Set up replenishment

The replenishment process lets you identify inventory items or supplies inventory items that need to be reordered and automatically create purchase orders to restore your inventory stocking levels. This topic steps you through how to set up this feature for your organization.

After replenishment is configured and your items and item-warehouse combinations are defined with the key input variables for the replenishment calculations, including the vendors who sell the items, the Replenish inventory page becomes the central point for reordering inventory items.

Prerequisites

The following sections outline the prerequisites for setting up the replenishment process in your organization:

1. Review the replenishment methods.
2. Verify that key dimensions are enabled.

1. Review the replenishment methods

The replenishment methods you select for your items determines how Sage Intacct calculates when items need to be reordered and the quantity to order. An item or item-warehouse combination can have one of the following replenishment methods:

• Demand forecast by single value
• Demand forecast by fluctuating values
• Reorder point

Understanding each replenishment method and what goes into its calculations will help you select the appropriate replenishment method for each of your sales inventory items or supplies inventory items. Depending on the method selected, you'll enter appropriate values for the associated replenishment fields in the item.

Learn more about replenishment methods and the calculations for each method.

2. Verify that key dimensions are enabled

The Item, Vendor, and Warehouse standard dimensions need to be enabled in the general ledger. They were most likely enabled when your company was implemented and configured. (Go to General Ledger > Setup > Configuration, then review the selections in the Dimensions section.)

Set up replenishment

The following sections outline the steps for setting up the replenishment process.

1. Update purchasing price lists.
2. Ensure at least one Purchasing transaction definition exists.
3. Configure Inventory Control.
4. Update vendors.
5. Update warehouses.
6. Update items (items and warehouses per item).
7. Define fluctuating demand forecasts.
8. Grant users permission to replenish inventory.
9. Optional: Create a Replenishment Snapshot report.

1. Update purchasing price lists

A price is displayed for an item in the replenishment table in the Replenish Inventory page when the item has a price defined in a purchasing price list. A purchasing price list must be associated with either the Purchasing transaction definition for the purchase order or with the selected vendor. Each vendor can have their own price list.

Update a purchasing price list

1. Go to Purchasing > Setup > Price > Lists.

   The PO Price Lists page appears and lists all purchasing price lists for your company.

   If there are no purchasing price lists in your company, you need to add one. Learn how to add a Purchasing price list.

2. Select Details next to the applicable price list.

   The Price list entries for <Purchasing price list> list appears.

3. Select Add.

   The Price List Entry Information page appears.

4. Use the dropdown list to select the desired Item, then complete the rest of the fields as applicable. See Price list entries for information on these fields.

5. Select Save.

6. Repeat steps 3 - 5 for each applicable item.

Associate the purchasing price list with the transaction definition

1. Go to Purchasing > Setup > More > Transaction definitions.

2. Select Edit next to the purchase order transaction definition.
3. Scroll to the Workflow section and select the desired purchasing price list from the Initial price list dropdown list.

4. Select Save.

2. Ensure at least one Purchasing transaction definition exists

You need at least one purchasing transaction definition to set up replenishment. When purchasing transactions are created automatically from the Replenish inventory page or Supplies Inventory replenishment page, the purchase transactions for the selected items are created with the transaction definition selected in Configure Inventory Control. For sales inventory replenishment, the default is the value entered in the Transaction definition for purchases field. For supplies replenishment, the default value is entered in the Supplies PO field

While any transaction definition that is defined in the Purchasing application can be selected, except those for returns, you most commonly want to have purchase orders generated.

Learn how to create a Purchasing transaction definition.

3. Configure Inventory Control

In addition to enabling replenishment on the Configure Inventory Control page, you also set a few replenishment default options on the page.

In a multi-entity environment, you enable and set the options at the top level.

1. Go to Inventory Control > Setup > Configuration.

2. In the Dimensions setup section, make sure the Vendor and Warehouse checkboxes are selected.

3. In the Replenishment section, select Replenishment.

   Three replenishment fields appear.

4. In the Replenishment method default dropdown list, select the replenishment method to be used as the default for all inventory items enabled for replenishment. (For each item, it's the default at the item level in the Vendor history tab and at the item-warehouse level for each warehouse identified in the Warehouse section in the General tab.) The replenishment method specifies how Sage Intacct calculates when an item needs to be reordered and how many to order.

