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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Item consumption using...
Microsoft Dynamics AX (Archived)
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Item consumption using transfer order (manual replenishment concept?)

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Posted on by Arkadia2 427

Hello,

We are using AX 2012 R3 CU8.

First of all, I am not sure what is the appropriate terminology to describe what we would like to attempt in an ideal scenario. I’ve read the terms “manual replenishment” which seems to be similar.

We would like to use transfer order to pull out consumable products from the head office warehouse to service centers. But when receiving is done to the service centers, the items must be added in inventory, they must simply be deducted from the main warehouse quantity. MRP is used to check min/max quantity replenishment at the main warehouse only.

Consumable products are miscellaneous items like syringes, sterilizing items, health brochures., etc.

 

Currently, we are using an inventory journal to deduct quantities but it is a bit cumbersome to use. Hard to follow which service center have items coming to their location; shipment follow-up is not possible. Also an order transfer has a better plan of steps to follow (picking, shipping, receiving).

 

I can figure out some intensive programming to create an inventory journal when an order transfer is received by adding a new flag to the order table (such as “consumption transfer”). But before going into this – and also I would really prefer it! I’d like to know if there’s better way to handle a similar scenario.

Thanks in advance for any suggestions or pointers,

Eric

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  • Suggested answer
    Weaveriski Profile Picture
    Weaveriski 23,616 Moderator on at
    RE: Item consumption using transfer order (manual replenishment concept?)

    Do you mean "must not be added to inventory" when it reaches the service centre? Basically you are using MRP to push the stock from the main warehouse to the service centres. What is your reason for immediate consumption when you want tracking up until that point, why not periodically write these off with the inventory/counting journal? Just run the stock count on the service centre location and set the quantity to 0 - less cumbersome.

  • Arkadia2 Profile Picture
    Arkadia2 427 on at
    RE: Item consumption using transfer order (manual replenishment concept?)

    Hello Steven,

    Yes, when it reaches the service centre, the quantity shipped must NOT be added to the available quantity of this service centre.  The quantity must be consumed at the main warehouse. MRP will not be used to push the stock to the service centres, only to check the quantity at the main warehouse.

    Currently, for this company, there are no locations defined in AX for the service center. Manually entered inventory journals are used to deduct quantity in the main warehouse; it is a process which the procurement staff would like to replace with transfer order because it is offering a more intuitive interface to move stock around.

    Accordingly, they will create locations for each service center, in order to use a transfer order approach instead of working with the inventory journal.

    Your suggestion seems to be what we are doing currently; or I'm misunderstanding your post. Sorry if is the latter.

    If I can try to rephrase the scenario they are looking for:

    1) service center communicates the quantity they need

    2) transfer order is created, picked, shipped from the main warehouse and received in a service center

    3) quantities are deducted from the main warehouse and *magically* not incremented in the service center

    Basically, its the third step which we don't know how it can be handle automatically without doing some programming to create inventory journals to deduct quantities (or set the quantity to 0 as you are writing). I was hoping there was an interface/approach with a more intuitive interface like the transfer order screen which does the same as an inventory journal.

    Thanks for your reply

  • Verified answer
    Weaveriski Profile Picture
    Weaveriski 23,616 Moderator on at
    RE: Item consumption using transfer order (manual replenishment concept?)

    Hi Eric

    Your point 3) is a customisation, you would need to generate an inventory journal to write off the stock after the transfer order is received. Your transfer order is the control mechanism as you state, but once it is shipped (this also removes the stock at the main warehouse) it must be received. You could run a count journal and write it off as standard. What must happen is the stock is received into the service centre (which you do write happens) if using the transfer order - the question is why you do not want it there, and what downside having it there and written off periodically would cause. Alternatively write a customisation to automate the write off at the receipt of a transfer order at a service centre.

  • Arkadia2 Profile Picture
    Arkadia2 427 on at
    RE: Item consumption using transfer order (manual replenishment concept?)

    Thanks Steven,

    To answer your question as "why you do not want it there", I believe they don't want to run regular inventory counts in the service centre. The consumable are ordered by the medical staff on a need-basis.

    I guess its going to be the customization path :)

  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,888 on at
    RE: Item consumption using transfer order (manual replenishment concept?)

    Why not transfer as inventory to the service centre and then expense it off as an issue at the same time as you receive it. You could just receive it all to one location and then do a once month write off at month end.

    Whether you manually  transfer on request or via mrp min max by warehouse replenishment is your choice.

    No reason either why you cannot also change your posting profile to expense the item on receipt at the main warehouse and then just track the item physically without cost.

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