Chapter 83: Receiving Physical Inventory Transactions from PkMS (PKST)

Purpose: Batch sync transactions are transactions from PkMS that represent a physical inventory. Physical inventory counts from PkMS are processed through the PIX ASYNC. Once all of the counts are processed, CWDirect:

• updates the inventory immediately, or

• creates a physical inventory batch which you can process at a later date

In this chapter:

• Performing a Physical Inventory using PkMS

• PkMS Physical Inventory Set-Up

• Mode to Process Sync Transactions

• Before Starting a Physical Inventory

• PkMS PIX Inventory Transaction File

• PkMS Physical Inventory Process

• PkMS Physical Inventory Errors

• Physical Inventory Updates

• Batch Sync Record Reconciliation Report

• Work with Batch Sync Transactions Screen

For more information: See Part A: Physical Inventory Processing for more information on performing a physical inventory in CWDirect.

Note: You can only receive physical inventory transactions from PkMS if you are using version 19 or version 2001 of PkMS.

Performing a Physical Inventory using PkMS

Performing a physical inventory is the process of counting the actual items that you have in a warehouse (or a portion of a warehouse), comparing the quantity counted (or physical quantity) to the on-hand quantity on the system, and updating the system with the correct inventory counts.

You can receive the physical inventory counts from PkMS by processing physical inventory count transaction records (pre-defined transaction code 605, transaction type 01) through the PIX ASYNC. In order to determine when the inventory transactions associated with the physical inventory begin and end, PkMS sends a physical inventory transaction header and physical inventory transaction trailer record.

• a physical inventory transaction header record is processed through the PIX ASYNC indicating any P type transactions processed after this header are part of the physical inventory.

• a physical inventory transaction trailer record is processed through the PIX ASYNC indicating all the transactions associated with the physical inventory have been processed. This trailer record indicates how many transactions are associated with the physical inventory.

PkMS Physical Inventory Set-Up

PkMS set-up:

• create a warehouse cross reference at the Create Warehouse Cross-Reference Screen. The warehouse cross reference matches a PkMS warehouse to a CWDirect warehouse. This way the system knows the CWDirect warehouse where the physical inventory is being performed.

• create an inventory transaction cross reference at the Create Inventory Transaction Cross Reference Screen. The inventory transaction cross reference matches a PkMS transaction code and transaction type to a CWDirect inventory transaction. This way the system knows the type of inventory transaction to perform.

• Physical header or trailer (pre-defined transaction code 608, transaction type 13)

• Physical inventory count (pre-defined transaction code 605, transaction type 01)

• create an item cross reference at the Work with PkMS Item Cross Reference Screen. The item cross reference identifies what information received from PkMS represents the item and SKU codes. Note: If the PkMS Use SKU Retail Reference (I86) system control value is set to Y, instead of using the PkMS item cross reference menu option to identify the CWDirect item and SKU, the system uses the SKU retail reference number field in the SKU file to identify the CWDirect item number and SKU code in the PkMS messages.

• define the appropriate values for the PkMS system control values. See Installation, Chapter 26: Setting Up Warehouse Interface System Values.

• define a primary location in the Primary location field at the Create Item (Base Information) Screen or Create SKU 1 of 2 (With Overrides) Screen. This way the system knows which location for the item is included in the physical inventory. The system only includes the primary location for the item in the physical inventory; any other location defined for the item is not included in a physical inventory count transaction from PkMS.

Physical Inventory system control value set-up:

• 9999999 in the Number of Outstanding Physicals (A05) system control value. This defines the number of physical inventories that can be pending at one time.

• 1 in the Number of Counts Required per Physical (A13) system control value. This defines the number of physical counts that must be entered before you can update the system with the actual inventory counts. 1 indicates that you can enter one, two, or three counts before you perform an update. The on-hand quantity for each item location is always updated with the last count entered.

• N in the Upload Counts (A12) system control value. This indicates you are not updating the system with inventory counts using an RF device.

