Replenishment Through a Distribution Center: Process Activity

The following activity demonstrates how to prepare and perform the replenishment of goods through a distribution center.

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 at the SweetLife Fruits & Jams company. The SweetLife Store branch regularly receives small orders for mangoes from a customer. To fill your stock, you order mangoes from the Glory Fruit Case vendor by using the replenishment functionality.

In the SweetLife company, fruits are delivered to the Wholesale warehouse, which serves as a distribution center for the other warehouses. To make sure that mangoes are allocated for the Retail warehouse, you will purchase mangoes to the Wholesale warehouse and then transfer the fruits from the Wholesale warehouse to the Retail warehouse.

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 Warehouses (IN204000) form, the WHOLESALE and RETAIL warehouses have been created.
  • On the Stock Items (IN202500) form, the MANGOES stock item has been created.
  • On the Order Types (SO201000) form, the Transfer (TR) order type, which can be selected on the Sales Orders (SO301000) form for a transfer order, has been created.

Process Overview

In this activity, you will do the following:

  1. On the Stock Items (IN202500) form, specify the economic order quantity for the MANGOES stock item.
  2. On the Item Warehouse Details (IN204500) form, review the replenishment settings of the MANGOES stock item in the RETAIL warehouse.
  3. Prepare replenishment for the needed stock items in the RETAIL warehouse on the Prepare Replenishment (IN508000) form.
  4. Prepare a transfer order on the Create Transfer Orders (SO509000) form.
  5. Prepare a purchase order for the vendor to the WHOLESALE warehouse on the Create Purchase Orders (PO505000) form. On the Purchase Orders (PO301000) form, you will take it off hold.
  6. Prepare and process the purchase receipt for the items in the WHOLESALE warehouse on the Purchase Receipts (PO302000) form; the corresponding inventory receipt is automatically created on the Receipts (IN301000) form and released.
  7. Prepare and process the sales order on the Sales Orders (SO301000) form and the shipment on the Shipments (SO302000) form to ship items from the WHOLESALE warehouse to the RETAIL warehouse.
  8. Prepare and process the purchase receipt for the items in the RETAIL warehouse on the Purchase Receipts form; the corresponding inventory receipt is automatically created on the Receipts form and released.

System Preparation

Before you start preparing and performing replenishment through a distribution center, 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, make sure the SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Specifying the Economic Order Quantity for the Stock Item

To specify the economic order quantity for the MANGOES stock item, do the following:

  1. Open the MANGOES stock item on the Stock Items (IN202500) form.
  2. Go to the Vendors tab. Notice that there is one row for the GLORYFRUIT vendor.
  3. In the EOQ column, type 20. You will use the economic order quantity as the fixed quantity. SweetLife's warehouse specialists have determined this quantity of the MANGOES item by estimating the cost of ordering mangoes from the Glory Fruit Case vendor.
  4. On the form toolbar, click Save.

For the MANGOES stock item, the Fixed Reorder Quantity replenishment method is used in the RETAIL warehouse. Based on this quantity, a request for replenishment for the same quantity can be generated on the Prepare Replenishment (IN508000) form.

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

To review the replenishment settings of the MANGOES stock item in the RETAIL warehouse, do the following:

  1. Open the Item Warehouse Details (IN204500) form.
  2. In the Summary area, specify the following settings:
    • Inventory ID: MANGOES
    • Warehouse: RETAIL
  3. On the Inventory Planning tab, make sure that the following settings are specified:
    • Override Replenishment Settings: Selected
    • Seasonality: NONE
    • Replenishment Source: Purchase
    • Replenishment Method: Fixed Reorder Qty
    • Replenishment Warehouse: WHOLESALE
    • Reorder Point: 10
    • EOQ: 20

    With these settings, you replenish mangoes in the RETAIL warehouse by purchasing the item through the WHOLESALE warehouse. The MANGOES item appears in the list of items for replenishment on the Prepare Replenishment (IN508000) form when you have 10 pounds (which is the base unit of measure for this item) or less of the item in the available stock. Also, 20 pounds of mangoes will be used as the fixed quantity for the calculation of replenishment parameters in the RETAIL warehouse.

Step 3: Preparing the Replenishment

To prepare the replenishment for mangoes in the RETAIL warehouse, do the following:

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

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

    The table shows the items pending replenishment in the SweetLife Head Office and Wholesale Center branch, to which you are signed in.

  3. In the row for the MANGOES stock item, review the following settings:
    • Qty. to Process: 20
    • Replenishment Source: Purchase
    • Source Warehouse (replenishment warehouse): WHOLESALE
    • Preferred Vendor ID: GLORYFRUIT
  4. In this row, select the check box in the unlabeled column.
  5. On the form toolbar, click Process. The Processing dialog box opens, showing the progress and then the results of the processing. The system generates a replenishment request for the MANGOES stock item and adds the request to the Create Transfer Orders (SO509000) form.
  6. Click Close to close the Processing dialog box.

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

Now you can create a transfer order.

