My Company Settings: Preferences Tab

Field / option

Used for

Allow negative balances

Turn on this option to allow the system to process transactions for negative inventory (inventory items that are not in stock).

Negative stocks may occur because inventory items are placed for sale, inventory movement, product assembly, etc. before a receipt for the inventory items was entered into the system. 

• If negative balances are allowed, you can sell, transfer, use for the assembly inventory items that are not currently on hand. Sales or inventory transactions including negative inventory will be posted to the Transaction journal, the Inventory journal and other associated journals.
• If negative balances are not allowed in the system, you will not be able to sell, transfer, use for the assembly inventory items that are not currently on hand. While trying to post a document that triggers the sale, transfer or other possible uses of inventory items that are not currently on hand, you will receive an error message. 

Allow sale of reserved items

Turn on this option to allow the sale, use for the assembly or transfer of items reserved for a specific customer. In other words, you turn on this option to allow the use of inventory items which have the status Reserved.

• If this option is turned on, the number of items available for sale, movement, product assembly includes the reserved quantities.

This may be useful for ….

For example, 10 items out of 95 were reserved. If this option is turned off, the number of items available for sale will be 85. Otherwise, if the option is turned on, it is still 95.

• If this option is turned off, you can sell reserved items only to a customer for whom those items have been reserved in the system. Other operations involving reserved items, such as inventory movement, use for the assembly, etc. will be forbidden. That is, the number of items available for sale, movement, product assembly will not include the reserved quantities.While trying to post a document that triggers the sale, transfer or other possible uses of reserved inventory items and therefore exceeds the inventory quantity available for use, you will receive an error message even if the required quantity of an item is available in stock.  

Multiple warehouses

Turn this option on to enable the use of multiple warehouses by your company.

• If this option is turned off, you cannot create and use multiple warehouses in the system. Only one warehouse will be available for use which is a default warehouse pre-configured by application developers.This default warehouse that has been pre-defined in the system will be automatically used for inventory transactions, and all items will be allocated to it.  Thus, the default warehouse will be used in all associated entries to various journals. You cannot change or delete the default warehouse.Also, the field Warehouse will not be unavailable in all sales, purchase and inventory documents. The document Warehouse movement can be used only for transferring goods between different sections of the warehouse or between different inventory accounts. 

• If this option is turned on, you can create and use multiple warehouses. New warehouses then can be created in the Warehouse directory located in the Inventory module. Also, you can set a default warehouse to be used for all items and inventory transactions other than the warehouse pre-defined by application developers. The field Warehouse will be present in all sales, purchase and inventory documents where you can select a warehouse from which items will be sold, moved, written-off, etc. or to which items will be allocated after being purchased. It is presumed that all inventory items could be stored in all warehouses which were added to the system. All items could be distributed among all warehouses but in different quantities. So, you can reserve and ship any inventory item from any warehouse.  If some inventory items are out of stock in the selected warehouse, you either have to create another sales document in which you should select a warehouse where the specific inventory items are available or create a warehouse movement document to do a simple inventory movement transaction. 

• If you eventually disable multiple warehouses after using them in various documents, records and transactions, your selections will persist in created documents, records and journal entries. However, all new documents, records or transactions will again use the default warehouse pre-defined by application developers.   

Default warehouse

If the Multiple warehouses option is turned on, and you have created several warehouses in the system, you can select a warehouse to be used as a default one in sales, purchase and inventory documents.   The selected default warehouse will be automatically suggested for use in all sales, purchase and inventory documents. 

• If the Multiple warehouses option is turned off, you cannot set a default warehouse by yourself. The default warehouse pre-defined by application developers will be selected and used in the system. You cannot change or delete the default warehouse pre-defined by application developers, but you can rename it.  
• If you eventually disable multiple warehouses after setting your default warehouse and using different warehouses in various documents, records and transactions, a warehouse you have selected as a default one will be replaced by the default warehouse pre-defined by application developers.  All new documents, records or transactions will use this default warehouse. However, your selections for created documents, records and journal entries will persist.   

Use warehouse sections

Turn on this option to enable the creation of warehouse sections for warehouses added to the system. This option is available only if you have selected the FIFO as your inventory valuation method (see Inventory valuation method).  

Warehouse section - logical or physical subdivision of a warehouse; a warehouse compartment. 

• If this option is turned off, you cannot create and add warehouse sections to warehouses. Also, the field Warehouse section will be unavailable for defining items in sales, purchase and inventory documents.

Initially, a default warehouse section is created within the default warehouse pre-defined by application developers.  Thus, if the Use warehouse sections option is turned off, this warehouse section will be used for inventory transactions and will be displayed in all entries made to the Inventory journal. However, the field Warehouse section will not be present in sales, purchase and inventory documents. As a result, you will not be able to change the default warehouse section in those documents. Also, you cannot delete the default warehouse section within the warehouse pre-defined by application developers or select other sections as a default one. However, you can rename the default warehouse section. 

• If you enable multiple warehouses in the system (see Multiple warehouses), a default warehouse section will be automatically created for each warehouse added to the system. Thus, if the Use warehouse sections option is turned off, such default warehouse sections will be used for inventory transactions and will be displayed in entries made to the Inventory journal. However, the field Warehouse section will not be present in sales, purchase and inventory documents. As a result, you will not be able to change default warehouse sections in those documents.

If you delete default warehouse sections within warehouses created by you, you will not be able to save documents where warehouses whose default sections have been deleted will be selected. To be able to save such documents, you have to create default warehouse sections for selected warehouses yourself.  

• If Use warehouse sections option is turned on, you will be able to create and add warehouse sections to warehouses. Also, the field Warehouse section will be available in all documents for which it has been provided by application developers. For example, in all purchase and inventory documents that refer to the processes of obtaining items, moving items between warehouses and writing off items.  However, the field is unavailable for sales operations in sales documents as well as for other activities involving the use of items (product assembly, etc.) Items to be sold or used for product assembly will be written off according to the FIFO method, and ensuing transactions will automatically use warehouse sections to which such items were allocated.  

Information about warehouse sections is particularly useful for warehouse managers and sales managers who have to pick up items from specific warehouse sections. The use of warehouse sections is the most relevant for items which have a short shelf life.  

While defining the warehouse you can create and link warehouse sections to it.  You cannot link warehouse sections defined for specific warehouses to any other warehouses. Inventory items can be allocated to or shipped from different sections of one and the same warehouse.

Separate document for sales delivery

Separate document for receipt of purchased goods