Computerized inventory monitoring and verification system and method

Abstract: A system and method for monitoring and verifying inventory is provided. The system comprises a portable computer with a printer and modem all "cabled" together and maintained in a carrying case. The portable computer communicates with a mainframe computer on which certain dealer inventory information is maintained. Software, residing on a disk which is accessible by the portable computer, allows for the input of dealer codes which are used to identify inventory information which is downloaded from the mainframe computer to the portable computer. The inventory information is used to support an audit of a dealer's inventory. The system of the present invention provides an auditor with an up-to-date record a dealer's current inventory. The system also provides the auditor with a means for printing out a checklist for use in undertaking the inventory, for preparing reconciliation reports for verifying the auditor's findings with the dealer and input means for inputting the results of the inventory. Ultimately, a final inventory report can be printed which includes the present status of all inventory items and any and all charges collected.

Description: The present invention relates to a method and system for monitoring and verifying inventory. The monitoring and verification of inventory is a necessity in a wide variety of industries. Virtually every manufacturer who stores his goods in a warehouse for any period of time must monitor and verify the type and quantity of goods in inventory. This process is not limited to those who make their own products, for instance, where a softdrink company uses outside bottlers to manufacture its product, the softdrink company must periodically visit the bottler to establish raw material usage and actual finished product inventory. Still further, finance companies who rely on the goods in the possession of a dealer as collateral must frequently establish the location and condition of such goods. The financing of retail inventory, known as "floorplanning", is primarily "pay-as-sold" financing. With this technique, items are first purchased by a finance company and then shipped to a dealer or distributor. When an item is sold, the dealer pays the finance company the purchase amount plus the applicable interest charges. The finance company retains title to the inventory as collateral until the "loan" is paid off. As such, the finance company, to protect its interests, must verify the status of the items maintained by the dealer on a regular basis. To ensure that all financed items are at the dealer's location and in saleable condition, representatives of the finance company visit these locations to inspect the inventory. This inspection process is known as an "audit" or "floorcheck." With most current systems and methods, when a representative of the finance company (an auditor) arrives at a dealer location, he begins the audit by performing a physical inventory of all financed items (Fig. 1 is a flow chart depicting this prior art work flow). This usually involves a check of the serial numbers of the items, but, in certain situations, may be simply a check of the items' model numbers. The status of each item is recorded, with particular attention paid to those items that are not found in inventory and are not yet sold (e.g., returned to manufacturer, in for repair, etc.). The results of the physical inventory are reconciled with the dealer against his records. An invoice is prepared for insurance premiums, overdue charges, interest charges and all items which have been sold. Money is collected from the dealer for the amount owed. The auditor leaves the dealer a copy of each inventory inspection sheet with the handwritten notations of each item's status. Lastly, a copy of the auditor's paperwork is sent to the finance company with the inventory results and remittances. (If the auditor is performing the work on a charge basis, he must prepare a bill to assess the proper party for the expense of the audit.) Typically, the inventory is performed from an Inspection Checklist which is produced by one of the finance company's computers and mailed to the auditor. In many cases, a week's worth of checklists are prepared at once and mailed together to the auditor. Because of workload, mail delays, charge based audits and other factors, a checklist may be as many as 7 to 10 days old at the beginning of the inventory. Since dealers are obligated to pay the finance company for an item as soon as it is sold and since new financed inventory items are continually added, the auditor must contact the finance company just prior to the audit to manually update the checklist to determine exactly which items should be examined during the inventory. This procedure generally requires from five to twenty five minutes on a telephone at the dealer's place of business, usually at long distance rates. Sometimes, after the checklist has been updated, the sequence of the items on the checklist is not appropriate to smooth conduct of an inventory. In such cases, the auditor will prepare a new handwritten checklist to facilitate the inventory procedure. This is a time consuming task. As the inventory is taken, the auditor marks codes on the checklist to identify the status of the various items (e.g., = serial number checked, PD = Paid off, DEM = demo, etc.). He searches for and attempts to determine the status of every item on the list. If the auditor does not find an item which is on the checklist, no status is indicated and the item must be reconciled with the dealer unless previously paid off. When the physical inventory is complete, all items not found, which have not been paid off, are noted. These items require reconciliation with the dealer's records. In many audits the list of items is so large that the auditor must spend a significant amount of time reviewing the items on the checklist to ensure that all applicable items are reconciled with the dealer. Frequently, the reconciliation process requires more time than the physical inventory. Because of the intense concentration involved, the size of the inventory and the number of handwritten comments and codes, items that have already been sold may be missed by the auditor. In such situations, no collection is made for these items and the finance company is subject to financial loss. After the reconciliation, the auditor prepares an invoice indicating the amount to be paid by the dealer. Data items (e.g., serial numbers, item numbers, model numbers and amount due) ore copied from the checklist to an invoice. The amount owed by the dealer is totalled from: (1) the items which have been sold but not yet paid off; (2) outstanding charges; (3) interest payments; and (4) insurance premiums. The auditor receives payment from the dealer to resolve the total amount owed. For audits which are on a charge basis, the auditor must record his time as well as other inventory information on a form. The form is sent to the finance company's authorizing office, the cost of the audit is calculated and a bill is sent out. This task is particularly onerous if the audit involves several clients. A motorcycle dealer, for instance, could sell products made by four different manufacturers and managed (financed) by four different clients (finance companies). In such a case, the cost to each client is calculated based on a percentage of the number of items managed by the client as compared to the total number of items in the inventory. All data from the audit is then sent to the authorizing office. Since a significant number of auditors do not work near a finance company office, the