Copyright (c) 1983 Compumax Associates,Inc. All rights reserved. MICROINV User Manual The COMPUMAX business application programs are computer programs that keep records and compute transactions for business use. They are designed for people who have little familiarity with com- puters and only a basic knowledge of accounting rules. This is possible because the programs themselves are self-explanatory, telling you ex- actly what is needed at every step. After you have become acquainted with this program, you might want to save even more time and frustration using also the other available modules of the MICROBIZ programs, described in this Manual. LIMITATION OF LIABILITIES AND DISCLAIMER OF WARRANTIES Compumax Associates, Inc. has dedicated great care in designing, developing,coding and publishing its programs. It, however, makes no express or implied warranties of any kind with regard to performance or fitness of purpose of any product. In no event shall Compumax Associates, Inc. be liable for inci- dental or consequential damages in connection with or arising out of the distribution or use of its products. Title and ownership shall at all times remain with Compumax Associates, Inc. COMPUMAX P.O. BOX 61956, SUNNYVALE CA 94086 CHAPTER 1: MICROINV Inventory Control The optimum inventory in stock should always be suf- ficient to produce the end product, but not in excess of the required amount. Excessive inventory ties up your capital, consumes space, and costs money in taxes, insurance, and handling. You need an inven- tory control system to keep detailed account of what you have, what you need, and how much it costs. A good inventory control system can do much more than just keep track of inventory stock and value. A manual system can perform the simple listkeeping functions needed for the basic task. A good inventory control system, however, also helps you determine many other things, such as the materials costs for each job you do, the quantity and valuation of the inventory stock at a given time, and the quantities ordered but not received. It can break down the inventory into components (for example, by frequency of usage), advise you in what quantities to order materials, and help you calculate materials costs for tax and financial statements. How MICROINV Can Help MICROINV is a series of computer programs that carry out the inventory control functions for a small business. MICROINV keeps updated records of inventory transactions and produces reports on stock status, job costs, and year-to-date usage of materials. It also advises you on economic order quantities and provides you with accurate figures to evaluate the inventory for tax and financial statements. It sorts data, performs calculations, and produces reports by manipulating the data that you enter in response to inquiries from the program. MICROINV is accurate, effective, and easy to use, saving you time and freeing personnel for other tasks. Restart Option Allows you to delete the accumulated totals in the Master File to begin recordkeeping for a new fiscal year. The Master File retains all other information. For Users of the CompuMax MICROPERS Package: MICROINV, used with MICROPERS, the CompuMax Payroll/Personnel recordkeeping package, gives you a complete job cost control system. For Users of the CompuMax MICROLEDGER Package: MICROINV offers an additional bonus to those who also use the CompuMax MICROLEDGER system. MICROINV creates Journal File records identical in format to the Journal File records in MICROLEDGER. You can then post these transaction records into the Ledger's Chart of Accounts. In a similar fashion, the other CompuMax packages (MICROPAY, MICROREC, and MICROPERS) can communicate with the MICROLEDGER programs. The MICROLEDGER-MICROPAY- MICROREC-MICROINV- MICROPERS combination provides you with an effective and powerful software package. For Users of the CompuMax ORDER ENTRY Package: If you also use the ORDER ENTRY package, you may transfer all relevant information in ORDER ENTRY that you need to create the MICROINV files. ORDER ENTRY is interactive with MICROPAY and MICROREC as well. A full set of the CompuMax packages can greatly enhance your accounting capabilities. Using This Manual First read through the manual to Chapter 3, Getting Started. Be sure you know how to bring the computer up and get it operating (read the operator's manual if you haven't done so yet). Then follow the step-by-step instructions in Chapter 3 to enter data. MICROINV Overview The run begins with a selection of