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Inventory Settings

Overview

Inventory Settings provide centralized configuration for all inventory management parameters and system behaviors. This essential configuration module controls journal assignments, transaction processing rules, costing methods, and operational preferences that govern how your inventory system operates across all locations and transactions.

Inventory Settings

To access Inventory Settings:

  1. Click Inventory in the left sidebar menu
  2. Click Settings → Inventory Settings
  3. Or use direct URL: https://main.smartb.co/action?name=stock_settings

Key Configuration Areas

Inventory Lock Date

Purpose: - Controls the historical cutoff for inventory transactions - Prevents accidental changes to closed accounting periods - Maintains data integrity for historical reporting

Configuration: - Set specific cutoff date for transaction modifications - All transactions before this date become read-only - Helps maintain audit compliance and data consistency

Journal Configuration

The settings define default journals for different transaction types:

Goods Receipt Journal

  • Default Setting: Goods Receipts
  • Purpose: Controls accounting entries for inbound inventory
  • Impact: Affects cost accounting and inventory valuation

Goods Issue Journal

  • Default Setting: Goods Issues
  • Purpose: Controls accounting entries for outbound inventory
  • Impact: Affects cost of goods sold and inventory reduction

Goods Transfer Journal

  • Default Setting: Goods Transfers
  • Purpose: Controls accounting entries for internal transfers
  • Impact: Affects location-based inventory tracking

Return Journals

  • Return From Customer Journal - Handles customer returns
  • Return To Supplier Journal - Manages supplier returns
  • Purpose: Separate accounting treatment for returns
  • Impact: Affects revenue recognition and cost adjustments

Stock Count Journal

  • Default Setting: Stock Counts (Warehouse)
  • Purpose: Controls accounting entries for count adjustments
  • Impact: Affects inventory accuracy and variance tracking

Specialized Journals

  • Landed Cost Journal - Handles import costs and allocations
  • Product Waste Journal - Manages waste and obsolescence accounting

System Behavior Settings

Transaction Processing: - Default transaction approval workflows - Automatic numbering sequences - Document reference requirements - User permission validations

Costing Methods: - FIFO (First In, First Out) configurations - LIFO (Last In, First Out) settings - Weighted average cost calculations - Standard cost management

Location Management: - Default warehouse assignments - Location hierarchy settings - Multi-location transaction rules - Cross-location transfer policies

Advanced Configuration Options

Lot and Serial Number Settings

Numbering Schemes: - Automatic lot number generation patterns - Serial number format requirements - Expiration date calculation methods - Traceability compliance settings

Tracking Requirements: - Mandatory vs. optional lot tracking by product - Serial number requirements by category - Quality control integration settings - Recall procedure configurations

Quality Control Integration

Inspection Requirements: - Mandatory inspection for receipts - Quality approval workflows - Defect tracking configurations - Non-conformance procedures

Grading Systems: - Product grading categories - Quality scoring methods - Grade-based pricing rules - Customer-specific requirements

Container and Packaging

Container Management: - Default container assignments - Container capacity settings - Multi-level container hierarchies - Container tracking requirements

Packaging Requirements: - Packaging unit definitions - Label printing configurations - Shipping container rules - Environmental compliance settings

Impact of Configuration Changes

Transaction Processing Impact

Journal Changes: - Affects all future transactions - May require reposting existing entries - Impacts financial reporting - Requires accounting approval

Costing Method Changes: - Affects inventory valuation - Impacts cost of goods sold - May require system recalculation - Requires careful timing

Operational Impact

Workflow Changes: - Affects user procedures - May require staff retraining - Impacts system performance - Requires change management

Reporting Impact: - Affects standard reports - May impact custom reports - Changes analytical capabilities - Requires documentation updates

Configuration Best Practices

Planning and Assessment

  • Current State Analysis - Document existing configurations
  • Business Requirements - Align settings with operational needs
  • Compliance Review - Ensure regulatory compliance
  • Impact Assessment - Evaluate effects of changes

Implementation Process

  • Test Environment - Test changes in non-production system
  • Staged Rollout - Implement changes gradually
  • User Training - Train staff on new procedures
  • Documentation - Update all relevant documentation

Change Management

  • Approval Process - Obtain proper authorization for changes
  • Communication - Inform all affected users
  • Monitoring - Watch for issues after implementation
  • Rollback Plan - Prepare contingency procedures

Troubleshooting

Configuration Issues

Journal Assignment Problems: - Verify journal exists and is active - Check user permissions for journal access - Confirm journal setup is complete - Review accounting configuration

System Performance: - Monitor impact of configuration changes - Check for inefficient settings - Review automation rules - Optimize based on usage patterns

Data Integrity Concerns

Transaction Validation: - Ensure proper validation rules - Check for data inconsistencies - Verify calculation accuracy - Monitor error logs

Reporting Accuracy: - Validate report calculations - Check configuration impact on reports - Verify historical data consistency - Test report functionality

Security and Access Control

User Permissions

Configuration Access: - Limit access to authorized personnel - Implement approval workflows - Maintain audit trails - Regular access reviews

Change Tracking: - Log all configuration changes - Maintain change history - Document business justification - Monitor unauthorized changes

Audit Compliance

Documentation Requirements: - Maintain configuration documentation - Document change approvals - Keep audit trail records - Support compliance reporting

Tips

  • Regular Review - Periodically review settings for optimization
  • Documentation - Maintain current configuration documentation
  • Testing - Test configuration changes thoroughly before implementation
  • Training - Ensure all users understand current configurations
  • Backup - Maintain backups of configuration settings