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Assignment onGoods Receipt Process(From Raising PO to

Receiving Goods At The Store)

Submitted by:

Anisha Kirpalani

CPGFR1001

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Raising Purchase Order and ApprovalA purchase order is a system recorded on paper or electronically where a supplier provides a

product to a company in the quantity, size, style or color that it needs. A purchase order is

based on the sales volume or orders a company receives from its customers' purchases. Contents:

The vendors name Order, shipping, and cancel dates A list of the to be ordered and information about those , including description, cost, and the quantity ordered The total cost of the order, including discounts and fees Optionally, terms of payment and payment due date (for tracking purposes) A summary of the purchase order fill status (what has been received and what has not.

Purchase Order Reports - There are various types and templates of Purchase orderreports and documents, including:

Purchase Order Detail Report Purchase Order Register Anticipated Deliveries Overdue Shipments Receipts Report Receipts Register Open Purchase Order

Open Requisitions Requisition Register Purchase Order History Purchase Order Summary Blanket Purchase Orders Encumbrance

Sample placing of order through a Purchase Order System:

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Sample Purchase Order:

Benefits of a Purchase Order: Provides an organized way to keep track of what you have on order. Easy to get a listing of all orders for a specific vendor. Purchase orders can automatically copy detail lines from a purchase order to a bill

when you enter payment for the received.

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Receiving Goods at the warehouse from SupplierWhen the order placed is received on a particular date from the supplier (usually in a truck/

lorry), the following procedure takes place:

1. The supply of goods will be accompanied by: Sales invoice of the supplier clearly quoting the reference number of the Order for Supplies (OFS); a copy of the OFS quoted in the sales invoice; a copy of the Transport Permit issued by the Excise department; a copy of the lorry receipt; and details of duty paid for dispatch of goods.2. In the absence of any of the documents, do not unload the supply.3. Confirm that the OFS is signed by the Executive Director or the General

Manager (Operations).

4. Verify that the manufacturer has raised one sales invoice for each OFS.

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5. Confirm that the rates indicated for the dispatched are the same as in the OFS.No other charge like permit fee, etc shall be allowed.

6. The supply should have been received in the depot before the expiry of thevalidity of the OFS. In case the validity of the OFS has expired, request the Head

Office for extension of validity, synchronise and proceed.

7. If any other condition in the checklist is not satisfied, obtain permission from theHead Office to waive the requirement. Quote permission details in the narrationcolumn in the checklist.

8. Prepare a draft Material Inward Slip (MIS) to include all the shown as dispatchedin the sales invoice.

9. Print checklist and proceed for unloading.10. The checklist, recording the time and date of preparation, acts as an unloading

slip and forms an important document for verification at a later stage. Hence do

not resort to unloading without the checklist.

11. Confirm that the manufacturer has furnished details of excise label numbers ofthe items on the carton box (as a sticker or a rubber stamp).

12. If the supplier consistently defaults in furnishing these details inform the HeadOffice and seek instructions.

13. Unload items. Note down the actual items received, their quantity, the number ofbroken items and their excise label numbers and the number of missing items in

the consignment (and if available, their excise label numbers) in the checklist.

14. In case of doubt, and/or for brands that exhibit a substantial transit/storage loss,open the boxes and take delivery.

15. The checklist is to be signed by the person unloading the consignment and thedepot manager.

16. Obtain the signature of the transporter (the lorry driver) in the draft checklist as atoken of acceptance of the number of broken/missing items.

17. Report any abnormal increase in transit damages to the Head Office.18. Segregate broken items and separate the neck of these items and store them

appropriately for verification. For this purpose, the depot shall have separate

drums/containers prominently marked (like Transit Damages 180 ml etc.), where

the necks of items are separated and stored.

19. The glass scrap and the neck shall be disposed off as detailed in the chapter onAccounting for transit/storage losses.