programs, often called a "menu." You may return to this general menu from any program by selecting the option Run Another Program. By selecting O (zero) in this menu you can sign off the system. MICROINV's general menu contains six programs for Inventory Control. They are: PROGRAM 1 -- INVENTORY DATA ENTRY PROGRAM 2 -- INVENTORY TRANSACTIONS PROGRAM 3 -- FILE LISTINGS PROGRAM 4 -- INVENTORY REPORTS PROGRAM 5 -- JOB COST REPORT/MATERIALS PROGRAM 6 -- ECONOMIC ORDER QUANTITIES 0 -- QUIT You run Program 1 to enter the data into the files. To run a program, you select the program you want by typing its number and then responding to the questions the program asks you. You first enter the inventory stock data into the master file, INVMASTER. The program tells you what information it requires. When you issue or receive stock you enter the information (also wing Program l) into the Transaction File, INVFIL. After every data entry session you should run the listing program (Program 3) to check the data for correctness and completeness. After you have checked the INVFIL data you should make backup files for both INVFIL and INVMASTER. Then you carry out the transfer of data from INVFIL into INVMASTER by running Program 2 to journalize and post the transactions. When this is completed you may request the Stock Status Report (Program 4, Option 41), the ABC Analysis (Program 4, Option 42), the Job Cost Report (Program 4), or the EOQ Report (Program 6). If you request these reports before you post the INVFIL trans- actions you do not receive accurate information. The MICROINV Files: INVMASTER, INVFIL, and JOUFIL Two files, INVFIL and INVMASTER, are essential to the operation of MICROINV. The third file is the Journal file called JOUFIL. This file facilitates transfer of data into the general ledger, if you use the CompuMax MICROLEDGER package. Otherwise you may disregard JOUFIL. INVMASTER INVMASTER is the Master File for the inventory data. You enter the information requested by the data entry program, and INVMASTER organizes and stores the data for each item of the inventory. INVFIL When you make a subsequent transaction affecting one of these items in INVMASTER, you enter the transac- tion data (which describes quantities received or issued, job of issue, and unit price) into INVFIL. After carefully checking and verifying INVFlL's listing you accumulate (or "post") the inventory transactions to INVMASTER. This operation updates the information in INVMASTER and simultaneously clears INVFIL for future entries. Thus INVFIL may be considered a clearing house for temporary information on its way to becoming a permanent part of INVMASTER. Other important parts of the system are the listing and reporting routines, which allow you to see the information contained in these files. You may generate a variety of reports that provide informa- tion on such factors as quantity on hand or on order, current price, average cost and last-in-first-out cost (LIFO), year-to-date jobs, the ABC Analysis, and recommendations for economic order quantities. CHAPTER 2: MICROINV PROGRAM DESCRIPTIONS Look again at the selection of programs in MICROINV: PROGRAM 1 -- INVENTORY DATA ENTRY PROGRAM 2 -- INVENTORY TRANSACTIONS PROGRAM 3 -- FILE LISTINGS PROGRAM 4 -- INVENTORY REPORTS PROGRAM 5 -- JOB COST REPORT/MATERIALS PROGRAM 6 -- ECONOMIC ORDER QUANTITIES O -- QUIT Each program in MICROINV has its own menu--a selection of options from which you may choose. Following is a description of what each option does and the data (if any) it requires you to enter. PROGRAM 1 -- INVENTORY DATA ENTRY Option 11 -- Initialize Master File When you use a new data diskette for the first time you must select this option. The program asks you for a title (your company name) and a start date. This information is part of the "header" record for INVMASTER. To create two (or more) separate inventory control systems, i.e., for separate divisions or separate companies, you must use two (or more) data diskette Option 12 -- Add Master Records Use this option to enter information about items in the inventory stock, both when you are setting up the new INVMASTER file and when you begin dealing with a new item (not already established in INVMASTER). The program asks you for the data elements listed below. You need not use all elements; just enter zero and press RETURN after the question, and the program goes on to the next inquiry. Data Required for Adding Accounts to INVMASTER: ITEM # This is the KEY number identifying a stock item. It may