FIFO/PEPS
FIFO (First In, First Out) is an inventory management method that is based on the premise that products that enter inventory first should be used or sold first. In this method, an order of exit or consumption is established based on the temporal sequence of entry of the products.
The timeline plays a fundamental role in the application of FIFO. Each time a product is entered into inventory, the entry date is recorded. As products are needed for use or sale, those that entered first, that is, the oldest in terms of their entry date, are removed.
It is extremely recommended to process FIFO considering periods equal to or less than 1 month of transactions, since longer periods can generate performance problems due to the volume of transactions involved, and therefore the success of the execution is not assured.
INITIATE INVENTORY PROCESSING (STARTING FIFO)
The
Initiate Inventory Processing
screen is used to initiate the First In First
Out (FIFO) consumption of receipts by shipment transaction. This step is where shipments consume inventory in a FIFO manner (oldest receipts are shipped out first). Once all transactions have been validated and assigned, use this screen to process all inventory transactions within the system.To begin the FIFO process, click
Process FIFO
. Shipments will then consume receipts in FIFO order.
Validation Error Messages
If the transactions in current processing have not been successfully validated, navigating to the
Initiate Inventory Processing
screen will result in an error message with a link to the Transaction Correction
screen as seen below. Clicking this link will redirect you to the Validation Status and Report
screen.In the
Validation Status and Report
screen, you can edit and revalidate any invalid transactions.
Once all transactions are validated, assigned, and FIFO has processed successfully; the screen will update with a message showing
Step Name – Status: FIFO – Completed
followed by a timestamp of when FIFO successfully completed.
Roll Back FIFO
Since FIFO transactions cannot be edited after finalization; it is important to check for inventory imbalances between the in-house ERP system and ONESOURCE IMMEX prior to finalizing FIFO. If any variances need to be corrected, open the
Initiate Inventory Processing
screen from the Assignment
menu and click Roll Back FIFO
.
Once the rollback is complete, you can determine the source of the variance and resolve the issue.
Finalize FIFO
After FIFO has successfully completed and all imbalances have been resolved, click
Finalize FIFO
. Once FIFO has been finalized, transactions cannot be edited or re-assigned. Please make sure to thoroughly audit your data before clicking Finalize FIFO
. Once FIFO is finalized, you may then process reports as necessary.
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