SocrateCloud, through the "Material Management" functionality, allows you to follow stock movements made within an organization and to manage the associated documents.
The warehouse is the the central element of the material transactions process and represents the virtual place where the stock is "kept" (book-keeping).
A warehouse can be divided into multiple zones (locators) in order to simulate/reflect the structure/organization of the physical warehouse.
In a simple structure, products are received and delivered directly from a warehouse, with a single locator. The advantage of a simple structure is that you do not need to move the products from one locator to another, thus making them available as soon as the receipt is processed.
In a complex structure, a locator is created for receipts, one for stocks and another for shipments. This structure requires inventory moves to be operated. The advantage is that quality assurance and shipments can be done in a controlled environment, where products aren't available as soon as the receipt is processed.
The documents that represent stock movements:
Entries: Material Receipt, Internal Material Receipt, Physical Inventory;
Transfer: Inventory Move;
Exits: Internal Use Inventory, Shipment, Physical Inventory;
On Hand Quantity = product stock quantity calculated at a specific moment in time (by default at current date);
Quantity Reserved = total quantity on customer orders not yet delivered (excluding quantities on shipments not yet completed, which add up to "Qty in Progress");
Quantity Available = On Hand Qty - Quantity Reserved;
Ordered Quantity = total quantity on purchase orders not yet received;
Quantity in Progress = total quantities on documents that can influence stock(inventory transfer, shipments) and can generate confirmations, with the following document status: "draft", "in progress", "invalid", "blocked credit limit"
Quantity Free on Hand = On Hand Qty - Quantity Reserved - Qty in Progress
offers an indication for the stock quantity that can be used or delivered without affecting current transactions;
Note: In order to respect the warehouse discharge methods (FIFO, LIFO) primary documents must be processed in a strictly chronological order!