3.2 Order processing and stock records

In order to manage and control stocks, we need to maintain an up-to-date record of the quantities of stock held for each item in our warehouse. As we have already seen in Chapter 2, this is also a vital component of the order processing system. A basic stock record will hold, for each item held in the warehouse, a record of the quantity in stock and a history of recent receipt and issue transactions made against each item. In order to provide a full picture of what is happening to each item, it is common practice to separate into different transactions the different types of receipt and issue made. Most receipts in a warehouse will no doubt be from the manufacturing operation but some may come from outside suppliers or be returns from customers following an incorrect delivery, or returns from other in-house stock locations or from internal departments who have had some temporary use of the item in question. Such latter returns will normally have to have been cleared by quality assurance that they are in a satisfactory condition for use before being returned to stock. Issues, likewise, will normally be to customers as a sales transaction but may also be to other in-house stock locations or for internal use. As indicated in Chapter 2, it may be necessary to allocate stock to an order prior to despatch, in which case it is necessary to separate the transaction into two, one for allocation...