5/21/2019 Stock Management

System
Chapter 3

Store Models

Semahegn Abebe
CNET SOFTWARE TECHNOLOGIES PLC
Page 1-1 of 24
Table of Content
1 INTRODUCTION ............................................................................................................................................... 1-3
2 DOCUMENT FLOW ........................................................................................................................................... 2-3
2.1 SINGLE BRANCH SINGLE STORE (SBSS)................................................................................................................... 2-3
2.1.1 Document Flow Model .............................................................................................................................. 2-3
2.1.2 Documents Involved .................................................................................................................................. 2-4
2.2 SINGLE BRANCH HIERARCHICAL STORE (SBHS) ........................................................................................................ 2-5
2.2.1 Document Flow Model .............................................................................................................................. 2-5
2.2.2 Documents Involved .................................................................................................................................. 2-6
2.3 MULTIPLE BRANCH SINGLE STORE (MBSS) ............................................................................................................. 2-7
2.3.1 Document Flow Model .............................................................................................................................. 2-7
2.3.2 Documents Involved .................................................................................................................................. 2-8
2.4 MULTIPLE BRANCH PARALLEL STORE (MBPS) ......................................................................................................... 2-9
2.4.1 Document Flow Model .............................................................................................................................. 2-9
2.4.2 Documents Involved ................................................................................................................................ 2-10
2.5 MULTIPLE BRANCH HIERARCHAL STORE (MBHS) ................................................................................................... 2-11
2.5.1 Document Flow Model ............................................................................................................................ 2-11
2.5.2 Documents Involved ................................................................................................................................ 2-12
2.6 FAST MOVING CONSUMER GOODS (FMCG) ......................................................................................................... 2-13
2.6.1 Document Flow Model ............................................................................................................................ 2-13
2.6.2 Documents Involved ................................................................................................................................ 2-14
2.7 MULTIPLE BRANCH WITH GIT ............................................................................................................................. 2-15
2.7.1 Document Flow Model ............................................................................................................................ 2-15
2.7.2 Documents Involved ................................................................................................................................ 2-16
3 WORKFLOW .................................................................................................................................................. 3-17
4 USE CASE ....................................................................................................................................................... 4-20

Page 1-2 of 24
1 Introduction
Stores organization can be modeled using different parameters. The modeling concept in this section considers
four parameters – number of branches, hierarchy of stores, count of hierarchies and number of stores involved
in the stock transactions.

Some companies have a single branch and a single store in that branch. Others could have multiple branches
each branch having single store. While others may have a central store with multiple branch having multiple
stores with parallel or hierarchical manner. The following table summarizes the five store models:

SN Description Multiple Hierarchy Hierarchy Multiple

Branch level Stores

1. Single Branch Single Store No No 0 No

2. Multiple Branch Single Store Yes No 1 Yes

3. Single Branch Hierarchical Store No Yes 1 Yes

4. Multiple Branch Parallel Store Yes Yes 1 Yes

5. Multiple Branch Hierarchical Store Yes Yes 2 Yes

2 Document Flow
2.1 Single Branch Single Store (SBSS)

The single branch single store model is applicable for companies having a single store, which is considered as
both main store and sales outlet store. SBSS also has a physical or virtual damage store. All transactions with
the supplier and the customer are done from same store. Thus, the store is used to contain purchased goods
and perform sales as well. This type of organization is common for small and medium sized business
organizations, import and wholesale companies.

2.1.1 Document Flow Model

Single branch single store uses different vouchers to receive, issue and other stock management activities as
shown on the following diagram:

Page 2-3 of 24
 Cash Sales
I/L PO PRV

Cr./C Goods receiving Credit Sales

Replacement GRV Promotion

Consignment GRV Main store Sales Return

Suppliers Customers
Replacement Request Delivery

Sales Substitute
Supplier Return

Shortage GRV

Damage GRV DRV

RCV

Damage Store
DV

2.1.2 Documents Involved

The following table contains the list of vouchers used in both directions:

Category Vouchers

Receiving  Goods Receiving Voucher (GRV)

 Replacement GRV (RGR)
 Consignment GRV (COR)
 Store Return Voucher (STR)
 Sales Refund Voucher (SAR)
 Sales Substitute Voucher (SSV)

Issuing  Cash Sales Voucher (CSV)

 Credit Sales Voucher (CRV)
 Promotion Item Voucher (PIV)
 Supplier Goods Return Voucher (SUR)

Page 2-4 of 24
  Damage Return Voucher (DRV)
 Goods Disposal Voucher (GDV)

Management  Replacement Request (RRV)

 Purchase Request Voucher
 Local Purchase Order
 International Purchase Order
 Delivery Order Voucher (DOV)

2.2 Single Branch Hierarchical Store (SBHS)

The single branch hierarchical store model is used to manage multiple stores that are organized hierarchically
but are in a close proximity with each other i.e. in a building or a compound. In a normal circumstance, one of
the stores which is considered as the main store is responsible to receive goods from the supplier and handle
all the communication with the supplier. It is also responsible to issue store requests from sales outlet stores.
On the other hand, the sales outlet stores are responsible to handle the sales transactions with the
customer/consumer.

