distributions for each transaction
originating in Inventory. If keeping distribution history, you can print the Distribution History Report. If you
indicate in the Posting Setup window to reprint posting journals, distribution history is kept regardless of
how this option is selected in this window.
• Decimal Places: Select the number of decimal places that can be entered for item quantities and
currencies in this class. The number of decimal places you enter must be the same as the number of
decimal places entered for the Unit of Measure Schedule assigned to this class.
• When selecting the Quantity Decimals, choose the number that reflects the quantities in which this class
of items is to be sold. If you are setting up a class of service items, select two decimal places because
service items are commonly measured in hourly rates.
• Enter the number of Currency Decimals that commonly reflect the currency in which your company does
the majority of its business.
• Unit of Measure Schedule: Enter or select the Unit of Measure Schedule to use for this Item Class.
Units of measure are displayed in the Item Price List window, where you can enter detailed pricing
information for each unit of measure.
• Price Group, Default Price Level: Enter or select the Price Group to use for this Item Class. Price Groups
can be used to categorize items that have a similar price list. Enter the price level you want as the default
price level for items assigned to this class. The price level entered here defaults into the Item Price List
Maintenance window. The item's default price level is used to calculate an item's sale price if the Price
Level field is blank on the Customer Card and Receivables Management setup.
• Pricing Method: Pricing methods control how prices are calculated for items. The pricing method you
select also controls the values (either currency amounts or percentages) that can be entered for each unit
of measure in the scrolling area of the Item Price List Maintenance window. There are six pricing methods,
each with a separate equation used to calculate the price.

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• Currency Amount Price Method
Type Description
Currency Amount − If pricing items by currency amount, you can enter a flat currency amount
for each range of U of M entered in the scrolling window.
− For example, you may sell a can of soda for AUD$0.55 per can if the
customer buys 1 to 50, but sell the can for AUD$0.50 if the customer
buys more than 50.
• Percent of List Price Method
Type Description
for each range of U of M entered in the scrolling window.
− For example, you may sell a can of soda for AUD$0.55 per can if the
customer buys 1 to 50, but sell the can for AUD$0.50 if the customer
buys more than 50.
• Percent Mark-up-Current Cost Price Method
Type Description
Percent Mark-up − (Current cost + (current cost x percent)

receive Current Cost
− Using the percent mark-up - current cost method, you can enter a
percentage based on the current cost for each U of M in the scrolling
window. Each time you receive a shipment of an item in a specific U of
M, the price charged for the item changes according to the item cost
when it was received. However, the percentages displayed in the
scrolling window remain the same.
− For example, you have selected percent mark-up - current cost as the
pricing method because you want the price for single cans of soda to be
routinely updated each time a shipment is received. If you enter 250% in
the Price column for the U of M Can, the price for single cans will always
be 250% more than you paid for your last shipment. In our previous
example, cost would be AUD$.20 and price would then be AUD$.70. (.20
+ (.20 x 250%) = .70.

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Type Description
Percent of Margin − Current cost + [(Current cost x price percentage) / (100 receive price
receive Current Cost percentage)]
− The percent of margin pricing method allows you to enter the profit
percentage you want to achieve, based on the current cost of the item
being sold. Each time you receive a shipment, the current cost for the
item is updated and the price changes accordingly. However, the profit
margin percentage entered in the scrolling window stays the same.
− For example, if you have selected percent of margin receive current cost
as the pricing method; the price for single cans of soda will be updated
each time a shipment is received. If you have entered a profit percentage
of 25%, the price for single cans will always be 25% more than the
current cost.
− AUD$.20 + [(AUD$.20x25%)/(100%-25%)] = AUD$.27
Type Description
Percent Mark-up − (Standard cost + (standard cost x percent)

- Standard Cost
− The Percent mark-up receive standard cost method is similar to the
percent mark-up receive current cost method, except that the prices
charged for each U of M are updated only when you update the standard
cost. Because the standard cost is updated periodically, it is an average
figure, and is not always the same as the amount most recently paid for
the item.
− For example, if you have selected percent mark-up - standard cost as the
pricing method, the price for single cans of soda will be updated
periodically (but not each time a shipment is received). If you enter 250%
in the Price column for the U of M Can, the price for single cans will
always be 250% more than the standard cost. Assume the standard cost
= AUD$.30. (AUD$.30+ (.30x250%) = AUD$1.05.

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• Percent Mark-up- Current Cost Price Method
Type Description
Percent Margin − Standard cost + [(Standard cost x price percent) / (100 – price
- Standard Cost percentage)]
− The percent of margin – standard cost pricing method allows you to enter
the profit percentage you want to achieve, based on the standard cost of
the item being sold. Each time the standard cost is updated, the price
changes also. However, the percentage entered in the scrolling window
remains the same. Assume the percent of margin = 25%. AUD$.30 +
[(AUD$.30x25%)/ (100%-25%)] =AUD$.40.
• Category: The user categories set up in the Inventory Control Setup window may be defined by values.
Enter values for item categories to categorize items in the class. The categories set up in the Inventory
Control Setup window are displayed; you can select existing values for each category or enter new values.
The item categories are useful for grouping and sorting items on reports. The lookup list includes all values
assigned to this category.
Type Description
Percent Margin − Standard cost + [(Standard cost x price percent) / (100 – price
- Standard Cost percentage)]
− The percent of margin – standard cost pricing method allows you to enter
[(AUD$.30x25%)/ (100%-25%)] =AUD$.40.
Category Values
Manufacturer AT&T
Style Cordless
Feature Redial
• Multicurrency Option: If using Multicurrency Management, you can use the Item Class Currency Setup
window (by clicking on the Currency button in the Item Class Setup window) to specify which currencies
can be used in transactions to sell or purchase the items in a particular class.
• Item Class Accounts Setup
Click the Accounts button to open the Item Class Accounts Setup window. Enter the posting accounts for
the items in this class. These accounts appear as defaults in the Item Maintenance window, where they
can be accepted or changed for each item.

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<Project Name>
If General Ledger is part of your Microsoft Dynamics GP system, transaction amounts are posted to these
accounts. If you are not using General Ledger, you can print the Distribution Breakdown Register; which
displays the distributions made to individual posting accounts. You can enter these amounts in another
computerized system or manual ledger.
Account numbers may be entered using either the alias or the full account number. Click the Account
Number expansion button to open the Account Entry window where the alias can be selected.
The following is a brief description of the accounts and when they are used:
Type Description
Inventory − Use this to store the value of the items currently in inventory. This
account always defaults on Sales Order and Purchase Order Processing
transactions.
Inventory Offset − Use this as an offset account on increase/decrease adjustments entered

in Inventory. Typically, this is a cost of goods sold account.
Cost of Goods Sold − Use this to store the cost of items sold in Sales Order Processing. This
account defaults if Sales Order Processing Setup has Use Posting
Accounts From set to Item.
Sales − Use this to record all the sales entered in Sales Order Processing. This
Markdown − Use this to store the discount amount on each specific item in Sales
Order Processing. This account always defaults on Sales Order
Processing transactions that have a markdown.
Sales Returns − Use this to store the value of returned items through Sales Order
Processing. This account defaults if Sales Order Proc. Setup has Use
Posting Accounts From set to Item.
In Use − Use this to store the value of items transferred or returned to an In-Use
status.
In Service − Use this to store the value of items transferred or returned to an

In-Service status.
Damaged − Use this to store the value of items transferred or returned into a
Damaged status.
Variance − Use this as the offset account to a variance transaction entered in

Inventory.
Drop Ship Items − Use this in Sales Order Processing to store the cost entered for an
inventory item being drop shipped to a customer (records a decrease to

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the account). This is also used by Purchase Order Processing to record
the cost of the item being drop shipped to a customer (records an
increase to the account).
Purchase Price Variance − Use this in Purchase Order Processing to record any difference in cost
between a shipment and invoice.
Unrealised Purchase − Use this to track the difference between the standard cost and the actual
Price Variance cost the item is received in Purchase Order Processing.
Inventory Returns − Use this to store the value of items transferred or returned into a
Returned status.
Assembly Variance − Use to store differences between actual costs and standard or average
costs when building a subassembly in Bill of Material.
NOTE:
• You do not have to enter information in every field. However, the more information entered, the faster data
entry is when setting up new items.
• Changes to the valuation method, decimal places, price method, and U of M schedule cannot be rolled
down to existing items in the class.
• Changes can be rolled down to three other fields if certain requirements are met:
• The item type if changing to the item to Discontinued.
• The tracking option if the item has a zero quantity.
• The default price level if the price level is already included on the item's price list
• You may want to create your default class first. That way, when you enter subsequent classes, your
posting accounts and other class information appear as defaults, which may save data entry.
• Although Invoicing and Sales Order Processing allows you to enter a quantity for miscellaneous, service
and flat fee item, no quantity information in Inventory Control is tracked. Nothing posts to the General
Ledger for the Inventory, Inventory Offset, or Cost of Goods Sold accounts for these items, even though the
accounts are required to post the transaction.
• Once you have selected a valuation method, there may be tax laws that restrict your ability to change the
method. You can change valuation methods using the Changing Valuation Methods window, but we
recommend you consult your tax adviser before doing so.
• Once the item has been saved and there are quantities, you cannot change or edit this option.
• If setting up a class for kit items, you must select 0 decimals because kit items must be measured in whole
units.
• When Multicurrency is registered, the Currency Decimals field is disabled. Define the currency decimals in
the Item Class Currency Setup window (Tools > Setup > Inventory > Class currency) when assigning a
currency.
• The currency amount can be used regardless of the valuation method selected for an item.
• When Multicurrency is registered, companies can create price lists that include multiple currencies when
the items use the currency amount pricing method.
• The percent of list pricing method can be used regardless of the valuation method selected for an item.

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<Project Name>
• When Multicurrency is registered, companies can create price lists that include multiple currencies when
the items use the currency percent of list pricing method.
• If using a perpetual valuation method, select a pricing method based on current cost. This ensures that the
value of the inventory item and the price at which it is being sold are updated each time a shipment is
received.
• If using a perpetual valuation method, select a pricing method based on current cost. This ensures that the
value of the inventory item and the price it is being sold for are updated each time a shipment is received.
• If using a periodic valuation method, select a pricing method based on standard cost. This ensures that the
value of the inventory item and the price it is being sold for remains constant during the period.
2.2 Item Maintenance

CARDS >> INVENTORY >> ITEM
NAVIGATION PANE >> INVENTORY >> CARDS >> ITEM
15) Item Maintenance Window.
• Item Numbers and Descriptions: Consider how you want to number current and future items. For
example, you may want to assign specific groups of numbers to different types of items. After determining
the most appropriate numbering system for your company's inventory, use it consistently for the best
results possible when printing reports or completing maintenance procedures.
• The Item Number can be 30 characters, alphanumeric and the Description field handles 100 characters.
Adding a Short Description will assist during Lookups as the Item Description field is NOT immediately
visible.
• Reports only show the first 50 characters of the description, but can easily be adjusted to show the entire
description.
• Numeric characters take priority over alphabetic characters, and are sorted from left to right. The following
chart is an example of how Microsoft Dynamics GP sorts characters.

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<Project Name>
Random Order Sorted Order
2910ADMG 2823PXWP
2910QURT 2910ADKE
2823PXWP 2910ADMG
2910ADKE 2910QURT
Random Order Sorted Order
• After deciding on a numbering system, enter an item number using up to thirty characters and a description
using up to fifty characters.
• Use up to fifteen characters for the short description. This name can be an abbreviation of the item
description and can be used for grouping and sorting items on reports.
This ten-character Items Included

Phones All telephones
Answer All answering machines
Fax All fax machines
Wire All wire
• Assigning Items to a Class: Enter or select a class to which this item is to be assigned. Using classes is
optional, but they do provide default entries, making data entry easier and faster. If an individual item
record differs, you can override the default provided by the class. The following fields default from the
class: Generic Description, Item Type, Valuation Method, Decimal Places, Track, Lot Category, User
Categories and Values, Maintain History selections, Posting Accounts, and Tax Options.
• Item Types:
Select one of the following item types for this item:
Type Description
Sales Inventory − Quantities can be tracked for sales inventory items, and both increase
and decrease transactions can be entered. Transaction amounts are
posted to the Inventory and Inventory Offset accounts. Most items in your
inventory will be designated as sales inventory.
Discontinued − Items identified as discontinued are tracked in the same manner as sales
inventory items, and the amount listed as the Quantity on Hand can be
sold. Decrease and increase transactions for discontinued items can be
entered in Inventory. When the quantity of discontinued items reaches
zero, you can delete the item during the Inventory Year-End Closing.
Transaction amounts are posted to the Inventory and Inventory Offset
accounts.

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<Project Name>
Miscellaneous Charges − Current Costs, but not quantities are tracked for Miscellaneous Charges
items. An example of a miscellaneous charge is inventory freight
expense. Transactions for Miscellaneous Charges for items are posted to
the Sales and Cash/AR accounts.
Kit − Kit items are defined as items consisting of other component items that
are grouped at the time of sale. Component items can be the following
types:
• Services
• Sales inventory
• Discontinued
• Miscellaneous charges
− Flat fee itemsAmounts are posted to the accounts specified for each of
the component items in each kit. Quantities are maintained for
components, but not the kit.
Services − Current costs, but not quantities, are tracked for service items. These
items can be sold individually or as components of kits. Transactions for
service items are posted only to the Sales and Cash/AR accounts.
Flat Fee − Items designated as having a flat fee item type can have current costs,
but not quantities. Flat Fee items can be sold individually, or as
components of a kit. Transactions for flat fee items are posted to the
Sales and Cash/AR accounts.
• Valuation Methods: After selecting an item type of sales inventory, enter a method for valuing this item.
The five valuation methods include:
Type Description
FIFO Perpetual − With the FIFO perpetual method items purchased first are considered
the inventory is valued at its actual cost. The current cost for items
received.
LIFO Perpetual − With the LIFO perpetual method items purchased last are considered
the inventory is valued at its actual cost. The current cost for the items
received.
Moving average perpetual − This valuation method varies from FIFO and LIFO in that the cost of
items with the same item number is totalled and an average cost is
assigned to the items. The average cost of an item is revalued

36
<Project Name>
throughout the period as you enter increase transactions for items. The
average cost is displayed as the current cost.
FIFO periodic − With the FIFO periodic valuation method items purchased first are
year-end close.
LIFO periodic − With the LIFO periodic valuation method, items received last are
year-end close.
• Decimal Places: Select the number of decimal places that can be entered for item quantities and
currencies for this item. The number of decimal places you enter must be the same as the number of
decimal places that have been entered for the Unit of Measure Schedule assigned to this item.
When selecting the Quantity Decimals, select the number that reflects the quantities in which this item will
be sold. If you are setting up a service-type item, you would select two decimal places because service-
type items are commonly measured in hourly rates. If you are setting up a kit item, you would select 0
decimals because kit items must be measured in whole units.
Enter the number of Currency Decimals that commonly reflects the currency in which your company does
the majority of its business.
• Sales Tax Options and Schedules:
• Specify whether this item is taxed, and if so, on what basis. Select from the following:
− Non-taxable - The item will not be taxed.
− Base on Customers - All the details on the customer tax schedule or the site tax schedule are applied.
• If Use Shipping Method when Selecting Default Tax Schedule is selected, the tax schedule could
change, depending on whether the shipping method is delivery or pickup. The shipping method determines
where the exchange of goods takes place and which tax schedule appears as a default entry for the
transaction. If the shipping method is delivery, the tax schedule designated for the shipping address for the
customer appears as the default entry. If the shipping method is pickup, the tax schedule designated for the
site you are selling from appears as the default entry.
Enter a tax schedule to be applied when this item is sold. This field is available only if Taxable is selected
from the Tax Option list. If Taxable Item is selected, but you do not enter a tax schedule here, no taxes are
calculated for the item. The item tax schedule should include all details that could be used to calculate tax
on that item.
• Sales Tax Options and Schedules: If you are using Inventory Control and select Taxable, Microsoft
Dynamics GP calculates taxes using the schedules based on the shipping method. If you selected Use
Shipping Method when Selecting Default Tax Schedule, the system will use the
following tax schedules:
• Shipping Method Delivery: The tax schedule for the customer is compared to the tax schedule
for the item.

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• Shipping Method Pickup: The tax schedule for the site is compared to the tax schedule for the item.
• If you are not using Inventory Control and select Taxable, Microsoft Dynamics GP calculates taxes using
the schedules based on the shipping method. If you selected Use Shipping Method when Selecting
Default Tax Schedule, this is done as follows:
• Shipping Method Delivery: The tax schedule for the customer is compared to the tax schedule
for the item.
• Shipping Method Pickup: The tax schedule for the company is compared to the tax schedule for the item.
• Purchasing Tax Options and Schedules
• Specify whether taxes need to be paid when this item is purchased, and if so, on what basis. Select from
the following:
− Non-taxable - The item is not taxed.
− Base on Creditor - All the details on the creditor tax schedule are applied, depending on whether the
shipping method is delivery or pickup, if you selected Use Shipping Method when Selecting Default Tax
Schedule.
The shipping method determines where the exchange of goods takes place and which tax schedule
appears as a default entry for the transaction.
The Purch Addr Tax Sched field is displayed when the shipping method for the document is pickup or
when there is no shipping method assigned. The tax schedule assigned to the purchase address of the
creditor is the default tax schedule. Changing the purchase address ID or the shipping method in the
Purchasing Creditor Detail Entry window can also change the tax schedule ID and possibly the name
of the field.
If you decided not to use the shipping method to determine the default tax schedule, the tax schedule
assigned to the creditor's purchase address is the default tax schedule. The option to use the shipping
method to determine the tax schedule is in the Company Setup Options window.
Enter a tax schedule to be applied when this item is purchased. This field is available only if you selected
Taxable from the Tax Option list. If you select Taxable Item but do not enter tax schedule here, no taxes
are calculated for the item.
• Unit of Measure Schedule: Enter or select the Unit of Measure Schedule to use for this item. The units
of measure are displayed in the Item Price List window.
• Standard or Current Cost:
When using a periodic FIFO or LIFO valuation method, the standard cost is the cost used when the item is
received or sold. This is the cost posted to General Ledger. Microsoft Dynamics GP uses the standard cost
entered when calculating the item's prices if the pricing method selected is percent mark-up - standard cost
or percent margin - standard cost.
The current cost is the cost that the item was last received into inventory or the average cost if using the
Average Perpetual valuation method. The current cost you enter is updated whenever increase
transactions are entered for this item. The current cost is used to determine the item's price if the selected
pricing method is percent mark-up - current cost or percent margin - current cost.
• The current cost is the cost that the item was last received into inventory or the average cost if using the
Average Perpetual valuation method. The current cost entered is updated whenever increase transactions
are entered for this item. The current cost is used to determine the item's price if the selected pricing
method is percent mark-up - current cost or percent margin - current cost.

