Item Opening in any Organization is
very important phase because if proper structure and process is not followed
then a single item can have multiple name and multiple location of storage and
different rate and different value. Matching of such items can not be easy
always.
Demerits
of Wrong Item Name and Code opening.
1- Recourse Miss Usage-
Same Item Can have multiple Storage
Location
2- Loss To Company-
Item exists in Store with XYZ name but the user
department calls the Item with ABC Name. So in
Emergency case already available item will be indent
or purchased again.
3- Costing –
Same item with different name and
rate will effect the
organization costing.
4- Quality -
Same
Item with different name and purchased from different Supplier will have different
quality parameters.
5- User confusion-
A old
user may be familiar to the name of item but a new joined user will not able to distinguish the products.
6- Taxes Losses-
U supplier may sell
the item in X taxation's and V supplier may sell the item in Y taxation's.
So it will be
loss to company and comes in category of fraud in
b Government.
Merits
of Single Item Name In Organization.
1- Zero Recourse Miss
Usage-
In Emergency condition, Item can be
track in various location of
organization
2- Zero Loss to
Company-
Item have
the Common name with Standard and all user will be familiar with that, Because Standard is followed in Name Creation So new user
will also be familiar with that.
3- Costing -
Single item Costing will be always easy
4- Quality -
Standard
parameter is defined for item So quality compromises is not
possible at the time of purchase.
5- User confusion-
Standard
is followed so confusion to user will be Zero.
6- Taxes Losses-
Standard
is followed so no taxes issues will occur.
Types
of Items in Organization with respect to Purchase and Store.
1- Consumables/ Salable Items.
2- Service Item
3- Asset Item.
Now If i am working in Organization where Finish Good is produced from 5 Separate Semi-Finish Good then fro these 5 different Semi- Finish Goods we have different RAW Material So we can separate our RAW Material on the basis of process or naming of machining or something else.
Advantage of doing this will be help to analysis the costing of different process and optimization of Utilization.
Consumables/ Salable Items.
Those which effect our Stock directly.
Those items which can be used once only are called Consumables Items.
Those items which is sold is called salable Items.
Consumables Items are various type such as:-
1- Raw Material
2- Electrical Machinery
3- Mechanical Machinery
4- Office
5- Computer
6- Cleaning
Theses are some categories even the users or respected organization can distribute the items into various subgroup according to usage to specify the location and consumption of item and make costing of the item easier.
Example- Raw Material
Definition - All those material on which by doing some mac hing or performing some process a new Item is produced is called RAW Material.
Now If i am working in Organization where Finish Good is produced from 5 Separate Semi-Finish Good then fro these 5 different Semi- Finish Goods we have different RAW Material So we can separate our RAW Material on the basis of process or naming of machining or something else.
Advantage of doing this will be help to analysis the costing of different process and optimization of Utilization.
