IBIS Technology

TABLE OF CONTENTS

• Getting started
• Set up minimum quantities for your stock items
• Purchase/credit order process
• Purchase stock
• Receive delivered stock
• Stock summary screens
• Transfer stock between locations
• Process a stock credit
• Adjust stock units
• Delete a purchase/credit/transfer or adjustment
• Consignment stock 
• Best-practice tips
• Manage negative stock warnings
• Re-value the average unit cost of a stock item

Getting started

Follow the steps below to get started using the IBIS Stock system.

1. Ensure your retail suppliers are set up in the system. If the supplier is not tax registered, enable the non-tax reg setting to prevent GST from calculating on purchase orders. Retail suppliers do not require an account.
2.  Set up or import retail items for each supplier.
3. Purchase the stock into your system for each supplier. Ensure item costs are set correctly for each item.
   
   

   If you were selling stock items through POS before using the IBIS Stock module, your stock system will be in a negative balance. Ensure you complete an adjustment to reset your stock values to 0 BEFORE you complete a purchase. 

   
   

4. Print labels for your stock items.

Set up minimum quantities for your stock items

You can define the minimum units you wish to use as a trigger for purchasing items. Setting minimum units means items that are currently BELOW the minimum specified stock level will be added to the Purchase order if using the Select Items function "less than minimum". This feature ensures you are maintaining a specific quantity of items.

The minimum unit feature is not currenty available to use in new purchase orders. You can run the Stock on hand report to view all items less than the minimum quantities specified and filter the report by supplier to see which items to reorder. We apologise for the inconvenience and will be addressing this in the redesign of our stock module.

Purchase/credit order process

This flowchart explains the steps and status changes involved in purchasing new stock items through the system.

Purchase stock

When you need to order items from a supplier, this is referred to as creating a Purchase Order. Follow these steps to complete a purchase order: 

1. Open the Purchases screen from under the Stock menu.
2. Select the Supplier and Location. The Supplier and retail items must be set up before you create your order.
3. Click Refresh, the Purchase ID will generate automatically, so you can now enter items. 
4. Add your items by either using the + button to add a new row to the grid, then manually add the items by PLU, Supplier code or Item name, then press Enter or Tab or you can use the Select Items button and choose your preferred selection method, then press OK. 
   

   
   

   The Less than minimum reorder feature is not currently available. 

   
   

   
   
   
5. Enter the units required into the Ordered column and the unit cost if known.
6. The amount, subtotal, GST and total cost will be calculated automatically when you enter the unit cost.
   
   

   Ensure any non-tax registered suppliers have this setting ticked in the Contacts screen to prevent tax from calculating on the order.

   
   
7. The order date will default to today, amend if necessary. 
8. Enter a reference or note as required.
9. When you are finished, change the status to Ordered and click Save (if you wish to make further amendments, leave the status as New).
10. To send the order to the Supplier, click Reports, then Purchase order. 
11. To email, select View on screen. At the top of the preview, click Export then choose Email (you must have an email address set up in the Contacts screen before you can email and the emailer tool configured in IBIS).

Receive delivered stock

When stock is delivered to your location, please make sure that the items delivered match your original purchase order. 

1. Open the purchase from the Purchase Summary screen (click > to the left purchase row) or enter the Purchase ID directly into the Purchase screen and click Refresh.
2. Change the status of the purchase to Delivered (the delivery date will default to the current date, you can change if necessary). Press Save.
3. The delivered column is now enabled, enter the actual units received (if different) for the order.  If you prefer that another staff member checks the stock order before the units are entered, print a receiving document to use as a reference by selecting the Receiving document under the Reports button.
4. If items have been back-ordered with the supplier, enter the actual units you received in this order, and tick the Reorder box. Click the Reorder button to generate a new purchase for the remaining items.  
   
5. If too many units were received, confirm whether you will keep the units or call the supplier to issue a credit note for the items. (See the section Process a stock credit to learn how to credit a purchase).
6. Enter the unit cost (ex GST) for each item.  
7. Enter any discounts and freight costs relating to this order. The GST and Total cost will calculate automatically and should match the total invoiced from the supplier. 
8. Enter any references or notes relating to this order which will help you match the order to the supplier invoice. Once this order is posted, you will not be able to add any further information. 
9. Once you have finished, change the status to Completed and press Save. The Completed date will be set to the current date - this records the date that the transaction was posted to the ledger. The order status will automatically change to Posted provided the stock can be processed to the ledger without any errors.
10. If desired, click on the Print Labels button to print out labels based on the units in your order.
    
