Compiere provides flexible material policy (FIFO/LIFO) at Company/product category/product level
What is Material policy ?
Material Policy defines the movement of goods from the warehouse. In the warehouse, products are arranged in lots. First, we need to define the material policy so during shipment product is picked from the warehouse based on the material policy. If we do not define the material policy then products are picked up randomly by the users so we don’t have control over the movement of goods.
Compiere provide us following material policy which is used during shipment generation to pick the products. Material policy is based on the movement date.
- FIFO – First In First Out (Product which comes in first will goes out first).
- LIFO – Last In First Out (Product which comes last will goes out first).
Material policy can be configured at the product category level if it is not configured then it will use the material policy configured in the Tenant screen.
For the both material policy, it is possible to pick the goods based on Product expiry value. i.e. During shipment products with early expiry will be processed first. If the expiry date is not provided then it will check for the Lot Priority No and finally, it will look for Lot creation value which in turn based on Material policy i.e. Either FIFO/LIFO.
Compiere Material policy will give the control over the movement of goods. With Product Expiry combination, it will not allow sending the expiry goods to the customers.
If the Product has lot & expiry date, then Compiere generate the Customer Shipment as per below table.
| Shelf Life Configured in Business Partner Screen | ||||||||
|---|---|---|---|---|---|---|---|---|
| Product | Lot | Ex Date | Shelf Life | BP | Movement Date | Expected Shelf Life | Actual Shelf Life | Result |
| WOOD 3X4 | Lot1 | 31/10/17 | 180 | 45.00% | 02/08/17 | 400 | 90 | Not Allow to create Shipment |
| Lot2 | 30/09/17 | 180 | 45.00% | 02/08/17 | 400 | 59 | Not Allow to create Shipment | |
| Lot3 | 30/10/18 | 180 | 45.00% | 02/08/17 | 400 | 454 | Allow to create Shipment | |
| Shelf Life not Configured in Business Partner Screen | ||||||||
| Lot | Ex Date | Shelf Life | BP | Movement Date | Expected Shelf Life | Actual Shelf Life | Result | |
| WOOD 3X4 | Lot1 | 31/10/17 | 180 | 02/08/17 | 90 | 90 | Allow to create Shipment | |
| Lot2 | 30/09/17 | 180 | 02/08/17 | 59 | 59 | Allow to create Shipment | ||
| Lot3 | 30/10/18 | 180 | 02/08/17 | 454 | 454 | Allow to create Shipment | ||
Expected Shelf life Formula:
Shelf Life *100/BP => 180*100/45% =>400
Actual Shelf Life formula:
Expiry Date-Movement Date => 31/10/17 – 02/08/17=>90
