This article lists out all the transactions that affect inventory value in OurSys. The access rights to these transactions should be restricted and users must be accountable for the entries as it has a direct impact on the inventory valuation.
1. Purchase Goods Receipt Note (GRN)
Goods Receipt Note is the proof of material entering the premises. The GRN only mentions the quantity as per the supplier invoice. The actual counting and quality check gets done later. Though this material gets added to inventory value for accounting purpose, the material in not available for production until quality clearance. Therefore the material does not show in the stock statement meant for stores or production.
2. Purchase Return Invoice
All purchase rejections are returned to suppliers using the purchase return invoice document.
3. Material Issue to Production
Inventory gets deducted from stores and gets transferred to WIP when material is issued to production.
4. Issued Material Returned back from Production
This transaction deducts the WIP inventory and adds it back to stores inventory.
5. Produced Material Inward
This is the inward of finished job order items after final inspection. This adds to the stock of the item produced in the stores.
6. Scrap Inward from Production
This increases the stock of the Scrap Item.
7. Sales Invoice
This reduces the finished goods stock.
8. Sales Return
This increases the Finished goods stock but the items are shown by default under inspection where the quality is decided.
9. Opening Stock
This increases lot wise inventory. This option must not be used after the software goes live. It is to be used only at the start of the software.
10. Stock Reconciliation
This transaction is for correcting the stock after physical stock check is carried out. This either reduces or increases the stock based on the physical count.
11. Delivery Note
The stock gets moved from Stores to an outside location such as Exhibition or Customer. The stock gets reduced only after invoicing.
12. Salvage
This transaction is used to convert an Item into another item. This option is typically used for rejected material.
13. Material Issue to departments other than production
The effect is similar to material issue to production. The material gets deducted from stock.
14. Issue of Returnable Goods such as Tools and Toolings
The stock is just transferred from Stores to Production location. The net stock remains the same.
15. Stock Movement
This transaction moves stock from one location to other within the Stores. There is no effect on overall stock.
16. Warehouse Transfer
This is used only for inter company location transfer. It deducts stock from one location and adds it to the other. There is no overall impact in the value of stock.