   • Demand forecast by single value: Includes the forecasted demand of an item during vendor lead time. A single value you enter for each vendor in the item represents the demand. This method is useful when demand for items is stable during the year.
   • Demand forecast by fluctuating values: Includes the forecasted demand of an item during vendor lead time. You define a fluctuating forecast for the item and enter the expected quantities needed on each given date regardless of vendor. The sum of the forecast quantities with dates during the time period between the As of date plus the vendor's lead time represents the demand during vendor lead time. This method is useful when demand for items fluctuates greatly during the year, such as for highly seasonal items.
   • Reorder point: No forecasted demand during vendor lead time is used. The reorder point you enter for each item or item-warehouse combination becomes the starting point for determining when items need to be replenished. This method is useful when you want to keep items stocked at a preset minimum level.

   The replenishment method can be overridden for each inventory item at the item level and at the item-warehouse level.

   Learn more about the replenishment methods and the calculations for each method.

5. In the Transaction definition for purchases dropdown list, select the transaction definition that will be the default value for the Transaction definition field in the Replenish inventory.
   If you are configuring replenishment for Supplies Inventory, select a transaction definition value in the Supplies PO field. Users can select a different transaction definition when generating a replenishment for inventory or supplies inventory.

   You most commonly want to have purchase orders generated and use a transaction definition with the attributes described in Step 2. Ensure at least one Purchasing transaction definition exists.
6. Optional. Select the Replenish an item only for the warehouses listed in the item record checkbox to have an item recommended for reordering only for the warehouses that are explicitly listed in the item record (in the Warehouse section in the General tab). Otherwise, an item will be recommended for reordering for all warehouses defined in the system that are enabled for replenishment.

7. Select Save.

When you save the configuration, Sage Intacct performs several actions such as:

• Enables all inventoried items (inventory items, supplies items, and stockable kits) and warehouses for replenishment. You can edit an item or warehouse to exclude it from being considered for replenishment.
• Adds a Lead time default (days) field to each vendor record, with a default value of 1. The value is the default value in the Vendor entries table at the item level and the item-warehouse level for each inventory item.

• Adds new fields for each inventory item enabled for replenishment, both in the Vendor history tab and in the Details area for each warehouse listed in the Warehouse section in the General tab. These fields control the values that go into the replenishment calculations for your items.

  The replenishment fields that are added in the Details area for each warehouse for an item replace the fields that are used for the Inventory Reorders report (Economic order quantity, Reorder point, Minimum order quantity, Maximum order quantity, Minimum stocking amount, and Maximum stocking amount), unless the warehouse is disabled for replenishment.
• Removes the Inventory Reorders report from the menus in the product interface because the use of the report is no longer recommended. Replenishment is the recommended process for restocking inventory.

4. Update vendors

For vendors, you might consider updating the following fields:

• Lead time default (days). When you enable replenishment in Inventory Control, a new field is added to each existing vendor for the vendor's lead time with a default value of 1. This value becomes the default value for the vendor for each item.
  A vendor's lead time can vary by item or by item per warehouse depending on the distance to your warehouses. The best practice is to explicitly set the vendor's lead time in the Vendor Entries table for an item (in the Vendor history tab) and for the item in a particular warehouse (in the Warehouse section in the General tab), as needed, to get more accurate replenishment calculations. You'll update items in a later setup step.
• AP Term. The AP term is used to populate the payment Date due in the purchasing transactions. Each vendor for whom you want to create purchase orders should have a default AP term. If a vendor doesn't have an AP term, the system uses the default AP term from the applicable purchasing transaction definition. If the purchasing transaction definition doesn't have a default AP term, the system cannot create a purchasing transaction for that specific vendor and an error occurs.

1. Go to Inventory Control > Setup > Vendors.

2. In the Vendors list, select Edit next to the desired vendor. The Vendor Information page appears.
3. On the Additional information tab, enter the desired value in Lead time default (days).
4. On the Payment information tab, use the dropdown to select the desired Term.

5. Select Save.

6. Repeat steps 2 - 5 for each desired vendor.

If many vendors need updating, you can import the changes in a CSV file to save time. Learn more about importing vendor information.

5. Update warehouses

When you enable replenishment, all existing warehouses and inventoried items (inventory items, supplies items, and stockable kits) are enabled for replenishment. You might consider making these updates:

• If you're a multi-entity organization and plan to use replenishment at the top level, ensure your warehouses have a location. At the top level, the replenishment process excludes warehouses without locations even if the warehouses are enabled for replenishment.
• If you want all the items in a warehouse to be excluded from the replenishment process, disable the warehouse for replenishment. For example, you might have warehouses that you use for scrap that you do not want included in replenishment.

1. Go to Inventory Control > Setup > Warehouses.

2. In the Warehouses list, select Edit next to the desired warehouse.

3. Do either of the following, depending on the update you're making:

   • Ensure a location has been selected from the Location dropdown list.
   • Clear the Enable replenishment for this warehouse checkbox.
     

