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.
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.
First, you will need to set the Time Frame. Open the time picker and select the weeks for which you’d like to generate receipts.
Next you’ll need to select the Order Cycle Start Date, which is the earliest date that you can place Purchase Orders.
If the Advanced menu is not exposed, click on the arrow icon. You’ll see the following options:
Order Cycle should be entered in weeks and represents how frequently you would be placing Purchase Orders. For example, if you set this to 4, Toolio will create a receipt plan for once in every 4 weeks.
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 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.
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 in this menu are:
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.
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.