OPTION (12) Modifications to Baseline - Moderate                               GRAPHIC EXAMPLE

(MMI-N-00) NEGATIVE INVENTORY TRACKING AND REPORTS

    This memorandum describes the overall value of the Negative Inventory Analysis Module, in terms of improving Inventory Accuracy, and determining the causes of Negative Inventory balances, to improve a company's procedures.

    As an added value to this Module, the following functions have been provided:

    A set of acronyms, which can be utilized in Stock Movement Entry, in lieu of entering specific General Ledger Account Numbers, to avoid entry errors.

    A user-defined sub-module of Report Codes, which can group a set of G/L account together for reporting, instead of having to enter a series of G/L numbers.

    This module has capabilities to allow users to trace the source of Negative Inventory balances, to aid in correcting procedural issues to prevent further errors. Included are modifications to the Inventory Update program to implant the STOCK Transaction number and date of a stock movement, which causes Inventory to go "negative", and clearing out of the information when the balance again is greater than or equal to zero.

    Negative balances can be examined for a single Inventory Code, or for ALL Inventory codes with a current balance. An improved Perpetual Inventory report is also included, as well as a more detailed Stock Transaction Inquiry, and MRP Inquiry.
Reports display the Stock Transaction Number, Date, and Operator Initials for the Stock movement which caused the individual Inventory to go "negative". The Advanced Perpetual Inventory Report details transactions occurring before and after the Inventory went "negative", just as a bank statement shows financial activity. Before/after balances are visible, to insure a proper transactional audit trail.

    The long-term solution to negative balances is continuous Cycle Counting, and determining causes of errors.