Total NetSuite Inventory Visibility

00:05Okay. Um well, hello everyone and welcome to the last of our fall training series sessions. Um we are currently building out our winter series. So we are excited to be sharing with that that with you guys shortly. But thank you for joining us on this last session for our fall series. My name is Brick Gipus and I'm part of the sales and marketing team here at Luxent and I'm excited to kick things off with you guys today. I am also excited to introduce Randy Hart, our director of manage managed services team here, who is joining us on today's session to lead us through all things inventory here.

00:42With over 15 years of NetSuite experience and firsthand experience as a former NetSuite user, Randy truly brings a wealth of practical insights and experience that will make today's training session both informative and actionable. All right, let's kick things off by walking through today's agenda. All right, so I'm first going to walk you guys through a little bit of some of our upcoming training sessions. Um, it's just going to be a quick preview. Um then Randy will walk us through some of the core inventory tools and workflows, take us away to a live demonstration, um come back with some key takeaways, and then we'll open it up for questions and answers.

01:22If you have questions as the webinar is going on, please put them in the question and answer panel. We will do our best to answer them um as they come through or at the end of our session today. All right. Well, I wanted to quickly touch a little bit on the goal of Lux University. It's something that's built to make learning NetSuite a little bit simpler and more accessible and practical for everyday use. Uh Lux University is about helping your team feel confident and empowered in the NetSuite system.

01:54Whether you're a new user or you're just kind of looking to take your skills to the next level, uh these sessions are designed around real use cases. So, we take a lot of the the information that we see coming through um with questions and things like that that come through on our side and kind of build out these training sessions based on that. So, we also really want this program to kind of grow with you. So, if there is a topic that you'd love to see covered in a future training session, please drop it in the chat or put it into the survey at the end of our session today and we'd love to hear from you.

02:26All of those that do fill out the survey will be entered into a raffle to win a $50 Amazon gift card. So, be sure to fill out that survey. And with that, I am going to pass it over to Randy here um to take you through what you really want to see. Randy, take it away. >> Yeah. Hey, everybody. So, today we're going to go through a couple of things with inventory. So on the Luxie screen that Brooke had, right, we're basically splitting our holiday inventory series into two sessions. Today is going to go through some inventory visibility, some basics about moving it around, adjusting it, counting it, um, and then some best practices and tips and tricks for making sure that your visibility is as good as it could get, right?

03:14because making, you know, understanding what it is, where it is, how much value is there, um what's happening with it are all very important um are all very important to the core inventory functionalities. Uh then we're going to have a second session here in a week or two that's going to talk a little bit more focused on demand planning allocation. Um and you know making sure that we're going to when we see these things that we're looking at today make sure that we understand how to get and allocate that inventory to match our orders, match our demand.

03:49Um, I'm going to try not to get too lost during the demo, but as most of you who've played with inventory at NetSuite know, this is a massive, massive topic, massive core of the product. So, I'll try not to run down any rabbit holes, but uh, no promises. So, let's move on and let's talk about sort of some of the core inventory tools and workflows that we're going to be looking at today. So, Brooke, if you wouldn't mind. Right. So I'm focusing today's session around two workflows right visibility and management.

04:24Um as we just talked a little bit management is you know not including demand planning and you know on-time fulfillments things like that. Uh but you know visibility is talking about showing you like what inventory reports are in the system out of the box. So there are a lot of them. Some clients use some some clients don't. Some people have written so many safe searches and customizations that sort of forget that the basic reports do have their own utility. So, we're going to go through a couple of those.

04:58Uh we're going to talk a little bit about some custom searches and reports. Uh I'm going to give you guys some examples of things that I've done in the past. um and talk through a little bit of how we can look at uh existing things and customize them as needed to deal with better inventory visibility. And then most of you who know me know I'm kind of obsessed with like dashboards that are really beneficial drive functionality, drive what we want to do dayto-day. So, we're going to start with the dashboard KPIs, different scorecards, because there's actually a couple of different pre-built KPI scorecards that could be very helpful with inventory for those of you who maybe haven't played with the scorecards a lot um and don't understand that we could get a lot of utility out of pre-built ones.

