A double-entry inventory has no stock input, output (disparition of products) or transformation. Instead, all operations are stock moves between locations (possibly virtual).
Stock moves represent the transit of goods and materials between locations.
- Production Order
- 2 Wheels: Stock → Production1 Bike Frame: Stock → Production
- 1 Bicycle: Production → Stock
- Stock: the location the Manufacturing Order is initiated fromProduction: on the product form, field "Production Location"
1 Bicycle: Supplier → Customer
- Supplier: on the product formCustomer: on the sale order itself
- Client Delivery
- 1 Bicycle: Stock → Packing Zone
- 1 Bicycle: Packing Zone → Output
- 1 Bicycle: Output → Customer
- on the pick+pack+ship route for the warehouse
- Inter-Warehouse transfer
- 1 Bicycle: Warehouse 1 → Transit1 Bicycle: Transit → Warehouse 2
- Warehouse 2: the location the transfer is initiated fromWarehouse 1: on the transit route
- Broken Product (scrapped)
1 Bicycle: Warehouse → Scrap
- Scrap: Scrap Location when creating the scrapping
- Missing products in inventory
- 1 Bicycle: Warehouse → Inventory Loss
- Extra products in inventory
- 1 Bicycle: Inventory Loss → Warehouse
- Inventory Loss: "Inventory Location" field on the product
- 1 Bicycle: Supplier → Input1 Bicycle: Input → Stock
- Supplier: purchase order supplierInput: "destination" field on the purchase order
Inventory analysis can use products count or products value (= number of products * product cost).
For each inventory location, multiple data points can be analysed:
- inventory valuation
- value creation (difference between the value of manufactured products and the cost of raw materials used during manufacturing) (negative)
- value of lost/stolen products
- value of scrapped products
- value of products delivered to clients over a period
- value of products received from suppliers over a period (negative)
- value of products in transit between locations
Procurements & Procurement Rules
A procurement is a request for a specific quantity of products to a specific location. They can be created manually or automatically triggered by:
- New sale orders
- A procurement is created at the customer location for every product ordered by the customer (you have to deliver the customer)
- Procurement Location: on the customer, field "Customer Location" (property)
- Minimum Stock Rules
- A procurement is created at the rule's location.
- Procurement location: on the rule, field "Location"
- Procurement rules
- A new procurement is created on the rule's source location
Procurement rules describe how procurements on specific locations should be fulfilled e.g.:
Procurement rules are grouped in routes. Routes define paths the product must follow. Routes may be applicable or not, depending on the products, sales order lines, warehouse,...
To fulfill a procurement, the system will search for rules belonging to routes that are defined in (by order of priority):
Warehouse Route Example: Pick → Pack → Ship
- Picking List:
- Pick Zone → Pack Zone
- Pack List:
- Pack Zone → Gate A
- Delivery Order:
- Gate A → Customer
Routes that describe how you organize your warehouse should be defined on the warehouse.
- A Product
Product Route Example: Quality Control
- Supplier → Input
- Input → Quality Control
- Quality Control → Stock
- Product Category
Product Category Route Example: cross-dock
- Supplier → Input
- Input → Output
- Output → Customer
- Sale Order Line
Sale Order Line Example: Drop-shipping
- Supplier → Customer
Push rules trigger when products enter a specific location. They automatically move the product to a new location. Whether a push rule can be used depends on applicable routes.
- Quality Control
- Product lands in Input
- Push 1: Input → Quality Control
- Push 2: Quality Control → Stock
- Warehouse Transit
- Product lands in Transit
- Push: Transit → Warehouse 2
Routes and rules define inventory moves. For every rule, a document type is provided:
- Delivery Order
- Purchase Order
Moves are grouped within the same document type if their procurement group and locations are the same.
A sale order creates a procurement group so that pickings and delivery orders of the same order are grouped. But you can define specific groups on reordering rules too. (e.g. to group purchases of specific products together)