Inventory Management Flowchart For a Merchandising Company Group 2 Jennifer Dalisay Victor Tea Brian Romano Cheryl Villamor

From Purchase Ordering Procedure 1 Low inventory triggers the reorder point. From the `Purchasing Department, a merchandise reordering report is received and the purchase order data is keyed into the computer by an employee. The computer inputs the quantity ordered into the inventory records. This is then stored in three offline storage files. Merchandise Reorder report Enter Purchase Order Data Insert Quantity ordered into inventory records Open Purchase Order File Purchases Transaction File Merchandise Inventory Master File

From Receipts Procedure 2 Receiving Report Receiving Reports come in after the goods were received. The Receipts Data is then keyed into the computer and the quantities received are added to the inventory on-hand. This information is saved offline in three separate files. Enter Receipts Data Add Quantities received to on-hand balances Open Purchase Order File Merchandise Inventory Master File Receipts Transaction File

3 From Sales Procedure Shipping Report comes in from the Shipping Department and the information is keyed into the computer as shipping data. The quantities shipped are deducted from on-hand balances. This information is saved offline in the Merchandise Inventory Master file. Shipping Report Enter Shipping Data Deduct quantities shipped from on-hand balances Merchandise Inventory Master File

From Return Procedure 4 Credit Memo Credit Memos and Purchase Memos are generated when items are returned from a purchase or a sale. The return data is keyed in to change on-hand balances to reflect adjusted quantities. It is saved offline in the Merchandise Inventory Master File. Conditions of the returned goods are noted in the Merchandise Inventory Master File. Purchase Memo Enter Return Data Change on-hand balances to reflect adjusted quantities Merchandise Inventory Master File

5 Based on the updates of the four storage files, six reports get printed on a daily basis. Purchases Transaction File Merchandise Inventory Master File Open Purchase Order File Receipts Transaction File Print Reports Print Daily

Open & Overdue Purchase Orders report. 6 Print Reports Using the data from the Open Purchase Order file, an Open and Overdue Purchase Order Report is generated in addition to a Purchase Order for the goods needed to be reordered. The report and the purchase order are then sent to the Purchasing Manager for approval. Open & Overdue Purchase Orders report. Purchase Order To Purchasing Manager

7 Print Reports Once the reports are printed an Inventory Status and Usage Report are generated simultaneously. These two reports are then sent to the inventory manager for further consideration. Inventory Status Report Inventory Usage Report To Inventory Management

8 Print Reports An Expected Stock-Out Report and a Merchandise Reorder Report are generated. The Expected Stock-Out Report informs managers of potential shortages in stock for specific items in inventory. The Merchandise Reorder Report contains the information for reordered items in inventory on a daily basis. These two reports are also sent to the Inventory Manager for further consideration and approval. Expected stock-out Report Merchandise reorder report To Inventory Management

Summary of merchandise receipts 9 Print Reports A Summary of Merchandise Receipts is also created. This report informs the Receiving Manager about all of the goods that have been received that were previously ordered through the Purchasing Department. Summary of merchandise receipts To Receiving Manager

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