05:50We're going to we're going to touch on that for a minute. Then, we're going to go to inventory management. And the inventory management workflow, you know, we say workflow, but it's really a bunch of sort of what we're going to talk about today is like a couple of separate tasks related to inventory management. So, we're going to go through inventory counting um a bit. Many of you who've been on NetSuite uh for a long time like I have uh know that historically NetSuite really only had sort of one tool which is physical inventory worksheet, but inventory counting is now you know there's a better process there.

06:25So, making sure everybody knows kind of where that is, how to get help, look at setting that up. Uh, then we're going to talk about specifically inventory adjustments and transfers. We're not really going to go into how to do these, but I'm kind of obsessed with making sure people understand there's two tools for adjustments, two tools for transfers. And I feel like one of the big gaps that people think about is they pick one during implementation and then sort of never look at the other ones or understand the utility or the function of when they're helpful.

06:58So, we're just going to touch base on adjustments and transfers because both of those things are really important once we talk about demand planning and getting inventory in, making sure it's in the right place and and we have our counts. And then for those people who have friends on the accounting team, making sure that they're not furious with us at the end of the day. All right, so that being said, I'm going to stop sharing my camera so I have some better internet and um uh we're going to go ahead and screen share.

07:34All right, so let's talk about where we are starting. Um, many of you have your own customized roles. Uh, for today, since I'm in, you know, the NetSuite stereo for manufacturing demo environment, I picked the warehouse manager role. Uh, the warehouse manager role in my mind does a very good job uh of being the the right starting point for inventory specific and inventory management. Um, this role is set up by NetSuite. It does have a little bit more than what we're talking about today because the goal of the warehouse manager and operator is not just to keep track of our inventory internally, but it's also, you know, dealing with bins, lot expiration dates, fulfillments.

08:25So, there's some stuff on here we won't kind of be touching, but I'll do my best to talk through it. So, as a lot of you know, um I like to set up my dashboards, right, with my reminders, my searches and KPIs in the center and shortcut groups on the right hand side. So, couple of things here, right? Let's start with our reminders. So, as always, reminders should help drive daily action. Um for our purposes today, there's a couple things we're going to look at, right? The prime ones are going to be cycle counts to approve and items to count.

09:02Uh part of what we can, you know, what I recommend doing is building other safe searches to help drive reminders. For example, um if quant, you know, a safe search where quantity is below XYZ, right? That shows up in, you know, we can build a custom search right now with this environment. It shows up right here as items to order. So again, when we go through demand planning, you'll see what feeds into this, but actionable reminders that are related to your inventory management processes. That's what you want to have over here.

09:40When we look at KPIs, the KPIs for this particular role are set up for some orders, some fulfillments, but you know the key piece of this KPI, right, is inventory. Now this is inventory value but understanding this is kind of one of those core inventory visibility things is what is the value of my current inventory. So anyone who's dealing with managing inventory knows that this is really like the the a big deal right how much onhand asset do I have so accounting cares about this sea level accounts cares about this your inventory you know managers care about this because it's dollar value in the warehouse so always make sure that when I am setting these up I always recommend that I that the inventory shows up in the KPI Okay.

10:38Now, the warehouse manager shortcut group. A lot of times what I'll do is I'll have a bunch of custom shortcuts here. But when it comes to inventory management, I really like the warehouse manager navigation shortcut group. So, this is a portlet from NetSuite that you can throw in. Uh, it has, you know, several different of the, you know, NetSuite out of the box, what they think you want to see and like accounts payable, sales, purchasing. I like the warehouse manager navigation shortcut because it's going to show you a lot of things that you want for your inventory dayto-day.

11:13Uh, mark orders, pickpack, shipped, fulfillment, receive. Um, it's got your trans, it's got your transactions. So, if we're moving things right between warehouses, if we're changing allocation from one order to another, if we're doing cycle counts or approving cycle counts, this is something that we're going to touch base on a little later, but it's all right here. You also have your count sheet, right, that you can print immediately. You have item labels to print and then some of our reports, our inventory status reports, our turnover, our back orders.