paperwork is either mailed or delivered overnight by courier. When the paperwork is received, the auditor's Inspection Checklist is analyzed, and the information entered into an office computer (this could be the finance company's mainframe computer, but could also be any other computer which uploads information to the mainframe). Since the data is entered from the comments and handwritten codes provided on the auditor's checklist, numerous errors tend to occur. Often, significant sums received from dealers are placed in suspense, that is, not applied to any account, because the checklist and invoice are either unreadable or incorrect. This results in financial loss to the finance company and damage to customer goodwill. When a company employs hundreds of auditors who perform over 1,000 audits daily, the auditing process represents a significant cost of doing business. As such, every extra step or cost incurred by an individual auditor is multiplied so that inefficiency becomes extremely expensive. As described above, a number of problems are inherent in the present (prior art) audit system: inventory checklists are frequently out of date at the time of the audit; (2) the auditor and a finance company representative have to update the checklist on the phone involving a large expenditure of time and (usually) long distance charges; (3) auditors spend a lot of time manually preparing inventory worksheets, invoices, and other documentation; (4) reconciliation based on handwritten notations on checklists requires too much time; (5) the handwriting of auditors is frequently unreadable, leading to inaccurate computer input and loss of financial remuneration; (6) involvement of the finance company offices in the audit process is intensive and time consuming; and (7) mail and overnight shipping charges constitute a large expense. Accordingly, it is an object of the present invention to provide a system and method for alleviating the foregoing problems and improving upon the prior systems and methods. US 4,636,950 discloses an inventory management system comprising a plurality of short-range radio transponders, each located on a particular respective product unit and including a RAM containing the serial number of the associated product unit and responsive to respective encoded radio signals from one or more interrogator transceivers at the dealer's location. The interrogator transceivers are connected to a modem which is connected by a telephone line to a remote modem at the distributor's location. The remote modem is controlled by a computer system at the distributor's location and under control of the computer system, the interrogator transceivers detect radio signals from the transponders (indicative of the presence of a product corresponding to the serial number in the RAM of the transponder) and send the corresponding inventory information via modem to the computer system. Accordingly it is clear that the transponders each store information regarding an individual product unit, do not receive any information (other than control signals) from the distributor's computer system, and do not display information. Furthermore there is no facility for communicating software changes. The invention provides a system for monitoring and verifying inventory comprising: first processing means, including data storage means into which data is written and from which data is read, said data storage means being capable of storing information regarding at least one dealer's inventory; input means for communicating with said first processing means and operable by an operator to enter and/or retrieve information for writing into and/or reading from said data storage means; display means for displaying information that is entered and retrieved; second processing means, including data storage means into which data is written and from which data is read, said data storage means storing information regarding a plurality of dealers' inventory; first communication means for transmitting information from said first processing means through telephone lines to said second processing means and for receiving information from said second processing means through telephone lines; second communication means for transmitting information from said second processing means through telephone lines to said first processing means and for receiving information from said first processing means through telephone lines; software means comprising a dealer inventory request means for prompting for dealer identification through said display means, accepting dealer identification input through said input means, formatting said dealer identification input into a form understandable to said second processing means, and causing said first communication means to transmit said formatted dealer identification to said second processing means; dealer inventory reply means for locating and retrieving dealer inventory information stored on said data storage means associated with said second processing means, wherein said dealer inventory information corresponds to said dealer identification, and causing said second communication means to transmit said dealer inventory information corresponding to said dealer identification to said first processing means; dealer inventory receipt means, included in said software means, for verifying that said inventory information was transmitted to said first processing means correctly and for storing said dealer inventory information on said data storage means associated with said first data processing means; software change means, included in said software means, for prompting for a software change code through said display means, accepting a change code input through said input means, formatting said change code input into a form understandable to said second processing means, and causing said first communication means to transmit said formatted change code to said second processing means; software change reply means for locating software changes stored on said data storage means associated with said second processing means, wherein said software changes correspond to said software change code, and causing said second communication means to transmit said software changes corresponding to said change code to said first processing means; and software change receipt means, included in said software means, for storing said software changes on said data storage means associated with said first data processing means such that said software means is altered in accordance with said software changes. The invention also provides a method of monitoring and verifying inventory comprising the steps of: providing at least one preprogrammed portable computer with data storage and retrieval equipment; providing an input device for use with said preprogrammed portable computer; providing an output display device for use with said preprogrammed portable computer; providing a communications device for use with said preprogrammed portable computer; providing a preprogrammed mainframe computer with data storage and retrieval equipment; providing a communications device for use with said preprogrammed mainframe computer; inputting dealer codes through said input device in response to prompts displayed on said display device of said preprogrammed portable computer; formatting said dealer codes into a form understandable by said mainframe computer; establishing communications between said communications device associated with said portable computer and said communications device associated with said mainframe computer; transmitting said formatted dealer codes from said portable computer, through said communications device associated with said portable