Exception records

These exception records are created during Purchase Administration Month End Processing Report or Purchase Receipt of Inventory Entry. They can be reviewed in Purchase Administration Exception Center.

Inventory Value Change

These exceptions are generated to align order points with customer buying habits. Alignment uses the threshold minimum order point, average sales quantity (ASQ), and five-high adjusters defined in Product Warehouse Product Setup-Ordering and Product Replenishment Setup-Adjusters. If any of these adjusters are used to adjust order point in the Product Administration Month End Processing Report, an inventory value change exception is created. To view these exceptions, set the option in the Inventory Value section in Product Replenishment Setup-Exceptions to Yes.

Changes to inventory value as a result of the order point adjusters can be viewed on the Product Administration Exception Center-Value Change Inquiry. You can view the total inventory value changed by warehouse, by product rank, and by adjuster type. Adjuster type can be threshold minimum, ASQ, or 5-HI. The inquiry lists the total amount difference between the calculated order point [raw order point] in Product Administration Month End Processing Report and the adjuster’s order point. This amount represents the amount by which inventory will increase the next time the PO RRAR is run.

Average Sales Quantity - Max Amount

Products set up to use the average sales quantity (ASQ) adjuster can also have a maximum amount applied to ensure that inventory is not adjusted beyond this limit. The ASQ Maximum Amount is set up in Product Warehouse Product Setup-Ordering or Product Replenishment Setup-Adjusters. An exception is generated when inventory would have been increased beyond this limit using the ASQ calculation. When an exception is created, the ASQ adjuster is not used to override the calculated order point [raw order point] in Product Administration Month End Processing Report and line point [raw line point]. The order point or line point in Product Warehouse Product Setup not updated.

Five-High Sales - Max Amount

Products set up to use the five-high order point adjuster can also have a maximum amount applied to ensure that inventory is not adjusted beyond this limit. The five-high maximum amount is set up in Product Warehouse Product Setup-Ordering or Product Replenishment Setup-Adjusters. An exception is generated when inventory would have been increased beyond this limit using the five-high calculation. When an exception is created, the five-high adjuster is not used to override the calculated order point [raw order point] in Product Administration Month End Processing Report and line point [raw line point]. The order point or line point in Product Warehouse Product Setup not updated.

Threshold Ready to Expire

You can set up a threshold minimum order point for a product with an expiration date in Product Warehouse Product Setup-Ordering. If the order point calculated by the Product Administration Month End Processing Report is less than the threshold minimum, the minimum is used as the order point. When a threshold minimum order point on a product is due to expire within the next month, an exception is created when the Product Administration Month End Processing Report is run with the Merge History? option set to Yes. The minimum threshold expiration date is compared to the current date. If that date is less than 30 days from expiration, the Threshold Ready to Expire exception is created for the product. After the expiration date is past, the exception will no longer be generated. The product will not be frozen.

Threshold With Low Activity

Products with a threshold minimum order point defined in Product Warehouse Product Setup-Ordering that experience total hits less than the minimum number of hits for the predefined number of months, as set up in Product Replenishment Setup-Exceptions, causes an exception to be created by the Product Administration Month End Processing Report. Total hits include sales hits, warehouse transfer hits, and lost business hits.

Frozen Products About to Unfreeze

You can view products in the Product Administration Month End Processing Report that have been previously frozen. If the Should the buyer monitor products that are about to unfreeze? option in Product Replenishment Setup-Exceptions is set to Yes, this exception shows frozen products that are due to be unfrozen within the next month. This exception is generated only one time when the Product Administration Month End Processing Report is run at month end.

Frozen Product With Hits

If a product is frozen permanently with an order point of zero; that is, the Number of Months setting in Product Warehouse Product Setup-Ordering is 99, and the product experiences sales hits over a specified number of months, an exception is created by the Product Administration Month End Processing Report if the Freeze Products option is set to Yes. This also requires that the Frozen Permanently with Zero Order Point/Line Point setting in Product Replenishment Setup-Exceptions is set to Yes. This notifies the buyer that there is demand for this product so they can review the product’s status.

Frozen Product With Hits - DNR

Similar to the Frozen Product With Hits exception, this exception is created when a product with a Do Not Reorder status experiences sales hits over the number of months specified in Product Replenishment Setup-Exceptions. The Frozen and Product Status is Order As Need option in Product Replenishment Setup-Exceptions must also be set to Yes.

