Receiving exceptions
When you set up products in the system, you can designate safety stock, or safety allowance, in Product Warehouse Product Setup-Ordering. Setting the correct safety allowance help to ensure that you do not run out of stock during the period from order to receipt. The amount of time between ordering stock and receiving it is called lead time. This value is also established in Product Warehouse Product Setup for each product and is updated each time the product is received.
Both safety allowance and lead time are critical components in calculating your ordering controls and keeping adequate stock in your warehouse. If either of these values fall outside of acceptable ranges, you may be required to adjust them to maintain appropriate stock levels.
Exception records are created in Purchase Receipt of Inventory Entry when one of these situations occur:
- A product’s safety allowance falls outside of preset minimum and maximum allowances
- A product’s lead time falls outside of minimum and maximum percentage settings
These allowance settings are defined in Product Replenishment Setup. The safety allowance min/max amounts are set up on the Detail Rank Records window, accessed from Ranking, and the lead time min/max percentages are set up in Lead Time.
Safety review
In Purchase Receipt of Inventory Entry, the actual product safety quantity and net available quantities from Purchase Receipt of Inventory Entry are stored on the purchase order line when the receiving update process is performed. If the safety allowance is stored as a percentage or number of days in Product Warehouse Product Setup-Ordering, it is be converted to a quantity. The safety quantity is compared to the minimum and maximum safety percentage allowed. If the purchase order receipt falls outside this range, the specified number of previous receipts are also reviewed. If they also fall outside the range, then a safety review exception is created.
Lead Time review
In Purchase Receipt of Inventory Entry, if Ignore Lead Time on the header or line item is not selected for the product, the lead time of the receipt is compared to the minimum and maximum percentage settings in Product Replenishment Setup-Lead Time. If the lead time for the current receipt changed by more than these amounts, an exception is created. The purchase order, lead times, and receipt dates of the purchase order lines are shown on the exception in newest-to-oldest receipt order for the last five receipts where Ignore Lead Time is not selected. If there are less than five but more than one receipt, then only those receipts are shown. Use the list of previous receipts to compare the lead times. Look for developing trends, or note exceptions. After the exception is generated for the receipt, Ignore Lead Time is selected at the line level. Lead time values are automatically updated by this exception. You must adjustments manually.
Daily review
Review purchase order receiving exceptions daily in the Product Administration Exception Processing Center Detail-Exceptions. Because these exceptions are created in Purchase Receipt of Inventory Entry, it is not necessary to run the Product Administration Month End Processing Report before you review them in the Product Administration Exception Processing Center.