Lesson 12: Material Management System Flashcards
could be used as a first step in the process of purchasing. This is used internally to identify a need for an item
purchase request
a document which is made by a user to notify the purchasing department regarding needed items and services
purchase request
This document specifies quantities, as well as a timeframe for the items requested. It could also contain the authorization information needed to proceed with the purchase.
purchase request
allows one to track the vendor quotations for items
purchase quotation
could also be created from sales orders by using the procurement confirmation wizard
quotation
one of the biggest expenses for most medical institutions
inventory
plays an important part in refining the quality of healthcare services, since the lives of the people are on the line, as well as because medical costs are increasing
Inventory control
used for maintenance of the attributes of an inventory item, such as product type, item class, item type, etc. If the balance and order activity is zero (0), items can be deleted using this option
Item Tab
the minimum quantity of an item that a company has in stock, so when the stock reaches the minimum quantity stated, the item must then be re-ordered (Purchase Order/Production Order)
Re-order Level
A basic re-ordering method implemented in many ERPs and other inventory management software is the??
Min/Max inventory ordering method
The ——– value is representative of a stock level that prompts a re-order
min
the ——- value is representative of a new targeted stock level that follows the re-order
max
the starting point of a sale or purchase process
Enquiries
leads to getting information from a vendor/supplier for the requirement at hand
Enquiries
leads to establishing a connection with the right vendor/supplier in order to get a quotation, place an order, and receive the requirements
Enquiries
consist of various pieces of vital information of a requirement towards a sale/purchase
Quotations
state important information such as price, delivery times, delivery details, payment terms, taxation, etc.
Quotations
a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services
an order
From a buyer’s point of view it expresses the intention to buy and is called a ——-
purchase order
From a seller’s point of view it expresses the intention to sell and is referred to as a —–
sales order
a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer
invoice or bill
indicates the sale transaction only
invoice
is a document for requesting prices and delivery information from a vendor before the purchase order
purchase quotation
a document that notifies the purchasing department that certain items or services need to be replenished
Purchase Request or Purchase Requisition
The document stipulates a timeframe and required quantities for the items requested. In certain instances, it also contains authorization to acquire assets
Purchase Request or Purchase Requisition
a document which records a business transaction between the buyer and the seller
Purchase Order
name, address, and contact info of party giving money for goods
Buyer
name, address, and contact info of party receiving money for goods
Seller
a unique ID number to track each business transaction
Order Number
details, quantity of goods, cost per unit, and total price of goods
Item Description
where the goods will be shipped
Shipping Address
when the goods will be delivered to the final location
Shipping Date
location of where the invoice should be sent so the Buyer can pay
Billing Address
signature of Buyer offering to buy and signature of Seller accepting
Signature
when the business transaction occurred
Order Date
The person who creates the document, either a purchase request or order
the originator
Inventory items are sold in the order they are purchased. This is the most common technique.
First In, First Out (FIFO)
Last to enter the system are sold first. This is common among non-perishable items like petroleum, minerals, and metals.
Last In, First Out (LIFO)
Materials are sold based on date they should be consumed, regardless of when it was purchased.
First Expired, First Out (FEFO)
This system can be used to manage functions like purchasing, accounting, inventory management, and patient supply charges
Materials Management Information Systems
Tracks the receipt and uses it for inventory, and calculates the quantity on hand.
Perpetual inventory
An alternative to physical inventory, may be less disruptive
Cycle counting
These are supplementary technologies that can be used in combination with the material management system in order to have more accurate and less burdensome inventory counts
Barcode and RFID
A process where a business physically counts its entire inventory
Inventory count
may be mandated by financial accounting rules or the tax regulations to place an accurate value on the inventory, or the business may need to count inventory so component parts or raw materials can be restocked
Physical inventory
What are the material management system issues?
Item indents and re-order level
It takes physical possession and legal ownership of the shipment
Receiving Department
An internal request is immediately sent to the first approval stage when the approval process is launched.
Message/ Alert Overview
Form specifies inventory levels across all warehouses
Item availability
the person receiving the product should sign the receiving documents provided by the supplier or shipping company. The person receiving the delivery should inspect the items before signing the receipt and should also initial the packing list. Then, he or she must submit the packing list to the appropriate person (Accounts Payable, Requester, Asset Management) for financial reconciliation.
Signing for delivery
departments should refuse to accept shipments if they are unable to confirm that the order was placed by their department, or if the packing appears sufficiently damaged to warrant concern.
Refusing delivery
it is important for the supplier to provide the department with a packing list for all shipments delivered to the department.
Record retention
Departments should contact the appropriate Purchasing Agent whenever a purchase is received as a partial delivery without acknowledgement or notification from the supplier. This information is typically noted on the packing list.
Partial deliveries
Goods can be easily tracked /traced when they are managed by serial or batch. Aging of products can occur if the items are slow moving/stay longer in the warehouse.
Tracking of Goods
Persons receiving shipments should, upon acknowledging receipt of an order
Inspecting a shipment
