Inventory management

Moving values

Up-to-date information regarding the current in-house stock status is essential to ensure a flawless flow of materials and value and a smooth order processing procedure. In particular, a modern inventory management system must be able to map unplanned transactions or transactions that are difficult to organise, such as returns from customers, stock transfers or unplanned issues. Analyses and financial statements such as the item journal, month-end close, ABC analysis and inventory counts are necessary components.

Features

  • Overview of own stocks
  • Consignment and provided materials
  • Stock not available for planning
  • Batch tracing
  • Cross-plant inventory analysis/evaluation
  • Inventory count
  • Safety stock: ordering note issued when critically low limit is reached
  • Direct processing of data in cost accounting and financial accounting

Item-related stock movements

Item-related stock movements are processed in the Inventory Management module. This module can be used to compile information on item stocks and stock movements and to perform stock postings. Each stock movement posted contains the quantity, value, cost unit, storage location, batch serial number, stock type etc. Each stock movement posting is logged as a journal record in the item journal. This enables material and value flows to be tracked (including subsequently) over long periods. The item journal contains movement types for every type of inventory movement to allow posting processes to be traced clearly. For receipt postings, the updated average price is documented to enable stock to be tracked seamlessly. The item journal still contains the correction rates for average price determination from the receipt invoice checking. As well as details of the movement type, item number, quantity, date, transaction reference and value, each journal record contains additional information. The item journal represents the basis for a variety of analyses and statistics.

Batch management

In PSIpenta ERP, products with batch management requirements are tracked continuously from the vendor's batch to the shipping batch. Internal and external batch numbers can be recorded. Batches can also be split and merged. Reverse transactions are also taken into account. It is possible to specify whether each respective item has a batch management requirement or not. The history of a batch is thoroughly documented in journals in all circumstances. The incoming batches used and the production processes carried out can be quickly and easily identified for each product batch. The sequence of batch consumption during production can be defined. For items handled in batches, it is possible to assign batches automatically. This section is completed by additional data such as composition, quality status or vendor batch numbers.

Inventory count

As part of the legally required inventory count, PSIpenta Inventory Management provides extensive support in terms of information, selection and entry of inventory items. The inventory count selection feature allows items to be selected for an inventory count and added to the inventory count list on a storage location or item basis. An inventory count number is generated for the items included in the (freely configurable) inventory count list and a line number is generated for each item on-hand, under which the corresponding data can be accessed. Various criteria can be used for inventory selection (e.g. item range, storage locations, batches, goods categories or product groups etc.). Using a combination of criteria provides the required flexibility for selecting a particular item range. The permanent inventory count spreads the inventory count for the items over the entire inventory count period, so that all of the work does not have to be carried out at the end of the period.

For storage locations managed with stock management, it is possible to arrange automatic or permanent inventory counts for stock receipts and issues. If the bin inventory is zero before storing new stock or after issuing stock (zero crossing) or less than a configurable quantity, a counting notification is issued. The result is then entered with the feedback for the stock movement.

Stock types

In addition to the normal warehouse stocks of a material, PSIpenta Inventory Management contains further stocks that must be managed as external stocks or managed separately from normal stocks due to limited availability. These could be company-owned stocks stored on a vendor's or customer's premises, or vice versa, vendor's or customer's stocks stored on company property. In order to be able to map external stocks (consignment material from vendors and provided material from customers) and stocks at business partners' storage locations (consignment material with customers and provided material with vendors), the stock on-hand will contain a stock type code and the customer/vendor number.

Stock evaluation

Each time an inventory movement is posted, the quantity, value, cost unit, storage location, batch/serial number, stock type etc. are recorded. The Inventory management module provides a complete and up-to-date picture of the stock situation by continuously updating and evaluating all inventory movements. Differentiating the stocks by stock type makes it possible to record both consignment and provided material stocks. It also enables analyses of item stocks to be performed (ABC analyses).

Closing routines

The closing routines (month and year-end close) consolidate the posting data generated within a posting period or a business year in terms of values and quantities. Statistics are created and the consumption data is updated.

Basic functions

  • Recording all changes in stocks and movements in real time
  • ABC analyses, alternatively based on consumption, stocks or requirements
  • Separate batch posting and batch tracking for raw materials and in-house manufactured parts
  • Provision of item consumption data
  • Differentiation between warehouse stock and incoming goods stock (production release after successful goods receipt check/quality check)
  • Differentiation between company stock, external stocks (consignment material from vendors and provided material from customers) and stocks at business partners' storage locations (consignment materials with customers and provided materials with vendors)
  • Different inventory count methods
  • Recording of separate, project-based stocks
  • Management of shipping stock levels for shipping stock