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• If you leave the Cost fields blank, the first inventory adjustment or purchase order entered for the item
shows a zero cost. If you enter a cost on the item card, that cost defaults on the adjustment or the PO, and
can be overridden.
• List Price: Enter a list price if using the percent of list pricing method. The list price is used for calculating
the item's prices in the Item Price List Maintenance window.
• Shipping Weight: Enter the shipping weight for the item. This field is for reference purposes only.
• Quantities: The Quantity on Hand field is a read-only field that reflects the posted quantity on hand. The
Quantity Available field is a read-only field that reflects the posted quantity on hand less the
quantity allocated.
NOTE:
• Although Invoicing and Sales Order Processing allows you to enter a quantity for miscellaneous, service
and flat fee item, no quantity information in Inventory Control is tracked. Nothing posts to the General
Ledger for the Inventory, Inventory Offset, or Cost of Goods Sold accounts for these items.
• Once you have selected a valuation method, there may be tax laws that restrict your ability to change the
method. You can change valuation methods using the Changing Valuation Methods window, but we
recommend you consult your tax adviser before doing so.
• When Multicurrency is registered, the Currency Decimals field is disabled. Define the currency decimals in
the Item Class Currency Setup window (Tools > Setup > Inventory > Class currency) when assigning a
currency.
• If a periodic valuation method is selected you should enter a standard cost.
• If you leave the Cost fields blank, the first inventory adjustment or purchase order entered for the item
shows a zero cost. If you enter a cost on the item card, that cost defaults on the adjustment or the PO, and
can be overridden.
• Serial and lot-numbered items are taken out of Inventory through decrease adjustments, transfers or sales
with the following cost:
• For LIFO/FIFO Perpetual, the actual cost from the purchase receipt is used.
• For LIFO/FIFO Periodic, the Standard cost is used. For Average Perpetual, the Average cost is used.
with the following cost:
• For LIFO/FIFO Periodic, the Standard cost is used. For Average Perpetual, the Average cost is used.
• When Multicurrency is registered, define the list price in the Item Currency Maintenance window at the time
of assigning a currency to the item.

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2.3 Item Maintenance Options
CARDS >> INVENTORY >> ITEM >> OPTIONS BUTTON
NAVIGATION PANE >> INVENTORY >> CARDS >> ITEM >> OPTIONS BUTTON
16) Select the Options button in the Item Maintenance Window.
17) Select the Options button in the Item Maintenance Window.

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• Substitute Items: Enter a substitute item number that will be suggested if the selected item number is out
of stock at the time of sale. This substitute item can be used in the Microsoft Dynamics GP Invoicing, Sales
Order Processing, and Bill of Materials modules.
• Tracking Lot and Serial Numbers: Select whether to track serial or lot numbers for the item. Serial
numbers and lot numbers usually are assigned by the manufacturer and are tracked by the wholesaler or
retailer. The Track option is available for sales inventory item types only. If tracking by lot numbers, select a
Lot Category to indicate which lot attributes are available for the item in the Item Maintenance window.
• Serial Number Template: If you select to track serial numbers, the expansion button next to the Track
field becomes available to display the Item Serial Number Definition window. The Item Serial Number
Definition window allows you to define a segmented serial number mask that may be used when
automatically generating serial numbers during receiving in Purchase Order Processing. The serial number
mask cannot exceed 20 characters.
• The Item Number, Description, and Last Generated Serial Number fields default into the Item Serial
Number Definition window. As you insert segments into the scroll area of this window the Serial Number
Mask field is updated to reflect the revised serial number mask.
• When you open the Item Serial Number Definition window and a Serial Number Mask has not been
previously defined, the Segment field displays the number 1. This field automatically increments as each
segment is inserted into the scroll area of this window.
• For each segment of the serial number, select the Type and click the Insert button to add it to the scroll
area of this window.
• For Numeric, set the size (length). The Starting Value field defaults with a value of 1 and can be
overridden. To increment this segment, click the Increment option and set the Ending Value field.
• For Alpha, set the size. The Starting Value defaults with A's in all digits of the segment and can be
overridden. To increment this segment, click the Increment option and set the Ending Value field.
• For Symbol, complete the Starting Value field. Use Symbol to place a segment separator in the mask, such
as a dash. For User Date, select the date format in the Date Format field. A space leaves a blank between
segments.
• After segments have been defined you may modify a segment or move one of the segments to a different
position in the Serial Number Mask.
• To modify a segment, highlight the segment in the scrolling window. Click the Modify button. The segment
information appears in the detail section of the window. After the modifications are complete, click Insert
and the changes are updated in the scrolling window.
• To move a segment, place the focus in the scrolling window on the segment you want to move, and select
the Up or Down button to move the segment one position. As you move a segment, all segments are
renumbered and the Serial Number Mask field is redisplayed to show the new mask.
• Select Allow Backorders to allow customers to back order this item. The availability of this option depends
on the item type you have selected. You can back order items designated as sales inventory.
• If this option is not selected, the item cannot have a quantity back ordered and a back order document
cannot be generated. Back orders occur in Sales Order Processing if there is a quantity shortage for the
item being sold.
• If a warranty is included with the item, enter the number of days the warranty is valid.
• ABC Codes: ABC Analysis is based on the principle that there are a few critical and many trivial inventory
items. Classify items carried in inventory as an A (most important), B (medium importance) or C (least
important) based on criteria such as quantity, cost or usage. The ABC classification allows you to better
manage inventory stock and can be pulled into inventory views in SmartList and added to inventory reports
in Report Writer.

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• Marking Item Kits and Finished Goods: A check mark appears in front of the Kit, Kit Component,
Finished Good and Finished Good Component fields when applicable.
• Categories: The categories set up in the Inventory Control Setup window are displayed, allowing you to
select existing values for each category or enter new values. The item categories are useful for grouping
and sorting items on reports. The lookup list includes all values assigned to this category.
Category Value
Manufacturer AT&T
Style Cordless
Feature Redial
• Maintaining History: Microsoft Dynamics GP allows you to keep detailed and summary history. Calendar
year and fiscal year history is a summary of posted transactions for each period in the specified year.
Transaction and distribution history includes detailed information about each transaction and the
distributions entered.
If you select Calendar Year, history, cost, quantity and sales information is kept in a month-by-month
format for this item. If you select Fiscal Year, the same information is kept according to the fiscal period
format entered in the Fiscal Periods Setup window. If your fiscal year ends December 31, there is no need
to keep fiscal year history.
If Transaction history is selected, you keep information about inventory transactions and can print the
Transaction History Report. By selecting Distribution history, you track the posting account distributions for
each transaction originating in Inventory. If keeping distribution history, you can print the Distribution
History Report. If you indicate in the Posting Setup window that you want to reprint posting journals,
distribution history is kept regardless of how this option is selected in this window.
• If using sales workflow (Advanced Distribution Module) and the item is tracking lots, you can assign
minimum shelf life attributes to the item and use those attributes to determine whether or not the item
meets the minimum shelf life when the item is received.
• Auto-generating serial numbers is only available in Purchase Order Processing; serial numbers cannot be
auto-generated in Inventory.
• When Auto-generating Serial Numbers in Purchase Order Processing, duplicate serial numbers are not
permitted for an item.
The ABC Analysis Wizard (Tools > Routines > Inventory > ABC Analysis) can be used to analyse the items
based on the item use, on-hand quantity, or item cost. After the analysis is complete, the wizard assigns
the new ABC code to the item.

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2.4 Item Maintenance Options
CARDS >> INVENTORY >> ITEM >> ACCOUNTS BUTTON
NAVIGATION PANE >> INVENTORY >> CARDS >> ITEM >> ACCOUNTS BUTTON
18) Select the Accounts button in the Item Maintenance Window
19) Select the Accounts button to assign default posting accounts
• Defining Accounts: These accounts appear as the defaults when entering transactions. If you do not
enter posting accounts in this window, the accounts set up in Posting Setup are used.

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Account numbers may be entered using either the alias or the full account number. Click the Account Number
expansion button to open the Account Entry window where the alias can be selected.
Type Description
Inventory − Use this to store the value of the items currently in inventory. This
account always defaults on Sales Order and Purchase Order Processing
transactions.
Inventory Offset − Use this as an offset account on increase/decrease adjustments entered

in Inventory. Typically, this is a cost of goods sold account.
Cost of Goods Sold − Use this to store the cost of items sold in Sales Order Processing. This
Sales − Use this to record all the sales entered in Sales Order Processing. This
Markdown − Use this to store the discount amount on each specific item in Sales
Order Processing. This account always defaults on Sales Order
Processing transactions that have a markdown.
Sales Returns − Use this to store the value of returned items through Sales Order
Processing. This account defaults if Sales Order Proc. Setup has Use
Posting Accounts From set to Item.
In Use − Use this to store the value of items transferred or returned to an

In-Use status.
In Service − Use this to store the value of items transferred or returned to an

In-Service status.
Damaged − Use this to store the value of items transferred or returned into a
Damaged status.
Variance − Use this as the offset account to a variance transaction entered in

Inventory.
Drop Ship Items − Use this in Sales Order Processing to store the cost entered for an
inventory item being drop shipped to a customer (records a decrease to
the account). This is also used by Purchase Order Processing to record
the cost of the item being drop shipped to a customer (records an
increase to the account).

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Purchase Price Variance − Use this in Purchase Order Processing to record any difference in cost
between a shipment and invoice.
Unrealised Purchase − Use this to track the difference between the standard cost and the actual
Price Variance cost the item is received in Purchase Order Processing.
Inventory Returns − Use this to store the value of items transferred or returned into a
Returned status.
Assembly Variance − Use to store differences between actual costs and standard or average
costs when building a subassembly in Bill of Material.
2.5 Suggest Items

CARDS >> INVENTORY >> ITEM >> SUGGEST ITEM BUTTON
NAVIGATION PANE >> INVENTORY >> CARDS >> ITEM >> SUGGEST ITEM BUTTON
20) Select the Suggest Items button in the Item Maintenance Window

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21) Select the Suggest Items button in the Item Maintenance Window
• Suggest Item: Use the Suggest Sales Item Maintenance window to specify default suggested line items to
sell with an item when entering a Sales Order Processing invoice, quote, order, or fulfilment order. You can
select up to five line items.
• Document Type: Mark the Sales Order Processing document types that you want to suggest line items to
sell with a specific item.
For example, a backup power supply, additional memory, or a surge protector can be suggested sales
items for a computer when entering a sales quote. If you enter a sales quote for a computer in the Sales
Transaction Entry window, the suggested items display in the Suggest Sales Item Entry window.
• Item Number (scrolling window): Enter or select the item you want to suggest to sell with the selected
item number in the Item Maintenance window.
For example, a backup power supply, additional memory, or a surge protector can be suggested sales
items for a computer when entering a sales quote. If you enter a sales quote for a computer in the Sales
Transaction Entry window, the suggested items display in the Suggest Sales Item Entry window.
• Click Item Number: to open the Item Inquiry window, where you can view information about an item.
• Suggested Quantity: Enter the quantity of the item you're suggesting to sell.
• Sales Script is typically an internal message for the end user to perform an action when entering
a sales line item
• Analyse Button: Recommends companion items to be sold instead of entering items manually. When
selected the following window appears

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22) Suggested Sales Item Analysis Window
Click on the calculate button and suggested items will appear based on the following criteria:
• The system will tally the number of items sold on the sales transactions and the number of each companion
item sold with that item on each sales transaction in the Date / Documents Range selected.
• Once all companion items have been recorded, the system will compute the median for the transaction
quantities.
• The median quantity will be returned as the Suggested Quantity as a default quantity. The field will be
editable and you can change the default quantity.
• Inactive and discontinued items will be excluded from analysis.

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2.6 Item Kits
CARDS >> INVENTORY >> KITS
NAVIGATION PANE >> INVENTORY >> CARDS >> KITS
23) Item Kits
• Accounts and Costs: Select the origin of the cost of goods sold (COGS) account that defaults into a
sales transaction. When defaulting the COGS account From Kit Item you can easily get Profit Margin
reports for the Kit item, since the sales account is already taken from the kit item.
• Select the From Component Item setting if you want the COGS account to default from the component
item.
• This window also displays the current and standard cost amounts from the Item Maintenance window.
• Component Items: Enter the Component Item Number, the U of M and the Quantity of the component
item included in the kit. For example, if the kit is a swing set, you may include screws by the bag. An entire
swing set may require two bags of screws, so the unit of measure would be bag, and the quantity of that
unit of measure is two.
• The Description, Current Cost, and Standard Cost fields default information from the Item Maintenance
window.
NOTE:
• The same item number can appear as a component more than once, as long as the base U of M is
different for each entry.
• Kit items are not available in the Invoicing module. You must be registered for Sales Order Processing to
sell kit items.

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2.7 Item Sites
CARDS >> INVENTORY >> SITES
NAVIGATION PANE >> INVENTORY >> CARDS >> KITS
24) Item site setup
• Item Site Descriptions: Enter an item Site ID using up to ten characters. The description is for your
reference to further identify the Site ID and can be up to 30 characters long.
• Enter the address, telephone number, and fax number for this item site. This information appears on the
Item Site List.
• Item Site Tax Schedules: Select tax schedules that apply to merchandise sold at this site, and
merchandise delivered to this site. The sales tax schedule you select for Sales appears as the default tax
schedule in the Sales series when the item is sold using a shipping method of pickup. The sales tax
schedule you select for Purchases appears as the default tax schedule in Purchase Order when the item is
sold using a shipping method of delivery - if you have selected to use the shipping method to determine the
tax schedule.
• Assign Account Segment ID to the Site: Enter the segment of the General Ledger account number that
is set up to correspond to the physical inventory sites. By entering a segment number for each site set up,
you can break down expenses and revenues accordingly when you print financial reports for this account
segment in General Ledger.
• The site segment entered here overrides the site segment of all account numbers assigned to the item.
• Assigning Bins to Sites: Clicking on the Bins button (from the Site Maintenance window) opens the Item
Site Default Bins window to assign multiple Default Bin IDs for Purchasing, Sales, and Manufacturing
transactions. This window is only used if the Enable Multiple Bins option in the Inventory Control Setup
window is selected.
• After the user has set up a site, they may want to break it down further by assigning bins to the site. All bins
must be assigned to a specific site. Make sure Multi-bin functionality is enabled in the Inventory Setup
window before you set up your site/bin combinations. To open the Site Bin Maintenance window click the
Inventory series button and click Bins/Sites on the Cards Area Page.
• When entering a bin number and assigning it to a site, keep in mind the overall organisation of your bins
within the site. You might want to use a specific letter for the row in which the bin is found and number for

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the type of item. This is a simplistic example and will vary depending on the size and differences in the
items in your store.
• The Bin note opens a note entry window so you can add a note to any bin in the scrolling window. Highlight
the bin in the scrolling window, and then click the Note icon button at the top of the scrolling window to
open a note window. Enter information about the bin and save it before closing the window.
• Set up an ID using the ID field and use the longer description field to describe what the ID signifies. You
can easily find each ID by using the lookup feature after the Site ID has been created.
• Resource Planning used with PO Generator: Clicking the Planning button opens the Resource
Planning Site Maintenance window, where you can assign order point quantities for your system when
Inventory Items are running low. This window is used in conjunction with the Automatic Purchase Order
Generator. Refer to the Purchase Order Processing manual for more information.
• Assigning Multiple Items to Sites: The Item Site Assignment window makes it easy to assign a range of
items to a site. An item must be assigned to a site before you can buy or sell it. If you attempt to buy
or sell an item at a site to which it is not assigned you will be asked to add the item to the site on-the-fly.
• From the Site Maintenance window, select the desired site and click the Assign button. On the Item Site
Assignments window, set the restriction for selecting the items selected for this inventory site and click OK.
NOTE:
• The Segment ID is not used on all accounts that default onto a transaction. For example, accounts
defaulting from other modules, such as accounts receivable, do not use the Segment ID.
• Click the Assign button to open the Item Site Assignment window if you want to assign items at this time.
When initially setting up the inventory module, we recommend that you wait, however, until you have set up
your inventory items.

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2.8 Item Quantities
CARDS >> INVENTORY >> QUANTITIES/SITES
NAVIGATION PANE >> INVENTORY >> CARDS >> QUANTITIES/SITES
25) Item Site assignment
• Sites: If multiple sites have been set up, you can set the default to display quantities for all sites (All) or for
one site at a time (Assigned).
• Select All or a specific Site ID to view information in the remaining fields of this window. Some fields are
dimmed if you select All.
• The Default Site ID is used to identify an item's primary storage location. When entering a purchase order
on the Purchase Order Entry window, the default site defaults into the line item information if the PO Line
Site ID is set to Item's Default Site in the Purchase Order Setup window.
• Bins
Bins are containers in a warehouse used for storing inventory items. When inventory items are purchased,
they are received into the warehouse and placed in a bin, until the goods are ready to be consumed in a
manufacturing process or sold to the customer. Because items need to be moved into and from bins at a
moment’s notice, it is important to track the on-hand quantities in each bin.
If you selected a specific site ID, enter a Bin number where this item is stored. The bin number can be up to
twenty characters long. Bin numbers are printed on the stock count forms.
Select a specific Site ID in this window to have the Bins button available. This window is used for setting up
default bins in Purchase Order Processing, Sales Order Processing, and Manufacturing transaction entry
windows when Multi-Bin functionality is enabled. This allows users to define the following for each item/site
combination:
− Bin priority
− Maximum quantity
− Minimum quantity

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• This functionality is important when the receiving department is receiving goods into the warehouse. When
the user enters the receipt in the system, the user is not sure which bin to place the goods into. When the
user does a lookup on the bins for the site, the priority is displayed, as well as the Quantity on Hand in the
bin. With this they can make a better decision as to where to put the goods based on bin capacity and bin
priority.
• Last Quantities, Dates, and Creditors: Enter the last order quantity, last receipt quantity, last order date,
last receipt date, and the last creditor from which you ordered this item. If Purchase Order Processing is
registered, you cannot change these fields. This information appears on the Creditor Activity report.
• Primary Creditor: If you selected a specific site ID, enter the primary creditor for this item. This
information appears on the Detailed Item List. The primary creditor also defaults on new purchase orders
created from a back ordered item in Sales Order Processing.
• Quantities
Type Description
On Hand − Quantity in Stock
Allocated − Quantity reserved for sale. Click the link to Open the item allocation
enquiry window to see how they have been allocated.
Sold − Quantity sold in base unit of measure, updated from IV, SOP and IVC.
Returned, In Use, In − Updated during IVC/SOP returns or IV transfers.

Service, and Damaged
Backordered − Quantity on backorder in Sales Order Processing.
Requisitioned − Updated with integrating products, not used by Microsoft Dynamics GP
On Order − Quantity currently on order in Purchase Order Processing. Click on the

link to view the details.
Drop Ship PO − Quantity on a Drop Ship Order in Purchase Order Processing.
If you selected a specific site ID, you may enter the quantity requisitioned.
• Item Resource Planning: The Planning button opens the Item Resource Planning Maintenance window.
This is used to enter resource planning information for an item site combination. Select replenishment
methods and order policies to be used with the Auto PO Generator and the Purchase Advice Report. For
more information on Purchase Order PO Generator refer to the Purchase Order Processing manual.
• Stock Count Quantities: Click the Stock Count Button to open the Item Quantities Stock Count window
for an item at a specific inventory site.
Cycle counting is the periodic comparison of actual inventory to quantities in the inventory records. You can
specify a count frequency for an item, and use that value and the last count date to schedule the next count
due date.

