Inventory Management

Inventory is an asset in your balance sheet but it can also be a problem for cash flow. You can have very high inventory and still can have lot of material shortages. This happens because your sales & forecasting is not connected with the inventory processes. We have tried to address this issue.

Along with that, it’s important for a business leader or owner to know available stock, goods issues and shipments and goods receipts. As per Government of India’s new Goods and Services Tax regime, it would be more beneficial and easy if system can keep track of all receipts and shipments automatically.

This software is designed to handle these process points. Along with that, we have several other required processes such as stock counting & its matching with system stocks (Physical Inventory).

Goods reversals, scrapping of inventory and all other related processes are also taken care of in this component. Following are modules of Inventory Management component.


Goods Receipts & Reversals

Every time there is shipment arrival at your factory or warehouse, you would need to record it in the system. This process is called as Goods Receipts of GRN process. In PIMS, you can do Goods Receipts using Purchase Order or Vendor Invoice. Both will have exact same result meaning; your inventory value will be updated based on receipts.

If there are damaged goods in transit, you can receive them and assign the code as damaged and it will not be added in your available stock. If you want to reject some items or some quantity of shipment, you can do so by selecting appropriate reason code while doing the receipt.


Reversals

At any point, you can return materials or goods back to vendor. You would need to select reference PO and add reversal quantity and system will reduce the stock. You can then print the reversal note and send the material back to vendor along with the shipment.


Physical Inventory

Even if system automatically tracks all inventory movements, its necessary to count all stocks physically and sync it up with system stock. This counting of warehouse stock and then reconciliation of it with system stock is called as Physical Inventory process.

Create Physical Inventory Document

You can create document for one item or for all items in the warehouse. Once document is created, it has list of material/ item number and description. It will not have stock quantity mentioned in the document. This is on purpose, So that people can go in the warehouse and count all items physically available. They will note physical quantity on the document printout.

Count Document

All PI documents created in such way needs to be physically counted. You can mention stock in the available unit of measures such as boxes, kilo, etc. These document quantity needs to be entered in the system for each item. Once all quantity entry is complete, you can go to next stage. Once counts are entered, system has two stock quantities for each item. One is system stock and other is counted stock.

Approve Count

Once count is entered, it needs to be approved. This is second stage of verification so that all manual errors can be eliminated in the counting process. Once document is approved, counted stock becomes system stock. Meaning if system was showing stock as 100 pieces, and counted quantity is 105 pieces, then after approval, system stock will become as 105.

Inventory Block during counting process:

Its recommended to complete this process during weekend and when there are no receipts or issues shipments happening from the warehouse. That way baseline if maintained while counting & adjusting the stock. But sometimes, if that is not possible, system can also keep track of receipts during the counting period and adjust the actual stock automatically.

Benefits of physical counting process

This process is required to keep check on any theft happening from the warehouse. Since system has flexibility of doing physical stock of any item, you can do this on periodic basis. Once physical stock is approved, you can see the variation of system stock vs physical stock. That would tell you accuracy of your system stock at any time. It would also avoid any shortages from the stock.

It would also tell you if you are carrying any items which are slow moving or obsolete. You can then decide next action accordingly.

Inventory Processes:

There are several processes which impact your inventory. Unless you have mechanism to record these inventory changes in the system, your inventory may not remain in control. We have provided maximum possible processes which happen in any business. These would help to maintain your warehouse properly and in control.

Scarp: You can issue any material from the warehouse and scrap it. Once you complete the transaction, your inventory value will go down by the scrapped quantity and it will get recorded in the system that you scrapped some quantity. Warehouse to Warehouse Movement – Sometimes you need to move items from one WH to another WH.