    

Stock summary screens

The Purchase/Credit, Adjustment & Transfer Summary screens (read-only) are found under the Stock menu. These screens display all your stock movements currently in progress and also any completed ones filed by the month completed. It also includes a reporting feature so you can view a breakdown of all stock movements.

To view a purchase/credit/adjustment or transfer in further detail, click the > to the left of the selected row which will open the relevant screen. Alternatively, you can start a new purchase/credit/adjustment or transfer from the screen by clicking the + to add a new row to the grid and open the relevant screen automatically.

When viewing previously completed purchase orders, if an item has * * around the name, it means that it has been made inactive since the purchase was completed. 

Transfer stock between locations

IBIS allows you to move stock around your business locations when required by completing a transfer. To complete a transfer, follow these steps:

1. Open the Transfers screen from the Stock menu.
2. Choose the location you would like to move stock from and transfer to from the droplist, then click Refresh.
   
3. The system will generate a unique Transfer ID. 
4. Enter the items to be transferred either by using Select Items and choosing from the available options (if you are choosing by Supplier, you can repeat the selection process as many times as required) or click the + button to add new rows directly into the grid and enter the PLU code followed by Enter or Tab.
5. Enter the units to transfer into the grid.
6. Fill in details at the bottom of the screen such as notes if required.
7. The transfer date will be set by default and will be updated to the current day when you save the transfer at status 'completed' as it reflects the date that the stock is actually posted to the ledger. 
8. When you are finished, change the status to Completed and press Save to update the stock ledger.
   
   

Process a stock credit

A Credit is used when you have received authorisation from a supplier to return goods. It is also used as a mechanism to reverse an incorrect purchase if you cannot delete it. Please note that you cannot complete a credit that will result in negative stock.

Follow these steps to complete a credit:

1. Open the Credit screen located under the Stock menu.

2. Enter the Supplier and Location and click Refresh to generate a credit ID.

3. You have 2 options for crediting:

   1. If you wish to credit a specific purchase, enter the Purchase ID when prompted, then click OK. IBIS will generate the credit ID, and populate the supplier and location fields as well as the grid with the items and costs from the original purchase. You can remove items by clicking the scissor icon at the top of the grid, or edit the units in the Credited column if you are not returning the full purchase. 

   2. For a credit not associated with a purchase, at the prompt, enter 0. Add items to your credit using the + button on the grid and enter PLU codes.

4. Enter a reference such as Damaged goods, Purchase correction, etc to identify the reason for the Credit.

5. In the note field, enter the credit authorisation from the supplier. 

6. The amount, subtotal (ex GST) and GST will be filled in automatically.

7. If applicable, enter the amount of Discount and Freight.

8. To process the credit, change to status to Completed. The credit date will be set by default, you can change if necessary. Press Save.

9. Print the Credit Note report from the Report button and send it to the supplier with the returned goods. 

Adjust stock units

If the stock has been damaged, stolen, written off, etc, you will need to process an adjustment to record this in the system and ensure you keep an accurate count of stock on hand.

1. Open the Adjustment screen under the Stock menu.
2. Select a Location from the droplist box and click Refresh. The Adjustment ID is generated automatically at this time by the Ibis system.
3. Enter the items to be adjusted manually by clicking + to add a new row to the grid, then entering a PLU code, or use the Select Items button. You will only be able to add active retail items into an adjustment. Note: Multiple Suppliers or groups can be selected by repeating the Select items process.
4. Enter units to adjust into the Adjust units column. To increase stock levels type a positive number (e.g. 2), to decrease stock levels type a negative (e.g. -2).
5. Fill in details at the bottom of the screen such as a note and select the type of adjustment from the list (note that neither of the two SYSTEM options should be used for manual adjustments).
6. To remove any rows which have no adjustments, or the current balance is 0, click the Functions button and select OR highlight the row and click the scissors to delete it.
7. The amount, units and cost (sum) will be filled in automatically.
8. The adjustment date will default to the date you first generated the adjustment and will be updated to the current date when you save the adjustment to the status 'completed' as it reflects the date that stock is processed to the ledger.
9. To process the adjustment change to status to Completed and press Save to post to the stock ledger.

Delete a purchase/credit/transfer or adjustment

You can only delete a stock purchase/credit/transfer or adjustment with the status is "New". 

