Zortec Inventory Control Work Orders Plant Accounting 1

Zortec Inventory Control & Work Orders/Plant Accounting 1

In this session we will discuss Zortec Inventory Control and how it can be used with Work Orders/Plant Accounting. 2

Topics include entry of inventory items, reporting, physical count, month end. Importing into the Work Order System, calculation of spreads, transactions and reporting. We will also touch on the Work Order Closing process. 3

What is inventory control? 4

The Inventory Control System allows you to keep track of material and supplies used in the day to day operation of a utility. 5

It allows you to enter a transaction when an item is taken out of stock for use on the job site. This is called a Requisition. 6

It also allows you to enter a transaction when an item is purchased. This is called Material Received. 7

Inquiry 8

From the main IC menu select Inquiry. 9

Search Options § Warehouse – Is used to separate material and supplies between departments. § Water, Gas, Electric, Street, etc. 10

Search Options § Item # Direct/Scroll – enter the item number to view. § Desc – search by description. § Part # – search by part number. § Location – search by location. § F 9 for a scrolling list. 11

Item Inquiry § There are several screens of data for each item. 12

Item Inquiry General Tab § Desc – displays item name. § Part – can be the part number or extra description. § Location – could be used for the location/bin in the warehouse. 13

Item Inquiry General Tab § Vendor – the vendor # from AP for this item. § Status – Active, Inactive, Terminated. Used to include/exclude item on reports. § Status must be Active for Transaction Entry. § Type – R = regular; X = exclude. 14

Item Inquiry General Tab § Unit/HW – U = item is a complete unit with no additional parts needed. H = item is a piece of hardware used with others items, like screws and bolts or requires additional parts to make a complete piece of equipment. 15

Item Inquiry General Tab § Unit of Measure – EA = each; IN = inches; FT= feet; LB = pounds, etc. § G/L Account – default account number for this item. 16

Item Inquiry General Tab § Ordering Info – can be used to enter reorder points and quantities. § This is used with the Reorder Report. 17

Item Inquiry General Tab § Unit Costs & Value § Last Cost – unit cost of item from last receipt/purchase. § Average Cost – average cost of the item. This is the value used for transactions. § Value – dollar value of the item. Ø Avg Cost X On Hand quantity = Value 18

Item Inquiry General Tab § § § Quantities and Dates On Hand – quantity in stock/most recent transaction date. On Order – quantity on order/order date. Received – quantity received LTD/date last received. Requisitions- quantity used LTD/date last used. Returns – quantity returned to stock LTD/date last returned. 19

Item Inquiry Quantity Amounts/Dates • The first 5 entries are displayed on screen 1. • Retirement, Salvage, Reserved and Physical IC Adjustment are displayed here. 20

Item Inquiry Quantity History by Year • Enter a year to see summarized quantities by quarter and calendar year to date. 21

Item Inquiry On Hand Transactions • Display Order – E-Entry Date, D-Date Range, Period-Accounting Period, Refer #Ticket Number • Include Dist – Y shows GL number and Ticket #. 22

Item Inquiry On Hand Transactions • Code/Type – displays the charge code and type. • Comment – charge code description. 23

Item Inquiry On Hand Transactions • • Date – transaction date. Period – Accounting period. Quantity – quantity used/received. Amount – dollar amount of item for the transaction. • On Hand – running quantity on hand. 24

Item Inquiry Selectable Transactions • Display Order – E-Entry Date, D-Date Range, Period-Accounting Period, Refer #Ticket Number • Include Dist – Y shows GL number and Ticket #. 25

Item Inquiry Selectable Transactions • Enter the Transactions you want to view in on the bottom of the screen. 3 26

Item Inquiry Selectable Transactions • In this example, option ‘ 3’ Received was selected. 27

Transaction Entry 28

From the main IC menu select Transactions, Transaction Entry, Create mode. 29

Transactions • • Whse # – warehouse number Date – transaction date Tckt # – ticket/work order number PO # – may be entered during receipt of item • Ven – vendor number associated with PO 30

