Inventory management software that keeps the stock register matching the shelf

The register says 12. The bin has 4.

A fitter needs a bearing for the kiln drive. The register shows 12 in stock, so nobody ordered more. The bin has 4.

The other 8 went out on chits that were never entered, or were moved to the other unit on a phone call. Nobody did anything wrong. The register only had room for what someone found time to write up, and by the time the gap shows, the line is waiting.

One stock ledger for every movement

In IndustryPrime, stock changes only through a recorded entry, and every entry carries a number, a date and the person who made it:

• Receipts. A GRN against the purchase order adds the accepted quantity.
• Issues. Material leaves the store on an issue, replacing the paper material issue slip, with the cost centre it is booked to.
• Issue returns. Unused material comes back into stock against the original issue.
• Tools on returnable basis. A tool given to a fitter stays on a pending list until it is returned.
• Gate passes. Material leaving the plant for repair or for good goes on a returnable or non-returnable gate pass.
• Stock transfers. Material moves between stores of the same company, or between bins inside a store.
• Adjustments and stock counts. Adjustments can be sent for approval; stock-count corrections always are.
• Scrap. Scrap from an issue is recorded and approved.

An issue larger than the stock in hand is refused. That includes a back-dated entry that would leave a later day short. The store ledger keeps itself, and the balance on screen is the balance in the bin.

Live stock by store, brand and bin

Stock is kept for each item, brand, store and bin location. Two reports cover most questions:

• Stock summary. Quantity and value of every item in every store on a date, with its location and the total across stores.
• Stock movement. For any period up to a year: opening stock, received, issued, issue returns, purchase returns, adjustments, transfers and balance stock, with value.

When an indent is raised, the item's stock in that store and across your stores is shown beside it, so nobody orders what is already on the shelf. The phone app shows live stock to anyone who needs to check before asking the store.

Stock value at FIFO cost

Each receipt enters stock at its own rate. Each issue is valued from the oldest receipts still in stock, first in, first out. The value of what remains is the cost of those remaining receipts, so the stock value in the report is a figure accounts can work with.

Because every issue carries a value, consumption by cost centre is in rupees, not only in quantity. See material consumption tracking.

Reorder lists that show what is already coming

Set a minimum, maximum and reorder level for each item in each store. Once reorder levels are set up for your stores, items at or below their reorder level are listed every day with:

• Stock in this store, and in your other stores
• The last purchase rate
• A suggested quantity, enough to bring stock back to the maximum
• Quantity already on open indents and on pending POs
• Whether an indent, PO or GRN is already in progress

The buyer sees what is already on the way before ordering more. More on this in preventing stockouts.

Find stock that is not moving

The stock aging report splits the stock in hand by how long ago it was received: under a month, one to three months, three to six, six to twelve and over a year, with quantity and value. A monthly report lists material that was received but not issued afterwards: bought, and still untouched.

Together they show where cash is sitting on the shelf. See dead stock management.

Counting and correcting stock

For a physical count, the store enters the counted quantity for each item and location. IndustryPrime works out the difference from the system stock. The correction is approved before it reaches stock, and every count stays in the physical stock register with who counted and who approved.

Chand Prakash Singh, Store Head at Brahmaputra Metallics, said: "Store, inventory, GRN, we can see it all in one place."

What it does not do

• It does not raise indents by itself. The reorder list suggests a quantity; a person raises the indent.
• The reorder list is refreshed once a day, early in the morning, not after every issue. Stock reports are live.
• The suggested quantity is maximum level minus stock in hand. Open indent and PO quantities are shown beside it, not subtracted from it.
• No batch-wise or serial-number stock. Stock is kept by item, brand, store and bin. An expiry date can be recorded on the GRN for items with a shelf life, but stock is not split by batch.
• One valuation method: FIFO. Weighted average and standard cost are not offered.
• Barcode labels and scanning are not part of the standard setup.
• Transfers stay within one company. Stock cannot be transferred between two different companies.
• Stock and issues are not posted to Tally. GRNs go to Tally as purchase entries.

Where to start

Most plants do a physical count at go-live and load it from Excel with rates and bin locations. From then on, receipts and issues keep the balance right. Set reorder levels first on the items that have stopped production before.

For the whole cycle from indent to issue, read the store and purchase management software guide. To see your own items in it, book a demo.