Hi group:

A person in our Purchase Department inquired of me why the EAANU (Estimated Annual Usage) of a particular Inventory Item Number was so high?

I looked at the Item Number's IM (Inventory Management) Transaction History Inquiry Screen and found the the following had occurred during one recent Period:

1. There was only one purchase of the item;

2. All that was purchased was transferred from our company's main warehouse to the main warehouse at our other plant; and

3. At the other plant's main warehouse, approximately 5% of the inventory was used in manufacturing.

The EAANU calculation includes the usages reported by the USEMO field and this field's usages include IW transfers.

In this situation the large IW transfer distorted our main warehouse's EAANU calculation such that our Purchasing Department might end up ordering too much of the Inventory Item Number in the future.

On the other side of the coin, the RW (Interwarehouse Receipt) by the receiving warehouse has no offsetting affect on the USEMO field.

What is the basis for including the IW transfer as an "Issue" in the USEMO field?

I suggest that this should be an option offered by the IM Mapics Infor Questionnaire.

I look forward to your comments on this matter.

Al Gershen
Cost Accountant Lead
ECS Composites
Grants Pass, OR

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