Purchase order reordering video

Businesses that do stock control with regular stock takes often set reorder thresholds and calculate reorders from suppliers based on the quantities on hand and the respective reorder points. Finale Inventory supports the operations used for purchase order reordering , as shown in this video:

Purchase order reordering video

Video Transcription

Hi, this is Chinh from Finale Inventory. In this session, I’m gonna show you how to use the purchase order reordering functionality. So let’s open up the test account, then click on View Stock, and for this tutorial, I’m gonna use our polo shirts. So if you double click on one of the products, let me show you the parameters I use for our calculations, in terms of the reordering calculations. So if you scroll down to the purchasing, as you see here, there’s three fields that you use. Standard reorder point, standard reorder point max and standard reorder in quantity of.

The reorder point is essentially the threshold, so the [inaudible 00:00:41] to alert you when you get below a certain threshold. We order max’s when you get below the threshold, what do you what to order up to? So, in this case, when I get below 150, I wanna order up…get up…back up to 200 T-shirts or polo shirts. And standard reordering and quantity of is essentially, you know, if you can only [inaudible 00:01:02]. You can also, you know, think of it as the order multiple. So, in this case, I can order my polo shirts in multiples of 25.

For example, if you’re ordering cases of Coke, then your order model would be 12. If you can buy products that…in multiples of one, in terms of you can buy individual units, then you can just simply leave this field blank. Also we have indications here where, if you have preferred suppliers, you can select it, and we have three preferred suppliers, and for this example I’m gonna put ABC T-shirts. I put the supplier price for this product and I have a supplier product ID, which is different from my Finale product ID. Okay. So if I go back… And I went ahead and set the same threshold for each of these four products in advance.

So as you see here, you know, one of the things that you should be aware of is the Finale doesn’t look at the quantity on hand for our reordering, it looks at the available. So, for the first product, the red polo shirt, we have 100 on hand, but Finales is based…it’s available…uses the reordering availability based on the available number. So, in this case, it’s 50 because we have an outstanding order for 50 units. So we have 50 remaining and this is what’s used for our threshold. If you remember, the reordering threshold that we have set for each of these products are 150, so if you see here, for these 4 shirts, we should be having…we should be…we should create a reordering purchase order for the first 3 because it’s 50, because these 3 are below 150.

So how do you leverage purchase order reordering function? So in this account, we have, you know, thousands of products, test account…in this test account, but if I go to Reorder here, it’ll basically aggregate all the PO’s, and if you have the products identified by the preferred vendors, it will aggregate the ones that we have to get reordered. So in this case, as you see here, here’s the ABC T-shirts and here’s our three shirts that we have to reorder. In this demo, I actually can, with the click of a button, create 4 PO’s based on the reordering threshold for each of the products, and in this case, I have 50 available, my reorder point is 150, and I wanna get up to 250 or 200.

So in this case, it’s recommending I order 150 and it’s the same for each of these products. Okay. Here’s my total summation. So if I click on create four purchase orders, it’ll create a purchase order for ABC T-shirts, for Alcor, for a J&M and EKS. If I just wanna create the PO for ABC at the moment, all I do is basically select the supplier here, and just say “Create one.” So I click on this and I click on System Order ID to create a PO number sequentially. It’ll basically select the supplier here. It’ll populate these products.

And, you know, these are the numbers based on the min max threshold that we have set, but there’s nothing preventing you from changing the number here if you wanted to modify the PO after you create it. Okay. Lastly, what you can do is you can hit Mark Purchase Committed. That’s a firm order. From here if you want, you can send out or email the PO to your vendor and this is what it looks like, and here we go. Here’s the PO. And lastly, you could also set rules in place so that way, you can get an email sent to you when any of your products get below the threshold. So you don’t even have to log into the interface to get a notification.

So the purchase order reordering functionality is very powerful and it makes reordering a lot easy because it allows you to basically…allows Finale to do all the calculations and do all the managing as your shipping orders to keep track of what you know, what products get ordered at any given time. So that’s a little summary of our reordering, but if you have any questions about the feature, please give us a call or email us at [email protected] Thank you.

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