ERPAG 5.1

Order step quantity & Minimum order quantity

step order quantity

1. Introduction

When purchasing (or manufacturing) an item, it happens that we are conditioned, so we cannot purchase (or produce) the exact quantity we need, but we must settle with a larger quantity.

One example is printing. For economic reasons, print suppliers will always require a minimum number of copies. For example. if we buy business cards the minimum sale is 1000 pcs, if we want 1300 pcs the printer will require us to order 1500 pcs, because when printing, the machine prints out 500 pcs on the paper width.

Another example is if we have a machine that always "produces" e.g. 8 pcs. So even if we need 5 pcs the machine will produce 3 more. The excess will remain in stock, so if needed, that amount will be used up as well.

The third example is when we buy from suppliers in boxes (box = 16 pcs) and we sell individually. The vendor will not deliver 1.1875 boxes to us if we need 19 pcs, but two whole boxes.

There are a lot of examples, but for setup, we only need two parameters:
  •  Minimum order quantity
Indicates the minimum amount that can be purchased or ordered. For example. 1000 pcs is a minimum.
  •  Order step quantity
What is the "step" of procurement (or production)? For example. When purchased it can be purchased at 16 pcs each.
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2. Setup

Setup is for each item separately in the Fulfillment section of a product.

step quantity setup

In our example, we will open two items, and our parameters will be the same (min order qt 1000, order step qt 250) and we will create a Sales Order with 800 pcs and 2012 pcs.

ERPAG sales order step quantity

The fulfillment list will display the committed quantity of products on the created Sales Order.

fulfillment step quantity

(For more info regarding ERPAG Fulfillment functionality check out our blog: https://www.erpag.com/news/fulfillment-backorders)

But, when we form a Purchase Order, the quantities will be corrected according to parameters we previously set up:

purchase order step quantity

The first item will have 1000 pcs (minimum order quantity), while the second item will have 2250 pcs (order step quantity 250).
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3. Working with the second unit of measure

Order step quantity is extremely helpful when purchasing in Second UOM.

order quantity second uom

In our example, we will set up that the Item (Copper 3/8) has a second UOM > a "roll" of 5m. We will set up this same value in the "Order step quantity" field.

order step quantity second UOM

If we have a committed quantity of 12 in the fulfillment list, the generated Purchase Order will be for 3 "rolls" (eg. 15m).

purchase order step quantity second uom

With this option, we will achieve that our purchase is always rounded by the second UOM.
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4. Working with Bill Of Materials (BOM)

You can set up these parameters even in products that are based on Bill Of Materials (BOM).

step quantity BOM based products

In our example, we will set up the minimum order quantity of 10 and step quantity of 5.

Manufacturing > fulfillment option works identically like the fulfillment in the purchasing module. The committed quantity will automatically be increased when the Work Order is formed.

When a work order (based on - bill of materials) is manually created, the quantity will be automatically be corrected when you enter that data.

work order step quantity manual entry

In our example, if we enter 12 in the "Quantity" field, ERPAG will correct that number to 15.
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2020. ERPAG Inc
ERPAG 5.1

Custom Fields (upgraded)

custom fields

1. Introduction

Custom fields have proven to be very user-friendly among ERPAG users.

Customers were given the possibility to easily adapt to specific needs in an easy way.

At the end of 2019, we decided to raise that useful option to a higher level.

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2. Setup

The setup is now specifically separated in the Administration section of ERPAG.

ERPAG custom fields

The list of documents where it is possible to add a custom field is already completed.

document list custom fields

By activating the document you are entering the preview, or, the option settings (in order to change the setting you have to enter the EDIT mode of the document - click on the EDIT button).
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3. Document Header

It is currently possible to have up to 15 custom fields per document.

The custom field types are:
  • Inactive - As the name suggests, if checked, the field is excluded from the entry or view;
  • Free text - Free text entry;
  • List - When entering a document, one of the options from the list must be selected. Possible values are predefined in the List - Options column;
custom fields list option
  • Amount/Price - Numerical data entry. "Amount" is usually displayed with 2 decimal places, while the number of decimal places for "Price" is taken from the Localization setup;
  • Date/Date and time - Date entry or date and time entry.