11:49Again, these are very important and we'll touch base on them in just a second. So, let's talk about the inventory KPI scorecard. So, as I mentioned, a lot of people don't leverage to my opinion KPI scorecards to the fullest extent of what you can do with them. So, I like the inventory KPI scorecard pretty close to ASIS because it has a lot of the information that we need to understand of tracking and making the best use of our in-house inventory.

12:27So, our value, our COGS, um, and then inventory turnover and days on hand reporting. These are really important from a overall I don't quite want to say executive but management level reporting of inventory because these can drive a lot of action right looking at our inventory turnover to date right being able to click on it seeing our cogs versus inventory value for this month to date last month to date looking at our days inventory on hand average right so how many days in the period over the cogs inventory value to our inventory turn gives us about how long inventory is sitting before we are taking action on it.

13:19Right? So making sure that our inventory on hand values don't get too high helps us determine what kind of marketing, what kind of sales we need to do, are there any promotions we need to run. If we have inventory that expires pretty frequently, then understanding about our average days on hand for inventory becomes even more important. As you can see, we have lots 16 lots nearing expiration dates. If we have inventory that, you know, sort of is sitting in our inventory for 120, 300 days, right?

13:55Like a year, things like that. then we are not making the best use out of our lots. We probably have a lot of item uh a lot of inventory that we have to write off uh adjustments and inventory work that we have to do which takes people you know the more we're dealing internally with adjusting inventory and moving inventory around and writing off inventory that's going to take away time from general other warehouse management activities like receiving and fulfilling making sure our orders get to customers on time.

14:32So, these are all really important pieces of making sure that we're making the best use of our inventory and we're allowing our resources enough time to do the jobs that actually drive our organization value. When it comes to the KPI scorecards, NetSuite has a couple of things, right? one, you have the option to sort of choose the NetSuite out ofthebox KPI scorecards. So the one that we have is the inventory scorecard.

15:10We can look at other pre-built NetSuite ones like manufacturing operations which is going to change all the metrics in here. Change our changes our days on hand, right? but adds in some things, number of orders, deal size. So, this is a great starting point, but what I want people to understand and take away from this is every organization that I've worked with has their own math, we'll call it, that they do around inventory.

15:50I'm just going to say around inventory period. Some clients want how frequently are we fulfilling? Some clients, and you're probably on the phone, want how much is our fill? So, if we are not fulfilling full quantities, what is our fill rates? Back order math. Um, you can actually add your own custom scape KPI scorecards. So, it's not here. But there are ways to build your own KPI scorecards to look at.

16:28And if you want help building these are what's called financial ratios, we are certainly able to help you with that. We can walk you through it, guide you through it. If I went into the full build of, you know, this is how to create a financial ratio, this is how to add it, I'd kind of blow out the rest of our demo time. But if it's something where you say, "Hey, I like this inventory one. There's actually three other formulas that we use." Well, we can build it and put it on a scorecard. You can look into doing it yourselves.

17:01I just find that a lot of people don't know because of the fact that it's not here in setup. They don't know where to go to build the financial ratios to add their own. So really flexible, definitely allows you to do things that make the KPI scorecard matter more for your organization. And if you need help dealing with that, reach out to me, send an email to, you know, whoever here you work with, and we'd be happy to spend 20 minutes with you walking through or helping you do some of that. All right.

17:36So, we just talked about custom financial ratios and the fact that we can do that, but most people also want custom sort of statistics that make life better for not just the inventory managers, but for anyone in the organization who's leveraging inventory at the same time. One of the ones that I really like to build is this available to sell safe search. And this is an example of leveraging custom searches to help you make better use of what you have on hand. A lot of times what happens is when you start getting really complex with the system, you're adding WMS tools, full MRP tool, like the full MRP tool, um the full supply chain management tool, setting up supply allocations for commitments, you start losing a little bit of visibility into what you can actually sell from a total view.

