Business Improvement : IT System with Inventory Error

Below is a system based on UBS Software for illustration purpose. You may have other computerized system at hand, however, please do consider the following error while performing your daily entries. These are the basic inventory error detection should be made available.

 

DETECTIONS on INVENTORY ERROR
 - Correctly Recorded System (5 samples)
- Searchable Recorded System (2 samples)
- Correcting Recorded System (1 sample)
- Control Recorded System (4 samples)
- Self-Checking Recorded System (1 sample)
 

Why stock is tedious task to maintain?
a) price changes due to inflation, not knowing which stock is old and new.
b) costing changes due to promotion seasons such as buy 1 free 1
c) identical product put everywhere within the warehouse and shop.

 

1: Correctly Recorded System (5 samples)

01. Detection on Stock Quantity <= 0, Stock Quantity > Specific Limit
     * Go to Reports > Sales Order Status Report > Zero Available Stock
     * Go to Reports > Inventory Reports > Physical Worksheet
        Post to Ms. Excel, sort by Quantity

   

 

02. Detection on Cost > Selling Price, Cost <= 0, Selling Price <= 0, Markup > Limit, Margin > Limit.
     * Go to Reports > Sales Reports > Profit Margin > By Product
      * From here, Gross Profit must tally with Accounts Gross Profit Margin.

   

 

03. Detection on old stocks or mistake entry such as duplicate code for same product?
      * Go to Reports > Inventory Reports > Stock Aging Report

    

 

04. Detection on stock value on how money being invested on
      a) old products,
      b) not popular products
      c) damage products
      d) popular products
      * Go to Reports > Inventory Reports > Stock Aging Report
      * This value when put into Accounts, it must tally with Gross Profit Margin.

     

05. Identify your stock value, that you might come across with the following :
      a) stock available, selling price available, cost price unknown
      b) stock available, cost price available, selling price unknown
      c) stock available, selling price unknown, cost price unknown
      * missing out the above figures, your stock value is reported incorrect.

 

2: Searchable Recorded System (2 samples)

 

01. Price tracking on Historical Price Listing, includes, selling price, purchasing price,
      seasonal price, bulky price, unit measurement of price (carton, piece).
       * Go to Transactions > Historical Records > List Historical Price

    
 

02. To Proof Top Selling Product Achieve Profit Margin, tally with Accounts.
       * Go to Reports > Sales Reports > Top 50 Products
       * by Sales Quantity and Sales Value

      

 

3: Correcting Recorded System (1 sample)

 

01. A smart program should be written with a single touch or button for detection and correction.
      A preview of the products enabling easy findings of error, and correction is directly addressed.

     

 

4: Control Recorded System (4 samples)


01. A control system is needed especially for the followings:
      - Deleted Bills is kept or dispose
      - Negative stock quantity is allowable or not-allowable. Costing will be an error, if quantity < 0
      - Safety control password for
         a. Selling below cost : will result changes of product profit margin
         b. Minimum Selling price : result changes of product profit margin
         c. Selling above credit limit : giving more credit term for customer
         d. FOC item : result changes of product profit margin
         e. Edit Bills : for any editing bills, require password confirmation
         f. Delete Bills : whenever for deleting any bills, a password is required
         g. Second Print control : when printing more than once is required, password is needed.
               

02. A control system for menu accessed.

     

03. A control system for detail item accessed.

   

04. A control system for checking who keyed, and who modified the bills.

 

   

 

 

5: Self-Checking Recorded System (1 sample)

 01. Data Integrity Check
      This is useful to identify if the data has bad records or less No. of Records due to:
      a) failure during backup process
      b) failure during restore process
      c) failure during electricity failure
      d) computer hardware failure : for example : hard disk error / pen drive error
      e) computer software failure : for example : Virus