The Default - Value column is a value that is automatically populated when a new document is added. While "Read Only" indicates that the data cannot be changed.

For example, we can name the custom field "Year", enter "default value" to be "2020" and set it to read-only.

custom field read only

And now, upon creating a new customer, the custom field will automatically be populated with a value we defined.

custom field customer default value

While entering default - value for the types "Amount", "Price", "Date" and "Date and time" you have to enter them in the same format as your localization is set up.

For example. If your date format is Day - Month - Year you should enter (31/01/2020).

One small hidden option - if you enter "NOW" in the default - value for date values, the current date/time will be entered in the field.

custom field default value now

And the default value when a new customer is created:

customer custom field default value
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4. Document items

Some documents, such as Sales Orders, have another custom field level - on the item level.

custom field item level

custom field item level

Number "1" indicates custom fields on the document header, while number "2" indicates custom fields on the item level.
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5. Copy from field

Some data is recorded in the ERPAG according to the document system. For example, the entered Sales order remains in the database recorded as it was entered. If, for example, we change the name of the item it will not automatically change in the entered documents (the changes are not applied retroactively).

In order to optimize resources, basic data (SKU, Description, UOM, etc.) is recorded in the document. If additional information needs to be recorded, we can use custom filed with the option "Copy from field".

In our example, we will copy the "shelf" setting from the item.

custom fields copy from field

We will enter the new custom field named "Item Shelf" in the document items and select "copy from field" to be "Item - Shelf".

And as we enter the document, the value from the item setting will be automatically copied.

custom fields copy from

Note: If on the item we have custom fields in the selection menu for the "copy from field" option, those fields will be offered as well.
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6. Work order

A work order is a little bit specific, and it has 4 types of custom fields.

work order custom fields

It has to have more types as each section can have different logic. For example, an output item has a need for additional info (color, size, finish, etc.) while the input items and work operations don't. And vice versa.
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2020. ERPAG Inc
ERPAG 5.1

KIT item synchronization with different webshops

Can I sync KIT items (assemblies) with my webshop (WooCommerce, Square, Shopify or Magento)? What do I need to do in order to enable the sync?

One of the item types in ERPAG is KIT, which is a group of items sold together. KIT items can also be called Set, Assembly, Grouped product, etc. The simplest example of this type of item is a New Year's present that traders themselves make on the Christmas eve and New Year holidays from the products they already have in stock. Instructions on how to create a KIT item in ERPAG are explained here https://learn.erpag.com/project/create-new-product-1/untitled-4/types/kit.

The question is, can ERPAG synchronize KIT items with a webshop? The answer is YES, however, it is necessary to know beforehand the features of the webshop itself. Some webshops naturally support KIT items and ERPAG works seamlessly with them. For others who do not have this capability, ERPAG sees such an item as a standard Item, whether or not a special extension may be installed to simulate KIT items.

Webshops that do not support KIT items are:
  • Shopify
  • Square
while webshops that support KIT items are:
  • WooCommerce
woo commerce












  • Magento
magento












So, if you use Shopify or Square, ERPAG is not able to detect whether an item is a KIT or not because such information does not exist in the webshop. If you use an extension that simulates KIT items, ERPAG is unable to handle such information because each individual extension may have a different simulation method.

In this case, working with KIT items between ERPAG and the webshop is still possible but only if a KIT has already been created in Shopify or Square and that a KIT item has been created in ERPAG where SKUs are on both sides identical.

Webshops like WooCommerce and Magento do not need any special setup.

Create individual items and mark them to be synchronized with the webshop. Then create a KIT item, define which individual items are part of it, and mark it to be synced to the webshop (instructions on integrating ERPAG with webshops can be found on this link https://learn.erpag.com/project/integration).

