3. Storeroom basics

18 steps

1. Step 1 of 18
   Item
   A part or material the organization buys, stocks or uses, like a bearing, filter or gallon of oil. The item is the catalog entry; actual stock lives in storerooms.
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2. Step 2 of 18
   Item Master
   The application and catalog where items are defined once for an item set, with description, order and issue units, commodity group and whether they are rotating, lotted and so on.
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3. Step 3 of 18
   Storeroom
   A location of type STOREROOM that holds stock. Each storeroom keeps its own balances, costs, bins and reorder settings for the items it carries.
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4. Step 4 of 18
   Inventory (Inventory Record)
   The record of an item in a specific storeroom, holding the balance, cost, bins and reorder details.
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5. Step 5 of 18
   Bin
   A specific shelf, drawer or spot inside a storeroom where stock is kept.
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6. Step 6 of 18
   Current Balance / Available / Reserved
   Current balance is what is physically on the shelf. Reserved is what is set aside for planned work. Available is roughly what is left for everyone else.
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7. Step 7 of 18
   Issue
   Taking stock out of a storeroom and charging it to a work order, asset, location or GL account.
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8. Step 8 of 18
   Return
   Putting unused stock back into a storeroom and crediting the work order or account it was charged to.
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9. Step 9 of 18
   Transfer
   Moving stock from one storeroom to another, either directly or through shipping and receiving.
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10. Step 10 of 18
    Reorder Point
    The stock level at which Maximo should suggest ordering more.
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11. Step 11 of 18
    Economic Order Quantity (EOQ)
    How much to order each time stock is replenished. Maximo can use a set quantity on the inventory record.
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12. Step 12 of 18
    Safety Stock
    Extra stock kept to protect against delays or demand spikes.
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13. Step 13 of 18
    Reorder (Process)
    Maximo checks storerooms against reorder points and creates purchase requisitions or orders for what needs replenishing, either manually or by cron task.
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14. Step 14 of 18
    Purchase Requisition (PR)
    An internal request to buy something. Once approved, it becomes a purchase order sent to a vendor.
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15. Step 15 of 18
    Purchase Order (PO)
    The official order sent to a vendor to buy items or services. It commits spending and is what receipts and invoices are matched against.
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16. Step 16 of 18
    Receiving
    Recording that ordered goods or services have arrived. Receiving updates stock, work order costs and the PO.
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17. Step 17 of 18
    Physical Count / Cycle Count
    Checking actual stock on the shelf against Maximo's balance and adjusting it. Cycle counting does this in rotation, often more often for high-value or critical items.
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18. Step 18 of 18
    ABC Type
    A classification of inventory by value or importance, where A items are the most valuable and need the closest control.
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