Re: Setting up an Inventory Discrepancies Whse

Be careful in how you transfer inventory across facilities.

We have facilities that do manufacturing that have cost buckets for labor,
overhead, material content, other stuff.

We have facilities that are distribution only, they receive inventory from
outside vendors, non-BPCS divisions of same conglomerate, send that product
to our customers, some of this is drop-ship. These items are supposed to
have material content cost only.

Sometimes delivery to distribution facility is delayed, so we manufacture
enough of that part to meet schedule. If we transfer item from
manufacturing facility to distribution facility, where the customer order is
located, using "T" transfer transaction, all cost buckets in the "from"
facility get copied to the "to" facility, where the "to" facility did not
previously have labor & overhead buckets. This messes up cost in "to"
facility.

Moral: If you have different cost structures for same item#s in different
facilities, do not use "T" transaction to get inventory across them.

The reason codes also show up in General Ledger, if you send transactions
detail, not summary. We use Journals that are like the transaction codes
... for example "U" receiving to "UP" journal, which tells General Ledger
what vendor, item, PO. Same principle "B" shipping to "SH" journal whose
data to GL includes customer. We have a modified GL report that adds name
of vendor, customer of transactions there.

The auditors love seeing in the GL how much $ we spending on which vendor
for what reason, and cash flow by customer.

We could also do reason codes, most of ours are for adjustments, but we
already have lists of inventory transactions by type and reason code. In
addition to lots of reason codes, we've added transaction effects to make it
easier to track returns, samples, inter-company, corrections to physical
inventory, other scenarios.

-
Al Mac

-----Original Message-----
From: bpcs-l-bounces+macwheel99=wowway.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+macwheel99=wowway.com@xxxxxxxxxxxx] On Behalf Of
DeeDee Virgei
Sent: Friday, August 21, 2009 8:49 AM
To: BPCS ERP System
Subject: Re: [BPCS-L] Setting up an Inventory Discrepancies Whse

Thx Art!!

This is exactly what I was looking for, i.e., knowing that others have setup
such warehouses.

And you bring up a great point about the cost, which I forgot to take into
consideration ~someone at my company suggested putting this whse in a new
facility, but we would then have to cost that facility. Right now I have two
facilities, one that includes all Mfg (MRP) whses and another that includes
all other whses. We copy our cost into these facilities nightly...

Having my two facilities setup this way has a similar impact to using the
non-netable and non-allocatable flags...

I'm curious if you have more than one facility under BPCS? If you have a
quick moment to answer...

The reason codes are also a good point. I don't take advantage of those,
like we should...

Thank you again.

Best Regards,

DeeDee Virgei
Project Leader

Nelson Stud Welding, Inc.

-----Original Message-----
From: bpcs-l-bounces+deedee.virgei=nelsonstud.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+deedee.virgei=nelsonstud.com@xxxxxxxxxxxx] On Behalf
Of Arthur Shaffer
Sent: Thursday, August 20, 2009 6:23 PM
To: BPCS ERP System
Subject: Re: [BPCS-L] Setting up an Inventory Discrepancies Whse

DeeDee
I have set up an accounting warehouse when I had the issue that the
accounting would not allow planning to make inventory adjustments before
they would evaluate it and approve it.
I also used the reason code to identify the cause of the adjustment (Cycle
Count, missing from shop order pull, found from shop shop pull, etc.) This
warehouse was non-netable and non-allocatable but in the same facility as
the lost/found inventory warehouse so the cost was not effected.
 Art Shaffer, CPIM



----- Original Message ----
From: DeeDee Virgei <DeeDee.Virgei@xxxxxxxxxxxxxx>
To: bpcs-l@xxxxxxxxxxxx
Sent: Thursday, August 20, 2009 1:49:05 PM
Subject: [BPCS-L] Setting up an Inventory Discrepancies Whse

Hi All,

I am looking for some BPCS setting suggestions related to MRP and
Inventory...

We currently have a quality whse setup for material returns or other
inventory needing further inspection.  This whse is in our MRP facility and
usually does not contain much.

The issue I run into is that occasionally our folks transfer inventory
balances into this whse when finding huge inventory discrepancies during
cycle counting; where the questionable inventory may remain in this whse
until accounting can further research.  This sometimes causes big MRP
issues...

I think we should setup a separate warehouse, not under the MRP facility,
for huge inventory discrepancies that need further research.
I would only give our accounting folks access to this whse.   

My  question; have any of you setup a whse like this?  I'm trying to find
out if setting up an inventory discrepancy whse is normal or am I breaking
some big inventory rule...

Any input would be greatly appreciated.

Thx!

Best Regards,

DeeDee Virgei
Project Leader

Nelson Stud Welding, Inc.
--