Purchase indents are material requests made by branch or department to head-office or another branch/department within the organization. If purchases are centralized, the Purchase Manager or Merchandiser can make purchase decisions based on indents received or transfer existing stocks from any location to fulfill the demand.
A stock transfer is internal, and the act of moving goods from one part of the distribution chain to another. An internal purchase order is created for stock transfer between branches and warehouses.
So, any enterprises operating its business on a larger scale, having different locations, work on the principle of Indents and Stock Transfers.
The stocks are transferred for various reasons. Some of them include:
- Semi-Finished Goods from one unit to another
- Finished/Semi-Finished Goods from Godowns/Warehouses.
- Transfers in Supply Chain Management.
- Transfers from one department to another (Ex. Defective material can be transferred to Repairs and Maintenance department, and then transferred back after repairs).
Any manufacturing business process today requires frequent stock transfers from one location to another, to transport inventory, raw material, or delivery. Accounts ERP helps the business activities to ensure that all the processes are carried efficiently and everything is in its place.
Centralized purchase in an organization is right for bulk-buying and negotiating competitive prices. It facilitates the purchase head to compare and review as he can have a detailed report of the Purchase Indents through the Accounts ERP software. The companies located in multiple locations are also able to study their inventory and then raise a purchase order if required.
Consider this situation - There are times when there are urgent requirements of a particular material, but the Purchase Head does not have enough time to place the order. Accounts ERP’s amazing dashboard gives him a quick view through all his locations where the said material is available to meet the urgent requirement. He can then have the stock transferred to the site where it is needed. Accounts ERP provides a consolidated view of all critical business functions, and a purchase head can have a periodic review through the detailed reports provided by our software, and determine whether a particular item is needed as per the prescribed quantity or not.
Indent & Stock Transfer Features of Accounts ERP
- You can define minimum / maximum order quantity parameters at product master levels to avoid overstocking or understocking for each location.
- Define re-order quantity and lead time along with vendor details with each product at the master level to quickly generate purchase orders.
- Auto-generate purchase order with rate history comparison
- Auto-generate Indent/stock transfer request between locations
- Maintain multiple vendors wise purchase pricelist rate comparison during purchase order product entry.
- MIS alerts at overstock/understock situation as per defined parameters.
- Re-order report where there is a shortage from minimum qty defined in the product master.
Our new-age business accounting software, Accounts ERP provides a consolidated view of all the critical functions related to Indent & Stock transfer. A purchase head can analyze the detailed reports provided by our system, and determine whether the purchase or stock transfer of requested items are justified.
REAL-TIME CLIENT BASED EXPERIENCE:
Purchase Indents and Stock transfer within the company’s various locations are now automated in one software along with different other decision-making processes needed for any business to grow.
Our esteemed clients who have established their company activities in different locations can now quickly fulfill the requirements from a centralized location. Before using Accounts ERP, one of our clients had difficulty in meeting the purchase requirements of every location. By centralizing the purchase and using our Accounting Software, he managed to streamline all his purchases. He can now quickly transfer stocks looking at the indents received from different branches. There would not be excess storage of materials and vice-versa. If one of his branches required a particular item, he could look at the inventory of all the other locations, and transfer any excess stock he has in one location thus meeting all the requirements and avoiding overstocking.
As they say, big successes are built on small steps of structured processes that take care of leaky buckets, ensuring that all efforts are put towards working on the business rather than in the business. Our software has it all. Contact us now for a demo over coffee.