Stock Inward Movement Process Document

Stock Inward Movement Process Document

This document outlines the procedures involved in the inward movement of stock, detailing each stage from ordering to final receipt in specific storage locations or "BINs."

1. Purchase Order

Definition: A Purchase Order (PO)Formal document to request goods/services from a supplier. is issued to a supplier to request goods or services at a specified price.

Process:

  1. Identify the required stock items and quantities.
  2. Check supplier details, including pricing and availability.
  3. Create a Purchase Order in the system with item details, quantities, prices, and expected delivery dates.
  4. Submit the PO for approval per the organization’s authorization policy.
  5. Once approved, send the PO to the supplier.

Outcome: A confirmed order, committing the supplier to provide goods under the terms specified.

2. Purchase Receipt

Definition: A Purchase Receipt is generated upon receiving goods from the supplier to confirm that the items ordered have been delivered.

Process:

  1. Upon receiving the shipment, verify delivery against the PO for accuracy in terms of quantity and item description.
  2. Conduct a quality check to ensure that goods meet the required standards.
  3. Record the receipt in the inventory system, matching items to the corresponding PO.
  4. Document any discrepancies or damaged items for further resolution.

Outcome: Inventory is updated with the received stock, and a record of the receipt is maintained for payment processing.

3. Stock Transfer to BIN

Definition: Stock Transfer to BIN refers to moving items to specific storage bins or locations within the warehouse.

Process:

  1. Identify the stock items and quantities that need to be transferred to specific BINs (storage locations).
  2. Create a Stock Transfer request in the system, detailing the items and destination BINs.
  3. Review and approve the transfer request to ensure inventory accuracy.
  4. Physically transfer items to the specified BINs and update the system to reflect the change in location.

Outcome: Stock is accurately placed in designated BINs, and inventory levels are updated to show current storage locations.

4. Stock Receive in BIN

Definition: Stock Receive in BIN acknowledges the addition of goods to specific storage locations or BINs, either from an external source (like a supplier) or an internal transfer.

Process:

  1. When stock arrives, verify it against the Stock Transfer or Purchase Order documents.
  2. Check the quantity and quality to ensure consistency with the documentation.
  3. Record the receipt in the inventory system, specifying the BIN location where the stock is stored.
  4. Update stock levels in the inventory to reflect the current BIN locations.

Outcome: Stock is recorded within designated BINs, ensuring precise tracking and easy retrieval.