Replenishment
Bookmarks:
Create a purchase order from a sales order
This function makes it simple to determine which product items need to be restocked. By default, it displays only the items that need to be filled, but you can view all items by selecting the filter option.
Here are the descriptions of the columns:
- Sku
- Description
- Unit
- Quantity to purchase: a calculated value is displayed, you can enter a different value to override this figure. See calculation method below.
- Inventory on hand
- Free inventory: a calculated inventory value = Inventory on hand - Reserved + Incoming
- Reserved: the total value of the un-fulfilled sales orders that are confirmed or part-fulfilled
- Incoming: the total value of the un-received purchase orders, note, this figure includes orders with statuses of draft, confirmed and part-fulfilled
- Trigger min qty: a minimum stock holding value for a Sku, it is used to determine when and how much as a minimum to re-order.
- Optimal order qty: some items have an optimal order qty, it is the packaged quantity that the supplier is recommended to purchase. For example, the supplier may ship item A in a 20-cartoon carton.As a result, the purchase quantity is a multiple of the cartoon quantity.
Calculation method
The method is straight forward:
Quantity to purchase = Reserved - (Inventory on hand + Incoming)
If the result is less than the trigger min qty (if present), then it equals to the trigger min qty
If an Optimal order qty is present, then it equals to the multiple of the Optimal order qty
Watch the quick video below on how to do it:
