Warehouse automatic gain/loss

[Former Member]

Hello all

We have many articles in our warehouse where carton qty's in the global system do not match those in Australia.  Consequently we are constantly short picking.  SAP automatically sends these short picks to the gain/loss bin and we are having to daily move stock back to the pick bins.  I'm sure there is a way to deal with this and I would appreciate any tips anybody has.

[Former Member · Accepted solution]

Hi

This could be controlled thought your Difference Indicators (OMLX). Try the following settings.

Whs = ???

DiffID = Any currently unused single alpha/numeric

Desc = "Full Qty not req'd" ..... for example

Ty = 'Blank'

Diff.Bin = 'Blank'

TO = 'Blank'

Srce Bin = 'Checked'

Update TR = 'Blank'

Variance = 'Blank'

Now when ever a short pick occurs, as long as the user assigns this Diff Ind , the short pick qty will be automatically returned to the source bin and not to the differences bin.

If you are using outbound deliveries and haven't set you config to update the delivery qty with the pick qty from the TO, there will be a miss match on the OBD between the delivery qty and the picked qty which would have to be manually amended before you could complete any associated Shipment.

Hope this helps

Cheers

A

[Former Member · Accepted solution]

Thank you A. At what level does this occur?

[Former Member · Accepted solution]

Hi

Errrmmm, not sure I understand the question but as a best guess at the answer, material/quant level.

Cheers

A

[JL23 · Accepted solution]

Probably TO item level

[Former Member · Accepted solution]

Is this something I can set for all Outbounds going forward or does it need to be set per TO/Outbound/picker or STO?

Forgive me, have only been using for 3 weeks

[Former Member · Accepted solution]

Hi

Once created, the difference indicator can be used against any pick TO. The user just needs to select the Diff ID when confirming a difference.

Cheers

A

[Former Member · Accepted solution]

Where do I change the Difference Indicator settings?

[Former Member · Accepted solution]

When we do a short pick there is only 1 option, to confirm the loss/gain.  There is no other option on the RF.

[Former Member · Accepted solution]

You create one via OMLX as mentioned earlier

Cheers

A

[JL23 · Accepted solution]

if you create a difference indicator without number (just blank) then this will automatically the default for all differences.

[Former Member · Accepted solution]

Is this something we can create at  our WMS level or something that needs to be handled by our global team (tech suppport)?

[JL23 · Accepted solution]

This is customizing and needs to be done by a consultant for WM module

[Former Member · Accepted solution]

Where do I make this change?

[Former Member · Accepted solution]

Ok I see. Thank you so much.  I will see if we can get this done.  At the moment our gain/loss bin is getting more and more articles in it and it is impossible to know what are legitimate losses.  I am getting real tired of moving articles back to their source bins

[Former Member]

First the carton quantity can be maintained with a different value for your warehouse without impacting global data, in your WM2 view material master the rounding quantity is your case quantity and it can be maintained for your specific warehouse / 120 storage type view (no impact out side your warehouse).

Second I would not recommend allowing confirmation with differences during picking activity at all. If there is any reason to confirm with a difference the reason needs to be investigated and corrected. The efficiency gained by allowing the picker to select whatever quantity they want to confirm does not justify the risk of picking errors. In most cases there may be inventory in some other location that could be picked so its better to have a supervisor check for existing stock and get it picked then to allow the picker to short pick on the fly. Also if a pick needs to be confirmed with a difference that indicates an incorrect stock balance (usually) that should be investigated and corrected by inventory control staff so just allowing the picker to change the qty and move on isn't helping anything (especially if your day is spent moving stock that might not even exist back into a bin ). On that topic; if that is in fact what you are doing (just moving the stock back into the source bin with no investigation) then you life will never be easy while your at work. Each case needs to be investigated and fixed or after some months your going to have mostly incorrect inventory and eventually be unable to process orders because nothing is where is its showing in the system.

"constantly short picking" is a sign of a much bigger problem then your confirm with differences settings, its more of a fundamental process issue (or issues) then a system setting issue

Just my opinion

[Former Member]

If my understanding is correct, the problem with the qty is that one of the global warehouses they delivery to (Austraiia in this instance) has a different qty requirement to every other Country within the organisation and as such, changing the rounding qty in the MMR would have a greater negative impact.

With regard to short picking, you are of course correct in terms of short picks due to stock imbalances however, this requirement is for a known and accepted Global variance and as long as you assign a specific difference indicator outside of the default 'blank' (so that the picker has to consciously 'log' that it is a 'variance pick', thus making the picker accountable) this is an acceptable solution in terms of process and audit.

Cheers

A

[Former Member]

Thank you all for your help.  Moving from our old custom designed very simple system to SAP has been very challenging for all.  I know it will get better as we start to work things out.

[JL23]

What tips are you expecting?  Isn't it obvious that you have to correct your master data in one of systems to match with the other system? followed by a physical inventory to get the quantities right

[Former Member]

It is obvious but not allowed.  We are part of a global group that does not allow changes. 

[Former Member]

Apart from carton qty's we also short pick for other reasons (get rid of loose items, picking small 3 unit packets instead 3 packets and 1 loose).  We supply 4 duty free stores daily and carry 20,000 lines and moved to SAP 4 weeks.  It has been tough.

Tips? what do others do about automatic gain/loss where they have intentionally short picked?

[JL23]

>>It is obvious but not allowed. <<

If you are part of a global group then you are probably audited by one of big global players like we, I can't believe that they accept that you keep master data wrong and manage grievances.

What is wrong has to be corrected, the sooner the better. I wonder how you still can do business if you are not allowed to do corrections, the issues will grow every day a bit more. I remember our very first project almost 20 years ago were we had to shut down a WM system and the warehouse too for some days and needed a restart because the inconsistencies could not get fixed anymore