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Lucidity Enterprise is a business application that provides the following capabilities:
- Quoting
- Invoicing
- Purchase Orders
- Inventory Management
Lucidity Enterprise is currently undergoing beta testing prior to release, and isn't available as a product at this time. The purpose of this user guide is to provide testers with guidance as to the operation and function of Enterprise to support their testing activities.
Introduction
Purchase Orders
Purchase orders are created using the Purchase Orders tab. Each line in a purchase order is normally a SKU, however free text line entries can be used also.
Wherever possible use SKU entries in purchase orders and invoices. Free text entries used in Invoices and purchase orders do not update the inventory
Purchase Order Transactions
Purchase order transactions can be one of three types. Note that transactions must be SKU's.
| Transaction Status | Description |
|---|---|
| Draft | No effect on inventory. |
| Ordered | Goods are on order with the supplier but not received into the warehouse. |
| Received | Goods are in the warehouse. |
Cost of Goods
The Cost of Goods is determined by calculating the following:
Cost of Goods = Purchase Price + Purchase Cost
The Purchase Price is the price indicated on the purchase order for each SKU i.e. what the supplier is paid for the goods.
The Purchase Cost is applied to the purchase order as a whole, and is apportioned to each SKU in the purchase order. The Purchase Cost covers items such as exchange rate, duty, freight (into store) and other costs associated with getting the items into inventory and ready for sale.
The Purchase Cost is either a $ amount or a % amount applied to the purchase order as a whole. It is applied to the SKU's in the purchase order as follows:
| Purchase Cost | How applied |
|---|---|
| % (percentage) | The Purchase Price for each SKU in the purchase order is increased by the Purchase Cost (%). |
| $ (fixed amount | The Purchase Price for each SKU is increased by an amount that is a proportion of the Purchase Cost ($). The Purchase Cost is apportioned based on the Purchase Price for each SKU i.e. expensive items are allocated a greater proportion than cheaper items. |
The Purchase Cost determined using the same method for all SKU's in the purchase order i.e. there is one Purchase Cost specified, and it must either be a percentage or dollar amount (it cannot be a combination). Individual SKU's in a purchase order cannot have different Purchase Cost calculations i.e. one cannot be fixed cost and another a percentage.
When is the Purchase Cost applied ?
The Purchase Cost is reflected in the transactions based on the Purchase Cost specified for the applicable purchase order, regardless of the status of the transactions in the purchase order or the status of the purchase order as a whole. If the Purchase Cost is adjusted at any time for a particular purchase order, all related transactions are adjusted to show an updated Cost of Goods.
Inventory Management
The inventory is managed based on SKU (stock keeping unit) transactions in invoices and purchase orders. Each time a purchase order or invoice is created, each line item represents a transaction with respect to the inventory for that SKU.
SKU's (Stock Keeping Units)
SKU's are defined in the Inventory > SKU page. For each SKU a category can be selected, which is used for filtering. SKU's can be active or inactive. Inactive SKU's cannot be used for a purchase order or invoice, and by default do not appear in the inventory page.
Inventory Page
The Inventory page within Lucidity Enterprise provides a summary of each SKU (Stock Keeping Unit) within the system. The list is filterable based on SKU.
For each SKU the following is displayed:
Field | Description | Calculated by |
|---|---|---|
| Ordered | Qty on order (not received). | Sum of the transactions types as follows: PO(Ordered) |
Total | Qty in stock, including any reserved. | Sum of the transactions types as follows: PO(Received) + SA - INV(Shipped) |
| Reserved | Qty reserved. | Sum of the transactions types as follows: INV(Reserved) |
| Available | Qty available for sale (stock less any reserved) | Sum of the transactions types as follows: PO(Received) + SA - INV(Sale) - INV(Reserved) |
Abbreviations used are as follows:
- INV = Invoice
- PO = Purchase Order
- Q = Quote
- SA = Stock Adjustment
Stock adjustments are manually entered transactions to increase or decrease the stock of a particular SKU. Stock adjustments do not have a Cost of Goods associated with them.
Invoice Transactions
Invoice transactions can be one of three types. Note that transactions must be SKU's (free text invoice lines do not modify the inventory).
| Transaction Status | Description |
|---|---|
| Draft | No effect on inventory. |
| Reserved | Goods are in warehouse but reserved for delivery to a customer (they are not available for new sales). |
| Shipped | Goods are shipped. |
Cost of Goods
The Cost of Goods is determined by calculating the following:
Cost of Goods = Purchase Price + Purchase Cost
Purchase Orders
The Purchase Price is the price indicated on the purchase order for each SKU i.e. what the supplier is paid for the goods.
The Purchase Cost is applied to the purchase order as a whole, and is apportioned to each SKU in the purchase order. The Purchase Cost covers items such as exchange rate, duty, freight (into store) and other costs associated with getting the items into inventory and ready for sale.
The Purchase Cost is either a $ amount or a % amount applied to the purchase order as a whole. It is applied to the SKU's in the purchase order as follows:
| Purchase Cost | How applied |
|---|---|
| % (percentage) | The Purchase Price for each SKU in the purchase order is increased by the Purchase Cost (%). |
| $ (fixed amount | The Purchase Price for each SKU is increased by an amount that is a proportion of the Purchase Cost ($). The Purchase Cost is apportioned based on the Purchase Price for each SKU i.e. expensive items are allocated a greater proportion than cheaper items. |
The Purchase Cost determined using the same method for all SKU's in the purchase order i.e. there is one Purchase Cost specified, and it must either be a percentage or dollar amount (it cannot be a combination). Individual SKU's in a purchase order cannot have different Purchase Cost calculations i.e. one cannot be fixed cost and another a percentage.
When is the Purchase Cost applied ?
The Purchase Cost is reflected in the transactions based on the Purchase Cost specified for the applicable purchase order, regardless of the status of the transactions in the purchase order or the status of the purchase order as a whole. If the Purchase Cost is adjusted at any time for a particular purchase order, all related transactions are adjusted to show an updated Cost of Goods.
Transactions
Each transaction records both the Purchase Price and the calculated Cost of Goods (Purchase Price plus Purchase Cost). The Purchase Cost that is recorded in the appropriate Purchase Order is used to determine the Cost of Goods. If the Purchase Cost is modified at any time then the changes flow to the Cost of Goods for the related SKU's in the inventory.
The Cost of Goods is shown in the transaction list as well as the Purchase Price and the Purchase Cost. Each is shown as a $ amount (regardless of the calculation method for the Purchase Cost).