Product Administration Month End Processing Report ranges and options

Select Yes to merge the history transactions for each product to build usage information and roll the balances.

When you merge history, the processing time is shortened if you run this report weekly. This is helpful for multiple-branch companies because the inventory transactions are read and merged, and the month-end processing does not take as long.

If you merge history on the last day of the month, the Product Warehouse Product Setup Usage Last Merge date is updated with the first day of the next month, not with the run date.

If you decide to freeze products (select Yes to the Freeze Products option), you must also merge. Product Administration Month End Processing Report does not process any products you are freezing unless you also select Yes for the Merge History option.

Select No to prevent the merge and roll but allow the ordering controls to be recalculated during this month. This is beneficial if you perform month end more than once a month, but do not actually want to merge and roll each time. You can also select No or Monthend for the option AIM Exceptions (Y)es,(M)onthEnd,(N)o if you are not running Product Administration Month End Processing Report at monthend, and do not wish to create exceptions.

If you select Yes to the Recalculate Ordering Controls option, the Print Products Unfrozen This Run and Print Detail for Unusual Sales and SO’s options are not applicable.

Select Yes to recalculate product line usage. Product line usage can be used instead of standard usage when the review cycle days calculation is performed. Product line usage is stored on the Product Line Setup record and the Buyer’s Control Center - Acceptance Increase/Decrease window.

Select to recalculate the ordering controls as you process products. If you perform Product Administration Month End Processing Report multiple times per month, you may not want to recalculate the ordering controls each time. Ordering controls can automatically be recalculated if you select to review frozen conditions and create a Product Administration Exception Processing Center file. When you unfreeze a product by adjusting any one of the inventory control files accessed from Product Administration Exception Processing Center, the ordering controls are recalculated. It is not necessary to rerun Product Administration Month End Processing Report to recalculate.

The following exceptions are cleared out and regenerated whenever Product Administration Month End Processing Report is run with the Recalculate Ordering Controls option set to Yes, not just during a month-end run:

Inventory Value Change
Average Sales Quantity - Max Amount
Five-high Sales - Max Amount

The following exceptions may be generated when Recalculate Ordering Controls option is Yes, not just during a month-end run:

Threshold Ready to Expire
Threshold with Low Activity
Frozen Product About to Unfreeze
Frozen Product with Hits
Frozen Product with Hits - Do Not Reorder (DNR)
Frozen Product with Hits - Order as Needed (OAN)
Exceptional Usage Corrected
Low Usage Corrected
Fifteen Day Stockout Corrected
Seasonal Trending - Min/Max Exceeded

Select Yes to review all products that were unfrozen. Products that are frozen become unfrozen if they avoid all the frozen conditions outlined above and the number of months frozen was reduced from 1 to 0.

Product Administration Month End Processing Report automatically includes all products frozen as a result of performing this process. However, there may be additional products that were manually frozen in the past months.

Specify R to review the products that were manually frozen in Product Administration Update Frozen Conditions. All products frozen prior to this Product Administration Month End Processing Report run with activity in the last 30 days are added to the Product Administration Exception Processing Center file. Activity is defined as last invoice date, last receipt date, or last purchase order/warehouse transfer issue date.

Specify P to print products frozen in the past 30 days on the exception report. Frozen products are not included in the Product Administration Exception Processing Center file.

Specify N to ignore products frozen manually.

Products that qualify for unusual sales are those that meet both of the following criteria:

The Low Usage Threshold Amounts option in SA Administrator Options-Products-Replenishment is less than the product cost times usage for the current month.
The Low Usage Threshold Qty in SA Administrator Options-Products-Replenishment is less than the number of units for a particular sale.

Select Yes to print all invoice history transactions for products with an unusual sale (exceptional usage) or a stock out occurring in the month being merged and rolled. You can review what happened to this product during the month being merged to determine why the exception occurred and if it will occur again. Note that, if there are many history transactions to print, this could substantially lengthen this report.

In addition to stock out information, a projected monthly usage amount is included on the report if you run Product Administration Month End Processing Report on the last day of the month. The projected monthly usage is calculated as:

Normal Usage / [(30 - # of Stockout Days)/30]

Example: 50 units / [(30 - 8)/30] = 68

The projected monthly usage tells you what you could have sold if you were not stocked out during the month. Use the projected monthly usage for the override usage on the Product Warehouse Product Setup record.

Products manually frozen by the buyer during this past month are included on the report. Unusual sales are calculated on seasonal items by comparing period 2 with periods 9-13.

The prior period issues and overrides print the first three periods of normal history with the override history directly beneath it. Then the second three periods are under that with their override history following.

Select Yes to calculate maximums for min/max products. The calculation uses the results from the Product Administration Inventory Classification Report, which assigns a class from 1 to 13, for each branch. It is important to generate Product Administration Inventory Classification Report before Product Administration Month End Processing Report. If you select Yes, the individual classes must turn as:

Class 1: 20 times per year
Class 2: 18 times per year
Class 3: 16 times per year
Class 4: 12 times per year
Class 5: 10 times per year
Class 6: 8 times per year
Class 7: 6 times per year
Class 8: 5 times per year
Class 9: 4 times per year
Class 10: 3 times per year
Class 11: 2 times per year
Class 12: 1 time per year

For a class 1 item, the difference between min and max is 1/20th of a year’s supply. For example, if a Class 1 product’s monthly usage is 100, the annual usage is 1200. Dividing the annual usage by 20 gives you the replenishment quantity of 60.

Select No if you decide not to use the max calculation based on turns. All max calculations are done as for Class 13. This means Product Administration Month End Processing Report calculates min and then resets max so that the same gap exists as it did before.