Frozen Product With Hits - OAN

Similar to the Frozen Product With Hits exception, this exception is created when a product with an Order as Needed status experiences sales hits over the number of months specified in Product Replenishment Setup-Exceptions. The Frozen and Product Status is Do Not Reorder option in Product Replenishment Setup-Exceptions must also be set to Yes.

Purchase Order Safety Review

This exception is created during Purchase Receipt of Inventory Entry when the safety allowance of a product falls outside of the minimum and maximum limits set up in the Detail Rank Records window in Product Replenishment Setup-Ranking. Additionally, the review of safety occurs only if the Perform Detail Ranking Functionality? option in Product Replenishment Setup-Ranking is Hits.

The safety allowance algorithm uses the safety allowance in Product Warehouse Product Setup-Ordering. Whether you enter a safety allowance percentage, quantity, or days, the system converts it to a quantity and compares it to the sales net available when a product is received in Purchase Receipt of Inventory Entry. The net available is stored in Product Warehouse Product Setup-Costs and does not include the current receipt. If the safety percentage falls outside the minimum and maximum safety percentages, or thresholds, defined in Product Replenishment Setup-Ranking, an exception is created.

The buyer should review these exceptions daily in the Product Administration Exception Center. If you are consistently above 75%, you may have too much safety stock reserved. If you are consistently below 25%, you are close to experiencing a stock out. Exceptions indicate where you could reduce costs associated with safety stock and still keep service levels high.

Purchase Order Lead Time Review

This is the second exception created during Purchase Receipt of Inventory Entry. The exception is created when a product’s lead time falls outside of the minimum and maximum percentage settings in Product Replenishment Setup-Lead Time. If the lead time of the current receipt has changed by more than the minimum or maximum settings, an exception is created. The lead times and receipt dates of the PO lines are shown on the exception, along with the last five receipts. All reviewed receipts must have the Ignore LT option cleared. If an exception is created, then the Ignore LT option is selected on the PO line. The buyer should review these exceptions daily in the Product Administration Exception Center.

Exceptional Usage Corrected

If a product’s usage is greater than the total of the previous user-defined number of usage months, the product is considered as exceptional usage, and the product is frozen. If the Usage Rate(s) to determine the new Usage Rate? option in Product Replenishment Setup-Usage is Yes, and the last month’s usage is greater than the total of the prior number of usage months, the override usage and an override reason will be set by the Product Administration Month End Processing Report. The product will not be frozen, but an exception is created that can be viewed in Product Administration Exception Center. The usage for the current month is overridden by the total average usage for the number of usage months set in Product Replenishment Setup-Usage, multiplied by the usage multiplier also defined on the Usage view. This new usage value will, in turn, affect Product Warehouse Product Setup-Ordering usage.

Low Usage Corrected

If the annual usage for a product is less than the amount entered in Product Replenishment Setup-Usage, the product is experiencing low usage and its order point, line point, and order quantity will be corrected based on the values entered in the Usage Rate - Cost Matrix window. These corrections will be made by the Product Administration Month End Processing Report, but the product will not be frozen. An exception type of Low Usage Override is created that can be viewed in the Product Administration Exception Center.

Fifteen Day Stock Out Corrected

If a product experiences a 15-day stock-out situation when the Product Administration Month End Processing Report is run , the product is normally frozen. Using the Stock Out Usage Control options in Product Replenishment Setup-Usage, you can prevent the product from being frozen and automatically fix the condition. The correction involves updating override usage with last month’s usage. When the stock-out is corrected by theProduct Administration Month End Processing Report, an exception is created, along with an override reason, that can be viewed in the Product Administration Exception Center.

Seasonal Trending - Min/Max Exceeded

The Seasonal Trending Demand parameters in Product Replenishment Setup-Usage, or w parameters in Product Warehouse Product Setup-Ordering, offer an alternative to the standard seasonal trending logic. To apply the Seasonal Trending Demand calculation, the trend percentage must fall within the minimum and maximum percentages defined. If the trend percentage is lower, the percentage is adjusted up to the minimum seasonal percentage. If the percentage is higher, the percentage is adjusted down to the maximum seasonal percentages. If these adjustments are made, an exception record is created by the Product Administration Month End Processing Report. These parameters are applied to products with a Season Begin and Season End date set up in the Seasonality section of Product Warehouse Product Setup-Ordering.

Extended Lead Time Warning

This exception occurs when you run the Product Administration Month End Processing Report with the Use Ext LT on Seas/Forward/Trend Items option set to Yes, and less than 12 months of history is available to calculate usage. The Product Administration Exception Center uses what history is available, but shows the exception warning. Insufficient history may be the case for products whose usage is calculated using a trending percentage and long lead times.