Page 107 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 5: ERP Modules

2. Managing Stocks by Value: The stocks are managed not only on a quantity basis but also notes
by value - a prerequisite for cost accounting. With every goods movement, the following
values are updated:
(a) The stock value for inventory management
(b) The account assignment for cost accounting

(c) The corresponding G/L accounts for financial accounting via automatic account
assignment
Both the quantity and the value are updated automatically when entering a goods
movement.
This mainly deals with monitoring inventories by quantity.
3. Planning, Entry, and Proof of Goods Movements: Goods movements include both
“external” movements (goods receipts from external procurement, goods issues for sales
orders) and “internal” movements (goods receipts from production, withdrawals of
material for internal purposes, stock transfers, and transfer postings).
For each goods movement a document is created which is used by the system to update
quantities and values and serves as proof of goods movements. Goods receipt/issue slips
are printed to facilitate physical movements and the monitoring of the individual stocks in
the warehouse.

This focuses on planning and entering all types of goods movements.
Physical Inventory

The adjustment between the physical stocks and the book inventories can be carried out
independently of the physical inventory method selected.
The ERP System supports the following physical inventory methods:
1. Periodic Inventory

2. Inventory Sampling
3. Cycle-Counting

5.6.2 inventory management and Warehouse management

The Inventory Management system can be extended by the Warehouse Management system
(WM) which manages storage bins in complex warehouse structures.

While Inventory Management manages the stocks by quantity and value, the Warehouse
Management component does even more by reflecting the special structure of a warehouse,
monitoring the allocation of the storage bins and any transfer transactions in the warehouse via
completion confirmation procedures.

Invoice Verification

The Invoice Verification component is part of the Materials Management (MM) system. It
provides the link between the Materials Management component and the Financial Accounting,
Controlling, and Asset Accounting components.

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