Overview

MicroBiz includes the ability to use reorder levels and reorder quantities to speed the creation of purchase orders.

 

These features can be accessed by navigating through Back Office>>Inventory>> Purchase Order>> Action Menu >>Automation.

                                                                                                

 

There are three buttons:

 

  1. Autofill Open Orders – Will add all outstanding backorders for the selected vendor to the PO
  2. Autofill by Reorder Levels – Will add all items to the PO where the current open stock quantity is less than the reorder quantity setting for items from the selected vendor
  3. Autofill by Historical Sales – Will add all items sold during the date range entered for the selected vendor.



 

Using these functions will automatically add items to the purchase order for the selected vendor based on the current inventory levels and values entered.  The quantity added to the PO can be adjusted as follows:

 


Restock Settings


Autofill orders based on Reorder Level have several options. Let’s start with an example.




Current Stock

Reorder Level

Reorder Qty

Backorders

On Order

Example 1

1

6

18

0

0

Example 2

0

6

18

4

0

Example 3

0

6

18

4

6



The example above is meant to illustrate the different options in vendor order auto-fill functions. In all 3 examples, we have a reorder level of 6 and a reorder quantity of 18. That means when the stock reaches 6 units or less we order 18 units. These 2 settings for most retailers are meant to keep the retailer from running out of these items. But what if we did not place an order and the stock drops below 6 to 5 or even zero? What if we have already placed an order for 18 but we are now accumulating customer backorders? 



Options:

  • At or Below Reorder Level vs Below Reorder Level – changes whether 18 is ordered when open stock is 6 (At or Below) or 5 or less only (below).
  • Reduce Quantity using orders expected – If we already have an order in the near future we might want to reduce the reorder quantity to avoid having too much stock and tying up too much cash. In the case above 6 units are already coming soon so rather than 18 we may want to order 12. The date on this option allows you to ignore orders that are too far in the future.
  • Base Calculation on current stock – Reorder Level of 6 and Reorder Quantity of 18 means for most people they meant to reorder 18 when stock levels reached 6. But now that stock is 1 or zero should we order 5 or 6 more? Answering ‘yes’ to this option adds the difference between the reorder level and the current open stock to the reorder qty. In example 1 we will order 18 + 5 or 23 units.
  • Add Backorders to Reorder Quantity -  this adds any backorders to the reorder quantity so in example 2 & 3 above we would reorder 18 +4 or 24.

Taken altogether these options provide different results in the examples above.  For example if we use At reorder level and answer yes to reduce quantity by orders expected, base calculation on current stock and add backorders we would reorder

Example 1 : 23 (18 +5 )

Example 2:  28 (18 + 6 + 4 )