20. Reopen the draft MIS. Make corrections to capture details of the actual itemsreceived, their quantity and the excise label numbers of broken and missing items

21. In case of imported items directly received, this may be skipped.22.

Though the quantity column in the MIS as seen in the screen displays the totalquantity ordered in the OFS, the quantity received in good condition alone is

reckoned and the supplier is credited for the good quantity automatically by the

system.

23. Convert the draft MIS into a final MIS, print three copies and sign them.24. Note down the MIS number on the checklist for reference.25. Print Excise Verification Certificate. Obtain the signature of Excise officials.26. Despatch the first copy of the MIS to the supplier to the address in the invoice

and the third copy to the Head Office.

27. File all documents (generated documents checklist (with corrections), secondcopy of the MIS and excise verification certificate and documents received

copy of OFS, sales invoice, transport permit lorry receipt and duty paid details) ina proper order.

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Internal audit guidelines Verify filing and dispatch of documents as per procedure. Confirm that the prescribed procedure has been followed. All receipts to be supported by OFS (right quantity and validity to be verified). All receipts to be subject to excise verification. Item code of the stock taken should be the same as the item code in the OFS. Rate of the item in the MIS to be in accordance with the rate indicated in the OFS. Quantity taken to stock (good items) to be in accordance with OFS less broken/missing items. Supplier to be credited only for the items received in good condition

Goods ReceiptThe goods receipt process for inbound deliveries is an essential part of the supply chain. This

process includes the steps after creation of the purchase order: notification, the inbound

delivery, subsequent put away of goods, and the goods receipt posting of the ordered goods.

The significant advantage of depicting the goods receipt process through the inbound delivery

function is that you can execute many processes in advance, even before the actual goods

receipt posting takes place. You have all the necessary information beforehand because the

supplier notifies you of the inbound delivery ahead of time. The inbound delivery describes

exactly which materials or pallets can be received on what date and at what time.

The following functions are available with the goods receipt process for inbound deliveries:

Transfer order for inbound delivery - Like the outbound delivery, the inbounddelivery is a request for putaway that is sent to the warehouse. You can create a

transfer order for putaway from an inbound delivery. Batch information - The batch split that is already possible for outbound deliveries is

also available for inbound deliveries, since batches are often first identified in the

inbound delivery.

Inventory management of packaging materials Goods receipt for inbound deliveries Define order confirmation for inbound delivery - You can use this key to configure

your settings such that planned inbound deliveries are automatically created through a

collective processing run.

Inbound delivery monitor Determination of goods receiving point Incompletion log Change documents Document flow for inbound delivery

Process Flow:An inbound delivery can be created as follows:

With reference to a purchase order With collective processing for several purchase orders With reference to a stock transport order With reference to a customer return

Depending on your requirements, you can create inbound deliveries automatically using work

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lists, or manually. Overviews allow you to monitor the inbound deliveries that were created

and activities relating to those deliveries that are due to be carried out.

The system carries out the following activities when an inbound delivery is created:

Checks the order and materials to make sure an inbound delivery is possible Determines the delivery quantity of an item Calculates the weight and volume of the delivery Calculates work expenditure Assigns a storage location for put away Updates order processing

You can subsequently make changes in a delivery in order to report the quantity that was put

away or if the delivery situation changes in any way. In addition, you can use the display

function to access inbound-delivery information in a delivery.

Inbound Delivery Structure

The inbound delivery is made up of a document header and any number of items.

Document Header

The general data relevant for the inbound delivery is stored in the document header. This data

is valid for the entire document. This data may include:

Goods receiving point Scheduling data (goods receipt date or delivery date, for example) Weights and volumes for the entire inbound delivery Vendor number Route

Document ItemsIn the items, you find data that applies to one particular item. This data may include:

Material number Delivery quantity Plant and storage location specifications Put away date Weights and volumes of the individual item

Control ElementsSpecific functions can be defined for each delivery document type. This is done using control

elements that are specified in tables. The document types can be tailored to meet differentcompanies needs.

