ROLLIER, Charlotte yes, I confirm we must include this exception rule to avoid a wrong calculation of the range of coverage.
the range of coverage is calculated by the formula of average stock / average consumption but normally, a new material has a small consumption in its stock history, so it generates a higher range of coverage and it's wrong.
also, we calculate a provision for slow moving inventories more than 12 months, so we don't have to include a new material that created over the past year.
FYI, this exception rule has been improved recently, the basic date of creation was based on a general view of material master but it has been changed to the plant code view of material master, so now, this exception rule is very useful to get a correct inventory provision.
3 Comments
Yijing (Elaine) Ni
Can we add below information in STEP 2 to except the new material created within one year in MRN1?
ROLLIER, Charlotte
Jae-Chul Han can you confirm that we must update the WW procedure. I saw you rposting in engage but it is not so clear for me. Thanks
Jae-Chul Han
ROLLIER, Charlotte yes, I confirm we must include this exception rule to avoid a wrong calculation of the range of coverage.
the range of coverage is calculated by the formula of average stock / average consumption but normally, a new material has a small consumption in its stock history, so it generates a higher range of coverage and it's wrong.
also, we calculate a provision for slow moving inventories more than 12 months, so we don't have to include a new material that created over the past year.
FYI, this exception rule has been improved recently, the basic date of creation was based on a general view of material master but it has been changed to the plant code view of material master, so now, this exception rule is very useful to get a correct inventory provision.