MATERIAL MANAGEMENT SYSTEM (CHAPTER 12; PREFINALS) Flashcards
MMIS
MATERIAL MANAGEMENT INFORMATION SYSTEM
used to manage functions like purchasing, accounting, inventory management, and patient supply charges
MATERIAL MANAGEMENT INFORMATION SYSTEM
-first step in the process of purchasing
-used to identify a need for an item
-a document made by a user to notify the purchasing department regarding needed items and services
PURCHASE REQUEST
allows one to track the vendor quotations for items
PURCHASE QUOTATION DOCUMENT
one of the biggest expenses for most medical institutions
INVENTORY
plays an important part in refining the quality of healthcare services
INVENTORY CONTROL
4 strategies to improve inventory control
- MAKING SURE SHIPPERS ARE ACCURATE
- ALIGNMENT WITH SALES PROJECTIONS
- COMPLIANCE WITH REGULATIONS
- ESTABLISHING BUYING CYCLES
used for maintenance of the attributes of an inventory item
ITEM TAB
specifies inventory levels across all warehouses
ITEM AVAILABILITY
RE-ORDER LEVEL
minimum quantity of an item that a company has in stock
MIN/MAX
basic re-ordering method implemented in many ERPs
MIN value
representative of a stock level that prompts a re-order
MAX value
representative of a new targeted stock level that follows the re-order
main difference of Min and Max
ECONOMIC ORDER QUANTITY (EOQ)
starting point of a sale or purchase process; lead to establishing a connection with the right vendor/supplier
ENQUIRIES
consist of various pieces of vital information of a requirement towards a sale/purchase; state important information such as price, delivery items, delivery details, payment terms, taxation
QUOTATIONS
stated intention, either spoken or written
ORDER
intention to buy
PURCHASE ORDER
intention to sell
SALES ORDER
also called “bill”
INVOICE
a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices; indicates sale transaction only
INVOICES/BILL
need to be created in order to enable a quotation, order, invoice, tax forms
DOCUMENTS
document for requesting prices and delivery information from a vendor before the purchase order
PURCHASE QUOTATIONS
qualities of a preferred vendor
1) ON-TIME PERFORMANCE
2) RESONABLE COSTS
3) HIGH QUALITY OF PRODUCTS AND SERVICES
4) FULLY LICENSED, BONDED, AND INSURED
5) GOOD BUSINESS PRACTICES
also known as Purchase Request
PURCHASE REQUISITION
document that notifies the purchasing department that certain items or services need to be replenished
PURCHASE REQUEST/PURCHASE REQUISITION
document which records a business transaction between the buyer and the seller
PURCHASE ORDER
basic elements in a simple purchase order
1) BUYER
2) SELLER
3) ORDER NUMBER
4) ITEM DESCRIPTION
5) SHIPPING ADDRESS
6) SHIPPING DATE
7) BILLING ADDRESS
8) SIGNATURE
9) ORDER DATE
the person who creates the document, either a purchase request request or order
ORIGINATOR
where the initial request is immediately sent when the approval process is launched
MESSAGES/ALERTS OVERVIEW
policies for the receipt and inspection of goods
1) SIGNING FOR DELIVERIES
2) REFUSING DELIVERY
3) RECORD RETENTION
4)INSPECTING A SHIPMENT
5) PARTIAL DELIVERIES
6) TRACKING OF GOODS
the person receiving the product should sign the receiving documents provided by the supplier or shipping company
SIGNING FOR DELIVERIES
departments should refuse to accept shipments if they are unable to confirm that the order was placed by their department
REFUSING DELIVERY
takes physical possession and legal ownership of the shipment
RECEIVING DEPARTMENT
should be contacted by the departments whenever a purchase is received as a partial delivery without acknowledgement or notification from the supplier
PURCHASING AGENT
when managed by this, goods can be easily tracked/traced
SERIAL/BATCH
temporary movement
RETURNABLE GATE PASS
permanent movement
NON-RETURNABLE GATE PASS
expired food and medicine may be sold to other parties at a lower cost
EXPIRED STOCK/INVENTORY
when undecided about how to handle defective goods, whether to be sold as scrap, reworked, returned, or used as it is, a quarantine location or warehouse can be used to temporarily house until final decision
QUARANTINE STOCK/INVENTORY
percent of hospital charges that are actually attributable to diagnostics, drugs, and consumables
30 TO 50%
percent for doctors
10 TO 20%
inventory items are sold in the order they are purchased; most common technique
FIRST IN, FIRST OUT (FIFO)
last to enter the system are sold first; most common among non-perishable items
LAST IN, FIRST OUT (LIFO)
materials are sold based on the date they should be consumed, regardless of when it was purchased
FIRST EXPIRED, FIRST OUT (FEFO)
taxes that can be usually processed while posting documents
1) TAX ON SALES AND PURCHASES
2) ADDITIONAL TAXES LIKE VAT
3) SALES AND USE TAX (USA)
4) WITHHOLDING TAX (INCOME TAX IN INDIA)
process where a business physically counts its entire inventory
INVENTORY COUNT
