Page 244 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 12: Warehouse Management

Notes
Figure 12.10: Stores Ledger

All transactions are entered into the Stores Ledger from copies of vouchers received from the
different sections. Stores ledger, for both quantity and value, should be closed at the end of each
month and reconciled with the summaries of purchase and indents.

In managing a warehouse, you can control the goods receipt and goods issue processes at a
physical level. Store has as its objective the rapid flow of material into a facility. Ideally, the
material would move directly to the production line without making an intermediate stop in a
warehouse or other storage area. However, if the material cannot be used immediately, it is
placed in storage.

Issue of Materials

Issue of materials from storage is controlled through Material Requisition Note and Material
Transfer Note.
The data required for goods issue posting is copied from the Material Requisition Note into the
Material Transfer Note so that:
 Warehouse stock is reduced by the delivery quantity.
 Value changes are posted to the balance sheet account in inventory accounting.

 Requirements are reduced by the delivery quantity.
 The serial number status is updated.
 The goods issue posting is automatically recorded in the document flow.

 Stock determination is executed for the vendor’s consignment stock.
 A work list for the proof of delivery is generated.
After goods issue is posted for an outbound delivery, the delivery might be shipped to the
customer directly from the fulfilling locations (more than one delivery), or consolidation may
occur at one location before one complete shipment is transported to the end customer.

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