How to Split Lots correctly in NAV

simon.bond

Hi everyone,
We are having an issue where we need to split a LOT before it is item tracked to a sales order.

Basically we are using LOTS to track rolls of fabric.
We sell the fabric in linear meters.

When a roll of fabric in stock has 10 meters and the customer wants 4, we cut the 4 meters from the roll.
Now, Ideally ,this new 4 meter piece should receive a new lot number (since it has effectively become a second physical piece),
and the roll we cut the 4 meters from should have 4 meters deducted from it.

Since the customer may cancel the order at anytime, we need to ensure that we keep track of this piece of stock (since it has physically seperated from the original roll/lot).

We have currently be doing this by creating a negative Item journal for the original roll(lot) for 4 meters,
and creating a new roll(lot) by doing a positive item journal of 4 meters.

Since we use FIFO costing, I'm afriad this method might be causing our inventory value and margins to be incorrect, could this be the case? Where does NAV get the unit cost
for the new 4 meter piece on our positive IJ?

Also, we tend to have discrepancies in our stock very often... (we buy 30 meters from our supplier but they provide 33 meters, the extra 3 being free, but we don't know about this extra 3 meters until we have sold the majority of the roll)

Therefore we need to update our LOT with another 3 meters, on the otherhand we sometimes get fabric that is faulty and have to deduct 3 meters from the LOT

Whats the best way we should be going about doing this, without messing up our financials?

thanks for your help in advance
Simon

David_Singleton

From the costing point of view, rather than Neg/Pos adjustments, use transfer, which will keep the same costs.

ara3n

also if you do positive/negative adjustment, you can use apply to/from field to keep track of the cost.

simon.bond

Hi David,

I was under the belief a transfer only moved a LOT from one location to another, and did not allow you to deduct a portion of a lot and assign this new portion to a new LOT number.
We also don't use bins.

Hi Ara3n,

When we use the applies-to field on an Item Journal, it only allows you to specify a negative quantity, and I still don't know where it would be creating the new LOT number with the correct
financial information for the portion we are removing from the original LOT.

Can you guys clarify (incase I have confused something?)

To sum up.....

LOT A (A roll of fabric of 10 METERS) needs to have 4 Meters cut from it.
This 4 Meters, since it is a new physical piece needs a new LOT number,
both LOTS must show their correct financial information.
We use FIFO.

I'm totally lost!

ara3n

if you are simply changing the lot, you can use Item Reclass. Journal. It's form 393.
It simply does a transfer entry without using in transit location.

simon.bond

Hi again ara3n,

Thanks for your reply,
I dont understand how an Item Reclassification Journal can split a 4 meter portion from a 10 meter piece,
leaving

LOT A with 6 meters remaining - (This was the original 10 meter piece, now reduced to 6 meters)
and
LOT B with 4 meters (this is the fabric we just cut from the 10 meter piece)

and ensuring LOT A and B now contain the correct financial information.

I just dont see how this is possible with a Transfer or a Reclassification Journal, or by using the Applies to field on an I/J???

Anyone??

simon.bond

incase I didnt explain myself clearly,

LOT A is 10 Meters.

LOT B does NOT exist.

We want to create 'LOT B' by taking 4 Meters from 'LOT A'. (We are cutting 4 linear meters from a 10 meter roll of fabric)

Therefore LOT A will now become 6 Meters

and a new LOT, named LOT B will now contain 4 meters.

Leaving us with 2 LOT's,
LOT A - 6 Meters , and LOT B - 4 Meters.

How can we create 'LOT B' and ensure its financial information is correct and reflects the fact it came from LOT A.
And also make the deduction correctly on 'LOT A'.

Nobody I speak with seems to know how to accomplish this in NAV?

David_Singleton

Transfer and Reclassification are different names for what is essentially the same thing.

Have you tried it?

Sog

I think you need bins instead of item tracking if you want to accomplise that.
Lots are meant for item tracking, and if you change the lot of the item you won't know from which roll it comes.
When an item is created then you can assign an item tracking code and you know troughout the processes it comes by where it came from.
But you obviously want to have a number for each part of fabric you have. If you see those as bins you can easily transfer the fabric from the "roll of fabric #1" bin to the "roll of fabric 1.4 bin.
You'll still know which fabric belongs together (thanks to lot item tracking) but the 4 meters is in it's own bin.

Actually splitting lots is easily done, you can have 4 meters in one location and 6 meters in another. But changing the lot number is not how it's done. That is not a part of item tracking.

simon.bond

Hi David,
I thought you were referring to a 'transfer order' , not a reclass journal, although I'm still lost as to what your talking about here, we have used the Reclass journal for moving stock from one location to another etc. but I just dont see any functionality in this particular area of NAV to accomplish the task I am trying to accomplish, are you seeing something I am not? Could you be more specific about how I would do it with a reclass journal.
Thanks mate!


Hi Sog, Thanks for your help,
In our circumstance, every time an order comes through we would need to....

1. Transfer a 'specified quantity' of a particular ITEM (the type of fabric) from a specified BIN (the individual roll/piece, 'of this type' of fabric.)
2. Then assign this 'cut' quantity to a new BIN.

So in effect we are using the BIN Code to identify an 'Individual ROLL of fabric Code'

(This new BIN code would need to be automatically generated somehow, as we stock 10,000 individual rolls with varying sizes, and each time a ROLL is cut
we would need to do a transfer from the original BIN Code to a new BIN Code that doesnt exist yet.)

3. We would then need to assign that new BIN Code to the sales order.

Is this what you were meaning? Does that sound correct to you?

The only issue I see here is that we would have to create multiple lines on the sales order for the same product,
since you could only assign 1 bin to a sales order line? is that right?

thanks again!!

ara3n

On reclass journal enter the item no. And quantity. Select Applies to entry no from ILE.
then click on Line->Item tracking lines. Entere the Lot no, and New Lot No. and post.

simon.bond

Hi ara3n,

I'm trying what you said by doing the following

1. Goto Item Reclass Journal
2. Change [Entry Type] (Tried Positive and Negative)
2. Entered [Item No.]
3. Entered [Quantity] ( I tried +1 and -1)
4. Changed [Applies-To] (To match the LOT i will be removing the quantity from, the only entry available.)
5. Goto Item Tracking Lines
6. Try every different combination of selecting the LOT first, then trying to change the New Lot No. next to it (but its not editable)
Tried not selecting the lot and just entering the New Lot No. but its not editable
Tried selecting the Lot and not entering a new lot no. but placing a second assigned lot number underneath the first one.
Long story short, i tried all the combinations ( I believe ), and could not get the 'New Lot No.' field to be editable at all.

7. Cannot post any of the combinations.

Are you sure about this? Am I doing something wrong here?
Thanks again for your time.

End result , I Just need to remove 4 meters from a '10 meter LOT' named LOT A, and give this 4 meter piece its own 'LOT No.',
leaving me with 2 LOT's. A 6 meter LOT A and a 4 meter LOT B. (ensuring LOT B retains the same financial details from LOT A).

ara3n

you should not be able to select entry type on item reclass journal.

What version are you on?

Here is a screenshot.




1. Enter Item no.
2. Enter Qty.
3. Enter applies to entry no.
3. Line->Item tracking and enter Lot and New Lot.
4. Post.

simon.bond

Ara3n,

First of all, thanks so much for going to the effort of making a screenshot and helping me out.

There was an issue where the link to the reclass journal in the navigation pane was opening up
a standard item journal...

I had a play with the reclass journal and it seems to work great.
I can now reclassify portions of a lot , and assign this portion a new lot number.

Thanks so much for your help

ara3n

you are welcome