Purchasing and inventory

Use approved material products and units for fabric, components, trims and packaging. Incoming lots and applicable inspection evidence remain attached to the accepted receipt. Style labels help locate demand, but quantity reservation and cost remain on the actual product and source stock.

Products identify their purchasing and manufacturing units, costing method, make-or-buy policy, lead time and lot or serial requirements. Warehouses belong to an entity and distinguish normal stores, WIP, finished goods, quarantine, returns and in-transit custody.

On-hand quantity comes from posted physical movements. Available quantity also considers quality status, expiry, holds and active reservations. A quarantined lot cannot become saleable simply because on-hand exceeds the allocated total.

Reservations identify the exact inventory position and sales-order or work-order demand. Reserve, consume and release act together with current stock checks. An issue or shipment consumes its claim rather than leaving the same quantity both allocated and already gone. Units and serial quantities are validated before posting.

Requisitions hold the requesting person, cost centre, required date and product or description-only lines. An assigned cost-centre manager acting through Employee authority, an eligible Buyer or Controller reviews the request within the applicable scope and limit, independently of the requester.

Buyer converts approved scope into a supplier order with negotiated price, currency, delivery and coding. Every PO has an independent approver, including orders within a Buyer’s limit. The creating Buyer cannot approve or receive their own order. Another eligible Buyer or Controller records the decision against the complete submitted version.

A changed quantity, price, currency, bank instruction or material coding needs the appropriate revised review. An order is sent through the agreed manual or configured channel after authorization; a local document state is not proof that the supplier received it.

Warehouse Operator records stock arrivals within their warehouse and receiving authority. Pending or rejected goods remain visible in custody, separately from owned, available inventory and its accrual. Quality Inspector accepts or rejects the inspected portions. Partial acceptance leaves the remaining quantity unresolved.

Accepted owned stock posts inventory and GRNI at captured cost. Seller-as-principal drop-ship delivery uses verified title-transfer and customer-delivery events through designated in-transit ownership, with required quality evidence and no fabricated warehouse receipt. Service acceptance supports billing without stock. Cumulative matching cannot reuse goods, direct-delivery or service evidence beyond its remaining scope.

A physical event and its applicable accounting effect share a durable identity. Repeating a message cannot create another receipt, issue or journal. Posted movements retain their source and original cost; corrections follow linked reversals rather than edits to the balance.

A vendor return is bounded by the original receipt or direct-delivery event and prior returns. Never-accepted rejected goods leave custody without reversing inventory or an accrual that never posted. Previously accepted goods follow the authorized original-cost reversal and any necessary bill or credit reconciliation.

A vendor credit is required where the financial obligation needs it, rather than for every unaccepted delivery sent back. Physical return, credit approval and settlement have distinct evidence.

Customer returns retain shipment lineage, authorized quantity and actual received custody. Quality Inspector determines restock, repair, scrap or other eligible disposition. Returned goods remain unavailable until that decision, and a credit alone does not prove the inventory is back.

Warehouse Operator picks and packs against approved sales demand and active reservations. Actual dispatch records the customer, order line, lot or serial and cost basis. Partial shipments consume only their own quantities; carrier-label preparation does not ship them.

Counts capture their inventory scope, snapshot and movement lock before comparison. Reviewed variances use current identities and values; stale counts require reconciliation or recount. Controller independently reviews escalated adjustments. Policy permits limited warehouse self-confirmation only for known uncommitted stock and cost; status edits cannot manufacture approval.

Inventory Availability, Pending PO Approvals and Incoming Inspection Queue show the work needing attention. Stock valuation, receipt accrual and billed scope reconcile through their original records, including the controlled opening baseline at cutover.