contain digits and other characters. It is essential that the spelling always be the same. DESCRIPTION Of the inventory items. QUANTITY ON HAND Amount you have in stock, entered in the units in which it is purchased (pounds, tons, each, etc.). QUANTITY ON ORDER Listed in the units in which it is purchased (pounds, ton, rolls, each, etc.). CURRENT PRICE Per unit (pound, ton, roll, each, etc.). UNITS Pounds, tons, rolls, each, etc. REORDER POINT Critical level at which the item must be reordered. SAFETY STOCK Stock that would not be used under normal conditions but is kept in reserve in case of unexpected demand or delayed order shipments. VENDOR NAME Option 13 -- Restart Master File for the New Year Used to delete the accumulated totals in the Master File to start a new year's work. All other information is retained for the next year. Option 14 -- Initialize Transaction File Enter title and ending date for the period into the header. The Transaction File may cover any period you choose (typically one month). option 15 -- Transaction Records Use this option to enter transaction information to INVFIL. Data entered must concern inventory stock items whose numbers have already been entered into INVMASTER. The program asks you for the data elements shown below: Data Required for Adding Accounts to INVFIL ITEM # Must be the same as the number corresponding to this item in INVMASTER. QUANTITY This number should be "+" if describing a "receive" transaction and "-" if describing an "issue" transaction. UNIT PRICE Value per unit used in the Master File. JOB CLASSIFICATION CODE This should describe a job to which an issued item has been allocated. The system calculates a dollar value for the entire job using this information. Do not enter a code if this is a "receive" rather than an "issue" transaction. DEBITOR ACCOUNT NUMBER Enter the number of the account in MICROLEDGER you wish to debit. This number is likely to be different for "issue" and "receive" transactions. you must enter this account number if you are planning to use JOUFIL. Otherwise enter a zero. CREDITOR ACCOUNT NUMBER Enter the number of the account in MICROLEDGER you wish to credit. This number is likely to be different for "issue" and "receive" transactions. You must enter this account number if you are planning to use JOUFIL. Otherwise enter a zero. Option 16 -- Update Records This option allows you to make changes in entries in either INVFIL or INVMASTER. Option 17 -- Initialize JOUFIL Use this option to enter information into the header to create JOUFIL. JOUFIL is the Journal File you need to transcribe the Journal transactions directly into MICROLEDGER. If you are not a MICROLEDGER user you may disregard this file. Option 18 -- Run Another Program Choose this option to gain access to another program. PROGRAM 2 -- INVENTORY TRANSACTIONS Option 21 -- Journalize Transactions and Post to Inventory Master File This option posts the inventory transactions to INVMASTER and at the same time creates the journal transaction listing necessary to update MICROLEDGER. After you run Option 21, INVMASTER is current and INVFIL cleared. Option 22 -- Run Another Program PROGRAM 3 -- FILE LISTING Option 31 - List Master File This option allows you to list the entire Master File (INVMASTER). Option 32 -- List Transaction File This option allows you to list the entire Transaction File (INVFIL). Option 33 -- List Range of Records in Master File Enter the first and last record number. MICROINV lists that range of INVMASTER records. By entering the same record number as first and last, you may list one individual record. Option 34 -- List Range of Records in Transaction File Enter the first and last record numbers, and MICROINV lists that range of INVFIL records. By entering the same record number as first and last, you may list one individual record. Option 35 -- Run Another Program PROGRAM 4 -- STOCK STATUS REPORT Option 41 -- Stock Status Report Running this option generates the standard inventory stock report and valuation for each item, and also determines the cumulative value for all items on hand. Option 42 -- ABC Analysis This option breaks down the inventory stock into three groups separated by frequency of usage, and also reports on the total value of the stock on hand in each group. Option 43 -- Run Another Program PROGRAM 5 -- JOB COST REPORT Option 51 -- Run Job Cost Report This program produces a report that provides the allocation of all materials used year-to-date by job code. By employing this program jointly with