computer to said mainframe computer through said communications device associated with said mainframe computer; locating and retrieving dealer inventory information, on said mainframe data storage equipment corresponding to said dealer codes; transmitting said corresponding dealer inventory information from said mainframe computer through said mainframe communications device to said portable computer through said portable computer communications device; verifying that the information received by said portable computer was received correctly; storing said dealer information on said portable computer data storage equipment; displaying on said portable computer display equipment at least one prompt for a software change code; inputting a software change code through said portable computer input equipment; formatting said change code into a form understandable by said mainframe computer; establishing communications between said mainframe communication service and said portable computer communications device; transmitting said formatted change code from said portable computer, through said portable computer communications device to said mainframe computer through said mainframe communications device; locating and retrieving software changes on said mainframe data storage equipment corresponding to said change code; transmitting said corresponding software changes from said mainframe computer through said mainframe communications device to said portable computer through said portable computer communications device; and storing said software changes on said mainframe storage equipment such that the programming of said portable computer is altered in accordance with said software changes. Preferred embodiments are defined in the dependent claims. To illustrate the capabilities of one embodiment of this system and method, reference is made to the auditing of the inventory of retail dealers for a finance company. This reference should not be construed as a limitation on the application of this system and method to other inventory situations. The system of a preferred embodiment of the present invention includes a case, containing within it a lightweight microcomputer with at least one disk drive, a printer, and a modem. Software, for substantially automating the audit process is stored on a floppy disk or a Winchester drive where it is accessible by the microcomputer. This system is preferably portable and designed so that an auditor can use all the components without removing them from the case and without attaching cables, loading paper, etc. Since most auditors do not work out of an office, the system of the present invention can be used at home, in a hotel room, at a dealer site or any other temporary workplace. An auditor will generally use the system of the present invention prior to undertaking any audits for a given day to obtain current inventory information and to prepare forms for that day's dealer inventories. The auditor turns on the microcomputer, logs on via a password and connects a telephone cable to any standard telephone jack. In response to prompts displayed on the display screen of the microcomputer, the finance company office number and dealer number corresponding to each dealer scheduled for an audit are entered through the computer keyboard. The computer then automatically dials a mainframe computer, sends the mainframe a request for information, receives, in turn, the dealers' inventory data and stores it in a semi-permanent memory device (e. g., on a Winchester drive). When these steps are completed (usually three to ten minutes), the auditor can review the status of each dealer's inventory from a number of displays. For example, a summary showing financial information and totals by manufacturer, status code, etc. is available as well as detail for each item on file. Notes from the finance company about the account are also downloaded, and are accessible by the auditor. After reviewing the information, the auditor prints one or more of six different reports specifically designed for use in conducting a physical inventory. The selection is based on the type of product being checked, the manner in which the product is stored, the quantity of products and the auditor's preferences. At least one inventory report is ultimately selected for each dealer being checked that day. At the dealers' location the auditor performs the physical inventory, noting the status of each item on the inventory checklist. At the conclusion of the inventory, the auditor enters the status of each item in the portable computer from the checklist. In order to minimize the amount of keystrokes, the auditor points to the inventory item on the display using the cursor controls keys and makes a one or two key entry for the status code. (It should be understood that the system and method of the present invention are designed to minimize keystrokes and to be as "user friendly" as possible. The auditor is guided through the audit process by a series of display screens which encourage the appropriate actions.) After the entry of all the status codes, the system of the present invention will automatically display or print all items to be reconciled with the dealer. This ensures that all items are accounted for. If an item is not found and not out for repair or the like, the balance due for that item is accumulated. When the reconciliation is complete, the auditor enters the amount the dealer will pay for all "missing" items. In order to minimize errors, it is not necessary to type the amount owed for each item directly, rather, it is possible to press one key for the total amount for the item, another key for the past due amount or a third key for a percentage of the total. Upon request, the system prints a Remittance Advice form (invoice) which includes a description of each item, charges and insurance premiums (if applicable) and total amount due. After the invoice is complete and printed, a Final Inventory Report is printed which indicates the status of every financed item in stock, the amounts owed and collected and total items by status code. This report can be customized to present a sequence most desirable to the dealer and auditor. The inventory process is repeated at each dealer on the day's schedule. If the inventory results must be re-keyed into a computer, a list is printed which includes all inventory items which have had a change of status. Alternatively, if the finance company's mainframe is appropriately configured, the status of the inventory can be automatically transferred via a modem and phone lines to the mainframe. In this embodiment of the present invention, the system prepares the data for transfer to the mainframe at the same time the next day's inventory records are requested. If the audit was performed on a charge basis, the auditor enters the time spent on the audit and the system automatically prints a billing statement that allocates the cost to each participating client. Thus, the auditor does not need to undertake the calculations necessary to determine costs and allocations and then manually prepare a billing statement. The present invention is also self-modifying. In other words, it can automatically incorporate changes to itself required by changes in business practices, company policies, technology or laws. Changes are developed and stored on a mainframe computer at the finance company. Upon request, the system establishes communication with the mainframe and retrieves the changes. The system then takes the necessary action to incorporate the changes. There are no files to be copied or deleted by the auditor. It is all done for him. A preferred embodiment of the invention is