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

2. From Purchase Ordering Procedure1
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

3. From Receipts Procedure2
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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Summary of merchandise receipts9
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

11. Thank You!