Tag Archives: inventory valuation

Shipping with SIMMS 2013

simms_shipping

Shipping may be the very epicenter of your company’s success or failure. SIMMS Inventory Management software provides users the capabilities to calculate shipping by a fixed percentage of the order total, by fixed item shipping costs, or allows for free shipping.

In some cases, users need shipping to be calculated by order total, weight, weight plus geographical zone or total plus geographical zone. In addition, real time rates can be implemented when employing shipping services such as UPS, FedEx, DHL, Canada Post or USPS.

All these options are easily created and applied using SIMMS.

A rough list of details you should check is as follows:

Preparing Shipment

– Check your contact information – write your details clearly on the boxes by using block letters.

– Check if you ship what you want where you want.

– Check your Required Forms.

– Decide on your shipping method.

– Include the declared value, along with your description of the content.

– List each commodity that you are shipping and provide a detailed description of each.

– Make a booking of a shipment service.

– Package your shipment securely.

– Purchase insurance for your high value items.

– Research your payment methods.

Sending Shipment

– Check for proper labeling of your boxes and bags.

– Match the shipping documents against the shipping labels to ensure correct shipping information.

– Provide a detailed list of the items in your shipment.

– Provide a detailed list with the value of your items.

– Provide a photocopy of your passport.

– Has your shipment been cleared through required Customs offices.

Destination

– Contact the airline cargo office or shipping line agent which has received your shipment.

– Go the customs office and show your passport and your copy of your airway bill.

– Pay any customs or clearance fees that are required.

– Pick up your shipment from the airline cargo office or from the nominated depot.

Contact KCSI today to learn more about how SIMMS can make your business’ shipping needs better. Email sales@kcsi.ca or visit www.simmssoftware.com to learn more.

Negative Inventory in SIMMS

simms_negativestock

Sometimes you may need to create sales orders while not having the necessary on hand quantities for the items. At this point you may employ the concept of Negative Stock, which enables the creation of those sales orders, lets you save them, and using backorders, you can receive the stock into the warehouse and replace the negative stock with actual items.

Businesses need always to avoid over-investment in stock that just occupies warehouse space and will eventually be used one day, but the larger concern occurs when stock that is needed immediately but which has yet to be ordered for our projects with intermediate deadlines of completion. If inventory exists where it is needed and when it is needed, greater customer satisfaction is the result — SIMMS Inventory Management software can help you achieve this goal.

In a perfect world, we should avoid negative balances of stock. However, you should have a backup plan as well as a plan for perfection. Most planning systems continue to work in batch mode (run nightly or on weekends) wherein you can eliminate problems by strategically resolving every incidence of negative balances. Execution systems, on the other hand, tend to run in real-time, and thus prevent the advantage of the batch systems. Execution systems experience less dramatic impact from negative stock than planning systems do. The wisest move is to not make reactionary adjustments to any of your timing-related negative balances. Instead, you should correct your location-level problems using a location transfer program whenever possible. Other negative balances should be rectified by entering offsetting transactions using the same software application in which you created the negative entries.

The constant need for order flow keeps warehouse managers on top of how many orders have been created and how many units of stock that will be needed. In these instances, purchase orders are placed with various vendors you already use, thus streamlining things by the reduction of the number of P/Os you create, and enabling the items placed on negative stock to be added onto existing P/Os before they are dispatched. SIMMS Inventory Management software incorporates the concept of negative stock, which can be one of the most useful concepts for many businesses to coordinate their stock orders. Visit www.simmssoftware.com or email sales@kcsi.ca to learn more.

Liquidation Value

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A company’s liquidation value can be calculated using various methods.

Theoretical formulas that can be used are as follows:

A) Basic:  (Total Assets – Total Liabilities)/Total # of Shares

B) Adjusting for Intangibles:  (Total Assets – Intangibles -Total Liabilities)/Total # of Shares

C) Adjusting for Intangibles and some sort of loss on book value of inventory and PPE:

(Total Assets – X*(PPE) – Y*(Inventory) – Intangibles -Total Liabilities)/Total # of Shares Where X equals impairment on PPE and Y equals impairment on Inventory.

