STOCKS - Stock Accounts Maintenance
What is STOCKS
This procedure handles the movement of bulk product from/to STOCK units with their respective accounting postings between WIP accounts. Movements between different storage units, sales to TRADE and WIP accounts, intakes from PHYSICALS and other forms of transfer are all handled through STOCKS with the INVENTORY management being kept fully in-line with the accounting. There is a facility to create carried forward documents of money and tonnage from balances as at an Open Period. This feature will create TA (temporary adjustments) documents for automatic posting. The resulting balances as at close of that period will allow for the partial archive of the WIP/Stock account during it's MEP/MEPACT
Scenarios that are handled: -
Intake of Raw Sugar Cane into Warehouse with currency translations handled in the WIP accounting. The Stock unit is increased by the delivered tonnage and the in-turn value converted to local (Stock unit) currency,
Any erroneous stock movement can be fully reversed at any time,
Stock adjustments can be made at any time, negative and positive Weight and Value adjustments can be fulfilled.
Movements apply to situations where a tonnage & value are moved from one stock unit to another Stock unit, which can result in the mixing of different products/grades,
Processing can be applied in situations where Raw sugar is subject of a melt to become a refined product and varied by-products. The in-turn weight is subject to weight loss or maybe gain but the stock value remains the same except now distributed to different Stock units. Processing costs can be added at the time of recording the process or left outside the scope of Stock costs.
Delivery Creation (Stock to transit) applies more to Retail situations where a temporary storage is needed either for the fulfillment of creating a special delivery blend and/or segregating the loaded weights from the main stock units. Which ever source of delivery is used, sales invoicing will complete the removal of Stock weights from the stock recording system.
The processes available in STOCKS :-
1) Intakes from TRADE: This process is to assign an unallocated/undelivered tonnage from an existing TRADE purchase contract and update the relevant stock unit(s) with the out-turn. A simple scenario is an incoming RAW Sugar consignment being landed into a dockside warehouse, ready for refining or re-delivery. The 'stock value' is calculated in the local warehouse currency applying exchange rates and including ancillary costs-to-stock. The accounting is to post the accrual between the stock unit and the purchase/charter WIP account. See Note1 for information on alternate intake procedures, with pictures on pdf.
2) Other intakes: This feature can be used for handling intakes from an accrual account; an useful scenario is collecting sugar cane into a factory unit from the farmers that deliver their truck loads to the gate. The farmers do not need to be identified and there may be no contract, so the intake values are in a suspense account until payment is completed. All facets of this operation can be handled in ITAS e.g. production of weigh-bridge dockets.
3) Stock to stock movements: These transactions can be used for moving between different storage units with gain/losses in weight/value. The same scenario can be moving bulk product from site 1 to site 2. The Refinery Melt process is a part of S2S procedures.
4) Movements into transit: This is used to remove stock from the main stock units and place the goods in a temporary stock (accounting) unit to await delivery details. Removing transit stock tonnage is usually achieved by sale tonnage being allocated/expedited to the transit unit. A transit unit can be used where a charter has off loaded some/all of its tonnage and it is reloaded onto smaller vessels for transhipment, using 'Movements from transit' When the delivery-out has been completed, the result in the transit tank is the spillage result.
5) Movement into transit by creating a purchase TRADE record for the stock to be subsequently allocated to a sale/charter. This process will remove the Inventory stocks from main into transit stock unit whilst creating an assigned TRADE purchase
6) Movements from transit: If some tonnage from a charter has previously been moved into a transit unit, this process is used to move all of that transit stock onto another charter. This feature can move transit assigned TRADE purchases to other WIP/Charters.
7) Processing: These are stock adjustments that needed to be administrated e.g. melt sugar to become refined white. This feature handles all the weight loss, additional costs aspects of a simple manufacturing process. You can enter a Weight Loss % and an EXP and GL (NOM) account to post an accounting entry reflecting the tonnage that was lost in the process.
8) Pre-Mix to Stock; movements from any number of Stock units into a single stock unit i.e. Manufacture-to-Stock. This feature is different to Movements to Transit which is the process for Manufacture-to-Order.
9) Adjustments, primarily used to maintain the true stock levels according to physical measurement.
10) Tank Clean, used to remove any residual stock and value from a stock unit.
11) Reversals, any previous stock movement can be reversed by specifying it's accounting reference
12) Stock (month) balance transfer, this allows for temporary adjustment of the accounting/tonnage balances from an open period to the next open period. This is useful for efficient housekeeping where the number of transactions is extensive. the WIP account can be marked to request partial archive in MEPACT.
13) Parcel Identity table. This is the list of trace references with a free form narrative. The trace references are created by STOCKS/WIP processes and are used to report the origin of goods through the STOCKS processes i.e. provide stock traceability.
14) End of shift. This process will associate all outstanding intake tonnages with the STOCK process being administrated e.g. crushing of cane in a continuous operation where the individual identity of incoming goods is lost except for a time based record administration. 15) Manual maintenance of unprocessed weighbridge intake records.
See Technical for glossary of Sugar/Molasses terminology. Note1: By application of S01 company configuration, additional/alternate intake and stock-to-stock processes can be activated
ITP is the standard intake from Purchase trade into a Stock unit, enabling trade costs to be included in stock transfer and any currency/fx translation.
The user needs to select Terminal for Stock Unit, select a purchase for the intake and the target Stock Unit.
Accounting documents for the transfer of value from WIP/Charter to Stock Unit are created (ITs) and the Stock target is updated with summary cost and tonnage values
GTP is similar to ITP except the user selects a number of individual Purchases for each to be processed one-by-one in ITP.
This provides a simpler method for administrating a number of intakes e.g. monthly process.
RTP is the same process as ITP except the user filters for previously ITP’d purchases that may need to be re-intaken to Stock.
The user is shown a grid of previous ITP’s and decides/ticks which ones are to be refreshed into their original Stock entity.
Each selected entry is then processed as an ITP i.e. reverse the original accounting documents and post the new values.