Organization Profile: Default Inventory Settings

To get to the Organization Profile click the gear icon on the very top right and choose the Organization Profile option.

You will find a number of system defaults on the Organization Profile screen. There are a few values in the Details tab to take note of that specifically affect Inventory.

The three values will be explained below.

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 becomes important when you have parts with multiple receipts. Here is an example:

If FIFO is set, and I add this part to a Work Order, the oldest part receipt with stock remaining will be used. This means quantity from the 2/3/2019 part receipt will be pulled and $29 will show up as part cost on the WO.

If LIFO is set, then the newest part receipt from 2/4/2019 will be used, making the part cost $30 on my WO.

If you happen to use up all remaining stock of 13 quantity, then both part receipts will show up at their separate prices on the Work Order. 8 will show for $30 and 5 for $29.

Default Tracking

When adding a new part, you have the option of enabling Inventory Tracking. When enabled, quantity is tracked for the part so that you know how much is in stock.

If Default Tracking is set to No, then Inventory Tracking is automatically disabled for new parts and needs to manually be checked.

If Default Tracking is set to Yes, then the Inventory Tracking will automatically be checked when adding new parts.

This is the setting on the new part screen that is affected:

Allow Overdrafts

If Allow Overdrafts is set to No, then you will not be able to add a part to a Work Order if the quantity of the part is zero.

If Allow Overdrafts is set to Yes, then you can add parts to Work Orders even if you are out of stock. The quantity can go to the negative.

This only affects parts where Inventory Tracking is enabled. If no inventory is tracked, there is no quantity in stock to add or subtract from, and this setting would not apply.

Please note that if you set this option to Yes and an overdraft is detected, then the setting cannot be switched back to No.