4. Select Save.

5. Repeat steps 2 - 4 for each desired warehouse.

If many warehouses need to be updated, you can import the changes in a CSV file to save time. Learn more about importing warehouses.

6. Update items (items and warehouses per item)

When you enable replenishment, Sage Intacct automatically performs these actions:

• Enables all existing inventory items, supplies items, and stockable kits for replenishment.
• For each item, sets the replenishment method and replenishment values on the Vendor history tab, using the default replenishment method that's selected on the Configure Inventory Control page.
• For each warehouse that's listed on the General tab for the item, turns on overriding the replenishment method and values on the Vendor history tab. Sage Intacct sets the replenishment method and replenishment values for each warehouse using the default replenishment method that's selected on the Configure Inventory Control page.

  So by default, when replenishment is enabled, the replenishment information at the item-warehouse level on the General tab is used to determine whether to replenish the item in that warehouse. You can change the replenishment information for each warehouse or turn off the warehouse override to have the values on the Vendor history tab used instead.

As you update the items, keep the following considerations in mind.

• The replenishment fields that are displayed vary depending on the Replenishment method that is selected. The values you enter for these fields drive the replenishment calculations the system uses to suggest whether to reorder the item, the vendors that can be ordered from, and the quantity to reorder.
• For each item, either turn off replenishment for the item or change the replenishment information on the Vendor history tab, as needed.
• When performing the replenishment calculations for the Replenish inventory page, Sage Intacct first looks for replenishment information at the item-warehouse level. Any replenishment information that's specified for a warehouse is used to determine the demand of the item for that warehouse; if the override is turned off for the warehouse, the replenishment information on the Vendor history tab is used instead.
• Sage Intacct uses the replenishment information from the Vendor history tab to determine the demand of the item for the warehouses that are not listed in the item, unless the Replenish an item only for the warehouses listed in the item record checkbox is selected in the Configure Inventory Control page. When that option is on, the item is not considered for replenishment in those warehouses.

1. Go to Inventory Control > Setup > Items.

2. In the Items list, select Edit next to the desired inventory item or stockable kit. The Item Information page appears.

3. On the Vendor history tab enter the applicable information:

   1. Units of measure default. The unit of measure for these replenishment fields:

      • Safety stock
      • Maximum order quantity
      • Reorder point
      • Quantity to reorder
      • The quantities in the fluctuating demand forecast for the item, if one exists

      The default is the base unit of the item's UOM group.

   2. Safety stock. The extra quantity you want to have in inventory to avoid stockouts. The default is 1. Valid values are 0 and positive integers.

   3. Replenishment method. The default is the value of the Replenishment method default field in the Configure Inventory Control page.

      If the Replenishment method is Demand forecast by fluctuating values, you'll need to create a fluctuating demand forecast for the item. You can define the fluctuating demand forecast now or later. Learn more about Defining fluctuating demand forecasts in a later step in this topic.

   4. Maximum order quantity. The suggested maximum quantity of this item to order. The default is blank, which means there is no maximum. Valid values are blank and positive integers.

      In the calculations, the Maximum order quantity is not a hard upper limit. The system might suggest ordering a little more than the maximum quantity so the suggested quantity to purchase is at least the vendor's minimum order quantity and is a multiple of the economic order quantity. The user can always override the suggested Quantity to purchase in the Replenish inventory page or Supplies inventory replenishment page.

   5. Reorder point and Quantity to reorder. When the current net inventory falls to the reorder point plus the safety stock, the item is triggered for reorder. These fields appear only when the Replenishment method = Reorder point:

      • Reorder point. The default is 1. Valid values are blank and positive integers. If you leave the field blank, the system uses a value of 1.

      • Quantity to reorder. The default is 1. Valid values are blank, 0, and positive integers. If you leave the field blank, the system uses a value of 0.

        In the calculations, the system might suggest ordering a little more than reorder quantity you enter so the suggested quantity to purchase is at least the vendor's minimum order quantity and is a multiple of the economic order quantity. The user can always override the suggested Quantity to purchase in the Replenish inventory page or Supplies inventory replenishment page.

