Chapter I

INTRODUCTION

1.1 Project Context

Inventory systems are all about managing cash. Inventory systems contain detailed records of the
products, quantities and stock locations of the company's assets. The primary purpose of an inventory system is
to keep an accurate record of stockroom supplies. The reasons to maintain accurate inventory records include
financial accounting, customer order fulfillment, stock replenishment and the ability to locate specific items. [1]

Sales and Inventory system is an effective way of monitoring and tracking different products and materials
that are transferred in and out of business. It is also vital for a business to monitor all the transactions, events or
movements of goods in order to keep an account of all their stocks and other transactions.

When a business carries more inventory than it can sell in the short term, it loses money on warehousing
and other costs. When a business carries too little inventory to meet demand, it can lose customers who do not
want to wait for the product to come in. The purpose of a sales and inventory system is to make sure the
company always has the right amount of inventory.

In line with this, Auto parts is using a record book in listing all daily sales, inventory, account payables
and account receivables. Their way of managing the sales and inventory can commit an error.

Through the system proposal, it will help the chosen agency to have a convenient transaction; it allows
for much higher accuracy in managing their stocks, and lessen the difficulty in handling their manual records.