Transactions The cursor will move to the G/L Acct field. • G/L Account – ledger number to be used for distribution of this item. • W/O # – if you are using the Work Order system, this is the work order number that the item should be charged to. Ø This is necessary for the transaction to import to Work Orders. 31

Transactions The cursor will move to the Code field. • Code – charge code for the item. Ø 300 = Requisition or used Ø 210 = Material Received • Item/Assm – item number for the transaction. 32

Transactions • Quantity – enter the quantity for the transaction. • Cost – is the average cost for the item. • Amount – total for the transaction. 33

Transactions • The quantity on hand, average cost, last cost are displayed for the item. • These are information only fields. • After the quantity is entered, answer Y to complete the transaction. 34

Transactions • To enter Material Received, follow the same steps as Requisitions. • Quantity – quantity received. • Cost – zero this field. • Amount – total cost of received items. Ø The Cost field will auto calculate from the quantity and amount. 35

Assembly Units 36

Assembly Units are special items that are defined from various component parts. This option allows you to set-up and describe Assembly Units and the individual inventory items/parts that make-up that Assembly Item. 37

For example: Water and gas taps or a meter change out that requires the same items and quantities each time. This is a great way to save time keying in the same items over and over. 38

Assembly Units are defined in Office Manager 39

Assembly Units • Assm # – item number to use in Transaction Entry. Ø In this example, part of the original item number is used (6075) • Desc – description of the assembly unit. 40

Assembly Units Items/Quantities • Enter up to 30 items per Assembly Unit. • Enter the Warehouse #, Item #, Quantity. 41

Transaction Entry With Assembly Units 42

Transactions – Assembly Units • The entry of the Warehouse #, Date, Ticket # and Code is the same process as a regular transaction. 43

Transactions – Assembly Units • Item/Assm – enter the assembly unit, in this example 6075 -4. • Qty – quantity for the assembly unit, typically 1. 44

Transactions – Assembly Units • When you press Enter, the comments field will display the description of the assembly unit. • When you answer Y to complete the transaction, the other items quickly scroll on the screen. 45

Transactions – Assembly Units • The Ticket Listing report shows our sample Ticket # and the items used. • They were created by entering one Assembly Unit! 46

Renumber Item 47

From the main IC menu select Renumber Item. 48

Renumber Item Use this option to renumber an item. • The option will renumber not only the item, but all the transactions associated with it. 49

Reporting 50

From the main IC menu select Reports 51

Available Reports We will look at a few reports in detail. 52

Quantity Summary Report • Enter the range of items for the report. • Thru Period - Enter the Accounting Period or Thru Date. 53

Quantity Summary Report • Item # • Qty – quantity on hand • Unit Cost – pulls from Item average cost • Amount – quantity X unit cost. Should balance to inventory account in GL. 54

Work Order Distribution Report • Enter the range of items for the report. • Trans Date – date range needed. • Can limit report to specific work order range if needed. 55

Work Order Distribution Report The report displays items, quantities and totals by work order or ticket number.

Reorder Report Enter the Item range for the report.

Reorder Report The report lists items that meet or fall below the reorder point from the Inquiry screen.

Material Used Report • From/Thru Item – enter item numbers for report. • From/Thru Date – date range of transactions. • Mtd or Ytd Activity? – month is most often used. • Period to Report or Period Range. 59

Material Used Report The report displays items, quantities and costs used for the date range entered.

Material Used Report • The Grand Total should be entered in General Ledger monthly to reduce the Inventory account balance. • Typically the account is in the 14 XXX range.

Material Received Report • From/Thru Item – enter item numbers for report. • From/Thru Date – date range of transactions. • Mtd or Ytd Activity? – month is most often used. • Period to Report or Period Range. 62

Material Received Report • Reports displays item # and description. • Vendor if entered. • Received quantity. • Unit cost and Amount.

Material Received Report • The Grand Total should balance with the General Ledger monthly from the Accounts Payable paid invoices.

Material Received Report • This is the Inventories account in General Ledger showing the paid invoice.

Material Received Report • What if you do not balance? ü Check for items that have been entered in Inventory, but the invoice has not been paid. ü Are there paid invoices that have not been entered in Inventory?