18:32You can go into a sales order. As you're putting in the sales order, it will show you you're available on hand for that particular order and are there any committed etc. But that's not really beneficial to the rest of the organization, right? Let's if we think about customer service or sales where they want to know, hey, I have a client calling in. I need a specific type of inventory item. Do I have any that I can sell? So building a quick little available to sell inventory style report will show you, okay, this is my item name.

19:05This is how many I have on hand. This is how many I have coming in. This is how many are on a sales order. So how many do I actually have that I can sell? And where this why this becomes important is because it gives you a real quick way to have conversations to look at a specific item to look at a specific location to make inventory judgments for customer satisfaction. And at the end of the day, the whole point of inventory is to sell it to customers, make them happy, and make a profit.

19:43So understanding at any given time how many are total on sales orders, right? So this is for those clients that have advanced supply chain allocation where you have committed versus picked where you have allocated versus unallocated. This will just tell you with this kind of search, how many do you have on a sales order? Because what get starts getting really complicated with inventory management is, oh, I have to allocate inventory here or deallocate it from here and move it to this order because of order priority.

20:14And so having custom save searches that can sort of tell us this is the amount that's on order quickly is very beneficial to fast ordering and better customer satisfaction. All right. So, those are kind of two examples of how we can leverage some of NetSuite's out of the box searching and reporting and scorecard customization to get us more visibility into the things that matter specifically for our organization. So, let's turn our attention to what NetSuite has out of the box.

20:52That's helpful. Now, in the warehouse manager role, we have some little report snapshots, our inventory trends, our order trends, quantity sold. These are kind of helpful from an executive level, but they're not the day-to-day stuff. They're not the way to answer day-to-day questions. So, some of the day-to-day questions we might get asked is, "Hey, talk to me about my inventory turnover." So, what we can do is come in here to our inventory reports and look at all of these standard reports.

21:29Inventory profitability snapshot, physical inventory worksheet, inventory turnover. Right? To answer the question, we got asked, hey, what's my inventory turnover this month? Okay, cool. So, I'm going to rightclick. I'm going to open this. And NetSuite's going to give me out of the box an inventory turnover report by item type and by item. So what we can see here is we have some costs, some values. Uh funny enough, a client actually pointed out to me earlier today that uh if you end up with zeros, it doesn't necessarily mean that this report is wrong.

22:10What it means is that we've had no COGS impacting transactions in this current time period. So this AHI300, we haven't fulfilled any because that's where COGS hits in NetSuite. We haven't actually fulfilled any. So our turnover rate on this is nothing because we've not fulfilled any. You can see for our bomb 100, we've fulfilled about $600 worth. Still have about 20,000. So our turnover rate is, you know, 03. So this is a really quick and easy way. Again, it's an out-of-the-box report.

22:49You don't have to customize anything and it's great visibility for you into your inventory turns. This will can help drive decision- making because we can check and see like, oh, hey, we have a high value of inventory here for a specific item and we've had no COGS this month, so maybe I need to dive into this item and see when was the last time I actually fulfilled this item. Am I carrying stock for this? Is it on reorder points and we're not actually fulfilling any of them? Do I need to encourage the sales team to sell it?

23:20Oh, that's a fun little error. Do I need to encourage my sales team to sell it? Do I need to maybe stop ordering them? Change my demand cycles so that I have less of them? And that all becomes important to maximizing our inventory. And it comes back to again visibility, making sure that we're leveraging everything the system can provide to give us this information. Some other frequent reports is inventory profitability. So inventory profitability, you can run just my inventory profitability or I can run it by specific people depending on the role I have.

24:07Now this is a warehouse manager role. They don't have a lot of, you know, show me customer by item, but we do have sales by item. So we could run our inventory profitability to show us total cost, total revenue, percent of revenue. And we can do sales by item to give us the number of an item sold, and the total revenue. So, we can leverage both of these reports to help us truly define what are our best items, what items do we need to stock more of, what items do we need to stock less of from a client-f facing value perspective instead of just a turnover perspective.

24:50And the reason I show and talk about all three of these reports quickly backtoback is that most of the organizations I've worked with over my 15 years in NetSuite don't just make decisions off of one piece of data. So understanding where these different pieces are, what you can do with it, and how quickly you can get to highlevel reports. You look at your turn, your profit, and your sales quantity. Great. This gives me the data I need to make a plan for my inventory. And at the end of the day, that visibility and that planning is what's going to drive our growth.

