The optional Special Orders module of EBMS is used primarily to manufacture products or create assemblies to distribute or sell. The amount of inventory items are increased using the manufacturing process rather than by purchasing items through an expense invoice. This module should be used in the following situations:
The Eagle Business Management System (EBMS) Special Orders option is used to record and manage special order items within inventory in a manner different than 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.
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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 an 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 $ 459.00
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).
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The Special Order item module is useful in the following situations:
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).
Associating the purchase order or lot to a specific sales invoice.
Special Order items should be initiated or created within the sales order and then linked to a purchase order. Items that are created within the purchase order first and then linked to the sales order are normally handled as lots. The special order system within EBMS can be used to manage lots as well as special orders although the following sections are focused on managing special orders. Contact an EBMS support representative to discuss implementing lots within EBMS.
Review the Creating a Special Order Inventory item section for details on creating an item classified as a special order.
Review the Entering Special Order Items within a Sales Order for details on creating a special order item from a sales order when the item is sold. This section will also describe a convenient feature that allows the user to connect the item to a purchase order when the sales order is created. Reference the Purchasing Special Order Items section for alternative ways to connect the special order item recorded on a sales order to a purchase order. Special order history is maintained within EBMS by associating the special order item listed on the sales order to the purchase order line within the expense invoice. Review the Tracking Special Order History section for details.