the program in MICROPERS which provides the Job Cost Report/Labor you can have a complete job cost control system. Option 52 -- Run Another Program PROGRAM 6 -- ECONOMIC ORDER QUANTITY This program provides a statement of the quantity in which it is most economical for you to order. The program requests the information below: Data Required for Computing the E.O.Q. * COST OF PLACING AN ORDER What it costs you in time, labor and supplies to place an order. EXPECTED ANNUAL DEMAND ANNUAL CARRYING COST What it costs you in invested capital, space, insurance, taxes, labor, transportation, etc., to carry the inventory. This is sometimes calculated at 20-25% of the average annual inventory value. * If you or your accountant know these figures, Program 6 can compute the E.O.Q. for you. CHAPTER 3: GETTING STARTED You are almost ready to enter your own accounts and run the programs. Practice running the data diskette containing the sample data. Now get ready to enter your own inventory data and set up your files. How to Run the Programs Load the program and data diskettes into the disk drives according to your computer system's instructions. Issue the commands to run the pro- grams, and MICROINV takes over and tells you what to do at every step. All information is fed into or taken out of the system using the keyboard to respond to questions displayed by the program. Answer all questions, unless instructed otherwise, by typing the Arabic number of the operation desired. (Remember, the Arabic number one is not the lower case "l" and the number zero is NOT the letter "0".) If you make a mistake, use the BACKSPACE arrow or key to correct the error. After you answer a question or enter new data, press RETURN to proceed to the next step. When a new diskette is used for the first time, it must be FORMATTED according to the instructions in the operating system documentation. This operation should not be confused with the routine called "INITIALIZE" in the CompuMax application programs. When the diskette is used for the first time, FORMATTING must be done before INITIALIZE is possible. STEP BY STEP: The Sequence of Running the Programs in MICROINV STEP 1 Run Program 1, Option 11, to Initialize the Master File. Enter your company name and starting date in the format requested by the program, using two digits each for month, day, and year. STEP 2 Run Option 12 of Program 1 to add records to INVMASTER. Enter the data requested--if you don't know the information or do not wish to use a particular data element (such as Debitor Account Number, if you are not a MICROLEDGER user) just enter zero and press RETURN. The program goes on to the next question. STEP 3 Run Program 3, Option 31, to list the Master File and check it for accuracy and completeness. If you have made errors or left out anything, run Program 1, Option 16, to remedy this. STEP 4 Initialize the Transaction File by running Program 1, Option 14. Enter your company name and the period's end date. STEP 5 Run Option 15 to enter the transactions into INVFIL, when you have either issued or received inventory stock. You enter a job class code here only if this is an "issue" transaction. STEP 6 Run Program 3, Option 32, to list the Transaction File and check it for accuracy. Run Program 1, Option 16, to correct any errors. STEP 7 When you have verified that the data is accurate, it is good practice to make a backup copy of the files in case you discover errors later. Then you are able to recover the original information. You may do this in one of two ways: 1) Use the computer system's instructions for copying files to the same or another diskette (the user manual tells you if the system can do this). 2) Copy the entire data diskette onto another diskette (see the operator's manual for instructions). Both of these methods are easy to use and save you much frustration in the long run. STEP 8 Run Program 2, Option 21, to journalize the transactions (the computer formats them so MICROLEDGER can read them) and post them to the Master File. The Transaction File is now cleared for future entries. STEP 9 You may now run Program 3, Option 31, to list INVMASTER again. You see that the Master File has been updated with the transaction data. STEP 10 Now that the transactions have been posted, you may: a) Run Program 4 to produce the Stock Status Report (Option 41) or the ABC Analysis (Option 42) AND/OR b) Run Program 5 to produce the Job Cost Report/ Materials AND/OR c) Run Program 6 to generate the recommended Economic Order Quantities for any item.