25:29It's going to allow us to, you know, not have inventory sit forever. It's going to help us drive ordering and sales conversations and decisions, which maximizes the value of our inventory, maximizes our margins, and limits the amount of manual adjustment work that our people have to do. All right, that is kind of what I had planned to talk about for inventory reporting. Uh, what I would recommend here takeaway wise is spend a little time looking at your inventory reports.

26:08So, if you've never played with some of these reports, like your activity detail report or you've never looked at the inventory turnover report, spend a little time, go look at those reports, see if it's data you can use, see if it's data that makes any sense or if it's something you want to start tracking, right? Leverage what NetSuite can can do to be creative to give you information on how you want to go do things. All right. So, let's talk about inventory adjustments versus inventory transfers or sorry, inventory adjustments and inventory transfers.

26:46I'm going to pop into an administrator role for this particular discussion just because it's a little easier to quickly get to the different transactions. So, in NetSuite, you have two things for inventory adjustments. You have an in adjust inventory and an adjust inventory worksheet. And I think I accidentally clicked instead of right clicking. So we're going to rightclick. Now a lot of people as I mentioned will pick one in implementation say this is the way I'm doing this. whereas whereas looking at them and using them for their specific purposes can help simplify certain processes.

27:32So an inventory adjustment by itself is very similar to a journal entry where you basically go through and you say for a specific item this is the on hand this is the current value I want to adjust it by a specific quantity either up or down this is the new quantity here's my you know inventory detail go ahead and do this journal entry and you can specif specify exactly, you know, the adjustment account, the time frame, and you're telling it to adjust it up or adjust it down.

28:11And so this gives you sort of a little bit more control in a journal entry style thing, item by item where you can do where it it doesn't just override your inventory with new information, right? It gives you that journal entry. The inventory adjustment worksheet is helpful when we're making a lot of changes and we don't want that full journal entry data. So for this, I'm going to actually show you a little bit of what it looks like.

28:49So, if I choose United States and San Francisco, this is going to populate with all of my items. And you can see it's sort of simplified that line level entry that we have where you're going to be basically be able to you're not adjusting the quantity up or down. You're flat changing the quantity. So, this becomes helpful when we're doing, you know, rebuilds, maybe an acquisition where we have a bunch of new inventory that we want to create the items, we're not receiving it, we want to just add a quantity there and a value there.

29:31Um, this allows you to override your costing and say this is the current value of my inventory. Whereas in the inventory adjustment uh again I'm just going to call it journal entry when we adjust it we set a unit cost not a total cost. So I can either keep my current inventory costing or I can say hey this inventory adjustment we're changing the per item cost. Whereas for the inventory worksheet you're just flat stating the value of your inventory.

30:12So again, this becomes more helpful when we are dealing with inventory in bulk, setting value, not necessarily needing the full costing detail that we would get with an individual inventory adjustment. Most clients end up using the inventory adjustment more specifically because once you get a lot of inventory in your system, you don't necessarily want to be going in there and all the time completely changing the total value of your inventory. You want it to adjust by a unit cost.

30:46Um, so in terms of how frequently do these get used, the recommendation I have is to leverage the inventory adjustment far more than the adjust inventory worksheet so that you have a more accurate tracking at the unit cost level as opposed to the inventory worksheet where you're basically having to reset the total value of all of the inventory in that thing. So again, inventory adjustment lets you set quantity plus or minus and set a unit cost and net will calculate the new quantity. The inventory worksheet, you manually set the total amount of quantity you have and the total value that it's worth.

31:35Okay, so that's my little spiel on the inventory adjustments. So, let's talk about transfers. The next piece of the inventory management flow that we're talking about is inventory transfers. So, when I come in here to transactions, inventory, again, we have a couple of different options. We have uh a transfer inventory and we have an enter a transfer order. Now, similar to the inventory adjustments, at first glance, these look fairly similar.