described below by way of example only with reference to Figures 1 to 10 of the accompanying drawings, wherein: Fig. 1 is a flow chart depicting the prior art work flow; Fig. 2 is a schematic diagram of a preferred embodiment of the system of the present invention; Figs. 3A - 3M together comprise a flow chart illustrating the computer program and operative steps associated with a preferred embodiment of the present invention; Fig. 4 is a representation of a portion of a Small Dealer Inspection Checklist; Fig. 5 is a representation of a portion of a Preliminary Inventory Checklist; Fig. 6 is a representation of a portion of a 0-9 Inventory Count Sheet; Fig. 7 is a representation of a portion of a Model Check Count Sheet. Fig. 8 is a representation of a portion of a Remittance Advice form; Figs. 9A and 9B together are a representation of a portion of a Final Inventory Checklist; and Figs. 10A - 10C together comprise a flow chart depicting a typical work flow in accordance with the system and method of the present invention. As indicated in a previous section, reference is made to the auditing of the inventory of retail dealers for a finance company to illustrate the features and capabilities of the system and method of the present invention. It should be understood that this is a description of only one preferred embodiment and other embodiments may be accordingly prepared by one of skill in the art. Fig.2 schematically illustrates the system of the present invention. The system includes: portable data processing equipment at a plurality of stations 100, 102, and 104; and mainframe data processing equipment at another station 106. (Although only three portable data processing stations are shown in Fig. 2, it should be understood that it is preferred to use more stations than three). In a preferred stations 100, 102 and 104 are not at a fixed location and are each remote from the mainframe data processing station 106. The mainframe data processing equipment 108 is typically located at the finance company home office. In a preferred embodiment of the present invention, the mainframe data processing equipment comprises an IBM® 3090 computer; however, any general purpose digital computer can be employed which has sufficient speed and capacity for processing data in the system. Also located at the mainframe data processing station 106 is a data storage system 110 which supports the mainframe 108 at the mainframe data processing station 106. In a preferred embodiment of the present invention a lightweight (portable) microcomputer ("PC") 112, such as an NEC® Multispeed HD, is located at each portable data processing station 100, 102 and 104. The portable computer 112 is preferably supported by a Winchester drive ("hard disk") storage device (not shown) and a floppy disk drive (not shown) which is capable of reading and storing data to and from properly formatted floppy disks (not shown). Each portable data processing station also includes a modem 114 (preferably an internal modem), which is used for sending and receiving data over telephone lines 116 to a modem 118 provided at the mainframe data processing station 106. Additionally, output printing equipment 120 is provided at each portable data processing station 100, 102 and 104. This printing equipment 120 permits hard copies to be made of any data stored or received by the portable computer 112. All the equipment located at each portable data processing station is preferably "cabled" together and contained in a lightweight, durable carrying case 122. Thus, all the equipment at these stations 100, 102 and 104 can be permanently maintained in the case 122. When an auditor wishes to use the system of the present invention, he opens the cover (not shown) of the carrying case 122 and raises a display screen (not shown) associated with the portable computer 112. The PC is turned on and a routine is invoked which automatically brings a menu to the display. In order to prevent theft of data, system vandalism, industrial espionage, etc., a security function is provided which governs entry to the system of the present invention (See Fig. 3A). When a user wishes to access the system of the present invention, an initial screen is presented which prompts the user for a number and a password (see Table I). If the user does not respond with the correct information a message appears and the operator is prompted to re-enter the correct term. If the proper term is not entered within three tries, the system will automatically exit without granting access to any further screens. Each potential user of the system is assigned to a particular security level based on his responsibilities. The security level is used to limit the system functions which can be accessed by the user. Initially, every user of the system is assigned a user number and a password. These terms are established in the system by authorized persons and stored in encrypted format on the PC's hard disk (See Fig. 3L). The encryption algorithm ensures that the passwords and user numbers can not be viewed by unauthorized personnel, even those skilled in microcomputer use. (As an added security measure, the password is not shown on the display as it is entered.) Table II shows the Update User Security screen which permits an authorized person to establish user ID's and passwords for up to five users on a given PC. In order to add a user, a user number from 1 to 5 is chosen. The name of the user, his branch number and his security level are input. A password is also chosen and entered. After all the users have been added, a function key is pressed to save the data. When the correct user number and password are entered, a Main Menu (shown in Table III) is presented. This menu provides a single entry and exit point to all further system functions and screens (See Fig. 3A). In order to select an option, the number of that option is typed and 'Enter' is pressed. The system of the present invention will then display the next screen appropriate to the selected option. Additional information is available, through a "Help" window, for each screen as it is displayed. The Help window for a particular screen is written over the screen, generally using only a portion of the PC's display. These Help windows, which may be requested at any time, are accessed by pressing a particular function key (F1). Before undertaking an audit, an auditor must obtain information about a customer and his inventory from the finance company. This information is transferred from the finance company's mainframe computer 108 to the hard disk on the auditor's PC 112. In order to specify the appropriate data to be downloaded from the mainframe 108 a Download Dealer Data screen (shown in Table IV) is used. This screen, which is accessed by choosing an option (1) from the Main Menu, provides a series of prompts for inputting up to 12 dealer identification codes. In a preferred embodiment of the present invention, the dealer codes are comprised of both a branch number and a dealer number. In this embodiment, a default branch number is provided to minimize typing. This default number is automatically prefilled to the branch number field when 'Enter' is pressed. Still further, the immediately preceding branch number can be repeated by typing a slash ("/") in the first position of the branch number field, and pressing 'Enter'. When all desired dealers have been entered through the Download Dealer Data screen, the system automatically formats the data into a form understandable to the mainframe 108, dials the preset number of the mainframe 108 and transmits the dealer codes (See Fig. 3B). (The dialing, transmitting and receiving of data is performed by the PC's