Material requisitions are used for requesting material for internal demands, as opposed to customer orders that fulfill external demands. A material requisition is entered in the Material Requisition window and can be entered by anyone who is entered in the application as an Internal Customer.
Operations, like reserving, issuing, and returning material, are performed from the Material Requisition window, through the web interface (add-on), or a handheld device (add-on). Detailed information about inventory part availability can easily be reached, which can be very useful before reserving parts, and pick lists, useful for the warehouse personnel, can be printed.
Material requisitions are used when internal demands can be fulfilled either by issuing material from inventory locations or by creating purchase requisitions. For example, when a salesman goes to visit a prospect customer and takes some samples of the product range, i.e., samples that might be returned or given away.
The supply code in the Default Mtr Req Supply field on the Inventory Part/Acquisition tab determines the default method.
A material requisition line, with the supply code Inventory Order, fulfills the demand by issuing material from internal inventory locations.
A material requisition line with the supply code Purchase Order results in a purchase requisition. A purchase requisition represents internal knowledge of demands and is presented to the purchasing department when they place the purchase orders. Purchase information can easily be viewed from the material requisition.
Examples of area of use: When the non-stored parts are internally demanded, when the material requisition affects the inventory level so that the reordering point is reached (order proposal), or when the requested part is not available in stock.
Information about inventory part availability can easily be retrieved. This will be useful, for example, before you make a reservation. You can get planning information such as safety stock and order points, inventory part information such as lead times and standard costs, and statistical information such as inventory balance during a certain period of time. You can also view supply and demand information, inventory balance development over time, and statistics regarding the available quantity of a part that can be used for planning.
Material requisitions are built in two levels, consisting of a material requisition header and one or several material requisition lines. The information entered in the material requisition header affects all lines. The web interface (add-on) provides a wizard for entering material requisitions, which facilitates the procedure even further. By using a handheld device, you can create, reserve, issue, and close a material requisition in one step. This is especially useful when something is broken and needs to be repaired immediately, requiring the material to be issued without any delay.
The supply code determines whether the demand will be fulfilled by issuing from inventory locations or by creating purchase requisitions. A material requisition can be entered on all the sites that are connected to your user record. Information about the total value of the material requisition is always displayed in the material requisition header. You can override the due date in the header by entering a new due date directly in the appropriate field on the line. If the condition code feature has been made available for the desired part, you can specify a condition code.
When a material requisition is created, the order number is generated by the application, and both the header and the lines acquire the Released status.
Pre-postings can be defined, both in the header and in the lines. Pre-postings defined in the header are automatically inherited by the lines if the lines are entered after the pre-posting in the header is defined. If both the header and the lines are already entered and saved, pre-postings need to be defined on each line. Any pre-postings defined on a material requisition with the supply code set to Purchase Order will be carried over to the purchaser requisition line and the purchase order line.
The status of the material requisition can be any of the following:
When a material requisition is first created, it will be given the Released status. Subsequently, it is possible to alter the status back to Planned if necessary. When some lines have been delivered, the status will be Partially Delivered, and when all the lines have been delivered the status will be Closed, depending on the workflow of the material requisition. However, once a requisition has been stopped and has Stopped status, it is not seen as a demand by the application.
Reserving means allocating the needed material situated in one or several inventory locations. You can either reserve all the material at the same time or perform a manual reservation line-by-line. When doing a manual reservation, you can specify a quantity to reserve and define a specific inventory location. Serial numbered parts should be manually reserved. You cannot reserve a higher quantity than the quantity available in stock.
Before performing a reservation, you can request detailed information about a specific part in stock by using the Available to Reserve right-mouse button option. This is a quick method for checking inventory part availability. Examples of information found in this view are the total quantity on hand, the total quantity reserved, any condition codes, ownership of the part, etc.
When the parts are reserved, the line changes from the Release status to the Reserved status (the header will still display the Released status ). Once a line is reserved, it cannot be deleted. Deletion can be done only for lines in the Planned or Released status.
Un-reserving means canceling a reservation. You can only un-reserve lines that have the Inventory Order supply code. Un-reserve is done by entering a negative quantity to reserve, in the same window as the manual reservations are done. If all the reserved parts are un-reserved, the status will be set back to Released.
A pick list is used to inform the picking staff of what and how much to pick and from what inventory location. The material requisition line must be reserved before a pick list can be printed. Pick list reports contain information such as order numbers, part numbers, inventory locations, any serial numbers, due dates, delivery dates, and quantities to pick.
Issuing material means picking the ordered material from an inventory location. The parts need to be reserved before you are allowed to issue the material. You can either issue all the material at the same time or perform a manual issue, for example, you can issue a lesser quantity than reserved or issue line-by-line. If all the parts have been issued, the status changes to Closed. If a partial issue is done, the status will be Partially Delivered. You can close the line if you decide that you do not need the remaining quantity.
Once a line is issued, it cannot be deleted. Deletion can be done only for lines in the Planned or Released status.
Un-issuing means returning the unused parts back to an inventory location. This operation will not lead to any status change. The quantity returned cannot exceed the issued quantity.