Enter Commodity Groups

Explanation

This activity is used to define commodity groups for grouping inventory parts. This optional task is to be performed by a system administrator or an equivalent person.

Inventory parts can be categorized and grouped to simplify handling information used for planning purposes. The values entered in the Basic Data for Inventory/Comm. Groups tab can be used in the Inventory Part window to sort parts and to establish default values for minimum periods.

The use of commodity codes is optional, but you can link as many as two commodity groups to an inventory part. Commodity group 1 on the inventory part record is only used to group similar types of inventory parts; the numerical values in the other fields will not default to the Inventory Part/Planning Data tab. You can define any type of commodity group to fit your needs, e.g., electronic parts, parts requiring special treatment, materials used in specific processes, or even something as general as plastics.

Commodity group 2 on the inventory part record can also be used to group parts, but is primarily used to retrieve any default values for minimum periods. This data will default to the Inventory Part/Planning Data tab, where it can be modified. The use of commodity group 2 is useful in the automatic calculation of planning data.

Prerequisites

There are no specific prerequisites for this activity.

System Effects

As a result of this activity:

• A commodity group is created.
• Commodity groups can be used for sorting inventory parts that have the same commodity group in the inventory part's commodity group fields.
• Commodity groups can be used to retrieve any default values for the minimum periods when a commodity group is entered in the inventory part's Comm. Group 2 field.
• These default values (or the values they are subsequently changed to) are used in the Calculate Planning Data process. This process can calculate safety stock, order point, and order quantity for all inventory parts with the Auto Update check boxes selected in the Inventory Part/Planning Data tab.

Window

Inventory Basic Data

Related Window Descriptions

Basic Data for Inventory
Basic Data for Inventory/Commodity Groups

Procedure

1. Open the Basic Data for Inventory window.
2. Select the Commodity Groups tab, then select New.
3. Enter a short code, using no more than 5 alphanumeric characters, and a description of the commodity group.
4. Optionally, you can enter a minimum number of periods in the corresponding field. The calculation of planning data will be based on the values entered here.
5. Save the changes.