• the Assign Batch Numbers (A07) system control value. This indicates that the system assigns a batch number to a physical inventory worksheet.

• 9999999 in the Batch Size (A08) system control value. This defines the number of item locations that can be included in each physical inventory batch.

• SHEETS in the Entry Method (A01) system control value. This defines you are using worksheets when entering counts into the system.

• SHEETS in the File Generation Output (A09) system control value. This defines the form you use to record physical inventory counts. SHEETS indicates the system prints worksheets by location code.

Mode to Process Sync Transactions

The Mode to Process Sync Transactions (G77) system control value determines how physical inventory counts from PkMS are processed by the PIX ASYNC.

If the Mode to Process Sync Transactions setting is...	the PkMS physical inventory process is...
INTERACTIVE	The system processes physical inventory counts from PkMS as soon as they are processed through the PIX ASYNC. • If the Process PkMS Overlays as Adjustments (G78) system control value is set to Y, the system performs adjustments instead of overlays when a physical inventory count transaction is processed by the PIX ASYNC. • If the Process PkMS Overlays as Adjustments (G78) system control value is set to N or blank, the system performs overlays when a physical inventory count transaction is processed from PkMS. Required set-up: Set the inventory transaction cross reference for a PkMS physical inventory transaction (pre-defined transaction code 605, transaction type 01) to correspond to a CWDirect O (overlay) inventory transaction code.
BATCH	The system processes physical inventory counts from PkMS in a batch and performs the physical inventory update in CWDirect when you run the Physical Inventory Evaluation Report with Update. Required set-up: Set the inventory transaction cross reference for a PkMS physical inventory transaction (pre-defined transaction code 605, transaction type 01) to correspond to a CWDirect P (physical) inventory transaction code.
BATCH/AUTO	The system processes physical inventory counts from PkMS in a batch and performs the physical inventory update in CWDirect immediately once all of the records in the physical inventory batch are processed through the PIX ASYNC. Required set-up: Set the inventory transaction cross reference for a PkMS physical inventory transaction (pre-defined transaction code 605, transaction type 01) to correspond to a CWDirect P (physical) inventory transaction code.
Note: When the Mode to Process Sync Transaction system control value is set to BATCH or BATCH/AUTO, the system ignores the value defined in the Process PkMS Overlays as Adjustments (G78) system control value.

Before Starting a Physical Inventory

It is recommended that you take these steps before you process a physical inventory from PkMS:

• confirm or void all outstanding pick slips in all included item locations

• complete or cancel all replenishments, batch inventory transactions, and work orders for all included item locations

• clear the billing data queue

Taking these steps will help prevent inventory transaction errors, such as a negative on-hand quantity, or physical inventory miscounts.

When you generate a physical inventory using PkMS, the system does not set the Physical freeze field for each item location included in the physical inventory to Y, regardless of how you set the Freeze Item During Physical (A10) system control value. This means you must be careful to not:

• include the item location in another physical inventory

• use the item location in primary location replenishment

• use the item location in warehouse replenishment

• receive inventory to the item location

• process any inventory transaction for the item location

 

You can change the setting of the Freeze field to Y through the Create Item Location Screen or Change Item Location Screen.

Note: Any item location whose Item transaction pending flag is set to Y will be included in the physical inventory.

PkMS PIX Inventory Transaction File

Physical inventory header and trailer records: This table shows the required fields in the PIX Inventory Transaction file to perform a Physical Inventory transaction. To perform a physical inventory, PkMS sends 2 physical inventory transaction records; the first record (PK action code 01) represents the physical inventory header record and the second record (PK action code 02) represents the physical inventory trailer record. P type inventory transactions processed between the header and trailer records represent physical inventory counts.

The pre-defined PkMS transaction code and transaction type for a Physical inventory header and trailer transaction is 608-13.