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• Complete Last Stock Count Date and Time to record when the last stock count occurred. After a stock
count has been completed in the Stock Count Entry window, the Last Stock Count Date and Time fields are
automatically updated.
This field can be overridden. When you change the Last Stock Count Date the Next Stock Count Date is
reset, unless the Interval Days is set to zero.
Enter the number of days between stock counts for this item. The Stock Count Interval Days is added to
the Last Stock Count Date to compute the Next Stock Count Date. A change to this field resets the Next
Stock Count Date unless the Last Stock Count Date is zero.
The Next Stock Count Date and Time fields are updated automatically by adding the Stock Count Interval
Days to the Last Stock Count Date.
NOTE:
• The Stock Count Button is only available when the Item Quantities Maintenance window is displaying one
specific site.
• Click the Assign button to open the Item Site Assignment window if you want to assign items at this time.
When initially setting up the inventory module, we recommend that you wait, however, until you have set up
your inventory items.
2.9 Item Site Assignment

CARDS >> INVENTORY >> QUANTITIES/SITES >> SITE ITEM ASSIGNMENTS
NAVIGATION PANE >> INVENTORY >> CARDS >> QUANTITIES/SITES >>
SITE ITEM ASSIGNMENTS
26) Assigning an Item to one or more sites at once

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• Use the Site Item Assignments window to assign a range of sites to an item. You also can select a primary
creditor, landed cost group ID, and the item print option for each site you want to assign to the item.
• If you’re using multiple bins and you’ve specified default bins for the site, the bin selections aren’t
automatically assigned to the item-site combinations.
2.10 Item Creditors Maintenance

CARDS >> INVENTORY >> CREDITORS
NAVIGATION PANE >> INVENTORY >> CARDS >> CREDITORS
27) Assigning a Creditor to an Item
• Creditor Lookup and Descriptions: Select whether the lookup list should include all creditors or only
those that have been assigned to the item using this window.
• The creditor item and description fields default with the Item Number and Description entered on the Item
Maintenance window. The information can be changed or left with the default. Item number is alpha
numeric up to 30 characters and Description allows 100 characters.
• Indicate the quantity requisitioned in the Requisitioned field for this creditor. This field is informational and
is not automatically updated by Microsoft Dynamics GP. The On Order field and Drop-Ship PO fields are
updated from the Purchase Order Processing module.
• Quantities on Order: Indicate the quantity requisitioned in the Requisitioned field for this creditor. This
field is informational and is not automatically updated by Microsoft Dynamics GP. The On Order field and
Drop-Ship PO fields are updated from the Purchase Order Processing module.
• Enter the Minimum Order and Maximum Order quantities that the creditor allows you to place. The
inventory item's Maximum Order Quantity can be determined by many factors. They may include storage
space required/available, shelf life, usage rate, shipping requirements and cost considerations. Enter the
order size that is most economical to purchase in the Economic Order field. If you are using

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Manufacturing, the Order Multiple is used to adjust suggested order quantities when using the Period
Order Quantity or Lot for Lot order policy.
• Purchasing Unit of Measure: Select the purchasing U of M that defaults into the purchase order
transactions for this item. The default can be set to come From Item or From Item Creditor. If From Item
Creditor is selected, complete the adjacent field with the desired U of M.
• Free On Board Tracking: Microsoft Dynamics GP gives the ability to track Free On Board (FOB)
information for Purchase Order lines. This setting is beneficial when issues of in transit damage or loss
occur. Set the FOB field to identify the point at which the buyer takes ownership of an item shipment from a
creditor. Select the FOB setting of None, Origin, (the creditor's location) or Destination
(the buyer's location).
• Last Ordered Costs Per Item: Microsoft Dynamics GP automatically updates the Invoice Cost, Order
Quantity, Receipt Quantity, Order Date and Receipt Date fields. The Order Quantity indicates how
many items were ordered. The Receipt Quantity lists how many items were actually received. The Order
Date is the date of the last order placed with this creditor. The Receipt Date is the date you last received
an order from this creditor.
• Receipt Tracking: Complete the Receipts field with the number of receipts received from the creditor. This
field is updated each time a receipt is posted in Purchase Order Processing.
• Average Lead and Planning Time: Enter the average number of days, in the Average Lead Time field
between the time you place an order with this creditor and the time you receive the order. If you use
Purchase Order Processing, this field is updated each time a receipt is posted. The average lead time is
calculated using the following formula:
[(Number of Receipts) * (Average Lead Time) + (Received Date – Ordered Date)] /
(Number of Receipts + 1).
• Although the average lead time field is a reliable tracking of the number of days it takes to receive the
shipment after an order is placed, average lead time may not accurately reflect the number of days it takes
to get delivery on required inventory. Microsoft Dynamics GP uses the Planning Lead Time field to reflect
the estimated time both internally and with your creditor to receive shipment for an item.
For example, the average lead time for item ACCS-CRD-12WH may be six days but there may be two
additional internal days to complete the PO and to deliver the product to the correct department within your
organization. Therefore, the Planning Lead Time for this item would be eight days.

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2.11 Item Price Lists
CARDS >> INVENTORY >> PRICE LIST
NAVIGATION PANE >> INVENTORY >> CARDS >> PRICE LISTS
• Price Method: Select the Price Method for this item. Pricing methods control how prices are calculated for
items. The pricing method selected controls the values (either currency amounts or percentages) that can
be entered for each unit of measure in this window. The Price Method defaults from the item class and can
be changed.
The Price Method can be changed at any time. Changing the price level resets the scroll area of the Item
Price List window and removes the price list records for all currencies other than the functional currency.
The following are the pricing methods available to select:
− Currency Amount
− Percent of List Price
− Percent Mark-up - Current Cost
− Percent of Margin - Current Cost
− Percent of Mark-up - Standard Cost
− Percent of Margin - Standard Cost
When Multicurrency is registered, companies can create price lists that include multiple currencies when
the items use the currency amount or percent of list pricing methods.
Type Description
for each range of U of M entered in the scrolling window. For example,
you may sell a can of soda for AUD$0.55 per can if the customer buys 1
to 50, but sell the can for AUD$0.50 if the customer buys more than 50.
Type Description
Percent of List Price − (List price x price percentage)

Method
Use the percent of list price method to base prices on the manufacturer's
or distributor's list price. Enter a percentage of the list price when setting
up each unit of measure in the scrolling window. The calculated amount
is used for selling items in the selected U of M and the selected range.
For example, if the distributor's list price for a can of soda is AUD$0.20
and you wish to sell single cans at 250% of list, enter the percentage in

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the window. All cans of soda within the range will be sold at AUD$0.50,
or 250% of list price (0.20 x 250%) = AUD$0.50.
• Current Cost Price Method: When using a perpetual valuation method, you should select a pricing
method based on current cost. This ensures that the value of the inventory item and the price that it is
being sold are updated each time a shipment is received.
Type Description
Percent Mark-up − (Current cost + (current cost x percent)

- Current Cost
Using the percent mark-up - current cost method, you can enter a
percentage based on the current cost for each U of M in the scrolling
window. Each time you receive a shipment of an item in a specific U of
M, the price charged for the item changes according to the item cost
when it was received. However, the percentages displayed in the
scrolling window remain the same.
For example, you have selected percent mark-up - current cost as the
pricing method because you want the price for single cans of soda to be
routinely updated each time a shipment is received. If you enter 250% in
the Price column for the U of M Can, the price for single cans will always
be 250% more than you paid for your last shipment. In our previous
example, cost would be AUD$.20 and price would then be AUD$.70.
(.20 + (.20 x 250%) = .70.
Percent of Margin − Current cost + [(Current cost x price percentage) / (100 receive price
receive Current Cost percentage)]
The percent of margin pricing method allows you to enter the profit
percentage you want to achieve, based on the current cost of the item
being sold. Each time you receive a shipment, the current cost for the
item is updated and the price changes accordingly. However, the profit
margin percentage entered in the scrolling window stays the same.
For example, if you have selected percent of margin receive current cost
as the pricing method; the price for single cans of soda will be updated
each time a shipment is received. If you have entered a profit percentage
of 25%, the price for single cans will always be 25% more than the
current cost.
AUD$.20 + [(AUD$.20x25%)/(100%-25%)] = AUD$.27

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• Standard Cost List Pricing: When using a periodic valuation method, you should select a pricing method
based on standard cost. This ensures that the value of the inventory item and the price at which it is being
sold remain constant during the period.
Type Description
Percent Mark-up – − (Standard cost + (standard cost x percent)

Standard Cost
The Percent mark-up receive standard cost method is similar to the
percent mark-up receive current cost method, except that the prices
charged for each U of M are updated only when you update the standard
cost. Because the standard cost is updated periodically, it is an average
figure, and is not always the same as the amount most recently paid for
the item.
For example, if you have selected percent mark-up - standard cost as the
pricing method, the price for single cans of soda will be updated
periodically (but not each time a shipment is received). If you enter 250%
in the Price column for the U of M Can, the price for single cans will
always be 250% more than the standard cost. Assume the standard cost
= AUD$.30. (AUD$.30+ (.30x250%) = AUD$1.05.
Percent of Margin – − Standard cost + [(Standard cost x price percent) / (100 – price
Standard Cost percentage)]
The percent of margin – standard cost pricing method allows you to enter
[(AUD$.30x25%)/ (100%-25%)] =AUD$.40.
Price Group and Price Level: Select the Price Group to which you want this item associated. Price groups
allow you to group items with similar price lists for reporting purposes.
Enter the U of M you plan to use most often when selling the selected item. The U of M you enter appears as
the default in the transaction entry windows.
Enter the price level you plan to use most often when selling this item. The item's default price level is used for
that item on sales documents, if the price level on the customer card or receivables setup is blank.
Unit of Measure and Costs: Enter the U of M you plan to use most often when selling the selected item. The U
of M you enter appears as the default in the transaction entry windows. The following default from the Unit of
Measure Schedule window:
− U of M Schedule
− Base U of M
− Quantity Decimals

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The Standard and Current Cost fields default in from the Item Maintenance window.
Quantity Ranges and Price: Enter quantity ranges and prices for each U of M/price level/currency combination
assigned to this price list. Quantity ranges are used to assign different prices based on the quantity amounts a
customer purchases. For instance, a customer buying a quantity of three items may have to pay full retail price,
while someone who buys 250 may be given a discount for volume purchasing.
If you want the price entered for a specific U of M/price level/currency to apply to all quantities instead of a
range, select the All option and the maximum quantity range is displayed automatically. All ranges except the
selected range for this U of M/price level are deleted, and the price entered is applied to all quantities.
EXAMPLE: The following price levels have been entered into the system:
Price Level U of M All From To Price
RETAIL EACH 1 10 $10.00
RETAIL EACH 11 20 $9.00
RETAIL EACH 21 999,999,999,999 $8.00
• Graphical Price List Display: The graphical portion of the Item Price List Maintenance window displays
all currencies assigned to this item. You can expand on each currency to see the price levels and U of M.
By clicking the icon for a specific currency or price level, you can restrict the scrolling area to display only
the prices for that currency/price level.
28) Graphical Price List Display.
• Copy an Existing Price List: Click the Copy button in the Item Price List Maintenance window copy and
existing price list.

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• If you are using standard pricing, use the Item Price List Copy Maintenance window to copy an existing
price list from one item over the price list of another item. To copy a price list to several other items, use the
Price List Utilities wizard (Utilities > Price List Utilities).
• Rounding Options: Click the Options button to open the Item Price List Options window. This window is
used to define selling and rounding options.
29) Rounding Options
Indicate whether you want to sell the selected U of M/price level combination in whole units, or in whole and
fractional units. For example, if you are selling soda and Case is the selected U of M with RETAIL as the
selected price level, select Whole if you do not want to sell a fractional quantity of four or five cans.
Select Not Available if you do not want to sell the item for a selected U of M/price level. For example, you might
select Not Available for Can if you are not going to sell soda in quantities less than a six-pack.
• If the item's pricing method is Currency Amount, the rounding function is not necessary or available. For all
other Price Methods you may select from the following Round Policy's:
− None
− Up
− Down
− To Nearest
• Select None to not use rounding for a specific U of M/price level combination.
• Set the Round Policy field to Up to round up, Down to round down, and To Nearest to round up or down to
the nearest amount based on the settings in the Round Options and Round Amount fields.
• When the Round Policy is set To Nearest, amounts are rounded higher if the actual amount is equal
distance between the higher and lower amounts.
• If a Rounding Policy has been selected other than None, select a rounding option. If you select End In,
amounts are rounded based on the settings in the Rounding Policy and end in the amount entered in the
Round Amount field. End In is useful for businesses that normally price items ending in a specific number,
such as 9 or 50.

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• Select Multiple Of if you want the price to end in a multiple of the number entered in the Rounding Amounts
field. For instance, if you have selected Multiple Of and entered US$1.00 as the multiple, and the price
calculated is US$1.50, the amount is rounded to US$2.00 if the Round Policy is set to Up.
• Enter the amount for the Round Option to be based on.
• EXAMPLE: Item A has a list price of US$101 and a Price Method setting of % of List Price. The following is
a table of examples of different Round Policies, Round Options and Round Amounts.
Option Multiples of = $10.00 Ends in = $99.00

Round Up Price = $110.00 Price = $199.00
Round Down Price = $100.00 Price = $99.00
Round Nearest Price = $100.00 Price = $99.00
None Price = $101.00 Price = $101.00
NOTE:
• If using extended pricing, you can enter a negative net price in the Price Sheet Detail Maintenance
window. Also, the price type of Percent off has been changed to Percent of list. If using Percent of List as a
price type, you can increase prices to an amount greater than the list price.
• The currency amount can be used regardless of the valuation method selected for an item.
• The percent of list pricing methods can be used regardless of the valuation method selected for an item.
• To remove an existing price level or currency from the price list click the graphical icon for the price level or
currency you want to remove and click the Remove button. Removal of a price level or currency does not
affect transactions that have already been entered in Microsoft Dynamics GP.
If using Multicurrency Management, you can set rounding settings for each specific U of M/price
level/Currency ID combination.

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2.12 Item Purchasing Options
CARDS >> INVENTORY >> ITEM PURCHASING OPTIONS
NAVIGATION PANE >> INVENTORY >> CARDS >> ITEM PURCHASING OPTIONS
30) Enter a Default Purchasing Unit of Measure
• Unit of Measure: The scroll area displays the U of Ms from the Unit of Measure Schedule assigned to the
item.
• Indicate whether you want to purchase the selected U of M in whole units, or in whole and fractional units.
For example, if you are purchasing soda and Case is the selected U of M, select Whole if you cannot
purchase a fractional portion of a Case.
• Select Not Available if you do not want to or cannot purchase the item using that U of M. For example, you
might select Not Available for Can if you cannot purchase soda in quantities less than a six-pack.
• Define Revalue Percentage: The Revalue Inventory for Cost Variance field is available only for Sales
Inventory and Discontinued items that have the following valuation methods:
− FIFO Perpetual,
− LIFO Perpetual
− Average Perpetual
(If the valuation method for the item is FIFO Periodic or LIFO Periodic, the revaluation always occurs.)
Select this option to have purchase invoice receipts revalued if the cost variance for a matched invoice is
greater than the tolerance percentage.

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The Tolerance Percentage field is available only if Revalue Inventory for Cost Variance is selected.
Enter the percentage difference between the shipment receipt and the matched invoice that must occur to
have purchase receipts revalued. The purchase receipt is revalued if the cost variance (expressed as a
percentage) is the same as or more than the Tolerance Percentage. The difference can be positive or
negative.
• Manufacturer Reference: Open the Manufacturer's Item Number Maintenance window by clicking the
icon next to the item lookup. You can enter manufacturer's item numbers for an inventoried or discontinued
item and select the one you purchase most often. For example, assume that a creditor obtains the same
interchangeable item from several manufacturers, but you want to purchase items made by a specific
manufacturer. By entering the manufacturer's numbers here and designating one as the primary it is
printed on the purchase order.
NOTE:
• If the Tolerance Percentage is 0% then the purchase receipt is revalued every time there is a cost variance.
The currency amount can be used regardless of the valuation method selected for an item.
2.13 Item Stock Count Cycles

CARDS >> INVENTORY >> COUNT CYCLE ASSIGNMENT
NAVIGATION PANE >> INVENTORY >> CARDS >> COUNT CYCLE ASSIGNMENT
31) Set a Stock Count Cycle
• Process Details: Enter the number of days between the counting of the items to be processed in the Stock
Count Interval Days.
• Enter the date and time of the next stock count for the selected items.

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• Select a range of items using the Stock Count Range drop-down list. A restriction range can be set for the
following:
− Site ID
− ABC Code
− Item Class
− Item Number
− Generic Description
− Description
− Item Type
Click the Details button of the Stock Count Cycle Assignment window to open the Cycle Assignment
Details window. From this window you can view all of the inventory items to be processed during the stock
count cycle assignment process.
To verify the items in the list, click the Show button to display additional information such as Last Count
Date or Next Count Date. You can also zoom back to the Item Maintenance or Site Maintenance windows.
• Finalising Stock Count Cycle: If you want to remove individual items from processing by clearing their
selections, click the Include option to clear the selection for that item. You may also use the Unmark All and
Mark All buttons to change the status of the Include option field.
After confirming the Cycle Assignment Details, click the OK button to return to the Stock Count Cycle
Assignment window.
Click the Process button to reset the Item Quantities Stock Count window for the selected items.
Indicate whether you want to purchase the selected U of M in whole units, or in whole and fractional units.
For example, if you are purchasing soda and Case is the selected U of M, select Whole if you cannot
purchase a fractional portion of a Case.

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2.14 Item Debtor Maintenance
CARDS >> SALES >> DEBTOR ITEMS
NAVIGATION PANE >> SALES >> CARDS >> SALES >> DEBTOR ITEMS
32) Set Customer Item relationships
• Customer Item Maintenance 2: To track customer item information:

• Enter the customer whose item information you want to record.
• Enter the item number you want to link to the customer.
• Complete the Debtor Item, Debtor Item Description, Debtor Item Short Name and Debtor Item Generic
fields with customer item information. The five user-defined fields are for informational purposes only. The
fields are not used on Sales Order Processing transactions.

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3) Daily Procedures
The Objectives are:

• Differentiate between Batch posting and Transaction posting
• Examine different methods for posting
• Enter Inventory transactions using a batch
• Enter Adjustment Transactions
• Enter Variance Transaction
• Understand the different types of transactions and windows used to enter the different methods for posting
Inventory Transaction, Inventory Transfer, and Inventory Variance.
• Transfer items from one site to another
• Change the quantity type of an item
• Transfer items between bins within a site
• Track In-Transit transfers via a multiple sites
• Enter and generate a stock count
• Enter items selected for a physical stock count
INTRODUCTION
Inventory Daily Procedures explains the day to day activity a user would typically encounter after setup of the
Inventory Control module. This would include:
• Posting transactions
• Entering adjustment and variance transactions
• Generating stock counts
• Transferring items to different sites/bins
3.1 Inventory Batch Entry

CARDS >> INVENTORY >> BATCHES
NAVIGATION PANE >> INVENTORY >> CARDS >> INVENTORY >> BATCHES
Use the Inventory Batch Entry window to create batches to record inventory transactions.

