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Heartland Business Systems, LLC

The Invisible Supply in Microsoft Dynamics GP


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Microsoft Dynamics GP Client PO Issue

Recently I was working with a client that was new to perpetual inventory (tracking item quantities within Microsoft Dynamics GP). My client couldn't understand why the PO generator suggested the quantity that it did. The client wasn’t actually using PO’s in Dynamics GP yet; we were validating item requirements and system suggested PO quantities based on the released assembly bill of materials.

The item was setup as follows:
On hand: 12
Allocated: 10
On Order (PO): 0
Order point: 5
Order up to: 40

 

The item was a simple "each" unit of measure. It’s “Replenishment Level” was set to “Order up-to level” for the PO generator. Since we only had 2 “available”, we knew we should be ordering 38, yet the system only wanted to order 34. The allocate drill down showed that the 10 were allocated to a released assembly order. Why wasn't it ordering 38?

Solution

Turns out that the user had inadvertently previously generated a PO for a quantity of 4. As the PO was in "new" status (never printed), the "on order" quantity was not updated on the Item Quantities window but the PO generator still was considering that supply when calculating the current need!

Microsoft Dynamics GP's requirement to print the PO before the supply shows in the "On Order" quantity field is easy to overlook. I normally create a Smartlist showing all PO's with a PO status of "NEW" and a Document Date less than “today” when I train clients on the PO module (and encourage the purchasing manager to add that to their Home Page reminders) in order to eliminate this “invisible supply”

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One Response to “The Invisible Supply in Microsoft Dynamics GP”

  1. IES GP says:

    Thanks for sharing! I had the exact same problem and no idea what was going on. Ugh, well at least it’s fixed now 🙂