   6. Vendor entries table. At least one vendor must be specified for the item to be considered for replenishment. For each vendor the item can be purchased from, enter the following information:

      Enter the values for the quantity fields expressed in the vendor's unit of measure.
      • Preferred vendor: The vendor to display as the default in the Replenish inventory or Supplies inventory replenishment page when Preferred vendor is selected for Vendor ordering option. If the item can be purchased from multiple vendors, users can select another vendor from the Vendor name dropdown in the Replenish inventory or Supplies inventory replenishment page before generating the purchase orders.
      • Vendor ID
      • Stock number. This field is currently for information only and is not pushed to the purchase order.
      • Lead time (days): The number of days it takes the vendor to deliver this item to you after receiving the order. The default is the Lead time default (days) from the vendor record. Valid values are blank, 0, and positive integers.
      • Demand forecast during lead time: The quantity of this item that's expected to be sold during the lead time. (This field is applicable only when Replenishment method = Forecast demand by single value). The default is blank. Valid values are blank, 0, and positive integers.
      • Economic order quantity: The quantity that makes the cost of reordering this item the most economical by minimizing total holding costs and total ordering costs. The default is 1. Valid values are blank, 0, and positive integers.
      • Vendor minimum order qty: The minimum quantity of this item the vendor is willing to sell. The default is 1. Valid values are blank, 0, and positive integers.
      • Units of measure: The units of measure the vendor sells this item in. For example, the vendor might sell in dozens instead of each. The default is the base unit of the item's UOM group.

4. On the General tab, scroll down to the Warehouse section, and do both of the following:

   • For each warehouse already defined for the item, select Show Details to open the line-item detail area. Either change the replenishment information as needed for the warehouse or turn off the warehouse override to have the replenishment information on the Vendor history tab used for replenishing the item in that warehouse instead.

   • Add any new warehouses that need replenishment information that's different from what's defined for the item in the Vendor history tab.

     If the majority of the warehouses for the item can use the same vendors with the same replenishment attributes (such as Lead time), define the vendors in the Vendor history tab and leave the Vendor entries table for the warehouses empty. The system will use the vendors from the Vendor history tab in the replenishment calculations. If a warehouse needs different vendor information, enter the specific vendor information for the warehouse.

5. Select Save.

6. Repeat steps 2 - 5 for each inventory item.

To disable an item for replenishment:

Disabling an item for replenishment excludes it from the replenishment calculations and from being suggested for reorder on the Replenish Inventory page.

1. Go to Inventory Control > Setup > Items.

2. In the Items list, locate the desired item and select Edit next to it. The Item Information page appears.
3. On the Vendor history tab deselect Enable replenishment for this item.

4. Select Save.

5. Repeat steps 2 - 5 for each item you want to disable.

7. Define fluctuating demand forecasts

You need a fluctuating demand forecast for every item where the replenishment method has been set to Demand forecast by fluctuating values for the item or for any warehouse listed in the item. If you didn't add fluctuating demand forecasts when you updated the items, you can add them now.

You can add the fluctuating demand forecast for an item from a couple of different starting points:

• From the item, either in the Vendor history tab or in the Warehouse section on the General tab for each warehouse that's listed
• From the Replenishment Fluctuating Demand Forecasts page, where you can manually add a forecast one-by-one or use a CSV file to import multiple forecasts at the same time

Learn more about Adding fluctuating demand forecasts.

8. Grant users permission to replenish inventory

Only users with the appropriate permissions can use replenishment. For each user, for the Inventory Control subscription, select the Replenish inventory permissions you want to grant:

• Preview: Access to the Replenish inventory page or Supplies Inventory Workbench for filtering and previewing replenishment information and for creating preview snapshots.
• Generate: Access to the Replenish inventory or Supplies Inventory Workbench for generating purchase orders and to the Replenishment Runs and Replenishment Run pages

Only business users and warehouse users with both the Preview and Generate permissions can generate purchase orders from the Replenish inventory page or Supplies Inventory Workbench.

Learn how to grant users permissions.

9. Optional: Create a Replenishment Snapshot report

Users can create snapshots of the reorder information displayed in the Replenish Inventory page, which can then be used in a custom report. Creating snapshots is useful for analyzing the reorder information in greater detail. You can create a custom report that users can run so they can easily output the data in the snapshots.

1. Go to Customization Services or Platform Services and select Add (circle) next to Custom reports or Reports, respectively. The custom report writer opens.
2. Select the Replenishment Snapshot or Replenishment Snapshot Details object as the primary data source in Step 1.
3. Then select the desired columns, column sequence, and so on. Include a prompt for selecting the Snapshot name when the report is run.
4. Select Save. For easier access, add it to the menu for the Purchasing or Inventory Control application.
5. Let your users know the name of the report.

Learn how to Create custom reports.

Turn off replenishment

You can turn replenishment off at any time. If it's turned off, all the new replenishment fields in the vendors, warehouses, and items no longer appear. If you turn replenishment back on, all the replenishment settings that were in effect for your vendors, warehouses, and items when replenishment was turned off are restored.

1. Go to Inventory Control > Setup > Configuration.

2. In the Replenishment section, deselect the Replenishment checkbox.

3. Select Save.