2.2.1 Document Flow Model

The following diagram shows how documents or vouchers are used in single store multiple hierarchy store
model:

Page 2-5 of 24
 Sales outlate
Internal GRV
Cash Sales

Credit Sales
Store Request
Promotion
I/L PO PRV STV Out late store -1
Sales Return Customers
Cr./C Goods receiving Store Return
Delivery
Replacement GRV
Main Store Sales Substitute
Consignment GRV

ISTV
ISTV
Replacement Request
Suppliers

Supplier Return Store Request

Shortage GRV STV

Out late store -2
Damage GRV Store Return
DRV

RCV

IDRV

Damage Store Damage Transfer IRCV

Floor Damage Store
DV

2.2.2 Documents Involved

Single branch hierarchical store model uses different vouchers to receive, issuing, transfer and other goods
management activities. The following table contains the list of vouchers used in both directions:

Category Vouchers

Receiving  Goods Receiving Voucher (GRV)

 Replacement GRV (RGR)
 Consignment GRV (COR)
 Sales Return Voucher
 Sales Substitute Voucher (SSV)

Issuing  Cash Sales Voucher (CSV)

 Credit Sales Voucher (CRV)

Page 2-6 of 24
  Promotion Item Voucher (PIV)
 Supplier Goods Return Voucher (SUR)
 Goods Disposal Voucher (GDV)

Transfer (Receive/Issue)  Store Transfer Voucher (STV)

 Internal Store Transfer Voucher (ITV)
 Damage Return Voucher (DRV)
 Store Return Voucher (STR)
 Internal Store Transfer Voucher (ISTV)
 Internal Damage Return Voucher (IDRV)

Management  Store Request Voucher (SRV)

 Replacement Request (RRV)
 Purchase Request Voucher
 Purchase Order
 Delivery Order Voucher (DOV)

2.3 Multiple Branch Single Store (MBSS)

Multiple branch single store model is designed for companies having one main store and several branches
having single store at each branch. What makes this model different from the single branch hierarchical store
model is the geographic location of the sales outlet. In normal situations, outlet stores are filled with goods
directly coming from the main store.

2.3.1 Document Flow Model

The following model diagram shows how documents or vouchers are used to track transactions in the multiple
branch single store situation.

Page 2-7 of 24
 Branch -1
Internal GRV

I/L PO PRV

Cr./C Goods receiving Cash Sales

Replacement GRV
Store Request Credit Sales
Consignment GRV
Out late store -1
Suppliers Main Store
Replacement Request STV Promotion
Customers
Supplier Return Store Return Sales Return

Shortage GRV Delivery

Damage GRV Sales

Substitute

IDRV

IRCV
DRV

RCV

Damage Store Branch Damage Store

Damage Transfer
DV

2.3.2 Documents Involved

Multiple branch single store model uses different vouchers to receive, issuing and other goods management
activities. The following table contains the list of vouchers used in both directions:

Category Vouchers

Receiving  Goods Receiving Voucher (GRV)

 Replacement GRV (RGR)
 Consignment GRV (COR)
 Sales Return Voucher
 Sales Substitute Voucher (SSV)

Issuing  Cash Sales Voucher (CSV)

 Credit Sales Voucher (CRV)
 Promotion Item Voucher (PIV)

Page 2-8 of 24
  Supplier Goods Return Voucher (SUR)
 Goods Disposal Voucher (GDV)


Transfer (Receive/Issue)  Store Transfer Voucher (STV)

 Internal Store Transfer Voucher (ITV)
 Store Return Voucher (STR)
 Damage Return Voucher (DRV)
 Store Return Voucher (STR)
 Internal Damage Return Voucher

Management  Store Request Voucher (SRV)

 Replacement Request (RRV)
 Purchase Request Voucher
 Purchase Order
 Delivery Order Voucher (DOV)

2.4 Multiple Branch Parallel Store (MBPS)

Multiple branch parallel store model is designed for companies having one main store and several branches
with one or more parallel sales outlet stores within each branch. What makes this model different from the
multiple branch single store model is the existence of multiple parallel sales outlets in a single branch and the
goods movement among the sales outlet stores.

