Internal In-Plant Store Explanation
The IPS module is to keep inventory as Supplier owned but is recognized as being available for consumption by MRP and kitting. When it is consumed by kitting or transfer, a Purchase Order is automatically generated to reimburse the Supplier for the material.
This inventory type can be used to store all excess inventory caused by the minimum purchase requirement on parts for a particular turnkey job, but for which the customer does not want returned, and the User wishes not to count the inventory as assets as these parts may not be used in the future. The leftover parts can be stored in this inventory for possible future use and does not have to be treated as regular internal inventory for the accounting purpose. The system allows all in-store transactions to happen without any contract entered in the system until the user is ready to create an In-Store PO.
There are three uses for this module: supplier owned but stored on-site, customer owned and stored on-site, and internally owned but obsolete parts that the user does not want to affect the books. In any of these situations a supplier must be established (this means that the customer must also be a supplier and the user must be a supplier if they have obsolete inventory in the IPS location).
In-Store purchasing overview: In-Store is the situation where the Supplier has placed raw materials in the user’s warehouse. The Supplier still owns the raw materials. When the user is ready to use the Supplier’s raw materials, he/she issues the parts to a kit then creates an In-Store Purchase Order. For In-Store POs, the user may select by Supplier or by Part Number. Then the user may find records according to the selection. Once found, the user may create a PO for the In-Store Consumption. In-Store Purchasing also includes receiving.
This module also provides Instore designation for part numbers with a "MAKE" source. This will allow users to utilize inventory handling to add items sourced as MAKE parts to enter inventory into the IPS module. Then, as they are needed, be able to kit to work orders those subassemblies from IPS. There would be no GL records created when the material is moved into IPS via Inventory Handling. But on issue to kit, a PO will be generated, for the amount established in the IPS Contracts, and the Kit (along with WIP) will be charged for the standard cost of the assembly.
Tracking In-Store processing through MANEX:
· Add the Supplier in the Supplier Information module.
· Set up a Stores Warehouse and the applicable G/L number in System Setup/Warehouse Setup module.
· Add the in-stores item into the Item Master in the Inventory Control Mgmt module and create the In-Store warehouse.
· Move the materials into the warehouse using the Inventory Handling module.
· Add the In-Store Contract in the Supplier Contract Mgmt module.
· Pull a kit (only a kit shortage gets a P.O.) within the Kitting & Shortage Mgmt module.
· Add a Purchase Order and select In-Stores within the PO Mgmt module.
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