SKU Movement Examples

 

Simple Purchase Order and Booking Into Stock

Let’s start with a simple example of a SKU that has been created but there is no balance

i.e. TOT does not hold, nor has ordered the SKU

 

Start Position

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117879

0

0

0

0

0

 

 

Generating a Balance

TOT is going to buy 100 of this SKU to use  so creates a purchase order for the same with a supplier

Initially this is the position for the order

 

Qty Ordered

Quantity Rec’d

Qty Cancelled

Qty Outstanding

1117879

100

0

0

100

 

Note, as the purchase order has not been sent the SKU balance is unchanged

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117879

0

0

0

0

0

 

As soon as the order is updated to a sent status the position is as follows

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117879

0

0

100

0

0

We now have 100 expected at the SKU level

i.e. CR QTY expected with QTY Ordered on PO

 

Receiving and Booking in a  delivery

TOT receives 25 of the SKU as a delivery.

These are Booked in on the PO
CR Qty received by Booked In QTY
DR QTY Outstanding by Booked In  QTY

 

Qty Ordered

Quantity Rec’d

Qty Cancelled

Qty Outstanding

1117879

100

25

0

75

 

Book in as movement type actualises stock numbers and therefor affects SKU & location accounting:-

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

Warehouse Balance

1117879

25

0

75

0

25

 

DR Expected by Qty Booked In
CR Available by Qty Booked In

As the items are booked into a warehouse location – the location / SKU balance is CR by Qty Booked In

Let’s assume for completeness that the remaining 75 is received on another delivery

These are Booked in on the PO
CR Qty received by Booked in QTY (75)
DR QTY Outstanding by Booked in QTY (75)

 

Qty Ordered

Quantity Rec’d

Qty Cancelled

Qty Outstanding

1117879

100

100

0

0

 

These are booked into another physical location – note the headline SKU balance

DR Expected by Qty Booked in (75)
CR Available by Qty Booked In (75)
CR Location by Qty Booked in (75)

Note how this affects the SKU Balance

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117879

100

0

0

0

100

 

As there are multiple physical locations the SKU is booked into, the location balances for the SKU look like the following

1117879

QTY

Locn 123

25

Locn 345

75

Thus the In Warehouse Locations balance for a SKU is @sum of SKU location balance records

 

Summary

When PO sent a PO
CR  SKU Expected QTY with QTY Ordered

When booked in from PO
DR  QTY expected by Qty Booked In
CR Qty available Qty Booked In
CR Location balance by QTY Booked In
recalc In location warehouse balance

 

 

 

Example of Purchase Order Garments for usage on JOB

We’ll replicate the above but for a more typical business example where the blank garments are ordered for a Job to print 100 shirts.

Thus the blank sku will be allocated to meeting the requirements on the job – and the corresponding printed garments sent to the client

Again we will assume that there is zero balance on  the Blank SKU

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117880

0

0

0

0

0

 

The job is written up, and the output SKU 1117881 created

However, as there is no expected and no available on the blank Sku it cannot be allocated

Thus a PO is raised for 100 of the Blank Sku against the Job

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117880

0

0

100

0

0

 

Note the position for the Printed SKU – as there is 100 required to be printed – the system defaults the same as Qty expected

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117881

0

0

100

0

0

 

As the PO is linked to the Job, when the delivery is received, users execute a super set of functions

 

They Book In, Allocate and Pick for the Job in one function per SKU

This results in the following position
For the PO

 

Qty Ordered

Quantity Rec’d

Qty Cancelled

Qty Outstanding

1117880

100

100

0

0

 


For the Blank SKU

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117880

0

0

0

100

0

A zero warehouse balance, but 100 have been picked (for the Job)

 

Let’s break this down into what actually happened


First a Book in of 100 so

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117880

100

0

0

0

100

DR Qty Expected by QTY Booked In

CR QTY available by QTY Booked In

CR Warehouse location  by QTY Booked In

 

Then an allocation toward the job requirement

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117880

0

100

0

0

100

 

CR Qty Allocated by QTY allocated
DR Available by Qty Allocated

 

Then finally a Pick for the job requirement – picks are done against specific location balances

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117880

0

0

0

100

100

 

CR Qty Picked Qty by QTY Picked
DR Warehouse Location by Qty Picked
DR Qty Allocated by QTY Picked

 

Note for this super-set function, the individual warehouse location(s) are not credited / debited by the Book In and Pick respectively, but if the transactions were processed separately they would be

 

For the printed  SKU – No changes – the Printed SKU are still expected as they have not yet been produced

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117881

0

0

100

0

0

 

 

Creation of fulfilment on job

As the items are required to go out, a fulfilment is created for the whole 100 of the printed SKU

As 100 are expected the requirement can be allocated against the expected QTY




 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117881

-100

100

100

0

0

 

Allocation does the following

DR Qty available by QTY allocated
CR Qty Allocated by Allocated QTY

Thus we see a negative available position before the printed goods are actualised – this will get offset by the Qty expected which in the absence of any scrappage will be Qty that get produced

 

Actualisation of Expected on Job

At the end of the job processes, the printed goods should have been produced. The actualisation of the QTY’s that get produced is done through Data Entry

Let’s assume for our example that 98 got produced and there was 2 scrap.

 

Data Entry does the following

CR Qty Available by QTY Successfully Produced
DR Qty Expected by QTY Produced + QTY Scrapped + QTY discrepancy
CR Location Balance with QTY Successfully Produced

We thus have the following position for the Printed SKU

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117881

-2

100

0

0

98


As we have a requirement for 100 on the fulfilment; and 100 was allocated prior to the data actualisation, we cannot fully pick the fulfilment requirement – we only have 98 Garments

In this instance the user needs to de allocate  the 100 allocated

De allocate does the following
CR Qty available by QTY De-allocated
DR Qty Allocated by QTY De-allocated

as available was minus 2, crediting back the 100 allocated will result in the correct Qty available :-

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117881

98

0

0

0

98


The user can then amend the requirement to 98 and allocate the full 98

 SKU

Qty available

Qty Allocated

Qty Expected

Qty Picked

In Warehouse Balance

1117881

0

98

0

0

98

 

The fulfilment requirement will now look like

 SKU

Qty available

To be Given

Qty Expected

Qty Picked

Allocated

Warehouse balance

1117881

0

98

0

0

98

98

 

Finally the fulfilment can be picked

Picked movement does the following transactions:-

DR Location Balance by Qty Picked
CR Qty Picked by QTY Picked
DR Allocated by Qty Picked

 

 SKU

Qty available

To be Given

Qty Expected

Qty Picked

Allocated

Warehouse balance

1117881

0

98

0

98

0

0