2.4.1 Document Flow Model

The following model diagram shows how different documents or vouchers are involved in multiple branch
parallel stores transactions:

Page 2-9 of 24
 Branch -1
Internal GRV

Store Request
I/L PO PRV
STV Out late store -1
Cr./C Goods receiving
Cash Sales
Replacement GRV Store Return
Credit Sales
Consignment GRV
Suppliers Main Store Promotion
Replacement Request
Customers

ISTV
ISTV
Supplier Return Sales Return

Shortage GRV Store Request

Delivery

Damage GRV STV Out late Store -2 Sales

Substitute
Store Return
IDRV

IRCV
DRV

RCV

Damage Store Branch Damage Store

Damage Transfer
DV

2.4.2 Documents Involved

Multiple branch parallel store model uses different vouchers to receive, issue, transfer and other goods
management activities. The following table contains the list of vouchers used in both directions:

Category Vouchers

Receiving  Goods Receiving Voucher (GRV)

 Replacement GRV (RGR)
 Consignment GRV (COR)
 Sales Return Voucher
 Sales Substitute Voucher (SSV)

Issuing  Cash Sales Voucher (CSV)

 Credit Sales Voucher (CRV)
 Promotion Item Voucher (PIV)

Page 2-10 of 24
  Supplier Goods Return Voucher (SUR)
 Goods Disposal Voucher (GDV)


Transfer (Receive/Issue)  Store Transfer Voucher (STV)

 Internal Store Transfer Voucher (ITV)
 Store Return Voucher (STR)
 Damage Return Voucher (DRV)
 Store Return Voucher (STR)
 Internal Damage Return Voucher

Management  Store Request Voucher (SRV)

 Replacement Request (RRV)
 Purchase Request Voucher
 Purchase Order
 Delivery Order Voucher (DOV)

2.5 Multiple Branch Hierarchal Store (MBHS)

Multiple branch hierarchal store model introduces the concept of distribution store, which is a type of buffer
store to facilitate the refilling of sales outlets by putting the distribution stores at close proximity from the sales
outlet stores. This model is mainly required to back up a high turnover stores such as supermarkets, pharmacies,
and other similar retail businesses sales outlets.

2.5.1 Document Flow Model

The following model diagram shows how documents or vouchers are used to capture and manage stock related
activities in multiple branch hierarchal stores organization:

Page 2-11 of 24
 Branch -1
Internal GRV
Internal GRV
Store Request

Int. Store Transfer

I/L PO PRV
Out late store -1
Cr./C Goods receiving

Replacement GRV Store Request Int. Store Return

Cash Sales
Consignment GRV Branch -1
back Store Credit Sales
Suppliers Main store
Replacement Request

ISTV
ISTV
Promotion
Supplier Return STV Customers
Store Request Sales Return
Shortage GRV
Store Return Int. Store Transfer Out late store -2
Damage GRV Delivery
Int. Store Return
Sales Substitute

IDRV

IRCV
IDRV

IRCV
DRV

RCV

Branch Damage Store

Damage Store Damage Transfer
DV

2.5.2 Documents Involved

Multiple branch hierarchal store model uses different vouchers to receive, issue, transfer and other goods
management activities. The following table contains the list of vouchers used in both directions:

Category Vouchers

Receiving  Goods Receiving Voucher (GRV)

 Replacement GRV (RGR)
 Consignment GRV (COR)
 Sales Return Voucher
 Sales Substitute Voucher (SSV)

Issuing  Cash Sales Voucher (CSV)

 Credit Sales Voucher (CRV)
 Promotion Item Voucher (PIV)
 Supplier Goods Return Voucher (SUR)

Page 2-12 of 24
  Goods Disposal Voucher (GDV)

Transfer (Receive/Issue)  Store Transfer Voucher (STV)

 Internal Store Transfer Voucher (ITV)
 Store Return Voucher (STR)
 Damage Return Voucher (DRV)
 Store Return Voucher (STR)
 Internal Damage Return Voucher

Management  Store Request Voucher (SRV)

 Replacement Request (RRV)
 Purchase Request Voucher
 Purchase Order
 Delivery Order Voucher (DOV)

2.6 Fast Moving Consumer Goods (FMCG)

Fast moving consumer goods model is used to handle store transactions that are based on a single main store
but multiple transportation stores/vans that serves as a sales outlet. All customer communications are carried
out through the transportation vans except those communications that are done with the wholesalers. This
model is mainly required to in food and beverage manufacturing industries.

