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GP Inventory module

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Category: Microsoft Dynamics GP (Great Plains)
Forum Name: GP - General
Forum Discription: All other Great Plains (GP) Topics
Printed Date: November 15 2019 at 8:17am

Topic: GP Inventory module
Posted By: new2gpdynamics
Subject: GP Inventory module
Date Posted: November 06 2006 at 9:09pm

Being fairly new to GP, I have a quick question. The company I work for uses GP for accounting, purchasing, and receiving. We are about to start using the inventory module in regards to keeping track of the quantity. The only problem I have understanding is that we are not a business. We do not sell these items to customers. We are a small lab office with three locations, but our patients are charged thru another patient accounting system and the inventory we use is in the course of business. For example, we purchase blood collection tubes as an inventory item and receive it,  and pay the vendor's invoice. But now the company wants to show inventory levels at all three locations and use three different SITE ID locations in GP. I am trying to understand and explain to the other people in the office that because we do not use the SOP module, how is GP going to show the inventory levels correct at any given hour or day when the lab tech takes 2-3 tubes from the bin each day? Can anyone explain this to me. As I understand it, GP uses the SITE ID as if a company who, say, has 2 different warehouses, NORTH and SOUTH and stores the inventory for resale in those warehouses. When a company sells its wiget from the warehouse, the SOP module will "reduce" the qty from the inventory item card. How does this get accomplished if there is no sale for those comanies that do not actually sell products?

Thank you .


Posted By: JohndeKock
Date Posted: November 06 2006 at 11:53pm
Hi New2
You have raised a few fundamental questions that are important for your BUSINESS (and you are - even if you are not-for profit etc). to answer.  I will attempt to give you some guidance.
1.  The GP inventory module is strong and you can certainly use it for your purposes - even without SOP. Assuming that you have no way to raise an order or invoice - you can always set up GP to use an Adjustment transaction type to reduce (or increase) inventory.
2.  There are a number of item types in Inventory.  Not all need to be 'normal' inventory.  You can set up Miscellaneous Charges, Service Fees and Flat Fess as item types.
3.  The real trick for you though is to create an interface with your patient accounting system so that your charges are imported into Great Plains to reduce inventory.  This can be done through eConnect or Integration Manager.
The situation you have described CAN be achieved quite successfully, but I would really question the wisdom of the underlying structure.  You really need the system to make business and intuitive sense and not build a monster where it is not needed.
Have fun,

Posted By: new2gpdynamics
Date Posted: November 13 2006 at 8:11pm

Thank you for the info. I still have a major question. If I could take a minute to explain our layout, this might help answer my question.

We purchase items from vendors and store them in a supply closet. Each closet is located in each respective dept/floor. Our GP is setup so that those depts are assigned as a Site ID. For example, 1st FL Lab has site LAB001, 2nd FL LAB is assigned LAB002, and so on.

We also have GL codes that go with the dept. Example. LAB001-1027-6100, LAB0002-1027-6100, etc.

When we generate a PO, we use the Site ID and GL code for that location (dept).

When we receipt the purchase receipts we receive them under that GL code and Site ID. So now it looks like we have 3EA of Product A (On Hand Qtys) in LAB001, etc.

What I don't understand is how to reduce the inventory when a lab tech walks over to the closet and uses (consumes) 2EA for the day.

It appears to me that we have our Site IDs setup as dept locations. In the retail environment, GP considers these similar to warehouses or storage bins.

In order for us to "reduce" our On Hand Quantities, do we have to setup our depts as Customers also and create SOPs with zero pricing


Is there a way to create an inventory or bin transfer transaction to a Site ID that would be considered a consumed account where we dont want to just transfer qtys from one site ID to another while retaining the cost value. (ideally, we want to show it as consumed, no longer on the books, as if we "sold" it, but we dont sell to our depts.

I just dont understand the logic of how to make this work with out setting up our depts as Customers and sell at zero price.

Any ideas on how to explain this to me?



Posted By: JohndeKock
Date Posted: November 13 2006 at 11:53pm
Hi SC,
I hope that I understand this correctly.  What you seem to be describing is 'consumable inventory' that you do not sell nor do you particularly want to cost it into any other process.  But you DO want to track what is happening with it and who is consuming the inventory.  (And you do not want to invest any large amount of time, effort or money to achieve this because it is really just nuisance value).
I suggest the following.
Set up the Inventory Offset account (on item maintenance) to the account that is to reflect the consumption.  The setup of each site will allow you to set up an account segment for the relevant Department.
Next, use Transactions>Inventory>Adjustment to enter a negative quantity = quantity consumed.  This will redice the quantity on hand in that location and will create a GL transaction that reduces inventory value and increases the value in the offset account (which you are using to show consumption).
The advantage of doing it this way is thaat the Adjustment transaction is quick and simple and achieves what you want to.  The disadvantage is that it may look a bit clunky!.
Have fun.

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