How to use the "Required inventory level" from item master data

[former_member209762]

Hi Experts !

What does the field "required inventory level" in the Inventory tab from the item master data means and how it can be used?

Pleasee give examples.

Thanks

[KennedyT21 · Accepted solution]

HI Yves Ngoma...

Enter values for the minimum, maximum, and required inventory levels for each warehouse if necessary. These three columns only appear when you deselect the Manage Inventory by Warehouse checkbox.

•   If your inventory level in a certain warehouse falls below the Required (Purchase UoM) quantity you defined, in a purchase document, the application suggests a minimum quantity to fulfill the inventory level required. 

• If your inventory level in a certain warehouse falls below the Minimum quantity you defined, the application may blocks your sales transactions, or issues an alert, according to your definition for Response to Release/Receipt of Inventory Outside Defined Range in the Document Settings window.

• If your inventory level in a certain warehouse exceeds the Maximum quantity you defined, the application may blocks your purchase transactions, or issues an alert, according to your definition for Response to Release/Receipt of Inventory Outside Defined Range in the Document Settings window.

Regards

Kennedy

[former_member209762 · Accepted solution]

Hi Kenney

Thanks for reply. I understand what you said for the fields. But let me use somme example and tell me if it is suitable for the first field (i.e required inventory level).

Suppose item A is as follow :

in-stock = 30

min stock = 20

required inventory level = 50

Since the in-stock quantity is less than the required one, does this mean that in a purchase order, the system will suggest the quantity of 20 purchase UoM (i.e. 50-30=20) to be ordered?

[KennedyT21 · Accepted solution]

Hi Yves Ngoma,

Yeah the application suggests a minimum quantity to fulfill the inventory level required.

Regards

Kennedy

[former_member209762 · Accepted solution]

I execute the example and the system displays 1 instead of 20 in the quantity field. What's wrong? Knowing that in my case, 1 Purchase UoM = 1Inventory UoM.

Did I missed something?

[KennedyT21 · Accepted solution]

Hi

The system considers this Required Stock Level when you issue Purchase Order and suggests automatically the appropriate quantity missing in stock in order to match the required level.e.g. if the required stock level of a certain item is 50 units but you currently have only 10 units of this item in your warehouse then when you select this items in a Purchase Order the system will automatically suggests 40 unit to be purchased.

It works for me..

Regards

Kennedy

[former_member209762 · Accepted solution]

Hi Kennedy,

Thanks for your reply. It also works for me !

[silicon2018 · Accepted solution]

Can you explain what the relation is between the Required in relation to the Minimum? Can Required be less than Minimum.
Also confusing is the columnname associated with Required, this is 'ReorderQty', in my thinking related to a Purchase advise of minimal to be ordered quantity as possibly agreed upon with a vendor. This could easily be less than the Minimum defined stocklevel.

When I play around with the values, I see that on a Inventory&Sales Item i can have the Required be less than Minimum, however on a Inventory&Purchase Item I can only set the Required as being larger than the minimum.

Thank you, Vincent

[Johan_H · Accepted solution]

Hi silicon2018

Minimum and Maximum are enforced values. That means that the system will not allow you to take out stock if it goes below the minimum and it will not allow you to input stock if it goes above the maximum.

Required is a value that is only used in purchasing, specifically by the MRP system. This system will try to purchase stock according to the following priorities:

1. Purchase enough stock to be able to fullfill any open Sales Orders
2. Purchase enough stock to reach the Required stock.

Required can be smaller than Minimum because the MRP does not use the Minimum value, and when stock is taken out, the system does not look at the Required value.

"Also confusing is the columnname associated with Required, this is 'ReorderQty'..."

B1 was originally developed in the 90s, by a company whos developer's native language was not english. Also, like with most ERP programs, new functionality gets added over time, and sometimes fields get repurposed, functionality is changed, or the use of a field is expanded. Because of these reasons, fields can have names that may not make (entirely) sense in all situations.

Regards,

Johan

[silicon2018 · Accepted solution]

Hi Johan,

Thank you very much for the explanation.

Best regards, Vincent