modem 114 which is connected, by the auditor, to any standard telephone jack. On the other end of the line, the mainframe 108 transmits and receives the data through its own modem 118.) The mainframe 108 treats the transmitted information as a request for the inventory records of the identified dealers and sends the appropriate data back to the PC. Upon receipt of all of the files, the system of the present invention verifies that the communications process was successful, disconnects the phone line, stores the inventory information in a random access disk file on the hard disk, and issues a call to a third party product installed on the disk (OPT-TECH SORT® Software by Opt Tech Data Processing) to build sorted key files for sequencing the data. Each dealer file is processed in seven phases. The first phase sets up the dealer file and places date in it. The next six phases sort the dealer file and set up indices to keep the file in sequence. (These last six phases are carried out by the OPT-TECH SORT® software). A list of dealer files currently stored on the disk is automatically maintained by the system and is available for review by selecting Option 2 from the Main Menu. Table V shows the Dealer File Management screen which is displayed with the selection of Option 2. From this screen, the user can delete a dealer file, sort the data in a special sequence for handling certain inventories, or select a particular dealer for further action (See Fig. 3C). An arrow can be moved up and down the screen, with cursor control keys, to point to the desired dealer for which action is required. In order to select a dealer for audit and/or review purposes an appropriate function key (F2) is pressed. After this selection, the user is not required to type the dealer or branch number again. When the Dealer File Management screen is displayed, a message may appear in the date column for a particular dealer. These messages indicate that the data was not transferred correctly from the mainframe. For example "DLR NOT FOUND" means that the dealer code specified does not exist on the mainframe, "DLR PAID OFF" means that the dealer has no items with a balance due, "INCOMPLETE DLR" means that an error occurred during transmission and only a partial file was downloaded and "OUT OF BALANCE" means that the total outstanding charges and the number of items downloaded versus the totals maintained by the mainframe do not match. When either of the last two messages appear, the download for the dealer should be retried to obtain the correct data. In order to obtain information about the selected dealer's status and total inventory, a Dealer Summary Display screen (shown in Table VI) is available by selecting Option 3 from the Main Menu. The Dealer Summary Display screen is divided into two parts, the top shows various data elements relative to the financial position of the dealer, while the bottom part shows the number of items, per manufacturer, in the dealer's inventory. From the Dealer Summary Display screen, three other screens may be selected: (a) an Address Display screen (see Table VII) showing the dealer's address and comments about the dealer (usually input to the mainframe by a finance company account manager); (b) a New Status Display screen (see Table VIII) showing the total items and outstanding balance by new status code (new status codes are those input by the auditor following the audit); and (c) a Status Display screen (see Table IX) showing the number of items and balance by old status code (these status codes are those originally downloaded from the mainframe) (See Fig. 3D). These screens are not tied together and can be displayed in any sequence or simply not displayed at all. If it is desired to view a dealer's inventory items in more detail Option 4 (Browse Dealer Data) can be selected from the Main Menu. A Browse Dealer File screen (shown in Table X) lists each item in the dealer's inventory by invoice number, unit ID, product type, manufacturer name, model number and serial number. The user can browse through the file forward or backward at will. Any item can be displayed in further detail by pointing to that item with the cursor and pressing a detail display key (F9) (See Table XI and Fig. 3E). The sequence of the data can be changed by pressing a function key (F8) to display a Sequence screen (shown in Table XII), and selecting any of the available options. The sequence is changed immediately, and the Browse Dealer File screen is returned. No time is taken to actually sort the data on the disk. If a user wishes to display a particular item, a search facility is available to search the dealer file for any known field element (See Fig. 3E). This facility is accessed by pressing a function key (F3) from the Browse Dealer File screen. A Fast Item Search Facility window is then displayed (shown in Table XIII) which permits selection of the field to be searched, input of the term to be found, and input of the starting point for the search (i.e. from the first item in the file or from the item to which the cursor is pointing). If the search is successful, the pointer will stop at the first item that meets the search criterion. In order to enter the results of the audit, an Enter Inventory Results screen, shown in Table XIV, is available by choosing Option 5 from the Main Menu. This screen is very similar to the Browse Dealer Data screen, but includes the ability to accept the input of item status codes (See Fig. 3F). Before the status codes are input, the list of items to be inventoried should be sequenced in the manner used or to be used in the taking of the inventory. Just as with the Browse Dealer Data screen, the Enter Inventory Results screen may be sequenced in a variety of different ways by using a function key (F8) and making a selection from the displayed window. The status of an item is entered by pointing to that item using the pointer (cursor control keys) and pressing the appropriate function key (the available function keys are displayed on the bottom of the screen to assist the user). Pressing one function key (F2) places a check mark next to the item and indicates that the serial number has been verified on the item. Pressing another function key (F3) shows that the serial number was seen on the original carton. If the proper code is not known, pressing the apostrophe (') key provides a list of status codes (shown in Table XV) in a window on the screen. The appropriate code can then be selected by moving the pointer adjacent to the code and pressing 'Enter' or by pressing 'Page Down' and entering the code directly. Other special codes are also available for selection through other function keys (e.g., F4 = Model, F6 = Rem and F10 = Sold) which provide the auditor with additional flexibility in designating the actual status of the items. In practice, the user points to each item in turn and presses a single key (in most cases) to record the status code. It is important to note that the items' serial numbers, model numbers, etc. are not typed, rather only a single key is pressed to indicate the present status of each item. If the item is in stock, either F2, F3, or F4 is pressed to record the category, i.e.: the serial number was checked on the item, the serial number was checked on a sealed crate or the model number was checked. If another code is required, a single key (') is pressed to display additional codes, as described above. If an item is not found, it is left blank and assumed to have been sold. This status is verified with the dealer during the reconciliation. Frequently, the same status code must be entered for a number of items in a row. This is particularly common in model number