One can distinguish between delivery document types according to the following criteria:

Which number range does the document number come from for internal and externalnumber assignment?

Which partner functions are allowed and which must be entered? Does an order have to be based on a preceding document? Which requirements must items fulfil to be included in the delivery? Should the route be predetermined? Should a check then be carried out to determine

whether the new route is permissible?

According to which rule should the storage location be determined for an item if astorage location is not specified?

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Which output types are allowed for the business transaction and according to whichprocedure are they proposed?

Executing Batch Splits in DeliveriesBatch split describes the situation when you want to specify quantities from more than one

batch for a particular delivery item. The batch split function in the delivery includes a batchselection screen and an availability check. In addition, batch processing is linked to the

softwares classification System, enabling you to select batches according to classes and

characteristics.

Goods Receipt NoteGoods Receipt Note is a note given by Store department to Accounts/Supplier for Purchase

of goods which are accepted after inspection of material. When Material comes to store, only

GIN(Goods Inward Note)is been done which is not of commercial use until GRN is made

after Inspection of material.

Warehouse Inspection

Following is the procedure and regulations if the goods are kept in a warehouse which is not

owned by the company:

Why warehouse oversight is importantWarehouse receipts systems (WRS) involve the issuing of warehouse receipts (WR) by

licensed or certified warehouse operators to named depositors (who may be a farmer, farmer-

group, processor or trader) as evidence that the depositor has deposited a specified

commodity, of stated quantity and quality, at a specified location. The holder of the receiptmay pledge it to a lender (with the stored commodity being the collateral for a loan) or

transfer it to a buyer (by way of a sale). The warehouse operators or collateral managers do

not own the stocks under their control but have legal custody and guarantee delivery against

the receipt. They are required and should be able to make good any value lost through theft,

fire or other catastrophes.

Depositors, bankers and other stakeholders can only enjoy these benefits if the licensed or

certified warehouse operators are able to carry out their obligation of delivering the stored

commodity on presentation of the WR by a bona fide holder. Non-performance by warehouse

operators can lead to losses which can potentially cause default by borrowers (because theyare unable to pay) and therefore financial loss to banks. This risk needs to be mitigated by

means of effective oversight (or policing) of warehouse operators. The oversight system

consists of legal framework (i.e. the laws, regulations and standards) and the institutional

arrangements for enforcement.

Enforcement AgenciesThe functions of these independent warehouse regulators include the following:

To set and ensure compliance which maintain standards for sound warehousing including minimum physical standards to which storage facilities for collateralised

stocks should conform;

To set and enforce uniform standards and procedures in the handling, storage andreceipting of commodities;

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To set licensing requirements and enforce the same to ensure that only crediblewarehouse operators with required storage facilities, well-trained personnel,

satisfactory financial capacity, appropriate insurance and bonds in place who are

authorised to issue standard warehouse receipts for stored commodities;

Ensure sustained compliance with the Act, Regulations and industry standards required to depositors and lenders from loss of value of commodities under storagethrough intensive and comprehensive on-site and off-site examination procedures and

processes; and

Assure the integrity of transferable and/or negotiable warehouse receipts therebymaking them acceptable as reliable collateral for loans by banks and in commodity

tradeby robust enforcement of systems for issuing and cancellation of receipts that

minimise risk of fraud.

Issues covered by warehouse laws and regulations

The laws and regulations define relationships between the key parties in a warehouse receiptsystem, in particular between the licensed warehouse operator and depositors as well as other

bona fide parties to whom the receipt can be transferred such as lenders and buyers. They

encompass the minimum standards that warehouses and Warehouse Operators have to meet

to be certified/licensed to store and handle commodities and to issue warehouse receipts, and

are therefore intended to provide some level of comfort for the depositors and other partiesabout the security of their stocks held by the warehouse operator.

