Replenishment Through Purchases: Process Activity

The following activity demonstrates how to prepare and perform a replenishment by purchasing the required quantity of goods from a vendor.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that you are Matt Parker, a purchasing manager of the SweetLife Fruits & Jams company. As part of your everyday routine, you buy fruits, including kiwis, in the SweetLife Head Office and Wholesale Center branch and refill stock. This branch orders fruit directly from vendors. It is time to buy kiwis when you have 50 pounds or less of the item in the available stock. You need to specify replenishment settings for the item and replenish the item in the Wholesale warehouse.

You replenish kiwis in the WHOLESALE warehouse by purchasing the stock item from a vendor. The KIWIS stock item appears in the list of items for replenishment on the Prepare Replenishment (IN508000) form when you have 50 pounds (which is the base unit of measure for this item) or less of the item in the available stock.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, the following features have been enabled:
    • Multiple Warehouses
    • Inventory Replenishment
  • On the Replenishment Classes (IN208800) form, the PURCHASE replenishment class has been created.
  • On the Warehouses (IN204000) form, the WHOLESALE warehouse has been created.
  • On the Stock Items (IN202500) form, the KIWIS stock item has been created.

Process Overview

In this activity, you will do the following:

  1. On the Stock Items (IN202500) form, specify the replenishment and vendor settings of the KIWIS stock item.
  2. On the Item Warehouse Details (IN204500) form, review the replenishment settings of the KIWIS stock item in the WHOLESALE warehouse.
  3. On the Prepare Replenishment (IN508000) form, prepare and process the stock items that require replenishment.
  4. On the Create Purchase Orders (PO505000) form, prepare a purchase order for the vendor. On the Purchase Orders (PO301000) form, you will take it off hold and send it to the vendor.
  5. On the Purchase Receipts (PO302000) form, prepare and process the purchase receipt for the items; the corresponding inventory receipt is automatically created on the Receipts (IN301000) form and released.

System Preparation

Before you start preparing and performing replenishment through purchases, you should do the following:

  1. Launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You should sign in as purchasing manager Matt Parker with the parker username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button, and select 1/30/2024 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.
  3. On the Company and Branch Selection menu, in the top pane of the MYOB Acumatica screen, select the SweetLife Head Office and Wholesale Center branch.

Step 1: Specifying the Replenishment and Vendor Settings of the Stock Item

To specify the replenishment and vendor settings of the KIWIS stock item, do the following:

  1. Open the KIWIS stock item on the Stock Items (IN202500) form.
  2. Go the Vendors tab. Notice that there is one row for the ALLFRUITS vendor.
  3. In the Lot Size column, type 15.
  4. On the Inventory Planning tab, in the row that has Purchase in the Source column, specify the following settings:
    • Reorder Point: 50
    • Max Qty.: 140
  5. On the form toolbar, click Save.

Step 2: Reviewing the Replenishment Settings of the Item-Warehouse Pair

To review the replenishment settings of the KIWIS stock item in the WHOLESALE warehouse, do the following:

  1. Open the Item Warehouse Details (IN204500) form.
  2. In the Summary area, specify the following settings:
    • Inventory ID: KIWIS
    • Warehouse: WHOLESALE
  3. On the Inventory Planning tab, make sure that the following settings have been specified:
    • Override Replenishment Settings: Cleared
    • Seasonality: NONE
    • Replenishment Source: Purchase
    • Replenishment Method: Min./Max.
    • Replenishment Warehouse: Not selected
    • Reorder Point: 50
    • Max Qty.: 140

    With these settings, you replenish kiwis in the WHOLESALE warehouse by purchasing the stock item from a vendor. The KIWIS stock item appears in the list of items for replenishment on the Prepare Replenishment (IN508000) form when you have 50 pounds (which is the base unit of measure for this item) or less of the item in the available stock. The Max Qty. value is used for the calculation of replenishment parameters in the WHOLESALE warehouse. For details, see Configuration of Replenishment: Replenishment Methods.

Step 3: Preparing the Replenishment

Suppose that as part of your everyday routine, you need to check whether any stock items in the SweetLife Head Office and Wholesale Center branch require replenishment; if so, you need to process them. Do the following:

  1. Open the Prepare Replenishment (IN508000) form.
  2. In the Selection area, specify the following settings:
    • Warehouse: WHOLESALE
    • Purchase Date: 1/30/2024
    • Me: Cleared
    • Only Suggested Items: Selected

      With this setting, only items that require replenishment are displayed in the table.

    The table shows the items pending replenishment in the SweetLife Head Office and Wholesale Center branch.

  3. In the row for the KIWIS stock item, make sure that the following settings are specified:
    • Replenishment Source: Purchase
    • Preferred Vendor ID: ALLFRUITS
  4. In the Qty. to Process column of this row, notice that 150 is specified. On the Vendors tab of the Stock Items (IN202500) form, the ALLFRUITS vendor's lot size is 15, so the system has increased the quantity to be a multiple of 15.
  5. In this row, select the check box in the unlabeled column.
  6. On the form toolbar, click Process. The Processing dialog box opens, showing the progress and then the results of the processing. The system generates the replenishment request for the purchase, which consists of the KIWIS item, and adds the request to the Create Purchase Orders (PO505000) form.
  7. Click Close to close the Processing dialog box.

    Notice that the row for the KIWIS stock item is no longer displayed in the table.

Now you can create a purchase order for the 150 pounds of kiwis.

Step 4: Creating the Purchase Order

To create the purchase order for the All Fruits Mall vendor, do the following:

  1. On the Create Purchase Orders (PO505000) form, in the row with the IN Replanned plan type and the KIWIS stock item, select the check box in the unlabeled column.
  2. On the form toolbar, click Process.

    The system creates a purchase order for 150 pounds of kiwis for the ALLFRUITS vendor and opens the order on the Purchase Orders (PO301000) form.

  3. On the form toolbar, click Remove Hold. The system saves the purchase order and changes its status to Open.

    Suppose that you now send the purchase order to the All Fruits Mall vendor by email.

  4. Open the Inventory Summary (IN401000) form.
  5. In the Selection area, specify the following settings:
    • Inventory ID: KIWIS
    • Warehouse: WHOLESALE

    Notice that in the On Hand column, the quantity is zero.

Step 5: Receiving the Stock Items from the Vendor

Suppose that the All Fruits Mall vendor has delivered kiwis to your WHOLESALE warehouse.

To create the documents that reflect the receipt of the purchased item, do the following:

  1. On the Purchase Orders (PO301000) form, open the purchase order with 150 pounds of kiwis, which you have created in the previous step.
  2. On the form toolbar, click Enter PO Receipt. The system opens the Purchase Receipts (PO302000) form with the new purchase receipt. The receipt has the Balanced status and the data copied from the linked purchase order.
  3. On the form toolbar, click Release. The system creates and releases the inventory receipt. On the Other tab, in the Inventory Ref. Nbr. column, you can view the reference number of the created inventory receipt; you could also click the reference number link to view the inventory receipt on the Receipts (IN301000) form.
  4. Open the Inventory Summary (IN401000) form.
  5. In the Selection area, specify the following settings:
    • Inventory ID: KIWIS
    • Warehouse: WHOLESALE

    In the On Hand column, notice that the quantity is 150, as shown in the following screenshot.

    Figure 1. The stock items received in the WHOLESALE warehouse


    Tip: If you need to change the order of columns in any table, you can drag a column by its header to the new place in the table.

You have replenished kiwis in the WHOLESALE warehouse.