Best Practice Guidelines: Stock Management
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13. Appendix C: Stock Glossary
This glossary will help you to understand the terms of the stock module in GoodX Software.
Active Item
The Stock item is active
The Stock item can be used on the patient, billed (sales) and received (purchases)
The Stock item can be adjusted
Active, no sales
The item is active but can not be sold to a patient
Stock corrections can be done on the item
Stock Transfers can be done on the item
Bar-codes
A machine-readable code in the form of numbers and a pattern of parallel lines of varying widths, printed on a commodity and used especially for stock control.
Batch Tracking
- A batch is a defined quantity reflecting one homogeneous process including all materials, equipment, and processes used from raw material to packing material. This ensures that products with the same batch number are homogeneous in all aspects.
- A batch code is an identification code assigned to a batch of cosmetics, material or medicine. It may contain information such as manufacturers code, production date, etc. The batch code is usually printed with a laser printer.
- Batch tracking allows a product to be traced, end-to-end, from the manufacturer through a supplier to the practice. The process is used to keep track of which practices received specific batches of product and when they were received.
- Serial Number A serial number is a unique identity for a specific item. For example, you can locate a computer using its serial number. The serial number can provide additional information regarding a specific item as its manufacturing date, warranty data, and so on.
- A batch number is an identification number assigned to a particular quantity or batch of material from a single manufacturer. Batch numbers can typically be found on the outside of packaging
Bins
You can also call the bin as a basket or shelf
The item can only be placed in one bin (place)
Example is "Emergency trolley"
Items you receive extra with your order that you do not have to pay for.
Broken stock
The stock that had fallen or you are unable to use because the item was damaged.
Categories
Different classifications of the stock items.
Chargeable | Non-Chargeable Item
Chargeable - An item that may or should be billed to the patient account.
Non-Chargeable - The item must be billed on the patients' account BUT with a ZERO value (price)
The item was used and must be put on the patient account (to adjust the movement of the item and future reference), but the patient is not allowed to pay for the item according to the medical association.
Consignment stock is stock legally owned by one party but held by another, meaning that the risk and rewards regarding the said stock remain with the first party while the second party is responsible for distribution or retail operations.
The consignment stock will be kept in your practice and when you use the item on the patient, then only will the owner of the stock be able to charge you for the item.
Cost of Sales
The cost of sales is the accumulated total of all costs used to create a product or service, which has been sold. The last 5 years accumulated purchases will be used per unit price for the average.
The cost of sales will only be calculated when the item is sold.
Counting Location
The item can be placed in multiple counting locations
The items can be set up in the correct sequence of the shelf or drawer
An example is "Ward Stockroom shelf 1"
Credit Note
A receipt (Credit Note) was given by a supplier to you because you returned goods. You can offset this Receipt/Credit Note against future purchases.
Creditors
A business who provides supplies or services to a practice and does not demand payment immediately is also considered a creditor, based on the fact that the practice owes the business money for services already rendered.
Disc + Charged
Chargeable - that may or should be billed to the patient account
Disc - Discount, a deduction from the usual cost of the item.
You will be allowed to give a discount on this item if you wish to.
Ethical drug
A drug that is available only with written instructions from a doctor or dentist to a pharmacist.
Expired stock
The date after which a product (medicine) should not be sold because of an expected decline in quality or effectiveness.
FIFO
First In First Out
The item you bought first will be sold to a patient first against the price you bought it for
If you had 3 purchased for the item, the first purchase will be used first before the second purchase items will be used
Generic drug
The generic drug is inequivalent to the branded product, meaning there is either no significant difference between the two drugs in terms of the rate and extent of absorption or if there is a difference, it is either intended or not medically significant.
Inactive Item
The Stock item is inactive
The Stock item cannot be used on the patient, billed (sales) and received (purchases)
The Stock item cannot be adjusted
To add an item to a specific category, bin or counting location.
The goal is to determine where the item is kept in the practice.
The stock counting sheets will work easily when you have 1 sheet per location. That means not more than 25 items in each location. This will make counting easier. And allow more persons to assist in the counting process.
Last Purchase price
This is the amount you have bought your last item for.
Every item has its own Last purchase price.