In addition to defining the powers of the independent regulator, the laws and regulations

provide detailed requirements for:

Licensing of warehouses and warehouse operators clearly setting out, for theindependent regulator, the basis for licensing warehouses and operators as well as forsuspending, revoking or restoring the license of an operator. Among the requirements

are physical standards that warehouses have to meet and the authorised equipment

that a licensed warehouse should have.

Licensing of warehouse personneldescribing the minimum qualifications and basictraining the personnel should have in order to effectively discharge their

responsibilities in looking after commodities owned by third parties.

Record keeping requirements setting out the minimum records required to ensurecomplete accountability for the operators.

Warehouse Receiptsdetailing basic descriptions of the receipts (example below) aswell as instructions on the handling of warehouse receipts and the related rules of

custody, control and access. Warehouse storage operations providing detailed instructions on minimum

requirements for cleanliness, stacking, fumigation and other housekeeping activities

in the warehouses and powers of the independent regulator to intervene where there is

a breach, including sanctions which can be applied.

Some of the basic storage management principles which need to be strictly appliedinclude keeping the warehouse dry, clean, cool and secure. It should be recognised

that agricultural commodities, in store, are a community of living organisms

consisting of the commodity, insects, bacteria and fungi. While the commodity

remains in satisfactory storage conditions, most of these living organisms remain

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dormant but become active and can lead to quality deterioration if the proper storage

management principles are not complied with.

Types of Warehouse Inspections

These include:

First Instance Inspections where the warehouse operator, the warehouse, staff andequipment are assessed for suitability for licensing and is conducted prior to issue or

renewal of a licence.

Routine Inspections are the regular off-site review reports and on-site inspectionvisits undertaken to examine compliance with all laws, regulations and standards.

Appeal Inspectionis conducted when an applicant or licensed operator has disputedthe outcome of an earlier (first instance or routine) inspection. Officers senior to the

one who conducted the disputed inspection are required to conduct appeal inspections.

Supervised Inspections are conducted under the supervision of the managementboard of the regulatory agency or arbitrators or both and are undertaken only when the

operator is not satisfied with the results of an appeal inspection. The cost of Appeal

and

Supervised Inspections borne by the appellants and are often required to be paid infull before the inspection begins. The cost of Supervised Inspections costs may be

paid as part of the arbitration costs.

Reviewing Warehouse Management Practices

This part of the inspection verifies the effectiveness of storage management practices in

force at a warehouse. It involves checking the following: The intake and issue system at the warehouse, especially where commodities stored

are commingled (i.e. whether FIFO, LIFO, etc.).

Adequacy of the warehouse space (evidence of overstocking etc). This inspectionlooks at how the warehouseman enforces the principles of good warehouse

management including aeration, heat control, residual spraying, fumigation, etc.

Records evidencing any spraying and/or fumigation, including checking forconsistency with instructions, e.g. period of exposure for fumigants and frequency of

spraying for residual sprays. Use of fumigants is regulated by state authorities and the

inspector must verify the registration for the fumigation company hired and also

ensure that the chemicals in use are not prohibited. Where possible, the inspector can

be present to observe the starting and ending of fumigation, to assess full compliance

with all recommended procedures.

Reliability of custodial controls regarding keys to the warehouse and securitydocuments, including especially the warehouse receipts.

The Inspection ReportAfter a review of all the areas identified in Sections 2 and 3 (and guided by some of the

deficiencies listed in Appendix 2), the inspector should indicate the overall rating of the

warehouse operator and the facilityAppendix 1 provides a guide on overall ratings (A to E

indicating severity of deficiencies and appropriate remedial actions required). The

Warehouse Inspection Report should be completed in triplicate and distributed, as indicated

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below after the inspecting official and warehouse operator or his/her senior official have

signed the completed form:

The original is placed in the warehouse operators contract. A copy is furnished to the warehouse operator at the time of inspection. The third copy is placed in the Inspection Reports file for the information of the Head

of the regulatory body.The Head of the regulatory body should regularly review the Inspection Reports and follow

up with inspectors to confirm whether recommended remedial actions have been

implemented by the specified warehouse operators.

