How You Set Up PAR Location Management

Periodic Automated Replenishment (PAR) enables facilities that do not store perpetual inventory (such as hospitals) to perform locator-level replenishment.

With PAR location management, organizations can perform locator-level stock counting for both quantity and not quantity tracked subinventories. If the stock level falls below the target on-hand quantity for the locator, inventory generates the appropriate replenishment document based on the item sourcing for the subinventory.

Considerations

Consider the following when setting up PAR location management:

You have the option to configure PAR parameters at the item subinventory or item locator level. The level at which you chose to specify PAR parameters depends on how you store and count your items. This determines the level to setup the PAR replenishment related attributes.
Determine if the PAR location will be quantity tracked or non-quantity tracked. Typically, PAR locations are non-quantity tracked. However, there can be cases where the PAR location is quantity tracked.

Set Up

To set up PAR location management:

Define the ship-to location associated with the PAR location.

In the Setup and Maintenance work area, use the Manage Locations task:
- Offering: Manufacturing and Supply Chain Materials Management
- Functional Area: Inventory Management
- Task: Manage Locations
The location you define represents the Deliver-to Location on the final put away or deliver transaction.

Define these details for the PAR location:
- Location Name
- Location Code
- Main Location Address
- Ship-to-Location (for replenishment)
Set up PAR locations.
1. In the Setup and Maintenance work area, use the Manage Subinventories and Locators task:
  - Offering: Manufacturing and Supply Chain Materials Management
  - Functional Area: Inventory Management
  - Task: Manage Subinventories and Locators
  PAR locations are modeled as subinventories.
  
  Fields that you need to enter when defining a PAR location include:
  - Subinventory Name
  - Subinventory Description
  - Subinventory Type
  - Location
  - PAR Location check box
  - Replenishment Count Method
  - Default Replenishment Count Type
  - Sourcing
  - PAR Settings
2. Select the PAR location check box to configure the subinventory as a PAR location.
  
  You can enable the PAR Location check box regardless of whether the subinventory is quantity tracked or not quantity tracked. You must select this check box in order to enable PAR level counting.
3. Once you have selected the PAR location check box, you can choose the Replenishment Count Method and Default Replenishment Count Type.
  
  Replenishment Count Methods include Two Bin, Request, and Count.
4. When you select Count as the Replenishment Count Method, you must enter a value in the Default Replenishment Count Type field.
  
  Values include Order PAR, On-Hand Quantity, Order Quantity, and Not Planned.
5. Define the replenishment source using the Sourcing region of page. You can define your sourcing details at various levels starting with the item subinventory, subinventory, inventory item, and inventory organization levels.
  
  The sourcing documents include:
  - Purchase requisition (purchase order)
  - Interorganization internal material transfer
  - Intraorganization internal material transfer
  - Movement request
6. Finish defining your PAR locations by completing the PAR settings region of the page.
  
  Settings include:
  - Replenishment Count Type
  - PAR level
  - PAR Maximum Quantity
  - PAR level UOM
  - Count Tolerance Percentage
  - Count Required check box
The final step in the PAR replenishment process is to account and record the transaction.

You can account and record PAR transactions using subledger accounting. You can configure accounting rules to transform subledger transactions into detailed subledger journal entries automatically.

To implement subledger accounting for a PAR location you must first create a mapping set. Mapping sets provide an efficient way to define a segment or account combination value for one or more transaction or reference attribute values.