checks where serial numbers are not important. A status code can be repeated by pressing the 'End' key and responding to a prompt asking for the number of times the code should be copied. This technique can be used to clear a series of items whose codes were entered incorrectly by copying a blank status code. After all the status codes have been entered, the auditor must determine which items should be reconciled with the dealer. The selection of Option 6, from the Main Menu, displays a Display Items Not Found screen (shown in Table XVI). This screen automatically displays all items which were not found during the inventory. This screen is almost identical to the Enter Inventory screen except that all "found" items are omitted. If any items displayed on this screen are found during the reconciliation with the dealer, the new status codes are entered in the same manner as before (See Fig. 3G). All such items are automatically deleted from the Display Items Not Found screen when the pointer is moved. When the reconciliation is completed, Option 7 is selected from the Main Menu to display the Enter Remittance Information screen shown in Table XVII (See also Fig. 3H). Such items include those which have been sold but not yet paid for, those for which there is a past due amount and those for which the dealer wishes to make a payment. Since some dealers do not pay past due amounts, pressing a function Key (F2) will change the display to filter out those items. (Pressing the function key (F2) again will bring back the original display.) The Enter Remittance Information screen includes the item's unit ID, the model number, the serial number, old status, new status, present balance, amount past due and amount to be collected. The screen has two cursors to aid in entering the amounts to be collected. The first cursor, a pair of arrows, points to the item's serial number, while the second cursor, a blinking underscore, appears in the amount collected field. Both cursors move up and down when the cursor control keys are pressed. In order to record an amount to be collected the semicolon (;) is pressed to enter a past due amount and the apostrophe (') is pressed if the present balance is to be collected. When a percentage of the present balance is to be collected, a function key (F4) is pressed to enter the percentage. Another function Key (F5) is pressed to enter the selected percent of the original balance. Alternatively, the user can enter an amount directly by using the numeric keys. At any time, a subtotal of the amount to be collected can be displayed by pressing a function Key (F6). When entry of the amounts to be collected is completed, and 'ESC' is pressed, the system automatically displays a supplementary Enter Remittance Information screen (shown in Table XVIII) to force entry of any interest charges and insurance premiums due. These amounts can be entered by pressing the apostrophe (') to copy the present balance or by direct numerical data entry. When an audit is performed on a charge basis, a bill must be prepared to assess the client for the cost of the audit. The system of the present invention can automatically prepare such a bill with certain inputs (See Fig. 3J). The preparation of a bill begins with the selection of Option 11 from the Main Menu which displays the Time and Allocation Sheet - Select Dealers screen (shown in Table XIX). An 'X' is placed next to each dealer and client participating in the audit. By way of example, on the Time and Allocation Sheet - Select Dealers Screen, shown in Table XIX, a single motorcycle dealer has three products which are being audited. Each product is listed under a separate dealer number (i.e., Joe's Cycle Shop No. 11034, Harley of Chicago No. 33260 and Joe's Cycle Shop No. 20321) and office name (client). As such, each office (client) is charged for a portion of the entire audit. When multiple clients are selected, each will be printed on the final Time and Allocation Sheet and the cost of the audit will be automatically allocated by the system to the clients, according to the number of items audited. If only one client is selected, the entire cost of the audit is automatically charged to that one client. After selection of the appropriate client(s), a function key (F10) is pressed to display the Time and Allocation Sheet - Enter Date & Time screen (shown in Table XX). This screen provides a plurality of input fields which allow the auditor to specify the time spent on a given audit. (Since more than one auditor can work on an audit, an input field is provided for the auditors' number (FSR No.)). Up to 20 different time periods and/or auditors can be entered for a single audit. After all the times are input, a function key (F10) is pressed to print the Time and Allocation Sheet (shown in Table XXI). This "bill" can then be sent directly to the client or to the home office for recordation and mailing. A series of reports can be produced by the system of the present invention (See Fig. 3I). When Option 10 is selected from the Main Menu, & Reports Menu screen is displayed (shown in Table XXII). Reports are selected for printing by entering the report number next to the prompt and pressing 'Enter.' If desired, the sequence of the report can be modified before printing by pressing a function key (F8) and selecting a sequence from the displayed window (as shown in Table XII above). The number of copies to be printed can be selected by pressing another function key (F4). The number of copies always resets and defaults to one. Prior to printing any report, the system will request verification that the printer is on and properly loaded with paper. A response of 'Y' begins the printing process while a response of 'N' returns the display to the Reports Menu screen. Any print job can be stopped by pressing the 'ESC' key. Thereafter, pressing 'Y' will stop the report while pressing 'N' will continue the report. If only a portion of a report is to be printed, pressing a designated function key (F2) provides a window in which particular pages can be selected for printing. This function is primarily employed to restart printing if the printer jams or if a page is unreadable. When an auditor chooses not to enter status codes directly into the PC as he conducts the audit, he must work from a document onto which he can record his results. A variety of such documents are available for printing by the system including: a Small Dealer Inspection Checklist, a Preliminary Inventory Checklist, a 0-9 Count Sheet, a 0-9 Count Sheet for Boats, a Yamaha Crate No. 0-9 Sheet and a Model Check Count Sheet. As shown in Fig. 4, the Small Dealer Inspection Checklist provides a columnar list of all items for a dealer and is used when a dealer is too small to effectively use all regular system reports. As shown in Fig. 5, the Preliminary Inventory Checklist is a general use inventory checklist. This list shows each item in detail and may include the total number of items, the total present balance and the total past due amounts for each manufacturer (when sequenced appropriately). As shown in Fig. 6, the 0-9 Inventory Count Sheet is designed to facilitate medium to large inventories by arranging serial numbers in columns. This form places each item in a column according to the last character in the serial number. Within columns, serial numbers are sorted by the last six positions. Only the last four positions are printed unless the number is identical to the previous number; then six positions are printed. The model number is also printed as a reference to assist in item verification. The 0-9 Count Sheet for Boats is identical to the normal 0-9 Inventory Count Sheet except that the