Minimum Requirements for Warehouse Operators

Corporate Requirements Applicants must be limited liability companies with issued share capital evidenced

by the Certificate of Registration

Duly registered under the Laws of Tanzania with the purpose of conducting anagricultural commodities warehousing business, among others Memo and Articlesof Association + any amendments thereof.

Non resident companies may apply through a Tanzanian registered branch orsubsidiary

The directors and managers are fit and proper persons to conduct the business ofagricultural commodity warehousing and the issuance of warehouse receipts

Bankers references.

Access to Warehousing Facilities Ownership of a warehouse(s) evidenced by valid title deeds for the property in the

applicants name: or

Lease agreements for a period not less than one calendar year where the facilities are to be rented from third parties.

Insurance Requirements The applicant must obtain insurance cover against fire and allied risks, burglary and

employee infidelity (fidelity guarantee) from an insurance company authorized by the

appropriate authorities and approved by the oversight unit on the evidence of its

financial strength and the credentials of its re-insurers.

The insurance policies shall be in the name of the applicant and shall cover the stockand structures.

The policies shall grant a first lien to the oversight unit on the proceeds of any claimsthere under.

In a normal company-owned warehouse,

The procedures will normally provide the step by step guidance on how to manage each

aspect of warehousing and may cover:

Receiving and issuing of supplies; Quality control or verification; Storage of goods; How to control stock movement (stock control); Documentation flow;

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How to detect and deal with stock losses; How rejected material will be managed; and How to deal with unwanted material, obsolete and scrap, disposal.

Stock Records - Documentation Stock Identification Stack Cards, See Samples 1 And 2 Bin Cards Stock Checks Stock Loss Reporting Reporting Of Stock Levels.

Legal ConsiderationsThe common practice in emergencies is to lease or rent, not purchase warehouses. In this

situation, there is often a shortage of suitable buildings or locations for warehouse space and

this can often cause the costs to increase significantly. Therefore, it is often necessary toutilise temporary warehouse space for as short a time a possible. Care must be taken with the

drawing up of the lease agreement with the owner. The following items are basic inclusions

and in a lease agreement:

The cost for the lease; The duration of the lease agreement; Exit clause: the period of notice required for terminating or extending the lease

period. Confirmation of the existence of property insurance, covering third-party, fire,

water damage, window breakage, etc;

Details of any security arrangements; A detailed inventory of any equipment, fixtures and fitting included with the building

and detailed description of their condition;

Confirmation of either sole tenancy or details of other tenants; Information about the ground or floor strength per square metre; The weight capacity of any equipment such as forklifts, racks and shelves; In situations where neutrality is important, care must be taken to establish the actual

owner of the building, which might be different from the lessor of the building e.g.

The military, religious groups or government;

Indemnity; and Insurance.

Categorisation of Stock based on Warehouse InspectionThe stock as verified and checked by the warehouse inspection department is classified as:

Approved stockThis stock is usable Rejected stock - Unusable Shortage stockUnusable stock Excess stockCan be referred to as consignment stock. If the merchandiser and the

vendor agree, a new PO maybe made for the excess stock and treated as goods inward

and approved stock.

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Bar-codingA barcode can be described as an "optical Morse code". Series of black bars and white space

of varying widths are printed on labels to uniquely identify items. The barcode labels are read

with a scanner, which measures reflected light and interprets the code into numbers and

letters that are passed on to a computer.

Benefits of Bar-coding:Barcode data collection systems provide enormous benefits for just about any business. With

a barcode data collection solution, capturing data is faster and more accurate, costs are lower,

mistakes are minimized, and managing inventory is much easier.

The following are some of the benefits of barcode data entry:

Fast and Reliable Data Collection: Faster Data Entry: A barcode scanner typically can

record data five to seven time as fast as a skilled typist.

Better Accuracy: Keyboard data entry creates an average of one error in 300 keystrokes.

Barcode data entry has an error rate of about 1 in 3 million.

