| # Inventory disposition Inventory disposition is an alternative method to handle rejected inventory. To use inventory disposition, in the Inventory Handling Parameters (whinh0100m000) session, select the Inventory Disposition check box .The main differences with the standard rejected inventory handling functionality are: When a receipt is confirmed, the received quantity is registered as approved on the purchase order line. The approved quantity is not updated after items are rejected in the Warehouse Inspections (whinh3122m000) session. Updates follow after processing the quantities in the Rejected Inventory (whwmd2570m000) session. Therefore, the entire received quantity can be invoiced and paid while the rejected quantity awaits further processing in the Rejected Inventory (whwmd2570m000) session. This avoids risking late payments to the supplier due to time-consuming disposition procedures. Settlements for destroyed or returned goods can take place after processing. After rejecting inventory in the Warehouse Inspections (whinh3122m000) session, ERP LN generates no financial integration transactions or (potential) back orders. In the Rejected Inventory (whwmd2570m000) session, after: Accepting rejected inventory, ERP LN creates no new receipt but directly creates inbound advice to the storage location. If the warehouse is not location controlled, ERP LN directly puts away the accepted inventory. Destroying rejected inventory, ERP LN creates no back orders nor is the supplier paid or debited. Returning rejected inventory, the ownership of goods does not change. For company owned return items, the supplier is charged, because the items were paid for after receipt. To specify whether rejected inventory in the Rejected Inventory (whwmd2570m000) session must be available for planning methods such as Enterprise Planning, TPOP, or SIC, you can select or clear the Disposition Inventory Blocked for Planning check box in the Inventory Handling Parameters (whinh0100m000) session. If most of the inventory in disposition is presumably accepted, consider clearing this check box to make this inventory available for planning, thus avoiding the risk that too much replenishment is planned based on too low inventory levels. Disposition items in the reject location are valuated identically to items in receipt locations. On the inventory valuation report, disposition items are listed with the original receipt value. For standard rejected inventory handling and inventory disposition, the steps that the user completes to accept, destroy, or return rejected inventory are identical, as are some of the steps that ERP LN completes to process these user steps. For more information, refer to To handle rejected inventory. For information on the ERP LN process steps that are unique to inventory disposition, see: Inventory disposition - to accept rejected inventory Inventory disposition - to destroy rejected inventory Inventory disposition - to return rejected inventory Related topics Receipt and inspection procedures Approvals and inspections Purchase return orders |