Inventory Flowchart 2 Merchandising Company

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Inventory Flowchart 2Merchandising Company

• Aracely Drlik
• Jason Gutierrez
• Jeffery Hua
• Kurniawan Mualim (Vincent)

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Inventory Management Flowchart 2
From Purchase Ordering
From Receipts Procedure
From Sales Procedure
From Return Procedure
Receiving Report
Shipping Report
Shipping Report
Merchandise Reorder Report
Purchase Memo
Enter Receipts Data
Enter Shipping Data
Enter Purchase Order Data
Enter Return Data
Add Quantities Received to On-hand Balances
Deduct Quantities Shipped from On-hand Balances
Change On-Hand Balances to Reflect Adjusted
Quantities
Insert Quantity Ordered into Inventory Records
Purchase Transaction File
Merchandise Inventory Master File
Open Purchase Order
Receipts Transaction File
Merchandising Company NOT Manufacturing Company
Print Reports
Print Daily
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Inventory Management Flowchart 2(Merchandising
Company)
Print Reports
Print Daily
Open Overdue Purchase Orders Report
Inventory Status Report
Expected Stock-Out Report
Summary of Merchandise Receipts
Inventory Usage Report
Merchandise Reorder Report
Purchase Order
To Purchasing Manager
To Inventory Management
To Receiving Manager
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From Purchase Ordering
Merchandise is ordered from vendor
Merchandise Reorder Report
The Merchandise Reorder Report is received and
typed into the database
Enter Purchase Order Data
Purchase Order data are entered into the system.
Process Quantity ordered is entered into the
inventory records which would increase the
on-order inventory
Insert Quantity Ordered into Inventory Records
Data are stored in the Purchase Order file (PO is
a note until Receiving Dept receive it), Purchase
Transaction file, and Merchandise Inventory
Master file for record keeping
Purchase Transaction File
Merchandise Inventory Master File
Open Purchase Order
Print Reports
Print Daily
Reports are printed daily
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From Receipts Procedure
Receipts are collected from merchandise purchased
from vendor
Receiving Report
Receiving Report is received from the receiving
department
Enter Receipts Data
Receipts data are entered electronically (Media)
Add Quantities Received to On-hand Balances
Process Quantities received are added to on-hand
inventory balances
Data are stored on the Purchase Order file (PO
will close once all merchandise are received),
Merchandise Inventory Master file (Inventory will
increase), and Receipts Transaction file for
record keeping
Open Purchase Order
Receipts Transaction File
Merchandise Inventory Master File
Print Reports
Print Daily
Reports are printed daily
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From Sales Procedure
Sales made to customers
Shipping Report
Shipping report is received from the actual sales
order
Enter Shipping Data
Shipping data are entered into the system
Deduct Quantities Shipped from On-hand Balances
Process Quantities shipped are deducted from the
on-hand inventory balances
Data are stored on the Merchandise Inventory
Master file for record keeping (Inventory will
decrease once the merchandise is shipped to
customers)
Merchandise Inventory Master File
Print Reports
Print Daily
Reports are printed daily
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From Return Procedure
Merchandise are returned from customers
Shipping report and Purchase memo are retrieved
from previous transaction. Purchase memo will
reflect the number of merchandises returned.
Shipping Report
Purchase Memo
Enter Return Data
Returned data are entered into the system
Process Quantities returned are added to the
on-hand inventory balances, thus adjusting the
overall inventory balance
Change On-Hand Balances to Reflect Adjusted
Quantities
Data are stored on the Merchandise Inventory
Master file for record keeping (Inventory
increases once the merchandise is returned)
Merchandise Inventory Master File
Reports are printed daily
Print Reports
Print Daily
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Print Reports
Print Daily
Open Overdue Purchase Orders Report
Open Purchase Orders report show any orders that
have not been received or shipped from
vendors. Overdue Purchase Order report will
follow up any past due merchandises that have not
been received from the vendors
Purchase Order
To Purchasing Manager
The two reports will be sent to the Purchasing
Manager for review
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Print Reports
Print Daily
The Expected Stock-out report predict when the
merchandise in the inventory will run out.
(Planning Tool)
Inventory Status report will reflect the current
on-hand inventory balances
Inventory Status Report
Expected Stock-Out Report
Inventory Usage Report
Merchandise Reorder Report
Inventory Usage report will reflect the
merchandises that are shipped to customers
Merchandise reorder report will contain the items
that will need to be reordered
To Inventory Management
These four reports are sent to the Inventory
Management for review
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Print Reports
Print Daily
Summary of Merchandise Receipts
Summary of Merchandise receipts will show the
merchandises that are received from vendors

Summary of Merchandise receipts are sent to the
Receiving Manager for review
To Receiving Manager
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Possible Controls

• Data Input Controls
• Data that are entered electronically into the
  computer should be checked for accuracy and
  completeness of data.
• Data Loss and File Reconstruction Capability
• It is necessary to maintain backup or duplicate
  copies of current databases (data files, programs
  and documentations) and stored at other remote
  locations for security purposes.

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Possible Controls (Continued)

• Resource Theft and Loss Control Inventory
• Merchandise stored in the on-hand inventory
  should be kept locked in the storeroom or
  warehouses with access limited to authorized
  employees and checked frequently to
  minimize/avoid any possible theft.
• Economic Decrement Reversal Controls
• Sales returns from customers can be controlled
  with an integrated enterprise information system.
  Only an authorized employee with the proper
  password and access code are able to authorize a
  sale return event.
• Merchandise sold to clients should be double
  checked for errors with the shipping report
  before shipping the merchandise out. Merchandise
  received from vendors should be reconciled with
  receipts to match the merchandise ordered and
  purchased.