KIT item in ERPAG

 kit item in erpag

After creating a KIT item, it's necessary to sync it with your webshop.

erpag webshop sync

When the syncing process is complete, the new KIT items can be seen in each webshop individually:

Shopify
shopify kit

Square
square kit

WooCommerce
woocommerce kit

woocommerce kit

Magento
magento kit

magento kit
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2019. ERPAG Inc
ERPAG 5.1

Dropshipping in ERPAG

dropshipping in ERPAG

Does ERPAG support drop shipping? How do I handle dropshipping in ERPAG? Can a customer return a drop shipped item?

1. Introduction

The concept of dropshipping at first glance seems very simple, e.g. A customer places an order through my webshop and I forward his order to my dropshipper who will take care of everything from that moment on.

Is it that simple in practice?

If you answer yes, you are free to skip this blog.

For those who answer this question with a No, in this blog post, we will explain how dropshipping is managed through ERPAG. This blog is focused on practical application in ERPAG, if you need general dropshipping information you can find it on our other blog: https://blog.erpag.com/2019/02/what-is-dropshipping.html
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2. Product type

There is a specific product type in ERPAG, which creates items on which we apply the dropshipping concept.

create dropship product

Creating a dropship product is quite easy - we just select "dropship product" from the drop-down menu, when creating a new product in our products and services list.

fulfillment drop shipping

The setup is almost identical to a regular Product, but because of its specificity, “Dropship product” has the following limits:

• No on hand or quantity in stock (as the items are not received to our stock but are sent directly to the customer by the supplier)
• No stock card
• No reserved quantity
• They can not have serial or lot numbers (as we do not have access to this supplier information)
• Stock adjustment, stocktaking or set quantity with this type is not possible
• It is not possible to select such an item in the transfer document between two warehouses
• Output or input item in Work Order (except for contracting)
• Other options which include manipulation of items in stock

Note:

In practice, sometimes, a regular product (eg we had it in stock) must become a "drop ship product" (no longer in stock, delivery will be directly from the supplier) or vice versa. The change process is simple, just change the "backorder" type.

change fulfillment type

Just make sure that the quantity in stock is "0" and that all sales and purchases are completed.
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3. Sales Order

For a better explanation, we will make an example - Sales Order where we will have a regular product, service and "drop ship product" (in ERPAG it is possible to have different types of items on a single Sales order).

erpag sales order

The "icon" of a  drop-ship item is different for easier visual recognition.


Since we don't stock drop-ship items, its quantity will always be missing.

dropship item no quantity

So we have to order it from our supplier.
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4. Ordering - Backorder

Ordering missing items in ERPAG is done through the "Fulfillment". For more information regarding the sole concept and process, you can find on our blog: https://blog.erpag.com/2018/10/fulfillment-backorders.html

fulfillment purchase order

In our case, we will have 2 items for ordering.

erpag fulfillment

After activating the bulk action, 2 purchase orders will be generated. One for a regular product, and one for the dropship product.
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5. Purchase order

dropship purchase order

The purchase order that has the "drop ship" type has an additional section that is populated with the customer's address to which the supplier (dropshipper) will ship the items.

Note: ERPAG will try to sum the purchase orders, if the customer's delivery address is the same.

On the info button of Committed Quantity, we can see for which Sales Order this item is committed.

committed quantity

Also, in Sales Order, we can see the Purchase Order relation.

sales order purchase order link

We send the Purchase Order formed like this to our supplier (dropshipper) who will send these items to our customer.

Confirmation of whether the products were sent (or delivered) to the customer, we can obtain from the supplier or from the customer that received the products. So there are two ways to complete the process, i.e. we record that our customer has become the "owner" of the goods. The method of implementation depends on the company policy itself and the logical flow.
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6. The logical flow

A logical flow represents a series of related events until the closure of the deal (in this case, sales). There are several different flows in ERPAG:

• Sales Order -> Advance Payment -> Packing -> Shipping -> Invoice
• Sales Order -> Packing -> Shipping -> Invoice -> Payment
• Sales Order -> Invoice -> Payment -> Packing -> Shipping

With a regular product, packing is the moment when items "leave our stock" (in accounting, the Cost of Goods Sold is formed) and a packing list is created.

