Accounting with Kanban Warehouses

• When inventory is released to the production floor, any accrued value of the inventory is transferred to the Kanban Inventory asset account.
• The Kanban Inventory account shows the balance of all non-consumed inventory in Production warehouse inventory at any time. The standard GL Inventory accounts show the remaining balance of all inventory not released to production.

Transfers of materials between different warehouses have been a feature of Cyrious Control since version 4.0. In most respects, Production warehouses act like any other warehouse. In one key area, however, the accounting of inventory in Production warehouse differs from other stockroom warehouses.

On the balance sheet, all inventory in Production warehouses are tracked in a separate system inventory account called (by default) Production warehouse inventory. When inventory is moved into a Production warehouse, the value of that inventory is automatically transferred from the corresponding inventory asset account into the Production warehouse inventory asset account

In the following example, assume 2 rolls of material are released to the Production warehouse. Each roll has a cost of $325 in inventory. The corresponding entry in Control would look like this:

Warehouse Usage Guidelines
The guidelines for Stockrooms, Kanban warehouses, Warehouse Groups, and Standard warehouses are:

Warehouse Inventory
For any given inventory item, the following inventory counts are tracked:

Inventory Levels with Warehouse Groups

• Inventory can be ordered (via POs and Bill) for a stockroom warehouse or a warehouse group.
• If the warehouse group is used in a PO or Bill, the group’s default stockroom warehouse is used as the recipient.

Reserved and On Order Inventory Quantities

• An order in WIP is reserved order against the production warehouse.
• Since the Warehouse Group is the combination of the stockroom and production warehouses, it will show a net increase in the reserved quantity and a net decrease in the available quantity.
• New tools are available for transferring materials between the stockroom and production warehouses. (Materials moved into a warehouse group are transferred into the default stockroom for that warehouse.)

Production Setup
The warehouse setup screen is located under the file menu under Production | Production Setup along with the following items:

• General Options
• Stations (formerly in General Setup)
• Divisions (also in Accounting Setup)
• Warehouses (formerly on Pricing Setup) Requires Inventory Module
• Part Setup (also in Pricing Setup) Required Parts Module
• Adjust Part Information (also in Pricing Setup) Requires Parts Module
• Timeclock Options (formerly in General Setup)
• Part Usage Creation (formerly in General Setup)

When the applicable modules are not enabled, their corresponding setup is not displayed.
Production General Options Screen
The set-up screen for general production options is located under the Production | Production Setup menu.

General options found on the setup screen include:
Warehouse Setup (only if Inventory module present)
[ x ] Enabled Warehouses
[ x ] Enabled Warehouses to have different part lists. (Caution – increases the setup!)
Stockroom Transfer Screen (only if Inventory and ProFITS module present)
[ x ] Allow the Transfer amount to use decimal (non-integer) values
[ x ] Enable barcode scanning of materials
[ x ] Require materials to be barcode scanned before creating Transfer Documents
Order Options
[ x ] Enable Built Status between WIP and Sale
[ x ] Show Order-Level Stations
[ x ] Require Order-Level Stations
[ x ] Track Changes to Order-Level Stations as activities
Default Order-Level Station : [ (none) \/ ]
[ x ] Require Line Item Station
[ x ] Track changes to Line Items as Activities
[ x ] Show the Proof Date
( ) Do not default the Proof Date
( x ) Default Proof Date to [ 1 ] Days from order create
( ) Default Proof Date to number of days for new order
[ x ] Show the Due Date
[ x ] Require Due Date for Orders
[ x ] Require Due Date for Estimates
[ x ] Require Due Date for Service Tickets
[ x ] Automatically Calculate Due Date
[ x ] Allow Due Dates in Orders before Today
Warn the user when:
( ) The due date is before the proof date.
( ) The proof date is before the due date.
( ) Neither.
Warehouse Setup Screen
The warehouse setup screen is located under the Production | Production Setup menu option.

Warehouse setup requires the following information, some of which is only applicable to certain warehouse types.