Organization Profile: Default Inventory Settings

To access the Organization Profile, click the gear icon in the top-right corner and select Organization Profile from the menu.

The Organization Profile screen contains various system defaults. Several values within the Details tab specifically impact Inventory.

The following section provides explanations for the three values.

Inventory Accounting

Inventory accounting can be set to FIFO or LIFO.

FIFO (First In First Out) means that the OLDEST part receipt will be used first when adding parts to Work Orders.

LIFO (Last In First Out) means that the NEWEST part receipt will be used when adding parts to Work Orders.

This is particularly important when parts have multiple receipts. The following example demonstrates this:

When FIFO (First In, First Out) is set, adding this part to a Work Order will pull from the oldest part receipt with remaining stock. For example, quantity will be drawn from the 2/3/2019 receipt, and a part cost of $29 will appear on the Work Order.

When LIFO (Last In, First Out) is set, the newest part receipt will be used. In this case, the 2/4/2019 receipt will be selected, resulting in a part cost of $30 on the Work Order.

If the remaining stock of 13 units is fully consumed, both part receipts will appear separately on the Work Order at their respective prices: 8 units at $30 and 5 units at $29.

Default Tracking

When adding a new part, the option to enable Inventory Tracking is available. When enabled, the system tracks the part’s quantity to monitor stock levels.

• If Default Tracking is set to No, Inventory Tracking is disabled by default and must be enabled manually for each new part.
• If Default Tracking is set to Yes, Inventory Tracking is enabled automatically for all new parts.

The following setting on the new part screen is affected by this configuration:

Allow Overdrafts

If Allow Overdrafts is set to No, parts cannot be added to a Work Order when their quantity is zero.

If Allow Overdrafts is set to Yes, parts can be added to Work Orders even when out of stock, allowing the quantity to become negative.

This setting only applies to parts with Inventory Tracking enabled. For parts without inventory tracking, quantity is not monitored, and this setting does not apply.