How to optimise your use of NetSuite Inventory Management

A revolution in inventory management begins with precise, readily available data that empowers you to address critical inventory inquiries such as: How many varieties of items do I possess, and where are they located? What quantity of items have I committed to sell? Is it necessary to maintain these items in stock, or can I procure them as required?

NetSuite Inventory Management empowers you to monitor inventory levels and movements in real-time across numerous locations, facilitating informed business decisions.

In this blog, we will unveil top strategies and insights for enhancing your inventory management procedures.

Inventory adjustment - negative inventory

The inventory adjustment transaction serves as a catalyst for change in the quantity and value of inventory items without necessitating a purchase order. This versatile transaction can rectify clerical errors, adjust costs, address thefts, or correct miscounts.

With Negative Inventory, NetSuite takes the lead by generating a report that highlights any negative inventory values, alerting you to rectify these discrepancies through actual inventory counts. This report is conveniently produced alongside your month-end closing checklist, ensuring that a physical count has been conducted before delving into this task.

To review negative inventory:

Go to Transactions > Inventory > Review Negative Inventory.
On the Review Negative Inventory Page, in the As of Date field, enter the date for the review.
List of inventory items shows any items that have negative inventory.
Adjust the amounts for the listed items so they are no longer negative.

Adjust Inventory Forms

Adjusting inventory forms allows for the modification of quantity and value for inventory items without the need for a purchase order upfront. NetSuite calculates the cost estimate for standard-cost items based on the total amount, which includes quantity. If utilising the LIFO or FIFO costing methods, it is recommended to perform an inventory adjustment to alter the quantity and value of inventory items, avoiding the use of the Inventory Worksheet (mentioned earlier) in such cases to preserve historical data.

Additionally, for custom transaction fields, any field designated for Inventory Adjustment is also applicable for Inventory Transfer.

To enter an inventory adjustment:

Go to Transactions > Inventory > Adjust Inventory. The Inventory Adjustment page appears.
For OneWorld accounts, in the Subsidiary field, select the subsidiary you want to associate with this adjustment.
Set values in fields of each of the following sections or subtabs: Primary Information, Classification, and Adjustment.
Add the individual item or items you need to adjust. NetSuite will prompt you to update any necessary Inventory Details as needed.
Update your “Adjust Qty By” by using “+” and “-” — for example, to decrease an item by, you would enter “-5.” See example image above.
Click Save.

Adjust Inventory Worksheets

Inventory Worksheets allows you to effortlessly adjust the quantity or value of inventory items, excluding lot numbered items, serial numbered items, or inactive items. With the ability to make adjustments for up to 1,000 line items at a time, this tool streamlines the process of modifying inventory details. When revisiting an existing inventory adjustment to make changes, the original items are displayed in the list, ensuring a comprehensive view without any exclusions.

To use the adjust inventory worksheet:

Go to Transactions > Inventory > Adjust Inventory Worksheet. The Inventory Worksheet page appears.
For OneWorld accounts, in the Subsidiary field, select the subsidiary you want to associate with this adjustment.
Set values in fields of each of the following sections or subtabs: Primary Information, Classification, and Adjustment.
Adjust your quantity in the “New Qty” field — you will simply enter the new total quantity. For example, the previous amount was 27, and you increase by 10. You would enter “37.”
Click Save.

Inventory Transfer Overview

The intricate dance of inventory transfer transactions involves meticulously updating the location details per item, orchestrating inventory level changes as items journey between multiple locations. This seamless Basic Inventory Transfer seamlessly decreases items in the source location while simultaneously increasing their presence in the receiving location, all accomplished in a single swift step. Utilise the Transfer Inventory Form to elegantly document alterations in inventory levels for each item across various locations.

To enter a basic inventory transfer:

Go to Transactions > Inventory > Transfer Inventory. The Inventory Worksheet page appears.
Complete the primary information, classifications, and item subtabs.
Click Save.
When you click Save, your inventory is updated for each location.
You can view transfers you create by going to Transactions > Inventory > Transfer Inventory > List.

When you need to transfer inventory from one location to another, you can enter inventory transfer orders to schedule and track the movement of items.

Transfer orders are different from basic inventory transfers because you can track each stage of the transfer process and know when and where items are in transit.

A transfer order is entered to schedule the movement of items and can go through approval process.
When a transfer order is approved, the items are committed out of the source locations’ inventory and the On Order items increase.
Transfers are then fulfilled out of the source locations. You have the option to enable the pick, pack, and ship features for this process.
Finally, the destination location enters a receipt for the items.

Inventory Transfer Reports & Analytics

You can review reports showing inventory costs, stock levels, activity, valuation,
revenue generated, and profitability. Then, use this information to identify successes and problems within each workflow process.

Reports can you help identify:

Current stock status;
Items that are profitable, or not; and
Areas of the inventory workflow that are working well or need attention.

Pick, Pack, and Ship With Transfer Orders. The Pick, Pack, and Ship feature
assists you with processing transfer orders. It also provides warehouse and
shipping departments with their own processes to fulfill orders. This enables
greater flexibility in processing and tracking orders through fulfillment
and shipment.

You can separate transactions for each step:

To pick the items from inventory (Fulfill Orders)
To pack the items to prepare them to be shipped (Mark Orders Packed)
To ship the items to the receiver (Mark Orders Shipped)

Inventory Management Dashboard Overview

Inventory dashboards provide you with timely, at-a-glance rollup of the reporting, key searches, key performance indicators, and metrics meaningful to your business. Role specific dashboards further customise the view, providing key stakeholders with snapshots of inventory standing tailored to their needs.

CFO Dashboard: At an executive level, dashboards provide a high-level view of overall business health and top KPIs, such as Inventory Value, Operating Cash Flow, and COGS.

Purchasing Manager: Dashboards specific to functional roles, such as the purchasing manager, provide a single location to manage daily tasks, such as monitoring open PO’s, re-order points, and vendor management.

Inventory/Warehouse Manager: Central to understanding and optimising inventory usage across the organisation, an inventory manager dashboard provides warehouse or inventory leads with essential information about fulfillment, stock allocations, and inventory in transit.

Need help with NetSuite?

Implementing NetSuite Inventory Management can revolutionise your inventory tracking and management processes. From adjusting inventory levels to transferring items between locations, NetSuite provides a comprehensive solution to streamline your operations. By utilising the inventory adjustment, adjustment forms, worksheets, and transfer features, you can ensure accurate inventory counts and efficient movement of goods.

The Inventory Management Dashboard offers real-time insights into inventory status and performance metrics, empowering you to make informed decisions for your business.

Juanita Potgieter

With over 20 years’ experience in various marketing and business development fields, Juanita is an action-oriented individual with a proven track record of creating marketing initiatives and managing new product development to drive growth. Prior to joining Verde, Juanita worked within strategic business development and marketing management roles at several international companies. Juanita is certified in both MYOB Acumatica and Oracle NetSuite.