Stock management

With the EG Xena Stock Management app, you get easy, yet comprehensive stock management.

 

Stock management should be easy. You buy five bananas and sell two. Then you have three left. But anyone who has worked with stock management knows that it's not that simple. Stock management is actually quite complex, so it requires careful work with the system and knowledge of all the functions related to stock management.

 

1. Getting started with stock management

Stock management can be activated directly through each article. You can also determine that for articles created in an article group, stock management should be automatically activated/deactivated.

Once you have created a new article, you activate stock management at the 'stock management' tab on the article.

 

 

When stock management is activated, additional fields are displayed. These fields are related solely to stock management:

• Current average price: Current system-calculated value per quantity
• Stock level, min: The minimum quantity defined before replenishment is required
• Stock level, max: The quantity to be ordered when the stock reaches the minimum level
• Default location: Select the location suggested for purchase/sale of the article
• Supplier: The supplier from whom you normally purchase the article

 

 

2. Important things to have in place before using stock management!

The article's article group is very important. The article group determines how sales are distributed under turnover/usage, and which account the inventory should be posted on. The article group cannot be changed once there is a sale or purchase of the article.

Before you get started, you can also create locations (physical storage locations). Having a well-organized stock is crucial for effective stock management. If your physical stock lacks organization, it will reflect in the stock management within Xena as well.

 

3. Posting the opening balance

When you start with stock management in Xena, you probably already have some articles on your physical stock. These need to be posted along with the opening balance (primo postings). It may sound complicated, but it's not. It's just a list of the articles you have in stock on the day you start in Xena, including their value.

1. Open the menu Ledger > PrimoPostings.
2. Click on your first fiscal year to open it.
3. In the section Primo post choose the 'articles' tab, and enter the articles with the article number, quantity, and average value per piece.

You can also import the opening balances via a CSV file. The import should be done in 2 steps:

1. First, import the articles into the article catalog (if they are not already created).
2. Then import the actual quantity and value per article.

 

NOTE: It is important that you ONLY import quantity and value for articles that should be created with stock management. If there are articles in your file that you do NOT want to manage in the warehouse, do not import them—even if the quantity is 0.00.

 

Primo postings for articles can be entered/imported before your accountant has the complete opening balance, as the total value for the inventory is simply offset against equity. The primo postings for articles are not locked and can be edited at a later time if necessary.

However, it is recommended to make as few changes as possible to the primo postings once they are created, as any changes you make will affect your financial balance as well as the article's average price!

 

 

4. Adding Stock via Purchase Order

The standard way to add stock through a purchase is by creating a purchase order. This allows you to record your stock while simultaneously registering the invoice from the supplier. You will owe money to your supplier, and the article will be added to your stock.

When creating a purchase order, the order placement indicates that articles are on their way to your stock (confirmed orders - purchases). This affects the Replenishment function, and you can also see on your sales order that articles are in transit to your stock. When placing an order, it is recommended to set the order status as 'Ordered.'

Once you receive the articles, you can create a receipt within the purchase order. If not all ordered articles arrive at the same time, you can create partial deliveries. When making a delivery, it is recommended to set the order status as 'Received.' Many people prefer to wait to register the delivery when they also register the purchase invoice. This is generally advised.

When you receive the invoice from your supplier, you need to create an invoice within the purchase order. At the same time, you can register the delivery. It is possible that the invoice only covers a part of the order or that it includes multiple orders. To match the received invoice with your orders, you have two options:

1. Partial invoicing of the purchase order: Set the order status as 'Received' for partial invoicing, making it clear that you still need an invoice for a part of the order.
2. Use the 'Split and Merge Order' function: This feature allows you to split and merge your orders with the current supplier's invoice. It ensures that your orders match the received invoice, providing clarity on what remains in the order and what has been received.

 

 

5. Moving Documents from Voucher Registration to Purchase Order

If you receive an invoice in voucher registration and already have a purchase order related to that invoice, you can easily move the document to the purchase order to keep the invoice stored in the right place.

1. Select 'Move' in the document's menu in voucher registration
2. In the dialog box, choose 'Order'
3. Select the order that corresponds to the invoice
4. Click 'Create' to save the changes

Once you have confirmed that the document is now attached to the purchase order (check the 'Documents' tab), you can delete it from the voucher registration to avoid double posting the invoice. To delete it, select the 'Delete' option in the document's menu.

Remember: Before posting the invoice via the order, verify that the prices and quantities on the invoice match the purchase order. Also, make sure to include the supplier's invoice date, invoice number, and payment ID if applicable.

 

 

6. Replenishment 

Replenishment suggests the articles you need to reorder. You find this function in the menu Stock > Replenishment. Articles are automatically suggested based on two criteria: 

1. If you have set minimum and maximum values for the article (see earlier in this guide), the system will propose replenishment up to the maximum quantity.
2. If a sales order confirmation is created for articles that are not in stock.

Consideration is given to reserved articles and to articles that have arrived (even if no invoice has been recorded for them).

Review the suggestions:

1. For each article, you can override the suggested quantity to order and select the preferred supplier.
2. When you click 'Add selected articles to draft,' a consolidated proposal for ordering is created per supplier.
3. You can then create a new purchase order or add the suggestions to an existing order using the menu (three dots).

You can proceed with ordering and follow the standard process of receiving and invoicing the created purchase orders.

If you delete a suggestion, the associated articles will be suggested for replenishment again the next time.

 

 

7. Locations and Variants

You can manually distribute the inventory of an article across your locations/variants. There are no changes in value. The quantity is simply moved from one location/variant to another.

1. In the box Details at the bottom of the article select tab 'Stock'
2. Click on the menu icon (three lines) next to the inventory line 
3. Select 'Specify variant/location'

If the actual stock count needs to be adjusted up or down, it requires a regulation via the stock counting draft (see below).

8. Stock count 

To regulate stock, use the stock counting draft. Here, the incoming or outgoing quantity of the article is posted, along with an adjustment of the stock value per unit. This means that everything you post through stock count affects your financial accounts.

NOTE! A stock count does not add new value to the stock. If there is a need to add new articles to the stock with value, the article MUST be recorded in the stock through primo posting or from a purchase order. Refer to the previous section of this guide!

NOTE! The stock count cannot be done retroactively. (It is not physically possible to count something 'yesterday'!) Be careful to keep your drafts 'fresh' and have them posted continuously. It is better to divide the counting into small portions rather than counting thousands of articles all at once!

In summary, the stock count draft works as follows:

1. Select Stock > Stock Count > Stock Count Overview
2. Click 'Create stock count'
3. Add criterias. It can be 'All' or 'Last counted date' or a specific location, warehouse, or article group
4. A draft is created where you enter the actual quantity in stock
5. At the top adjust bookkeeping date
6. Bookkeep the draft via the menu (3 dots).

 

 

Under Stock> Stock count > Stock count Overview, you will find a list of drafts that have been created but not yet posted. Multiple employees can count stock at the same time, for example, each employee can have their own draft.

Once you have created a stock count draft, you can choose to download the list as a CSV file. Open the file in Excel, and now you have a file that you can take with you and fill in the 'Counted Quantity' column.

It is important that you DO NOT modify column headers or others, as the file will not be able to be uploaded again. Simply enter the counted quantity, save the file again, and then through the original stock count draft, select 'Import CSV'.

 

Here are links to additional guides that you may find useful once you have become familiar with stock management:

READ MORE: Stock and average prices

READ MORE: Stock Value and stock balance

---

---