32:18The inven the they're both transaction screens. They both look similar to, you know, any other transaction you see in NetSuite, right? Units, quantity, fulfillment information. If we look at the transfer order again, it looks relatively the same, but it has more information. So, when do we use each of these? We use each of these when we have specific different kinds of movement going on. The inventory transfer is really good for within location or within short location movement.

33:07So, I'm picking something up and I'm carrying it from, you know, this warehouse. I load up my car. I take it to the warehouse next door. It's a 10-minute process. I don't need to have any sort of accounting tracking. my assets literally just moving from spot A to spot B. A transfer order adds in basically an accounting step of receipt and fulfillment. And a lot of people go, well, why do I need that extra stuff? Well, let's say that it takes 10 days to transfer inventory from a Boston location to a San Francisco location, that inventory is not necessarily on hand.

33:58So, if we have an order come in that maybe requires two-day shipping, we may not want that inventory to show up as available in that location. we may not h because we we want to be able to sell it and fulfill it within two days because that's what the client paid for. So if we only have one and there's 10 more coming from Boston, right? We need to know when that's going to be there. An inventory transfer will say the second we do it, oh it went from Boston to San Francisco, it's technically available to be fulfilled today when in reality it's not.

34:34So that's the operational reason. The accounting reason is that as you go through a transfer order, you actually have a different GL impact. So, I'm going to pull up a transfer order for us to take a look at. And when you are moving it from location A to location B with a transfer order, you actually move the inventory asset out of the sort of general inventory asset account and it goes into an inventory and transit account. So your accounting folks may want to know this more because it could be insured differently.

35:12It can show up differently on balance sheet reports, right? It just sort of depends on it just sort of depends on what your internal accounting policies are. But if I look at a fulfillment and receipt because the transfer order allows me to do you know I'm fulfilling it which is when I basically put it on the truck from Boston and when I receive it in San Francisco that's when it counts in inventory. So it the fulfillment will take it out of inventory and if we look at the GL impact we will see it goes from the inventory finished good asset account to the inventory in transit account and then when we receive it it goes from our inventory and transit to our finished good.

36:04So it adds an operational process as well as an accounting process. And this is a very simple transfer order where it has a shipping cost. You can add shipping, you can add handling, right? And this is going to help you keep track of your costs for inventory movement outside of just incorporating that cost randomly with a journal entry into a COGS account or however else your accounting team tracks it. Doing a transfer order allows you to incorporate that shipping cost. And you know, if we were dealing with a landed cost and moving it from one warehouse to the other, putting the shipping on here, tracking it for landed costs, the fulfillment and the receipt would allow us to allocate that landed cost to the item.

36:53Again, to make sure that the costs of our inventory and the pricing that we're doing all make sense from an inventory accounting standpoint. Our inventory transfer has none of that. There's no dollar value associated. There's no shipping weight associated. There's, you know, basically just, like I said, picking the box up and putting it somewhere else. Now, some organizations are small enough where they really don't, you know, will expense shipping costs. We don't need it to go through back to the individual cost of the item.

37:28We don't need it to adjust our pricing, right? We don't do the transfer until we receive the goods in San Francisco. Okay. then we can still use an inventory transfer. But understanding that the inventory transfer order gives us all of this availability to thoroughly and accurately monitor the process, monitor our goods in transit and allocate the cost of that extra shipping, right? Making sure we leverage that if we want that level of visibility. Understanding the difference becomes important. And again, you know, some folks come in and they've were just shown inventory transfers during implementation and that's what they use and then we point, you know, I point out, hey, you can do all this other GL impact and the timing on when goods are available to sell, right?

38:16It actually ends up a lot of organizations switch to a transfer order process as you get more complex and you end up wanting better costs and better inventory visibility. So, a little bit more work because there's multiple transactions, but our visibility and our accounting basically goes to a higher level in my opinion. All right, the last part of what we're going to talk about today is inventory counting. Now, inventory counting, there's an awful lot here. It's it could probably be a 40 45 minute demo by itself.