Reduced Labor Costs: This is the most obvious benefit of barcode data collection. In many

cases, this cost savings pays for the entire data-collection system. Do not put all of your

attention on this benefit, however. Even though this is the most apparent benefit, it is often

overshadowed by even greater savings from other areas.

Reduced Revenue Losses Resulting from Data Collection Errors:

This benefit often surpasses the savings in labor costs. You know that if you make a

significant error on an invoice in the customer's favor, you will never hear about it again.However, if the error is in your favor, you will hear about it immediately. In most companies,

it does not take many errors to amount to a great deal of lost revenue.

Necessary Inventory Levels: Using barcodes are one of the best ways to reduce inventory

levels and save on capital costs. Keeping a tight handle on inventory can save significant

amounts of money.

Improved Management and Better Decision Making: Although hard to measure, this is an

important benefit. In many cases, improved management due to automated data collection

technology could be the best benefit of a barcode system. A barcode system can easily gather

information that would be difficult or impossible to gather in other ways. This allowsmanagers to make fully informed decisions that can affect the direction of a department or

company.

Faster Access to Information: This benefit goes hand in hand with better decision-making.

With better information, you can gain opportunities and get the jump on the competition.

Types of Data-Collection Systems:Barcode data-collection systems fall into three basic types: interactive, batch, and hybrid.

An interactive system consists of one or more portables connected in real time toa computer. In these systems, the central computer manages data collection andverification as the user enters data.

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A batch system uses one or more portables to gather data that is stored for laterinput to a computer. This is the most common and most economical portable

system. Batch systems can do only limited validity checking.

A hybrid system is a combination of the two.Barcode systems require three elements:

Origin: You must have a source of barcodes. These can be preprinted or printed ondemand.

Reader: You must have a reader to read the barcodes into the computer. The readerincludes and input device to scan the barcode, a decoder to convert the symbology to

ASCII text, and a cable to connect the device to your computer.

Computer system: You must have a system to process the barcode input. These canbe single-user, multi-user, or network systems.

Legal Considerations

Including UPC barcodes on products is not a legal requirement. However, most retailersaround the world have adopted the GS1 system (UPC/EAN) for item identification.

Most major retailers may request their suppliers to obtain their own prefix and there are not

any retailers who endorse this practice. In fact, Wal-Mart has posted the following statement

on their website due to the problems caused by the confusion: "Please enclose in your

proposal packet a copy of your UCC (GS1) membership letter reporting your firm's actual

number. You must be registered directly with the UCC (GS1) and not through a third party."

Important Things to Consider If your company intends to someday supply product to medium and large retailers,

your company must have its own unique Company Prefix. There are other types ofbarcodes and EDI (Electronic Data Interchange) transactions which include this

unique company identifier. The barcode example below illustrates a common barcode

used on shipping labels, and the Company Prefix must be unique.

Is the barcode image file you receive a vector based image made to the requirementsof your packaging? The GS1 US recommends that original UPC barcode digital files

be created based on resolution and packaging requirements. Depending on the

printing process and dimensional requirements, UPC barcode can vary in size. Most

of these resellers simply provide a low resolution jpg or gif file, which is not

acceptable for proper reproduction. If a barcode can not be scanned, it is worthless

and the money you might have saved was wasted. There are some resellers which do provide physical company addresses and offer

actual certificates illustrating the unique UPC number assignment. One

recommendation is to call the company during business hours to verify that they are

indeed a legitimate business.

Bin ManagementThe Warehouse Management function is an extension of the Inventory Management and

Inventory Replenishment modules, providing advanced features, including bin tracking,

three-step inventory transfers, and both wave and zone picking.

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Bins are used for much more than identifying inventory locations. Bins are embedded to

manage stock movement and inventory transactions such as receiving, picking, physical

inventory counting, and even manufacturing material issues and finished goods processing.

