Let’s dive back into the Part module for the second time. You might even call this part 2. Last time, we discussed how to create new parts and now we’re going to cover how to create part reorder levels.
Reorder points are certain quantities of inventory that, when reached, trigger the process of obtaining more parts to reach a certain level. So when the total number of parts in stock gets down to the reorder point, you’ll know it’s time to reorder more of them.
Let’s make sure we’re clear about the difference between reorder levels and reorder points.
Reorder Levels are made up of two things:
Reorder Point: The minimum number of items in stock that marks the point at which they must be reordered to avoid running out.
Order Up to Level: The maximum or preferred number of items that can be contained in stock. The reorder quantity shouldn’t be higher than this number.
You can run a Reorder Report from the Report module to produce a list of all the items in your inventory that have reached their reorder point. It will also show you how many to reorder to return to the proper level.
You can use reorder levels to automatically generate purchase orders for the necessary number of parts to get them back to the desired quantity through the Auto PO wizard. If you’re a manufacturer, you can also use reorder points to automatically generate manufacture orders for the desired quantity using the Auto MO wizard.
3 Ways to Create Reorder Levels
Here are the three methods by which you can create reorder levels:
1. Use a Reorder Levels CSV Import to create multiple reorder levels.
2. Use the Auto ROP wizard to automatically set multiple reorder levels at the same time.
3. Click the Inventory tab in the Part module to create and edit single items’ reorder levels.
Let’s delve into these three methods a bit more closely to give you an idea of how to do them and where to find them in the interface:
1. CSV Import
Click the File button at the top of the interface and then select the Import option. This will pull up a friendly Import wizard to guide you through the process of importing data on reorder levels via Excel spreadsheets. It tells you how to format the data and other essential things to follow
2. Auto ROP Wizard
The Auto ROP wizard is located in the toolbar on top of the interface. Simply click on it and it will bring up a new window to help you specify the right parts you’re looking for and calculate their reorder levels, based on a number of factors. I could spend an entire blog post explaining all of this, but to keep it brief I’ll just have to cut it short here and direct you to the Fishbowl Wiki for detailed instructions on using the Auto ROP wizard.
3. Inventory Tab
There are several tabs located at the top of the Part module, including General, Details, Accounts, and Inventory. Click the Inventory tab and you’ll be able to see detailed information about a particular part, including the number on hand, on order, allocated, committed, backordered, and so forth. You’ll also find a helpful section at the bottom with information about the item’s location, order up to level, and reorder point. You can adjust this information right there.
There’s even more to the Part module, so we’ll continue next week with Part 3: an explanation of ABC codes and tracking methods.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.