38:51So, I'm going to hit this at a high level. The reason I kind of want to talk about this is because for those of us who've been on NetSuite for 15 years, it we we really didn't have much. You you had a physical inventory worksheet and that was available only by coming to reports, inventory items. Whoop, sorry about that. Reports, inventory items, physical inventory worksheet. And what you used to have to do was print this, write in your physical count, and then look at the system and do an either an inventory adjustment or an adjustment worksheet.

39:38And that was counting inventory in NetSuite for a very long time. NetSuite now has an inventory counting functionality. And from what I know, it's basically built into SuiteSuccess. now at pretty much any addition that has inventory management. So leveraging this, you basically create an inventory count where you choose the item you want to do. So for this, I'm going to choose US. I'm going to go to my San Francisco location. And what it's going to do is give you account start date and account end date.

40:20So, there's a lot of automation behind this inventory count where you can specify how frequently you want certain items counted. And then you'll come in here to the count. You'll say between these two days and it will pop up and show you these are the items and the count date you've specified for it. Or if we blank out the start date, it will tell you, okay, these are the ones that you know the next count date is before November 19th. And then again, you blank it out. It will give you a list of all of the items available in your system at that location to be counted.

41:05There's a lot of other things you can do here. Um, one of the things to talk to showcase is the COGS account for inventory write-offs. So, as we go through this inventory count process, NetSuite's going to do our inventory adjustments for us instead of having to manually do the inventory adjustment like we used to have to do back in the day. So, I'm just going to choose I'm going to choose uh this one, cap 300. I'm going to hit submit. And this is going to give me a count sheet for just that item.

41:48Now I can select multiple and get a count sheet that has multiple items. Odds are you're probably not doing this one item at a time. But now we have our inventory count and we can basically say start count and then complete count and now I have an approve or reject process. So, if we go back to our dashboard and the the warehouse manager, it's going to add this cycle count to approve.

42:36So, you see here, okay, this is my count to view approve. I'm going to view this for cap 300. Wait a minute. They didn't actually put a count in here. Okay. So, let's edit this. I can't add my account because it's pending approval. I'm going to reject it. Now, I can edit it and type in my count. And you can see that at the moment it's not telling me how many there are existing. So, I actually have to go count.

43:11I'm going to say uh 30, right? I'm going to hit save. So I picked the wrong item because this has WMS features installed. So when I do complete count, right, it will take the quantity in NetSuite and take the count, put it here, and then give me an adjusted quantity, a variance detail, and it would do the journal entry for me. So I'm going to go to a list and see if I have a completed one that I can just show you guys real quick. Okay. So this one snapshot quantity 189 count quantity.

43:55So we have to adjust the quantity by 32. So this tells me this is the journal entry and NetSuite would have gone and created a journal off of this or uh manual inventory adjustment off of this. So any any counts you do like I showed you walking through it, it's going to hide the snapshot quantity when you go to do a count. So people are going to actually have to manually do the count and enter the number. They can't just sort of system cheat on the same record. I mean, yes, they they could just run an inventory report and enter it directly in, but ideally, because of the way it's set up and because of the fact that there's actually an approval process now, uh you can go in and make sure that your counts are more accurate, you can count your items specifically and instead of just having to print out a worksheet, you can, you know, have the specific inventory count.

44:55And if you look in our navigation shortcut group from earlier, I can actually print account sheet, select the ones that are pending and hit print. And it's actually going to give me something that I can digestibly give to my warehouse team. And I'm Yeah, I don't have access to that in warehouse, but we'll pop back to administrator. This is always the fun of demo accounts. So, I'm going to do that one. I'm going to view the file.

45:36So, here's my inventory count sheet printed out. So, it will give me the NetSuite barcode, the item, what bin it's in. So, again, more information than historic than was historically available in the physical count sheet. All right. So, I'm going to stop sharing. I know I hit a lot of information very quickly. We sort of went through a couple of different processes. So, I'm going to ask Brick to bring up the PowerPoint and we're going to talk about a couple of the key takeaways. Okay.

