Inventory inspections

Inventory inspection headers and lines

An inventory inspection consists of a header and one or more lines.

The inventory inspection header shows general information such as the warehouse, the location, the item, and the aggregated inspection results.

The inventory inspection line shows the information at the most detailed stock point level. For example, if the item is lot-controlled and serialized, the inspection line shows the serial number and the inspection results for the individual serial number. If the item is lot-controlled, the inspection line shows the inspection results for the items contained in the lot.

Inventory inspection handling units

You can create inventory inspections for handling units.

When an inventory inspection is created for a handling unit, the inspection header is displayed in the Warehouse Inventory Inspections Overview (whinh3122m200) session and the Warehouse Inventory Inspection (whinh3622m200) session. The inspection lines are displayed in the Inspection Lines tab of this session, and the handling units are displayed in the Handling Units tab.

Blocking

Items in inventory that are inspected are automatically blocked for inbound and outbound processes, cycle counting, and inventory adjustments.

Inspection results

For items in inventory, you can specify these inspection results:

• Approved
• Destroyed
• Scrapped
• Rejected

For approved items, the block is automatically lifted.

Scrapped and destroyed items are removed from inventory through an automatically created adjustment order. If the destroyed items are not company owned, this is at the owner’s expense.

The adjustment orders are automatically created and processed, and financial transactions are created.

Rejected items are subject to quarantine handling for further examination.

If the quarantine functionality is not implemented, rejected items are removed from inventory through an automatically created adjustment order.

Quarantine handling for inventory inspections

Quarantined items are automatically blocked for inbound and outbound processes.

In quarantine, items are given dispositions for further action such as use as is, rework, return to vendor, or scrapping.

Quarantine handling for items rejected in inventory inspections is done in the warehouse or the location in which the items are stored. Optionally, use the Move Quarantine Inventory option in the Quarantine Inventory Disposition (whwmd2172m000) session to move the items to a different location.

After quarantine processing, the selected disposition determines, if, where and how the inventory is moved. For example, items can be returned to the supplier through a purchase return order, sent to a rework location through a production order, or simply be unblocked if the disposition is use as is.

Inventory inspection ownership

When consigned or customer owned inventory is to be inspected, you must specify the owner of the inventory on the inspection line. When you save the inspection line, LN checks whether the inventory is On Hand according to the ownership settings in these sessions:

• Warehouse - Item Inventory Ownership (whwmd2615m000)
• Inventory by Warehouse and Lot (whltc1605m000)
• Item - Serials and Warehouses (whltc5100m000)

Integration with Quality for inventory inspections

You can link Warehousing inventory inspections with Quality inventory inspections.

If the functionality for Warehousing inventory inspections is implemented for an item, the storage inspection functionality from Quality is unavailable for the item.

Inventory inspection setup

The inventory inspection functionality is implemented by item, item by site, and item by warehouse.

The settings by item serve as default settings for individual sites, and the settings by site serve as default settings for individual warehouses. This means that you can define central settings for items and define different settings for individual sites or warehouses.

To set up the inventory inspection functionality for an item, complete these steps:

1. Select the Inventory Inspection check box.
2. Define the frequency for periodic inspections in the Frequency for Inventory Inspection field.
3. Specify the series for inventory inspection records.

The Inventory Inspection check box and the Frequency for Inventory Inspection field are available in these sessions:

• Item - Warehousing Defaults (whwmd4501m00)
• Item - Warehousing (whwmd4500m000)
• Item Warehousing Defaults by Site (whwmd4109m000)
• Item - Warehousing by Site (whwmd4104m000)
• Item Data by Warehouse (whwmd2510m000)

Series for inventory inspections are specified in these sessions:

• Inventory Handling Parameters (whinh0100m000)
• Warehousing Settings by Site (whwmd2101m000)
• Warehousing User Profiles (whwmd1140s000)

The series defined for individual sites overrule the general parameter series. The series defined for individual users overrule the general series and those defined for individual sites.

Defining periodic inventory inspections

Periodic inventory inspections are created in the Generate Inventory Inspections (whinh2211m000) session. The items to be inspected are selected by specifying search criteria in the range fields.

Inventory inspections are generated for items that match the criteria and whose inspection due date has passed.

To calculate the due date, the value in the Frequency for Inventory Inspection field in the Item Data by Warehouse (whwmd2510m000) session is added to the value of the Last Inventory Inspection Date field in the Stock Point Inventory (whinr1540m000) session or the Item - Serials and Warehouses (whltc5100m000) session.

For items that match the selection range criteria but whose calculated due date is later than the current date, no inventory inspections are created.

History data

To store history data about inbound inspections, outbound inspections, or inventory inspections, select the Inspection History check box in the Inventory Handling Parameters (whinh0100m000) session.