stop negative QOH when using average cost

[nicolevassar]

Hi All,

We are using weighted average cost (02) for inventory valuation. Our costs are being thrown off by transactions that are creating a negative quanity on hand. We are trying to figure out the best way to stop inventory from going negative and am wondering what have others have done?

Thanks,

Nicole

Enterprise One XE
Release B7333
Service Pack 20

 

[harmeyerjr]

There are two interactive applications where a processing option can be changed to disallow quantities on hand from going negative. In both instances, the application will display an error message. The applications are as follows:

P4205 (Shipment Confirmation) - change number 2 on the Edits tab to a 1
P31113 (Work Order Inventory Issues) - change number 5 on the Edits tab to a 1

Hopefully this will help.

 

[nicolevassar]

Thank you.

We are also receiving against negative PO's. We are using a line type of S and entering a negative quantity for returning product to vendors. There doesn't look like there is a qoh validation for this process and we have instances where qoh is dropping below zero. When this happens our average cost gets completely screwed up due to introducing a negative in the weighted average cost calculation.

 

[denishermann]

Hi
Why don't you use receipt routing on purchase orders to manage this kind of goods returns ?

OR :
PO with a negatiev quantity ....is that like a Sales Order ? then you 'll use P4205

regards
Denis

 

[nicolevassar]

Hi Denis,

We create a ON doc type using the P4310 with a negative quanitity and then receive against it with the P4312. This relieves inventory but does not check against quanity on hand.

I don't think receipts routing would work for us if you are talking about reversing the receipt and dispositioning it. We have goods that we are returning that have no receipt record. We went live 1/1/2004 and did not convert in receipts from our legacy system. A lot of our returns are based on overstock, obsolescence and defectives from prior years purchases. Each return would be going against multiple pos and multiple receipts from up to and over a year or two back.

 

[Craig_Potter]

This is a really tough area to control. Although some applications try to protect your On Hand from going negative via Processing Options - not all do. For example...

1. Receipt Reversal
2. Stock Adjustments (only stops Availability from going negative - commitment problems can throw this calculation out)
3. Sales Update - no attempt at all (hopefully status control will protect you)

[and negative PO receipts as mentioned in another post..]

So, there really is no easy way via the standard OW applications to stop your stock going negative.

Reports/SQLs to monitor this situation, trigger programs to spring into action if stock goes negative, etc.... are methods you could consider to help your manage this.

Also consider using Standard Cost with reports/procedures to monitor variances closely and revalue stock if deemed necessary.

Regards,

 

[babs]

You cannot stop neg OH when doing neg PO receipts unfortunately tolerance rules and proc options do not cover this area. We do neg receipts all the time and rarely have any problems as the users MUST check on hand qty prior to processing the neg receipt. If you don't have QOH and sufficient $'s OH to accomodate the return you must figure out an alternative way to handle it. From your post it seems that you are returning stock items for which you don't have a QOH so you need to determine why that is. If you don't have QOH for whatever business reason then you should do the return as Non-stock. You then get the A/P side of the equation but do not affect your QOH by making it neg. Bottom line in a stock inventory situation where you don't want neg inv - if you don't have it on hand in JDE then you can't return it (as stock) in JDE!

 

[denishermann]

hi
consider sending goods back to the supplier is a sales order...(use a specific document type to have AAI and accounting correct) then use shipment application (P4205) to send your goods back to the supplier (a customer in this case) . In P4205 set the processing option .

hope this help
bye.
Denis

 

[harmeyerjr]

I agree with using the sales order process with a new document type. The P4205 is the application that will disallow shipping negative.

 

[nicolevassar]

Thank you all for your posts.

The negative QOh mostly results from data coming in from our POS interface so there is no manual checking of QOH prior to the processing the transaction with the R47071. We are in the midst of identifying issues with the POS/interface regarding neg qoh but I was hoping to stop the transaction based on the JDE QOH value. Looks like we need to redefine the return process or make some code changes to the R47071 to check qoh.

I changed the default line type to C and let the system handle the sign change. This stopped some of our weighted avg cost issues.

It was helpful to see how others handle returns to vendors. Thanks again.

-Nicole

 

[garethw]

To jump onto the end of this thread...

E8.10 seems to have a Allow Negative OnHand flag added to P4312. I am getting the problem that if I try and receipt a negative quantity (i.e. supplier return) with this flag set to error if negative on-hand, then I always get the error! Regardless of whether this receipt will actually drive onhand negative. i.e:
- Return Order for -1
- 10 On Hand
- "Receipt" the -1
- Get Negative OnHand error

Two questions:
1. Was this flag in P4312 previously?
2. Any thoughts of how to get around it? Sales Orders don't work for me as you get issues with Supplier Analysis, AP etc.

Cheers.
Gareth
EnterpriseOne 8.10

 

[garethw]

To answer one of my own questions - this seems brand new for 8.10. Standalone versions of 8.9 we have here don't have the processing option...
So anyone configuring or using 8.10 yet and has a solution???