Minimum Version Required: 26.03
Pre-Conditions
Transfer Planner Setup steps need to be completed prior to utilizing the Transfer Planner tool. Please reference the Transfer Planner Setup Help Resource to ensure all steps are completed.
Additionally, the Forecasting tool is tied to the Transfer Planner tool so if utilizing that data will be available within the tool. Not a requirement to use the Forecasting tool to use the Transfer Planner tool. There is a new toggle button to turn off/on Forecast DOI Calculations
Steps
Forecasting and Transfer Planner
How does forecasting tie into the Transfer Planner?
-Setting up target DOI, lead time, and forecasting methods will make the Transfer Planner more accurate.
What if forecasting is not set up?
-Transfer Planner is still usable but suggested transfer and DOI filtering are lost.
Do forecasted sales include what is transferred?
-No, invoices created from the Transfer Planner are not included because transfer-out customers are not included in ‘This Year Sales’ or ‘Forecasted Sales’ in the forecast tool. However, the inventory transferred can still be viewable.
Transfers show as This Year Transfers for the from location
Show as Purchases for the To location
Transfers do not impact forecasted sales
However, transfers do reduce inventory and DOI so the estimated order quantities will be increased
Days of Inventory (DOI) Calculations in Transfer Planner
The User Forecast DOI toggle switch in Transfer Planner will allow DOI to be calculated from Forecast Days of Inventory (DOI), or from available inventory. The Use Forecast DOI toggle switch will be set to TRUE by default.
DOI Calculation when Using Forecast DOI = True:
Before a transfer quantity is entered:
DOI = Forecasted DOI
Forecasted DOI = (Lead Time Days * On Hand Inventory) / Lead Time Demand
After a Transfer quantity is entered:
DOI = (Available - Forecasted Sales for the Period) / (Average Sales / Lead Time Days) Transfer Planner
DOI Calculation when Using Forecast DOI = False:
This option will calculate DOI based on the avg period of 10, 15, or 30 days. DOI = Available Inventory / (Sales / Average Period)
Example:
Available inventory = 804
Sales (last 10 weekdays) = 277
AveragePeriod = 10
DOI = 804/(277/10) = 29
Using the Transfer Planner Tool
1. Product Filters
Most filters are self-explanatory, such as From/To Location, Product, Product Status, Supplier, Brand; etc.
Here is a list of filters that need futher explanation:
Min/Max - From/To DOI - filters on the DOI for the location. For example, if you only want to see anthing with days of inventory greater than 30 for the from location, you can filter on "Min From DOI" 30
DOI Diff - Target DOI - DOI. Note that the Target DOI is set from Encompass Forecasting. For example, setting DOI Diff = From Location > 0 will show a product where the target DOI - DOI is greater than 0.
Use Alternate Location - This filter evaluates the 'Use Alternate Location' setting on the inventory record for the From Location. If alternate locations are set up, this is useful to prevent products from showing in the Transfer Planner when using the alternate locations workflow to pick product.
2. Display Options
Defaults to Cases
Other options: Units, Pallets, Barrels, and Hectoliters
3. Click Search to show Results
4. Suggested Transfer
Order of operations:
Define quantity needed to bring destination location to target
Suggest quantity is round to nearest pallet or layer
Reduce suggestion if source location quantity falls below target DOI
5. Round to Nearest Purchase Unit Percentage
The Round to Nearest Purchase Unit Percentage (RNPUP) field on the Inventory Transfer Rule will ensure purchase units are being transferred.
Example: Cases per Pallet = 144 and Cases per Layer = 16
6. Transfer Quantities
Round to Nearest Purchase Unit Percentage (RNPUP) may conflict with the 'From Location' target DOI.
