BMS has a feature to inventory and sell roll remnants. There is also a Company Control 2 option that enables a commission feature for salespeople. See below:
Remnant Commission- with this control set to “Y” for yes, the system will allow you to enter a salesperson commission percentage amount to apply to remnants (created through the Remnant feature explained in the Inventory Control section below) that will figure commission even where there is a loss on the sale. For example, if the value of a remnant is $100, but you can only sell it for $50, you may still want to pay the salesperson a commission of 10% of the sale to encourage your salespeople to sell remnants. Also, with this control enabled, the remnant sale, even when showing a loss, will not affect salesperson commissions on the rest of the job. It will be paid in addition to the regular commission earned on the job.
Remnant Feature Explanation:
The Remnant feature should only be used on items that you consider a remnant, meaning it is inventoried and sold as is, much like an area rug. For all other inventory records, this feature should remain inactive. The remainder of this section details how to use the Remnant features in the system. Please Note: you cannot create a remnant out of inventory that has any portion assigned on a Job. Also, once a remnant is assigned on a Job, you cannot make changes to the remnant in Inventory Maintenance unless you first unassign the remnant from the Job.
Important Note: If you wish to assign a special Salesperson Commission percentage to remnant sales, you must first turn the commission option of this feature on in the Company Control 2 level screen of the System Control Maintenance module. The control appears as “Remnant Commission” and must be set to “Y” for yes. Secondly, a commission percentage should be entered in the next field of that control. If you do not want remnant sales to impact a Salesperson’s regular commission on a Job, you need to enable this control. If this control is not used, the commission will be negatively impacted by the lower margin or loss on the remnant. The remainder of this section is written based on this control being enabled. Additionally, if a User is not allowed to sell below the A-J Level Pricing, the system will check to see if the price entered is below what is allowed and adjust the price back to the stored price; otherwise, it will keep the new price entered if it equals or exceeds the stored remnant price.
To create a remnant from existing inventory, click the Remnant box for that item in the Edit Inventory Item screen. The system will prompt the following:
Remnant Commission- with this control set to “Y” for yes, the system will allow you to enter a salesperson commission percentage amount to apply to remnants (created through the Remnant feature explained in the Inventory Control section below) that will figure commission even where there is a loss on the sale. For example, if the value of a remnant is $100, but you can only sell it for $50, you may still want to pay the salesperson a commission of 10% of the sale to encourage your salespeople to sell remnants. Also, with this control enabled, the remnant sale, even when showing a loss, will not affect salesperson commissions on the rest of the job. It will be paid in addition to the regular commission earned on the job.
Remnant Feature Explanation:
The Remnant feature should only be used on items that you consider a remnant, meaning it is inventoried and sold as is, much like an area rug. For all other inventory records, this feature should remain inactive. The remainder of this section details how to use the Remnant features in the system. Please Note: you cannot create a remnant out of inventory that has any portion assigned on a Job. Also, once a remnant is assigned on a Job, you cannot make changes to the remnant in Inventory Maintenance unless you first unassign the remnant from the Job.
Important Note: If you wish to assign a special Salesperson Commission percentage to remnant sales, you must first turn the commission option of this feature on in the Company Control 2 level screen of the System Control Maintenance module. The control appears as “Remnant Commission” and must be set to “Y” for yes. Secondly, a commission percentage should be entered in the next field of that control. If you do not want remnant sales to impact a Salesperson’s regular commission on a Job, you need to enable this control. If this control is not used, the commission will be negatively impacted by the lower margin or loss on the remnant. The remainder of this section is written based on this control being enabled. Additionally, if a User is not allowed to sell below the A-J Level Pricing, the system will check to see if the price entered is below what is allowed and adjust the price back to the stored price; otherwise, it will keep the new price entered if it equals or exceeds the stored remnant price.
To create a remnant from existing inventory, click the Remnant box for that item in the Edit Inventory Item screen. The system will prompt the following:
This is a reminder to complete other necessary steps to complete the process. Click the OK button and the system will return you to the Edit Inventory Item screen. Tab to or click in the Price field of the Remnant box. Type the sale price you would like to prompt when this remnant is assigned in Quote or Order Entry. Continue to tab through this screen to update the Location field and Memo field where applicable. If the Vendor Invoice field is blank at the time the remnant is moved to a Remnant Product Code, the system will automatically write an entry of “Remnant” in this field so the inventory will not display on any Inventory Not Paid reports. Click the Save button at the top left of this screen to continue with conversion. When you click “Yes” at the Are You Sure box, the system will prompt the following:
If you select “Yes,” the system will then prompt the following: Enter New Product Code. If you are moving an existing roll good item with a Width Factor ID (01, 02, 03, etc.) to a Product Code with an Each Factor ID (02, 08 or 07) the system will automate the process of converting it to a remnant. Please Note: the Product Code you are moving the remnant to must first be designated as a “receiver” Product Code via checking the Remnant box in Product Code Maintenance. When the move is successful, the system will prompt the following: Available Remnant Moved. Click OK and the system will prompt the following: Inventory Updated. Click OK again to complete the process. Exit out of the existing Edit Inventory Item screen and locate the new remnant under the new Product Code. The remnant item will appear as follows:
Once an item is designated as a remnant and moved to a designated Remnant Product Code, the system will change the Quantity Received to “1”, multiply the length times the width and multiply that with the existing unit costs to determine the Cost, Overbill, and Freight totals, and then display the width and length in the Size field. The width will come from the existing Width Factor ID and the length will come from the On Hand field when the conversion takes place.
In the Quote and Order Entry modules, when a remnant item is selected, the system will write an F6 Comment Line to display the width and length of the remnant for the customer. Please Note: when you move remnants from a Product Code with a Factor Width, you will still see the original inventory record with a 0.00 On Hand quantity. It will need to be purged through the Inventory Purge module to remove from the screen. One additional note on moving remnants from one Product Code to another has to do with the Inventory G/L Account. If the Inventory G/L Account of the new Product Code is different from the existing Product Code, the system will make an automatic adjustment to credit the old account and debit the new account.
Before you begin creating and selling remnants, you should understand how job costing and salesperson commissions will be impacted. If you are losing money on a remnant, the job costing will reflect that on the overall job and bottom line profit and profit margin. However, the salesperson’s commission will not be negatively impacted as long as you have enabled the Remnant Commission control in Company Control 2. The Commission Base will be calculated on all material and labor line items, with the exception of any Remnant Line Items. The Commission % will display as the regular commission set up in Salesperson Maintenance, but the Commission Amount will actually reflect regular commission plus the remnant sales commission (remnant commission will be paid on the gross sale of the remnant). Where there are remnant commission sales, the system will display an “R” to the right of the Commission Total as follows:
Also, after you enter through the Commissions box, where remnant commission exists, the system will prompt the following:
The last area to be impacted by the Remnant feature is the Salesperson Payables module. When you print the Commission Report, it will display any remnant sales and indicate that the commission has been *INCLUDED* in the total commission paid on the job.