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Po Generator: How does it configure???

  • 1.  Po Generator: How does it configure???

    TOP CONTRIBUTOR
    Posted Feb 21, 2020 02:43 PM
    We are using the PO Generator, but are still a little confused on how it actually figures what it needs to order compared to what we have the order point qty set to.
    For example we have an item that has
    0 on hand, 0 allocated, 1 on backorder.  The Re order point Qty is set to 1 and the Order up to Qty is set to one.
    So if we create a PO, it only wants to order one.  We were thinking it would order two so it could fill the backorder plus have one for the shelf.
    Now I know we have the order up to qty set at 1 so it will probably only order up to one no matter what but......

    We have another item set up that has 0 on hand and 1 on backorder and this item is set up as 0 and 0 for both re order and order up to level, but when we ran the po gen, it did order one.

    So I cannot figure out this logic.

    Can someone help me understand this please?  If we do want to set items up to order enough to cover backorders plus have a certain amount on the shelf, how should we think of this?

    Thanks,

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    Katie Pieczynski
    Accounts Receivable Manager
    DANSR
    Champaign IL
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  • 2.  RE: Po Generator: How does it configure???

    TOP CONTRIBUTOR
    Posted Feb 24, 2020 01:24 PM
    HI Katie-

    On your first example, the order up to level is what is making PO Generator only suggest 1. Even though reorder point is set to 1, the order up to level is you telling the PO Generator to only keep a maximum of 1 in stock. Once that back order is allocated and fulfilled, then it will suggest 1 again.

    On the second example, since there are no minimum or maximum inventory levels set on the item, PO Generator is just going to suggest exactly what is backordered.

    In PO Generator when you look at the grid of items listed to order, click on one of them and click the arrow to the right of Item Number in the headings. This opens a detail screen of the item being suggested. There are two fields to point out: Required Qty in Base U of M and Modified Qty in Base U of M. If those numbers are different, then PO Generator is applying inventory stock level rules and vendor ordering rules. Click on the arrow next to the Required Qty in Base U of M field. I've put an example below:


    This is giving you the breakdown of how it came to the calculation.

    Our items are set with a replenishment level of "Order Point." So in the screen above, we want to keep 2,000 on the shelf in addition to filling the backorders too. PO Generator has modified the quantity to be 2,605 demand required instead of just the 605 we are short. The reason it is showing 3,000 is because we have other rules set up on the item/vendor card for a minimum order required from the vendor.

    If you want to configure the items to cover back orders plus have stock on the shelf, use the Order Point Qty field. This is the trigger when on hand inventory goes below this level to order again. You should also use the Order Up To Level field to prevent what I call "runaway inventory." This puts a hard stop on the total quantity to order to help you prevent excess inventory.

    I hope this makes some sense. Please let me know if you have other questions. I love the PO Generator!!!!

    Thanks.
    Joe

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    Joseph C. Markovich
    IT Manager
    Okaya Electric America
    Valparaiso IN
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