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Unit 9: Warehousing

In managing a warehouse, you can control the goods receipt and goods issue processes at a Notes
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.
9.2.4 Issue of Materials

Figure 9.7: Stores Material Requisition Note (SMRN)

Source: Upendra Kachru (2010), “Exploring the Supply Chain,” Excel Books
Issue of materials from storage is controlled through Material Requisition Note and Material
Transfer Note shown as Figures 9.7 and 9.8. 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.

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