This section is the Inventory On Hand. It contains the quantity of items on hand or in the warehouse.
Overview:
Inventory On Hand is the tally module of active items in item master file. Inventory on hand balance computation comes from system job orders and inventory adjustment. Items shown here were classified according to warehouse and item class.
Balance Calculation Basis:
System inventory balance calculation is sensitive to document report date and reported physical count dates. Meaning, user (in this case the report doer) should know when actual transaction made and whether the transaction is made on or before the reference physical count.
PM Quantity
system resets inventory on hand balance base on Inventory Count JO reported quantity;
system subtracts count from balance base on Preparation JO requested quantity;
system adds count from balance base on Receiving JO requested quantity;
system adds count from balance base on Back-load JO requested quantity;
system either add or subtracts from balance base on Inventory Adjustments made;
system either add or subtracts from balance base on Transfer JO requested quantity;
system performs check and balance to consider mismatched request and reported quantities
note: JO preparation limits the allowable request quantity base on this balance assuming that PM request are followed every time.
WH Quantity
system resets inventory on hand balance base on Inventory Count JO reported quantity;
system subtracts count from balance base on Preparation JO reported prepared quantity;
system adds count from balance base on Receiving Report reported received quantity;
system adds count from balance base on Back-load JO reported back-loaded quantity;
system either add or subtracts from balance base on Inventory Adjustments made;
system either add or subtracts from balance base on Transfer JO reported transferred quantity;
note: This balance is the current item inventory in the warehouse excluding all preparation
ACCT Quantity
system resets inventory on hand balance base on Inventory Count JO reported quantity;
system subtracts count from balance base on Delivery Report Delivered quantity (not from Prepared Qty);
system adds count from balance base on Receiving Report received quantity;
system adds count from balance base on Back-load JO reported back-loaded quantity;
system either add or subtracts from balance base on Inventory Adjustments made;
system either add or subtracts from balance base on Transfer JO transferred quantity;
note: This balance is the current item inventory in the warehouse including all preparation
Notes to consider to Keep Inventory Accuracy using this system:
post an accurate beginning inventory count (Inventory Count JO)
reconcile beginning inventory count as needed and the soonest upon reporting of inventory count
be aware of appropriate warehouse and item class to use and to report
report correctly as to the actual change made to the item
always remember that actual item movement always have corresponding system profile and reports
make job order reports on time
regularly check inventory accuracy by initiating an Inventory Count JO- cycle count type
update prepared quantity to cover or match excess item deliveries
update received quantity to consider shipped items for completion of previous reports
items without corresponding input in the system Receiving JO should be collected and periodically assessed
communicate with concern department officers as soon as question arises
Guide on how to re-align inventory balance to current actual count:
have all inventory affecting job orders reported to reflect most updated count
conduct inventory count (physical or cycle) using system Inventory count JO
encode and check actual count versus system count
check items with huge variance and trace transaction history (double click “status” caption in a profile)
check for over looked transactions
make necessary adjustments in affected records (use inventory adjustment as last resort)
re-check until variances are minimized
post inventory count report to reflect new and accurate actual count
note: system inventory balance under inventory item class should align with accounting's inventory on hand upon consideration of reports. So make sure to communicate system transactions cooperatively.