Supply Chain Management

Typically this may start with importing merchandise.

Importing
The steps that are performed are-:

• A supplier Purchase Order is entered in the foreign currency for the products at the quoted prices. No further charges are added.
• Posting the supplier Purchase Order credits the supplier in the foreign currency and debits the inventory items in the local currency in the inventory ledger. This is posted to the memorandum ledger. The rate of exchange may be an estimate or forward exchange contract.
• A Goods Received Vouched (GRV) is auto-captured and is available in the Control Panel awaiting the arrival of the merchandise.
• The shipment is costed, accounting for shipping charges, customs duty as well as trade finance costs, such as confirming fees.

• The trade finance bank's payment to the overseas supplier is processed in the local currency with the debit to the overseas supplier in the foreign currency. The rate charged by the trade finance company is entered.
• The system automatically calculates the percentage cost and extends the total cost for each item by adding the computed value to each item.
• The GRV is completed by reducing the total amount by the amount to be allocated that is credited to a general ledger clearing account. This transaction clears the overseas supplier's account in the accounts payable ledger.
• The freight companies invoice is posted via a regular Supplier Invoice, with all charges debited to the general ledger clearing account in the previous step.
• The trade finance invoice is also posted using a regular Supplier Invoice with the finance costs debited to the general ledger clearing account as well as to the debit of the freight company, clearing the amount owed to the freight company.

The entire process is completed in the Control Panel with the foreign currency creditor posted in the foreign currency. The local trade finance, freight company and inventory ledger processed in the local currency. All the transactions are in mixed currencies as per each account.

Supply chain management
The merchandise has been recorded as per the above import or local purchases and the sales order process takes place as follows-:

• Customer Sales Orders are entered into the system. An expected delivery/shipping date is entered taking into account the lead time for delivery. Posting the Sales Order updates the customer and inventory in the memorandum ledger. A picking slip is auto-captured awaiting the scheduled delivery.
• The Picking Slip is recalled in the Control Panel. The system checks the availability of the inventory items on-hand having regard to reservations, automatically adjusting the quantities to the available inventory.
• The inventory items are picked. Any further changes can be noted on the Picking slip and amended before posting. The Picking Slip is posted and auto-posts a transaction that contras the Customer Sales Order and also auto-captured a Customer Tax Invoice.
• In the case of a partial delivery, a further Picking Slip is generated with the outstanding items.
• Posting the Customer Tax Invoice auto-posts a contra entry that will show the Picking Slip as complete.
• The Control Panel has a listview transaction explorer that has all the outstanding Picking Slips. The transaction explorer has editing facilities to maintain the delivery date and re-schedule if required.

This entire process is managed within the system. There are rules governing the permission of negative inventory and operates effectively in a high volume environment.

Accounts Receivable

Dealing with major groups often has special requirements.

• Deliveries are often charged to a central account but delivered to branches.
• Special statements often require the name of the branch as well as the Goods Received Number (GRV No.) or AOD (Acknowledgment Of Delivery Number) plus prices and agreed discount.
• Many of the suppliers have cut-off dates that effectively change the due date for payment. The system takes into account the date of delivery as well as the supplier's cut-off date.
• Cash flow forecasting and credit control take place from a special age analysis that ages the invoices based on the POD date, the customer's terms, and their cut-off date. Ignoring week-end is an option in calculating the exact payment date.
• There are numerous reports on POD's and sales orders, outstanding delivery Picking Slips to help manage the entire process.