As well as individualised SKU level accounting - there is the concept of homogenised stock.
Under this concept, a group of SKU's are homogenised and treated on a grouped basis.
As the homogenised group of SKUs moves between locations, they are accounted for as a single unit not as the underlying constituent SKUs.
This concept can be better understand through the following examples.
Example |
Details |
Purchase Order |
These are incoming boxes that, until we have investigated their contents and have been booked in, will require a recorded location. This will be referenced by the P/O and associated Barcode. |
Jobs in Progress |
When stock is picked for a job, movement transactions occur - that is one or more SKU’s will have been physically removed from their storage location (and debit the storage location balance) and are grouped together and associated to the job.
The stock moves around the factory between the various process areas as required by the process lines on the job. The
homogenised
storage location for this situation
is known as the picked stock location.
Data entry books decorated product SKUs into a location. In essence Data Entry transforms stock from a grouped job level entity into individual SKU balances booked into storage locations
|
Fulfilment in Progress |
This works in an identical way to jobs in progress. Assuming a linear path of a decorated product SKU booked into location at the end of the production process (Data Entry), the despatch of this product will occur at some point via a Fulfilment.
When the decorated SKU is picked for the fulfilment, it is physically removed from its storage location (which debits the SKU balance for the storage location) and the stock is then associated as a grouped element against the Fulfilment Again this is known as a picked stock location |
It is worth remarking that whilst a production cycle may involve a (booked in) Blank stock SKU being picked from location for a job, often blank stock will have been specifically ordered for the job, and when delivered is processed straight through to the job order. Under this situation, the blank stock is never actualised as individual SKU’s booked in to a location, as it is simultaneously picked.
When a delivery is received on a purchase order the following happens
The homogenised stock is credited to a location
When the stock is actualised and booked in the following occurs
DR Location for Homogenised Stock
The actualised stock (SKU's) are accounted for per PO booking in process
When stock is picked for a job, it transitions from SKU level to homogenised level
It is then placed against a picked stock location and moves between locations in a homogenised form until the last process is completed and the stock is again actualised via data entry at which point the homogenised stock is transitioned back to SKU and booked into one or more locations - so Location Balance and Qty available are credited with the quantity produced, and the corresponding expected amounts are zero'd
Actualised stock must first be picked for fulfilments - once picked the SKU level stock is again transitioned to a homogenised state and placed against location(s) to awaiting despatch.
When despatched, the homogenised stock is debited from the location.
These can be summarised as follows.
Object |
Place |
Move |
Purchase Order |
Requires
destination location; and records that location against PO record |
Requires
location; and records new location against job record |
Jobs in Progress |
Requires destination location;
and records that location against Job record |
Requires location; and records
new location against job record |
Fulfilment |
Requires destination location;
and records that location against Fulfilment record |
Requires location; and records
new location against fulfilment record |