Organizations settings affecting Inventory Usage

In the Organizations application there are a few settings that effect the behaviour in the Inventory Usage application.

Transfer Options

The Transfer Options action determines when you must transfer using the SHIPPED status. Across Organizations is the default, but you can choose Across Sites or All Transfers. This is a system wide setting. It doesn’t stop you from being able to use the “Change Status to Shipped” action if you are transferring items from one storeroom to another in the same site.

If you had the Require Shipment set to Across Sites then if you went to change status to COMPLETE for a transfer, you would get the following error messages in the same dialog:

The second set of radio buttons is associated with the use of Internal Purchase Orders. Your business may require you to place a purchase order when transferring items from one business organization to another. By default, no internal purchase order is required, but you can make it required for transfers across organizations or transfers across sites. Note. You can only transfer items across organizations that share the same Item Set, and hence would be using the same set of Item Master records.

Inventory Defaults

In Inventory Defaults the second checkbox at the top “Automatically create usage documents for new reservations?” is by default unchecked. However, if checked then, whenever a material requisition (MR), internal PO, or work order creates a reservation this checkbox will automatically create an Inventory Usage document from that reservation. 

Inventory Costs

The Inventory Costs action in the Organizations application determines the default Issue Cost Type for the site. For Rotating Items which are non-capitalized you can choose whether to use an issue cost type of ASSET. 

These settings do not have a direct effect on Inventory Usage transactions. When a transfer occurs and the item does not yet exist in the destination storeroom, then the item will be created, and the Issue Cost Type will be defaulted from these settings. There may be further actions to perform after the transfer completes depending on these settings and I will make reference to this action in the section on financial processes. 

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