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<ManualTopic ID="/baanerp/wh/onlinemanual/000502" xml:lang="en">
   <Header>
      <Title>Inventory disposition</Title>
      <Keyword type="header" order="d1e2991931">
         <Level1>Inventory disposition</Level1>
         <Level2>overview</Level2>
      </Keyword>
   </Header>
   <AimSection ID="Overview">
      <Paragraph>Inventory disposition is an alternative method to handle
		rejected inventory. To use inventory disposition, in the <GUIRef href="/baanerp/wh/inh/whinh0100m000" role="session">Inventory Handling Parameters (whinh0100m000)</GUIRef> session, select the <GUIRef href="/baanerp/wh/inh/whinh0100m000#whinh000.disp" role="manual">Inventory Disposition</GUIRef> check box</Paragraph>
      <List>
         <ListIntro>.The main differences with the standard rejected inventory
		  handling functionality are:</ListIntro>
         <ListItem>
            <Paragraph>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 <GUIRef href="/baanerp/wh/inh/whinh3122m000" role="session">Warehouse Inspections (whinh3122m000)</GUIRef> session. Updates follow after processing
			 the quantities in the <GUIRef href="/baanerp/wh/wmd/whwmd2570m000" role="session">Rejected Inventory (whwmd2570m000)</GUIRef> session.</Paragraph>
            <Paragraph>Therefore, the entire received quantity can be invoiced and
			 paid while the rejected quantity awaits further processing in the <GUIRef href="/baanerp/wh/wmd/whwmd2570m000" role="session">Rejected Inventory (whwmd2570m000)</GUIRef> 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.</Paragraph>
         </ListItem>
         <ListItem>After rejecting inventory in the <GUIRef href="/baanerp/wh/inh/whinh3122m000" role="session">Warehouse Inspections (whinh3122m000)</GUIRef> session, ERP Enterprise generates no
		  financial integration transactions or (potential) back orders.</ListItem>
         <ListItem> 
            <List>
               <ListIntro>In the <GUIRef href="/baanerp/wh/wmd/whwmd2570m000" role="session">Rejected Inventory (whwmd2570m000)</GUIRef> session, after:</ListIntro>
               <ListItem>Accepting rejected inventory, ERP Enterprise creates no new receipt but directly creates
				inbound advice to the storage location. If the warehouse is not location
				controlled, ERP Enterprise directly
				puts away the accepted inventory.</ListItem>
               <ListItem>Destroying rejected inventory, ERP Enterprise creates no back
				orders nor is the supplier paid or debited.</ListItem>
               <ListItem>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.</ListItem>
            </List>
         </ListItem>
         <ListItem>To specify whether rejected inventory in the <GUIRef href="/baanerp/wh/wmd/whwmd2570m000" role="session">Rejected Inventory (whwmd2570m000)</GUIRef> session must be available for planning methods such as <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>, <Link href="/baanerp/wh/glossary/glossary#000424" role="glossary" Update="No">TPOP</Link>, or <Link href="/baanerp/wh/onlinemanual/000310" role="manual" Update="No">SIC</Link>, you can select or clear the <GUIRef href="/baanerp/wh/inh/whinh0100m000#whinh000.dibp" role="manual">Disposition Inventory Blocked for Planning</GUIRef> check box
		  in the <GUIRef href="/baanerp/wh/inh/whinh0100m000" role="session">Inventory Handling Parameters (whinh0100m000)</GUIRef> 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.</ListItem>
         <ListItem>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.</ListItem>
      </List>
   </AimSection>
   <GeneralSection>
      <List>
         <ListIntro>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 Enterprise completes to process
		  these user steps. For more information, refer to <Link href="/baanerp/wh/onlinemanual/000303" role="manual">To handle rejected inventory</Link>. For information on the ERP Enterprise process steps that
		  are unique to inventory disposition, see:</ListIntro>
         <ListItem>
            <Link href="/baanerp/wh/onlinemanual/000503" role="manual">Inventory disposition - to accept rejected inventory</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/wh/onlinemanual/000504" role="manual">Inventory disposition - to destroy rejected inventory</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/wh/onlinemanual/000505" role="manual">Inventory disposition - to return rejected inventory</Link>
         </ListItem>
      </List>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000383" role="manual">Receipt and inspection procedures</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000016" role="manual">Approvals and inspections</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000008" role="manual">Purchase return orders</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>