Inventory at multiple location - Planning Worksheet

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Posted on by Misaq Ferdosian

Hi there!

My Dynamics NAV has 2 companies, Company A and Company B. Company A deals with purchases for their Items/FGs (Purchase Order), while Company B manufactures those Items (Production Order). Company A stores the inventory (Items) at multiple locations (more than two). The Manufacturing Setup Component at Location allows me to select only one Location to perform the MPS on the Planning Worksheet. The MPS for Company A is exported and fed as Production Forecast for Company B.

If MPS for Company A does not consider the inventory at multiple locations (only considers for one location), the MPS would have purchase orders sooner than anticipated, triggering Company B to plan producing the SKUs sooner than planned. What could be the solution here? Someone mentioned about Stock Keeping Units, where Transfers between Inventory would take place. Could anyone elaborate how that functions? Is there any other way method to look into as well?

P.S no Stock Keeping Unit has been set up for Company A, just Item Cards without Stock Keeping Units.

Cheers!

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Community Member Microsoft Employee on at

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RE: Inventory at multiple location - Planning Worksheet

Misaq,

Yes, setting up SKU (Stockkeeping Units) will fulfill the requirement you have laid out. You will keep the Manufacturing Setup/Default Components at Location = Location 1. On each SKU you will setup the Replenishment System = Transfer for Location 1, since the fulfillment of the Items comes from Location 2 or direct On-hand receipt. Location 2 will have Purchase or Prod. Order set on that SKU Card.

Hope this helps.

Thanks,

Steve
Misaq Ferdosian on at

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RE: Inventory at multiple location - Planning Worksheet

Hey Steven,

Thank you for the extensive solution, however, I believe my explanation was quite vague. Let's try to ignore Company B for now.

Company A has multiple warehouses (locations set up) where it stores the inventory. The warehouses are geographically separated to better reach out to the customer with our Items.

Company A has the following locations set up:-

Location 1 (Primary) - A location where most of the items are stored (Transfer entries from Location 2) at and dispatched to customers, and will sometimes transfer to Location 2 as (location 2 also sends out the items from there).

Location 2 - A location where it performs purchases and receives the FGs from Company B and stores the items (little amount of inventory is stored here).

A solution was provided to us to set up the Manufacturing Setup - Components at Location to be set as Location 1, as most of the inventory is stored there. Since Location 2 has started to also store some amount of the items, the solution has become invalid.

I want to set up Stock Keeping Units for the Items, for when I run the MPS with Components at Location set as Location 1, it would suggest Transfers from Location 2 (and future locations) to Location 1 (primary location), and then get the correct date for Purchase for the items for Location Code - Location 1.

I can perform the MPS/MRP for Company B as long as I get accurate MPS (Purchase Orders) for Company A.

Cheers!
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Community Member Microsoft Employee on at

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RE: Inventory at multiple location - Planning Worksheet

Hello,

If you have 2 separate legal companies, where Company A buys from Company B and you might be using Intercompany transactions, then Company A, out-of-the-box would not see Company B's On-Hand inventory. Stockkeeping Units (SKU) is a great feature and work perfectly if the Location of Company B was part of Company A. So in Company A my locations might be:

Location = 1 Main Location

Location = 2 Company A location 2

Location = 3 Company A location B

Then you can setup SKU processing whereby Location 1 and 2 can be fulfilled by Location 3 who manufactures all the Items. On an SKU Card you can setup Replenishment System = Transfer. So on Location 1 and 2 you can set an Item to Transfer and the Transfer-from Code = Location 3.

However, since Company B is a separate Company in NAV and will not see nor take into account the sister companies inventory, Company B, MRP/MPS will create Action Message only related to the Demand and Supply in Company A's locations. You might consider thinking outside the box. Maybe you ask your Partner to create a Table called Company B Inventory On-Hand. The Inventory of Company B is auto-populated every day via a Job Queue/Web Service. On the Planning Worksheet, you can add a column called Company B's On-Hand inventory to see when making planning decisions.

Just a thought.

Hope this helps.

Steve