Question

Project MRP (PMRP) - Purchase Order not considered

  • 10 January 2023
  • 4 replies
  • 264 views
C
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Hello,

 

Our business works on a project basis. We want to be able to reserve parts and track them, from procurement to production, on a project basis. So we are evaluating the possibility of working with PMRP.

Where it gets complicated is that we need to purchase  for some article larger volume to take advantage of economies of scale.  With the possibility of taking into account the surplus stock in the calculation of the PMRP, our need is met.

 

However, we are encountering a blocking problem at the purchasing level. It seems that the PMRP does not take into account the ongoing purchase orders for inventory replenishment (therefore not related to the project). The PMRP does not consider them and asks us to buy the parts, while a purchase is in progress at the general stock level. 

Have you encountered the problem and is there a solution?

 

Thanks in advance for your expertise!

Regards,

 

Coralie

4 replies

AntOlivFr
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Hi Coralie

IFS can do this through the use of Material transfer requests (MTR) within Project Netting Groups (PNG). Are you familiar with this functionality?

It would be useful to know which version you are working with to know what the best type of screenshot or functionality I can suggest is - can you confirm?

MTRs will create a request to project-connect some or all of the quantity on a purchase order line but it should be used carefully!

BR
Oliver

M
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Userlevel 6
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Hi Coralie,

If I quote you “However, we are encountering a blocking problem at the purchasing level. It seems that the PMRP does not take into account the ongoing purchase orders for inventory replenishment (therefore not related to the project). The PMRP does not consider them and asks us to buy the parts, while a purchase is in progress at the general stock level.”

And yes, in PMRP, when it comes to netting against standard inventory, then “the stuff” must be in inventory, we don’t have the possibility to net open supply, for standard inventory, in the PMRP engine.

If the the inventory sits in “standard inventory” then PMRP can create MTRs and transfer from standard inventory to the demanding project activity.

Best Regards,

Mats

AntOlivFr
Rank
Userlevel 3
Badge +7

Hi Coralie,

If I quote you “However, we are encountering a blocking problem at the purchasing level. It seems that the PMRP does not take into account the ongoing purchase orders for inventory replenishment (therefore not related to the project). The PMRP does not consider them and asks us to buy the parts, while a purchase is in progress at the general stock level.”

And yes, in PMRP, when it comes to netting against standard inventory, then “the stuff” must be in inventory, we don’t have the possibility to net open supply, for standard inventory, in the PMRP engine.

If the the inventory sits in “standard inventory” then PMRP can create MTRs and transfer from standard inventory to the demanding project activity.

Best Regards,

Mats

Mats is absolutely correct - I have however seen this resolved elsewhere using a project called STOCK so that you can buy in bulk and net it against projects using MTRs.

 

Could you also create one PO line with multiple Project Requisitions collated on to it? You can then use the consolidated price calculation option to work out the discount you should get? 

The use of this I suppose depends on inventory replenishment vs project specific requirements.

C
Rank
Userlevel 1
Badge +3

Hi, 

Thank you for your replies.

 

Hi Coralie

IFS can do this through the use of Material transfer requests (MTR) within Project Netting Groups (PNG). Are you familiar with this functionality?

It would be useful to know which version you are working with to know what the best type of screenshot or functionality I can suggest is - can you confirm?

 

No, I am not particularly familiar with the MTR. Will it be possible to automate the transfers when receiving in stock? Using BPA for example?

We are implementing IFS Cloud 22R1.

 

Can you tell me more about the workaround you have seen elsewhere?

Thanks for sharing your experience! 

 

 

 

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