Projects > ERP For Heavy Engineering Company > Store
Store Module of ERP
Introduction
Store is a major part of any manufacturing organisation. Store deals with all the items or products required by the organisation, provides all departments with their necessary item requirements, keeps a ready count of the quantity of different items and deals with the suppliers in an endeavour to procure new stock.
Thus store is the lungs of any organization, always fulfilling the requirements of other departments. As a result, if the activities of this department are smoothened, other departments can function with a greater output.
Overview of the Store Department;
The operation of Store module starts with material requisitions. Requisitions may come from any department. If all departments in the organisation have computer facility then this task can be digitised. Each requisition in that case would have the digital ID of the person passing the request to store. On receipt of requisition store will check their material stock from the system and pass an Issue Slip. As Issue Slip is made the stock of item will get reduced from store and the sub-store of that particular department receives the material. Thus its stock goes up. Finally the sub-store will issue the material to the sub-cost center within the department. This is how the final consumption of the material can be tracked. If the material is not consumed fully the corresponding department may send it back to store, so that the sub-store stock will go down and the store item stock will go up.
The second part is regarding material procurement. On receipt of requisition if the store finds that the material is not adequate in stock then it can issue an Indent to the purchase department for procurement process. On finalisation of purchase order, which is discussed in the previous chapter, the material arrives in the factory gate. It is expected that the material should accompany a challan and the purchase order number is specified on it. The gate will feed the PO detail in its computer and confirms its receipt. In this process the gate will generate a number and that number should be written on the challan. When the material comes to store on referring the number store will automatically generate the Material Receipt Note. At this point store should check the PO number fed by gate at the time of receipt. On confirmation regarding the quality of material by the respective department store will generate the Goods Receipt Note and the liability will be created in the respective supplier ledger. We have also found that some materials are purchased directly by cash and no purchase order is generated in those cases. It is better to stop that practice, otherwise if the management decides to continue that process we propose that those materials will also be entered in the gate by mentioning that they are Cash Purchase. Later a list of all those purchase can be generated. All figures will be protected under password. Only authorised person will be eligible to access information from this module.