Extended Worksheet Report • From/Thru Item – enter item numbers for report. 67

Extended Worksheet Report • The report could be used by the warehouse personnel for the physical inventory count. 68

Detailed Transaction Report • From/Thru Item – enter item numbers for report. • From/Thru Date – date range of transactions. 69

Detail Transaction Report • This report displays both used and received items.

Month End 71

Month End At the end of each month, you will need to record the material used from Inventory into the General Ledger. There are two ways to accomplish this. 72

Month End • Option 1 – Take the total from the Material Used Report and enter a manual journal entry to debit operating expense and credit Inventories (14 XXX) • Option 2 – Use the GL Interface to create the entries from Inventory Control via a packet. 73

Month End The GL Interface is on the main Inventory menu, option 79 Create G/L Packet. 74

Month End • Enter the from/through date range for the transactions. • Charge Codes – enter the codes needed for the journal entry (Code 300 is material used). • The first time running the option answer N to create packet and review the report for accuracy. 75

Month End The report displays the entries that will be included in the packet sent to the GL. 76

Month End • The second time answer Y to Create Packet. • Enter the Packet Name, Packet Period and Packet Date. • In GL the packet will need to be printed, verified and processed to post the transactions to the accounts. 77

Physical Inventory Count 78

From the main IC menu select Physical Inventory 79

Physical Inventory Count To prepare for the physical count, select each option in the order listed. We will step through the process. 80

Physical Inventory Count Print Worksheets Enter the item number range for the report. 81

Physical Inventory Count Print Worksheets 75 6 38 25 1 4 101 The report can be used by the warehouse personnel to record the counted items in the Quantity field. 82

Physical Inventory Count Prepare Items for Physical Inventory • Before physical count totals can be entered, Prepare Items for Physical count must be run. • This resets any previous physical count totals to zero for all items in a warehouse. 83

Physical Inventory Count Input Physical Inventory • Inventory Date – the date of the count or the end of the fiscal year. • Scroll Records – ‘Y’ scrolls through each item. ‘N’ you have to enter each item #. • From/Thru – can be used to limit the items to be entered. 84

Physical Inventory Count Input Physical Inventory • Which Order – select the scrolling order – ‘I’tem, ‘D’escriptions, ‘P’art or ‘L’ocation. • Depending ‘Which Order’ you select, the cursor will stop on the appropriate field. 85

Physical Inventory Count Input Physical Inventory • The first item will appear on the bottom of the screen. • Key in the number from the count sheet. • After you press enter the next item will appear. • Continue until all items are entered. 86

Physical Inventory Count Print Discrepancy Report HINT: It is a good idea to print ALL the first time to double check your entries. • Enter the From/Thru Item range for the report. • Which Period should be the fiscal year and month. • Which Items – ‘A’ for all or ‘D’ for discrepancies. 87

Physical Inventory Count Print Discrepancy Report • The report shows the Quantity from the Inventory System, and the physical count entered. The Net Adjustment is the difference that needs to be recorded in the General Ledger. 88

Physical Inventory Count Print Discrepancy Report • Review the Discrepancy Report for errors. • Corrections should be entered under the Input Physical Count step. • Reprint the Discrepancy Report for Discrepancy Only. If any items need to be recounted, this report can be used. • After all corrections have been made and the report is accurate, you are ready to update the count to the Inventory System. 89

Physical Inventory Count Update to Counts/Adjust Inventory • This step will adjust the Quantity On Hand to match the physical count. • Adjust Date – typically the end of the fiscal year. • Adjust Voucher – key in voucher #. • Adjust Charge Code – defined in Office Manager, Charge codes (400 range). 90

Physical Inventory Count • Item Inquiry after updating the physical count. 91

Questions about Inventory Control? 92

What is the work order/plant accounting system? 93

Do you have in-house construction projects, like water and sewer main extension, where you need to keep track of the cost? 94

And when the project is complete, you need to transfer the final cost out of Construction in Progress to an Asset account? 95

The Work Order system will keep track of these projects. It can also be used to track and report the cost of routine projects, like taps and service line installations. 96

The Work Order system will calculate the cost of overhead and other expenses associated with the project. 97