1. Open the purchase/credit/transfer or adjustment. 
2. If it contains any items, remove the items by highlighting the rows and clicking the scissor icon in the grid.
3. Save your changes, then click the Close button.
4. You will be prompted to delete it. Click Yes to confirm.
   
   

If the purchase order has changed to status 'Ordered', you can change the status back to 'New' and resave. You cannot change the status of a purchase order once it has been set to delivered, completed or posted statuses however.

Consignment stock 

With consignment inventory, the producer of the stock retains ownership until the items are sold to the consumer or consumed in the business. Consignment items are set up the same way as normal retail items but they are associated with a Retail Supplier who has a retail type "Consignment" in the Contacts screen.

When you enter consignment items into your stock system, you create an Adjustment and your unit cost is left at $0.00 (provided you have not specified a unit cost price in the Retail items screen). This ensures that the consignment items are not inflating the COGS on your Stock Balance report.

Best-practice tips

Here are some practical tips to keep your stock management system running smoothly and avoid common issues: 

1. Avoid negative stock balances: Try not to let your stock go into the negative. Negative stock balances can confuse the system and require additional transactions to correct.
2. Enter all items: Ensure that every item you intend to sell is entered into the system. This includes generating a purchase for items acquired from other sources within your organization.
3. Complete purchases before display: Always enter purchases into the system before placing items on the shop floor for sale. This helps maintain accurate records.
4. Run stock reports after stocktake: After completing a stocktake, promptly run the stock balance report to ensure an accurate representation of stock value, especially for month-end reporting.
5. Use Barcode scanners and labels: Utilise barcode scanners and print labels from the system to ensure the correct items are sold. Train your staff to double-check sales to avoid mistakes.
6. Check purchase locations: When making a purchase, double-check that you are acquiring the item in the correct location in your system.
7. Manage giveaways: Keep track of items given away for prizes or donations. Make necessary adjustments in your system.
8. Consistent naming: Maintain a consistent naming convention for items, especially when dealing with different colours and sizes. This helps your staff verify they are selling the right item.
9. Inspect delivered stock: When receiving delivered stock, carefully check the items to ensure they match your order, particularly for similar items or variations like sizes and colours.
10. Promptly transfer stock: Move stock from one location to another in your system as soon as it's physically relocated.
11. Regular stocktakes: Conduct regular stocktakes, at least quarterly, to ensure that your system stock matches your actual stock. If a full stocktake is too much, consider doing it in subsets, like by supplier or item group. 
12. Review Stock Regularly:Keep a close eye on your stock:
    • Use the Weeks of supply indicator on the Stock balance report to determine if you are overstocked or understocked.
    • Assess where your capital is tied up; is it in items with good turnover or items that are not selling well?
    • Avoid purchasing large quantities of items unless you are confident they are strong sellers.

These tips are not strict rules but are intended to help you maintain a well-organized and efficient stock management system.

Manage negative stock warnings

If you have received a warning message when processing a stock transaction, choose the type of transaction from the list below to follow our best practice guidelines for how to resolve it. Once resolved, review our best-practice tips to try and avoid getting negative stock balances again.

• Purchase
• Credit
• Adjustment
• Transfer

Purchase

If you see an error like the screenshot below, it means you have tried to complete a purchase that includes one or more items with negative stock units. Once you have received this message, you have several options depending on the situation that caused the negative stock balance in the first place. 

Choose your situation from the following list:

I sold items without having purchased them into the system

If the items you sold came out of the purchase that you are trying to receive into the system, then you can ignore the warning message and save the purchase again to force it to process to the ledger. 

There are two possible outcomes, depending on whether the purchase unit cost is the same as the weighted average unit value * or different.

1. Purchase unit cost is the same as the current weighted average unit value
   In this case, the purchase will be processed to the ledger and your stock balance will be the purchase units less the negative stock. The weighted average unit value remains the same.
   
   
2. Purchase unit cost is different to the current weighted average unit value
   In this case, the negative stock units are reversed out of the ledger at the current weighted average unit value. Then the purchase is added at the purchase unit cost, which becomes the new weighted average unit value. Finally, the negative stock is added back in at the new weighted average unit value, resulting in a stock balance of purchase units less negative stock, and a new weighted average unit value that is the same as the purchase unit cost. Effectively we are ignoring the value of the negative stock because it isn't logical for negative stock to have a value.
   
   

* Weighted average unit value - calculated by dividing the costs of goods by the number of units available for sale.

