Answers
Cycle Count Results
When count is out of tolerance, you should check for:
• Correct location
• Correct lot/serial number
• Correct site
• Correct item number
• Unprocessed transactions
• Activity since count
• As a last resort: perform physical recount
Study Question Answers
1 When ABC classes are calculated by the system, they can be based on SALES or ISSUES and COST or GROSS PROFIT.
2 True. For this reason, it is wise to use the Unplanned Receipt transaction to initialize opening inventory balances.
3 Three places where the location entered on the item master is used:
a The item location displays as the default on all inventory transactions (issues/receipts) for this item, but you can override it.
b It also displays on sales orders as the default location to ship from.
c If the Inspection Required field is No on the item, it also displays on purchase orders as the default receiving location. This location is also the default location from which inventory is backflushed, unless you set up to backflush from the line (work center).
4 True. Expiration date is set automatically as the receipt date plus the shelf life.
5 The four ways picking can be done by: Location, Lot/Serial, Date, and Expire Date.
6 Issue days controls the picking of items about to expire. For example, if Issue days is 10, then any inventory due to expire in the next 10 days will not be picked.
7 False. ABC class can be different by site, but if an item is lot/serial controlled or has a shelf life, this applies to all sites.
8 These types of inventory should be assigned status codes as follows:
|
Inventory Type
|
Available
|
Nettable
|
Overissues
|
*Restrictions
|
|
Raw Material Items
|
Yes
|
Yes
|
Yes/No
|
None
|
|
Lot Controlled Items
|
Yes
|
Yes
|
No
|
None
|
|
Scrap and Reject
|
No
|
No
|
Yes/No
|
ISS-SO, ISS-WO
|
|
Waiting Rework
|
No
|
Yes/No
|
Yes/No
|
ISS-SO
|
|
Toxic Waste
|
No
|
No
|
No
|
ISS-SO, ISS-WO
|
|
Incoming Inspect
|
No
|
Yes
|
Yes/No
|
None
|
Note: The restricted transaction list can include other transactions; this is just an example.
9 152. The physical count of 135 should be increased by quantity issued since the freeze (-42) and decreased by the quantity received (+25). When the count of 152 is used to update inventory, it will add two to inventory (the difference between the frozen value of 150 and the 152 counted). This is correct, since we should have had 133 (150 + 25 - 42) but we in fact counted 135. We found two extra.
10 True.
Workshop Question Answers
For setup you should have set Lot/Serial to L for lot control, S for serial control, and blank for neither.
1 You should always use Receipts – Unplanned to initialize opening balances.
2 Use the Multi field to enter multiple lot/serial numbers, sites, locations, or lot references all on one transaction.
3 Serial numbers should be A4201JJ001-F, A4201JJ002-F, A4201JJ003-F, A4201JJ004-F, and A4201JJ005-F. Note that the system increments the last number string it finds.
4 The inventory status for inspection is probably DOCK or any other that is set up as Available No and Nettable Yes.
5 Transaction history keeps an ISS-TR and a RCT-TR transaction, maintaining complete traceability.
6 Transaction history keeps an ISS-CHL and a RCT-CHL transaction, maintaining complete traceability.
7 Transfer With Lot/Serial Change is the only function that can be used to change a lot or serial number, since this maintains traceability.
8 The system records the count, but does not update inventory.
9 The recount updates inventory and creates a GL transaction to increase inventory value.
10 Discuss error finding with class.