V8 - Reordering and the Reorder list

SOS Inventory provides multiple tools and options to assist you in reordering products.

You can set an item’s reorder point and maximum stock level at one or multiple locations. The Reorder list can be used alone or in tandem with the Reorder report to determine what you need to order—while the Where to buy report assists you in determining the vendor from whom you make your purchases. 

Once you have determined your ordering needs, you may create POs manually or have the system generate them for you. 

SOS also allows you to set up email alerts to notify you when you are getting low on items. See Alerts for more information.

Using the Reorder List

SOS Inventory’s Reorder list (Operations menu > Purchasing > Reorder list) serves as a type of shopping list—a reminder of the items that you need to buy—but with the added capability of generating purchase orders from that list.

Items can be added to the Reorder list using any of the following methods:

• Directly, via the Reorder list. Use the Add new button on the list page to create a Reorder entry. This method requires populating the data fields manually. 
• The Actions menu of the Items list (Operations menu > Inventory > Items). Choose the Add to reorder list action for the item you wish to add.
• The Reorder report (Operations menu > Reports > Purchasing > Reorder report).
• If you want SOS to add to the Reorder list all items that have hit their reorder point, select Auto-add to reorder list feature under the Options section of the Reorder report.
• If you prefer greater control over which items are added to the Reorder list, select the Display report option under the Actions section when you are ready to run the report. Once the online version of the Reorder report appears, place a check in the box of any item you wish to include, then select Add to reorder list in the Actions section:
  
  
   
• The Where to buy report (Operations menu > Reports > Purchasing > Where to buy). Available on the Plus and Pro plans, this report compiles information from the Vendor-Item Catalog and presents it in a chart that allows you to compare vendors’ prices for an item and check your current inventory stock level. If you select the Display report option under the Actions section when you are ready to run the report, the Where to buy report will include an Add to reorder list column. Select Add for any item that you want to include in the Reorder list.

When you are ready to place an order for the items on the Reorder list, you can streamline your work by having SOS generate purchase orders for you. On the list page, place a check in the box of each item you wish to order—or check the box at the top of the column to select all items on that page. Then select Generate POs on the Batch actions dropdown list. The result is a purchase order for each unique vendor containing all the items that specify that vendor.

Purchase orders created from the Generate POs batch action are NOT sent to vendors automatically. After generation, the POs will appear on the Purchase orders list, where they can be edited as needed and emailed to vendors.

If SOS successfully generates a purchase order for an item, it will be removed by the system from the Reorder list. However, you may need to refresh the list page in your browser for the updated version to appear.

Reorder points

A reorder point is the stock level at which the system signals that you need to replenish an inventory or assembly item. The quantity you specify in the Reorder point field of an item definition is used by SOS to determine when an item needs to be placed on the Reorder report (Operations menu > Reports > Purchasing > Reorder report). If you have set up a low-inventory alert for the item, SOS uses the reorder point to determine when the notification should be emailed to you.

SOS Inventory calculates the current stock level using multiple factors. Items will appear on the Reorder report when the available quantity of an item, plus the quantity of the item on open (unreceived) purchases orders, hits or falls below the reorder point. The system calculates available quantity using the following formula:

Available quantity = In-stock quantity – quantities at non-nettable locations – quantities on unfulfilled sales – quantities on pick tickets not related to a sale 

If an assembly is on an unfulfilled sale, the available quantity of the components of the assembly are reduced. If the Include WOs on Reorder report setting is enabled (under Settings > Purchasing settings), SOS will also include work orders in the calculation of available stock. 

An option on the Reorder report allows you to disable Include POs in calculation in the computation of items needed, but this setting should not be disabled in most circumstances.

For an item that you do not wish to order unless you have a sales demand for it, enter -1 in the Reorder point field of the item definition. 

If you have an item at multiple locations, you may establish different reorder points for each location. Location settings, an action available on the Items list (Operations menu > Inventory > Items), allows you to set different reorder points—as well as different maximum stock levels and default bins—at each location.

Automatic reorder points

The Pro plan of SOS Inventory supports the ability to calculate reorder points automatically based on historical data. It considers historical lead times for purchases as well as historical sales volumes. To enable the Calculate reorder points option, go to Settings > Inventory settings.

Max stock level

SOS Inventory allows you to specify a maximum stock level for an inventory or assembly item in its item definition. The Max stock level field indicates the quantity you wish to have on hand after replenishing the item’s inventory and allows the system to suggest the quantity that needs to be ordered.

The quantity the system indicates you should order is found on the Reorder report (Operations menu > Reports > Purchasing > Reorder report). The amount is based on the available quantity, whether you opt to include open work orders and open purchase orders, and the maximum stock level. The system will suggest a reorder quantity that will increase your in-stock quantity of items to the maximum stock level after all unfulfilled sales and open work orders are satisfied.

If the Max stock level field's value is set to zero or is lower than the quantity entered in the Reorder point field, the item will not show up on the Reorder report. Leave the Max stock level field blank if you do not wish to reorder an item unless you have a sales demand for it.

If you have an item at multiple locations, you may establish different maximum stock levels for each location. Location settings, an action available on the Items list, allows you to set different maximum stock levels, reorder points, and default bins for each location.

Reorder report

To view your Reorder report, go to Operations menu > Reports > Purchasing > Reorder report. This report shows all items for which the Available for sale quantity is at or below the reorder point. It also calculates the quantity needed to bring the item to its maximum stock level.

If selected in the Reorder report options, open (unbuilt) work orders of assemblies will further increase the demand for the component items and will be included in the calculation of when the item shows up on the Reorder report, along with how many should be purchased.

For companies with multiple locations, the Reorder report can be used to create system-generated inventory transfers from one location to another.

Running a Reorder report at a single location for a company with multiple locations

If your company has multiple locations, you can run a Reorder report for an individual location if you have established maximum stock levels and reorder points for items specific to that location.

Location settings, an action available on the Items list (Operations Menu > Inventory > Items), allows you to set different maximum stock levels, reorder points, and default bins at each of your company’s locations.

An alternative to using the Location settings action is performing a location-specific item bulk edit. This process can be used to add the maximum stock level, reorder point, and default bin for each item stored at that location.

Once you have entered location-specific data with either Location settings or an item bulk edit, you can run a Reorder report for a select location using the report’s Location filter. The same formulas used to calculate reorder quantities for all locations will be used to calculate the reorder quantities for a single location.

Both purchase orders and inventory transfers may be generated for a single location using the Reorder Report. For more information about these features, see Generating purchase orders from the Reorder report (in the section below) and Generating inventory transfers from the Reorder report.

If no location-specific data has been entered for an item, SOS will use the fields in the Max stock level and Reorder point in the item definition to create the Reorder Report.

Generating purchase orders from the Reorder report

After a Reorder report has been run, SOS Inventory allows you to generate purchase orders directly from the Reorder report with the Generate POs action. This allows you to create purchase orders for the items you need quickly.

Only those items with an assigned preferred vendor will be included on generated purchase orders. When multiple items on the Reorder report have the same preferred vendor, those items will be added to the same purchase order. The purchase cost of the items on the generated PO comes from the item record.

Generating purchase orders from the Reorder report will not send the POs to vendors. After generation, the user may go to the Purchase Orders list, edit the generated purchase orders as needed, and email them to vendors.