Inventory management provides information to MRP which takes into account not only physical stock but also planned movements (requirement and receipts). Requirements calculated by MRP are acquired externally or internally.
When a material is ordered from a vendor, goods receipt takes place in inventory management with respect to the purchase order. The vendor invoice is later processed by invoice verification. Amongst other checks, verification is made as to whether the quantities and values from the purchase order and the goods receipt agree with those on the invoice.
If a material is acquired internally by means of production, inventory management provides for provision of components. Receipt of the finished products into the warehouse is also posted in inventory management in the same way.
On the other hand the material has not been withdrawn from the warehouse for internal production, but for the delivery of sales orders. A dynamic availability check can already give you information about whether the required material is available in sufficient quantity at the time the sales order is entered. (The availability check may also be used in conjunction with reservations and production orders.) When the delivery is generated, the quantity to be delivered is marked as "delivery to customer" and deducted from the total stock when the goods issue is posted.
When a material is ordered from a vendor, goods receipt takes place in inventory management with respect to the purchase order. The vendor invoice is later processed by invoice verification. Amongst other checks, verification is made as to whether the quantities and values from the purchase order and the goods receipt agree with those on the invoice.
If a material is acquired internally by means of production, inventory management provides for provision of components. Receipt of the finished products into the warehouse is also posted in inventory management in the same way.
On the other hand the material has not been withdrawn from the warehouse for internal production, but for the delivery of sales orders. A dynamic availability check can already give you information about whether the required material is available in sufficient quantity at the time the sales order is entered. (The availability check may also be used in conjunction with reservations and production orders.) When the delivery is generated, the quantity to be delivered is marked as "delivery to customer" and deducted from the total stock when the goods issue is posted.
Inventory Management includes the following tasks:
- Managing the material stocks by quantity and value
- Planning, creating, and verifying all goods movements
- Carrying out the physical inventory
ReplyDeleteYou are sharing a wonderful article. It was great post. Keep more share your updates.
Woocommerce stock management
I read your articles very excellent and i agree our all points because all is very good information provided this through in the post.
ReplyDeleteAsset Management Software
Asset Tracking Software
IT Asset Management Software
Fixed Asset Management Software
Thanks for sharing the information about inventory management system
ReplyDeleteThanks for sharing such a useful information.
ReplyDeleteBilling System Software is a popular business tool developed by DST Pvt. Ltd. which helps any kind of small, medium, or large business and helps in implementation to effectively manage all account-related operations and facilities. Generally, Billing System Software acts as an online / offline tool mainly used to create bills as well as invoices of customers, payment reports, bookkeeping and many more. It also helps in managing billing for multiple products and billing for multiple companies at the same time.