INTERNET APPLICATION DEVELOPMENT
MID MARKET ERP DEVELOPMENT
By Hrayr Galoyan
Recently, I had a chance to work on a customization project on how Sage 300 ERP (Accpac) generates purchase orders from inventory. This gave me an opportunity to investigate in detail how to reorder quantities in the IC module. There are several parameters in Accpac that affect the logic of generating POs.
Let’s have a look at the Reorder Quantities screen first.
In this example, reorder quantity is setup for each location separately. For location 1, we want to have a minimum of 100 on hand. We don’t want to have more than 300, we can re-order in the multiples of 20, and our projected sales quantity is 150. All these parameters are used while auto-generating purchase orders, as we will see later.
An interesting option on this screen is to setup different reorder quantities for different periods, thus taking care of seasonality. See the example below.
In this example, we are telling the system that from January 1st to October 31st, the minimum quantity is 100 and maximum is 300, but from 1st of November till until the end of the year, the quantities are higher, because of the holiday season.
The next screen to pay attention to is I/C Vendor Details. This screen defines which vendors can supply a particular product. Without this, Accpac will not know who to place the purchase order to.
As you can see, two vendors can supply item A1-103/0. Moving on to the Create POs from I/C screen now.
There are usual selection options, to choose a range of items, locations, and things like that. I want to highlight the important ones here:
1. Run Date. This corresponds to reordering periods. Remember seasonality? If I choose a run date between January and October, Accpac will replenish inventory up to 300 units according to my setup. Any date in November or December will replenish up to 400.
2. Reorder Quantities for. Reorder quantities can be setup either for individual locations or for all locations. This is decided on per item basis. While generating purchase orders, you have to choose which type of reordering you are going to use.
3. Reorder Quantity box with four options. Use this when you are reordering in multiples of some quantity. In my example above, I can reorder in multiples of 20, so I may not be able to bring the quantity to match exactly with the maximum number, it may be a bit more or less. Lets say I have 170 on hand, I can order either 20 or 40, so my final quantity would be either 190 or 210. This box determines if I want to reorder just below the maximum, or just above the maximum. Similarly, if I am reordering up to the projected sales, I can do it just below, or just above, if a perfect match is not possible.
4. Finally, if an item has multiple vendors, you can choose which vendor to use.
So, how does Accpac know what quantity to order? The key is in the I/C Location Details screen.
For a given location, Accpac takes the Quantity on Hand, plus Quantity on P/O, minus Quantity on S/O. This is the quantity that is theoretically available. This quantity is compared with the maximum quantity defined in I/C Reorder Quantities screen. The difference is ordered.
Now back to the customization project I mentioned in the beginning of the article. One inconvenience is that Accpac places the orders in the stocking unit of measure, which may be different from the vendor’s unit of measure. In particular, our client maintained quantity in “Each”, but the vendor delivered in boxes. This resulted in a few surprises, when the company wanted to order X number of “Each”, but received “X” number of boxes instead. Our customization reviews the generated purchase orders and converts the quantities in them from the stocking unit of measure into whatever unit the vendor is using.
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