Physical Inventory

[Chris Kelleher]

Hi

I would like some advise on the handling of WO backflush between the
period after PI & before PI update.

Eg Inventory Freeze - 10/1

Loc Qty Status
R1 100 Picked
R2 200 Avail

PI counted - 10/1

Loc Qty
R1 0
R2 300

Before PI update, if I allow my WO backflush to continue, it will cause
negative inventory at Loc R1 after PI update (eg on 10/14) with
effective date backdate to 10/1.

How should I handle this situation as the PI update requires about 2
weeks for management approval & I cannot hold all my transactions.

please help

calvin

 

[Chris Kelleher]

Calvin,

First off, what's the wrong number? The freeze number, the count number,
or the backflush number?

PI takes a snapshot of inventory so it can create a change transaction as
necessary. In your case, you will see two transactions -- a reduction in
R1 of 100 pieces, and an increase in R2 of 100 pieces. This will be the
case whenever you perform the updates -- whether that's the day of the PI,
two weeks later, or two years later.

It sounds like you're saying that the freeze and the count disagree, and
the reason is this backflush. So if you enter the backflush (to correct
the problem) and then you update the PI, the problem will again be
corrected, causing a negative. This would happen, and it would not be
good. You'll need to change the PI count to what *should* have been
present when the count was performed -- 100 pieces and 200 pieces.

Sounds messy, but it's the application of a simple principal: no
transactions between the freeze and the count. If there are transactions,
then you need to back them out to get to what the count would have been,
had they not been entered.

The two weeks is inconvenient, but it's not the source of the problem. The
problem lies in transactions taking place after the freeze and before the
count.

Good luck.

Scott
===============================================================
Scott M. Dulecki /* 1998061901 */ +1 616 975 6322
Product Manager scott_dulecki@qad.com
QAD, Inc. http://www.qad.com
1188 East Paris SE Grand Rapids, MI 49546 USA

Next Michigan Progress Users Group: 17 November 1999

All opinions are my own, and don't necessarily reflect those of
any other living being.
===============================================================

 

[Chris Kelleher]

Calvin

If any transaction happens after the inventory freeze, then the PI count
should include those qtys , the update will then calculate the correct qty
in stock after the update.


Regards

Pete

 

[Chris Kelleher]

Calvin,

I would advise you not to wait to do the physical update. If you are going to go
through the pains of doing a physical inventory you must trust that you did an
accurate job of counting. I am sure that you performed audits on the items that
make up the greater dollar value of your inventory. If you set up a separate
account for your physical adjustments then your shrink or gain will be in this
account (excluding WIP). Any corrections that you find that you need to make to
the physical inventory after the update can be forced to this account through
positive or negative unplanned issues.


Richard Sharpless