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33) Inventory Batch Entry.
• Batch ID. A Batch ID is an identifier for a batch. Use an ID that is descriptive and easily recognised. Enter
a comment to further identify the batch. Enter a unique Batch ID when reprinting posting journals. For
example, you could use the date including the year as part of the Batch ID.
• Origin and Frequency. Select whether this batch will be used to enter adjustment and variance
transactions or transfer transactions. The selection made here determines which transaction entry window
opens when you click the Transactions button.
If you have entered a batch frequency other than single-use, enter the number of recurring postings for this
batch. If a frequency of weekly, monthly, quarterly, etc. is selected, the posting date increments according
to the type selected. For example, the transaction date will be incremented by seven days if weekly is
selected as the batch type. If Miscellaneous is selected as the batch frequency, you can enter a specific
number of days to increment the transaction date.
Recurring batches can be posted repeatedly if you have not set a limit on the number of recurring postings.
When the number of times the batch has been posted is equal to the number of recurring postings, the
batch is automatically deleted. Recurring batches save valuable data entry time if you are certain the same
entries will be made again in the future. You can delete recurring batches at any point.
• Posting to General Ledger. Select Post to General Ledger to post this batch to General Ledger. Do not
post a batch to General Ledger if you have entered the invoice/voucher for the items received into
Inventory in the Microsoft Dynamics Payables Management module. The transactions from Payables
Management post to General Ledger and if you also posted to General Ledger from Inventory, you would
have posted twice to General Ledger.
• The current user date defaults for the Posting Date. Enter a General Ledger posting date if you selected to
post by batch date in the Posting Setup window. If you are not posting by batch date, the batch is posted
using the date entered in the Transaction Entry window.
If you are using the transaction date as the posting date, the date entered for the Inventory transaction is
also the default date for the General Ledger posting date. The posting date can be changed when entering
transactions.
• Batch Controls and Passwords. Control fields are available to enter the number of transactions and the
total amount of the transactions entered in the batch. These fields can be used as a reference against the

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Actual fields to verify that the correct number of transactions and batch total have been entered before
processing or posting.
If you have selected to verify the number of transactions and totals for the batch in the Posting Setup
window, the system automatically verifies the control to the actual. You are not allowed to select or post the
batches until the actual are equal to the controls.
If Require Batch Approval is selected and a password has been entered in the Posting Setup window, and
the Approval check box is selected on this window, you are required to enter the approval password before
selecting the batch for posting.
Do not select the Password Approval check box until all transactions have been entered and verified and
the batch is ready for posting.
When a batch requires approval but has not been approved yet, it has a posting status of Unapproved. A
status of Unapproved indicates that the batch requires approval, but has not been approved yet and is
available for editing. When a batch has been approved it has a status of Approved. A batch that requires
approval must be approved before it can be selected for posting.
Once a batch has been approved, the User ID field is updated with the User ID of the person who approved
the batch. The Approval Date is also filled with the current system date at the time of approval.
NOTE:
• After a recurring batch is posted, the quantities entered for the transactions are changed to zero. Before
posting the batch again, re-enter quantity information and any new serial or lot numbers, for items that
require this information.
• The ‘Post To General Ledger’ option does not take the place of the Post to General Ledger option in the
Posting Setup window. To post to General Ledger, select this field and the option in Posting Setup. If either
one of the options is not selected, your batches do not post to General Ledger.
• Once a batch is approved, it cannot be edited. You must clear the Approved check box on the batch
window to edit the transactions contained in the batch.
3.2 Adjustments and Variance Transactions

TRANSACTIONS >> INVENTORY >> TRANSACTION ENTRY
NAVIGATION PANE >> INVENTORY >> TRANSACTIONS >> TRANSACTION ENTRY

• Use the Item Transaction Entry window can be used to enter, delete, or modify transactions that record an
adjustment to, or variance of inventory quantities. Adjustment transactions are used to record changes to
current inventory quantities when items are sold or received. Variance transactions record changes to
current inventory quantities when a physical count reveals a discrepancy between the recorded quantities
on hand and the actual quantities on hand.

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34) Inventory Transaction
• Document Type. Select Adjustment to record an increase or decrease to inventory quantities because an
item has been received or sold. Select Variance to record an increase or decrease to inventory quantities
based on a physical count of the items on hand.
• Posting accounts defaults based on the document type selected.
• Document Number and Date. The document number defaults from the Inventory Control Setup window.
Each time transactions are saved or posted, the default document number increments by one. The number
can be changed here, but the system continues defaulting numbers based on the entry in the Inventory
Control Setup window. Document numbers appear on the edit list and posting journal as part of the audit
trail.
• Recurring batches can be posted repeatedly if you have not set a limit on the number of recurring postings.
When the number of times the batch has been posted is equal to the number of recurring postings, the
batch is automatically deleted. Recurring batches save valuable data entry time if you are certain the same
entries will be made again in the future. You can delete recurring batches at any point.
• The document date may be different from the posting date. The user date is displayed as the default; if a
different document date is desired, enter the new date.
• If you selected to post batches by transaction date in the Posting Setup window, the document date is the
same as the posting date. To use a different posting date, click the Date expansion button and enter the
posting date.
• Default Site ID. The site ID entered here defaults for all items entered on this transaction. When posting
accounts have been selected for an item, each transaction is posted to the posting account that contains
the site segment entered in the Item Site Maintenance window. For example, if you are using the first

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account segment to represent sites, your Inventory Offset account might be 01-1300-01 for an item at one
site, and 02-1300-01 for the same item at a different site.
• Items and Quantities. Enter an item for which you want to adjust quantities. When an item and site have
been entered, the current quantity available at that site is displayed below the scrolling window, according
to the unit of measure selected.
• Reason Code: Enter or select a reason code to identify the cause for the item transaction. Only reason
codes specified for the transaction type you’re entering will be available.
• Unit of Measure and Quantity. After selecting a unit of measure appropriate for the item, enter the quantity
of the adjustment. Enter a negative number if entering a decrease adjustment and a positive number if
entering an increase adjustment.
• Unit Cost. The Unit Cost field displays the current cost or standard cost of each item. If decreasing the
quantity of the item, you cannot change the cost, because you will be removing existing items that already
have a cost associated with them. If the item quantity is increased, you can change the cost.
• The cost credited to the Inventory account for decrease adjustments or variances is based on the valuation
method for this item.
• If using a periodic valuation method, the unit cost is the standard cost for the item.
• If using a perpetual valuation method, the unit cost is the actual cost of the item as recorded on a purchase
receipt, regardless of the document type.
• If using the average perpetual method, the unit cost is the current cost, which is the average cost of the
items on hand.
• Site ID. The Hide and Show buttons can be used to display the description and site for each item entered
in the scrolling window. If multiple sites are set up, you can change the item site if the default site entered is
not correct for a specific line item in the scrolling window. All lines of the transaction do not need to use the
same site.
• Do not select the Password Approval check box until all transactions have been entered and verified and
the batch is ready for posting.
• When a batch requires approval but has not been approved yet, it has a posting status of Unapproved. A
status of Unapproved indicates that the batch requires approval, but has not been approved yet and is
available for editing. When a batch has been approved it has a status of Approved. A batch that requires
approval must be approved before it can be selected for posting.
• Once a batch has been approved, the User ID field is updated with the User ID of the person who approved
the batch. The Approval Date is also filled with the current system date at the time of approval.
• Assign Bins to Sites. If using multiple bins, use the Bin Quantity Entry window to specify bin quantities
within a site for a transaction. For example, if you are entering beginning quantities and have 100 widgets
at the North site, you can use the Bin Quantity Entry window to specify which bins those widgets are in.
• The Bins button is available after clicking the cursor in the item detail scrolling window.
• If entering a transaction that decreases the quantities in the bins, the upper scrolling window displays
information about the bins and quantities currently available. If entering a transaction that increases the
quantities in the bins, the upper scrolling window is blank. Use the Bin and Quantity Selected fields to add
information to the lower scrolling window.
• A document number is added to Inventory Control Management for Bin Transfer transactions. To allow
better tracking of your transactions you can view item bin transfers in a new enquiry window.
• Use the Bin Quantity Entry window only if the items are not tracked by lot or serial numbers. If the items are
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• When you enter a bin number and assign it to a site, keep in mind the overall organization of your bins
within the site. You may want to use a specific letter for the row where the bin is found and number for the
type of item. This is a simplistic example and will vary depending on the size and differences in the items
stored.
• The Bin note opens a note entry window so you can add a note to any bin in the scrolling window. Highlight
the bin in the scrolling window, and then click the Note icon button at the top of the scrolling window to
open a note window. Enter information about the bin and save it before closing the window.
• Set up an ID using the ID field and use the longer description field to describe what the ID signifies. You
can easily find each ID buy using the lookup feature after the Site ID has been created.
• The extended quantity is total line quantity for the transaction. This number takes into consideration the
number of items and number of units of each item associated with the transaction.
• The quantity of the item available in each bin at the site is displayed. (If no quantities are available in a bin,
it is not displayed in the scrolling window.)
• In the lower part of the scrolling window the quantity selected from the bin displays. The upper part of the
scrolling window displays the quantity of the item selected from each bin.
• The quantity type displays the On Hand, Returned, In Use, In Service, or Damaged information for each bin
and associated items.
• The selected bin displays the items to be taken from or added for the transaction.
• The selected quantity displays the total quantity of items selected (the total of the Quantity Selected column
in the lower scrolling window).
• The site ID determines which site the bin is located.
• Assign Posting Accounts. Click the Distributions button to open the Item Transaction Distribution Entry
window, where you can change the posting accounts assigned to a selected item. When transactions that
contain this item are posted, the posting accounts you select are updated with amounts that reflect the
quantity posted.
• If you are entering an adjustment, the Inventory and Inventory Offset accounts are displayed. If you are
entering a variance transaction, the Inventory and Variance accounts are displayed.
• When you post this transaction, the selected accounts are updated with cost amounts for the selected item.
For example, if entering a decrease adjustment for an item, the actual or standard cost is posted to the
posting account. For an increase adjustment, the unit cost entered for the transaction is posted.
• Enter Serial or Lot Numbers. After tabbing off of the item, the serial or lot entry window opens if the item is
tracking serial or lot numbers. You can also click the Serial/Lot button to open either the Item Serial
Number Entry or Item Lot Number Entry window to track this item by lot or serial number.

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35) The Item Serial Number Entry Window.
• Serial Numbers. The Item Serial Number Entry window can be used to select existing serial numbers if
you are entering a decrease adjustment, or to enter new serial numbers if you are entering an increase
adjustment.
• Serial Numbers can be selected one at a time or as a group of numbers by selecting the Shift or Ctrl key
options.
• The insert button will move all selected serial numbers from the available list to the selected list
• If you have opened the Item Serial Number Entry window, the item number, description, site, extended
quantity and number of selected serial numbers are displayed. The extended quantity is the adjustment
quantity entered for this item in the Item Transaction Entry window.
• A decrease adjustment requires that you select a number of serial numbers equal to the extended quantity
and click Insert to insert them in the Selected scrolling window. If you are entering an increase adjustment,
enter each new serial number in the Serial Number field and click Insert to insert it in the Selected scrolling
window. When you have finished adding or allocating serial numbers, click OK and the Item Transaction
Entry window is redisplayed.
• The Bin and Bin Restrictions are only available when using multiple Bins. Select this option, and then enter
or select a bin to limit the information in the Available scrolling window to the items in the bin.
• Lot Numbers. If the item selected is tracking lots, the Item Lot Number Entry window is used to:
• select existing lot numbers (if entering a decrease adjustment)
• enter new lot numbers if entering an increase adjustment

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Allocating lot numbers is similar to allocating serial numbers; if the adjustment you are entering is an increase,
new lot numbers and quantities can be added in this window. If you are entering a decrease adjustment,
existing lot numbers and quantities can be selected from the Available scrolling window.
If you are entering new lot numbers and select to track this item by a lot category in Item Maintenance, values
can be assigned to the lot category attributes. Click the expansion button and enter values for the lot attributes.
Even if lot categories are not used, you can use the expansion window to enter manufactured date and
expiration date. Print the Lot Number List to see a list of all lot numbers and their quantities.
A decrease adjustment requires you to select quantities of lot-numbered items equal to the extended quantity
and click Insert to insert them in the Selected scrolling window.
If you are entering an increase adjustment, enter a quantity for each new lot number in the Lot Number field
and click Insert to insert it in the Selected scrolling window. When you finish adding or allocating lot numbers,
click OK to redisplay the Item Transaction Entry window.
The Show All Bins and Restrict to Bins are only available when using multiple Bins. Select this option, and then
enter or select a bin to limit the information in the Available scrolling window to the items in the bin.
36) Item Lot Number Entry Window.
Post Single Transactions. If entering transactions individually (without a batch), they must be posted by
clicking the Post button. Transactions entered individually cannot be saved and posted later. When you close
the Item Transaction Entry window, the Transaction Posting Journal prints listing all transactions posted using
the transaction-level method from the last time the window was opened. When you post inventory transactions
at the transaction level, they create a batch in the general ledger. The Post to General Ledger function can only
be controlled in the Inventory Batch window.

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• Transaction Edit List. Always print a Transaction Edit List before posting to verify the accuracy of the
transactions entered into your batches. Edit lists cannot be printed for transactions entered without a Batch
ID.
To print a Transaction Edit List, save your last transaction and select Print from the File menu or click the
Printer icon in the upper right corner of the transaction window. You can print an edit list from either the Item
Transaction Entry or Inventory Batch Entry window if a Batch ID is entered. If errors are identified on the edit
list, correct the transactions and print another edit list before posting.
• Post Transactions. Always back up your company's accounting data before posting batches of
transactions. If there is a power fluctuation or some other posting problem, this enables you to restore your
data and begin the posting process again. Depending upon the way your system is set up, the Transaction
Posting Journal may or may not be printed when you post batches. Audit trail reports are optional; they can
be printed when you set up your system. Refer to the Posting Setup section of the System Administration
training manual.
If using Inventory and General Ledger and you have selected to post this batch to General Ledger, information
is posted from Inventory into a batch in General Ledger Transaction Entry. If you have selected to post
transactions through General Ledger, the transactions post to the General Ledger files and appear on General
Ledger reports after you post the batch in Inventory.
NOTE:
• There is no access to the Item Transaction Entry window until at least one site is entered using the Item
Site Maintenance window.
• When using the Microsoft Dynamics GP Purchase Order, Microsoft Dynamics GP Bill of Materials,
Microsoft Dynamics GP Invoicing, or Microsoft Dynamics GP Sales Order processing modules, inventory
quantities are affected when transactions from those modules are entered and posted.
• The same document number may not be used more than once.
• If you enter an item that has an item type of kit, service, miscellaneous or flat fee, a message alerts you
that these item types cannot be adjusted, because quantities cannot be tracked for these items.
• If entering an Item Number, Quantity or Site ID that is incorrect, use the Delete Row command from the
Edit menu to clear the line information and re-enter it correctly.
at the following cost:
• For LIFO/FIFO Periodic, the Standard cost is used.
• For Average Perpetual, the Average cost is used.
• The audit trail reports for individually posted transactions are generally the same as the audit trail reports
for transactions posted in batches. The reports for individually posted transactions, however, contain
information only for the transactions entered and posted since the transaction entry window was opened.

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3.3 Item Transfers
TRANSACTIONS >> INVENTORY >> TRANSFER ENTRY
NAVIGATION PANE >> INVENTORY >> TRANSACTIONS >> TRANSFER ENTRY

• The Item Transfer Entry window can be used to enter transactions that record a transfer of inventory items
from:
• One site to another
• One quantity type to another
• For example, this window can be used to transfer an item from the quantity type in use to the quantity type
in service, and from site A to site B. If you are using multiple sites, it is often necessary to transfer inventory
to maintain an optimum quantity at all sites.
37) Item Transfer Entry Window

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• Document Information. The Document Type defaults as Transfer since this is the only type of document
used in this entry window. This type may not be changed.
• The Document Number defaults from the Inventory Control Setup window. Each time transactions are
saved or posted, the default document number increments by one. The number can be changed here, but
the system continues defaulting numbers based on the entry in the Inventory Control Setup window.
Document numbers appear on the edit list and posting journal as part of the audit trail.
The Document Date may be different from the posting date. The user date is displayed as the default; if
you want to use a different document date, enter the new date. If you select to post batches by transaction
date in the Posting Setup window, the document date is the same as the posting date. To use a different
posting date, click the Date expansion button and enter the posting date.
• Default Site IDs. The site IDs entered here default for all items entered on this transaction. The From site
is displayed in the scrolling window as the site from which the selected item is transferred. The To site is
displayed in the scrolling window as the site to which the selected item is transferred.
When selecting default sites, enter the site from which, or to which, the majority of your inventory items are
transferred.
Items and Quantities. Enter the items to transfer in the scrolling window. When an item and the From site
are entered, the current quantity available is displayed below the scrolling window, according to the unit of
measure selected. For example, if 100 single items are available, and you select Pair as the U of M, the
quantity displayed is 50. If you changed the U of M to Each, the quantity displayed is 100.
• Enter the unit of measure this item is being transferred in. The base unit of measure defaults from the U of
M Schedule for the item. You can change the U of M to any unit defined in this item's schedule. For
example, you might want to change the U of M if your base unit of measure is Each, but you are entering a
transaction in which the item was transferred by the case. The quantity available is displayed, based on the
unit of measure you select, as well as the site entered.
The Unit Cost field displays the current cost of each item and cannot be changed. The cost credited to the
Inventory account is based on the valuation method for this item.
• If using a periodic valuation method, the unit cost is the standard cost of the item.
• If using a perpetual valuation method, the unit cost is the actual cost of the item as recorded on a purchase
receipt.
Enter the quantity of this item to transfer in the selected unit of measure. You cannot enter a negative
number in this column. The quantity entered here is decreased at the site being transferred from and
increased at the site being transferred to.
The Hide and Show buttons display the description and sites for each item entered in the scrolling window.
You can change the item sites if the default sites are not correct for a specific item.
Changing Bins. If using Multi Bins, click the Bins button to open the Bins Transfer Entry to enter bin
information for item transfers. In this window, select the bins you are transferring items from and to. The
Extended Quantity must match the Selected Quantity. Insert each selection until those fields match.

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38) Bin Quantity Transfer Entry Window.
• Enter or select the bin and site combination you are transferring items from. All items will be transferred out
of this site and the quantity is decreased after the transfer is complete. The Quantity Available field helps to
determine how many items can be transferred.
The lower scrolling window displays the quantity of items selected to transfer from a specific bin.
Enter or select the bin at the To Site you want to transfer items into. The scrolling window displays the
selected bin at the To Site you will be transferring your items to.
• Change Quantity Types and Assign Posting Accounts. Click the Quantity Type button to open the Transfer
Item Type Entry window to change the quantity type of a selected item when it is transferred. For example,
if you are moving 10 sofas with a quantity type of On-hand from site 1 to site 2, and those sofas have been
damaged, use this window to change the quantity type to Damaged. When the transfer transaction is
posted, the 10 sofas are moved to site 2 and the quantity type is changed to Damaged.

