Background: Material Issues and Adjustments
Use the Material Issues and Adjustments (IMI) program to adjust or issue inventory and print the Inventory Adjustments Register and update the general ledger if you have inventory interfaced to the GL. See PowerAide and Road Map for more information.
This topic has these subtopics:
Adjust On-Hand and Floor Stock Quantities
You can select ADJ for the Issue/Adj type field to adjust the on hand quantity of finished goods, manually planned items, MRP dependent items, and tool crib items. You can also use this program to adjust the quantity of a phantom if you selected the Allow stocking of phantoms? option for your manufacturing branch in the System Options Maintenance (XM) program (Inventory Control Options) is selected.
You cannot use this program to adjust quantities for pseudo, configured product, prompt, or family items. For a consignment item, you can adjust on-hand but not the quantity in consignment.
Other uses are:
Load inventory data when you convert from another system.
Adjust on-hand balances in the system to match the quantities counted during physical inventory if you are not using the physical inventory programs.
Adjust the quantity in floor stock for an item that has a floor stock code of 1. If the item's floor stock code is 0, select FAD for the Issue/Adj type field.
Move a warehouse/bin controlled item from one location and then into another. However, if you want to move an item from one branch to another, you need to use the branch transfer programs: Branch Transfer Maintenance (ITM), Branch Transfer Confirmation (ITS), and Receiver Maintenance (IRC).
Negative Inventory
If you selected N, B, or C for the Manage negative inventory option in the System Options Maintenance (XM) program (Inventory Control Options), you are not allowed to make an adjustment that creates negative availability. Suppose that you have 6 on hand, 5 of which are obligated for sales orders, transfers, or manufacturing orders. If you enter an adjustment of -2, the program displays the message Insufficient quantity available to perform negative adjustment.
However, if the system option selection allows negative inventory for an item, you may do a negative adjustment if the on hand quantity is already negative.
Remove Consumables
You can select CON for the Issue/Adj type field to remove items from inventory that you consume but do not want to track as you consume them. For example, you consume reams of paper, and you need to update your paper inventory periodically but not when you use each ream.
When you select CON, you enter a positive quantity. The program reduces inventory for you.
Adjust Floor Stock
You can select FAD for the Issue/Adj type field to adjust the floor stock quantity for an item that has a floor stock code of 0. You would use FAD if you receive a large quantity of warehouse/bin controlled item into on-hand inventory and subsequently move smaller quantities of the item to the shop floor. Even though the item is set up to be stored by warehouse and bin location, for convenience you may want that item to be considered to be floor stock for a bill of material.
You can select FST for the Issue/Adj type, to issue a non-floor stock item to floor stock. However, if the item is warehouse/bin controlled, you must select FAD.
Issue On-Hand to Floor Stock or Floor Stock to On-Hand
You can select FST for the Issue/Adj type field to move a quantity from on hand to floor stock. You can also use it to move a quantity from floor stock to on hand.
Enter a positive quantity to increase floor stock and decrease on hand. It does not matter whether the item is floor stock.
Enter a negative quantity to decrease floor stock and increase on hand. Again it does not matter whether the item is floor stock. However, if you selected N or B for the Manage negative inventory option in the System Options Maintenance (XM) program (Inventory Control Options), you cannot make an adjustment that creates negative availability.
Adjust Consignment Inventory
You can select ACI to adjust inventory for a consignment item. This action is the same as an adjustment, except that it adjusts consignment quantity instead of on-hand quantity. If you reduce the consignment below zero then the quantity in consignment will be negative. This adjustment has no impact on general ledger.
Location Warehouse Movement
You can select LWM for the Issue/Adj type field to move the item from warehouse/bin location to another in the system to match its physical location.
When you use the Automated Location Warehouse Movement (ALWM) function to issue a bulk container to a manufacturing order, the system creates an issue number. If you selected G for the Global or local field for IMI in the Batch Number Setup (XBC) program, the system creates a single number for ALWM transactions. When you obligate a quantity from a container or you return the unused quantity with the Location Return Selection (ILMR) program, the system adds the transactions to the issue number.
Typically ALWM has no impact on the general ledger. However, you can associate an expense with these transactions.
When you print the register, the program closes the issue number. The next ALWM transaction creates a new number. The register has a limit of 1000 lines. Therefore, you should run the register periodically.
See Overview: Automated Location Warehouse Movement for more information.
Scrap inventory
You can select SCR for the Issue/Adj type field to scrap quantities of items that are not useable. This is an alternative method to enter scrap quantities of parent items or components during the manufacturing process with the WIP Movement (WIPM) or Labor Entry (LLE) programs or importing them with the Labor Import (LEI) program. A positive quantity entered reduces on-hand inventory and a negative quantity increases on-hand.
Adjust Component Picking
You can select WRK for the Issue/Adj type field to adjust the quantity picked for a manufacturing order. This assumes that you picked components with the Manufacturing Order Maintenance (MIM), Material Usage Maintenance (MUA), Picking Confirmation (MPK), Secured Picking (SMPK), or Manufacturing Order Picking Selection (MSS) program. Alternatively, you may have used the Receiver Maintenance (IRC) program to pick components when you received into finished goods. However, you may later discover that you over or under picked and need to adjust inventory accordingly.
The system adjusts the quantity picked for the specific manufacturing order as well as the material cost for the order.
Preview and Final Register
The system updates costs when you enter adjustments. Therefore, you do not need to run this register after you enter adjustments. You may want to run the register at month end.
When you print the Adjustments Transaction Register, these documents print in this order:
Seq |
Document |
Comments |
1 |
Preview register |
Review to be sure that it is correct. |
2 |
Preview journal |
If these options are selected:
|
3 |
Final register |
If this option is selected:
|
4 |
Final journal |
If these options are selected:
|
The register includes this information:
Issue number
Login branch
Date and time entered
User who entered the adjustment or issue
The register includes this information for each adjustment or issue:
Line number
Item number
Branch code
The type of issue or adjustment:
ADJ: Adjust on-hand and floor stock quantities
CON: Remove consumables
FAD: Adjust floor stock quantities of items with floor stock code 0
FST: Issue on-hand inventory to floor stock or floor stock to on-hand
LWM: Move inventory between warehouse locations
SCR: Scrap inventory
WRK: Issue inventory to a manufacturing orderIssue/adjustment code
Manufacturing order number
Part designator
Quantity issued or adjusted
Standard unit cost
Total value: Quantity x Standard unit cost
Item description
Issue/adjustment code description
If you selected the Print stocking detail? Program option, the register also includes this information:
Lot or serial control number
Warehouse
Bin location
Quantity issued or adjusted for that control number or location
The register includes these totals:
Adjustment value
Inventory movement value
Consumption value
Work In Process value
Scrapped value
Floor stock adjustment value
Audit Trail
To activate an audit trail, select one of the files listed below in the Audit Trail Maintenance (XAT) program. The system records all transactions. You can then run the Audit Trails (ATR) program and select that file to print a report of these transactions.
MP2: Mfg Order Master