Special Order Inventory Processing Software

EBMS Inventory Software
Special Order Inventory Processing

The Eagle Business Management System Special Orders module is used to record and manage special order items within inventory in a manner different that standard stock items. This feature facilitates an alternative to entering a part number each time a special order item is purchased. Many businesses sell inventory parts that are not stocked but rather are ordered from the vendor specifically for a customer. EBMS allows the user to record and track these special order items within inventory in a similar way as a stock item, but does not require the tedious labor of creating unique inventory item codes for each special order item.

Features

SCENARIO: A service station may need to order parts to repair a specific vehicle but they do not intend to stock, and may never order, the part again. An inventory item labeled Special Order Ford Parts would be created with and id of SO-FORD. This inventory item is used for the thousands of different special order parts used within many different models of Ford vehicles. The Special Order feature connects the cost entered into the purchase order to the sale price on the sales order. For example, the special order inventory item described above-Special Order Ford Parts-may include the following items:
- 24in Fan belt - Cost of $25.00
  Rear passenger door window - Cost of $459.0
  Driver door hinge pin - Cost of $2.75
Note that the costs of these items vary greatly. The system cannot use the FIFO (First in, First out) or LIFO methods as used in standard inventory items since each cost is connected to the specific part. It is important that the proper cost (2.75) is calculated when the sales invoice is processed selling the pin for $3.95 creating a gross profit of $1.20. Both the inventory value and the profit calculations for the invoice would be drastically wrong if the cost of the door window ($459.00) would have been used as the cost instead of the door hinge cost ($2.75).
The Special Order Item Module is useful in the following situations:
- Perpetual inventory is required but the purchased source must be user selected rather than using FIFO or LIFO.
  The value of the purchased items varies so the proper cost must be manually associated to the sale.
  The user does not sell products in a FIFO method and wishes to maintain the available balance amounts for each purchase source (Expense Invoice).