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39) Item Quantity Type Entry Window.
• Assign Posting Accounts. Click the Distributions button to open the Item Transfer Distribution Entry
window, to change the posting accounts assigned to a selected item. If you are transferring from site to site
and assigned a segment to the site, the distribution window reflects the site IDs accounts. If you are
transferring from type to type, you see the different accounts assigned to the types (in use, returned,
damaged.) When transactions that contain this item are posted, the posting accounts you select are
updated with amounts that reflect the quantity that has been posted.
• Enter Serial or Lot Numbers. If an item is entered that tracks serial or lot numbers, the window opens when
you move off the line item, or you can click the Serial/Lot button to open either the Item Transfer Serial
Number Entry or the Item Transfer Lot Number Entry window.
• Serial Numbers. Use the Item Transfer Serial Number Entry window to select existing serial numbers to
transfer. The item number, description, site, extended quantity and number of selected serial numbers
display. The extended quantity is the transfer quantity entered for this item in the Item Transfer Entry
window.
A transfer entry requires that you select the number of serial numbers equal to the quantity to be
transferred and click Insert to insert them in the Selected scrolling window. When finished inserting the
serial numbers (the Extended Quantity must match the Serial Numbers Selected) click OK and the Item
Transfer Entry window becomes active. The Show All Bins and Restrict to Bins are only available when
using multiple Bins. Select this option, and then enter or select a bin to limit the information in the Available
scrolling window to the items in the bin.
• Lot Numbers. Use the Transfer Lot Number Entry window to select the lot numbers of items to transfer
from one site to another. Transferring lot numbers is similar to transferring serial numbers. Existing lot
numbers and quantities are available for selection in the scrolling window. When transferring lot-numbered
items, use the following procedure:
• Select a quantity of items with lot numbers equal to the quantity indicated in the Item Transfer Entry
window.
• Click Insert to insert item into the Selected scrolling window (When finished, the Extended Quantity must
equal the Lots Selected).
• Click OK and the Item Transfer Entry window is redisplayed. The Show All Bins and Restrict to Bins are
only available when using multiple Bins.
• Select the Bins option, and enter or select a bin to limit the information in the Available scrolling window to
the items in the bin.

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• Post Single Transactions. When entering transactions individually (without a batch), they must be posted
by selecting the Post button. Transactions entered individually cannot be saved and posted later.
• When you close the Item Transfer Entry window, the Transfer Posting Journal prints listing all transactions
posted using the transaction-level method since the last time the window was opened.
• Transfer Edit List and Post Transactions. When using batches, always print a Transfer Edit List before
posting to verify the accuracy of the batches entered. Edit lists cannot be printed for transactions entered
without a Batch ID. To print a Transfer Edit List, select Print from the File menu. An edit list can print from
either the Item Transfer Entry or Inventory Batch Entry window as long as a Batch ID is entered.
If errors are identified on the edit list, correct the transactions and print another edit list before posting.
Transfer Entry transactions are posted in the same manner as discussed in the Adjustment and Variance
Transaction Entry section of this manual.
• Cost Variance Journal. When posting increase documents to an item for which an override document
exists, a Cost Variance Journal is printed during the posting process. An override document is a sale or
inventory adjustment where the available quantity for the item was overridden. In other words, Microsoft
Dynamics GP did not think these was enough quantity to complete the transaction, but you decided to
proceed with the transaction anyway. This journal lists the following:
• Item
• Override receipt number
• Site ID
• Extended quantity
• Override unit cost
• Document unit cost
• Variance
The variance represents the difference in the cost of the override receipt and the cost on the increase
transaction for the item. The variance displays as negative if the override unit cost is less than the
document unit cost.
Cost Variance Example. Inventory shows a quantity on hand of five cans of soda. A decrease transaction
is entered for 15 cans of soda. When posted, this causes an override receipt in inventory for 10 items at the
current cost, which is AUD $0.25.
Receipt Value
Type Received Sold Cost
Number Remaining
Adjustment 001 5 5 0.25 0.00
Override 002 10 0.25 ($2.50)AUD

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40) Cost Variance Report Example
This report shows the variance between the override unit cost of AUD$0.25, and the document unit cost of
AUD$0.30. The report also lists the number of units the variance is for, 10.
The report shows that the following adjustments need to be made in General
Account Debit Credit

Cost of Goods Sold 0.50
Inventory 0.50
Inventory now shows:

Receipt Value
Type Received Sold Cost
Number Remaining
Adjustment 001 5 5 0.25 0.00
Increase 003 30 10 0.30 ($6.00)AUD
• The same transfer document number cannot be used more than once.
• If line items have not been assigned to the default sites, no site is displayed and you need to make the item
available at the site by clicking Assign on the Site Maintenance window before continuing.
• If you enter an item that has the item type of kit, service, miscellaneous or flat fee, a message displays
saying that these item types cannot be transferred.
• The Cost Variance Journal prints anytime an increase in quantity is posted to inventory for an item for
which an override document exists. It is a good practice to print this posting journal to the screen (even if
you do not print other posting journals). If a cost variance exists, print the journal to paper and use the
document to enter the appropriate general ledger entry.
• An increase to inventory quantities results from any of the following:
• Return document in Sales Order Processing
• Return document in Invoicing
• Shipment document in Purchase Order Processing
• Shipment/Invoice document in Purchase Order Processing
• Increase Adjustment, Variance or Transfer document in Inventory

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3.4 Bin Transfer Entry
TRANSACTIONS >> INVENTORY >> TRANSFER ENTRY
NAVIGATION PANE >> INVENTORY >> TRANSACTIONS >> TRANSFER ENTRY

• When using multiple bins, use the Item Bin Transfer Entry window to transfer quantities from one bin to
another within a site. (To transfer items from one site to another, use the Item Transfer Entry Window.)
41) Item Bin Transfer Entry Window.
Enter the item number and site of the item to transfer. Select the site that includes the bins you are transferring
items between, along with the To and From bins used in the transfer process.
3.5 In-Transit Transfer

TRANSACTIONS >> INVENTORY >> IN-TRANSIT TRANSFER ENTRY
NAVIGATION PANE >> INVENTORY >> TRANSACTIONS >> IN-TRANSIT TRANSFER

ENTRY
In-Transit Transfers are a multiple site distribution system that allows transfer of materials from one site to
another. Typically, this process is used when a transfer includes some amount of freight time between the initial
origin and the final destination. In these cases, a "via site" can be used to ensure users do not try and sell
material that is not currently at the destination site (typically the warehouse). Using this process allows a middle
site for tracking purposes. Landed costs are often used with these type transfers.

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• In-Transit Transfer Entry. In this window the user can specify a From Site, In-Transit Site, and To Site. At
this point users can enter new information for a new In-Transit transaction or look up an existing
transaction. To create a new In-Transit transaction, click the New button.
If an existing transaction is needed, use the Document Number lookup to view all saved transactions. The
lookup window displays the status of previously saved transactions.
42) In-Transit Transfer Entry Window.
• In-Transit Statuses. The following is a list of Possible In-Transit Statuses (you can view the status in the
In-Transit Entry window as well as other In-Transit Window):
• Picked - Indicates that the items on the in-transit transactions are picked but not yet shipped. The
transaction has this status after the transit transaction is Saved. At this point, the user may still edit the in-
transit transaction.
• Shipped - Indicates that the transaction has been shipped and is in route to a destination via the transit
mechanism (site). This occurs when the user clicks the Ship button in the In-Transit Transfer Entry window.
The details may be observed but the transaction cannot be edited with this status.
• Editing - Indicates the transaction is opened by a user in the system or in the middle of a system process.
The transaction cannot be edited with this status.

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• Quantity and Shipping. The In-Transit Transfer Entry window has quantity fields that allow the user to
track quantity values with various statuses. Each line item has the following:
• Qty Ordered
• Qty Picked
• Shipped field
• The Qty ordered and Qty Picked fields display the number of items ordered and the number of items picked
off the shelf and ready to be shipped. The quantity shipped field will be updated after the In-transit
transaction is shipped. This is accomplished by clicking the Ship button. If the user would like to view a
quick snapshot of how many items remain available to order and ship, highlight the line item. Highlighting
the line item updates the Quantity Available field. This quantity available is based on the item/site
combination at the time the transaction is opened.
• Shipping Method and Internet Tracking. If the in-transit site uses UPS or FED EXP and the system is
currently connected to the internet, the shipment can be tracked using the appropriate home page for the
shipper. If the shipping site has not been set up, simply type in the shipper (UPS or FED EXP) and it will
ask if you would like to add this site. Once this site is added, click on the internet icon next to the Ship
Method field to access the internet home page.
• Shipping Process. After verifying all the information in the In-Transit Transfer Entry window, the next step
is to ship this transaction. When the user clicks the Ship button, it signifies that the items are being
transported using the defined Via Site. At this point the system creates journal entries for the transfer of
inventory from the originating site to the in-transit site or the destination site.
The transfer does not automatically move from the From Site to the Via Site to the To Site. If you designate
an in-transit site to complete the transfer to the destination site by opening the Receivings Transaction
Entry window in Purchase Order Processing and receiving the items into the To Site.
• Purchase Order Receiving Completion. To complete an In-Transit transaction the user must enter the
Purchase Order Processing Receivings Entry window. To open this window, click the Purchasing Series
button and click Receivings Transaction Entry on the Transaction content pane.
Use the drop-down option next to the type field to select In-Transit Inventory. Notice that the Creditor ID
field is not available after selecting this type due to the fact that the In-Transit site signifies the items are
“en-route” to the destination rather than being purchased by a creditor.
The Transfer Number lookup field in the line item section of the window allows the user to view all the
available shipments in-transit.
After the Transfer document is selected, use the Item lookup to view and select all the items associated
with this shipment before posting this transaction. After this transaction is posted, the goods will be
removed from the Via site and placed in the final destination site.
3.6 Stock Count Scheduling

TRANSACTIONS >> INVENTORY >> STOCK COUNT SCHEDULE
NAVIGATION PANE >> INVENTORY >> TRANSACTIONS >> STOCK COUNT

SCHEDULE
• Inventory management and control is a necessary but costly activity. The stock count feature allows you to
easily create and maintain a schedule for counting items, which helps ensure an accurate inventory.
You can initiate stock counts at any time for selected items (sometimes called physical counts) or
determine a counting schedule for each inventoried item. Once a stock count has been initiated, a
snapshot of inventory is taken at that moment in time and actual results can be entered against the

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snapshot. Any difference is computed as a variance and results in adjustments made to Inventory and
General Ledger.
• Stock Count Schedule. Use the Stock Count Schedule window to create a stock count schedule which is
a list of the specific items at a specific site to be counted during a specific count. When using multiple bins,
you can also specify the bins to be included in the stock count. To begin a stock count, use the Stock
Count Schedule window to determine which items at which sites will be counted.
• Items can be added to a schedule individually or by using the Mass Add button to add multiple items. You
can then print count forms or labels to be used during your physical stock count.
43) Stock Count Schedule Window.
• Stock Count ID and Status. To schedule items to be counted, enter a new Stock Count ID and description.
• The Status field notifies you of the current status of the selected Stock Count ID.
• Available - This appears when the stock count is first created, when the stock count has been previously
saved without being started, or when a started stock count has been cancelled. A Stock Count ID with a
status of Available can be deleted and line items can be added or removed from its scrolling area. The
status changes from Available to Started when you click the Start Count button on the Stock Count
Schedule window.
• Started - This appears when you click the Start Count button and there are no exceptions to the stock
count. A Stock Count ID with a status of Started cannot be deleted and line items cannot be added or

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removed from its scrolling area. The status changes from Started to Available when you click the Cancel
Count button.
• Entered - This appears when entering count quantities on the Stock Count Entry window for a started stock
Count. A Stock Count ID with the status of Entered cannot be deleted. Items cannot be removed or added.
The status changes from Entered to Available when you click the Process button and the Reuse Stock
Count check box is selected for this Stock Count ID. The status changes from Entered to Started if you
choose the Clear Count on the Stock Count Entry window.
• Default Site ID. The Default Site ID field is not a required field but can be used to speed up data entry
when entering items into the count individually. The site ID entered appears as the default for items. You
can change the default site ID and override the default site ID for individual line items.
• Reuse Stock Count. The Reuse Stock Count check box field allows stock count schedules to be reused
after stock count entry processing has been completed. This functionality is similar to recurring batches
available for other Microsoft Dynamics GP transaction types. If selected, the Stock Count remains and is
reset with a status of Available after the stock count has been entered and processed.
For example, when counting the same items each week, you would create a stock count listing the items to
be counted and select the Reuse Stock Count check box. If you add inventory items to Microsoft Dynamics
GP, you also need to add them to your existing stock counts.
If this check box is cleared the Stock Count ID is deleted from the Stock Count Schedule window when you
process the stock count on the Stock Count Entry window. History of the count is stored. To count these
same items again you must create a new Stock Count ID.
• Last Used Date. The Last Used Date field displays the User Date on which you processed the stock count
on the Stock Count Entry window. This field displays 0/0/00 if it has never been processed.
• Sorting Options. The following is a list of sorting options available to organize a stock count schedule:
• Site ID (Default)
• Item Number
• Description
• Next Stock Count Date
• Entering Individual Items on a Stock Count. The scroll area of the Stock Count Schedule window can be
used to enter specific items to include within a given stock count.
Enter or select the item, either Sales Inventory or Discontinued, to include in this stock count. The
Description field is completed automatically.
• Item Details. The Site ID field defaults if it has a value and if the site has been assigned to the selected
item. Accept the default or select a different Site ID.
The same item can be entered as a separate line for each site it is assigned to. When both the Item
Number and Site ID fields have been entered, the U of M, Next Count, Count Time, Last Count, Next Count
and Overdue fields default into the line item.
After entering the Item Number and the Site ID, the base U of M for the item defaults. You cannot override
the completed base U of M for the line items.
The Next Count field defaults to the computed next count date for this item/site. The Count Time field
defaults to the next count time for this item/site and the Last Count field defaults to the last actual count for
this item/site. If this item/site combination has never had a stock count processed, the Last Count defaults
to 00/00/00.
All these default from the site information stored on the Item Quantities Stock Count window.

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If using multiple bins, you may enter or select a bin to add to the stock count. The Overdue check box is
selected if the item/site's Next Stock Count Date is earlier than the user date. The check box is cleared if
the item/site's Next Stock Count Date is 0/0/00 (blank) or greater than or equal today.
If your Stock Count ID includes multiple items, it may be easier to use the Mass Add feature on the Stock
Count Schedule window. With this feature you can include a range of items based on different criteria. For
example, you can include items due for stock count on any given day.
• Mass Adding Items. If your Stock Count ID includes multiple items, it may be easier to use the Mass Add
feature on the Stock Count Schedule window. This feature allows you to include a range of items based on
different criteria. For example, you can include items due for stock count on any given day.
• Select the Stock Count Range restriction, enter the corresponding range using the From and To fields, and
click the Insert button to add the restriction to the restriction box. The available Stock Count Range
restrictions are:
• Site ID
• ABC Code
• Item Class
• Item Number
• Generic Description
• Description
• Item Type
• Next Stock Count Date
To remove a restriction, click the option in the restriction box and click the Remove button. Click the
Remove All button to remove all restrictions from the list.
Click the Add button to add all items that meet the restriction criteria inserted in the restriction box. The
added items are shown in the Stock Count Schedule scrolling area.
• Start Stock Count. After entering all of the items to count in the Stock Count Schedule window, click the
Start Count button.
By starting the count you:

• Create a snapshot of the on-hand (posted) quantities for each item/site, including lot and serial numbered
items, in the stock count at that moment in time.
• Change the Stock Count Status to Started.
• Set the Stock Count Start Date and Time to the user date and system time.
• Correcting Stock Exceptions. Once the Start Count button has been clicked, the Stock Count Exception
report is automatically generated, listing any item/site combinations that are on another Stock Count that
has a status of Started or Entered. If no exceptions exist, the Start Count begins.
Stock count exceptions must be corrected prior to printing stock count forms and stock count entry. To
correct stock count exceptions, you must either remove the item/site causing the exception from this Stock
Count ID, or complete the other stock entry which started with this item/site combination.
• Stock Count Lists/Forms. The Stock Count List is a list of all items on a stock count. The report can be
printed for any Stock Count ID, regardless of the status.
Stock Count Forms can be used to record the actual physical count for a Stock Count ID. Stock Count
Forms can be generated at the time of starting a count or at any other time for Stock Count IDs that have

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been started. After clicking the Start Count button and after printing the exception report, the Stock Count
Print Options window displays.
• You can print or reprint the Stock Count Forms at a later time by selecting Print from the File menu, or
clicking the Printer icon in the upper right corner of the Stock Count Schedule window.
• When printing the Stock Count Forms you may sort by Site ID/Bin/Item Number or Item Number/Site
ID/Bin. You also can select to generate a Page break between items, Print On hand quantities and Print
item lot or serial numbers.
NOTE:
• If you enter an item that has the item type of kit, service, miscellaneous or flat fee, a message displays
alerting you that these item types cannot be included in the stock count.
• An error message shows if you add an Item Number/Site ID combination that already exists on this stock
count schedule.
• If the same item/site combination exists on more than one stock count schedule, only one schedule can be
started. You see a message to that effect on the Stock Count Exception List.
• You can delete line items from the Stock Count Schedule if the stock count status is Available. You receive
an error message if the stock count status is Started or Entered.
• The Mass Add button is only active for Stock Count IDs with the status of Available.
• You cannot perform a Start Count if any of the following processes are running when you click the Start
Count Button: Reconcile Quantities, Change Valuation, Change Decimal Places, or Year End Close. An
error message is displayed.
3.7 Stock Count Entry

TRANSACTIONS >> INVENTORY >> STOCK COUNT ENTRY
NAVIGATION PANE >> INVENTORY >> TRANSACTIONS >> STOCK COUNT ENTRY
• The Stock Count Entry window is used to view items selected for stock count and to enter physical stock
count results.
After entering the physical count results you can perform a recount or process the results. When you enter
count results that differ from what is on hand in the stock count snap shot, the variance is automatically
calculated. By processing the final stock count, Microsoft Dynamics GP generates inventory variance
transactions to update the on-hand quantities and general ledger inventory accounts. If you have assigned
cycle count frequencies to the items, each item is automatically scheduled for its next count, based on the
assigned item cycle frequency.
• Stock Count Entry Window. The Stock Count Entry window is used to create transactions that record a
variance due to current inventory quantities and actual physical count discrepancies.
This window displays the snapshot taken when you started the count on the Stock Count Schedule
window. You cannot add or delete a row from its scrolling area. To add or remove items from the stock
count, you must clear the count in the stock count entry window and then cancel the count in the stock
count schedule window.
Against this snapshot you can enter the actual counted quantities for the items. Transactions are created
for the differences (variance) between the snapshot quantity on hand.