Field Name	Field Length	Description
Processed flag required	1	U = unprocessed P = processed
Date processed	9	Updated by the PIX ASYNC once the record is processed. CYYYYMMDD format.
Time processed	7	Updated by the PIX ASYNC once the record is processed. HHMMSS format.
DCR required	9	The date the record was created in CYYYYMMDD format. Example: 20000303
TCR required	7	The time the record was created in HHMMSS format. Example: 112003
Transaction type required	3	The PkMS transaction type. You must set up an inventory transaction cross reference so that the PIX ASYNC can translate the PkMS transaction type to a CWDirect inventory transaction. Example: 608
Transaction code required	3	The PkMS transaction code. You must set up an inventory transaction cross reference so that the PIX ASYNC can translate the PkMS transaction code to a CWDirect inventory transaction. Example: 13
Transaction# required	9	Inventory transaction number. Example: 123405
Sequence number required	5	Inventory transaction sequence number. Example: 12305
Company required	3	CWDirect company code. You can leave this field blank if you enter the company code in positions 21-23 of the Custom reference field. Example: 555
PIX reference 3 required for physical inventory trailer record	20	Positions 1-15 represent the physical inventory record count. If the number of P type inventory transactions processed between the header and trailer records differs from the count number, the records are placed in the Sync Transaction file.
PK action code required	2	01 indicates a physical inventory header record. 02 indicates a physical inventory trailer record.
Custom reference	30	Enter the company code in positions 21-23 if you have left the Company field blank. This value represents the CWDirect company code. Example: 213
Pgm ID	10	Updated by PkMS. Example: UUR5445
Job name	10	Updated by PkMS. Example: EXTR_JOB
Job number	6	Updated by PkMS. Example: 08453
User ID	10	Updated by PkMS. Example: MMAE
AS/400 user ID	10	Updated by PkMS. Example: MMAE

Physical inventory count transaction record: This table shows the required fields in the PIX Inventory Transaction file to perform a Physical Inventory count transaction. The pre-defined PkMS transaction code and transaction type for a Physical inventory count transaction is 605-01.

Field Name	Field Length	Description
Processed flag required	1	U = unprocessed P = processed
Date processed	9	Updated by the PIX ASYNC once the record is processed. CYYYYMMDD format.
Time processed	7	Updated by the PIX ASYNC once the record is processed. HHMMSS format.
DCR required	9	The date the record was created in CYYYYMMDD format. Example: 20000303
TCR required	7	The time the record was created in HHMMSS format. Example: 112003
Transaction type required	3	The PkMS transaction type. You must set up an inventory transaction cross reference so that the PIX ASYNC can translate the PkMS transaction type to a CWDirect inventory transaction. Example: 605
Transaction code required	3	The PkMS transaction code. You must set up an inventory transaction cross reference so that the PIX ASYNC can translate the PkMS transaction code to a CWDirect inventory transaction. Example: 01
Transaction# required	9	Inventory transaction number. Example: 123405
Sequence number required	5	Inventory transaction sequence number. Example: 12305
Company required	3	CWDirect company code. You can leave this field blank if you enter the company code in positions 21-23 of the Custom reference field. Example: 555
Style required	8	CWDirect item, based on the item cross reference you set up. Example: PKST01
Inv adj qty required	13.5	The physical inventory count. Example: 10
Inv adj type required	1	A = add
Whse required	3	The PkMS warehouse. You must set up a warehouse cross reference so that the PIX ASYNC can translate the PkMS warehouse to a CWDirect warehouse. Example: P40
Custom reference	30	Enter the company code in positions 21-23 if you have left the Company field blank. This value represents the CWDirect company code. Example: 213
Pgm ID	10	Updated by PkMS. Example: UUR5445
Job name	10	Updated by PkMS. Example: EXTR_JOB
Job number	6	Updated by PkMS. Example: 08453
User ID	10	Updated by PkMS. Example: MMAE
AS/400 user ID	10	Updated by PkMS. Example: MMAE

PkMS Physical Inventory Process

The system performs this physical inventory process if the Mode to Process Sync Transactions (G77) system control value is set to BATCH or BATCH/AUTO.