last four characters of the serial number are ignored. This is because most boat manufacturers code a date in these last four positions. The Yamaha Crate No. 0-9 Sheet is identical to the normal 0-9 Inventory Count Sheet except that crate numbers are substituted for model numbers. As shown in Fig. 7, the Model Check Count Sheet is used to facilitate audits when model numbers rather than serial numbers are counted. The total items and present balance by manufacture and model number are printed with columns for recording the items counted. In order to assist the auditor and the dealer in the reconciliation process, a model check and a serial number check Reconciliation Report are available. A Reconciliation Report is selected by choosing Option 6 from the Reports menu. This report is essentially a hard copy of the Display Items Not Found screen shown in Table XIV. When the auditors results are manually input into the finance company's mainframe, a Status Report is printed out. This report lists all items that have had a change in status as well as totals for all items printed. This information is thus readily available in readable form and does not have to be gleaned from the auditor's handwritten notes. As shown in Fig. 8, a Remittance Advice (invoice) is a printed list of all items for which the auditor is collecting money. One copy of this report is given to the dealer as a receipt and another copy is sent to the finance company as a back-up or for manual input into the mainframe. As shown in Figs. 9A and 9B, the Final Inventory Checklist provides the dealer and the finance company with a record of the inventory at the end of the audit. A detail line is printed for each item listing, inter alia , new status, amount collected and other information downloaded from the mainframe. A Dealer Totals page, shown in Fig. 9B, prints along with the Final Inventory Checklist. This page includes the total amount collected, the totals by status code (for the newly entered status codes) and the remaining total amount unpaid. The software associated with each PC 112 is configured with a set of default values to be used in certain situations (See Fig. 3K). These values are preset, but can be changed. Selecting Option 12 from the Main Menu brings the Set Systems Default screen (shown in to Table XXIII) to the PC's display. This screen shows all user changeable current default values and provides the opportunity to alter them. It should be understood, that while each of these defaults is overrideable during normal use, the designated override is not maintained when the PC's power is cut off. Programs comprising a portion of the system of the present invention are maintained on a disk as a series of files. As such, it is possible to update the programs by downloading changes from the finance company's mainframe 108 (See Fig. 3M). Selecting option 15 from the Main Menu displays a Download Software Changes screen (shown in Table XXIV). A software update code and a dialing prefix ore entered. When the system is appropriately connected to a telephone outlet (as in the download dealer data function), a function key (F10) is pressed and the request is sent to the mainframe 108. The mainframe 108 responds by sending updated program files and comments describing the changes. The system of the present invention automatically replaces old files with new, updated files. There is no manual intervention required. All comments which have been downloaded are visible by pressing a function key (F2). If no comments are available a message will so indicate. While many offices manually input the auditor's reports into a minicomputer which uploads to the finance company's mainframe 108, the system of the present invention will allow the user to upload status codes and records of the amounts collected to the mainframe directly from the auditor's PC. As with the dealer data download, the system will automatically place the information in mainframe format. When appropriate, the upload information is automatically transferred to the mainframe during the next communications sessions. This is normally when the next day's work is being downloaded from the mainframe to the auditor's PC. Ultimately, the system of the present invention is capable of producing a variety of reports listing the condition of items along with freeform comments. This provides automated, easy to read reports with more detail than is provided by status codes alone. A typical workflow of an auditor using a preferred embodiment of the system and method of the present invention is illustrated in Figs. 3A-3C and 10A to 10C. The auditor begins by turning on the portable computer and printer 202 and running the audit software 204. Immediately a screen is displayed which prompts the auditor to input his User ID and password 206. When the Main Menu is displayed the Download Dealer Data option is selected 208 to obtain information from the finance company's mainframe regarding the present inventory status of each dealer to be audited on that day. The auditor connects the PC (actually the modem) to a phone line 210 and inputs the dealer's codes 212. When the "Transmit" command is invoked (F10) from the Download Dealer Data screen the dealer codes are transmitted to the mainframe and the dealer inventory information is returned 214. The proper receipt of the information is then verified 216. When the download is complete, the Main Menu is again displayed 218 and the Dealer File Management option is selected 220. A Dealer File Management screen is displayed from which a dealer is selected 222. After a dealer is selected the auditor returns to the Main Menu 224. The Display Dealer Summary option is selected 226 which displays a Dealer Summary Display screen. The dealer summary data is reviewed 228 to give the auditor an idea of the scope of the audit. If it is desired to see some of the inventory items in further detail 230, the Browse Dealer Data option is selected 232 from the Main Menu and the items are reviewed 234. Assuming that the auditor chooses to work from a printed checklist rather than carrying the PC, the Reports Menu option is selected from the Main Menu. One form of inventory checklist is selected 240 from the Reports Menu and then printed 242. The auditor then returns the display to the Main Menu 246 and leaves to conduct the inventory 248. Upon completion of the inventory the auditor selects the Enter Inventory Results option 250 from the Main Menu and inputs the new status codes 252. In order to facilitate reconciliation with the dealer, the Display Items Not Found option is selected 256 from the Main Menu. These items are reviewed on the display 258 and the display can then be used to reconcile with the dealer 260, 270. Alternatively, if the auditor and dealer prefer, a hard copy of the Items Not Found screen can be printed as a Reconciliation Report 260-268. The reconciliation is then undertaken from the printed sheet 270. If any items are found 272 during the reconciliation, their new status codes are input 274. If the new status of each item must be input manually in a finance company office 278, a Status Report is printed 280-286. In the last phase of an audit, the dealer must pay the auditor if he owes any money 290. In such cases, the amounts to be paid are entered 292-294 and an invoice with those amounts is printed 296-300. The auditor collects money from the dealer 304 and then prints a Final Inventory Checklist 310-312 for verification of the actual inventory. When the audit is complete, the auditor mails out copies of each printed report to the main office 314. The computer is then shut off 316 and the auditor moves on to his next inventory location.