When the job/project is complete, the order is closed and entries are posted to General Ledger and Fixed Assets, if the item should be capitalized. 98

Work Orders Menu Work Orders Import Options Reports Spread Clearing Accounts 99

Work Order Inquiry Screen 1 of Inquiry shows the Description, GL account, WO amount and other general information. 100

Work Order Inquiry Screen 2 – Summary Totals for each transaction type. 101

Work Order Inquiry Screen 4 –Transactions 102

Work Order Inquiry Screen 4 –Transactions 103

Work Order Inquiry Screen 4 –Transactions You can limit the transaction view to one type if needed. Use ‘Transactions to View’ and enter the corresponding number to view transactions. 104

Work Order Inquiry How do the transactions get here? 105

Work Orders Importing Transactions Import Options At the end of the month the Import Options are used to pull transactions from other applications onto the individual work orders. 106

Work Orders Importing Transactions In order for a transaction to be imported, it must have the Work Order #. • For Accounts Payable or Accounts Receivable transactions, you would be prompted at invoice entry to key in the WO#. • This prompt is controlled by a setting on the general ledger account for construction in progress. 107

Work Orders Importing Transactions In order for a transaction to be imported, it must have the Work Order #. • For Payroll transactions, the employee time is entered through Detail Entry of Times to the WO#. • For Vehicle Maintenance transactions, the usage is entered to each vehicle either through VM or PP Detail Entry of Times to the WO#. 108

Work Orders Importing Transactions In order for a transaction to be imported, it must have the Work Order #. • For Inventory Control transactions, the WO# must be entered during Transaction Entry. 109

Work Orders Spread Clearing Accounts After the transactions have been imported, the spreads are calculated and printed. 110

Work Orders Spread Clearing Accounts What is a clearing account and why do I need to spread it? 111

Work Orders Spread Clearing Accounts Spreading to clearing accounts is the process that calculates the overhead cost for each transaction type. 112

Work Orders Spread Clearing Accounts • Calculate Stores Expense – is the overhead or operating cost on Inventory Control items. • These are “SE” transactions. 113

Work Orders Spread Clearing Accounts • Calculate Overhead – is the overhead cost on Payroll. • These are “OH” transactions. 114

Work Orders Spread Clearing Accounts • Calculate Transportation – is the overhead or operating cost on Vehicles. • These are “TR” transactions. 115

Work Orders Spread Clearing Accounts • After each calculation, Print Calculations report details the overhead money that will be ‘spread’ to each WO#. • The report also includes the GL account distributions. 116

Work Orders Spread Clearing Accounts s. E ore e ns pe x ing r lea C ort ep R St ple am S 117

Work Orders Spread Clearing Accounts • Update Work Orders creates the GL packet with the entries. • And writes the OH, SE, TR transactions to each WO# as needed. 118

Work Orders Reports 119

Work Orders Summary Work Order Report The Summary Work Order Report lists the total by WO# for the date range entered.

Work Orders Detailed Work Order Report • The Detail Work Order Report includes totals by WO# for the date range entered. • It also includes a break down by transaction code and a WO Grand Total.

Work Orders Transactions by Work Order Report • Transaction by Work Order Report shows individual transactions for each order for the date range entered. • It also totals each WO. 122

Work Orders Closing and History • Work Order History is to view and print report for closed orders. • Work Order Closing is used when the orders are complete and ready to be closed. 123

Work Orders Closing and History • Work Order History is to view and print report for closed orders. • Work Order Closing is used when the job is complete and ready to be closed. 124

Work Orders Closing and History • The orders to be closed must be selected. • During the closing process, you will assign plant/fixed asset numbers to transactions on each order. 125

Work Orders Closing and History • After all entries are made, the Closing Packet/Report creates a packet for the GL to move the cost of the job from CIP to the Asset account. • Update Plant Units and & WO, moves the orders to History and updates the Fixed Asset items with the cost from the closed orders. 126

Fixed Assets In Fixed Assets, the Plant Additions, Plant Retirements, etc. are the transactions created when the Work Orders are closed. 127

Visit our website www. localgovernmentcorporation. com. You can submit support requests online, fill out user change request forms and browse documentation. 128