When you receive physical inventory counts from PkMS, the counts are considered the final count of inventory; however, you have the option of entering a final count in CWDirect if the Mode to Process Sync Transactions (G77) system control value is set to BATCH.

1. When the PIX ASYNC reads the beginning sync record (header record), the system determines if any records exist in the Sync Transaction file. You can review records in the sync transaction file at the Work with Batch Sync Transactions Screen.

• If records exist in the Sync Transaction file, the system creates a PIX error record (Invalid Sync Transaction) for each record in the file. You cannot perform a physical inventory until the records in the Sync Transaction file are cleared.

• If records do not exist in the Sync Transaction file, the system continues with the physical inventory.

2. The system determines if a physical inventory batch exists.

• If a physical inventory batch exists, the system creates a PIX error record (Invalid Sync Transaction). You cannot perform a physical inventory until the existing physical inventory batch is processed or canceled.

• If a physical inventory batch does not exist, the system continues with the physical inventory.

3. The system ends the PkMS BILLING ASYNC if it is active.

4. The system writes a record to the Sync Transaction file for each P type inventory transaction record that is processed through the PIX ASYNC.

Note: If you receive a physical inventory count for an item location from PkMS and that location also includes other items that do not receive a physical inventory count, the system reduces the on-hand quantity for the item to zero.

5. When the system reads the ending sync record (trailer record), the system compares the record count defined on the trailer record against the actual number of records in the Sync Transaction file.

6. The system generates the Batch Sync Record Reconciliation Report, which lists the total records counted in the Sync Transaction file and the record count defined on the trailer record.

• If the total records counted in the Sync Transaction file does not match the record count defined on the trailer record, the system creates a PIX error record. The records will remain in the Sync Transaction file and will need to be cleared before you can process a physical inventory from PkMS.

• If the total records counted in the Sync Transaction file match the record count defined on the trailer record, the system ends the PkMS PIX ASYNC, if it is ACTIVE.

7. The system compares the items in the Sync Transaction file to the Item Warehouse file.

• Any items in the Item Warehouse file that are not in the Sync Transaction file and have a CWDirect on-hand quantity greater than 0 will be added to the physical inventory batch with a count quantity of 0.

8. The system:

• creates the Physical Inventory file (similar to generating a physical inventory through the Generate Physical Inventory File menu option).

• creates the Physical Inventory Batch file (similar to enter counts through the Enter Physical Inventory Counts menu option).

• deletes the records in the Sync Transaction file.

• generates the Physical Inventory Evaluation Report by Item/Location.

• does not perform physical inventory updates, if the Mode to Process Sync Transactions (G77) system control value is set to BATCH.

• performs physical inventory updates, if the Mode to Process Sync Transactions (G77) system control value is set to BATCH/AUTO.

PkMS Physical Inventory Errors

If an error occurs, the system writes a PIX transaction error indicating the physical inventory could not be processed.

Invalid Sync Transaction

 

The system will not process a physical inventory from PkMS if:

• a physical inventory count transaction will cause the on-hand to go negative. The system includes the pending quantity for an item location when determining if a physical inventory count will make the on-hand quantity for an item location go negative.

• the number of physical inventory counts from PkMS does not match the count defined for the physical inventory trailer record.

• a physical inventory batch already exists in CWDirect.

You can review PIX transaction errors in the Working with PkMS PIX Transaction Errors (WPTE) menu option.

Reporting: The Physical Evaluation Variance Report by Unit Variance prints when the update process is complete. This report lists the item locations that were updated, the new on-hand quantity, and the variance amount.

The variance amounts are reported by:

• units

• unit percentage

• cost

• cost percentage

At this time, the Physical Inventory On Hand Quantities Report, the Unprocessed Physical Inventory Records Report, and the Reserved Quantity Greater Than On Hand Report print as well.

