Level 2 INV01

tylerstimpson

Hi fellow builders!

 

I'm now at the conclusion of my Level 2 training where I export my saved view of INV01 and cross-check with their .csv. I'm just noticing my Beginning Inventory (therefore Ending Inventory) is returning negative values starting in week 8 and week 7, respectively.

 

I didn't have issue with my Spring 3 Exam but after back-tracking where I went wrong, I've been lost for days. Any hint on where to look next?

TimothyThomas

Hi @tylerstimpson ,

 

I think your issue is that your "Confirm Purchase Order Receipt" line item should be pulling through the Suggested Order Amount for the Month from Week 1 FY20 to Week 3 FY20 - 8,194 rather than 2,048.

 

This extra ~6,000 should bring your inventory back to a positive number. Hope that's enough of a nudge in the right direction, but please let me know if more detail is needed!

P.S. - take a look at your inventory line item Time Summary settings as well.

 

Thanks,

Timmy

tylerstimpson

Hi @TimothyThomas thanks for the quick response!

 

I changed my Confirm Purchase Order Receipt line item formula to:

IF Confirmed PO Delivery > 0 THEN POST (Suggested Order Amount for the Month, Final Shipping Time Weeks) ELSE 0

from

IF Confirmed PO Delivery > 0 THEN POST (Final Shipment Amount, Final Shipping Time Weeks) ELSE 0

I'm confused why my Confirm Purchase Order Receipt should be pulling month values in a week time scale. 

 

I'm still receiving negative values, but later on in Week 9 & 10 FY20.

(Note: I have also changed my Ending Inventory formula to IF NOT Override Suggested Order Amount? THEN Beginning Inventory - Forecast Demand ELSE Beginning Inventory - Override Amount to Beginning Inventory - Forecast Demand)

 

More detail would be much appreciated, thank you for your help as I'm a self learner!

 

TimothyThomas

Hi @tylerstimpson ,

 

I think your new formula for Confirm Purchase Order Receipt looks good. As for why you are referencing a monthly value in a weekly timescale, I believe the thought is that they are planning to purchase a month's worth of inventory with each PO, so they don't have to make a PO each week, or something along those lines.

 

I think your ending inventory formula does need changed, it should be something simpler in which you are subtracting forecast demand from and adding the confirmed PO to Beginning Inventory. See if that helps - I'll attach a screenshot of mine as well as a reference!

Thanks,

Timmy

tylerstimpson

@TimothyThomas that did it for me thank you very much for the help.

 

Thank you for attaching a comparison, looks like I need to work on my Shipping Costs & Beginning Inventory summary now too.

 

Do you have any tips for the summary?

TimothyThomas

Hi @tylerstimpson ,

 

Great to hear! No problem at all, this is a tricky module that I definitely struggled with too. 

 

For summary methods for inventory, oftentimes using Closing Balance for Time is the correct method for getting it to sum up properly.

 

Thanks,

Timmy

tylerstimpson

Hi @TimothyThomas ,

 

Worked perfectly for me. Is closing balance for time for inventory the best summary because it is the most recent for the month?

TimothyThomas

Hi @tylerstimpson ,

 

Great! Yes, basically it will pull (regardless of which sort of time frame you are looking at) the most recent data and keep it there, rather than summing or averaging or something along those lines. So for our company we use it almost exclusively for inventory, both volume and $ - it's quite useful for calculating things like inventory variation, especially when you have multiple different locations.

 

Thanks,

Timmy

tylerstimpson

@TimothyThomas great to know. Thank you very much for the info today.