Inventory Issue - Direct from Central Warehouse

Rauf

VIP Member
I have to set up Inventory module in 8.12 for one of our affiliate companies.

As a parent company we already using Inventory module. But the scenario is little bit different.
The parent company have few big projects, so they keep all projects are Branch/Plants (means all BUs are Branch/Plants). So we transfer material from central warehouse to project warehouse (I know the complete cycle)

But for the affiliate company, they have hundreds of small projects, so they want to keep only the Affiliate Central Warehouse(ACW). Now, my query is that how can I directly issue the material from ACW to projects.

I checked JDE Demo where I could see the B/P in header of Issue Inventory form as same as in the grid. Can I make header B/P = ACW, and grid B/P = Project MCU. Is this okay or I need to something else ?
 

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RussellCodlin

Reputable Poster
The B/P on the Inventory Issue will be the ACW. You'll need to ensure the P4112 version has the Issue Type processing option set to 2 so that users can then enter the account information for the project so the costs can be expensed correctly. If this is too confusing for the users the other option is to set up job cost work order within the project business unit. You can then issue inventory to this work order which will allow you to use DMAAI's to control the expense accounts.
 

Rauf

VIP Member
Russel,

Thank you very much for the advice. This is what I was looking for. I have done and the financial effect is okay as expected.

I have one more concern...
The ACW will have items for different projects. So to control the movement, I think, I have implement the lot processing (but I am not that much aware).
So my plan is to create new lot up on receipt of the items.

For example,
The location R01-12 will have items for Project A and Project B. It the item is Computer Stand (item#123987), it will be stored as two lots, because the price may different based on discount or offers.
So the items will be stored as (without lot control):

Item Loc Lot Qty

123987, R01-12, 13

The items will be stored as (with lot control)
Item Loc Lot Qty

123987, R01-12, Project A, 5
123987, R01-12, Project B, 8

I think I am in the right track. Ain't I?
 

RussellCodlin

Reputable Poster
I think I am in the right track. Ain't I?

You are but you'll to think about costing method and cost level as well as how the inventory store is actually managed.

One option to consider is for items that are bought specifically for a project it may be easier to just expense them at the point of receipt rather than use inventory management to control them.
 

Rauf

VIP Member
Hi RussellCodlin,

Yes. Accounting wise, I can just hit the project account while receiving the material. But how should I store the items in the inventory ? Is it okay to use 'Lot' ? Is the lot created for this kind of purpose or it is designed for 'Manufacturing' module ?
 
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