You will use the program’s item list to maintain information on each item, including its description, pricing, and preferred vendor, among other things. You will also define a minimum quantity for each item at each of its storage locations. The program compares this minimum quantity to the quantity on hand to determine when you need to restock an item.
The purpose of your inventory is to enable you to issue items to employees who need them to do their work. You will issue most items automatically through pick lists or through the Work Order program. You can also issue items manually.
A pick list is simply a list of inventory items and the quantity of each that someone has requested. To complete a pick list, someone will “pick” the items out of inventory and deliver them to their destination.
Some pick lists begin as requests from employees. A purchasing agent can combine requests into pick lists in either the Purchase Order program or the Consumable Inventory program. You will also use a pick list each time you restock a storage location or truck from another warehouse.
The Work Order program also “issues” items automatically. As maintenance employees use items to complete jobs, the items are recorded as used in the Work Order program. Work Order informs Consumable Inventory, which then reduces its quantities on hand for those items.
As issued items fall below their minimum quantities, the program adds them to a restock list. You can use pick lists to restock from other warehouses or, if necessary, create requests to purchase from vendors.
Purchase requests typically go to the Purchase Order program, but employees with purchase order authority can also process requests and create purchase orders directly from Consumable Inventory. As vendors deliver items and you record them as received in Purchase Order, Consumable Inventory automatically updates the inventory quantities of those items.
From time to time, you may need to return items to vendors or receive items your employees have returned to a warehouse. You may occasionally dispose of items or manually transfer them between warehouses.
At least annually, your agency must make a physical count of your inventory for financial auditing purposes and to detect theft or “shrinkage.” Consumable Inventory includes a streamlined process for counting items, adjusting quantities, and reporting discrepancies.
You will regularly report on inventory items for management, budgeting, and financial auditing purposes.
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