GP Optimizer Summer 2012: Did You Know Microsoft Dynamics GP is an Inventory Management System?

Written By Panatrack Inventory & Asset Tracking for
GP Optimizer Summer 2012 Edition by Rockton Software

Many looking for a Warehouse Management System (WMS) are actually looking to add automated data collection to their inventory management.  Warehouse Management Systems can defined as a full independent inventory system (inventory is actually tracked outside of GP with integration points back to GP) or add-on data collection solutions.  In either case, the key feature to adding inventory management is introducing mobile technology (capture the transactions at the point and time of the activity) and barcode (or other automated) technology. When looking to add a WMS, evaluate the inventory features within GP that you may not be using or even may not know about to set up for your inventory management and add the tools to automate GP.

As an ERP solution, Dynamics GP already offers the ability to manage inventory. On a simple level, inventory is managed by quantities located in site locations. Items can be set up to be tracked strictly by quantity, but can also be set up to be tracked by lot or serial number. The infrastructure to purchase, receive, transfer, use, and sell inventory already natively exists within Dynamics GP.  Even features such as item and site resource planning, cycle counts, multiple bin tracking, and alternate item numbers are standard within Dynamics GP.   Here are a few key inventory tracking features within GP.


About Sites
When you think of a Site, you probably think of a physical building or location.  Sites can be set up to also represent a status for inventory, often identified physically within a physical location.  Examples include a Quality Hold or In-Transit site location. It may also represent a production area, storage area, or vehicle. When you set up sites, consider that you will want to be able to physically identify where the inventory is located; therefore, sites should have an area that can be physically identified. For example, if you are putting inventory in a “Hold” status, designate a physical location for that inventory.

Adding Multiple Bin Tracking
Dynamics GP has support to set up and manage multiple bin locations under sites.  This is often another selling point of a WMS solution.  If you add a barcode data collection solution TO Dynamics GP, multiple bin tracking becomes a key component to your inventory management initiatives.  You can now add another level of definition of where inventory is located.  Additional features such as default bin settings for receiving, assemblies, sales, and returns can be set up. Priority bins can be used to define and direct where inventory items should be stored and incorporate min and max levels.   When setting up bins, define your bins with a logical sort order and plan for expansion.  We recommend setting up a test company database to assist you in your planning stage.

On Hand versus Available Quantities
When tracking inventory within GP, you will see what you have On Hand and what you have Available.  Even veteran users of GP often ask us what the different actually is, as the quantities may be different.  Inventory can be allocated in GP.  An allocation can be done on a sales order.  This “reserves” inventory so when analyzing inventory requirements, inventory for pending sales orders can be accounted for.  When inventory is on an un-posted inventory transaction (such as an adjustment or transfer), the inventory is in a temporary allocated state for the originating site and/or bin location. This eliminates the ability to select a quantity that is greater than what you actually have available.  Once the transactions are posted, the adjustments to the inventory on hand will be updated appropriately for the site and bin.

Serial and Lot Tracking
Inventory is always tracked by a quantity on the item level. Many of our customers have determined that they would see benefits from or are required to track inventory by a serial number or a lot number.  A serial number is a unique number to identify a single unit of an item.  Quantity is restricted to 1 for the serial number itself.  You can have 100 of the item, and each individual item would then have a unique serial number.  This provides the ability to track where that specific is located, movement of that individual unit, and where it was used or sold.  Lot tracking is another option.  Typically a lot number represents a group of inventory that shares the same attributes.  Lot tracking is often used in tracking food, pharmaceuticals, chemicals, or textiles.  Within Dynamics GP, a lot number can be assigned an expiration date and manufacturer date.  There are also up to five user-definable lot attributes that can be set up under a Lot Category.  Multiple lot categories can be set up. A category is assigned to the item.  A lot number is tracked by quantity.  Both serial and lot tracking add the ability to trace the specific inventory in the event of recalls, warranty, or by expiration.

Alternate Item Numbers
For many of our customers, we find that barcodes are already on their inventory. In many cases it is a manufacturer item number which is different than the GP item number they set up.  Those cross reference item numbers can be stored within your Dynamics GP database.  Look under Cards>>Inventory>>Item Purchasing Options.  This will open the Item Purchasing Options Maintenance window and is where Unit of Measure information is set up for purchasing.  Once you enter an item number, next to the item look up icon, a gear icon appears.  Click on that gear to open the Manufacturer’s Item Number Maintenance window.  You may set up multiple cross reference numbers here.  You can also access this window from the Purchase Order Entry screen.  The gear icon is available on the Item header field.  When using our mobile barcode solution, the scanning or entry of the alternate item number is supported and will return your Dynamics GP item number automatically.

Dynamics GP offers a full-featured inventory management infrastructure where an add-on data capture solution can be used to take advantage of those features and add the automation to complete the transaction in real-time.  For more complex inventory management needs such as slotting and cross-docking, consider a full WMS. Panatrack offers mobile barcode data collection to Dynamics GP for Inventory Management, Field Sales, and Fixed Asset tracking. Visit www.panatrack.com for more information.

Download GP Optimizer Summer 2012 Edition by Rockton Software for more tips and tricks that help make Microsoft Dynamics GP simpler and easier.