How to: Set Up Thresholds

Replenishment uses Journals to calculate Purchase Order and Transfer Order proposals based on the current stock situation and the demand in the stores or in the warehouse.

To activate Threshold Management in Replenishment Setup

To activate Threshold Management in Replenishment Template

To copy setup data to Replenishment Templates

To set up Threshold Rules

See also

Threshold Rules is a tool to avoid small Transfer Orders or Purchase Orders by setting lower limits for:

• Quantity
• Weight
• Cubage
• Cost Amount
• Sales Amount
• Profit Amount

Furthermore, it is possible to set upper limits for the above fields to incorporate business rules or contractual definitions with Vendors or Transportation companies.

The activation of Thresholds Management can be managed on two levels: Replenishment Setup is the first level and Replenishment Template is the second level. The setup in the Exception Management FastTab on the Replenishment Setup page will be used as the default setup for a new Replenishment Template.

Note: Threshold Rules are not applicable to the BOM Replenishment Journal as it does not calculate Purchase Order and Transfer Order proposals.

To activate Threshold Management in Replenishment Setup

1. Click the icon, enter Replen. Setup and select the relevant link.
2. Activate the Thresholds for Autom. Replen. field on the Exception Management FastTab.

To activate Threshold Management in Replenishment Template

1. Click the icon, enter Replen. Template List, and select the relevant link.
2. Select a Replenishment Template, and click the Edit action.
3. Select the Thresholds for Autom. Replen. check box on the Thresholds FastTab.

All the setup data in the Exception Management FastTab of the Replenishment Setup page can be copied manually to all Replenishment Templates with the Copy Setup Data to Templates action.

Note: Threshold Management is not supported for Replenishment Templates with Template Type set to BOM.

To copy setup data to Replenishment Templates

1. Click the icon, enter Replen. Setup, and select the relevant link.
2. On the Navigate action menu, go to Replenishment Setup, and click the Copy Setup Data to Templates action.

This will copy all the setup data in the Exception Management FastTab to all the Replenishment Templates.

To set up Threshold Rules

1. Open the Threshold Rules page from
   1. the Location Card: click the Navigate action, and then Replenishment - Threshold Rules.
      Note: The Threshold Rules page is only accessible from the Location Card if the location is a warehouse.
   2. Retail Vendor Card: click Navigate - Replenishment - Threshold Rules

2. Click New to create a new Threshold Rule.

Field	Description
Type	This field defines the usage type of the Rule and the available options are: Purchase to Warehouse Purchase to Receiving Location Transfer Redistribution Only Journals with a corresponding usage (defined with the Replenishment Type and Purchase Order Type fields) will consider this Threshold Rule.
Replenishment Template Code	This field defines the Replenishment Template that the Threshold Rule applies to. This field is not applicable to Replenishment Templates with Template Type set to BOM.
Source Type	This field defines the Source Type of the Rule and the available options are: Vendor Location Purchase Journals will consider Rules with Source Type Vendor. Transfer Journals will consider Rules with Source Type Location.
Source No.	This field depends on the Source Type field, and allows to explicitly define Vendors or Locations as Source.
Destination No.	This field defines the Destination of the Rule and can be a: Warehouse location Store location Depending on the Type field, either Warehouse locations or Store locations can be selected.
Start Date and End Date	These fields define the valid date period for the Rule.
Division Code, Item Category Code, Retail Product Code and Item No.	These fields define for which items the Rule is valid. Threshold Management will check, if the Journal holds items as defined in these fields. The Rule will be used only, if at least one item exists in the Journal lines.
Any Item	This field defines if the Threshold Rule applies to individual items in the Journal which fall under the group that the rule is defined for.
Threshold Field	This field defines which Actual Value field shall be compared with the Minimum Value and Maximum Value fields. Available options are: Quantity Weight Cubage Sales Amount Cost Amount Profit Amount Weight and Cubage are calculated from the values from the Item Units of Measure page. Sales Amount and Cost Amount are calculated from the Journal Line quantity and the Unit Price and Last Direct Cost fields from the Item page. Profit Amount is the difference between Sales Amount and Purchase Amount.
Minimum Value and Maximum Value	These fields define the upper and lower limit in the Threshold Rule. An empty field is not considered in the calculation.

Note: The Threshold Rule can be interpreted as a global rule which applies to all Replenishment Journals. When a Journal is calculated, the Threshold Management will go through all existing Rules and check, if the Rule applies to the current Journal. If the Rule is applicable, it will be copied to the Threshold Rule Values table, which is an individual Rule definition for a specific Replenishment Journal. A Rule will not be copied, if:

• Type field in Rule does not match with the Replenishment Type and Purchase Order Type fields in the Journal.
• Template Type field in the Journal is set to BOM.
• Start Date or End Date do not match current Workdate.
• If Item based filters exist in the Rule but the Journal does not contain such items.
• If the Destination No. field in Rule is defined but the Journal does not contain such locations.
• If the Source No. field in Rule is defined (for example a specific Vendor) but the Journal does not contain such a Vendor.

The copy process from Threshold Rule table to Threshold Rule Values table is performed whenever a Replenishment Journal is recalculated (via Scheduler or manually).

See also

Transfer and Purchase Thresholds