I sold the wrong item

Sometimes your staff might sell an item under the wrong PLU code, particularly where there are similar items. For example, if you have two different sizes of t-shirts and a staff person has sold a small but entered it into the system as a large. The result is that you may end up with a negative stock of the large t-shirt, and too much stock of the small t-shirt. This would generally be corrected in a stocktake, but you may be receiving a purchase prior to stocktaking. In this case, the purchase you are receiving should not be reduced by the negative stock, so before you try completing the purchase again, you need to complete an adjustment to correct the stock units of the incorrect items - adjust the negative stock to 0 and increase the units of the other item by the same number of units.

Once you have processed the adjustment to set the correct units, you can then go back to your purchase and save it again. This time it will process to the ledger without any errors. The resulting stock balance of the item will be the full purchase units and a weighted average unit value that is the same as the purchase unit cost.

I purchased stock in the wrong location

If you have previously purchased stock in the wrong location and not realised it, your staff may sell items at another location which could then result in negative stock. In this situation, you need to complete a transfer of stock from the incorrect location to the correct location to address the negative stock balance.

Once you have completed the transfer, you can go back to your purchase and save it again. This time it will process to the ledger without any errors. The resulting stock balance of the item will be the full purchase units and a weighted average unit value that is the same as the purchase unit cost.

We have sold some stock that we didn't need to purchase

In some situations, you may acquire stock without having to purchase it. For example, your marketing department may give you some promotional items to sell, or goods may be donated for sale. If you had been selling items without generating a purchase then you would have ended up with negative stock units so when you subsequently try to purchase some of the items at a cost, the system gives you a warning about the negative stock. 

In this situation, you need to complete a purchase for the original number of units you acquired with a purchase cost of $0. When the system prompts you about the negative stock, choose to force the purchase through.

Once you have completed the purchase for the original units, you should then have a positive or zero stock balance which means you can then go and process your new purchase at the new stock value. Note that in this situation, if you still have some units in stock that you purchased at $0, the new weighted average unit value will be lower than your latest purchase cost because the stock at $0 is taken into consideration when calculating the average.

Credit

If you have received a negative stock warning while completing a credit, check if any PLU codes are mentioned in the warning. If so, you have several options for managing those PLU codes:

• Reduce the number of units being credited such that stock will not go negative
• Set the status of the credit back to New and remove the row using the scissors icon in the grid, then return the status of the credit to completed and click Save to process to the ledger
• Do an adjustment to correct the stock units if the system stock does not match your actual stock. Then re-save the credit to process it to the ledger.
• Delete the entire credit by setting the status back to New, removing all lines using the scissors icon in the grid then Save and Close the credit. You'll be prompted to delete it when you close the screen

If there are no PLU codes mentioned in the warning, you will need to check the Stock balance report for your selected supplier to work out which PLU codes are causing problems and then resolve as above.

Adjustment

If you've received a negative stock warning while completing an adjustment, check the New stock column for any negative numbers. Then do one of the following:

• change the New stock or Adjust units to result in a non-negative number in the New stock column
• remove the row(s) using the scissors icon in the grid

Then re-save the adjustment and it should process to the ledger.

Transfer

If you've received a negative stock warning while completing a transfer, check for rows where your Transfer units are either negative or greater than the units in the Stock from location column. Then do one of the following:

• change the Transfer units to be less than the Stock from location units
• remove the row(s) using the scissors icon in the grid

Then re-save the transfer and it should process to the ledger.

Re-value the average unit cost of a stock item

There are situations where you may need to adjust the current weighted average unit value of an item. E.g. you have completed a purchase before receiving a final invoice from the Supplier, and the unit cost showing on the invoice is now different to your original purchase, or your accounts department wants you to write down the value of your current stock as it has been sitting around for too long.

To revalue the weighted average cost of an item(s):

1. Open the Adjustments screen from the Stock menu, and click New.

2. Select a location and click Refresh to generate an Adjustment ID. Note that although you must select a location, your stock across all locations will be revalued to the new values you specify.

3. Add items to the adjustment by clicking the + in the grid menu or using the Select items button.

4. Select Stock revaluation from the Type dropdown.

5. For each item that needs to be revalued, type the required value into the Unit cost column.

6. Add a note to explain why you are doing the revaluation.

7. Set the status to Completed, then click Save (or leave it at New status if you want to come back and edit it again later).

You can check the current weighted average unit value of an item on the Stock ledger screen.