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44) Stock Count Entry Window.
• Stock Count ID. To record the quantities for the items counted, open the Stock Count Entry window and
select the Stock Count ID to update. Only Stock Count IDs with a status of Started or Entered are available
in the Stock Count ID lookup window.
When you select the Stock Count ID, the Item Number, U of M, Description, Site ID, Bin, Captured Qty, On-
Hand Qty and Allocated Qty, line item information defaults into the window and cannot be altered.
• Sorting Options. Select the order the Item/Sites to Sort By in the scroll area of this window. You can sort
by Site ID/Bin/Item Number, Item Number/Site ID/Bin or Description.
• Document Date. The Document Date is used as the posting date for updating the Inventory module. This
field is read-only until quantities are entered. It defaults to the user date, but can be overridden.
Click the Document Date Expansion box to open the Stock Count Date Entry window. This window is
available whether the Stock Count ID status is Started or Entered. The Stock Count Date Entry window
displays the dates associated with the stock count.
• Posting Date and Start Count Date. The Posting Date is the date the variance transactions post to the
general ledger if the Posting Setup window is set to Post to General Ledger. This date resets when the
Document Date field is changed.
The Default Count Date and Default Count Time fields default into the line items when you select the line
item Verified check box. This feature allows you to enter the date and time the count actually took place for
the entire document, therefore reducing the time it takes to enter this information on each line.
The Count Start Date and the Count Start Time fields default to the date and time the Start Count button
was clicked and processed on the Stock Count Schedule window.
• Autopost Stock Variance. Select the Autopost Stock Count Variance check box for the variances to post
to inventory when you click the Process button on the Stock Count Entry window. If this option is cleared,

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an Inventory Transaction Entry batch is created when you click the Process button on the Stock Count
Entry window. You then must post the Inventory Transaction Entry batch to update inventory.
This Autopost Stock Count Variance check box is read-only until quantities are entered on the stock count.
• Reusing Stock Counts. When the Reuse Stock Count check box is selected, the Stock Count ID remains
after the count is entered and processed. If this is cleared, the Stock Count ID is deleted when you process
the count.
When selecting the Stock Count ID, the Item Number, U of M, Description, Site ID, Bin, Captured Qty, On-
Hand Qty and Allocated Qty, line item information defaults into the window and cannot be altered.
• Counted Quantity. Enter the actual counted quantity for each item in this field. Negative count amounts
cannot be entered.
• To enter the count quantity using a U of M other than the base U of M, click the Counted Qty expansion
button. All valid units of measure for the selected item/site are visible in the U of M using the Lookup icon
next to the U of M field.
• Select the U of M and enter the Counted Qty in that U of M. The Ext Counted Qty is computed
automatically to reflect the quantity in the base U of M.
• Variance Quantity. The Variance Qty field reflects the difference between the counted quantity and
captured quantity. When you process the count, the inventory on hand quantity is adjusted by this quantity.
The system calculates the variance but the Variance Qty can be overridden. For example, you override the
variance quantity if you know that inventory transactions were posted between when the count was started
and when the items were actually counted.
The Variance Qty is calculated using the following formula unless the Counted Qty is less than the
Captured Qty:
Counted Quantity - Captured Quantity
Example: If the Counted Qty is less than the Captured Qty and there are quantities available, the variance
cannot be greater than the available quantity.
For example: (Counted Qty of 15 - Captured Qty of 25) = -10. If the Available Qty were 8, the system would
calculate the Variance Qty of -8 since the variance was greater than the Available Qty. If the Counted Qty
is less than the Captured Qty and the available quantity is equal to or less than zero, the variance quantity
is set to zero.
• Verifying Quantity Values. The Verified check box defaults as selected when you change the counted
quantity. If it is selected, the system assumes the values in the Counted Qty and Variance Qty fields are
correct. If the Counted Qty is zero this must be selected manually.
• Count Date and Count Time. These fields reflect the date and time your items were actually counted. The
date and time default when the Counted Qty field is entered or when you select the Verified check box if
the Counted Qty is zero. The values for the fields default from the Default Count Date and Default Count
Time fields on the Stock Count Date Entry window unless the fields are blank; then it defaults to the user
date and system time.
• The date and time in the Count Date are used to update the Last Stock Count Date on the Item Quantity
record when the Process button is clicked on the Stock Entry window.
• Site and Bin Quantities. The Site ID field displays the recorded site location when the count was started.
The Bin field displays the recorded bin location when the count was started. These fields cannot be
changed.
The Captured Qty field displays the Qty on hand for the item/site when the count was started. The On-hand
Qty field displays the current on-hand quantity for the item/site. The Allocated Qty field displays the current
allocated quantity for the item/site.

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These quantities are displayed in the base unit of measure and cannot be changed.
Serial Numbers. Click the Serial/Lot button to open either the Stock Count Serial Number Entry or the
Stock Count Lot Number Entry window to record the specific serial numbers or lot numbers you counted.
This window opens automatically when you move off a line item that requires serial or lot numbers.
The Stock Count Serial Number Entry window displays the serial numbers that existed for this item/site
when the stock count started. Use this window to record the serial numbers of the items counted on the
Stock Count Entry window.
The Item Number, Description, Site ID, U of M, Captured, On Hand and Allocated fields default into the
Stock Count Serial Number Entry window and cannot be changed.
45) Stock Count Serial Number Entry.
When recording the serial numbers for counted items you can select a specific serial number that was
captured at the start of the count or enter a new serial number that was not present when the count was
started. When recording serial numbers on the Stock Count Serial Number Entry window:
If the serial number existed at this site when the count was started, locate the serial number in the scrolling
area and change the Count Status field to Counted. This increments the Serial Counted field by one and
the Variance Qty is set to zero.
If the serial number did not exist at this site when the count was started and does not exist in the work file,
enter a new serial number. The new serial number sets the Count Status field to Counted; increment the
Serial Counted field by one and the set Variance Qty field to one. The serial number is added to the Serial
Master file when the Process the Stock Count on the Stock Count Entry window.

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This check box is selected if the specific serial number existed in inventory when the stock count was
started on the Stock Count Schedule window.
Select this check box if the specific serial number currently exists as On-hand in inventory.
The Allocated field is selected if the specific serial number has been currently allocated. A serial number
has been allocated if:
• it exists on an unposted transfer or decrease transaction in Inventory Control
• it exists on an invoice entered in Invoicing
• it exists on an allocated sales document entered in Sales Order Processing
• it is a component in Bill of Materials
The Count Status field defaults to Not Set when the Stock Count Serial Number Entry window opens. A
change to this field resets the Serial Numbers Counted field.
If the serial number was located during the stock count, select Counted. The variance quantity is set to
zero. If the serial number was not located during the stock count, select Not Found. The variance quantity
is set to -1.
This Variance Qty field is calculated based on whether the specific serial number Count Status was
Counted or Not Found. It can be overridden with a 1, 0 or -1.
This Serial Numbers Counted field displays the total number of serial numbers with a Count Status of
Counted. It is updated when the Status field in the scrolling window is changed.
The Item Counted Qty field displays the counted quantity from the Stock Count Entry window for this item.
The Serial Number Variance field displays the total variance for all serial numbers. It is updated whenever
the variance quantity field in the scrolling window is changed.
The Item Variance field displays the variance quantity from the Stock Count Entry window for this item.
If the Item Variance and the Serial Number Variance fields do not match when exiting the Stock Count
Serial Number Entry window, you receive a warning and are given options on how to proceed:
• Select Cancel to return to the Stock Count Serial Number Entry window.
• Select Continue to close the Stock Count Serial Number Entry window without changing the
current settings. The Item Number field displays a serial number symbol for a tracked item showing
the Item
• Variance Qty is not equal to the Serial Number Variance. Select Override to adjust the Counted
Qty on the Stock Count Entry window to agree with the Serial Numbers Counted field, which
adjusts the Item Variance field to zero.
• Lot Numbers. The Stock Count Lot Number Entry window displays the lot numbers that existed for this
item/site when the stock count was started. This window can be used to record the lot numbers of the items
counted on the Stock Count Entry window.
The Item Number, Description, Site ID, Base U of M, Captured, On-hand and Allocated fields default into
the Stock Count Lot Number Entry window and cannot be changed.

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46) Stock Count Lot Number Entry Window.
When recording the lot numbers for counted items you can select a specific lot number that was captured at the
start on the count or enter a new lot number that was not present when the count was started.
When recording lot numbers on the Stock Count Serial Number Entry window:
If the lot number existed at this site when the count was started, locate the lot numbers in the scroll area and
enter the Counted quantity. The Verified check box is selected by default. This increments the Lot Number
Counted Qty field by one.
If the lot number did not exist at this site when the count was started, enter the lot number and quantity
counted. Select the Verified check box which increments the Lot Number Counted Qty field.
The Captured quantity displays the specific lot numbers that existed in inventory when the stock count was
started on the Stock Count Schedule window. This field is zero if the lot was added to inventory after the stock
count was started.
The On Hand quantity displays the quantity of the lot number that is still on hand.
The Allocated field is selected if the lot number is currently allocated. A lot number has been allocated if:
• it exists on an unposted transfer or decrease transaction in Inventory Control
• it exists on an invoice entered in Invoicing
• it exists on an allocated sales document entered in Sales Order Processing
• it is a component in Bill of Materials

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The Counted quantity defaults from the Counted Qty field on the Stock Count Entry window. You can edit this
field. If a lot number was not counted during the stock count leave this field blank. This field functions the same
as on the Stock Entry window.
The Variance quantity defaults from the Variance Qty field on the Stock Count Entry window. You can edit this
field. This field functions the same as on the Stock Entry window.
The Verified quantity defaults from the Verified field on the Stock Count Entry window. You can edit this field.
This field functions the same as on the Stock Entry window.
The Lot Number Counted Qty field displays the total number of items entered in the Counted field. This field is
updated when the Counted field in the scrolling window changes.
The Item Counted Qty field displays the counted quantity from the Stock Count Entry window for this item.
The Item Variance field displays the total variance for all lot numbers. It is updated whenever the Variance
quantity field in the scrolling window is changed.
The Item Variance field displays the variance quantity from the Stock Count Entry window for this item.
If the Item Variance and the Lot Number Variance fields do not match when exiting the Stock Count Lot
Number Entry window, you receive a warning and are given options on how to proceed:
• Select Cancel to return to the Stock Count Lot Number Entry window.
• Select Continue to close the Stock Count Lot Number Entry window without changing the current
settings. The Item Number field displays a serial number symbol for lot numbers of tracked items
showing the Item Variance Qty is not equal to the Lot Number Variance.
• Select Override to adjust the Counted Qty on the Stock Count Entry window to agree with the Lot
Numbers Counted field, which adjusts the Item Variance field to zero.
• Assign Posting Accounts. Click the Distribution button to enter posting accounts for the variance
transaction. This window functions in the same manner as described in the Adjustment and Variance
Transaction Entry section of this manual and uses the default accounts set up for variance transactions.
• Unposted Item Transactions. Click the Unposted Trx button to view unposted inventory transactions for
the item/site. This window has drill back functionality to the window where the transaction has been
entered. Use this window to research allocated quantities.
• Transaction History. Click the Trx History button to view the posted inventory transactions for the
item/site. This window has zoom back functionality to the originating transaction entry window. Use this
window to research on-hand quantities.
Use the document date range to restrict which documents to view.
• Clear or Cancel Stock Count. Clear the Stock Count Entry window for a Stock Count ID if you have
made errors and want to start the count again.
In the Stock Count Entry window, click the Clear Count button to reset the Stock Count Entry window,
Stock Count Serial Number Entry, and the Stock Count Lot Number Entry Window.
Stock counts can be cancelled and done at a later time. To cancel a stock count, the Stock Count ID must
be in a Started status. If the status is Entered, first use the Clear Count button in the Stock Count Entry
window.
Next, open the Stock Count Schedule window and choose the Cancel Count button. This clears the date
and time information from the Stock Count Schedule window and the Stock Count ID is changed to
Available.
• Process Stock Count. After the entered counted quantity for all the items and all the variance quantities
are correct, you can process the stock count. Click the Process button on the Stock Count Entry window to
finalize the stock count.

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The following occurs when the Process button is clicked on the Stock Count Entry window:
• Inventory Variance transactions for the variance quantities are created.
• The stock count history records are updated.
• The stock count status is changed to Available.
• The Last Used Date is updated with the current user date if the stock count is selected for reuse.
• The Stock Count ID is deleted if the stock count is not selected for reuse.
• All captured and counted values in the Stock Count tables are cleared.
• The item/site is updated for the Last Stock Count Date and Last Stock Date Time.
• If Stock Count Interval is set for the item/site the Next Stock Count Date and Time is calculated.
• The Stock Count Exception List is generated. If exceptions exist, the stock count will not process.
If the Autopost Stock Count Variances check box is selected on the Inventory Control Setup window, these
variance transactions post to inventory. If the check box is not selected, the variance transactions are saved to
an Inventory transaction variance batch.
• Stock Count Exceptions List. The Stock Count Exception List prints when processing on the Stock
Count Entry window even if no exceptions exist. If exceptions exist, the exceptions must be corrected
before the processing of the stock count can be finalized. The Stock Entry window has two enquiry
windows, the Unposted Item Transactions and the Item Transaction Enquiry by Date. These windows help
in further researching the exceptions.
An exception message prints on the Stock Count Exception List if the following conditions exist and the
Stock Count is not processed:
• Posting Date for the stock count is within a closed or non-existent fiscal period.
• An item does not have the Verified field selected.
• The Variance Qty would cause the Quantity Available for the item to become negative and the
Allow Override check box in the Inventory Control Setup is not selected.
• The Quantity Available is negative and the Variance Qty is negative and the Allow Override check
box in the Inventory Control Setup is not selected.
• A serial tracked item has a serial number with a Count Status of Not Set.
• A serial item has a net Variance Qty for all of its serial numbers that does not match the Variance
Qty for the item.
• A serial item has a specific serial number with a negative variance and the serial number does not
exist in the Serial Master file or the specific serial number is sold.
• A serial item has a specific serial number with a positive variance and the serial number exists in
the Serial Master file or in the SOP, POP, BOM, IVC, or IV work files.
• A lot item has a lot number that is not selected as verified.
• A lot item's Variance Qty for all lot numbers is not the same as the Variance Qty for the item.
• A lot item has a specific lot number with a negative variance and the lot number does not exist in
the Lot Master file.
• A lot item has a specific lot number that has a negative variance and the Variance Qty is greater
than the Quantity Available for the lot.
• The Item Quantities master record does not exist for the item/site.

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NOTES:
• When the Stock Count is Started, the quantity on hand is captured. Transactions can still be entered and
posted for items included on a started stock count. If transactions occur for an item after the stock count
has started, the On Hand Qty field is updated.
• If the Document Date matches Posting Date on the Stock Count Date Entry window, a change made to the
Document Date field resets the Posting Date field.
• If the Counted Qty is entered using the Stock Count Unit of Measure Entry window, you receive an error
message when trying to change the Count Qty on the Stock Count Entry window. Go to the Stock Count
Unit of Measure Entry window to change the Counted Qty.
• You receive an error message if you enter a decrease variance quantity that exceeds the total quantity
available. If the Allow Variance Override in the Inventory Control Setup window is selected, you have the
option to set the variance quantity equal to the available quantity or keep the variance quantity.
• All lines must have the Verified field selected before processing the stock count.
• If the item is set to track lot/serial numbers, the Stock Count Lot/Serial Number Entry window opens when
you tab past the Verified field. This window permits you to identify the lot/ serial numbers of the counted
items.
You receive an error if you enter a serial number or lot number that:
• Already exists in the scrolling window
• Exists in inventory with a status other than on-hand
• Exists at a different site ID
• If a serial number has a status of Not Set when closing the Stock Count Serial Number Entry window, the
warning “You have not selected a counted status for all serial numbers.” Displays.
• If the Counted Qty was entered using a U of M other than the base U of M, you cannot use the override
feature.

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4) Editing and Removing Records
The Objectives are:
• Change and delete item records

• Reconcile item quantities
• Adjust Costs on an item
• Change Valuation Methods for an item
• Change Decimal Places of an item
• Add, update, copy, or remove price lists
• Remove Bins
• List the value of each of the Inventory Control Enquiry windows
• Create new Inventory reports
• Print and modify existing Inventory reports
• Understand Report Lists between Batch posting and Transaction posting
INTRODUCTION
Editing and Removing Records explains the process of editing records after they have been Saved or posted.
This includes changing master records as well as transactions. This course also addresses which records can
be deleted and/or removed from the system if the user desires
4.1 Change, Inactivate or Delete Records

CARDS >> INVENTORY >> ITEM >> DELETE BUTTON OR INACTIVATE OPTION
NAVIGATION PANE >> INVENTORY >> CARDS >> ITEM >> DELETE BUTTON OR
INACTIVATE OPTION
As your business grows and changes there may be items for which information needs to be changed,
inactivated or deleted. This lesson discusses how to change, inactivate or delete items and item sites.

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47) Inactivate, discontinue or delete an item
During the life of a business new inventory items may be added and stocking of others may be stopped. It is
possible to:
• Inactivate Items. Inventory items can be inactivated in order to prevent the sale, purchase or
processing of an item.
• Inactive items will not be visible in transaction lookup windows
• Inactivating allows you to maintain history for your inventory items while those items are not in use.
• Certain restrictions apply to inactivating, such as items on an active kit or bill of materials cannot be
inactivated.
• An inactivated item can be reactivated at any time
• Delete Items. An item record cannot be deleted if there are:
• Quantities
• Posted or unposted transactions in Inventory, Sales Order Processing, Invoicing, or Purchase
Order Processing
• Transactions in history
• If the item to delete still has quantities, the following message displays when you click the Delete
button: "You cannot delete an item with account quantities. Do you wish to mark items as discontinued
instead?"
• Discontinue Items: By selecting an item as discontinued, you can decrease its quantities.
Discontinued items (if the quantities are zero) can be removed during the year-end closing process.
• Copy Items. You may start to carry new inventory items similar to existing items. To make the process
as easy as possible, use the Copy button on the item card. After entering the new item number, click
the Copy button and select the item to copy from along with some additional attributes.
• Inactivate Item Site: If a site is no longer used, you can inactivate a site in order to prevent it from
being entered on any new transactions. However, existing transactions can be posted so that your
inventory on hand can be reduced. This will keep the site in your system until you’re ready to delete it.
You will also be able to exclude inactive sites on the Site List Report.

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• Inactivate item/Site: You also can inactivate an item-site relationship. This is useful if you no longer
stock an item at a particular site. If you inactivate the item-site relationship, no new transactions for that
item-site combination can be entered, but existing transactions can be posted. Inactivating the item-site
relationship does not affect the site ID or the item at other sites.
• Delete Item Sites. If a specific item site is no longer used, you may want to delete the site from your
records and reassign items to a different site. A site can be deleted only if there are no items assigned
to it. Enter a transfer transaction to transfer item quantities to another site. Once the quantities from the
site are transferred, delete the site for the item in the Item Quantities Maintenance window. To open
the Item Quantities Maintenance window, click the Inventory series button and click Quantities/Sites on
the Cards Area Page.
• Change Item Class Information. When changing information in a class record, you can quickly
change the information for all items assigned to the class. This is referred to as rolling down changes.
A roll down can be made when the information changed should be reflected on every item record
associated with the class. To open the Item Class window, click the Inventory series button and click
Item Class on the Setup Area Page.
48) Item Class Setup Window.

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For example, you could change the price group for a class. When rolling down your changes, the price group is
changed for all items in the class. If you do not roll down the changes, existing items are not changed. When
any new items are assigned to this class they have the new price group settings.
NOTES:
• Changes to the valuation method, decimal places, price method, and U of M schedule cannot be rolled
down to existing items in the class.
• Changes can be rolled down to three other fields if certain requirements are met:
• The item type if changing the item to Discontinued.
• The tracking option if the item has a zero quantity in stock.
• The default price level if the price level specified is already included on the item's price list.
4.2 Reconcile
MICROSOFT DYNAMICS GP >> TOOLS >> UTILITIES >> INVENTORY >> RECONCILE
NAVIGATION PANE >> INVENTORY >> UTILITIES >> RECONCILE

Use the reconciling process to reset inventory quantities for a range of item numbers so they match the
quantities posted. Reconcile quantities if inventory reports show conflicting quantities and you suspect the
quantities are not in balance. You should not have to reconcile Inventory quantities unless your data has been
damaged, or some other unusual problem has occurred.
• Process of Reconciliation. When reconciling inventory quantities, quantities are reset to match purchase
receipt and serial number or lot number quantities. Receipts are not removed during the reconcile
procedure. If serial numbers or lot numbers are needed, they are added. If you do not want to use the
added serial numbers or lot numbers, adjust them and enter the correct numbers using the Item
Transaction Entry window.
After entering a range for item numbers, click OK to reconcile inventor quantities. When reconciling inventory
quantities, the system verifies that all quantities posted in Inventory Control match. In addition to posted
transactions, the reconcile process also verifies that quantities on unposted transactions exist in these files:
• Invoicing Work
• Sales Order Processing Work
• Inventory Work
• Purchase Order Processing Work
The reconcile matches unposted transaction quantities with the quantities recorded in Inventory Control.
Quantities are adjusted if necessary.
If a discrepancy in quantities is identified during the reconcile process, the Inventory Reconcile Report prints.
This report lists the quantity adjustments made, and the item numbers affected by the adjustments. It also
contains the serial numbers and lot numbers that may have been added.

