Inventory | Wicode Infotech

Overview

Inventory deals with the stock of goods available. Inventory management mainly consists of handling stock operations like moving stock from one warehouse to another, Purchases, Sales, Purchase Return, Sales Return, Issues, Adjustments and so on.

The main reason for handling Inventory management system is to know the actual goods available in the warehouse, quantity and cost of these items. This will also help us to know the fast moving and slow moving items and when it can be ordered. Inventory value is calculated based on Average cost.

Average Cost = (Purchase Quantity x Purchase Cost) + (Stock Quantity x Average Cost) / (Purchase Quantity x Stock Quantity)

Item Master Structure

Item Master contains the list of Items in Inventory. It has the Item description, Unit of measure, quantity available, height, weight, Cost and so on. Items are measured with some defined measures listed in Unit of Measurement. One or more Items can be combined together as recipes for Manufaturing/ Assembly/Promotional item. Items are classified from Group, Brand, Sub Brand, Category, Sub Category, Family Sub family and so on.

Average Cost = (Purchase Quantity x Purchase Cost) + (Stock Quantity x Average Cost) / (Purchase Quantity x Stock Quantity)

UOM Structure

Items are measured with some defined measures listed in Unit of Measurement.

Recipe’s Structure

Combining more than one item as a recipe to create one new item is referred as Assembly or Manufacturing of goods. Promotion refers to making two or more items as one item a selling those items as one item.

Purchase Order

Whenever a purchase request is made from the store, a PO is created. Once the PO is approved, and after the goods are arrived, a Goods Receipt Voucher (GRV) is prepared with the items in PO.

GRV

Whenever a purchase request is made from the store, a PO is created. Once the PO is approved, and after the goods are arrived, a Goods Receipt Voucher (GRV) is prepared with the items in PO.

Purchase Voucher

Once the GRV is prepared, a Purchase Voucher(PV) is created and the amount will come under Account Payables. A number of POs can be combined together and one GRV and a number of GRVs can be combined and one PV can be created(Optional).