Working with internal replenishment orders (Inventory Control)

Related topics

Internal replenishment orders are sales orders and corresponding purchase orders with the order type internal replenishment order (IRO), that are to be sent between two or more internal warehouses within the same company. The normal sales and purchase order handling within Distribution is used for this purpose.

Prerequisites
To be able to use the Internal Replenishment Order (IRO) functionality the following fields need to be completed in the applicable file:

File/Table	Fields
Business partner file	Internal cust/supp Set to YES which means this specific customer or supplier cannot be used for any other purpose than IRO handling. Default SO type The order type that is going to be used when the automatic generation of IRO is run.
Item file	Supplied from whs Enter the warehouse code indicating the warehouse from which this item in this warehouse is supplied. If a warehouse code is entered here, the supply to this warehouse is made internally from the defined warehouse. This item/warehouse combination will then appear on the Internal replenishment suggestion. Planned from whs Enter a code indicating if the item should be planned from the demanding or the supplying warehouse. Valid codes are 1 (demanding warehouse) or 2 (supplying warehouse). Internal lead time Enter the internal lead time, which represents the lead time at the warehouse when processing Internal replenishment orders/suggestions to other supplied warehouses. Internal pack size Enter the internal pack size that you want stock units rounded up to a multiple of the value, which is applied on stock units in Internal replenishment suggestions when sending something to this warehouse.
Item file, warehouse information	Each warehouse that is going to send or receive stock needs the following information: Internal customer Enter the customer number that represents this warehouse throughout the sales order handling. Internal supplier Enter the supplier number that represents this warehouse throughout the purchase order handling.
Purchase order type table	IR order type Set to YES to denote that only this order type can be used for internal orders.
Sales order type table	IR order type Enter the purchase order type that will be used together with this specific sales order type.

Supplying and demanding warehouses

The IRO process differs depending on if you plan your items from the supplying or the demanding warehouse. The value in Planned from whs in the Item file defines if the warehouse is demanding (1) or supplying (2).

IRO creation from supplying warehouse

Two alternatives exist:

Each IRO will, after creation, generate one sales order from the sending warehouse and one or more corresponding purchase orders for the receiving warehouses.

IRO creation from demanding warehouse

This function makes it possible for demanding warehouses to enter purchase suggestions or purchase orders to the supplying warehouse when there is a shortage for an item. Using this function the demanding warehouse can handle the internal purchase orders as if these were external.

Items that are planned from the demanding warehouse can be handled in purchase suggestions. If Manufacturing is installed and activated, the planning functions MRP and Pull planning can also be used.

Note: Internal replenishment suggestions are not used when planning is made form the demanding warehouse.

The process of creating an IRO from a demanding warehouse contains the following steps:

Follow up functions

All stock that have been internally supplied can be tracked and reported using the following functions:

Sales statistics
Purchase statistics
Report Writer function
Note: Internal orders can be included or excluded as a selection parameter.

Enquiries and printouts

IRO overview enquiry
Sales order enquiry
Purchase order enquiry
Sales order printout
Purchase order printout