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Generating Receipts in Item Plan
Generating Receipts in Item Plan

How to use the Generate Receipts feature to generate receipt plans and guide Purchase Order creation.

Updated over a week ago

Overview

Once you have generated your sales forecasts in Item Plan, the next step is to go through the Receipt Generation process.

Receipt Generation will generate an ideal receipts flow for your business, using:

  • Existing sales forecast

  • Current on hand and on order inventory

  • Replenishment information (e.g. order cycle, MOQ, safety stock targets)

Before we dive into the steps to generate receipts, below is a high level visuals that shows how your Receipts Flow and Inventory Levels fluctuations as an output of the receipts generation process.

Please refer to this visualization to better understand some of the concepts referred to in the Walkthrough.

Walkthrough

To start this process, use the check box to select the items that you would like to generate receipts for. Right click on the selected line, hover over "x rows selected", and click Generate Receipts. In the pop up, you can validate how many items you have selected.

Order Cycle Start Date

First select the Order Cycle Start Date, which is the earliest date that you can place Purchase Orders, which will in most cases be today.

Time Frame

This represents the time frame for which receipts will be generated. This will default to the time frame selected in your view, and in most cases you won't need to change it.

Replenishment Configuration

Using Defaults

Ideally, in most cases, you would have your replenishment configuration already defined in the system. You can see here on how to configure this. If you have replenishment configuration in, you can just generate receipts using defaults.

Overriding Defaults

If you are overriding defaults, you can configure each replenishment configuration detail by setting the values to apply. See below for what can be configured.

Order Cycle

Order Cycle is the frequency in weeks that replenishment should be run. This should be set in weeks. For example, if you would like to receive products once every 4 weeks, you would be putting in 4 here.

Lead Time

Lead Time should be entered in weeks and represents the time between placing a PO and the items being ready for sale (i.e. in DC date). For example, setting the Lead Time to 13 weeks will only modify receipts starting 13 weeks out.

Safety Stock

Safety Stock should be entered in weeks and represents the minimum level of weeks of supply Toolio will make sure to maintain. For example, setting Safety Stock to 3 will instruct Toolio to generate a receipt plan that will maintain at least 3 Forward Weeks of Supply. Please see our blog post, to figure out how to pick the safety stock targets.

Minimum Order Quantity (MOQ)

MOQ should be entered in units and represents the Minimum Order Quantity for the selected items and MOQ Group (see below). Note: If the recommended receipt is less than the MOQ, Toolio will round up to the MOQ you’ve entered.

MOQ Group

For MOQ Group, select Style, Color, or Size to represent the level your MOQ is based on. For example, if the MOQ entered above is at the Color level you would select that option.

Additional Options

Flow On Order to Receipt

Checking this box will indicate that until the first lead time, all On Order units should be marked as received. For example, if your lead time is set to 13 weeks, Toolio will move all existing On Order values into your Receipt Plan for the 13 weeks after the start of the selected time frame. Typically, this box should be checked.

Constrain Sales by Inventory

Checking this box will update your forecasted sales projections based on inventory constraints. For instance, if you have a 13 week lead time and only have 100 units available to sell, Toolio will limit your sales projection to 100 units for the next 13 weeks. Typically, this box should be checked to ensure your sales projections are realistic.

Once you are comfortable with the inputs, click Generate to create a receipt plan for the selected items within the configured time period. If you have checked the box to Constrain Sales by Inventory, your sales forecasts will be updated as well.

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FAQ

How are Locations used during Receipt Generation?

If you have location enabled in Item Plan, your receipts will be generated respective to each location:

  1. Toolio calculates excess inventory at the total level by pooling all locations using your receipt generation inputs.

  2. Toolio will the repeat the following steps for each location:

    1. Calculate the required receipts for the location using your receipt generation inputs

    2. If there is excess inventory at a location and no receipt units are required, Toolio will not recommend additional units to be received at the location, or it's source location. Toolio will instead deduct the receipts amount from excess inventory.

  3. Toolio will roll receipts plan up to the source level so receipt plans will only be shown for source locations, even though sales and inventory metrics can continue to be defined at selling locations. Please see here for

I'm getting the following error message: "Please create replenishment configuration on organization level to use variant configurations."

By default, the Toolio platform will reference using your designated replenishment set when generating receipts. If replenishment data has not been entered into the platform, you will want to select in Advanced options under Replenishment Configuration to Override Defaults. If not, the system will give the GraphQL error listed above. Here is a guide on how to create a replenishment set.

What is the round up logic if MOQ is not met?

If the generated receipts are less than the MOQ, Toolio tops up the generated receipts so that the MOQ at the appropriate level is met. This top up happens based on the forecasted sales for the next Order Cycle + Safety Stock worth of weeks, rather than just scaling up the receipts per size, which ensures that the inventory position gets closer to the ideal size curve.

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