With Drop Ship product, we have the following flows when a supplier provides us with status information:

• Sales Order -> Advance Payment -> Sent by supplier -> Invoice
• Sales Order -> Sent by supplier -> Invoice -> Payment
• Saled Order -> Invoice -> Payment -> Sent by supplier

Or when we receive status information from a customer:

• Sales Order -> Advance Payment -> Received by customer -> Invoice
• Sales Order -> Received by customer -> Invoice -> Payment
• Sales Order -> Invoice -> Payment -> Received by customer

Sent by the supplier and received by customer are moments logically identical to the packing of the regular product, ie the moment when the customer becomes the owner of the products.
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7. Received by customer

If our customer informs us that the items were delivered (or sent with a high possibility of being delivered), in ERPAG we will record it through the option "Received by customer".

received by customer

The "drop shipping" packing list will be formed.

dropshipping packing list

At that same moment, "Goods received note" is also formed in the corresponding Purchase Order.

goods received note

With this option, we virtually "packed" the Sales Order, and "received" a Purchase Order.
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7. Sent by supplier

Another approach is when the supplier (dropshipper) informs us that he has sent the items to our customer. This option can also work when the supplier accepts our order with the assumption that they will also deliver the goods.

dropship item sent by supplier

Just like in our previous example, two documents are formed:
  • Goods received note in the Purchase Order
goods received note in PO
  • Packing list (Drop Shipping) in the Sales Order
sales order packing list

Results in both cases are identical.
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9. Completing process in our example

For the Purchase Order (type: dropshipping) we will create a Supplier Invoice and record the payment.

supplier invoice

record payment purchase order

The document status is now "completed/paid".

In our example, we also have another Purchase Order (for a regular item), where we will "receive" the items in order to increase the quantity in our stock, then we will create a supplier invoice and record a payment.

receive items to stock

Now both Purchase Orders have the "completed" status.

completed purchase order

Our Sales Order currently has the next statuses: Partially packed/Available quantity/Partially shipped/Not invoiced

sales order statuses

We will activate it and do pack > ship > invoice > record payment.

pack sales order

invoice sales order

Now our Sales Orde3r is completed as well.

completed sales order
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10. Internal accounting system

ERPAG has an automated internal accounting system whose primary goal is management reporting.

NOTE: ERPAG is not intended for official accounting, for this purpose use integrations with QuickBooks Online or Xero.

More information on our blogs:

You can see an overview of the auto-generated accounting journal voucher on each document by activating the option on the right (journal voucher).

journal vouchers

The Purchase Order journal voucher:

purchase order journal voucher

And Sales Order journal voucher:

sales order journal voucher

Here we see that the drop ship product is posted to a separate "Goods on Transit" account. Other postings are just like regular items.

The cost of goods sold is formed by the real price ie. takes the price from the purchase order.
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11. Customer return

With regular items, the return of products from the customer is not a problem for us because the items are shipped to our warehouse and that's it. There are several logical cases when returning a drop ship product, but we will explain the most common case.
  • Customer returns the items directly to our supplier (dropshipper)
return dropship item

In our example, we will have three returning options (Products, Services, Dropship products). We will select "Dropship products" and a new form for entering items and quantity for returning will appear (in negative quantities).

return dropship item

A new document is formed with a "Returned" status.

returned drop ship item

You probably notice that the payment status is "overpaid". As our customer paid us the complete amount, it's necessary that we return him the paid amount and record that in ERPAG. We will do that through the "payment" option, and we will enter this amount as negative.

record payment customer return

The Sales Order status now has a paid status.

paid returned sales order

Note: Customer returns and void documents have the same number as the original.

"Drop ship products" do not reach our warehouse, but the supplier sends them directly to our customers so that automatically forms a return to the supplier.

dropship item return to supplier

return to supplier

And thus, the items are returned to our supplier.
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2019. ERPAG Inc