When calculating total units sold, the
system references this field to determine whether to use written sales
or delivered sales in the calculation.Use this feature to generate purchase orders automatically based on user-defined criteria. Automatic Purchase Order Replenishment is a key parameter in the Just-In-Time Inventory feature. The process generates purchase orders for stock product merchandise including kit components, but NOT for any of the following product types:
obsolete (that is, have a purchase status of Dropped or Discontinued),
kit-master.
The purchase order replenishment process also ignores
products flagged as "orderable" via the PO from Order Entry field in the Advanced Product Settings or Product Settings, and
product kits flagged as "orderable" via the PO from Order Entry option at the PO field in the Product Kit Settings.
However, you can override this restriction via the Include Orderable Products field in the Purchasing Control Settings.
The Purchasing Control Settings routine also contains a field called Include Store Stock In Availability, via which you can include store stock availability when calculating available quantities during the Automatic Purchase Order Replenishment process.
Each time you run the End-of-Day process, the process searches open orders to determine whether to create automatic purchase orders. The process runs for written or delivered data, depending on the setting at the Unit Sales Rate Calculation field in the Purchasing Control Settings.
Replenish Stock Inventory Based on Sales Rate (Automatic PO Replenishment)
Replenish Inventory for Current Back Order Needs (Manual Purchase Order Replenishment)
The following fields in the Warehouse/Store Location Settings affect Auto PO Replenishment:
General Tab
Location Type - This field indicates the location type for the selected location. Auto PO Replenishment creates purchase orders for both warehouse and store locations.
PO Replenishment Tab
Replenishment Location – Use this field to enter the store locations you want a selected location to replenish. If you have only one location or the location serves physically as both a store and a warehouse, you can set up the location to replenish itself. For example, for store 02, enter store 02 into the grid.
The following fields in the Purchasing Control Settings affect Auto PO Replenishment:
Include Store Stock In Availability – To include store stock availability when calculating available quantities during the automatic purchase order replenishment process, check the box. If you leave the field blank, the system includes only warehouse inventory when calculating available quantities.
Unit Sales Rate Calculation – You can calculate sales rates using one of the following:
- written units
- delivered units
The calculation for sales rate (specified in the Advanced Vendor Settings) is
total units sold / number of weeks
When calculating total units sold, the
system references this field to determine whether to use written sales
or delivered sales in the calculation.
The system also references this setting when calculating the average units sold for the two periods defined Advanced Vendor Settings. The average units sold is included on the Automatic Purchase Order Replenishment Report.
The following fields in the Advanced Vendor Settings affect Auto PO Replenishment:
General Tab
Lead Days – Use this field to specify the usual number of days it takes to receive goods from the vendor after a purchase order has been transmitted. This is the default purchase lead days for this vendor. If you do not want to order for forecasted sales, set this field to zero. If you set this field to zero, the system includes only back-ordered sales in the order quantity.
Minimum Stock Days – Use this field to specify the number of days’ supply of merchandise that would be considered to be below the safe stock level. The system references this field when calculating the units required to fill a purchase order. The system multiplies the minimum stock days by the sales rate to determine the number of units required to satisfy normal sales. If you do not want to order for forecasted sales, set this field to zero. If you set this field to zero, the system includes only back-ordered sales in the order quantity.
The Product
Performance and Purchase Recommendations (Buyer's Management Worksheet
Report) uses this field to calculate the total days supply by dividing
the current net available
by the calculated weekly sales rate.
Auto PO Replen Tab
Generate Automatic POs – To activate the Automatic Purchase Order Replenishment feature for a selected vendor, check the box at this field.
Automatically Hold POs – If using Automatic Purchase Order Replenishment, use this field to place on Hold all purchase orders created automatically through this process. In this way, you can review automatic purchase orders before releasing them to your vendors.
However, if PO Replenishment is active for a vendor, the system calculates the data and generates an EOD report. The buyer can review the data and decide whether to create a purchase order. Purchase orders can then be created via Purchase Order entry. The process can also be run on-demand and purchase orders can be created via the Actions button on the Items for Replenishment screen. If this field is not selected, purchase orders generate automatically via the End of Day process. The EOD process generates a report displaying the purchase order numbers created.
Weekly Sales Rate Calculation – Use this field to specify the number of weeks to use when calculating the sales rate for this vendor. The number of weeks calculates based on either written or delivered sales. The Unit Sales Rate Calculation field in the Purchasing Control Settings determines whether to use written or delivered sales.
First Average Units Period/Second Average Units Period – The Automatic PO Replenishment Report includes two Average Units columns. The report calculates average units based on the time frames (in months) set up in these fields. The average units calculate based on either written or delivered sales. The Unit Sales Rate Calculation field in the Purchasing Control Settings determines whether to use written or delivered sales.
Variance Starting/Ending Date – If you enter a variance percent, the End-of-Day process applies the variance only to the time period you specify here.
Variance Percentage – Use this field to apply a variance percentage to your sales figures. The default is 100, which calculates the sales rate based on available history. For example, to project sales figures cut in half, enter 50. To project sales figures at double the historic sales rate, enter 200.
Sort Criteria – Use this field to specify the sort order for purchase order reports generated during the Auto PO Replenishment process.
Build POs – Use this field to select the days of the week on which to generate automatic purchase orders for a vendor. During End of Day processing, the system references this field when determining the vendors for which to generate purchase orders.
The PO Replenishment tab contains the same fields as the Auto PO Replen tab in the Advanced Vendor Settings, as well as the following additional field.
Default Buyer ID - Use this field to enter the ID of the buyer you want to assign to purchase orders created via the Automatic Purchase Order Replenishment process.