DOUBLE-ENTRY INVENTORY MANAGEMENT

A double-entry inventory has no stock input, output (disparition of products) or transformation. Instead, all operations are stock moves between locations (possibly virtual).

• Initial Inventory
• Reception
• Delivery
• Return 1 product broken in Zone 1
• Inventory check of Zone 1
• Move from Zone 1 to Zone 2

(b)

Operations Stock moves represent the transit of goods and materials between locations.

• Production Order
• Drop-shipping
• Client Delivery
• Inter-Warehouse transfer
• Broken Product (scrapped)
• Inventory Reception

Consume:

2 Wheels: Stock → Production

1 Bike Frame: Stock → Production

Produce:

1 Bicycle: Production → Stock

Configuration:

Stock: the location the Manufacturing Order is initiated from

Production: on the product form, field "Production Location"

Analysis

Inventory analysis can use products count or products value (= number of products * product cost).

For each inventory location, multiple data points can be analysed:

• inventory valuation
• value creation (difference between the value of manufactured products and the cost of raw materials used during manufacturing) (negative)
• value of lost/stolen products
• value of scrapped products
• value of products delivered to clients over a period
• value of products received from suppliers over a period (negative)
• value of products in transit between locations

(b)

Procurements & Procurement Rules

A procurement is a request for a specific quantity of products to a specific location. They can be created manually or automatically triggered by:

• New sale orders
• Minimum Stock Rules
• Procurement rules

Effect

A procurement is created at the customer location for every product ordered by the customer (you have to deliver the customer)

Configuration

Procurement Location: on the customer, field "Customer Location" (property)

Procurement rules describe how procurements on specific locations should be fulfilled e.g.:

• where the product should come from (source location)
• whether the procurement is MTO or MTS

Routes

Procurement rules are grouped in routes. Routes define paths the product must follow. Routes may be applicable or not, depending on the products, sales order lines, warehouse,...

To fulfill a procurement, the system will search for rules belonging to routes that are defined in (by order of priority):

• Warehouses
• A Product
• Product Category
• Sale Order Line

Warehouse Route Example: Pick → Pack → Ship

Picking List:

Pick Zone → Pack Zone

Pack List:

Pack Zone → Gate A

Delivery Order:

Gate A → Customer

Routes that describe how you organize your warehouse should be defined on the warehouse.

Push Rules

Push rules trigger when products enter a specific location. They automatically move the product to a new location. Whether a push rule can be used depends on applicable routes.

• Quality Control
• Warehouse Transit

- Product lands in Input

- Push 1: Input → Quality Control

- Push 2: Quality Control → Stock

Procurement Groups

Routes and rules define inventory moves. For every rule, a document type is provided:

• Picking
• Packing
• Delivery Order
• Purchase Order
• ...

Moves are grouped within the same document type if their procurement group and locations are the same.

A sale order creates a procurement group so that pickings and delivery orders of the same order are grouped. But you can define specific groups on reordering rules too. (e.g. to group purchases of specific products together)