Criteria for managing CENTRALLY or BY LOCATION or ENTERPRISE |
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Tip: If you are implementing the application for the first time, you should choose ENTERPRISE because the other choices will be phased out in a subsequent release.
ENTERPRISE
When you manage parts ordering and EOQ as ENTERPRISE, you must specify a location when you insert a purchase order for parts, but you may specify a different receipt location for one or more line items. This method is useful for any method of parts management, whether each location manages its own inventory separately or groups of locations are managed under a centralized warehouse.
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Each stockroom has a supplied-by location. If the location manages itself separately from other locations, it is its own supplied-by location. If the location is managed by a regional or centralized warehouse, its supplied-by location is that warehouse.
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Even if a stocking location is normally supplied by a centralized warehouse, it can still order its own parts, independent of activity at other locations. Only a location’s own current inventory is considered when determining what to replenish.
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When a stocking location requires a part but is out of stock, it usually would receive that stock by transfer from its supplied-by location unless it was managing itself. A stocking location that manages itself would usually replenish by ordering the part directly.
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As was previously announced, the system will be discontinuing support for legacy purchasing setup options. 22.1 is the last version of the application where the ordering configuration can be set to CENTRALLY or BY LOCATION.
Upon upgrade, your system will notify you if it requires a conversion to the supported ENTERPRISE method of management. While the legacy configurations are still allowed for this version, those utilizing CENTRALLY or BY LOCATION must receive a temporary license key to gain access to the legacy purchasing methods.
BY LOCATION
When you manage parts ordering and EOQ BY LOCATION, you must specify a location when you insert a purchase order for parts and you may not specify a location when you receive a part. Select this method if the parts inventory operation has the following characteristics:
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Inventory locations are relatively far apart or without easy transportation or rapid shipment facilities available.
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Each stocking location orders its own parts, independent of activity at other locations.
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Only a location’s own current inventory is considered in the determination of what to order.
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When a stocking location requires a part but is out of stock, it usually orders the part rather than determine whether another location has it available for transfer.
CENTRALLY
When you manage parts ordering and EOQ CENTRALLY, the application does not accept a location when you insert a purchase order for parts and requires a location when you receive a part. Select this method if the parts inventory operation has the following characteristics:
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Inventory locations are relatively close to one another, with easy transportation or rapid shipment facilities available.
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The organization orders parts for all inventory locations from one location.
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Employees consider the current inventory at all inventory locations when they determine what to order.
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When employees require a part that is not currently in their stock inventory, they determine whether another location has the part and can transfer it to the location that requires it.
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See Also