Inventory Module

Overview

The Inventory Module is an essential enterprise management tool that helps manage inventories by tracking two categories of inventory – finished products and materials required for manufacturing. It interfaces seamlessly with the BUY (e-Procurement) and SELL (e-Billing) modules.

The module offers basic warehousing management features and helps keep track of movements of inventory items. It can track transfers between factory and warehouse and between locations.

The material issuance feature of the module tracks issues through production issue notes, which records the issuance of every material item to production. The module mirrors production costing sheets, which helps gather other production costs such as labor cost and overhead. However, complex manufacturing processes may require proper MRP documentation.

The Inventory Module follows an accounting approach that prioritizes closing inventory valuation, notably for manufactured goods, to ensure accurate cost of goods sold stated in the profit statement. The methodology requires deducting the value of closing inventory from the total expenditure of the current financial period and carrying it forward to the ensuing financial period.

The module categorizes inventory items into product/material groups to facilitate warehousing and tracking. It also allows for setting automated reorder levels for materials and finished products to ensure timely replenishment. Reports on inventory levels, material requirements, and usage can be generated and used for decision-making.

To ensure data accuracy, the Inventory Module features built-in security and audit trail features that restrict access to authorized personnel only. The audit trail records every transaction made in the system.

In summary, the Inventory Module is an invaluable tool for managing inventory in any enterprise. It ensures precise inventory tracking, efficient material usage, and accurate inventory valuation for financial reporting.