This method applies where the Journal calculates quantity for Transfer Orders or Purchase Orders where the stock level need is arrived at from the stores and not the warehouse itself. If a Replenishment Data record exists of the type stock level for the warehouse, and the journal is creating a purchase order for the warehouse, the system will use the process described in Calculation Process for Stock Levels – warehouse.
Effective Inventory
The system calculates the inventory that is going to be used in the rest of the calculations.
Effective Inventory :=
Inventory
+ Quantity on Purchase Order
- Quantity on Sales Order
+ Quantity in Transfer In
- Quantity in Transfer Out
Reorder Point
If the field Reorder Point is greater than zero and System Suggested Quantity is less than the Reorder Point, the System Suggested Quantity is set to Reorder Point and Decision is set to Brought up to Reorder Point.
Condition:
System Suggested Quantity < Reorder Point
Result:
System Suggested Quantity = Reorder Point
Maximum Inventory
If the field Maximum Inventory is greater than zero and sum of System Suggested Quantity and Effective Inventory does not equal Maximum Inventory, the System Suggested Quantity equals Effective Inventory subtracted from the Maximum Inventory. The field Decision is set to Brought to Maximum Inventory.
Condition:
System Suggested Quantity + Effective Inventory <> (not equal to) Maximum Inventory
Result:
System Suggested Quantity = Maximum Inventory – Effective Inventory.
Cross Dock
If the Journal is to replenish the warehouse with cross docking to the stores and Quantity to Cross Dock is higher than System Suggested Quantity, the Quantity to Cross Dock is set to System Suggested Quantity.
Condition:
Purchase Order for warehouse with cross docking
Quantity to Cross Dock > System Suggested Quantity
Result:
Quantity to Cross Dock = System Suggested Quantity