Setting up your site if you have no stock recorded in your computer

Owned by John Nairn
Last updated: Dec 17, 2018
3 min read

Overview

Many sites converting over to Readysell have no or poor stock on hand figures on their old system. Readysell has a standard procedure for handling this situation.

Readysell can be setup to not trust your stock on hand initially. Then over time you can do stocktakes, fix locations and move to a trusted stock on hand position after you go live.

Procedure

Readysell will turn off automatic warehousing, turn on automatic stock adjustments on all your workstations and set stock allocation off for your system. The result will be:

  • Optionally, you may want us to bring all your products over with zero stock on hand. This is the best approach if your stock is very unreliable. No stock on hand is better than rubbish stock on hand.
  • Automatic stock adjustments need to be turned on for every workstation in your business. So Readysell will make the required stock adjustments allowing you to sell stock even if the system shows you do not have any on hand. See: Purchase receipting to support automatic stock adjustments and Reversing an auto stock adjustment using purchase receipt.
  • You will need to press the ship button on sale orders to create sale shipments ("picking slips"). See: Creating a picking slip for a sale shipment
  • Do not click the pick button on sale shipments. Doing so will clear locations on your sale shipments. As the system will try to match existing stock on hand in locations to the lines on your sale shipment. See: Creating a picking slip for a sale shipment
  • Sale back orders will need to be released manually. See: Manually Releasing Sales Backorders that have been Receipted to Invoice where Stock Allocation is OFF
  • Stock allocation must be turned off on your system. Readysell will try to allocate stock if stock allocation is on. Since there is no stock recorded on the system, this will cause the wrong results. All sale orders will behave like the supply time on the sale order line was "ignore" for stock allocation purposes. The system will print every order line on every picking slip. See: Effects of supply type on sale order line allocations and unallocated sale shipments
  • Do a location only stocktake after your stage 2 final product data conversion and before you go live. See: Testing your location only stocktake
  • Do a stocktake, probably a rolling stocktake, as soon as you can once your system is Running on Readysell. Then turn of automatic stock adjustments and turn on stock allocation once you have finished your stocktake.See: Stocktakes 
  • You will have more work do do after conversion as a result. See "looking to the future" below.
  • Once your receipting is running well and your stocktake of the whole business is just about complete. You should untick the "automatic stock adjustments" checkbox for all workstations. You will then need to enter any required stock adjustments manually if you sell stock that is not yet in the computer.
  • Automatic stock adjustments may result in the stock quantity adjustment account in the general ledger having a large balance. This is the value of all of the stock that had to be created in the system by automatic or other stock adjustments so you could sell stock when no stock on hand was in the system. You should talk to your accountant about how to handle this balance. Readysell can't directly advise you on this. As we are not a provider of accounting advice and also because your accountant can take into account tax and other business implications that may need to be considered.

 Looking to the future

You will have a number of mini-projects to implement after you go live with Readysell:

  • A stocktake to get your stock on hand in place. See: Stocktakes . Normally we wait at least a few days for this. As any errors in stock/receipting are more likely to happen in the first few days as you get used to the system. Also in the first few days you want to focus on selling stock and purchasing stock, not on stocktakes etc.
  • Go live with purchase runs to close the stock control loop by building purchase orders from Readysell. See Purchase Runs
  • Turn on stock allocation and automatic warehousing. See: Understanding automatic warehousing