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NOTES:
• Before reconciling quantities, back up all of your company's accounting data.
• If using Purchase Order Processing, run the Reconcile Purchasing Documents utility before reconciling
inventory quantities. It is important that the purchasing documents are correct since purchasing information
may be altered and is used when the Reconcile Inventory Quantities utility is performed.
• If the reconcile procedure is in progress and you attempt to change valuation methods, change decimal
places, or post, you receive a message saying you must wait until reconciling has been completed.
4.3 Adjust Costs

MICROSOFT DYNAMICS GP >> TOOLS >> UTILITIES >> INVENTORY >> ADJUST
COSTS
NAVIGATION PANE >> INVENTORY >> UTILITIES >> ADJUST COSTS

The Inventory Adjust Costs window is used to adjust the cost of an item for an individual purchase receipt.
This procedure is useful as a method of adjusting the cost of items when:

• The shipment was received at a cost that differs from the invoice.
• The cost for an item on a posted transaction was entered incorrectly.
• You need to record other unexpected costs that were not accounted for on an item invoice
49) Inventory Adjust Costs Window.

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• Item Parameters. Enter or select the item that requires an adjustment. If you have more than one site,
enter the Site ID for the purchase receipt.
Enter the range of dates that contains the purchase receipts to adjust. After entering a range, detailed
information for all receipts within the range is displayed in the scrolling window
Enter the cost adjustments for the purchase receipts in the scrolling window. Pressing TAB moves to the
next line and your changes are saved automatically.
• Purchase Receipts Adjustment. Click Process to save the adjustments and the Purchase Receipts
Adjustment Audit List is printed automatically. This report lists the old and new costs of the receipts
adjusted, and includes the posting accounts you should adjust to reflect the adjustment in costs.
NOTES:
• Use the Hide and Show buttons to display additional information for the range of purchase receipts you
have entered. If you click the Show button, the item type, receipt number, purchase order number and
creditor ID are displayed. If using Purchase Order Processing, run the Reconcile Purchasing Documents
utility before reconciling.
• Information on the Purchase Receipts Adjustments Audit List report suggests adjustments to make to
General Ledger, but does not create them.
4.4 Change Standard Cost for periodic valuation items

MICROSOFT DYNAMICS GP >> TOOLS >> UTILITIES >> INVENTORY >> CHANGE
ITEM STANDARD COST
NAVIGATION PANE >> INVENTORY >> UTILITIES >> CHANGE ITEM STANDARD COST
Use the Change Item Standard Cost window utility to change the standard cost of an item and automatically
create an adjustment in General Ledger keeping the inventory and accounts in balance.
• If you’re using the Manufacturing module, use the windows in that module to change the standard cost.
• Only sales inventory or discontinued items using a periodic valuation method can be changed in this
window.

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4.5 Change Valuation Methods
VALUATION
NAVIGATION PANE >> INVENTORY >> UTILITIES >> CHANGE VALUATION

Inventory Control provides a method for changing valuation methods for an item or range of items.
50) Change Valuation Method Window.
• Selecting Parameters to Change. If you have evaluated your inventory valuation method and consulted
with a tax adviser, select the new valuation method from the list.
You can apply a new valuation method to one or more of the following ranges:
• items
• item descriptions
• generic descriptions
• classes
Enter or select the appropriate starting and ending range information.
Before updating item records, print the Valuation Method Change Audit Report. This report includes the
valuation method currently used and the new valuation method for all items common to the ranges entered. To
print this report, select Print from the File menu. Use this report to verify that the correct items are selected for
the new valuation method.

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• Update Item Records. Click the OK button to update the range of items entered. After changing valuation
methods, the Valuation Change Audit List prints for the item range that was updated. Only unallocated
items that have sales inventory or discontinued item types can be updated.
NOTES
• The Change Valuation Method window should be used only when initially setting up your inventory with an
incorrect valuation method. If you are using one valuation method and want to change to another, we
recommend you consult your tax adviser. Changing valuation methods carries legal restrictions in some
areas.
• If the Change Valuation Method procedure is in progress and you attempt to reconcile, change decimal
places or post, a message displays saying you must wait until the procedure has been completed.
• If you have changed to the average perpetual valuation method, the current cost for each item in the
selected range is averaged. If you are changing from the average perpetual valuation method to another
method, the current cost is updated to reflect the most recent receipt for the items.
4.6 Change Decimal Places

DECIMAL PLACES
NAVIGATION PANE >> INVENTORY >> UTILITIES >> CHANGE DECIMAL PLACES
Use the Change Decimal Places window to change the number of decimal places being used to display
quantity or currency amounts for items. Decimal places are commonly changed for items that are set up
incorrectly, or to reflect measurements that may have changed during the lifetime of an item.
51) Change Quantity ir Currency Decimals places.

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• Select New Decimal Places. Select to change the decimal places used for item quantities or currency
amounts. Then enter the number of decimal places you want to use for quantities or currencies, or for
both.
If changing from a larger to a smaller number of decimal places for quantities or currencies, all receipts are
rounded. For example, if you decrease decimal places for currencies from five to two, and the starting amount
is AUD$5.04600, the amount will be rounded to AUD$5.05. All item records, purchase receipts, quantities,
creditor information and kits are updated.
If you have selected to use additional decimal places for quantities or currencies, zeros are added to the right
of the decimal point for all amounts on purchase receipts. For example, if a receipt amount was AUD$5.03, and
the currency decimal places are increased to five, the amount changes to AUD$5.03000.
• Select a Range of Items. Enter or select the appropriate starting and ending range information. Enter
ranges of items using the following:
• item numbers
• item descriptions
• generic descriptions
• classes
When you click OK, items that are common to all the ranges entered are updated.
Before updating item records, print a report that lists the items affected by the change in decimal places. To
print this report, select Print from the File menu, or click the Printer icon. Use this report to verify that you are
changing decimal places for the correct ranges of items.
• Update Item Records. Click OK and the change in decimal places is applied to items common to the
ranges entered.
When item records are updated, the Decimal Places Change Audit List is printed. This report lists the old and
new decimal places and the amounts that posting accounts need to be adjusted due to rounding.
NOTES
• Changing the quantity decimals clears the U of M schedule, price list and purchasing options for each item
included in the range and has to be manually entered.
• Changing the currency decimals rounds the amounts in the price list for each item included in the range.
• If the Change Decimal Places procedure is in progress and you attempt to reconcile, change valuation
methods or post, a message displays saying you must wait until the procedure has been completed.
• After the Change Decimal Places procedure is complete, you should reconcile quantities. Because
quantities and amounts are rounded when changing from a larger decimal place setting to a smaller one,
there may be differences in quantities, serial numbers and lot numbers.

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4.7 Price List Utilities
MICROSOFT DYNAMICS GP >> TOOLS >> UTILITIES >> INVENTORY >> PRICE LIST
UTILITIES
NAVIGATION PANE >> INVENTORY >> UTILITIES >> PRICE LIST UTILITIES
Use the Price List Utilities wizard as a guide to complete or modify an item or price list related procedure.
• The price list wizard allows the user to perform the following:
• Add Price List - This adds new records to your price lists.
• Update Price List - This updates existing records in your price lists.
• Copy Price List - This copies existing price lists to your other items.
• Remove Price List - This removes existing records from your price lists.
• Assign Currency (only if Multicurrency is registered) - This assigns currency to your items.
• Each wizard allows you to preview the results of your settings prior to processing any changes to price lists.
4.8 Remove Bins

MICROSOFT DYNAMICS GP >> TOOLS >> UTILITIES >> INVENTORY >> REMOVE
BINS
NAVIGATION PANE >> INVENTORY >> UTILITIES >> REMOVE BINS

The Remove Bin Utility allows you to remove bin records from a site or an item/site. You can select a range of
bins, and to remove the bins from the site level and item/site level, or just from the item/site level.
52) Remove Bins Window.

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• The system removes the bin records from all sites and item/site records in the selected range. If a bin to be
removed was entered as a default bin for an item/site record, that default bin field will be cleared. The
system does not remove an item/site/bin record if there is a quantity other than zero for any quantity type,
or any pending transactions for that item/site/bin combination.
The system generates a Bin Removal Exception Report that lists any item/site/bin records that were not
removed.
4.9 Using Enquiry Windows

ENQUIRY >> INVENTORY >> <<SELECT WINDOW>>
NAVIGATION PANE >> INVENTORY >> ENQUIRY >> <<SELECT WINDOW>>
The Enquiry feature allows the user to review current or historical information about items, transactions and
receipts. Because enquiry windows provide access to information when it is posted, there is always a current
view of the status of your inventory.
There are a number of features to help you scan this information easily. Browse buttons allow you to move
through a series of records by clicking an arrow button at the bottom left part of the window. The user may view
summary or detailed information.
In addition, some windows have a zoom feature that allows you to view information entered when an item was
added, or when a transaction was posted.
For example, when viewing transaction history for an item, you can zoom on a posted document by highlighting
the desired line and clicking the appropriate underlined zoom field, to see the individual items it contains. Then
you can zoom on a single item to see the setup information for the item.
Most enquiry windows allow the user to print the information in the window by clicking the Printer icon or by
selecting File, then Print.
4.10 Inventory All in One
View all related inventory documents in the same window.
Accessible from the Item Maintenance window, many Inventory Enquiry windows, Navigation lists and even the
Home Page this window will save users time in searching for all relevant information for a sales document.
The most recent documents will default into the window and to see the next set of 5 transactions use the
navigation buttons under each column

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• Item Enquiry. Use the Item Enquiry window to view setup and current quantity information for an item.
When entering an item number, setup and current quantity information displays. Quantities display the
base unit of measure in the U of M schedule you assigned to this item. You can view information about this
item for one site, or for all sites. Click the Site button to see the information for one site, and enter or select
that Site ID. To open the Item Enquiry window, click the Inventory series button and click Item on the
Enquiry Area Page.
53) The Item Enquiry Window.

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• The Item Enquiry window is useful before placing an item order. By examining quantity information, such as
how many are on-hand, how many are allocated, how many are back ordered, and how many are
requisitioned, you can make informed decisions about the number of items to order, and when.
• Item Transaction Enquiry. Use the Item Transaction Enquiry window to view the transactions for an item
at one site, or all the transactions of one type posted for an item. You can also use the Item Transaction
Enquiry window to zoom to the window where a transaction originated. To open the Item Transaction
Enquiry window, click the Inventory series button and click Item Transaction on the Enquiry Area Page.
54) Item Transaction Enquiry Window.
• The Item Transaction Enquiry window can be used to review posted inventory transactions for specific
items. Information about the selected documents appear in the window including:
• module
• document type
• document date
• document number
• unit cost
• site
• U of M
• quantity
• extended cost
• creditor or customer ID

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• Inventory Transaction Enquiry. To open the Inventory Transaction window, click the Inventory series
button and click Transaction on the Enquiry Area Page. Use this window to review inventory transactions
for a current or previous year. Detailed information entered for the transaction appears in the scrolling
window. This information includes:
• item number
• unit of measure
• quantity
• unit cost
• item description
• site
• whether the item was transferred to another site
55) Inventory Transaction Enquiry Window.
Click the Serial/Lot button to open the Inventory Transaction Serial Enquiry or the Inventory Transaction
Lot Enquiry if the selected item is a lot-numbered or a serial-numbered item. The appropriate window
appears, and displays all the serial numbers or lot numbers for the selected item.
• Click the Distributions button to open the Inventory Transaction Distribution Enquiry window. This window
displays the posting accounts originally affected when this transaction was posted. Click the Quantity Type

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button to open the Inventory Quantity Type Enquiry window. This window displays the information entered
in the Transfer Item Type Entry window when this transaction was created, including the original quantity
type, and the quantity type it was transferred to.
• The Inventory Transaction Enquiry window is useful to verify entry of a transaction.

• Purchase Receipts Enquiry. To open the Purchase Receipts Enquiry window, click the Inventory series
button and click Transaction on the Enquiry Area Page. Use the Purchase Receipts Enquiry window to
view all purchase receipts for a selected item. These receipts include:
• adjustment and variance transactions
• transfers
• overrides
Select to view receipts by item number, site, and a range of dates.
56) Purchase Receipts Enquiry Window.
• When you enter an item, detailed quantity and receipt information for the item displays. The window also
shows the quantity type, number available, and the current and standard cost for the selected item.
• The Purchase Receipts Enquiry window is useful to view all the receipts for an item, or want to know the
actual costs and quantities on a specific receipt. If an item cost may have been entered incorrectly, use the
Purchase Receipts Enquiry window to check it. If the item cost was incorrect, use the Adjust Costs window
to correct the error.

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• Before updating item records, print a report that lists the items affected by the change in decimal places. To
print this report, select Print from the File menu, or click the Printer icon. Use this report to verify that you
are changing decimal places for the correct ranges of items.
• Serial/Lot Trace Enquiry. To open the Serial/Lot Trace window, click the Inventory series button and
click Serial/Lot Trace on the Enquiry Area Page.
Use the Serial/Lot Trace Enquiry window to track the life cycle of serial or lot numbers. A life cycle trace
allows you to view all the transactions that include serial or lot numbers by their document date, how the
item was used from the day it was received to the day it left your business.
57) Serial/Lot Trace Enquiry Window.
Use a life cycle trace to find the following information:

• a specific serial or lot number
• find items with serial or lot numbers received from a specific creditor
• find items that use serial or lot numbers shipped to a specific customer
You can also use the Serial/Lot Trace window to trace the recall of serial or lot numbered items. A recall trace
can show which customers purchased an item with a specific serial or lot number.
Serial Number Enquiry. To open the Serial Number Enquiry window, click the Inventory series button and
click Serial Number Enquiry on the Enquiry Area Page.

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• The Serial Number Enquiry window can be used to view information about serial numbered items. You may
limit information displayed by:
• site
• availability for allocation
• entering a range of dates
58) Serial Number Enquiry Window.
When entering a serial-numbered item, the following information displays:

• serial number
• site
• date
• cost
• whether it has been allocated
• creditor ID
• quantity information

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All serial numbers displayed are either allocated or available. The Serial Number Enquiry window is useful to
view all current stock and the serial numbers available.
You can use the information in the Serial Number Enquiry window when considering discontinuing an item and
need to know whether all the serial numbers have been allocated.
• Lot Number Enquiry. To open the Lot Number Enquiry window, click the Inventory series button and
click Lot Number Enquiry on the Enquiry Area Page.
Use the Lot Number Enquiry window to view information about lot-numbered items. Information may be
displayed by lot number or date received. You can restrict information displayed by site, availability for
allocation, and a range of dates. The items can be displayed by lot number or date received.
59) Lot Number Enquiry Window.
The information in this window includes:

• lot number
• date received
• cost
• creditor ID
• site
• quantity information
You also can view lot attributes by clicking the Lot Number expansion button if a lot number is assigned to a
lot category.

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The Lot Number Enquiry window is useful to view the quantity available in a lot.
Bin Quantity Enquiry. To open the Bin Quantity Enquiry window, click the Inventory series button and click
Bin Quantity Enquiry on the Enquiry Area Page. This window is only available if you have Multiple Bins
enabled (Inventory Control Setup window).
Item quantities within bins can have the same quantity types available at the site level. A bin enquiry window
allows the user to view bin quantities for each of the quantity types.
60) Bin Quantities Enquiry Window.
The Item Quantity Enquiry window is useful to view quantities available at specific site/bin combinations.
• Item Allocation Enquiry. To open the Item Allocation Enquiry window, click the Inventory series button
and click Item Allocation on the Enquiry Area Page.
The item allocation window shows where an item was allocated, the module, the document number and the
customer the item was allocated to. You can restrict your view by item number, date, site ID, module, and
select a sorting option to view your choices in the scrolling window.

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61) Item Allocation Enquiry Window.
• Available to Promise. To open the Available to Promise Enquiry window, click the Inventory series
button and click Available to Promise on the Enquiry Area Page.
Available to promise means an item is in stock and can be promised to a customer. Available to promise
information shows how much inventory or projected inventory is not committed to customer orders. Available to
promise is calculated for an item from the latest document date to the earliest document date for all supply
orders, including:
• sales orders
• sales fulfilment orders/invoices
• purchase orders
• inventory transactions
• inventory adjustments
• inventory transfers
• manufacturing orders
Open the Available to Promise window and view the information by drilling down on the quantity available field
from the Sales Transaction Entry window, Sales Item Detail Entry window, and Inventory Transaction Entry
window.

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• Item Stock. To open the Item Stock Enquiry window, click the Inventory series button and click Item
Stock on the Enquiry Area Page.
Use the Item Stock Enquiry window to view a current balance of the total stock quantity for an inventoried item
and the transactions that affected the stock quantity of that item. You also can view the current balance of each
quantity type for the item, such as the quantity on hand and quantity allocated. Stock information can be
displayed for all the sites that the item is assigned to or for a specific site. You also can select the unit of
measure to display the stock information in.
62) Item Stock Enquiry Window.
After entering an item, the most recent transactions that affected the stock quantity of the item are listed in the
scrolling window. To view earlier transactions entered for the item, scroll up the list.
• In-Transit Transfer History. To open the In-Transit Transfer History Enquiry window, click the Inventory
series button and click In-Transit Transfer History on the Enquiry Area Page.

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63) In-Transit Transfer History Enquiry Window.
Use this window to view:

• In-Transit history records
• serial number transfer history records
• lot number transfer history records
• transfer distribution records
• Price List Enquiry. To open the Price List Item Enquiry window, click the Inventory series button and
click Price List on the Enquiry Area Page.
The Price List Enquiry window can be used to view information about the price list for items by item. When
entering or changing a price list for an item, Price Method, Price Group, Price Level, U of M, Percent or
Price, Start Quantity, and End Quantity display. To open the Price List Item Enquiry window, click the
Inventory series button and click Price List on the Enquiry Area Page.

