I.

Introduction

In today’s fast passed world brought about by the increasing population of

people, there is indeed a huge increase in the demands of consumers. In line with this,
grocery stores like NOVO Grocery Department, using First-In-First-Out (FIFO) method
having a big area for display of its goods and caters hundreds of people a day, should
update its inventory for an efficient, timely and accurate report of the goods bought
(purchases) to be netted with the goods sold (sales). Doing it manually would take much
effort and excessive time and in addition, would be too bulky for an enterprise that
purchases about twice a month and sells its goods in no time. In worst cases, there
might be inaccuracies with the manual way of doing an inventory causing shortage of
supplies that is never healthy for a grocery business.
This scenario calls the need for an Inventory System, a system that will store and
report information about all the purchases, sales and the flow of goods in the enterprise.
The bookkeeper shall monitor in the database the inflow and outflow of goods indicating
the quality ( in dozens) and cost; and the system will automatically compute the
inventory on hand and an order for that specific period. Through this database, the
enterprise shall have an accurate, clear, timely, and highly-updated inventory with an
additional ease to the bookkeeper for it only takes a short span of time to work with it.
Unlike the traditional way of having inventory system in a small firm where the
bookkeeper is the only in-charge of recording the in and out flow of goods, this
Computerized Inventory System works with at least three persons involved – the
purchasing officer, cashier and bookkeeper- and each personnel has his own security in
the system. This will give confidentiality and security of the flow of goods in a firm
prohibiting inadmissible access in the purchases and sales thus ensuring no or at least
minimal chance of illegal manipulation of goods.
II. Objectives
The project will develop and design a system that can update the inventory every time a
purchase inflow or out flow occurs.

III. Scope and Limitation of the Project

Scope of the project

This system can record the purchases made by the purchasing officer, with the
quality and cost of good; the sales recorded by the cashier, with the quantity, price and
cash received; and can reflect all transactions in the bookkeeper’s product form.
It will update the goods already accountable for inventory count and those goods
that are still on order via shipping point term. This given convenience to the user to
check inventorial goods.
It will automatically deduct the outflow of goods such as sales, returns and
damage in the system thus making it easy to update the cost of inventory and the cost
of goods sold at year end or any time necessary.
Furthermore, the system will have access to the purchase orders made to
suppliers to track inventory orders in case of returns or damage.
The term “On Order” as used in this program refers to the items ordered and
shipped via FOB, Shipping point and has not yet been received by the entity. Those
goods ordered via FOB, Destination is deemed received by the time of the order.

Limitation of the Project

This system is limited as to the discount taken in each purchase or sales of
goods. It will not make any necessary computation of the purchase and sales discount.

This will also be limited in terms of retail selling because the system involves the
quantity expressed in dozens. In case of retail sales, decimal conversion of the dozen
needs to be expressed.

The system will try to apply the First-In-First-Out Method (FIFO) to generate
concise report of the goods that need rebuy.
 The bookkeeper shall also be vigilant and updated to the reception of shipment
of goods because any unrecorded reception of goods will result into negative units of
units held and understatement of inventory end.

Proper training and exposure of the users- purchasing officer, cashier and
bookkeeper – to the system is also necessary. Since the system involves broad
transactions as it includes purchase order, sales with profit, cost of sales, goods
remaining, and goods shrinkage, returns and damages.

IV. IMPORTANCE OF THE PROJECT

The importance of this Inventory System is that it simplifies and records from
time to time the entire purchase processes in the grocery department leading to the
updated ending inventory and cost of goods sold whenever any period requires. This
gives convenience in tracking and reporting the remaining goods and the cost of goods
sold for certain periods on the part of the bookkeeper.
Doing manual works will be very time intensive and requires much effort for the
bookkeeper to keep recording and updating the purchase every now and then.
Whenever reports are required from the bookkeeper in order to have information about
when, what, and how much goods are needed to be bought or maintained will consume
time on the part of the bookkeeper since he/she will trace back each previous
transaction regarding the in-and-out of goods. Oftentimes, some goods which were
purchased earlier will be missed look due to human error thus leading to the incorrect
amount of cost of goods sold if the First-In-First-Out (FIFO) method is used.
Furthermore, there is a greater chance of torn or bedraggled pages of the record book
due to lack of care and there also arise a possibility of removing some pages to facilitate
stealing some items.
On the other hand, a late report of the needs to order goods from the bookkeeper
will be a problem to the Purchase Officer, since he cannot demand abrupt delivery of
goods to the supplier.
With this inventory system, the bookkeeper will only monitor the inflow of goods
on specific dates as well as the outflow of goods then can immediately compute the
goods remaining n hand and on order and the cost of goods sold. It will be convenient
and on-time to report the need for another purchase on any day required. As to the
possibility of thieves, there is a very little chance that the bookkeeper will omit some
purchase transaction since the inventory system has also access to the cashier by the
time outflow of goods will occur.
On the part of the cashier, manual work will be time consuming to record the sold
items in the book everyday while preparing sale receipts for customers. With the aid of
this inventory system, the recording of the sold items during an outflow of goods can
made. Thus, while taking sales, the inventory system will also update the remaining
goods.
On the part of the purchasing officer, unintentional overlook to remind the
bookkeeper of the order is no longer needed. Since when he made to order, it will
automatically reflect in the book. It will also be convenient on his part since computation
of the payment of order is automatically computed by the system.
EXISTING CONTEXT DIAGRAM LEVEL

