III – Advanced Inventory Features
Buying from a nearest petty shop is so easy. Shop owner will give things and gets backs money. But it is not so in the case of all Purchases / Sales. Can we go and buy a car when we have bag full of money? Can a car manufacturer buy 1000 Tyres immediately from a Tyre manufacturer?
It needs gestation time to manufacture and deliver goods.
In the modern business world, a purchase cycle emerges from purchase order issued by customer to a selected supplier. The supplier will take necessary time to deliver goods to the customer along with a delivery note. Customer will check quantity and quality and give his consent. Based on the consent, supplier will raise invoice on the customer. At last, the customer will arrange to pay for the bill. Like purchase, sales cycle will also have stages. In some of the cases, ordered goods may be sent directly with invoices. Tally as these two facilities namely order processing and tracking system.
Enabling Purchase and Sales orders:
F11: Features -> Inventory Features is the path to enable order processing.
F4: Purchase Order, F5: Sales Order Options will be enabled with inventory button tool bar in the voucher entry screen.
Enabling Tracking System:
As already discussed, Goods will be delivered on a Day and bill will be raised on another day. Actually these two activities are two sides of a transaction. When goods sent it will affect inventory books and accounts books will get updated only when a bill is raised. So there should be a system that checks each delivery was billed or not. Since this facility helps to track receipt note with respective purchase bill or delivery notes with respective sales invoice, it is been named as ‘tracking system’. When the tracking system gets enabled, F8: Delivery note, F9: Receipt note options will be added with the inventory vouchers.
Entering Orders and linking with Notes / Invoices:
If an order is raised or accepted, then it should be recorded. When goods delivered towards the order, it should get adjusted. A summary must be prepared to know the status of each and every order. These are all the important points to be discussed under order processing:
Entering Purchase / Sales Order
Display of Purchase / Sales Order
Linking Order with Note
Linking Order with Invoice
Display of Order Summary
Pre-closure of Order
Tracking Notes with Rejections, Invoices:
Sending Goods and raising bill after consent from the receiver or two sides of a single transaction. Inventory books to be updated when sending goods and tracking system must alarm for bill to be raised. Bill to be raised and against pending notes, after getting the acceptance.
Entering receipt / delivery note
Linking note with invoice
Display of bills pending
Chapter – 12 Order Processing & Tracking System:
Exercise:
- Purchase Division of a book selling company wants to know the pending orders and bills to be received. If any. It submits the following details.
| Date | Particulars |
| 03.05.XX 07.05.XX 10.5.XX 12.5.XX 13.5.XX 13.5.XX 17.5.XX | Send Order to M/s Scholastic Press Harry Potter and the Deadly Hallows-J.K Rowling PO No.SP/18 Due to 12.5.XX 25 Nos @ Rs.499 Send Order to M/s Oxford India-PO PB/09 Due 15th Argumentative Indian- Amartya Sen-20 Nos @ 299, Discovery of India – Jawaharlal Nehru -10 Nos @ 499 Scholastic press sent 15 books towards SP/18 vide its DC 144 Due to heavy demand rest will be sent Later. PB/09 fully served by Oxford vide DC Ox/454. But two copies of Discovery of India are not bound Properly. Received bill no. Sch/I/2121 for Rs.7485 from Scholastic press Sent order to M/s Penguin India-PO PI/21 Due.7 days Ignited Minds – APJ Abdul Kalam – 50 nos @ 125 Oxford sent bill no.457789 for Rs.9972 |
2. On 05.08.XX, a property hiring company accepted given marriage contract from Jagan & Family under No.0018:
On Receptionist 13.8.XX On Wedding – 14.8.XX
Item Qty Rate Item Qty Rate
Marriage 1 3000 Chairs 150 3
Fancy lights 5 500 Fountain 1 500
Chairs 300 3 Wash Basin 3 150
Fountain 2 500
Wash Basin 5 150
On reception day 50 chairs were shortly sent and on wedding day 1 wash basin. Marriage party agreed to pay all except for a fancy light which was not in order. Help the company to send a proper bill.