Merchandise Distribution: Taking existing stock before buying externally

[Former Member]

In merchandise distribution,

- for pull, when creating a collective purchase order (WF10),

- for push, when generating follow-on document (WA08),

what are the configurations to make the system take the existing warehouse stock into account before trying to procure from an external vendor?

For example (pull), a store creates an STO for 15 EA of article A, and there are 10 EA of it at DC, so the system create a PO for only 5 EA.

For example (push), the quantity of article A specified in allocation table is 15 EA, and there are 10 EA of it at DC, so the system generates a PO for only 5 EA and an STO for 15 EA.

I'm aware that there is a check box "Dels with Stock Reduction" in the site profile, but even if I check it, the system still does not take the existing stock into account before procure externally.

Any suggestion would be appreciated.

VT

[Former Member]

Hello VT, the beauty of these merchandise distribution functions includes:

- To move merchandise more quickly throgh the distribution center.

- To reduce costs for merchandise processing and storage.

None of these functions considers actual DC stock, because they are meant to be used without this stock.

What i´ve seen in companies over the years is that DC stock is sent to the stores or returned to vendor before the implementation of these functions, because one of the mayor goals is to have zero stock of these articles at DC.

Anyway, you can try with creating your own function module for the distribution profile. SAP provides function group WRF4, you can create your own and assign it.

Regards,

Juan Carlos

[mughillain_kuppusamy · Accepted solution]

Hi,

Stock Reduction functionality was developed to take the existing stock into account. This should do the job for you. but this will come during Delivery creation process not during the creation of the Vendor Purchase Order( or the CPO).

WF10 (pull process), the stores get the stock they want. Here DC can use the existing stock. In the Checking Option Tab, you need to provide a checking rule and check the "check procurement".. so the CPO would be created for the remaining quantities. If you do not get anything, then probably the existing stock have been reserved. You can check this with CO09 and entering the same checking rule.

Allocation (Push process) is a where you are trying to allocate goods. So you would always do fresh procurement.

Hope it helps

Mughil