7. Creating Invoices from Transfer Planner
Routing Method Options:
1) Requested Delivery Date: Create Invoice for date Entered
2) Next Scheduled Delivery Date (Default): Looks at Stops for Transfer Customers
4) Auto Route on or After Requested Date: Looks at Route on or after date entered
9) One Invoice per Load Sheet On or After Requested Date
8. Editing Invoices from Transfer Planner
The Manual Edit section will appear when editing Invoices from the Transfer Planner
Ten-key functionality when adding Products and entering quantities
Transfer Purchases
Purchases are created or synced within 15 minutes after the Invoices are created or updated
Note: Invoice must be in the New status for changes to be seen on Purchase
Picking the Transfer
Route Type: Using a general route type will allow the invoice to be picked as normal
Transfer Route Type: Create specialized pick rules for transfer routes
Load Sequence: Choose whether your transfer should be prioritized above other routes during picking
Picker Cuts: These edits will be sent to purchase once all pallets are marked pick complete
Mispicks: Setting a QA will help ensure that mispicks are caught before loading
Transfer Planner Load Sheet Lifecycle
New | Invoice Creation |
Loaded | Loaded from Delivery Optimizer |
Returned | Automatically Returned |
Balanced | Usually during Route Reconciliation with Delivery Routes. Should be Balanced at $0 |
Verified | End of Day Process |
Transfer Purchase Lifecycle
Ordered | Purchase Creation |
Received | Received on Handheld or ensure the blind count is used if receiving on paper |
Confirmed | Confirmed like any other purchase, but confirm at $0 (usually) |
Verified | End of Day Process |
Accounts Receivable and Payables
Transfers need to be transferred with a price, usually laid-in
Encompass will not create 850) ASN for a $0 Invoice so the Account Receivable will need to be written off at a later time
Take out manual steps and automate this process if you are not billing the other locations or company for the transfers
Automation can be set up to write off AR and AP
Automating the AR Write-Off
Create a Credit Term with Auto AR Write Off Limit and Product
Set Credit Terms on AR Accounts for Transfer Customers
Transfer clearing invoices (with the transfer clearing product) will be created to clear the AR on transfer invoices during the End of Day
Automating the AP Write-Off
Create an AP Term with Auto AP Write-Off Limit and Product
Set AP Terms on AP Accounts for Transfer Vendors
Transfer Clearing Product will automatically be added to Transfer Purchases when confirmed
Fields And Definitions
Transfer Clearing Product: Product used during the transfer process to clear AR & AP
Deposit Area: Group of Customers that all share the same Deposit (keg deposits, bottle deposits, etc.) type charges
Charge (Area): Group of Customers that all share the same charges on Invoices (tax, fees, etc; can also include bottle deposits)
Distribution (Area): Group of Customers that all share the same distribution rights (suppliers/brand families areas, etc.) and Income Area (and Location)
Jurisdiction: Group of Customers that all share the same Jurisdiction Depletion Taxes (only used for Customers that accrue state tax on sale, not purchase)
Purchase Cost Rule: Selection on if, and how, to find and accrue Freight and Other Cost on Transfer Purchases.
Columns within the Transfer Planner Tool:
ID | Product ID |
Product | Product Name |
Location | From Location (Bolded/On Top) To Location (On Bottom) |
Available | = On-Floor Inventory - Pre-Sales Inventory - Allocated Inventory |
Backorder | Backordered quantity |
DOI | Days of Inventory |
Next Received Date | Closest received data from a new or ordered PO |
Next Received Quantity | Quantity to be received on the next receive date |
Forecasted Amount | Forecasted sales for this week plus next week |
DOI Diff | Days of Inventory Difference = Target DOI - DOI |
Suggested Transfer | Quantity where the sending location begins to go below target DOI and the receiving location begins to exceed Target DOI |
Round Down (Button) | Hover over button to see Cases Per Layer & Pallet. Click to decrease amount. |
Round Up (Button) | Hover over button to see Cases Per Layer & Pallet. Click to increase amount. |
Transfer (Open Text Box) | When clicking the Transfer button will automatically fill the boxes with the Suggested Transfer value |
Purchase Unit (Dropdown) | Options: Case, Layer, or Pallet |
Best Practices
Use the Transfer Planner Setup Dashboard to setup the Transfer Planner
Workflow to edit/add/remove products is to edit the Invoice (new status). Within 15 minutes, the Purchase (new status) will be added with the exchange configurations setup.
Product Cost Plans set up for Transfers (Location + Vendor defined) should have Case FOB and Case Deposit Cost set as NULL
Purchase Cost Rule details: Inventory Costing uses the Defaults from the Inventory record (default behavior), Product Cost Plan looks for a Product Cost Plan with Location + Vendor defined, and Do not accrue sets the Freight and Other Cost to $0
DOI Diff filter: Set to no limits if the forecasting dashboard is not being used.
User Alternate Locations: Always set to true if you are not using alternate locations.