35 lines
1.7 KiB
Markdown
35 lines
1.7 KiB
Markdown
---
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{
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"_label": "Stock / Inventory"
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}
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---
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For most small business that deal in physical goods, a large part of their net worth is invested in the stock in hand.
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### Best Practice
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There are two aspects to good material management:
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- **Good housekeeping / visual control:** Keep all your items in separate bins and each neatly stacked and labelled.
“A place for everything and everything in its place”
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- **Accurate Data:** Accurate data comes from good processes and recording each and every transaction. If you are only partially recording your inventory then your reports will be incorrect
“Garbage In Garbage Out”
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If you have good processes to control movement of goods within your organization, implementation in ERPNext will be a breeze.
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### Material Flow
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There are three main types of entries:
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- Purchase Receipt: Items received from Suppliers against Purchase Orders.
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- Stock Entry: Items transferred from one Warehouse to another.
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- Delivery Note: Items shipped to Customers.
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#### How does ERPNext track stock movement / levels?
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Tracking stock is not just about adding and subtracting quantities. Some complications arise when:
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- Back-dated (past) entries are made / edited: This affects future stock levels and may lead to negative stock.
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- Stock has to be valued based on First-in-First-out: ERPNext needs to maintain a sequence of all transactions to know the exact value of your Items.
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- Stock reports are required at any point in time in the past: You have to lookup what was the quantity / value your stock of Item X on date Y.
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To manage this, ERPNext collects all inventory transactions in a table called the Stock Ledger Entry. All Purchase Receipts, Stock Entries and Delivery Notes update this table.
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