Inventory control

Tiny ERP introduces a new concept for the inventory control. Just like accounting, the inventory control is in double entry; there are not appearance/disappearance of batches but only movings of a storage section to another. Stock available for a given zone being equal to the sum of the less entering movements the sum of the tunring out movements.

The following figure illustrates a complete supplier transaction to the customer with a phase of production.

In that example, only the storage sections on a gray backgroung belong to the company. The 'Default Production' zone doesn't correspond to a physical stock but is used for the other side of theproduction transactions (raw material consumption and production of finished product).

The following stages are represented in the above graph;

1. Raw material reception coming from a non-European supplier.
2. Displacement of this raw material of the quality control to the stock of level 1.
3. Consumption of the raw materials 1 (MP1) and 2 (MP2) for a production.
4. Production of the finished product (PF1).
5. Delivery of the product finished to the customer.

By supposing that all the storage sections were empty before these transactions, the contents of the zones after these transactions are;

Non-European suppliers: -1 MP2.
Stock Level 1:-1 MP1 (*).
Default Production: +1 MP1, +1 MP2, -1 PF1.
Customers: +1 PF1.

(*) What is theoretically not possible bus as stock Level 1 corresponds to a physical stock, it cannot be negative. In practice, you can arrive in this situation type if you forget to encode a reception of goods. Tiny ERP is flexible enough that not to be blocking in this kind of situation.

This system of inventory control of double entry allows a very great number of situations which aren't hard to manage by the traditional inventory control programs.

That gives to the system a great simplicity because all the operations relating to the stock of the company are brought back to only one form of inventory turnover; production, inventory, return to the workshop, reception of goods, quality control. That considerably simplifies the training of the software by the users.

In addition to this simplicity, this representation allows a better visibility on the company actions because all the stock operation can be made on real stocks but also on the potential zones; valorization of a production stock, analyzes section supplier storage, ...

It is also a very great advantage for the traceability because this one goes from the supplier to the customer, whereas the traditional control programs are limited to the warehouse view. It's very interesting in the case of the after-sales service and return to the workshop for defectiveness.

Generally, in all systems of stock management, there are errors between reality and what was really encoded in the program. It is thus frequent to have to seek errors when you note differences (forgetting encoding of delivery of goods, productions more important than planed,…). Just like in accounting double entry, it's quite simple to find errors. In Tiny ERP you will be able to find a stock error in a warehouse thanks to the others side of each transaction. If it misses articles in a warehouse, that has necessarily come from a zone of supply supplier, of an production account, ...

Moreover, the Tiny ERP inventory control has a tree architecture. You can thus deliver batches in a given warehouse, or deliver batches in the cupboard 3 which is on level 2 of the warehouse. In the same way, the suppliers and customers zones can be structured according to their geographical location, according to their volume of purchase/sale, ...

If there are several suppliers or customers zones, Tiny ERP uses the preferencies of the partner feature to know which section storage to use according to the customer.