Net Buy Calculation

QuickBooks has a “reorder point” field for inventory part items, and a “build point” field for inventory assembly items. CCRQBOM can use this value in two ways, when calculating the net buy value:

1.  This can be a “reorder point” in the traditional QuickBooks sense. The net buy value will be a suggested amount that you purchase (for inventory part items) or manufacture (for inventory assembly items) to bring the quantity on hand up to this reorder point. You can consider this to be a “minimum stocking level”.

2.  This value can alternately be used as a “minimum order quantity” value. The net buy value will show the quantity you should build or manufacture if you either have a shortage or a build quantity – this would be the added quantity you need to round out the bought or built amount to be at least the minimum level required for an order/build.

This is a “calculated field” that can be used in the “Order Aggregate” report. It represents a recommendation on the quantity of the item that you should buy (or build).

Select the calculation method that you prefer.

This screen lets you set some preferences as to how the net buy figure is calculated. If you want the calculation to take sales orders and/or purchase orders for the item into account, check the appropriate box.

PLEASE NOTE that there is no “time phasing” of these values – a purchase order that is scheduled to arrive next year will be counted just like a purchase order scheduled to arrive tomorrow.

This field is described in the CCRQBOM Reports chapter that follows.