Canceling a Physical Inventory: If the Mode to Process Sync Transactions (G77) system control value is set to BATCH, you can cancel a physical inventory batch with Canceling a Physical Inventory (CPHI). When you submit the cancellation, the system deletes the records from the Physical Inventory file.

Physical Inventory Updates

Once the physical counts have been entered and the variances have been reviewed, the live files can be updated with the results of the physical inventory. This occurs when you run the Physical Inventory Evaluation Report with Update; see Printing the Physical Inventory Evaluation Variance Report with Update.

The system does the following to determine the new on-hand quantity for each item location included in the physical inventory when the update is performed:

1. The on-hand quantity in the Physical Inventory file is subtracted from the last physical count entered for the item location to determine the variance amount.

2. The variance amount is either added to or subtracted from the on-hand quantity in the Item Location file to determine the new on-hand quantity as a result of the physical inventory.

The variance amount from the snapshot file, not the last physical count, was posted to the live files. This update method allows you to conduct business during the physical inventory process if you need to. However, you should do so with care, because it is possible to create errors or miscounts.

File updates: When you process the physical inventory update, the system updates the following:

• The On-hand quantity in the Item Location file and the On-hand quantity in the Item Warehouse file.

• The Last physical date in the Item Location file.

The system writes an inventory transaction history record for each item location updated as a result of the physical inventory (the transaction type is P). If there were any item locations with zero quantities when you began the physical inventory, and whose counts were not changed during the process, the system deletes these item location records at this time and writes a record of this action to the Inventory Transaction History file as well. However, the system does not delete an item’s primary location as a result of physical inventory updating.

Unreserving reserved order lines: When you perform the physical inventory update, if the on hand quantity for an item warehouse is less than the reserved quantity, the system:

• unreserves order detail lines starting with the most recent reservation, using this calculation:

 

quantity reserved - quantity on hand = quantity to unreserve

 

• once the necessary reserved quantity of the item is unreserved, the system determines which warehouse to backorder the unreserved quantity against; see Unreserving Inventory using Warehouse Lists for more information on how the system determines which warehouse to backorder the item against.

The system will reduce the reserve quantity to equal the on-hand quantity if necessary. The system will not bring the reserve quantity below the printed quantity.

If the Mode to Process Sync Transactions (G77) system control value is set to BATCH or BATCH/AUTO, the system reduces the on-hand quantity to equal the printed quantity when necessary. However, if the system needs to adjust the on-hand quantity, the record displays on the Unprocessed Physical Inventory Report.

Example: 1

Item Warehouse quantity	On-hand	Reserved	Backorder	Printed
	90	60	0
Item Location quantity	On-hand			Printed
	90			60

If the counted quantity is 55, the system:

• does not change the on-hand quantity since the counted quantity is below the printed quantity.

• flags the physical inventory count record as in error.

• displays the record on the Unprocessed Physical Inventory Records Report. This report contains records that have been partially processed if the Mode to Process Sync Transactions (G77) system control value is set to BATCH or BATCH/AUTO. You can use this report to determine when the on-hand could not be adjusted as low as indicated by PkMS.

 

Example: 2

Item Warehouse quantity	On-hand	Reserved	Backorder	Printed
	90	60	0
Item Location quantity	On-hand			Printed
	90			60

If the counted quantity is 55, the system changes the quantities to:

Item Warehouse quantity	On-hand	Reserved	Backorder	Printed
	60	60	10
Item Location quantity	On-hand			Printed
	60			60

PkMS Batch Sync Transaction file: The system creates a record in this file for each physical inventory count transaction record from PkMS.

Field Name	Description
Company	The company defined on the PkMS physical inventory count transaction in the PkMS PIX Inventory Transaction file.
Item number	The item you are counting in this physical inventory.
SKU code	The SKU of the item.
Warehouse	A code for the warehouse for which you are performing a physical inventory.
Quantity	The physical inventory count for this item in the item warehouse. When you perform a physical inventory using PkMS, the system sends a count only for the location defined in the SKU file.