Payment Sale Receipt

COSTUMER CASHIER

Payment
Goods/Items
Inventory Summary Report

NOVO GROCERY
Purchase Order
DEPARTMENT BOOKKEEPER
Goods/ INVENTORY
Items SYSTEM
Inflow and Outflow of goods
SUPPLIER
Purchase
Payment Order PURCHASING
OFFICER
Official Receipt
Official Receipt
Payment

It shows the transaction- the inflow and outflow of goods. From the Customer, who buys goods,
tenders payment to the Cashier. The Cashier will receive the payment and issue sales receipt to
the Customer. The sales will be reflected on the record of the Bookkeeper and the inventory
will then be updated to a yield report of the goods remaining. When the Bookkeeper detects
product with low supply, he then submits Inventory Summary Report to the Purchasing Officer.
The Purchasing Officer will submit an order to the supplier, which will deliver the goods and
issue Official Receipt to the P.O. upon settlement of terms. The Bookkeeper will record the
reception of goods and in some cases the returns and damages (outflow other than sales) of
goods.
PROPOSED CONTEXT DIAGRAM LEVEL

Cash Sales
CUSTOMER CASHIER

Goods/ Items Cash

Purchase Order Inventory Summary Report

NOVO GROCERY
Goods DEPARTMENT
INVENTORY BOOKKEEPER
SYSTEM Sales
SUPPLIER

Inventory Goods
Summary Damages and Returns
Report
Purchase Order

PURCHASING
OFFICER

It shows the complete picture of the interaction of the actors to the system. As the
business runs, products flow from enterprise to the customer. When customer pays cash for
products, the cashier will add the sales on the system then the bookkeeper will print the
inventory summary report and this report be given to the purchasing officer to analyze future
purchases. When purchase is needed, a purchase order will be sent to the supplier for the
acquisition of goods. When the purchasing officer submits order to the supplier, the supplier
will deliver goods to the entity to be received by the purchasing officer and to be recorded by
the bookkeeper.
USERS
 PURCHASING OFFICER- refers to the person having the responsibility
of procuring materials supplies and other services.
 SUPPLIER- refers to the company or person who supplies the product.
 BOOKKEEPER- refers to the persons who keep the financial record of
a business.
 CASHIER- refers to the person whose job is to take in or give out
money in a store, etc.
 CUSTOMER- refers to the person who will buy the product.

USER STORIES
 PURCHASING OFFICER
1. Makes the order of the goods to supplier.
2. Inspect and receives delivered goods.
3. Pays the supplier.
 SUPPLIER
1. Supplies or deliver the goods ordered by the Purchasing Officer.
2. Receives payment and issues receipts of payment.
 BOOKKEEPER
1. Updates the inventory system through inputting of inflow and
outflow of goods.
2. Submits report and informs Purchasing Officer about the
purchasing needs.
 CASHIER
1. Inputs the goods sold in the system.
2. Receives payment of the goods sold.
3. Issues Sales Receipt to some times before.
EXISTING USE CASE DIAGRAM

Tender Payment

Submit Purchase
Order
Receive Goods
CUSTOMER
R Receive Receipt

Receive Purchase PURCHASING

Order OFFICER
Deliver Goods

Receive Payment
CASHIER
Issue Receipt

Record in and out of

Goods
Submit Report SUPPLIER

BOOKKEEPER

It shows roles of every person involved in the grocery business of the entity. The
customer shall first tender payment to the cashier. Upon the receipt of the payment, the
cashier will deliver the goods. The bookkeeper shall update the inventory and shall submit the
report to the purchasing officer regarding required further purchases. Moreover, the
purchasing officer shall submit purchase order to the supplier. When the supplier receives the
purchase order, the supplier will deliver the goods to be received by the purchasing officer. The
purchasing officer will pay the supplier and the supplier shall issue a receipt.
PROPOSED USE CASE
DIAGRAM Log IN

Add Product Category

Add New Product

Add Purchase Order

Print Purchase Order
Add Goods Received
Update Flow of Goods
BOOKKEEPER
PURCHASING Search Product
OFFICER
Search Transaction
Update Reports
Add Purchase
Order Summary Report
Print Inventory
Log out

Log in
Add Sales
Log out CASHIER

It shows the interaction of the actors on the inventory system. When there is sale, the
cashier adds the outflow of goods by adding sales to the system. These sales will be reflected
automatically to the bookkeeper’s record. The bookkeeper keeps the entire records of the
whole transactions in the enterprise. He can add product category and new product. He is also
responsible for monitoring and updating the flow of goods by computing the cost of goods sold,
gross profit and ending inventory. He will also print report of the inventory summary for the PO
to analyze future purchases. When a purchase is needed, he will also add and print a purchase
order the approval of the order.