Claims: A system for monitoring and verifying inventory comprising: first processing means (112), including data storage means into which data is written and from which data is read, said data storage means being capable of storing information regarding at least one dealer's inventory; input means for communicating with said first processing means and operable by an operator to enter and/or retrieve information for writing into and/or reading from said data storage means; display means for displaying information that is entered and retrieved; second processing means (108), including data storage means (110) into which data is written and from which data is read, said data storage means storing information regarding a plurality of dealers' inventory; first communication means (114) for transmitting information from said first processing means through telephone lines (116) to said second processing means and for receiving information from said second processing means (108) through telephone lines; second communication means (118) for transmitting information from said second processing means through telephone lines (116) to said first processing means and for receiving information from said first processing means through telephone lines (116); software means comprising a dealer inventory request means for prompting for dealer identification through said display means, accepting dealer identification input through said input means, formatting said dealer identification input into a form understandable to said second processing means, and causing said first communication means (114) to transmit said formatted dealer identification to said second processing means (108); dealer inventory reply means (108) for locating and retrieving dealer inventory information stored on said data storage means (110) associated with said second processing means (108), wherein said dealer inventory information corresponds to said dealer identification, and causing said second communication means (118) to transmit said dealer inventory information corresponding to said dealer identification to said first processing means (112); dealer inventory receipt means, included in said software means, for verifying that said inventory information was transmitted to said first processing means correctly and for storing said dealer inventory information on said data storage means associated with said first data processing means (112); software change means, included in said software means, for prompting for a software change code through said display means, accepting a change code input through said input means, formatting said change code input into a form understandable to said second processing means (108), and causing said first communication means (114) to transmit said formatted change code to said second processing means (108); software change reply means for locating software changes stored on said data storage means (110) associated with said second processing means (108), wherein said software changes correspond to said software change code, and causing said second communication means (118) to transmit said software changes corresponding to said change code to said first processing means (112); and software change receipt means, included in said software means, for storing said software changes on said data storage means associated with said first processing means such that said software means is altered in accordance with said software changes. A system according to claim 1, wherein said software means further comprises dealer list means for maintaining and selectively displaying on said display means a list of all dealer files stored on said storage means associated with said first processing means (112). A system according to claim 2, wherein said software means further comprises dealer selection means for accepting a dealer selection selected from said display of all dealer files by said dealer list means, wherein said dealer selection is input through said input means, and for causing said dealer information, corresponding to said selected dealer and maintained on said storage means associated with said first processing means, to be accessed and maintained for later action. A system according to claim 3, wherein said software means further comprises dealer detail information display means for selectively displaying, on said display means, portions of said dealer information of said selected dealer. A system according to claim 3, wherein said software means further comprises first inventory input means for displaying a portion of said dealer information on said display means, wherein said displayed portion of said dealer information includes at least means for identifying items in said selected dealer's inventory, said first inventory input means further including: means for accepting input of inventory status codes corresponding to individual items in said selected dealer's inventory through said input means, means for displaying said input status codes on said display means in proximity to said item identification, and means for storing said status codes with said selected dealer's dealer information on said storage means associated with said first processing means (112). A system according to claim 5, wherein said software means further comprises dealer invoice display means for selectively displaying said selected dealer's amounts due for each inventory item and for accepting input of amounts to be collected for individual inventory items. A system according to claim 6, wherein said software means further comprises merging means included in said first processing (112) means for reading out from said data storage means associated with said first processing means, selected dealer information, predetermined text data and reading out selected information input through said input means and merging said read out dealer information, said read out text data and said read out input information to compile reports, bills and the like. A system according to any preceding claim wherein said first processing means (112) is coupled to output printer means (120). A system according to claim 8, wherein said software means further comprises charge means for selectively displaying a list, on said display means, of all dealers maintained on said storage means associated with said first data processing means, for accepting the selection of one or more of said displayed dealers input through said input means, for displaying a series of time period, date and auditor number prompts on said display means, for accepting at least one auditor number, date and time period, input through said input means, for calculating charges based on said input information for the cost of said inventory, for allocating said charges among said selected dealers and for causing a bill to be compiled by said merge means and printed on said output printer means (120) based on said calculations and allocations. A system according to claim 9, wherein said software means further comprises report generation means for displaying a list of available reports on said display means, for accepting selection of one of said displayed reports and for selecting information to be merged and compiled into said selected reports. A system according to claim 10, wherein said report generation means further includes checklist means for selecting inventory information corresponding to said selected dealer, for selecting appropriate predetermined text data corresponding to the selected checklist report and for causing said printer means (120) to print said selected report after said merge means merges said select data. A system according to claim 10, wherein said report generation means further includes reconciliation report means for selecting inventory information corresponding to said selected dealer, for selecting input data corresponding to items found during an inventory, for eliminating inventory information for which data has been input indicating the items found during the inventory, for selecting appropriate predetermined text data corresponding to a reconciliation report and for causing said printer means (120) to print said reconciliation report after said merge means merges said selected data. A method of monitoring and verifying inventory comprising the steps of: providing at least one preprogrammed portable computer (112) with data storage and retrieval equipment; providing an input device for use with said preprogrammed portable computer; providing an output display device for use with said preprogrammed portable computer; providing a communications device (114) for use with said preprogrammed portable computer; providing a preprogrammed mainframe computer (108) with data storage and retrieval equipment (110); providing a communications device (118) for use with said preprogrammed mainframe computer; inputting dealer codes (212) through said input device in response to prompts displayed on said display device of said preprogrammed portable computer; formatting said dealer codes into a form understandable by said mainframe computer; establishing communications through telephone lines (116) between said communications device associated with said portable computer and said communications device associated with said mainframe computer; transmitting said formatted dealer codes from said portable computer, through said communications device associated with said portable computer to said mainframe computer through said communications device associated with said mainframe computer (214); locating and retrieving dealer inventory information on said mainframe data storage equipment corresponding to said dealer codes (228 - 234); transmitting said corresponding dealer inventory information from said mainframe computer through said mainframe communications device to said portable computer through said portable computer communications device; verifying that the information received by said portable computer was received correctly; storing said dealer information on said portable computer data storage equipment; displaying on said portable computer display equipment at least one prompt for a software change code; inputting a software change code through said portable computer input equipment; formatting said change code into a form understandable by said mainframe computer; establishing communications through telephone lines (116) between said mainframe communications device and said portable computer communications device; transmitting said formatted change code from said portable computer, through said portable computer communications device to said mainframe computer through said mainframe communications device; locating and retrieving software changes on said mainframe data storage equipment corresponding to said change code; transmitting said corresponding software changes from said mainframe computer through said mainframe communications device to said portable computer through said portable computer communications device; and storing said software changes on said portable computer storage equipment such that the programming of said portable computer is altered in accordance with said software changes. A method according to claim 13, comprising the additional steps of: maintaining a list of all dealer files stored on said portable computer storage equipment and selectively displaying on said portable computer display equipment said list of all dealer files. A method according to claim 14, comprising the additional steps of: selecting a dealer from said displayed list of all dealer files, accessing said selected dealer file and maintaining said file for later action.

Inventors: SCHMERER HAL P, WEIAND DENNIS DALE, SCHMERER, HAL P., WEIAND, DENNIS DALE
Applicants: ITT COMMERCIAL FINANCE CORP, ITT COMMERCIAL FINANCE CORP.
Application year: 1990
Main classification: G06F17
IPC codes: G06Q10