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Significance of Inventory Adjustment Codes

Technote (FAQ)


What are Inventory Adjustment Reason Codes used for?


We have THREE Out of the Box(OOTB) inventory adjustment reason codes hardcoded in the system - RECEIPT, PACK and SHIP
System/User uses PACK reason code when packing the inventory. Once Packed, we should not let any system operations use this inventory as it is physically packed inside a container and not available for any further use. However we might require to unpack the container due to some reason. Therefore system needs to maintain this inventory in a location where there should be no allocations but from where we can take back the inventory to the warehouse for normal use if required.

Therefore out of the 3 codes, only PACK should be associated with a virtual location while RECEIPT and SHIP should not be associated with any location (be it virtual or physical)

System/User uses RECEIPT reason code while receiving inventory in the warehouse. As this inventory comes from outside of Sterling, There is only an addition of inventory to the warehouse and no negation from any location existing in the warehouse. The location to which this received inventory will go is already known to the system or users while executing this operation. This reason code need not to be associated with any location.

System uses SHIP reason code to remove the inventory from virtual location associated to PACK reason code after the shipment is shipped. This is done because after shipping, the inventory needs to move out of the warehouse and the system

If we reduce inventory from a location eg L1 with a reason code associated with a location eg L2, then system places the inventory to L2 at the end. Other reason codes that are used in warehouse can be used to negate inventory from a location some time or to negate from one location and add up to another location. This is specific to business requirements.

RECEIPT, PACK and SHIP reason codes should be configured in the way explained above, for every WMS node in

Application Manager -> Warehouse Management(select node) -> Inventory -> Inventory Adjustment Reasons

Document information

More support for: Sterling Warehouse Management System

Software version: 9.0, 9.1

Operating system(s): AIX, HP-UX, Linux, Solaris, Windows

Reference #: 1645573

Modified date: 10 June 2017

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