Process Group/Policy Details
Subject: Inventory
Process Group: Inventory Issuance
Title of Policy: Inventory Issuance
Effective Date: 07/01/2014
Approved/Revision Date: 07/01/2014
Approved by: State Controller
In This Policy
Process Group Description
The process group Inventory Issuance, establishes the policies and procedures for the issuance and Transfer of warehouse stock items from State of Colorado managed warehouses, tracked via the CORE Inventory module.
Rationale or background to policy:
This policy standardizes how stock items issued and/or transferred between two distinct warehouses. When two distinct warehouses carry the same stock item(s) where one warehouse has a surplus of a commodity while another is in demand, the two warehouses can transfer the stock items between themselves. The transfer encompasses the physical movement and delivery of a given commodity, as well as the digital tracking in the Advantage system.
Policy Statement:
INV.PO.04
Departments that have warehouses shall utilize the Stock Transfer Issue (TI) transaction to initiate a transfer of a commodity or stock items from one warehouse to another. Moreover, the issuing warehouse, and not the warehouse receiving the delivery shall enter a Stock Transfer transaction.
Departments that have warehouses shall utilize the Stock Transfer Receipt transaction to reconcile delivery of the Stock Transfer Issue Transaction. The receiving warehouse and not the issuing warehouse shall enter the Stock Transfer Receipt transaction (TR) The “Received Date” must be entered along with the “Received quantity”, and “Received By” information.
Departments that have warehouses shall utilize the Stock Requisition Transaction (SRQ) for all inventory requests from a state managed warehouse. At the time of the implementation of CORE, only Colorado Correctional Industries (CCI) will be utilizing the SRQE as an alternative to the Over-the Counter (OC) transaction as CCI is the only identified department selling to outside customers. As batches against the SRQ are ran, departments shall be required that a Pick and Issue transaction. The Stock Issue Confirmation will be used to complete the cycle started with the SRQ. However, the SRQE will not need a Confirmation of Issuance for External Customers (CIE) as a “SRQE” report will take the place of this transaction. Purchases of partial commodities may be completed but at the discretion of the issuing department. Finally, departments will have the ability to issue more or less if a given commodity independently. However, it will be the department’s responsibility to set their own limitations of what is to be monitored.
Procedure Statement:
INV.PO.04.01: Purchasing Items from Inventory
Users request an item from a warehouse through CORE by issuing a Stock Requisition Transaction (SRQ). In the case for external customers, the warehouse is responsible for issuing a Stock Requisition for External Customers transaction (SRQE). When a SRQ transaction is submitted, a Pick and Issue transaction (PI) will be generated as a result and may be printed for physical retention. Inventory requested by the customer is then “picked” and delivered by the warehouse as requested on the SRQ/SRQE. Finally, the Confirmation of Issue transaction (CI) or Confirmation of Issue for External Customers (CIE) transaction is approved by the warehouse to record the issuance of those goods and post the charges to the appropriate unit as required.
In an emergency based case, an over-the-counter (OC) transaction is issued to record the issuance of goods for users who physically go to the warehouse to request commodities. This method requires the need to be urgent (an emergency request) and cannot be subject to the approval lead time associated with the SRQ, and have a real-time need.
For the Stock Requisition Transaction and Stock Requisition for External Customers the following sub-tabs have required fields which should be completed as appropriate:
Header: general information,
Accounting Distribution: Fund Accounting
Commodity: General Information ( a new line needs to be inserted)
Accounting: General Information, Fund accounting
*** Validate and Save
Procedure Statement: INV.PO.04.02 Stock Transfer Receipt
Departments that have warehouses shall use the Stock Transfer Receipt Transaction (TR) to track receipt from a Stock Transfer Issue transaction. On the TR transaction, both the issuing and receiving warehouse are inferred from the referenced TI, along with the stock Item Number, Stock Item suffix, Transfer Quantity, and issued Date. An error will occur upon submission if any of the adjustments to the quantities created a negative en amount in the inventory inquiry (INVNQ) table.
For more information related to the specifics on Stock Transfers, please reference Policy INV.PO.08 “Stock Transfer”
Procedure Statement: INV.PO.04.03 Pick and Issue Transaction
A Pick and Issue transaction (PI) can be generated from the batched jobs of the SRQ transaction which have been submitted. A physical PI can be printed and used for the actual picking of commodities within a warehouse. The Pick and Issue transaction is created from the requisitioning transaction. On the PI transaction, the following sub-tabs have required fields which should be completed as appropriate:
Header: General Information
*** Validate, save, and print and required
Procedure Statement: INV.PO.04.04 Stock Confirmation
The confirmation of Issue transaction should be issued after delivery has been confirmed of a requested commodity. The PI transaction should be copied forwarded to auto fill the CI Transaction. Validate and submit the CI Transaction once review, to complete workflow.
Procedure Statement: INV.PO.04.05 Stock Confirmation for External Customers
The Confirmation of Issue for external customers (CIE) is normally used to when the SRQE transaction needs are fulfilled. However, at the time of CORE implementation, there is only one warehouse (Colorado Correctional Industries - CCI) that will be using the SRQE. CCI not use the CIE transaction as this transaction does not allow for vendor information. Instead, a custom report will be utilized which will be referred to as the SRQE report. In that report, the vendor information will be tracked along with all other SRQE related activities.
Procedure Statement: INV.PO.04.06 Purchase of Partial commodities
Purchase and issue of partial units of measure for stock items within the inventory is allowed within CORE. Those department warehouses that do not wish to allow the practice may list the minimum order quantity on the Warehouse Set Up table (WHSE) to one (1) which will provide the result desired. Otherwise, Advantage warehouses may apply procedural restrictions internally within their agencies.
Procedure Statement: INV.PO.04.07 Ability to Issue less or more from Inventory than was requested
CORE permits departments to issue more or less from a warehouse's inventory than was requested on an SRQ or an SRQE. Similar to the ability to purchase partial commodities, departments will be able to set their own limitations in this matter as long as departments set a standard that is followed on a consistent basis.