Legend's Buy Out Feature Saves You Money

by Paul Reynolds

continued from Did You Know?
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What does it cost you to buy a part locally? Your counterman has to find the part and issue a purchase order to buy it. Than you have a driver go pick it up. You have to process the paperwork and pay the supplier for it. If you do this 50 times a day, the cost of providing superior service is extremely high.

The buy out function in Parts Order Entry and Repair Order Entry can help you reduce the number of buyouts you do each day. Most people use a bill-only part to charge the customer for parts you buy locally. A bill-only part is not in the inventory file and no usage history is maintained for purchasing calculations.

You can sell a part in the inventory file as a buy out. Enter the part number in Parts Order Entry or Repair Order Entry. Enter the PF4 key at the quantity prompt. The program will prompt for a reference number, cost, price, and quantity. Quantity on hand of the part is not updated so you do not need to post a packing slip. Usage history and picks on the part are updated. This information will help you decide whether to stock the part and increase your inventory level.

Using the buy out routine to sell locally purchased parts has several results. The first is a better-stocked inventory. You will provide faster customer service since you have the part rather than having to find it. Finally, you will reduce the expensive practice of buying parts locally.

Paul Reynolds is Product Architect for Karmak, Inc. Customers look for his name on the class roster at training sessions and there are seldom any empty seats.

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