Quoting with Warehouses

Availability of inventory can be a crucial issue in the quoting of orders and estimates. Inventory issues are often complicated by the separation of inventory into different warehouses. Cyrious Control resolves these differences through the use of Warehouse Groups and separating the warehouse used in quoting from warehouse used in production.

The Estimating Warehouse is the warehouse that is used for quoting in an order or estimate. This can be a warehouse group (which combines the inventory of all of the sub-warehouses in it), a stockroom, or a standard warehouse. It may not be a Kanban warehouse but it may be the group that a Kanban warehouse is contained within. When displaying a parts grid in order and estimate entry, the following inventory numbers are always pulled from the Estimating Warehouse:

• Available
• Billed (not normally displayed)
• Received (not normally displayed)
• On-Hand (not normally displayed)
• Reserved (not normally displayed)
• On Order (not normally displayed)
• Expected (not normally displayed)

Using the inventory quantities from the Estimating Warehouse ensures that the combined inventory of the warehouse group is accessible for quoting. To limit the available inventory to a specific warehouse, a stockroom or standard warehouse may be selected.

The Production Warehouse is the warehouse that materials will actually be drawn from during production. The reservation for materials is placed against the production warehouse. The reservation will be reflected in the estimated available quantity when either of these two conditions is met:

• The production warehouse is the same as the estimating warehouse.
• The production warehouse is a sub-warehouse of the warehouse group specified as the estimating warehouse.

When the estimating warehouse is selected, the production warehouse defaults using the following logic:

• If the estimating warehouse is a warehouse group, the warehouse group’s default production warehouse is used.
• If the estimating warehouse is a standard warehouse, the same warehouse is used.
• If the estimating warehouse is a stockroom warehouse, no default is set and the user must manually specify a production warehouse.

Control will enforce the requirement that the Estimating warehouse and the production warehouse both be in the same division. Aside from this restriction, Control cannot infer and does not enforce logic between the estimating and production warehouses. When multiple warehouses are defined within a division, it is up to the user to choose meaningful combinations.

Order and Estimate Production Tab

Inter-Division Inventory Usage

There are no restrictions against using an estimating and production warehouse that are in different divisions than the order is. This would be the case when a separate division is used for sales but for which there is no production facility (for example, in a remote sales office).

When this occurs, the materials associated with the production of the good are incurred in the producing division while the income is recorded in the selling division. To balance this, Control transfers the costs associated with the production of the item to the selling division using a transfer account, as illustrated in the following example:

Example: Order 1234 was a sale for Division A, but built in Division B. Income from the order was $500 (no taxes), and it requires $200 in materials and $100 in labor.

The order was marked created.

The material and labor were consumed in production.

The order was marked sale.