Random, fixed, temporary, and staging bins provide ample flexibility for virtually any size

company, regardless of warehouse configuration. It is not efficient to pick a single order at a

time in larger warehouse environments. Pickers would be running up and down aisles all day just to pick a few orders. Consequently, distributors and manufacturers with larger

warehouses and more sophisticated distribution centers typically use zone or wave picking

methods, which allow pickers to concentrate on items within a particular area of the

warehouse. These picking methods minimize employee movement while dramatically

increasing the number of orders that can be picked during each shift. Bins can be arranged

using a single precedence or with separate precedence for distribution and manufacturing.

Advantages of Bin Management

Bins are built into related activities to manage stock movement and inventorytransactions.

Specify volume, weight, and count cycle for bins. Define preferred bins for specific items. Use fixed bins for items that are always stored in a specific bin location. Use random bins for items that may be stocked in various bin locations within the

warehouse.

Staging bins can be used to temporarily hold items that decrease inventory but are notused in transactions. A staging bin can contain any item and multiple items

simultaneously.

Items in staging bins are considered on-hand for valuation but are not available forfulfillment.

Any bin type can be defined as a temporary bin, which is automatically deleted whenquantities are depleted.

Bins are assigned to warehouse locations and zones within the warehouse A bin can be locked down during put-away or picking. Bins can be flagged to exclude quantities from available on hand inventories. This is

useful when receiving products for inspection or quarantine.

An unlimited number of bins can be defined per warehouse. Inquiries and reports provide audit trails to view inventory transactions from bin to

bin location.

Pick sheets can notify warehouse personnel to empty bins during picking or to emptyrandom bins first.

Bins are integrated with purchase order receiving; picking, packing, and shipping;physical inventory counts; customer returns processing; and other inventory

processes, such as inventory transfers and manufacturing.

Bin Management ProgramThe Bin Management Program displays the Bin records for the selected Inventory Location.

Bin records are used to track the physical locations or bins in which an item exists in a

specific inventory location or warehouse. Multiple bins can exist for an item in a single

warehouse location as long as a unique bin is used for each location/item/bin combination.

Each Bin record stores the quantity of the item that is located in the bin (the bin quantity), thequantity of the bin that is committed to printed shop order or sales order lines (the committed

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quantity), and the quantity in the bin that is available or free (the free quantity). Bin records

also contain other fields that are used by the Count Processing and other applications in the

system. Bin records are used by many applications in the system, including picking,

invoicing, and receiving. The Bin System is described in more detail in the Overview section

of this document.

The Bin Management Program can be used to View the Bins and Bin details for a specific warehouse location. Transfer bin quantities between different bins in the same warehouse. Assign a new default bin to an inventory item as it is being transferred. As each Bin

transfer is processed in the Bin Management program, the operator has the option of

making the new bin for the item the default bin for the item. If this option is selected,

the system transfers the selected quantity to the selected bin and it also updates the

default bin for the item that is stored in the Inventory Master file to the destination

bin. This causes the system to automatically use the bin when the item is received in

the future.

View the open Pick records for the Bin. Pick records are used to reserve Binquantities. Pick records are created when sales order picklists and shop order pull

tickets are generated. The committed quantity for each bin should normally agree

with the open pick records for the bin.

Store Indent

Factors affecting replenishment in a store: Type of merchandise Type of store Storage capacity of the store Lead times for supply of goods Rate of sales Relative stock positions across the chain Planned marketing activity Ensuing events like seasonality Beginning, Mid or end of season

Calculating Quantity to be replenished:

Pending indents - Reduce quantity Goods in transit - Reduce quantity Customer orders - Increase quantity Promotion effect - Reduce quantity (for trailing period) Promotion planned - Increase quantity (for future period) Store indents - Increase / Decrease quantity (store managers discretionary order

changes or feedback)

Commercial Implications on ReplenishmentSome of the commercials affecting replenishments:

Invoicing Credit hold and exposure Terms on contract

Refunds Charge-backs Pricing

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Margins Duties Costs: transport, handling

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