2.6.1 Document Flow Model

The following model diagram shows how documents or vouchers used to capture and manage stock related
activities in fast moving consumer goods stores organization:

Page 2-13 of 24
 Whole sale
Customers Cash Sales

Credit Sales

Sales Return
Cash Sales
Credit Sales

Promotion
Zone-1
VAN-1
Sales Return Customers
Store Request
I/L PO PRV Delivery
STV
Cr./C Goods receiving
Sales Substitute
Store Return
Replacement GRV

ISTV
ISTV
Consignment GRV Main store

Suppliers
Replacement Request
Cash Sales
Store Request
Supplier Return
Credit Sales
Shortage GRV STV
Promotion
Damage GRV Store Return VAN-2 Zone-2
Sales Return Customers
DRV

RCV

Delivery

Damage Store Sales Substitute

DV

2.6.2 Documents Involved

Fast moving consumer goods store model uses different vouchers to receive, issue, transfer and other goods
management activities. The following table contains the list of vouchers used in both directions:

Category Vouchers

Receiving  Goods Receiving Voucher (GRV)

 Replacement GRV (RGR)
 Consignment GRV (COR)
 Sales Return Voucher
 Sales Substitute Voucher (SSV)
 Damage Recovery Voucher

Issuing  Cash Sales Voucher (CSV)

Page 2-14 of 24
  Credit Sales Voucher (CRV)
 Promotion Item Voucher (PIV)
 Supplier Goods Return Voucher (SUR)
 Goods Disposal Voucher (GDV)

Transfer (Receive/Issue)  Store Transfer Voucher (STV)

 Store Return Voucher (STR)
 Damage Return Voucher (DRV)
 Store Return Voucher (STR)

Management  Store Request Voucher (SRV)

 Replacement Request (RRV)
 Purchase Request Voucher
 Purchase Order
 Delivery Order Voucher (DOV)

2.7 Multiple Branch with GIT

Multiple Branch Transit Store model introduces the concept of transit store, which is a type of temporary store
to facilitate the transportation goods from one store to any other store. The main objective of the transit store
is to ensure the safe delivery of goods from one store into another. This model is mainly required in multi-
branch high value commodity industry such as supermarkets, pharmacies, and other similar retail businesses
sales outlets.

2.7.1 Document Flow Model

The following model diagram shows how documents or vouchers used to capture and manage stock related
activities in Multiple Branch Transit Store model organization:

Page 2-15 of 24
 Main Store Branch -1
Internal GRV
Cash Sales
Internal GRV
Int. Store Request
Credit Sales
I/L PO PRV Store order Store Request
Int. Store Transfer Promotion
Cr./C Goods receiving Customers
Sales Return
Replacement GRV Store transfer Out late store -1
Branch -1
back Store Delivery
Consignment GRV Int. Store Issue
Local transit Transit receiving
Sales Substitute
Replacement Request Int. Store Return
Main store
Suppliers
Supplier Return

Inter-store transit

Transit receiving
Shortage GRV Store Return Return transit

Damage transit
Damage GRV

Int. Store Transfer

DRV

RCV

Inter-store transit
Transit receiving
Damage Store

Branch -2
DV

Cash Sales
Store Request
Credit Sales

Int. Store Transfer Promotion

Branch -2 Out late store -2 Customers
back Store
Sales Return

Delivery
Int. Store Return
Sales Substitute

2.7.2 Documents Involved

Multiple Branch Transit Store model uses different vouchers to receive, issue, transfer and other goods
management activities. The following table contains the list of vouchers used in both directions:

Category Vouchers

Receiving  Goods Receiving Voucher (GRV)

 Replacement GRV (RGR)
 Consignment GRV (COR)
 Store Return Voucher (STR)
 Sales Return Voucher
 Sales Substitute Voucher (SSV)
 Transit Receiving Voucher (TRV)
 Damage Recovery Voucher
 Internal Damage Recovery Voucher

Issuing  Cash Sales Voucher (CSV)

Page 2-16 of 24
  Credit Sales Voucher (CRV)
 Promotion Item Voucher (PIV)
 Supplier Goods Return Voucher (SUR)
 Damage Return Voucher (DRV)
 Goods Disposal Voucher (GDV)
 Store Return Voucher (STR)

Transfer (Receive/Issue)  Store Transfer Voucher (STV)

 Internal Store Transfer Voucher (ITV)
 Local Goods Transit Voucher (LTV)
 Inter-Store Transit Voucher (ISV)
 Store Return Transit Voucher
 Damage Return Transit Voucher
 Damage Transfer Voucher
 Internal Damage Transfer Voucher

Management  Store Request Voucher (SRV)

 Replacement Request (RRV)
 Purchase Request Voucher
 Purchase Order
 Delivery Order Voucher (DOV)
 Supplier Return Request Voucher
 Disposal Request Voucher

3 Workflow
In the Stock Management Module, there are four major processes –

 Goods Receiving,
 Damaged Goods Handling,
 Higher Level Stock Movement Handling and
 Lower Level Stock Movement Handling.

