Inventory Glossary / Key Terms

Things to consider

● This feature is for Customers with Inventory already turned on.

● The Inventory module is a feature flag - please reach out to your

Customer Success Manager to enable this feature for you.

TABLE OF CONTENTS

Glossary / Key Terms

✓ Truck / Warehouse - physical storage of inventory parts

✓ Availability buckets - reflect how many items there are in stock

on a truck / warehouse

○ Qty On Hand = total qty of items updated by inventory

receipts in their final status

○ Qty Reserved = Qty On Hand with non-empty Job / Project

○ Qty Available = Qty On Hand - Qty Reserved

✓ Free stock - items that are not reserved for any Job / Project (will

have null instead of Job / Project ID link in the Inventory Quantity

db table (Dashboard Module)) = Qty On Hand with empty Job /

Project

✓ Job / Project Stock - items that are received for a particular Job /

Project = Qty On Hand with non-empty Job / Project

✓ Item (Product) - an item in the item list refers to any specific

product or service that is being ordered from the seller (vendor).

Each item in the list typically includes several key details to ensure

clarity and accuracy in the order.

✓ Item Type - this is an attribute of an item that allows

distinguishing between inventory items, services, and fees and

determines the system behavior from the accounting standpoint:

○ Inventory - is used for identifying inventory items that can

increase and decrease truck / warehouse stock.

○ Non-Inventory - is used for identifying non-inventory items

or services that do not affect warehouse quantities and costs

and cannot produce any asset transactions.

○ Fee - behaves like a non-inventory item, but can also be

used as a default charge / fee automatically added to

invoices.

✓ Valuation - the dollar amount associated with the goods in a

company’s inventory.

✓ Valuation method - the formula of calculating item cost on its

issue from stock.

○ Standard - item unit cost will be taken from the vendor list if

any or directly from the item.

○ (Moving) Average - item unit cost is calculated as total cost

of items on the inventory cost layer divided by the total qty

of those items.

○ FIFO - the earliest available item receipt unit cost is taken.

○ LIFO - the latest available item receipt unit cost is taken.

✓ Inventory Key - a unique identifier of an inventory record in BO

that consists of:

○ Item (Product.id)

○ Valuation Method (Product.valuationMethod)

○ Department (Department.id)

○ Warehouse (Warehouse.id)

○ Job (Job.id)

○ Project (Project.id)

○ Project Phase (ProjectPhases.id)

○ Receipt Number (PurchaseOrderReceipt.receiptNumber) -

applicable to items with FIFO / LIFO valuation method

○ Receipt Date (PurchaseOrderReceipt.createdBy) -

applicable to items with FIFO / LIFO valuation method

✓ Transfer (Inventory Transfer) - refers to the process of moving

inventory items from one location to another within a company.

○ This can occur for various reasons and in different contexts:

■ to balance stock levels across multiple locations

■ to move items closer to customers for faster shipping

■ to consolidate stock for efficiency

■ to return unused job/project stock back to available for

usage free stock

■ to correct a mistake in the inventory key

✓ Physical Count (Stocktake, Inventory Count) - the process of

manually counting the actual items in inventory to verify the

quantities and condition of the goods on hand.

○ This process is a crucial aspect of inventory management for

several reasons:

■ Accuracy of inventory records

■ Financial reporting and compliance

■ Loss prevention and control

■ Effective purchase order management

✓ Inventory Issue - a document acknowledging the usage of

warehouse stock. Once the issue is posted, the quantity on hand

for this item will be decreased.

✓ Transaction Log (in the context of BuildOps inventory

management) - a chronological record of actions or events that

allows for data recovery, auditing, and ensuring the consistency

and integrity of data related to Actual values of the job/project

budget as well as non-job and non-project operations that require

reconciliation and reporting.

✓ Transaction Type (in the context of this specification) - a

systematic arrangement or record used to track and summarize

financial transactions related to a specific type of asset, liability,

income, or expense. Reflected in the database as

TransactionLedgerEntry.transactionType.

○ Possible values of transaction type refer to the account types

in financial accounting:

■ Asset - represents resources that a company owns or

controls, such as cash, accounts receivable, inventory,

buildings, and equipment.

■ Liability - represents obligations or debts that a

company owes to external parties, such as unfinished

work, loans, accounts payable, and bonds payable.

■ Expense - represents the costs associated with

operating a business, including salaries, rent, utilities,

and supplies.

✓ Purchase Receipt / Receipt - a document acknowledging the

receipt of goods / services

✓ Bill of Materials (BOM) - a list of inventory parts required to

implement the scope of work agreed with the client of a project /

job

✓ AP Bill / Bill - an accounts payable document that shows amount

owed to vendors / suppliers / subcontractors; shown as a liability

on the company’s balance sheet.