Activant Dimensions Getting Started page 433

34. Minimum
35. Maximum
36. Ave/Lst Cost
Dimensions 14
1. Enter the minimum allowable stock level (reorder
point) in whole numbers that should be
maintained (up to 8 digits).
2. After you have been on the system a few months,
you can calculate what the minimum should be
using Calculate & Print Min/Max/ EOQ in
Inventory Management. The calculation is as
follows:
(Projected Monthly Sales x Lead Time)
+ (Projected Monthly Sales x Safety Factor)
-------------------------------------------------------------
1. Enter the maximum allowable stock level in
whole numbers that should be maintained, up to 8
digits.
2. After you have been on the system a few months,
you can calculate what the maximum should be
using Calculate & Print Min/Max/ EOQ in
Inventory Management. The calculation is as
follows:
+ (Projected Monthly Sales x % Projected Monthly Use for Max)
---------------------------------------------------------------------------------
The
% Projected Monthly Use for Maximum
defined value that is entered at the time of
calculating min/max/EOQ. By changing this
value, the maximum values can be made larger or
smaller.
1. Enter the average unit cost for this item (up to 7.2
digits). The cost is controlled the same way as the
price. If the price is per thousand board feet, cost
would be the same.
2. This figure will also be used for the last cost until
you start receiving inventory which will
automatically maintain the last cost field.
3. Once the receiving system is implemented, the
values for average and last cost diverge.
Average Cost - becomes a weighted average cost
Beginning Balance
Inventory Receipt
* New average cost
Last Cost - updated every time inventory is
received. If there are two inventory receipts on
the same day for an item, the cost on the last one
posted appears as the last cost.
4. It is especially important to have a correct
average cost for your inventory items. The
average cost not only affects your inventory
Appendix C
Minimum Quantity
Maximum Quantity
is a user-
Qty Ave Cost Ext. Cost
10 $10.00 $100.00
10 $12.00 $120.00
---- --------- -----------
20 $11.00* $220.00
Minimum
425