46:18So key takeaways, monitoring frequently, so looking at the dashboards, running those reports, setting up your KPIs, looking at your scorecard, monitoring frequently helps ensure accuracy and limits the amount of time that we have to spend adjusting our inventory. The more inventory we adjust, the worse our accounting is, the weirder our inventory value truly is, the cogs are, and you know, the more manual work our warehouse team has to do versus what we want them to do, which is fulfilling orders and receiving orders.

46:55Leveraging multiple reports to make sure that we have the holistic view is very important. So, as you saw, we looked at profitability versus sales versus inventory turn. That gives us a lot of different points of information to holistically tell us what our inventory is doing and when we're doing it so that we can make the right decisions on ordering, promoting, and selling that inventory. And then as we talked about with why we would use the inventory adjustment, when we would might use a transfer versus transfer order, these are all down to internal policy decisions of when we do something and when we don't do something.

47:34And the better our setup and our policies around this, the better our inventory, our count sheets, and our accounting all is. So again, these are the three big takeaways from today. frequently running frequently looking at your inventory, using multiple reports, and following and setting up good internal processes and policies. All right, so Brooke, that's the end of my prepared remarks. >> All right. Well, thank you, Randy. Um, that was great.

48:10I hope everyone got a lot out of what we were present or what Randy, I should say, was presenting today. And um we want to open it up now for questions if you guys have them. So let's see here um as any questions kind of come through. If you need a reminder where to put the questions, there is a Q&A panel down at the bottom of your screen. Okay. So let's see. Can can any role have an inventory?

48:45Can can any role have inventory management options? >> Yes, any role can. So going in and it's not linked to a center. You can go in and set, you know, list permissions and transaction permissions to dictate what inventory capability or management capability each individual role has uh access to. Um, I recommend, you know, not letting certain roles have access to manage uh and move around inventory. So, you don't want your sales team uh necessarily dictating what inventory is in what warehouse and what orders are getting fulfilled.

49:27Um, but you can add basically every permission that we looked at today is controlled individually and you can add those however you want to whatever role you want. >> Awesome. Looks like we have one last question here. And as a reminder to the group, if you do have questions and um you don't want to ask them on the call today or it comes up later, please feel free to email us and we will be sure to get your questions answered. But to answer this last question here, how so if I have this person says, if I have a WMS system, how does that work with what was presented today?

50:08>> Okay, great great question. Um, so it depends on your W system. Most of the WMS systems uh are set up to help allow better mobile access to a lot of the kinds of transactions we just talked about. So, the ability to scan um inventory transfers, transfer orders. The receipts and fulfillments are generally done uh you'd generally be doing fulfillments and receipts in your W.

50:42Some W's have the capability to initiate transfer orders right off of them. Uh most of the WMS's sort of take that inventory count. They have their own counting process for it. So, it's going to kind of bypass the NetSuite count process with what your WMS tool has. Some of them have pretty advanced stuff. Uh, the NetSuite counts we looked at today, you know, are kind of just uh they're better than they they used to be. They give you some better control and some better counting options in the system.

51:16Um but you know your WMS tools may replace a lot of this your inventory reporting as long as NetSuite is your master system of records. So like let's say that your WMS is integrated with your 3PL and they just sort of push information back to NetSuite. Um, as long as that's sort of being done in real time and not batch, all of the inventory reporting, the dashboards, um, the accounting should all be similar and you should be doing standard in NetSuite more than you know WMS's are not necessarily known for reporting.

51:56They're more to handle the individual functions. So, um, yeah, that's that's the answer to that. That was a really good question. All right. Well, thank you, Randy, for for answering that on the fly there. All right. So, to close this out, um I just wanted to to put a quick reminder out there that we would love your guys's feedback. So, at the end of this presentation, a survey will pop up. So, if you could please fill that out um and get entered into a chance to win $50 gift card. Um as a reminder, the Luxent team is here to help you guys succeed.

52:33So, if you guys have any follow-up questions or want to dive deeper into how your team can get more out of NetSuite, please don't hesitate to reach out. We're always happy to connect and brainstorm or even walk through a specific use case that you might be struggling with. So, thank you again for joining us and we hope to see you on our next Lux University session. Have a great day everyone.