Purchasing and stock

Layers

Layers build on each other and each one works on its own: turn on the next layer when you want it, turn it off when you don't. Turning off deletes no data.

1. Base

   “Let me keep my list in order.”

   Stock items, warehouses and stock movements

   • Stock cost is a moving weighted average across the business: a receipt re-averages it, an issue or a transfer leaves it unchanged
   • A movement that would take a warehouse below zero is refused; movements are never edited or deleted, a counter-movement corrects them
   • A reorder level per stock card flags it once the quantity on hand falls to that level or below

2. Tracking

   “Let me not miss what happens when.”

   Transfers between warehouses, stock per warehouse

   • Move goods between warehouses in one step; both halves of the transfer are linked and the cost does not change
   • Each stock card shows how much sits in each warehouse

3. Process

   “Let the work follow a rule.”

   Purchase orders and goods receipt; subcontractor service orders and progress acceptance

   • Purchase orders move from draft to ordered, partly received and received; a line never receives more than was ordered
   • Goods received go into the chosen warehouse at the order price, converted to the base currency at that day's rate
   • Subcontractor orders with an hour ceiling and rate per person; each month's approved hours become an acceptance and a draft supplier invoice

4. Control

   “Let me manage it and account for it.”

   Stock value and product margin

   • Stock value on any past day, per card and warehouse, at the average cost as it stood then
   • Gross margin per product for a period: invoiced revenue net of discount against what the goods cost when they left stock