INVENTORY MODULE

Set-up: Warehousing shall be de-centralized. Each location shall have a

warehouse in-charge who is responsible for inventory monitoring. The following are
the designated locations and respective personnel in-charge:
1. Feedmill Warehouse In-charge (SAP-generated)
2. Live Operations
generated)

(Breeder/Broiler)

and

Admin

Warehouseman

(SAP-

3. Farms (Breeder and Broiler) Accounting Specialist (Manual Receiving)

4. Ice Plant Accounting Specialist (SAP-generated)
5. Dressing Plant Accounting Specialist (Manual Receiving)
6. Cebu/Iloilo Warehouse In-charge (SAP-generated)

RECEIVING
In general, all items to be received should have a supporting Purchase Order.
No PO, no receiving. Upon delivery of item, the warehouse in-charge should check
the items as to quantity and quality. If there are no exceptions found, then in-charge
shall stamp the delivery documents and prepare a Receiving Report (RR) using SAP.
For manual receiving, a pre-printed RR shall be filled-up. For SAP-generated RR, see
Exhibit A of this module. For items picked up at store, the Purchasing Runner shall
prepare a manual RR. Hard copies of RR and supporting documents should be
transmitted a day from actual date of receipt.
The RR copy shall be distributed as follows:
a. Original Copy Supplier
b. Duplicate Copy A/P Acctg Specialist
c. Third Copy File Copy
TRANSFERS
For Feeds, Eggs, DOC and Branch Transactions, transfers shall commence
with a Transfer Request to be issued by the department issuing the items. For
issuance of SAP-generated Transfer Request, refer to Appendix B of this module. The
one receiving the inventories will be the one to finalize the transfer. Copies shall be
distributed as follows:
a. Original Copy Destination
b. Duplicate Copy Trucker
c. Third Copy File Copy

For all other transactions, it shall be recorded in SAP as transfers with

reference to the manual Transfer Form. Hence, the last copy shall be forwarded to
the SAP encoder assigned for recording.
ISSUANCES
For issuance of materials not included in production, an Issuance Request
form is necessary signed by the immediate superior of the requesting employee.
The approved request form shall be the basis for issuance of materials in SAP
by the logistics assigned in every area. To do so, refer to Appendix C. The Issuance
Report shall be distributed as follows:
a. Original Copy Destination
b. Duplicate Copy Trucker, if applicable
c. Third Copy File Copy
For Issuances in areas where SAP is not available, the Last Copy of the
Issuance Form shall be forwarded to the SAP encoded assigned for recording.
DISPOSAL
For items for disposal, a Disposal Form should be filled up by the authorized
person per department. The same shall be validated by the Quality Assurance
Officer, or the Immediate Superior in the absence of the QA Officer. Every disposal
should be attested by an accounting officer. The inventory accountant shall then be
responsible for issuance of the items disposed in SAP. For scrap sales where revenue
is collected, the same shall be remitted to the cashier within 24 hours from
payment.
Exhibit A
RR Preparation in SAP
1. From the Purchasing - AP Module, open Goods Receipt - PO window. Fill out
the necessary information in the header including the Supplier Name, Posting
Date, Delivery Date, Document Date, etc.
2. In the contents tab, make sure that the transaction type is ITEM. For the
bottom right corner of the same window, click the key Copy From to copy
information from the related Purchase Order. Choose the related Purchase
Order and edit information, if necessary. Make sure that the items and
quantity corresponds with the actual delivery.
3. Review entries in the GR-PO draft before adding, then print. To check the
latest transaction added, click the navigation tool
which will display the
last data record.

Exhibit B
Inventory Transfer in SAP
1. From the Inventory Module, choose Inventory Transactions and open the
Inventory Transfer Request Window. Fill out the necessary information in the
header including the Business Partner Name(if applicable), Posting Date,
Delivery Date, Document Date, etc. Select the warehouse where the items to
be transferred are coming from.
2. In the contents tab, input the items to be transferred and the corresponding
quantities. Input the warehouse where the items will be transferred and add.
3. To finalize transfers, open Inventory Transfer window in the same module.
Complete the information in the header the click the Copy From button in
the lower right portion to see the list of pending Inventory Transfer Requests.
Choose the request to be approved then review accuracy of details before
adding.
Exhibit C
Issuance in SAP
1. To issue materials manually, open the Inventory Module and select Goods
Issue in the Inventory Transaction folder. Fill out dates in the header and input
the items to be issued in the contents tab. Indicate the warehouse where the
items to be disposed are coming from.
2. Select the GL Account where the issuance will be charged. (e.g, Cost of Sales,
Expenses, Etc.) Review details then add.