documentation/double-entry.rst

:classes: stripe

=================================
Double-Entry Inventory Management
=================================

A double-entry inventory has no stock input, output (disparition of products)
or transformation. Instead, all operations are stock moves between locations
(possibly virtual).

.. h:div:: force-right chart-of-locations

   .. placeholder

Operations
==========

Stock moves represent the transit of goods and materials between locations.

.. rst-class:: alternatives force-right

Manufacturing Order
  Consume:
    | 2 Wheels: Stock → Production
    | 1 Bike Frame: Stock → Production
  Produce:
    1 Bicycle: Production → Stock
  Configuration:
    | Stock: the location the Manufacturing Order is initiated from
    | Production: on the product form, field "Production Location"

Drop-shipping
  1 Bicycle: Supplier → Customer
Client Delivery
  Pick
    1 Bicycle: Stock → Packing Zone
  Pack
    1 Bicycle: Packing Zone → Output
  Shipping
    1 Bicycle: Output → Customer
Inter-Warehouse transfer
  Transfer:
    | 1 Bicycle: Warehouse 1 → Transit
    | 1 Bicycle: Transit → Warehouse 2
  Configuration:
    | Warehouse 2: the location the transfer is initiated from
    | Warehouse 1: on the transit route
Broken Product (scrapped)
  1 Bicycle: Warehouse → Scrap
Inventory
  Missing products in inventory
    1 Bicycle: Warehouse → Inventory Loss
  Extra products in inventory
    1 Bicycle: Inventory Loss → Warehouse
Reception
  | 1 Bicycle: Supplier → Input
  | 1 Bicycle: Input → Stock

Analysis
========

Inventory analysis can use products count or products value (= number of
products * product cost).

For each inventory location, multiple data points can be analysed:

.. raw:: html

   <ul class="highlighter-list" data-target=".analysis-table">
     <li data-highlight=".analysis-valuation">inventory valuation</li>
     <li data-highlight=".analysis-creation">
       value creation (difference between the value of manufactured products
       and the cost of raw materials used during manufacturing) (negative)
     </li>
     <li data-highlight=".analysis-lost">value of lost/stolen products</li>
     <li data-highlight=".analysis-scrapped">value of scrapped products</li>
     <li data-highlight=".analysis-delivered">value of products delivered to clients over a period</li>
     <li data-highlight=".analysis-transit">value of products in transit between locations</li>
   </ul>

.. h:div:: force-right analysis-table

 .. raw:: html

   <table class="table table-condensed highlighter-target">
     <thead>
       <tr>
         <th>Location</th> <th class="text-right">Value</th>
       </tr>
     </thead>
     <tbody>
       <tr class="analysis-valuation">
         <th>Physical Locations</th> <td class="text-right">$1,000</td>
       </tr>
       <tr>
         <th>&#8193;Warehouse 1</th> <td class="text-right">$600</td>
       </tr>
       <tr>
         <th>&#8193;Warehouse 2</th> <td class="text-right">$400</td>
       </tr>
       <tr>
         <th>Partner Locations</th> <td class="text-right">- $1,500</td>
       </tr>
       <tr class="analysis-delivered">
         <th>&#8193;Customers</th> <td class="text-right">$2,000</td>
       </tr>
       <tr>
         <th>&#8193;Suppliers</th> <td class="text-right">- $3,500</td>
       </tr>
       <tr>
         <th>Virtual Locations</th> <td class="text-right">$500</td>
       </tr>
       <tr class="analysis-transit">
         <th>&#8193;Transit Location</th> <td class="text-right">$600</td>
       </tr>
       <tr>
         <th>&#8193;Initial Inventory</th> <td class="text-right">$0</td>
       </tr>
       <tr class="analysis-lost">
         <th>&#8193;Inventory Loss</th> <td class="text-right">$350</td>
       </tr>
       <tr class="analysis-scrapped">
         <th>&#8193;Scraped</th> <td class="text-right">$550</td>
       </tr>
       <tr class="analysis-creation">
         <th>&#8193;Manufacturing</th> <td class="text-right">- $1,000</td>
       </tr>
     </tbody>
  </table>

Procurements & Procurement Rules
================================

A procurement is a request for a specific quantity of products to a specific
location. They can be created manually or automatically triggered by:

.. rst-class:: alternatives force-right

New sale orders
  Effect
    A procurement is created at the customer location for every product
    ordered by the customer (you have to deliver the customer)
  Configuration
    Procurement Location: on the customer, field “Customer Location” (property)
Minimum Stock Rules
  Effect
    A procurement is created at the rule's location.
  Configuration
    Procurement location: on the rule, field "Location"
Procurement rules
  Effect
    A new procurement is created on the rule's source location

*Procurement rules* describe how procurements on specific locations should be
fulfilled e.g.:

* where the product should come from (source location)
* whether the procurement is :abbr:`MTO (Made To Order)` or :abbr:`MTS (Made
  To Stock)`

.. h:div:: force-right

   .. todo:: needs schema thing from FP

Routes
======

Procurement rules are grouped in routes. Routes define paths the product must
follow. Routes may be applicable or not, depending on the products, sales
order lines, warehouse,...

To fulfill a procurement, the system will search for rules belonging to routes
that are defined in (by order of priority):

.. rst-class:: alternatives force-right

Warehouses
  Warehouse Route Example: Pick → Pack → Ship

  Picking List:
    Pick Zone → Pack Zone
  Pack List:
    Pack Zone → Gate A
  Delivery Order:
    Gate A → Customer

  Routes that describe how you organize your warehouse should be defined on the warehouse.
A Product
  Product Route Example: Quality Control

  Reception:
    Supplier → Input
  Confirmation:
    Input → Quality Control
  Storage:
    Quality Control → Stock

Product Category
  Product Category Route Example: cross-dock

  Reception:
    Supplier → Input
  Cross-Docks:
    Input → Output
  Delivery:
    Output → Customer
Sale Order Line
  Sale Order Line Example: Drop-shipping

  Order:
    Supplier → Customer

Push Rules
==========

Push rules trigger when products enter a specific location. They automatically
move the product to a new location. Whether a push rule can be used depends on
applicable routes.

.. rst-class:: alternatives force-right

Quality Control
  * Product lands in Input
  * Push 1: Input → Quality Control
  * Push 2: Quality Control → Stock
Warehouse Transit
  * Product lands in Transit
  * Push: Transit → Warehouse 2

Procurement Groups
==================

Routes and rules define inventory moves. For every rule, a document type is
provided:

* Picking
* Packing
* Delivery Order
* Purchase Order
* ...

Moves are grouped within the same document type if their procurement group and
locations are the same.

A sale order creates a procurement group so that pickings and delivery orders
of the same order are grouped. But you can define specific groups on
reordering rules too. (e.g. to group purchases of specific products together)