The following diagrams shows the workflow diagram for each one of the processes:

Page 3-17 of 24
 Strat

Prepare Purchase
Requisition

End Declined Requisition Approval

Prepare IPO International Check Supplier

Local

Prepare LPO

Inspect Goods Shortage Shortage GRV Shortage Inspect Goods

Damage Damage

Damage GRV
Prepare GRV
Prepare IGRV

Prepare STV to
Damage Store
Approve GRV No Void GRV

Yes

Affect Stock and

Cost

End

Figure 1 - Goods Receiving Workflow Diagram

Page 3-18 of 24
 Start

Check Damage
Supplier Prepare SuRV
Cause

Internal
Deduct From
Can be Replaced
Supplier Payable
Prepare Disposal Check Damage
Company Check Liability Non-Recoverable
Voucher Type
Yes

Staff Recoverable

Prepare RRV
Approve Prepare Credit Sales
Void Disposal Prepare SRV
Disposal Order

Yes

Prepare
Prepare Sales Update Value Replacement GRN
Affect Inventory and Invoice (Sailing Price)
Expense

End

Figure 2 - Damaged Goods Handling Workflow Diagram

Start

Prepare Store
Request

Request
Approved

Yes

Prepare Purchase
Not Available Check Balance
Request

Available

Prepare Store Order

No

Prepare Item
Consumption Consumption Check Purpose Production Prepare SIV
Voucher

Sales

Prepare Store
Transfer

End

Figure 3 - Higher Level Stock Movement Workflow Diagram

Page 3-19 of 24
 Start

Prepare Internal
Store Request

Request
Approved

Yes

Prepare Store
Not Available Check Balance
Request Voucher

Available

Prepare Store Order

No

Prepare Item
Consumption Consumption Check Purpose Production Prepare SIV
Voucher

Sales

Prepare Internal
Store Transfer

End

Figure 4 - Lower Level Stock Movement Workflow Diagram

4 Use case
In the Stock Management Module, just like the workflow case, there are four major use case categories –
Goods Receiving, Damaged Goods Handling, Higher Level Stock Movement Handling and Lower Level
Stock Movement Handling. The following diagrams shows the use case diagram for each one of the
processes:

Page 4-20 of 24
 Prepare Purchase
Requisition

Requisition Approval

Check Supplier

Procurement Clerk Prepare IPO

Prepare LPO

Shortage GRV
Procurement
Supervisor
System
Inspect Goods

Damage GRV
Store Receiving
Clerk

Prepare IGRV

Prepare GRV

Store Issuing
Clerk Void GRV

Prepare STV to
Damage Store

Approve GRV
Store Supervisor

Affect Stock and Cost

Figure 5 - Goods Receiving Use Case Diagram

Page 4-21 of 24
 Check Damage Cause

Check Damage Type

Check Liability

Prepare Credit Sales

Order

Store Supervisor Check Replacement

Approve Disposal

Void Disposal

Update Value (Sailing

Price) Sales Clerk

Prepare SuRV

Prepare Sales Invoice

Store Issuing Clerk

Prepare SRV

Prepare Disposal
Voucher

Affect Inventory and

Expense
System
Deduct From
Supplier Payable
Store Receiving Clerk
Prepare RRV

Prepare
Replacement GRN

Figure 6 - Damaged Goods Handling Use Case Diagram

Page 4-22 of 24
 Prepare Store
Request

Branch Store Clerk ..

Request Approved

Check Balance System

Store Supervisor
Prepare Purchase
Request

Prepare Store Order

Prepare Item
Consumption
Voucher

Check Purpose

Store Issuing Clerk

Prepare SIV

Prepare Store
Transfer

Figure 7 - Higher Level Stock Movement Handling Use Case Diagram

Page 4-23 of 24
 Prepare Internal
Store Request

Request Approved

Sales Supervisor

Check Balance

System
Prepare Store
Request Voucher

Prepare Store Order

Branch Store Clerk ..

Check Purpose

Prepare Item
Consumption
Voucher

Prepare SIV

Prepare Internal
Store Transfer

Figure 8 - Lower Level Stock Movement Handling Use Case Diagram

Page 4-24 of 24