Exercise - Set up inventory policies for an item model group
Scenario
As an inventory manager, you must create item model groups with certain inventory policies to ensure that rules are in place for handling your inventory transactions that help streamline your business processes. For this lab, you must be using the Contoso demo data and working in the USMF company.
Set up inventory policies for an item model group
To configure inventory policies for an item model group, follow these steps:
In the company USMF, go to Inventory and warehouse management > Setup > Parameters > General tab.
Set the Reserve ordered items toggle to Yes.
Go to Inventory management > Setup > Inventory > Item model groups.
Select New on the Action Pane.
In the Item model group field, enter FIFO.
In the Name field, enter First In-First Out.
Expand the Costing method & cost recognition FastTab. Select Stocked product, Post physical inventory, Post financial inventory, and Accrue liability on product receipt.
Note
A check mark should show next to the selected features indicating that they are turned on.
In the Inventory model field, enter FIFO.
Expand the Inventory policies FastTab.
Select Financial negative inventory. By selecting this policy, you're turning on negative financial inventory for this item model group.
Select Quarantine management. By selecting this policy, you're specifying that items that are associated with this item model group are subject to rules and requirement for quarantine management.
In the Item sales reservation field, select Default.
Select Production scheduled end date in the Validate batch expiration on field.
Select No check in the Approved vendor check method field.
Select Save and close the page.