When you add or edit a raw material in our system, you will see several fields that capture important information about the material. This guide explains each field and how the system uses the data.

1. Core Fields

Name

What It Is: The basic material from which a product is made (e.g. raw latex, crude oil, cotton)

Why It Matters: This is the primary identifier for the material in your records. Choose a descriptive name that will be easily recognized in searches and reports.

Code

What It Is: A unique identifier automatically generated or manually entered (e.g., RM-001, RM-002).

Why It Matters: The code helps in uniquely identifying each material. It can be used in queries, reports, and for linking related records in the system.

Category

What It Is: It can be categorized into several types such as Organic, Inorganic, Non-renewable etc.

Why It Matters: Organizing raw materials into categories makes it easier to filter and manage large inventories. It also aids in generating category-based reports.

Unit

What It Is: The standard unit of measurement in which the raw material is purchased or stored (e.g., Kilogram, Litre, Piece).

Why It Matters: This field determines how the raw material is quantified in the system. It is used for all calculations related to purchasing and stock levels.

2. Consumption & Conversion Fields

Consumption Unit

What It Is: The unit in which the raw material is actually used or consumed (e.g., Gram for sugar, Millilitre for oil).

Why It Matters: Often, the unit in which a material is purchased is different from the unit in which it is used. For example, you might buy sugar in kilograms but use it in grams.

Conversion Rate

What It Is: A factor that converts the purchased unit into the consumption unit.

Example: If you purchase sugar in kilograms and use it in grams, then the conversion rate is 1000 (because 1 kilogram = 1000 grams).

Why It Matters: The conversion rate ensures that calculations for cost and usage are accurate. It is used to convert the price per unit (purchase unit) into the price per consumption unit.

Rate per Unit

What It Is: The cost or price of one purchase unit of the raw material.

Example: GHS 10 per Kilogram.

Why It Matters: This is the basis for pricing. Using the conversion rate, the system can calculate the cost per consumption unit, making budgeting and cost analysis more precise.

Rate per Consumption Unit

What It Is: The cost of the raw material when expressed in the consumption unit.

How It Is Calculated:
Rate per Consumption Unit = Rate per Unit / Conversion Rate

Example: If the rate per unit is GHS 10 per Kilogram and the conversion rate is 1000 (1 kg = 1000 g), then the rate per consumption unit would be GHS 0.01 per Gram.

Why It Matters: This field is important for determining costs at the level of usage. It helps in precise cost allocation when raw materials are consumed in production processes.

3. Additional Fields

Consumption Check

What It Is: This optional field may be used to specify if there are any special conditions or methods related to how the raw material is consumed.

Why It Matters: It allows you to note down any checks or processes that must be performed when the material is used, ensuring quality and consistency in production.

Opening Stock

What It Is: The initial quantity of the raw material that is in stock when the record is created.

Why It Matters: Establishing the opening stock is essential for inventory management. It serves as the baseline for tracking stock movements (additions and deductions) over time.

Alert Level

What It Is: A predefined threshold for the raw material quantity.

Why It Matters: When the stock level falls below this alert level, the system can notify you to reorder or review inventory. This helps prevent stockouts and production delays.

Added By

What It Is: The user ID of the person who added or last updated the raw material record.

Why It Matters: This field is useful for tracking changes and ensuring accountability within the system. It is automatically populated based on the authenticated user.

4. How It All Works Together

1. Data Input and Validation:
   • You fill in the required fields (Name, Code, Category, Unit, Rate per Unit, etc.) and any optional fields if necessary.
   • The system validates the input. For example, it checks that the name and code are provided and that numeric fields (like conversion rate) do not exceed specified limits.
2. Data Sanitization:
   • Functions like escape_output() and null_check() are applied to clean the input. This ensures that the data stored is safe and consistent.
3. Data Storage:
   • The sanitized and validated data is stored in the database as a new record or updates an existing one.
4. Calculation and Conversion:
   • The conversion rate is used (either immediately or later in the application) to compute related values such as the rate per consumption unit. This ensures that the pricing and usage details reflect the true cost per unit of consumption.
5. User Accountability:
   • The system logs the user who made the changes (via the added_by field), ensuring that every update can be traced back for accountability.
6. Alerts and Reporting:
   • The alert level helps in maintaining proper stock levels by triggering notifications when the material's quantity drops below a critical point.
   • Categories and units facilitate detailed reporting and analysis, enabling better decision-making based on inventory and cost data.
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5. Summary

• Conversion Rate: It is crucial for converting the price and quantity between different units. This is especially important when the unit of purchase is different from the unit of consumption.
• Other Fields: Each field on the raw material entry page plays a specific role—from identifying the material and categorizing it, to defining pricing and stock levels. Together, these fields ensure accurate inventory management, cost calculations, and accountability.

By understanding and correctly filling in these fields, you ensure that the system can accurately track raw materials, manage inventory, and calculate costs for production or consumption. This leads to better decision-making and efficient management of your resources.

Note: For further assistance or if you encounter any issues while using the system, please refer to our full documentation or contact support.