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

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

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

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

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

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

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)

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

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

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

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

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

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

For the Blank SKU

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

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

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

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

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

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

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 :-

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

The fulfilment requirement will now look like

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