Physical Inventory Batch file: The system performs these updates to the Physical Inventory Batch file if the Mode to Process Sync Transactions (G77) system control value is set to BATCH or BATCH/AUTO.

Field Name	Description
Company	The company from the Sync Transaction file.
Control #	1
Batch #	1 If more than 1 warehouse is defined in the Sync Transaction file, the system increments this value by 1.
Processing date	The date this record was created.
Pre count final total	0
Pre count 1 quantity	0
Pre count 2 quantity	0
Status	P
Count 1 status	blank
Count 2 status	blank
Final count status	Y
Current batch total	0
Final count required	N
Date generated	The date this record was created.
Update physical count	Y
Count 1 by user	blank
Count 2 by user	blank
Final count by user	blank
Enter 1 by user	blank
Enter 2 by user	blank
User	PIXASYNC
Generated by user	PIXASYNC

Physical Inventory file: The Physical Inventory file contains the item locations that are being counted during a physical inventory, and the perpetual count (on-hand quantity) for the item location at the time the physical inventory is generated. This file is used to:

• record the item quantities that are counted in each location

• compare the quantity counted to the on-hand quantity

• update the system with the new count information

The system performs these updates to the Physical Inventory file if the Mode to Process Sync Transactions (G77) system control value is set to BATCH or BATCH/AUTO.

Field Name	Description
Company	The company from the Sync Transaction file.
Item number	The item from the Sync Transaction file.
SKU code	The SKU for the item.
Warehouse	The warehouse code from the Sync Transaction file.
Location	The location from the SKU file for this item.
LPN number	0
Count 1 quantity	0
Count 1 ticket #	0
Count 1 status	N
Count 2 quantity	0
Count 2 ticket #	0
Count 2 status	N
Final count quantity	The quantity from the Sync Transaction file.
Final count ticket #	0
Final count status	Y
On hand quantity	The on-hand quantity defined for the item warehouse.
Created	N
Final count required	N
Zone	The zone defined in the SKU file for this item.
Aisle	The aisle defined in the SKU file for this item.
SKU collating seq	0
Control #	The control # from the Physical Inventory Batch file.
Batch #	The batch # from the Physical Inventory Batch file.
User	PIXASYNC
Enter by count 2	blank
Enter by final count	blank

Work with Batch Sync Transactions Screen

Purpose: This screen displays physical inventory transactions from PkMS that are in error because the count defined on the physical inventory trailer record differed than the actual record count received from PkMS.

Records display here only if the Mode to Process Sync Transactions (G77) system control value is set to BATCH or BATCH/AUTO.

In order to process another physical inventory from PkMS, you must clear the records from the Sync Transaction file.

How to display this screen: Enter PKST in the Fast path field at the top of a menu or select Work with Batch Sync from a menu.

PKR0081 DISPLAY Work With Batch Sync Transactions 7/25/00 10:06:47 KAL Co. WHS Item COLO STYL SIZE Quantity 104 PHYS4837 300 104 PHYS484 BLUE 239 104 PHYS484 RED 312 Bottom F3=Exit F11=Clear Records F12=Cancel F24=Select Company

Field	Description
Whs (Warehouse code)	A code for the CWDirect warehouse associated with the physical inventory transaction from PkMS. Warehouse codes are defined in and validated against the Warehouse file. Numeric, 3 positions; optional.
Item	A code for the item included in the physical inventory. Item codes are defined in and validated against the Item file. Alphanumeric, 12 positions; optional.
SKU	A code for the SKU of the item included in the physical inventory. SKU codes are defined in and validated against the SKU file. Alphanumeric, one 14 position field (full SKU) or three 4 position fields (split SKU); optional.
Quantity	The number of units of this item counted in the warehouse for the physical inventory. Numeric, 7 positions; display-only.

Screen Option	Procedure
Clear the records from the Sync Transaction file	Press F11. You must clear the records in the Sync Transaction file in order to perform a physical inventory based on transactions received from PkMS.