Question

Inventory Location

  • 28 December 2021
  • 8 replies
  • 728 views

Userlevel 2
Badge +2

Hi,

We have inventory parts that are getting written off the books because it is unlikely that we will sell them. However, we keep the parts in-house and just physically move them to a “written-off” location in the building. Instead of removing the parts from IFS stock via a Material Requisition, I would like to “move” them to a new inventory location in IFS that is not reflected on the books. Does anyone know if this is possible and if so, how it would be processed in IFS?

Thanks in advance for any input or advice.

 


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8 replies

Userlevel 5
Badge +13

Hi @DebMod 

As an option you can scrap the required  qty  through “Scrap inventory part” and then later through “Undo scrap inventory” window you can re add the scrapped qty to the inventory.
Once the inventory is scraped it will be deducted from the on hand qty and then will be added back after undo scrap,

 

 

 

Thanks.

Userlevel 7
Badge +21

HI @DebMod ,

 

I’m not aware of anyway to configure a location so when you move parts into a location inventory would be taken off the books.  You could go to inventory part in stock and do a query for for your write-off location.   You’d could then RMB on the line(s) and select scrap to remove the part from inventory thus getting it off the books.

 

 

Regards,

William Klotz

Userlevel 7
Badge +20

Hi @DebMod 

As per the standard IFS design, i believe there is no inventory location which will not reflect on books as you desire. Therefore "scrap" of inventory is good options as you can unscrap once again in case new demand is created for these scrpped stocks. Then again you can use "Issue inventory part" window to remove the stocks from the system as well.

 

 

 

Userlevel 7
Badge +28

We have two separate warehouses where we hold items we do not wish to inventory and do not wish to be shown as part of the full inventory value.  The items have cost, can be transacted if required to show usage, but are not included in the total inventory value.  These are all expense items for us.

They are not automatically excluded from transactions, but because they are shown to be in these designated warehouses, finance is able to exclude them from the inventory value relatively easily.

Userlevel 2
Badge +2

Thank you all very much.

Several of you suggested the scrap option, however, I was hoping to be able to easily track in IFS the part numbers and quantity of the “written-off” parts for future use if possible. I also wanted the visibility for demand for the Planning Department. 

ShawnBerk - I am not familiar with the option for another warehouse. This sounds like it might be a possibility. Do you know if the stock in the separate warehouse would work with the demand for Planning? Do you know how your Finance team is able to exclude the stock from inventory value?

Thanks for your help.

Userlevel 7
Badge +28

Yes, the items can be left visible for demands if necessary.

 

At the site level, there is another entire warehouse for the items that are intended to be excluded from inventory value.  DRW = Drawings, HWR = Hardware

 

 

The Warehouse is a visible value on the Inventory Part in Stock, Inventory Transaction History, and indirectly on the GL Vouchers.

 

For the IPIS and Transaction History, it is easy to exclude or include by changing the Warehouse level filter.

At the GL level, the posting controls are set to detect issuing of components from the DRW or HWR warehouses and rather than making that connection as an inventory value change, it is directed as a cost credit to the appropriate cost center.  In this manner, the goods are expensed on the front when received, then the cost center is credited later when the parts are actually used.  This moves the cost to COGS while not including the item as part of Inventory and not requiring counting as it is already expensed.

 

Here is a transaction:

 

 

M1 is set to treat the item as regular inventory or expensed material based on the Inventory Part Accounting Group.  Accounting Group ALL is standard inventory, Accounting Group DRW or HWR which matches the warehouse location setup visually is what controls the transactions.

 

Posting Control​​​​​​
Posting Control Details
Posting Control Details Specification

 

On the Transaction details, you can see where Cost Ctr 5536 is getting the credit when the item is issued, but it would have not been counted as part of inventory value prior to that point.  It was an expense already taken when the No Part PO receipt occurred in the past.

 

Expense component used

 

Non-Inventory Arrival

 

 

 

Your use case is of course different on the origin of the goods, so the Purchase part won’t matter.  However, you should be able to see the progression of the items.  

One additional point for your use case which is what we have to do when we want to convert something from non-inventory to inventory OR vice versa.  Sometimes we inventory things then later decide to expense it.  We would first issue the item out of standard inventory to a project that would hit the cost center with the inventory write off, while the inventory quantity is zero, we switch the accounting group (this is the only time you can make the change), then we would receive the same item back into to the non-inventory location under the new accounting group.  From then on, it follows the expense route.

 

Hope that is enough to get you headed in the right direction, it is the extent of my explanation I’ll be able to provide.

Badge +2

Hi @DebMod 

As an option you can scrap the required  qty  through “Scrap inventory part” and then later through “Undo scrap inventory” window you can re add the scrapped qty to the inventory.
Once the inventory is scraped it will be deducted from the on hand qty and then will be added back after undo scrap,

 

 

 

Thanks.

 

Hello, could you please let me know from which version of IFS is available the “Undo Scrap Inventory” function.

We are using Apps9, release8 and it does not show. In another question I saw the reply that it is available in Apps10 and Cloud

But, it is available in any releases of Apps9 - if yes in which one?

Many thanks,

 

Userlevel 4
Badge +8

Hello! We use Part Status to help with some of this. We consider items like this ‘Deadstock’ and setup a status as such. 

Another option would be to setup a Scrap Reason for this specific process, scrap the items out of inventory. Then count them back into inventory using the Count Per Inventory Part at $0. That way they’ve been written off and the cost has hit your books but you can still show them in inventory.