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How to analyze the positive and negative variance on DCS.

Question & Answer


Question

How to analyze the positive and negative variance on DCS.

Answer

LPN Positive variance.
Let us say you are counting location Loc1 (which was originally empty) and found lpn LPN1. This will create a positive variance against Loc1.
You have two possibilities.
       
  1. LPN1 already exists in inventory at another location (Loc2)
  2.    
  3. LPN1 does not exist in inventory.
In case of the first scenario, on resolving the variance, system will move the LPN from Loc2 to Loc1. There is no addition or removal
of net inventory and does not require to cancel out anything against Cycle Bin
In second scenario, since new inventory to be created @ Loc1, we will add equivalent Negative inventory in Bin.
LPN Negative variance
Let us say current inv picture in system was that Loc1 has LPN1. User counts and reports no inventory in Loc1. This will create a Negative variance.
Now the user accepts the variance. So we have to remove inventory from Loc1. This means it has to be accounted against Cycle Bin. So we write to Cycle bin.
(At count in function 00510 you have configured it to put on CH. So there will be additional transactions written at that time. Since CH is applicable only to Negative
variance you will see that only for Negative variance)
Loose Negative variance
Exactly similar to LPN Negative variance. On acceptance we need to remove the additional inventory off the location. It gets canceled off against Cycle Bin
Loose Positive variance
This should be similar to scenario 2 in LPN Positive variance. On accepting the variance we create new inventory at Loc1. This should be canceled off against Cycle Bin.

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Historical Number

FAQ2415

Document Information

Modified date:
16 June 2018

UID

swg21518841