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Anthony Etzel
/ Categories: Infor LX & BPCS Tips

Tip of the Week: 8 Common-Sense Rules for Inventory Management

Common sense rules. We may not like them, but generally, they stand the test of time and should be followed. Here are 8 common sense rules related to inventory management published by Inbound Logistics back in 2007. They still hold true today. 

1. If you don' t know where you are going, no road will take you there. Enterprise resource management systems are designed to tell you about today' s inventory. With some work, you can also access information about past inventory. To manage inventory proactively, however, you must know projected inventory levels for the future.

2. Make what you can sell. An integrated Sales and Operations Plan will naturally take into account expected demand in its production plan. Inventory is not an independent variable - it is the direct result of demand and supply.

3. Sell what you can make. Too often, a disconnect exists between sales and marketing desires and the reality of production capabilities.

4. If you can' t sell it, stop making it. If demand for your product does not materialize, you need to identify that gap quickly to avoid a buildup of non-moving inventory. Numerous mechanisms can be put in place to identify such trends.

For tips 5 through 8 and more details into the other tips, click the button below to read the full article.

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Anthony Etzel

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Tips:  LX | BPCS | M3

Understanding: The Cycle Count Transaction

If you rely on BPCS to provide you with a cycle count list, the number of items could vary from day to day from a few items to count, to several. So the person doing the cycle counting may spend a few minutes to a few hours counting items. After the cycle count is complete, the balances are not changed until the reconciliation is complete. This process could take some time before the balances are changed.

The cycle count transaction process is similar to the physical inventory transaction process.

For either file, you must specify a valid location code as defined in the Location Master File.

If the machine master locations are blank, then the work center locations are used. There are cases where you may want to do a combination between the two in defining the locations.

Let’s say the end item has one operation. The operation is at work center 510 and Machine A is in the work center. You have locations setup in both the Work center file and the Machine master File. You report 100 complete at the work center without specifying the machine.

In this case, the inventory will be processed based on the locations defined in the work center file. If the transaction included the machine number, then the locations in the machine file would be used.
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Tips: LN | Baan

All actions required for converting, validating, matching, and posting electronically received bank statements can be performed within a single session:

  • Bank Statement Workbench (tfcmg5610m100)
  • Bank Statement (tfcmg5610m000)

Alternatively, you can use the sequence of electronic bank statement sessions outlined below.

Steps to Process Electronic Bank Statements:

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