The Organizational Unit Parameters option is used to record the material information reflected and tracked by warehouse. The Organizational Unit Parameters option is located under the Attached Records menu of the Material/Material Class List.

Material locations in each warehouse and their minimum, maximum and safety inventory quantities may differ. The Organizational Unit parameters are also used to specify the controls to be applied to selected warehouse input/output transactions for the material/material class.

All units are listed with code and description information in Organizational Unit Parameters window. Stock, production and planning transaction parameters are set for the material seperately.

Stock parameters are used to record the following information:

  • Minimum, maximum and safety and re-order inventory quantities
  • Inventory level control method
  • Stock-warehouse consistency control default in material input/output transactions
  • Material's location info and ABC code

Warehouse Info

Minimum, Maximum and Safety Inventory Levels: It is crucial for the material requirement planning to know the minimum, maximum and safety inventory levels to be kept. The material levels can be regularly tracked and the materials to be purchased or produced can be procured in time using this information.

The maximum and minimum options indicate the maximum and minimum amount of material to be kept respectively, and the safety inventory level indicates the quantity of material required to be kept at all times. Transactions are recorded on slips and invoices by processing these inventory levels. The control method field is used to specify how the inventory level control will be done.

When minimum inventory level quantity is entered, the application will not display a minimum inventory level error if the material quantity falls below the quantity entered here as a result of material transactions (sales, scrap, etc) and if the value of the Inventory Control parameter is “Proceed”. However, if the value of the Inventory Control parameter is “Block”, the application displays a minimum inventory level error.

When maximum inventory level quantity is entered, the application will not display a maximum inventory level error if the material quantity becomes greater than the quantity entered here as a result of material transactions (purchase, etc) and if the value of the Inventory Control parameter is “Proceed”. However, if the value of the Inventory Control parameter is “Block”, the application displays a maximum inventory level error.

When safety inventory level quantity is entered, the application will not display a safety inventory level error if the material quantity falls below the quantity entered here as a result of material transactions (sales, scrap, etc) and if the value of the Inventory Control parameter is “Proceed”. However, if the value of the Inventory Control parameter is “Block”, the application displays a maximum inventory level error.

Reorder Inventory Level: The inventory level to be processed in purchase order transactions. Purchase order slips are checked using the quantity provided here. Reorder level cannot be less than the safety inventory level. The control is performed by comparing reorder level with inventory totals. The control method field is used to specify how the level control will be performed if the inventory total is greater than the reorder level.

The inventory level control method is specified using the Defaults and Parameters option of the System Settings section. The Inventory Level Control parameter of the Material Management parameters has two options.

When the "Over Physical Inventory" option is selected, the physical inventory in the related warehouse and purchase order totals are processed and compared with the reorder level.

When the "Over Actual Inventory" option is selected, the actual inventory and purchase order totals are processed and compared with the reorder level.

Negative Inventory Control: The slips and invoices are controlled according to the Maximum, Minimum and Safety quantities specified in the Organizational Unit Parameters and the level is controlled for every transaction. Certain companies may have negative inventories due to operational conditions. This transaction must be avoided in terms of cost. If the material inventory is negative, the cost calculations cannot be performed using the Average of On Hand, FIFO and LIFO methods. Only the Average of inputs and Periodic Average cost methods can be used for materials with negative inventory. If the material level is allowed to be negative, such level must not exceed a certain quantity. 
During transaction entries, material level control is performed in two different ways. The control method default is specified using the Material Management Parameters. If the material level is below the minimum, above the maximum safety level or negative and above the required reorder level, the program proceeds as follows depending on the selected control method:

  • Records the transaction without any warning
  • Displays a warning message and does not record the transaction

Input / Output: It is possible to determine the warehouses in which the materials are located and to allow the Input/Output transactions to be performed only from this warehouse. This control and performance method is defined in the Input/Output Control field of the Organizational Unit Parameters section.

The input/output control on slips and invoices is performed in two different ways. When Proceed is selected, warehouse control is not performed on the slip and invoices for the material/material class.

When Block is selected, the transaction is not recorded if the warehouse specified on the slip is different than the warehouse specified on Organizational Unit Parameters.

The control method default is specified using the Material Management Parameters. This default value is transferred into the materials/material classes. However, it can be changed if a different control method will be used.


Warehouse Details

Track by Location: Indicates whether or not the material will be tracked by location in the related warehouse. The location tracking information is recorded on the Options page of the material definition window. However, it can also be recorded with warehouse information if a different situation applies for the selected warehouse.

Default Location: The default location of the material in the warehouse. The defined Location Codes are listed and the location of the material in the warehouse is selected. If the Track by Location option is applied, the location of the material within the warehouse must also be specified in purchasing transactions of the material class or the material.

ABC Code: This field is used to record the code of the material or material class and the child materials and classes to be used in the analysis. The ABC Code allows the analysis reports that are important for the sales and finance transactions of the material classes to be generated.

Cycle Count Period (Day): The period in which cycle count will be performed for the material is specified in this field. The duration is entered in days.

Last Cycle Count Date: The last date on which cycle count is performed in the selected warehouse.

Will be Used in Demand Management: Indicates that the material/material class will be used in demand management. If the demand will be delivered from the inventory or through warehouse transfer, inventory quantities are processed only for warehouses with this option selected.

Does not Affect Cost: Indicates whether or not transactions in this warehouse will affect the cost.

Usage Point (Material / Purchasing / Sales Management): Used to define material usage points on the organizational unit basis. When the relevant material is used in Material, Sales and Purchase Slips, the usage point specified in the organizational unit parameters will apply. If the usage point is not specified, the relevant usage point which is selected in the materials card will apply. Materials of which usage point is specified are not listed in the relevant slips.