Step 4: Creating the Transfer Order

To create a transfer order for the 20 pounds of mangoes, do the following:

  1. On the Create Transfer Orders (SO509000) form, in the row with the IN Replanned plan type and the MANGOES stock item, select the check box in the unlabeled column.
  2. On the form toolbar, click Process.

    The system creates a transfer order for 20 pounds of mangoes and opens it on the Sales Orders (SO301000) form. Notice that the status of the order is Open. In the table footer, you can see that the On Hand quantity of mangoes is 0. This means that you cannot ship mangoes from the WHOLESALE warehouse yet because the item is not in stock and needs to be purchased.

  3. On the Details tab, for the MANGOES line, make sure that the Mark for PO check box is selected. This means that the order line is marked for purchasing.

Step 5: Creating the Purchase Order

To create the purchase order to purchase mangoes from the Glory Fruit Case vendor, do the following:

  1. While you are still viewing the transfer order on the Sales Orders (SO301000) form, click Create Purchase Order on the More menu, under Replenishment.
  2. On the Create Purchase Orders (PO505000) form, which opens, in the row with the SO to Purchase plan type and the MANGOES stock item, select the check box in the unlabeled column.
  3. On the form toolbar, click Process.

    The system creates a purchase order for 20 pounds of mangoes and opens it on the Purchase Orders (PO301000) form. Notice that the status of the order is On Hold.

  4. On the form toolbar, click Remove Hold. The system changes the status of the purchase order to Open.

Suppose that you now print the purchase order and send it to the Glory Fruit Case vendor by mail.

Step 6: Receiving the Stock Items from the Vendor

Suppose that the Glory Fruit Case vendor has delivered the mangoes to the Wholesale warehouse. To prepare the documents to reflect the receipt of the mangoes, do the following:

  1. While you are still viewing the purchase order with 20 pounds of mangoes on the Purchase Orders (PO301000) form, click Enter PO Receipt on the form toolbar. The system opens the Purchase Receipts (PO302000) form with the new receipt. The receipt has the Balanced status and the data copied from the linked purchase order.
  2. On the form toolbar, click Release. The system creates and releases the purchase receipt. On the Other tab, in the IN Ref. Nbr. box, 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.
  3. Open the Inventory Summary (IN401000) form.
  4. In the Selection area, specify the following settings:
    1. Inventory ID: MANGOES
    2. Warehouse: WHOLESALE

    In the On Hand column, notice that the quantity of 20, representing the 20 pounds of mangoes that you have received. In the SO Allocated column, notice that 20 is displayed, which means that this quantity is allocated for the sales order of the Transfer type to the RETAIL warehouse.

The mangoes are ready for shipment to the RETAIL warehouse.

Step 7: Shipping the Stock Items from the Distribution Center

To prepare the documents for shipping the mangoes from the WHOLESALE warehouse to the RETAIL warehouse, do the following:

  1. On the Sales Orders (SO301000) form, open the transfer order for the 20 pounds of mangoes. You prepared this transfer order in Step 4 of this activity to transfer the purchased fruits from the WHOLESALE warehouse to the RETAIL warehouse.
  2. On the form toolbar, click Create Shipment.
  3. In the Specify Shipment Parameters dialog box, which opens, make sure that the 1/30/2024 date and the WHOLESALE source warehouse are specified, and click OK. The system closes the dialog box, creates the related shipment of the Transfer type, and opens it on the Shipments (SO302000) form.
  4. On the form toolbar, click Confirm Shipment.
  5. To update the inventory of the WHOLESALE warehouse and issue the items from the WHOLESALE warehouse, on the form toolbar, click Update IN. The system issues the mangoes from the WHOLESALE warehouse and changes the status of the shipment to Completed. On the Orders tab, in the Inventory Ref. Nbr. column, you can view the reference number of the created transfer order; if needed, you could also click the reference number link to view the transfer order on the Sales Orders form.

Step 8: Receiving the Stock Items in the Warehouse

Suppose that the RETAIL warehouse receives the mangoes. To update the stock, do the following:

  1. On the Purchase Receipts (PO302000) form, add a new record.
  2. In the Summary area, specify the following settings:
    • Type: Transfer Receipt
    • Warehouse: RETAIL
  3. On the Details tab, do the following:
    1. On the table toolbar, click Add Transfer.
    2. In the Add Transfer Order dialog box, which opens, select the check box in the unlabeled column of the only row, which is for the transfer that you have processed earlier in this activity.
    3. Click Add & Close to add the line with the stock item to be received to the transfer receipt.
  4. On the form toolbar, click Release. The system releases the transfer receipt and creates and releases the related inventory receipt. On the Other tab, in the IN Ref. Nbr. box, you can view the reference number of the created inventory receipt; if needed, you could also click the reference number link to view the inventory receipt on the Receipts (IN301000) form.
  5. Open the Inventory Summary (IN401000) form.
  6. In the Selection area, specify the following settings:
    1. Inventory ID: MANGOES
    2. Warehouse: RETAIL

    Notice that in the On Hand column, the quantity is 20, as shown in the following screenshot.

    Figure 1. The stock item received in the RETAIL 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.

Now the 20 pounds of mangoes are available for sale in the RETAIL warehouse.