Question

Explain the goods movements in procurement process. [12 marks]

Answer 1

The four common goods movements of goods receipt, goods issue, stock transfer, and transfer posting. A goods receipt is used to record the receipt of materials into storage, which results in an increase in inventory. A goods issue is used when materials are removed from storage. A stock transfer is used to move goods from one location to another within the organization. Finally, a transfer posting is used to change a material’s status or type. The first three movement types involve the physical movement of goods. Transfer posting may or may not involve physical movement. Every goods movement requires a movement type, which determines the category of movement being executed.