D) Adjusting for everything above Plus loss on Accounts Receivable:

(Total Assets – X*[PPE] – Y*[Inventory] – Z*[Accounts Receivable] – Intangibles -Total Liabilities)/Total # of shares.

X equals impairment on PPE,

Y equals impairment on inventory

Z equals the % of Accounts Receivable that are uncollectible.

Example D contains the most comprehensive and most accurate formula available.

Absorption Costing

simms_absorptioncosting

Some of the direct costs associated with manufacturing a product include wages for workers physically manufacturing a product, the raw materials used in producing a product, and all of the overhead costs, such as all utility costs, used in producing a good. This method is known as Absorption Costing.

As opposed to the most-used method, Variable Costing, Absorption Costing treats operational overhead in a different way. Where Variable Costing only takes into account costs directly affected by changes in production volume, Absorption costing takes into account all direct and indirect costs of production. Variable Costing is typically used internally for budgeting and forecasting, while Absorption Costing is suited for external financial reporting.

Absorption costing includes anything that is a direct cost in producing a good as the cost base. This is contrasted with variable costing, in which fixed manufacturing costs are not absorbed by the product. A great many business leaders prefer absorption costing because fixed manufacturing costs provide future benefits.

It may the method worth trying in your business.

Stock Valuation with SIMMS 2012

With SIMMS 2012 Inventory Management software you can select the three standard valuation methods to apply to your stock:

1) First-in, First-out (FIFO): With FIFO, your cost of goods sold is based upon the cost of material bought earliest, while the cost of inventory is based upon the cost of material bought later in the year. This results in inventory being valued close to the item’s current replacement cost. During periods of inflation, using FIFO will result in the lowest estimate of cost of goods sold among the three methods, and simultaneously, the highest net income.

2) Last-in, First-out (LIFO): With LIFO, your cost of goods sold is based upon the cost of material bought towards the end of the period, resulting in costs that closely approximate current costs. The inventory, however, is valued on the basis of the cost of materials bought earlier in the year. During periods of inflation, using LIFO will result in the highest estimate of cost of goods sold among the three mehods, and simultaneously, the lowest net income.

3) Weighted Average: With the weighted average method, your inventory and cost of goods sold are based upon the average cost of all units bought during the period. When inventory turns over rapidly this method will more closely resemble FIFO than LIFO.

Comparatively. companies choose the LIFO approach for the tax benefits during periods of high inflation, and research suggests that businesses with the following characteristics are far more likely to select LIFO:  more variable inventory growth, rising prices for raw materials and labor, an absence of other tax loss carry forwards, and large size. When companies move from FIFO to LIFO in valuing inventory, there is usually a drop in net income and a concurrent increase in cash flows (due to tax savings). The reverse is true when businesses move from LIFO to FIFO.

Considering the cash flow and income effects of inventory valuation methods, comparison of businesses using different methods is imprecise. An adjustment that can be made for these differences: LIFO users specify in a footnote the difference in inventory valuation between FIFO and LIFO — referred to as the LIFO Reserve. This “margin” is then used to adjust the beginning and ending inventories, and subsequently the cost of goods sold and, thus, to restate income based upon FIFO valuation.

No one valuation method is perfect for every situation, but by knowing the characteristics of your company, you can choose a valuation method that best suits the situation. Combined with the fact that investors are not limited to just using one method, they will often perform several valuations to create a range of possible values or average all of the valuations into one.

To help choose the method that best suits your business, visit www.simmssoftware.com or email sales@kcsi.ca.

Supply Chain Management with SIMMS 2012

Supply Chain Management (SCM) coordinates all crucial activities within your supply chain, including the storage of raw/unfinished materials, provisions, administration and schedules of WIPS, provision, distributions of finished products, housing of raw materials, the warehousing and distribution of finished products, and the management and scheduling of works-in-progress (WIPs). Implementation, planning and control of all important steps can be set up in SIMMS 2012 Inventory Management software. Even with the best plans and the most stable supply chain, variations can occur.

Here are some tips on how you can prepare for the unexpected:

1) Be creative, allow wiggle room for delays and permit flexibility.