Example - When you buy 3 different orders on 3 different days, your last day and last order you bought will be the Last Purchase price.
Lost Stock
Loss of stock is a condition in which there is less of an item in stock than database or paper records indicate there should be.
These occurrences must be tracked to identify patterns of loss that are linked to misplacement or theft of inventory items so that corrective action can be taken.
Maximum Stock Level
The limit is normally determined after considering storage space of the facilities, how quickly inventory is sold or used, the cost of insurance on inventory, and the risk of inventory becoming outdated before it is used.
Minimum Stock Level
The purpose of keeping the minimum stock level is to enable the stock controller to avoid running out stock.
The level below which inventory should never drop.
This number is 0 only if backorders are not permitted.
It is determined by calculating the estimated amount of time from the beginning of production, through the time of transit, to the point at which the product is either "on the shelf" or in the hands of the customer who ordered it
NAP PriceNAP - means the Net Acquisition Price model in terms of which all surgical items and prostheses are billed at the cost price thereof, without any mark-up being applied.
Nappi Code
A NAPPI code is a unique identifier for a given ethical, surgical or consumable product which enables electronic transfer of information throughout the healthcare delivery
chain.
A Nappi code last 3 digits will indicate the number of pack sizes.
You can receive Nappi codes from the suppliers or if the supplier is not able to assist you can use MediKredit website to assist you with a Nappi code for the stock items.
MediKredit website - www.medikredit.co.za, click on the search facility.
No Discount
Discount - a deduction from the usual cost of the item.
No Discount - there will be no discount allowed on this item and the full sales price must be paid.
Non-Stock
A type of product that is purchased or sold but whose quantity is not tracked.
This type of item is purchased for use in the practice.
Non-Stock Items appear in the customer process (on Invoices or Credit Notes).
The Non-Stock will be posted directly to an Expense account, the stock items were purchases but the item will not be included into the stock take.
This is items that will not be counted.
Pack price
This is the amount the whole pack costs.
Example - There are 100 needles in a pack and the pack price is R100.00, the unit price will be R1.00.
Packs & Pack Size
A small cardboard or paper container and the items contained within it.
When you buy items you will buy an item in a container with the same items in the same container, the whole container is called a pack.
For example - Panado tabs you can buy in a pack of 12, 24, 36, or 1000 and 5000 tablets in one container, the pack size will be 12, 24, 36 or 1000 and 5000.
Private Item
The item will be charged on the patient account and will not be billed on the medical aid account or sent to the medical aid.
A Prosthesis is an artificial device that replaces a missing body part, which may be lost through trauma, disease, or congenital conditions.
Purchase price
The amount you bought the items for at the supplier.
The price on your creditor invoice per date and per item.
Quantity (QTY)
The number of units you have on hand.
Re-order
The reorder point (ROP) is the level of inventory which triggers an action to replenish that particular inventory stock. It is a minimum amount of an item which a practice holds in stock, such that, when the stock falls to this amount, the item must be re-ordered.
The inventory level at which the practice would place a new order
Sales price
The sales price is the price that will be charged on the patients account per item. The price the practice or hospital are selling the items to the patients.
The calculation will be the list price + markup % = sales price per unit/pack
Schedule Medicine
A Scheduled medicine merely means a medicine declared to be such by the Minister of Health in the Schedules to the Medicines Act. The active ingredient(s) in the product usually dictate its status albeit that its get-up (injectable) may also play a role.
Items are classifiable from schedule 0 to 10.
Standard Stock
Items you have bought to use on the patient or sell to the patient.
Stock items refer to those items that you keep physically in stock in your practice.
Stock items have quantities associated with it. Every time a sale is made for an item, its quantity will be reduced.
Stock Levels
The quantity of stock that you have in your practice
Subclasses
Is a sub (extra level) category you can define the stock items in
Unit Price
This is the amount for only one item.
Example - Their are 100 needles in a pack and the pack price is R100.00, the unit price will be R1.00 per unit.
Units
One item, the pack will be 20 QTY but the unit will only be 1 item.
Value
The price value of your stock items on hand.
This is how much the stock item is worth.
Warehouse
Can be your whole practice
Can be a storeroom with a lot of different items in
You will have to do the patient billing according to your warehouses