Inventory Control

Manual Stock Issues

Purpose

This function can be used to manually enter the details of ‘Stock Issues’ that have occurred in given Stock Locations. Once an issue is completed using this facility, the items are moved out of the inventory from the issuing stock location via a ‘Manual Stock Issue (MSI)’ transaction, and the value of the inventory being issued is posted (written-off) to the General Ledger accounts nominated on each line item.

This function is an immediate process with no associated paperwork. The intent of this facility is to complete a transaction for a stock issue movement that has already occurred physically i.e. it is a post-process function used ‘after-the-fact’ to bring the perpetual inventory system back into line with what has occurred to the physical inventory. As such it would typically be used by exception only. The Order Management functions for processing Stock Transfers & Sales Orders (with associated paperwork) or Manufacturing ‘raw material’ issues would normally be the correct procedure to use when recording stock being issued from stock locations.

This procedure is sometimes deployed as an interim process to enable stock to be issued until the manufacturing and/or order processing systems are used. However, it can also be run as an on-going facility if neither of these systems are going to be deployed. Please refer to the ‘Stock Reasons‘ topic for examples of the types of reasons you would process transactions in this function.

Data Input

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Step 1 – Location

Location

Enter an existing Stock Location. This is the location from which the stock is being issued out of inventory. This location designates the warehousing or issuing point for the products you are entering.
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Step 2 – Transaction Details

Reason

Select the ‘Stock Reason‘ for the transaction. Stock Reasons are used for reporting purposes and also provide a default General Ledger account for the posting which improves data entry speed and accuracy by having it predefined.

Reference

Enter any relevant number (docket number/transaction number) to record on this transaction. You have up to 12 characters to enter manually.

You may also choose to let the system automatically generate a reference number by allocating the next reference number in the sequence by selecting the “Next” option. Sequential reference numbers are allocated based on the details set up for Document Prefixes.

Details

Enter a short description relating to the stock issue being performed. This is shown in displays/reports for future reference. Enter details describing the issue transaction that you are entering as free-form text. If a ‘Stock Reason‘ is selected then the reason’s description is used as a default to assist the user.
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Step 3 – Issue Items

The products to be issued from stock are entered in the form of a list, with details of each product on a separate line (row) of the list. Use the ‘Add’ icon to include issue details for a given product to the list.

Product

Enter an existing ‘Product’ for which you want to complete a stock issue. The product must be a valid stock item i.e. it cannot be a ‘Service’ or ‘Add-On’ charge product.

Note that once a product is entered/selected, if appropriate, the user is prompted to select a Size and/or Colour. This assumes these features are turned on in the Product Format function and that the product itself is sized/coloured.

Quantity

Enter the ‘Quantity’ of the product that is being issued. This quantity is entered in purchase or stock units. Please refer to Quantity Input for more details on entering quantities and associated data such as Bins and Tracking details.

NOTE: The entry of a negative quantity is allowed and supported. Entering a minus in front of the quantity will essentially do a stock receipt (add to stock on hand) even though the transaction type is a stock issue. This can be useful if you want to correct a previous error/mistake with the same transaction type.

Cost

The cost value at current stock unit cost multiplied by the issue quantity is displayed on the screen.

Update Usage

Select whether you wish to update stock usage or not with the quantity being issued. The user can determine the nature of the stock issue and decide whether this transaction is to be considered normal stock usage and therefore be recorded as historical usage for the item and later used by the inventory replenishment system.

To ‘Update Usage’ is selected (ticked) by default. If the option is selected this means usage is updated with the quantity issued here to this stock item’s usage figures.

If this option is not selected, this means you do not want the quantity being issued for this product to update the usage figures as valid stock usage.

Posting

A mandatory part of completing a stock issue adjustment is to enter the “Posting” details for the transaction that is created. You may post the value of the adjustment to either a General Ledger account, a Work Order or to the Job Costing ledger. If the stock reason selected has a default posting account recorded on it then this is the default posting recorded. Read here for more details on Account Postings.

Note: When posting to a GL account, the account entered here would NOT normally be a Stock On Hand account. The system already knows that this is a stock adjustment and so retrieves the appropriate GL account from the Product Group for the product being adjusted and uses that for one side of the GL posting. This prompt is asking for the other side of the posting, which is typically a non-balance sheet account i.e. a P&L or trading account.

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Finish & Links

Links

After submitting the transaction, the reference number for the transaction is shown and the user has the following options available:

  1. Create another Stock Issue transaction for this Location
    • This option returns the user to the start of a new transaction but maintains the current issuing stock location from the previous transaction to save time with re-entry
  2. Create another Stock Issue transaction for a different Location
    • This option returns the user to the start of a new transaction, prompting them for a new issuing stock location

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