Thresholds management

Automatic Replenishment covers all steps from calculating Out-of-Stock, current inventory and demand, journals, thresholds until finally creating the Purchase Orders, Transfer Orders or Sales Orders.

Thresholds Management reuses pre-calculated Replenishment Journals and checks if business rules (like minimum order quantity for a vendor) are violated.
If an exception occurs, there are 2 scenarios:

• Thresholds Management blocks the document creation
  In that case the user needs to manually adjust or approve the Journal before being able to create documents from the Journal
• Thresholds Management raises a warning
  In that case the user can see the exception but is still able to create documents

Thresholds Management is an optional step in the Automatic Calculation process. It can be activated and deactivated for an entire Business Central company or for specific Replenishment Templates. It is best practice, if Thresholds Management is needed for one specific vendor only, to create a separate Journal and Template for this vendor and to activate Thresholds Management for this Template only.

Threshold Management calculates and displays the Actual Values for

• Quantity
• Weight
• Cubage
• Cost amount
• Sales amount
• Profit amount

in the Replenishment Journal Detail Lines and totals the values to Replenishment Journal Lines and the whole Replenishment Journal. The Threshold Rules are upper and lower limits which create exceptions if the limits are exceeded.

More information about Thresholds Management can be found here: Transfer and Purchase Thresholds

 

Goal

The goals of this step:

• Get an understanding about retailer's business rules for Automatic Replenishment
• Set up Thresholds Management in LS Central

 

Key questions / considerations

Threshold values

• Are business rules used for Transfer Orders and Purchase Orders?
• On which level are the Thresholds defined?
  • Replen. Template
  • Vendor
  • Source location (Warehouse)
  • Destination location (Store)
  • Date periods
  • Item groups
    • Division
    • Item Category
    • Product Group
    • Item

• What Treshold values are used?
  • Quantity
  • Weight
  • Cubage
  • Cost amount
  • Sales amount
  • Profit amount

Process

• Should a Threshold exception just warn or block the document creation?
  • If block:
    • Should a Thresholds exception block the entire Journal?
      • If not, enable Partial Doc. Creation

 

Output

Threshold Rules (see example here)

(Click to enlarge)

 

Setup considerations

Replenishment Setup

The Thresholds calculation can be activated in the Replen. Setup page, FastTab Exception Management.



When a Template is created, the settings from the Replen. Setup will be copied to the new Template. The action Copy Setup Data to Templates on the Replen. Setup page overwrites the settings in all existing Templates with the current settings in the Replen. Setup.
More information about the setup can be found here: How to: Set Up Thresholds

Replenishment Journals - thresholds fields visibility

The visibility of the Thresholds fields can be controlled in the Replen. Setup page and in the Template pages.



More information about the setup can be found here: How to: Set Up Threshold Fields Visibility

Threshold Rules

The rules for Thresholds Management are defined in the Thresholds Rules page.



More information about the setup can be found here: How to: Set Up Thresholds

Thresholds process

Thresholds are calculated, when the field Thresholds for Autom. Replen. is activated on the Replen. Template.

Threshold exceptions will be seen as warning only, when the field Thresholds Block Doc. Creation on the Replen. Template is set to False - if set to True, an exception will not allow to create documents until the exceptions are resolved or approved.
More information about resolving expections can be found here: How to: Resolve Exceptions in Transfer and Purchase Journal

When the field Thresholds Partial Doc. Create is enabled on the Replen. Template, an exception will block only the items in the scope of the violated Threshold Rule. All other items will be considered for the document creation.

Example:
Replen. Purchase Journal holds 3 items after calculation: A and B with 10 pieces and C with 7 pcs.
Threshold rule for items A, B and C: 10 pcs. are needed to create a Purchase Order

System checks Thresholds Block Doc. Creation

• If Inactive
  • System will show exception but allow document creation for items A, B, and C
• If Active
  • System checks Thresholds Partial Doc. Create
    • If Active
      • System will show exception but allow document creation for items A and B but not for C
    • If Inactive
      • System will show exception and does not allow document creation for A, B and C (the entire Journal)

Find more information here:

• Transfer and Purchase Thresholds
• Threshold Rules in Transfer and Purchase Journal
• How to Set Up Thresholds
• How to Resolve Exceptions in Transfer & Purchase Journal

 

Go back to:

Automatic Replenishment

Processes

Overview