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64) Item Price List Enquiry Window.
The Price List Enquiry window is useful to view pricing related to a specific item.
4.11 Reports
REPORTS >> INVENTORY >> <<SELECT REPORT>>
NAVIGATION PANE >> INVENTORY >> REPORTS >> INVENTORY >> <<SELECT
REPORT>>
Use reports to analyse transaction activity and pinpoint errors in transaction entry. Inventory Control reports
provide excellent tools for tracking transactions and simplifying audits.
To open specific Inventory Control reports, click the Inventory series button and click on a specific report title
on the Reports Area Page.
• Creating Report Options. Microsoft Dynamics GP allows you to create a report option once and print it
again at any time without having to redefine the option. As a result, the reports you print are always up-to-

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date and can be printed quickly and easily. At least one report option must be created for each report you
want to print.
• Select a Report. Select a report type from the Reports list. For example, if you selected Analysis, you can
select different Inventory analysis report types.
• Create or Modify Report Options. You can create a new report option or modify an existing report option.
At least one report option must be defined.
To create a new option for the selected report type, click New to display the report options window. Then
enter a name and use the following steps to define the option. The selections available for defining report
options vary depending on the report type selected. Select a sorting method and select to print ranges of
selected items, such as series or User IDs.
If you previously created a report option and want to change it, highlight the option name in the Options
window and click Modify. Then make the appropriate changes and save the option.
• Select a Report Destination. To select printing destinations, click Destination. Reports can be printed to
the screen, to the printer or to an export file, or to any combination of these options. Microsoft Dynamics
GP allows you to set the report destinations to default to either the screen or the printer each time the
Report Destinations window is used.
• If Ask Each Time is selected, printing options can be selected each time you print using this report option.
If you do not want to select printing destinations each time, leave Ask Each Time clear and the report is
automatically printed to the destination previously selected.
Microsoft Dynamics GP allows you to export a report - to save it as a file - to be printed or inserted into
another application, such as a spreadsheet.
Reports can be saved in four different file formats. Each of the file formats allow the report to be read by
other applications, such as spreadsheets, where it can be further modified.
Microsoft Dynamics GP reports can be saved in the following file formats.
Tab - Tab-delimited Fields - This is the tab-separated ASCII character format used by many software
applications.
Comma - Comma-delimited Fields - This is the standard comma-separated ASCII character format used
by database programs, such as dBASE and 4th Dimension.
Text - Text File - In this format, reports are saved as text without the formatting. This option should be
used when the application to which you are converting the document is unable to read any of the other file
formats.
HTML file - This file format allows you to put information onto a web page and access it from the Internet or
from your company's Intranet.
To export a Microsoft Dynamics GP report:

1. Select File in the Destination column.
2. Click the File button to open the Export File window that allows you to name the file or accept the
Microsoft Dynamics GP default name.

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3. Unless you change the pathname, the file is saved in the Microsoft Dynamics GP folder on your
local drive.
4. Select a file format and click Save to return to the Report Destination window.
5. If you have entered an existing file name, select whether to append (add the new report to the
bottom of the existing file) or replace the information in the existing file.
6. Click OK and the Report Options window becomes active.
7. Save the report option.
• Creating and Printing Report Groups. A procedure may require you to print several different reports in
a single step. All Microsoft Dynamics GP report options created within a series can be saved in groups and
printed together from the Groups window for that series. For example, you can create a report group to
print all the Inventory analysis reports.
To open Inventory Groups reports, click the Inventory series button and click Group on the Reports Area
Page.
From the Groups Window you can:

• Print a report group
• Modify an existing group
• Create a new reports group
To print a group that has already been created, select the group name from the Groups list and click Print.
To add a report to an existing group, select the group name from the Groups list and complete the following
steps for adding a report. Complete the steps listed below to create a new report group.
1. Select a Report Type.
2. Select the Report.
3. Select the Report Option.
4. Click the Insert button to add it to the group.
5. Click the Save button to save entries. Enter a Group name if adding a new group.
To remove a report from an existing group, select the report name in the Group Members scrolling window and
click Remove.
Enter Range Restrictions. Use the Ranges list to display items for which ranges can be set. Limit the amount
of information that appears on reports by specifying ranges of items included on the report. The items included
in the list vary depending upon the type of report you are printing.

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For example, if you are printing an Inventory Analysis Report, you can restrict the range of information printed
by:
• Item number
• Description
• Generic description
• Manufacturer
• Style
• Feature
When finished entering a range, click Insert and the range appears in the Restrictions list box. If you want to
add another range to the report, add it below the first. To remove an existing range from the list, highlight the
range and click Remove.
• Print the Report. You can print the report option from the Report Options window before saving it. If you
do not want to print the option now, click Save and close the window. The
Reports window becomes active.
Select the report options to print and click Insert to insert them into the Print List. You can print one or
more report options from this window by inserting them in the Print list and clicking Print.
A procedure may require that you print several different reports in a single step. All Microsoft Dynamics GP
report options created within a series can be saved in groups and printed together from the Groups window
for that series. For example, you can create a report group to print all the Inventory Analysis reports.
• Reports Scheduler. The Reports Scheduler is a no-cost module installed automatically with Microsoft
Dynamics GP. It allows you to publish any report option or report you create with Report Writer on a
recurring basis. Report Writer reports can be published for any product you have installed. Published
reports can be accessed by the Business Portal or other Web-based applications.
• You can publish reports in any format supported by Report Writer, including HTML and PDF.
• You can schedule reports to print on a recurring basis. Several scheduling options are available so you can
define intervals.
• When a user logs into Microsoft Dynamics GP, Report Scheduler automatically checks to see if that user
has any reports to publish that are overdue.
• Publishing can be scheduled, or performed on demand.
• Publishing happens in the background so you can continue to use Microsoft Dynamics GP without waiting
for processing to be completed.
• Report Scheduler is secure. You define who publishes a report, so sensitive information is only seen by the
appropriate people.
• Existing report options remain unchanged so you can use existing report options and still publish them.
• You can override the schedule. You can print all the reports that are due, or select just the ones you want
to print. Alternatively, you can have Reports Scheduler publish without issuing a reminder.
• Publish reports to the Business Portal and enable decision makers throughout the organization to view
reports via a Web browser.
For detailed information regarding Reports Scheduler, refer to the System Manager or Report Writer Microsoft
Dynamics GP Training Courseware.

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NOTES:
• The same option cannot be used by multiple reports. If you want identical options for two or more reports,
you must create separate options for each report.
• Report Options must be set before adding an individual report to a Report Group.
• If you selected the Ask Each Time printing option when creating any of the individual report options
included in a group, you will be prompted for printing instructions before any of the reports are printed.
• A group may contain any combination of report categories and report types. Up to 32 reports can be
included in a single group.
• On some reports you can leave either the To or From field blank;
• Microsoft Dynamics GP assumes that the blank field indicates the beginning or the ending of the range,
respectively.
• After clicking the Print button, the report immediately begins processing in the background. You may not
realize that the report has begun processing. To check which transactions are processing in the
background, select Process Monitor from the File menu.
• Report Options must be set before adding an individual report to a Report Group.
4.12 Historical Received not Invoice Report
Use SQL Reporting Services to print a Historical Received Not Invoiced Report.
This report will allow users to see what was received into inventory but not invoiced yet as of a specific
date.

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This report will look at each document and its date ( either Transaction ( Receipt/Invoiced ) Date or GL
Posting Date ) to determine if the transaction should print on the report.
If the date falls within the cutoff date the user has entered, the transaction will print on the report.
4.13 Report Lists

NAVIGATION PANE >> INVENTORY >> REPORT LIST
• The Report List window can be used to view all application reports or reports in a particular series such as
the Inventory series.
65) Report List Window.
Reports appear in the list. Add reports to the My Reports area of your home page using the action pane option
for quick easy access to the reports that are used frequently. When reports are selected, certain options on the
Action Pane light up, and become available.
• Filters. Filters can be used to restrict what appears in a list window. Click Add Filter to add a filter to be
used with the list. Multiple filters can be used on the same list view, using additional filter options such as
And or Or. To delete a filter, click on the Delete icon, which looks like the letter X. Click Hide Options to
remove the view of the filter information from the Report List page.
• Action Pane. The Action Pane is divided into groups and each group contains action buttons. Each action
button can perform an action against records, in this case reports that have been selected, or can open a
window that may contain information from a selected record.
An overflow menu may appear to the right of a group which contains the action buttons that are not displayed,
due to space restrictions. If you shorten an action pane, action buttons will move into the overflow menu. List
views can be customized. Consult the Foundation training for additional information on this topic.

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5) Period-End Procedures
The Objectives are:
• Complete period-end processing for the Inventory Control module

• Complete year-end processing for the Inventory Control module
INTRODUCTION
This course explains how the Inventory Control module processes period-end tasks. The tasks listed contain
both mandatory and optional tasks. Each user determines which tasks are mandatory for their business needs.
5.1 Period-End Procedures

The following is a list of the period-end procedures for the Inventory Control module. They are listed in a
recommended procedural order.
1. Post all transactions for the month.

2. Reconcile Inventory quantities using the Reconcile Inventory Quantities window.
3. OPTIONAL: Complete a physical inventory stock count. Enter and post any variances through the
4. OPTIONAL: Complete the ABC Analysis on the inventory items.
5. Print month-end reports such as the Stock Status, Purchase Receipts, Turnover, Transaction
History, and Serial Number Aging.
6. OPTIONAL: Close all fiscal periods for the Inventory series using the Fiscal Periods Setup window.
Use reports to analyse transaction activity and pinpoint errors in transaction entry. Inventory
Control reports provide excellent tools for tracking transactions and simplifying audits.
To open specific Inventory Control reports, click the Inventory series button and click on a specific report title
on the Reports Area Page.
• Reconciling Inventory. To reconcile your inventory, make sure all Inventory batches are posted and use
the Reconcile Inventory Quantities window to verify item quantities. To open the Reconcile window, click
the Inventory series button and click Reconcile on the Utilities Area Page. Refer to the Editing and
Retrieving Records course for more information about the reconciliation process.
• ABC Analysis. The Item ABC Analysis wizard is used to assign a new ABC code to inventory items. The
analysis can be performed on the following:
• Usage value
• Usage quantity
• On hand inventory value
• Unit cost
Depending upon which method you choose, there are different options to select while running the wizard. To
open the ABC Analysis wizard, click the Inventory series button and click Item ABC Analysis on the Routines
Area Page.

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After selecting the analysis option, the System Options window opens. In the window, select Set the ABC to
None for those items that have zero quantity on hand or zero usage quantity. You can also choose to treat
negative quantities as zero for the analysis.
If you chose Usage Value or Usage Quantity as your analysis method, decide whether to use Historical Annual
Usage, Projected Annual Usage, or a Weighted Average when performing the analysis.
In the Breakpoints window, define a percentage or dollar amount breakpoint for the analysis. The breakpoint is
the boundary used to determine whether the code should be A, B, or C.
If you select percentage, enter the percentage of the total inventory value that should be assigned A, B, or C.
For example, the analysis is being based on the on-hand inventory value. If you enter 80%, 15% and 5%, the
items with the highest on-hand value, up to 80% of the total, will be assigned a code of A. The next 15% will be
assigned a code of B, and the remaining items a code of C.
If you select amount, enter the dollar amount that each item must have on hand to be assigned A, B, or C. For
example, if you enter US$20,000 as the A breakpoint, all items with an on-hand value of US$20,000 or higher
are assigned a code of A.
Before continuing with the analysis, view the codes assigned to each item using the characteristics entered up
to this point. To see this information, click the Preview button.
After the preview, continue to the Print Options window. Select the order you want to view the items when they
print on the final report.
After selecting the print option, the analysis summary window appears. Verify the information on the window
and if everything is correct, click Finish. The new ABC code is automatically assigned to the inventory items
based on the analysis. The Item ABC Analysis Results report prints after completing the wizard.
• Period-End Reports. Many businesses have certain reports they print at the end of each month. Reports
you may want to include as part of your period-end procedures are:
• Historical Stock Status
• Purchase Receipts
• Turnover
• Transaction History
• Serial Number Aging
Refer to the online Sample Reports located on the Help menu for other reports to include as part of your
Period-end procedures.

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NOTES:
• You could complete the Inventory Checklist (Routines > Inventory >Checklist) for either Month-End or
Period-End by adding the above steps to the checklist. Then use the checklist to perform your
month/period-end procedures. Refer to the Foundation manual for more information about modifying
checklists.
• The Stock Status and Purchase receipts reports can only be printed for current information. Therefore, if
you do not print these reports at month-end you will not be able to go back and print them for that period-
end at a later date. However, you may use the Historical Stock Status to print records for a previous date
and time.
5.2 Year-End Closing Procedures

MICROSOFT DYNAMICS GP >> TOOLS >> ROUTINES >> INVENTORY >> YEAR-END
CLOSE
NAVIGATION PANE >> INVENTORY >> ROUTINES >> YEAR-END CLOSE

The following are effects of closing a year in Inventory Control:
• Transfers all summarized current-year quantity, cost and sales amounts to history for the items for
which you have been keeping summarized sales history
• Updates the item's beginning quantity to the quantity on hand at each site
To open specific Inventory Control reports, click the Inventory series button and click on a specific report title on
the Reports Area Page.
• In addition to transferring current-year quantities to history, the year-end closing process allows you to:
• Remove purchase receipts for items that have been completely sold.
• Remove any discontinued items from the item records that have been completely sold.
• Remove any lot attributes from the records of lot-numbered items if they have been completely
sold.
• Update the standard cost of each item to the current cost if using either the FIFO periodic or LIFO
periodic valuation method.
• Year-End Closing Checklist. The following is a comprehensive list of the Year-End Closing procedures
for the Inventory Control module. They are listed in a recommended procedural order.
1. Post all transactions for the year.
2. Reconcile Inventory quantities using the Reconcile Inventory Quantities window.
3. (OPTIONAL) Complete a physical inventory stock count. Enter and post any variances through the
4. Print additional reports such as the Stock Status, Purchase Receipts, Turnover, Transaction
History, and Serial Number Aging.
5. Make a backup.
6. Close the year using the Inventory Year-End Closing window.
7. (OPTIONAL) Close all fiscal periods for the Inventory series using the Fiscal Periods Setup
window.
8. Make a final backup.

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• Inventory Year-End Closing Window. Up to this point, you have entered and posted all final adjustment,
transfer and variance transactions for the fiscal year and not started the New Year. Then you reconcile
inventory quantities to verify the quantities. Next print a Physical Inventory Checklist and verify the quantity
on hand for all inventory items. If a discrepancy exists; make additional adjusting entries in the transaction
entry windows.
Open the Inventory Year-End Closing window, click the Inventory series button and click Year-End Close on
the Routines Area Page.
To remove all discontinued items select the appropriate box. Only the discontinued items with zero quantities
are removed.
To remove all sold purchase receipts during the year-end closing, it is recommended that you first print a
Purchase Receipts Report to review the receipts to be removed.
To remove all sold purchase receipts during the year-end closing, select the appropriate check box. A “sold”
receipt is one whose quantity received equals its quantity sold.
Once lot-numbered items (to which you have assigned lot attributes) have been sold, you may want to delete
the lot attributes. To delete existing lot attributes during the year-end closing, select the appropriate box. New
lot attributes for the category can be entered in the new fiscal year.
For example, if “red” has been entered as the value for the lot attribute “colour” and you have sold all lot-
numbered items assigned to this value, all information is removed because the quantity received is equal to the
quantity sold.
If you are using either the FIFO periodic or LIFO periodic valuation method, you can update the standard cost
of items during the year-end closing.
When you select to update the standard cost, the standard cost of the item is adjusted automatically to the
current cost, or the amount most recently paid for the item.
• Click OK to begin the year-end closing process. Remember, while the year-end closing is in process you
cannot:
• post
• reconcile quantities
• change valuation methods
• change decimal places
If you attempt to begin one of these procedures, you receive a message saying to wait until the year-end
closing has been completed.

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• Close Fiscal Periods. To close periods, mark all the periods for the Inventory series as closed for the
fiscal year just closed. This prevents transactions from being posted from the
Inventory module to any period in the year closed. Once a period is marked closed, you can no longer post
transactions to it. Open the Fiscal Period Setup window to close periods.
To open the Fiscal Period Setup window, click the Administration series button, expand the Company link,
and click Fiscal Periods on the Setup Area Page.
Completing this step is optional and should not be completed until you are sure no additional adjusting
transactions will be posted for the closed year.
• The year-end closing procedure is not date sensitive. For reports such as the Turnover Report and
Inventory Sales Summary History Report, you should close your year as near to the end of the year as
possible to get accurate reports. Certain reports, such as the Turnover Report, use the Beginning quantity
field for report calculations.
• The Before closing the year, make a backup of all company data and store it in a safe place.

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6) Inventory Control GP2018
Evaluation Form
Trainer’s Name _____________________________________________________________________

Trainee’s Name (Optional) ____________________________________________________________
Company Name_____________________________________________________________________
Questions Rating 1 Very Poor – 5 Excellent
My chance of success in using the product to achieve my required 1 2 3 4 5

tasks is …?
The tasks encouraged application of course theory and reinforced 1 2 3 4 5

learning.
How would you rate the instructor’s delivery and training technique? 1 2 3 4 5
The trainer’s product knowledge was…? 1 2 3 4 5
The trainer maintained a pace that allowed the outcomes of each 1 2 3 4 5

session to be achieved.
I found the format of the training session interesting and enjoyable. 1 2 3 4 5
My overall satisfaction rating for the course is… 1 2 3 4 5
Suggest some of the improvements that could be made to this course.
What did you enjoy about the session?
How will my organisation benefit from my learning experience?
Quotable comment
I give permission for this quote to be used in promotional material by Professional Advantage
including my name and company.
Signed:

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Microsoft Dynamics GP

Email Pro Within a Company 6

1) Overview and Setup 7

2) Item and Pricing Setup 23

Microsoft Dynamics GP Inventor Control | < Date Created>

2.12 Item Purchasing Options 62

4) Editing and Removing Records 96

Microsoft Dynamics GP Inventor Control | < Date Created>

5) Period-End Procedures 124

6) Inventory Control GP2018 Evaluation Form 129

Microsoft Dynamics GP Inventor Control | < Date Created>

Microsoft Dynamics GP Inventor Control | < Date Created>

Collection Bank Fixed

BANK PRO BANK PRO

Receivable General Payables

EMAIL PRO EMAIL PRO

Sales Order Inventory Purchase

Microsoft Dynamics GP Inventor Control | < Date Created>

The Objectives are:

Microsoft Dynamics GP Inventor Control | < Date Created>

CREATE ITEM CLASSES

CREATE ITEM CATEGORIES

MAINTAIN MULTIPLE SITES

MAINTAIN MULTIPLE BINS

MAINTAIN A COMPANY STOCK CALENDAR

MAINTAIN REASON CODES

Microsoft Dynamics GP Inventor Control | < Date Created>

PERFORM STOCK COUNTS

PRINT A PHYSICAL INVENTORY CHECKLIST

PRINT A PURCHASE ADVICE REPORT

Microsoft Dynamics GP Inventor Control | < Date Created>

PRINT REPORTS TO MULTIPLE LOCATIONS

QUERY TRANSACTION DETAILS

1.1 Reason Code Setup

1) Reason Code Setup Window.

Microsoft Dynamics GP Inventor Control | < Date Created>

1.2 Inventory Control Setup

2) Inventory Control Setup Window.

Microsoft Dynamics GP Inventor Control | < Date Created>

3) Inventory Category Setup Window.

Microsoft Dynamics GP Inventor Control | < Date Created>

Microsoft Dynamics GP Inventor Control | < Date Created>

• Shortage Task Demonstration:

Microsoft Dynamics GP Inventor Control | < Date Created>

1.3 Unit of Measure Setup

Microsoft Dynamics GP Inventor Control | < Date Created>

Microsoft Dynamics GP Inventor Control | < Date Created>

7) Price Level Setup Window.

1.5 Price Group Setup

8) Price Group Setup Window.

Microsoft Dynamics GP Inventor Control | < Date Created>

9) Lot Category Setup Window.

Microsoft Dynamics GP Inventor Control | < Date Created>

10) Stock Calendar Maintenance Window.

Microsoft Dynamics GP Inventor Control | < Date Created>

1.8 Price Group Setup

11) Price Group Setup Window.

1.9 Lot Category Setup

12) Lot Category Setup Window

Microsoft Dynamics GP Inventor Control | < Date Created>

1.10 Stock Calendar Maintenance

13) Stock Calendar Maintenance Window.

Microsoft Dynamics GP Inventor Control | < Date Created>