For example, suppose your old min quantity was 5 and your old max quantity was 10. When the new min is calculated, it is 8. The new max maintains the same difference that existed with the old max, and is 13. If the product is a Class 1 product, the new max is:

(Usage Rate x 12) / Turns Per Year

Add the result of the above formula to the order point, or minimum, to arrive at the line point, or maximum.

Select Yes to change products with a frozen reason of "Q" to an Order as Needed status in Product Warehouse Product Setup. This frozen reason (Q) indicates that less than one-half of a unit was sold in a month.

Select Yes to freeze products. If you select Yes, you must also select Yes for the Merge History option. Products that are set as order as needed products are not frozen.

Select No and products are not frozen when this report runs. This allows you to generate this report between month ends without freezing products or anything that would require operator intervention.

Specify a value to use as the maximum percentage of change to usage that is used by this function when it looks back on 24 months of usage. For seasonal products with highly variable usage patterns, you may want to limit fluctuations in your inventory.

Accept the default of 150 percent and any increase in inventory is limited to a maximum of 50 percent above the previous year.

If a trend percentage is applied, that percentage is used unless it falls outside the Upper or Lower Trend Percentage Cap. The trend percentage is set up by selecting Trend % in the Usage Method field in Product Warehouse Product Setup-Ordering.

Specify a minimum percentage of change to limit fluctuations downward.

Accept the default of 50 percent, and any decrease in inventory is limited to 50 percent below the previous year.

Products that are stocked out for 15 consecutive days, or a total of 15 days, will be frozen unless you specify a usage override amount. The frozen reason is Ext stockout. The frozen condition setting in Product Administration Exception Processing Center is Fifteen Day Stock Out.

Specify R to include stock out frozen conditions in the Product Administration Exception Processing Center file.

Specify P to exclude low usage frozen conditions from the Product Administration Exception Processing Center file. Low usage frozen conditions are included on the exception report and must be resolved by accessing the inventory records manually.

Products are frozen if the average usage over the number of months used to calculate usage is less than 1/2 stocking unit per month, and the Freeze Products option is set to Yes. This includes new products.

Specify R to include low usage frozen conditions in the Product Administration Exception Processing Center file. The frozen condition setting is Low Usage.

Specify P to exclude low usage frozen conditions from the Product Administration Exception Processing Center file. Low usage frozen conditions are included on the exception report and must be resolved by accessing the inventory records manually.

Products with an average lead time of zero are frozen with a frozen condition of Zero LT, if the Freeze Products option is set to Yes. The product is frozen for one month.

Specify R to include products frozen due to zero lead time in the Product Administration Exception Processing Center file.

Specify P to exclude zero lead time conditions from the Product Administration Exception Processing Center file. Zero lead time frozen conditions are included on the exception report and must be resolved by accessing the inventory records manually.

Unusual sales are determined by the Low Usage Threshold Qty option in SA Administrator Options-Products-Replenishment. This number, combined with the Exceptional Usage: Minimum Amount value, is the minimum amount and quantity required to qualify a sale as exceptional. Products with cost times quantity, and quantities that meet this criteria are frozen with a frozen reason of Unusual, if the Freeze Products option is set to Yes.

Specify R to include unusual sales in the Product Administration Exception Processing Center file.

Specify P to exclude unusual sales from the Product Administration Exception Processing Center file. Unusual sale frozen conditions are included on the exception report and must be resolved by accessing the inventory records manually.

If the calculated trend percentage for seasonal products, or products with the Usage Method field set to Trend % in Product Warehouse Product Setup-Ordering varies from the trend percentage set up in Product Line Setup by an amount greater than the value specified in this field, the product is included on the exception report. The calculated trend percentage and the variance are also printed.

Use this option to choose to view status messages indicating the warehouse and product records currently being processed. Processing time is increased if you select Yes. Select No to keep the processing time of this report to a minimum.

Select Yes to use lead time in calculating the usage for a look forward or seasonal ordering method. This option minimizes the risk of stock-outs when the buying season for seasonal products comes up.

For example, it is January and the lead time for Lookback and Forward 6 months usage methods is 60 days. The usage for February through July for the previous year was 5 per month and the usage for August and September are 50 each. Using the lead time to calculate usage indicates usage of 23.33 (140/6).

If you select Yes for this option and there is insufficient history, the exception 'Extended Lead Time Warning' is given. Product Administration Month End Update Report uses the history that is available, but displays the exception warning. Usage months, extended lead time months, usage rate calculated, and usage history are displayed for the Extended Line Detail on the Exceptions view.

Select Yes to create exceptions when the Product Administration Month End Processing Report runs.

If you select M, exceptions are created when the report runs on the last day of the calendar month.

If you select No, exceptions are not created.

This option is ignored if you select No for the Recalculate Ordering Controls option.

If an @ICM[whse] stored report is set up for the warehouse in which the PO RRAR is created, this option selection is used when you run Update and Recalculate in Purchase Demand Center Entry, Product Administration Exception Processing Center, or Product Administration Usage Rate Update Entry when recalculating ordering controls for a product.

If an @ICM[whse] stored report does not exist for the warehouse, the default value for this option is used when recalculating ordering controls in Purchase Demand Center Entry-Ordering or Product Administration Exception Processing Center Detail-Ordering. In this situation, the option AIM Exceptions (Y)es,(M)onthEnd,(N)o can only have a value of Yes or No on the SA Administrator Options-System-Report Items template. If the value is MonthEnd, it is actually considered to be No when Product Administration Month End Processing Report is run from these functions.

Product Administration Month End Processing Report ranges and options

Ranges

Options