2) Have a contingency plan in place in case of interruptions in the flow of the stock.  That way, in an emergency situation a newer — possibly more devoted — delivery system may be possible on the fly, with the possible bonus of lower cost and more effective manner.

3) Consider custom delivery, if necessary. Sometimes it is the only alternative.

4) Keep everyone in the information loop. All must be in the loop on any issues or problems that may arise.

5) Know all aspects of your supply chain and devise a fallback for each step that can be called upon when they are needed.

6) Stay current on possible resource and natural (weather) concerns, and again, have a plan for what can be done if the normal supply system is f0rced to change.

Visit www.simmssoftware.com or email sales@kcsi.ca for ideas on how your stock supply system can be refined, modernized and more flexible while retaining its precision and scheduling.

The Goal of Improving Inventory Management

All business owners that deal with inventory must at some time adopt a philosophy toward the continuous improvement of its management. The improvement of warehouse operations will ultimately require the use of some plan for warehouse automation in order to keep up with constantly evolving business conditions, rather than simply relying on a quick solution and then hoping that their business conditions do not change.

Modernized systems will continue to improve and show positive trends year after year in terms of both lowering operational costs and improving levels of customer service. However, technology and automation is only one piece of the puzzle. Organizational and process-oriented capabilities are necessary to leverage technology implementations to improve performance. At any juncture, it is an opportune time to address inefficiencies and invest in agility and flexibility. Increased investment also helps, as does additional implementation as the business grows. Managers need to overcome fears about upfront costs of the evolving solutions and integration.

Focusing efforts to improve processes in coordination permit efforts to create leverage in order to decrease costs and become more competitive. Another field can explore options for implementing the process changes and new technology to increase the central control of processes in the warehouse. You can also create more efficient and cost-effective order fulfillment processes that can provide greater support for business growth in the future. Ultimately you achieve the goal of creating more value for your customers and increasing your advance separation from your competition.

For a comprehensive software package that will help you implement the improvements and changes that are described above, take a look at SIMMS 2012 Inventory Management software by visiting www.simmssoftware.com or email sales@kcsi.ca for more information.

Mastering Time with SIMMS 2012

Work in any business needs goals for the the overall improvement of the company if the firm is to have a future. While taking daily steps to improve commerce in general, we need our tools to suit our tasks and provide us with more time to enjoy the work and achieve more. Such is true of our software packages. They need to provide us with instant information and must permit us to enter in all the relevant data to keep our records completely up-to-date.

Making work easy can be produced to some degree ergonomically, the main impact of our software must result from features and tools. If you make accurate inventory management a high priority for your business but don’t want to devote hours and hours to toward that goal, visit www.simmssoftware.com today and have a quick look at SIMMS 2012 Inventory Management solution to get the very tool you’ve been missing all this time to make work as enjoyable as play.

Accounting, stock management, scheduling, shipping, receiving, manufacturing, work projects, administration, customer and item tracking — SIMMS handles them all in a feature-rich, robust complete package that all departments of your company can use in tandem to keep you ahead of the competition. Email KCSI today for more information at sales@kcsi.ca.

SIMMS Helps Fight Retail Crime

In today’s economic climate, retails stores are experiencing an old challenge at an alarmingly large rate. Theft at retail stores has undergone a dramatic increase in the last five years. The following video feature hosted by Brian Williams of MSNBC details this new risk to the survival of many of today’s merchants:

http://video.msnbc.msn.com/nightly-news/47773480#47773480

With these new and present challenges to profit margins and stock safety, businesses require cutting edge technology to help them know where all of their stock is at all times. SIMMS 2012 Inventory Software permits a quick and easy end-of-day running inventory so that your company will know the day-end totals, and thus also the opening counts for the next day.

Contact KCSI at sales@kcsi.ca for more information or check out more information on SIMMS 2012 software at www.simmssoftware.com.

 

What’s New in SIMMS

In the following video, you can see the features that have been added over the last year to SIMMS Inventory Management software:

http://www.kornyk.com/VIDEO_PRESENTATION-kcsi/swf/SIMMS8_changes_demo/SIMMS8_changes_demo.htm

A new look…new features…a fresh approach to the tasks you have to get done.

Check out SIMMS 2012 and learn quickly that you’ve found the one program that does all you need.