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Bin Transaction Correction Definitions

Distributor reference explaining Correction bin transactions in Encompass (Correction3, 8, 9, 10, 11, 12): why the system adjusts bin inventory and how to avoid them. Requires v22.04+.

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Written by Bailey Naas-Thornton

Minimum Version Required: 22.04

Steps

What are Correction Bin Transactions?
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Correction Bin Transactions (Bin Trans) are the system’s way of making sure that inventory is staying as accurate as possible across all methods of inventory movement.

The goal is to have Correction bin trans occur as infrequently as possible, as Corrections are usually an indication of misaligned inventory movement. Because there are different situations that could lead to a Correction, there is a different number corresponding to each type of correction that inventory could need. The system is safe-guarded against creating situations where Corrections are needed, but Correction bin trans provide a safety net in the case of unexpected behavior.

Definitions and examples

Correction3
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  • Adjusts bin inventories when Verified Inventory ≠ Bin Inventories.
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  • These types of corrections occur when the SUM of Bin Inventories, or live inventory, does not equal the SUM of Purchased Inventory minus Verified Sales. Correction3 Bin Transactions ensure that live inventory being reported matches the value of inventory officially owned.

  • The delivered value in the audit pulls from: Inventories.Delivered - Loaded Load Sheets where Invoiced Bin Trans have occurred
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    ​EXAMPLE: Inventory has been “Invoiced” out of the system — Invoiced Bin Trans have been created, but then the invoice is deleted without reciprocating or negative Invoiced Bin Trans getting created to put inventory back into the system. A Correction3 Bin Trans would help put the Inventory back.

Correction8
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  • Moves inventory to a user-interactive Bin when inventory is orphaned in the Staging Bin, which is not a Bin Users can directly interact with in the Warehouse Handheld.
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  • The Staging Bin is a conceptual Bin used to hold inventory that has been Picked, but is still waiting to be Loaded onto Load Sheets. The only way to add inventory to this bin is by picking, and the only way to remove it is by loading or unconfirming a pick. Because of this, any inventory stuck in the Staging Bin has to be moved by the system via a Correction8 Bin Trans.
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    ​EXAMPLE: A pallet is picked and awaiting loading, but then gets deleted. This would orphan the pallet’s inventory in the Staging Bin, calling for a Correction8 to shift the inventory to a Bin where a User can interact with it manually.

Correction9
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  • For use in Scan Based Trading (SBT), compares the customer's delivered invoices and scanned sales to the inventory in their SBT Customer bin, then adjusts inventory if needed.
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  • The SBT Customer bin is a conceptual bin used to hold inventory that has been sold to a retailer but has not yet been reported as a sale by the retailer based on scan data. The only way to change inventory quantities in this bin is by delivering an invoice to the retail customer, or by receiving scanned sales depletion data via EDI. Because of this, any inventory errors have to be adjusted by the system via a Correction9 Bin Trans.
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    ​EXAMPLE: An order is delivered to the retail customer, but the related load sheet is left in the loaded status. SBT Customer bin inventory should have been increased during truck return, but since this did not occur, Correction9 increases SBT Customer bin inventory that weekend.

Correction10
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  • Removes Bin Inventories for Non-Inventory Products that get Picked.
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  • If picking is occurring for a product, there will always be Bin Trans created, and Bin Trans always add or subtract from Bin Inventories. In the case of a Non-Inventory Product that needs to be picked, this would leave a negative Bin Inventory for the Product. Correction10 Bin Trans adjust those unnecessary bin inventories back to 0, since Inventory is not actually being tracked.
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    ​EXAMPLE: Picking sets of disposable coasters or cups. Typically these are items that get added to pallets for delivery, but don’t actually have inventory tracked in the warehouse. Those products would get picked, then have a Correction10 Bin Trans to reset the Inventory back to 0 since that is not being tracked in the system.

Correction11

  • Manufacturing only. Moves inventory to a user-interactive Bin when inventory is orphaned in the Production Queue, which is not a bin users can directly interact with in the Warehouse Handheld.
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  • The Production Queue bin is a conceptual Bin used to hold inventory that will be used in the production process. Inventory can only be added or removed from this Bin via the Production tools, meaning that anything stuck in the Bin could then only be moved by the system. Correction11 Bin Trans are the record of system moving out of the Production Queue.
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    ​EXAMPLE: A new Production Order is started and Inventory is moved into the Production Queue. The Production Order is then deleted, leaving inventory in the Production Queue with no way to move it. The system would then create a Correction11 to move inventory back to a Bin where users can interact.
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Correction12

  • Directed Replenishment only. Moves inventory to a user-interactive bin when inventory is orphaned in the In-Transit Bin.
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  • The In-Transit Bin is used during the Directed Replenishment process to indicate when inventory has left its “From Bin,” but has not yet made it to the “To Bin” being replenished. In other words, the In-Transit Bin holds inventory that is moving across the Warehouse floor. Inventory should only go into this Bin by completing the first step of Directed Replenishment, and is only be removed from the Bin by fully completing the Replenishment task. If inventory is left in this Bin, the system will move the inventory via a Correction12.
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    ​EXAMPLE: A warehouse user starts a Directed Replenishment task, and indicates to the system that they have picked a product out of the “From Bin.” If the user were to then back out of the task permanently and stop working, that product would be left in the In-Transit Bin, calling for a Correction12 to move it to a Bin where another Warehouse User can interact with it manually.

Best Practices

● Always make sure that processes such as picking, loading, replenishment, or

production are completed if they are started. If the process can’t be

completed, try to make changes from the same tool the process was started in

to properly undo any inventory movement.

● Avoid deleting load sheets, invoices, pallets, move tasks, or production orders

without first checking on any inventory movement that might have already

occurred.

● If a Correction Bin Trans is found in the system without clear reason as to why it

was created, create a Support task for expert advice

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