Bryan Dow
Charmaine Ramos
System flowchart of an on-line computer-based inventory management system. Retail Store (pg 2)
Purchasing: Merchandise reorder report is created in the purchasing department. This report contains data about the merchandise that was ordered. The data, including quantity, from the reorder report is keyed into the system. The merchandise data is recorded in the open purchase order file (file that shows the purchase orders that haven’t been filled). The system automatically updates the merchandise inventory master file to show that the needed item has been ordered. The purchases transaction file is also accessed and updated once the data is keyed in to show a record of the purchase transaction detail.
Receiving: When the items that were ordered are received, the receiving department sends a copy of the receiving report showing evidence that the items ordered were received. The merchandise received is keyed into the system from the receiving report. The system updates the open purchase order file, which tells the system that the purchase order has been filled. The merchandise inventory master file is also updated illustrating the increase in the inventory. The record of the receipt is then recorded in the receipts transaction file.
Sales procedure: The shipping report originates in the shipping department showing evidence of the sale and shipment of goods. After the warehouse staff picks the merchandise, it is transported to the shipping department. They will create a shipping report showing the items being shipped to the customer. From the shipping report the data is keyed into the system. Since this is online processing, shipped goods will be deducted from the on-hand balance in inventory once entered into the system. This procedure updates the merchandise inventory master file showing a decrease in the goods on hand.
Return procedure. A credit memo is issued to reflect a return of merchandise from the customer. A purchase (or debit) memo is a document showing items that we are returning to our vendors. This data is keyed into the system and automatically updates the merchandise inventory master file showing an increase for the items returned from customer or a decrease for items returned to vendor.
At the end of every day, various reports are printed and distributed. A list of all the open and outstanding purchase orders along with a copy of the purchase order will be printed and distributed to the purchasing manager. An inventory status report showing current inventory levels will be printed along with the inventory usage report and distributed to inventory management. Inventory management will also receive a copy of the expected stock-out report and the merchandise reorder report. The receiving manager will receive a copy of the summary of merchandise receipts.