Allow Negative Inventory with Directed Pick and Putaway

KWevick · 2007-02-13

We need to allow inventory to go negative with full warehouse functionality (directed pick and putaway). We know it's not a considered a good control, but our inventory moves so quickly that production orders are completed and out the door faster than paperwork can be processed at this point. Same for Receipts on P.O.'s. Has anyone modified their system to allow to this?

nunomaia · 2007-02-13

You can have negative inventory depending the issue. You must be careful changing that, or you can have problems with correct item cost.

Do you have item tracking?
Do you want to have negative inventory with location transfers?

KWevick · 2007-02-15

Yes, we would like it to work with transfers. We run item tracking, but only at sales.
Thanks
Karen

ara3n · 2007-02-15

I would not recommend Going negative with Transfer orders.
Navision skips the item ledger entry into the intransit location.
The person/machine where they are producing the goods, give them a Navision PC client. And ask him to post the production order. So there is no paperwork required.
I don't know all the details on how you do your work, but I would not recommend going negative especially with Transfer orders.

nunomaia · 2007-02-15

It's simple to put going negative with Transfer orders. But you have to know what you are doing!!! Item will be incorrect valuated.

KWevick · 2007-02-15

We are more concerned with going negative when we backwards flush production orders and ship sales orders. We are in an extremely fast paced environment where sales orders are placed, produced, and out the door, often in less than an hour and the paperwork just can't keep up with the pace.
We will be introducing adcs and barcoding in a few months, but this is a new implementation and we need to work the quirks out before we add rf.
Thanks

Alex_Chow · 2007-02-15

KWevick wrote:

We need to allow inventory to go negative with full warehouse functionality (directed pick and putaway). We know it's not a considered a good control, but our inventory moves so quickly that production orders are completed and out the door faster than paperwork can be processed at this point. Same for Receipts on P.O.'s. Has anyone modified their system to allow to this?

I made this update for one of our customers. However, we only allowed negative quantity if the item is picked from the Crossdocking area.

The logic behind it is that the paperwork is slower than what's actually taking place in the warehouse. And the assumption is that the items received will be replenished on the cross docking area first.

lubost · 2007-02-16

It is not good idea to allow negative inventory - system must make preasure to post entries in correct order (if system will not do it, users forget post some entries and you have a big problem to find a solution to correct it)
Try to find solution to background post output to Prod. order during shipment sequence.

Miklos_Hollender · 2007-02-16

It's the wrong way to go. Rather customize the system to automatically post a positive adjustment item journal if there is not enough inventory, and flag it with a boolean field so that when the actualy output or receipt is posted you can also post an automatic journal to remove that.

And use standard costing or otherwise it will be a costing hell...

Alex_Chow · 2007-02-16

Yes, it's not a good idea. I completely agree with you.

It's also not a good idea to do your bank reconcilation outside of Navision, but its still being done.

Sometimes the operation rules requires it, if the customer understands the full impact of the consequences.

Alex_Chow · 2007-02-16

Miklos Hollender wrote:

It's the wrong way to go. Rather customize the system to automatically post a positive adjustment item journal if there is not enough inventory, and flag it with a boolean field so that when the actualy output or receipt is posted you can also post an automatic journal to remove that.

And use standard costing or otherwise it will be a costing hell...

The warheouse management in Navision has no bearing on the costing of the inventory item.

Miklos_Hollender · 2007-02-16

???

Yeah, a warehouse journal is not instantly posted in the item ledger / value entries but sooner or later it has to and then it will have costing consequences.

Alex_Chow · 2007-02-17

Miklos Hollender wrote:

???

Yeah, a warehouse journal is not instantly posted in the item ledger / value entries but sooner or later it has to and then it will have costing consequences.

Yeah, but it's treated like a positive/negative adjustment. Having all things consistant, the costing shouldn't change.

Allow Negative Inventory with Directed Pick and Putaway

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