Setting a reorder point and a safety point for stock levels gives you visibility over when there is insufficient stock for your operations. Follow these steps to learn how to determine insufficient stocks by setting a reorder point and a safety point.
a. Add a Reorder Point and a Safety Point
b. Determine Insufficient Quantities and Post to Purchase Order
Add a Reorder Point and a Safety Point
1. Reorder point refers to the minimum level of stock that the business needs for operations.
2. Safety point is an indicative number of the exact level of stock the business should have for operations.
3. To set a reorder point and a safety point, go to the Reorder Point icon under the Inventory tab.
4. Filter down to the items you wish to make adjustments for, and select Edit.
5. Re-arrange the tabs if necessary (drag and drop the necessary columns to the layout you like. You may save that layout via the Setting function in the top right Function dropdown.
6. The highlighted columns can be changed.
7. Add a Reorder Point Quantity for the item. You can base this number on your Sales Qty, and Avg Sold Qty.
8. Add a Safety Point Quantity for the same items.
9. You may also add a minimum ordering quantity here.
10. Once done, Save.
Determine Insufficient Quantities and Post to Purchase Order
1. To determine which stocks are low are require re-ordering, simply filter the Insufficient Quantity column to “Yes”. All the items that have insufficient stock will appear.
2. Check the items you wish to re-right-click for, right click, and Add to Purchase Order/Transfer Note/Sales Invoice.
3. When you post to a PO/TN/SI, the quantity will be the amount of quantity needed to reach the safety point. However, you may still make the necessary changes to your PO before you post it.
4. Once done, Confirm and send your PO out to complete your stock reorder request.