Replenishment Journals for BOM and Components

A bill of materials (BOM) is a product that consists of multiple items, and these items that are needed to create the BOM are known as components. In the food and beverage sector within the hospitality industry, a BOM is more commonly known as a recipe and the components are the ingredients that make up the recipe.

You can perform the replenishment calculation of the BOM and components with a two-step approach, where the demand of the BOM items will first be calculated in the BOM Replenishment Journal, and then in the second step, the system will calculate the replenishment quantities of the components in the Component Replenishment Journal, based on the demand of the BOM and the number of each component needed to assemble the BOM.

While the calculation result in the BOM Replenishment Journal serves as the basis for the component's demand calculation, it is also used to calculate the Assembly Order proposals based on the current stock situation and the demand in the stores, for BOM items that are made to stock. The Component Replenishment Journal, on the other hand, calculates the Purchase Order and Transfer Order proposals for the components. The calculation of the journals depends on the Replenishment Item Quantity (RIQ) table, which needs to be calculated up front.

Each journal has a Template and a Batch:

The Template defines what should be calculated in the journal and it provides filters for items, stores, vendors, and more.
The Batch defines when the journal should be calculated. This is only applicable to BOM Replenishment Journals as the calculation of Component Replenishment Journals are always initiated from their linked BOM Replenishment Journal.

Refer to the articles Replenishment Templates and Replenishment Batch for a more detailed description of the fields in these tables.

Add Items to Journal

When the replenishment calculation of the BOM and components is done in a two-step approach, the lines for the BOM items will first need to be added to the BOM Replenishment Journal, before the demand of the components can be calculated in the Component Replenishment Journals.

Add Items to BOM Replenishment Journal

The BOM Replenishment Journal can be populated by manually adding lines to the journal by executing the Add Items to BOM/Component Journals function. The function will then run the Add Items to Replenishm. Jrnl. report.

In the Add Items to Replenishm. Jrnl. report's request page:

If you select the Calculate Inventory option in the BOM Options FastTab, the system recalculates the RIQ table for the BOM items before executing the replenishment process of adding items to the BOM Replenishment Journal.
Use the Create Calc. Log Lines option to determine if logging should be activated for the replenishment process, to show the detailed steps and formulas that the system has used to calculate the suggested quantity in the BOM Replenishment Journal.
Use the Create Assembly Orders field to determine if the Assembly Orders should be automatically created or put on the batch posting queue after the BOM Replenishment Journal calculation.
If the BOM Replen. Template has been set to Calculate Component Journal Automatically, you will see an additional Component Options FastTab, and the system will also add lines to all the linked Component Replenishment Journals after the execution of the BOM Replenishment Journal.
- If you select the Calculate Inventory option in the Component Options FastTab, the system recalculates the RIQ table for the components before executing the replenishment process of adding items to the Component Replenishment Journal.
- If you select the Skip 0 Lines option, the replenishment process will not insert lines in the Component Replenishment Journal, if the result of the calculation is 0.
- Use the Create Calc. Log Lines option to determine if logging should be activated for the replenishment process, to show the detailed steps and formulas that the system has used to calculate the suggested quantity in the Component Replenishment Journal.
- Use the Create Purchase/Transfer Orders field to determine if the order documents should be automatically created or put on the batch posting queue after the Component Replenishment Journal calculation. If the Use Default from Template option is selected, the system will use the settings from the respective Component Replen. Templates for the handling of the order documents creation.

The process steps through the RIQ table according to the filtering of the BOM items in the Replenishment Template or Add Items to BOM/Component Journals function. The report inherits the filtering from the Replenishment Template record, but you can alter the filtering for that specific execution of the Replenishment Journal.

Add Items to Component Replenishment Journal

The Component Replenishment Journal can be populated by manually adding lines to the journal by executing the Add Items to Component Journal function. The function will then run the Add Items to Replenishm. Jrnl. report.

In the Add Items to Replenishm. Jrnl. report's request page:

If you select the Calculate Inventory option, the system recalculates the RIQ table for the components before executing the replenishment process of adding items to the Component Replenishment Journal.
If you select the Skip 0 Lines option, the replenishment process will not insert lines in the Component Replenishment Journal, if the result of the calculation is 0.
Use the Create Calc. Log Lines option to determine if logging should be activated for the replenishment process, to show the detailed steps and formulas that the system has used to calculate the suggested quantity in the Component Replenishment Journal.
Use the Create Purchase/Transfer Orders field to determine if the order documents should be automatically created or put on the batch posting queue after the Component Replenishment Journal calculation.

Alternatively, the Component Replenishment Journal can also be populated with the following methods:

Using the Calculate Component Journals function in the linked BOM Replenishment Journal. The system adds lines to the Component Replenishment Journal based on the results that are pre-calculated in the BOM Replenishment Journal.
Using the Add Items to BOM/Component Journals function in the linked BOM Replenishment Journal, when the BOM Replen. Template has been set to Calculate Component Journal Automatically. The system will first calculate the BOM Replenishment Journal, and then proceed to add lines to the Component Replenishment Journal based on the BOM demand.

The process steps through the RIQ table according to the filtering of the components in the Replenishment Template or Add Items to Component Journal function. The report inherits the filtering from the Replenishment Template record, but you can alter the filtering for that specific execution of the Replenishment Journal. Only components and locations that are relevant to the BOM items in the BOM Replenishment Journal will be included in the calculation.

When a Component Replenishment Journal is opened, if its linked BOM Replenishment Journal has been updated, a notification is displayed to inform you if there is a need to recalculate the Component Replenishment Journal to get the updated result. In the notification, you can click Do not show this message again to stop the notification from getting displayed. You can reactivate the notification by deselecting the Disable Notification (BOM Journal Update) setting in the Replen. Setup.

Scheduler Calculation

The Replenishment Journal can also be populated by using the Scheduler job. It is convenient for companies to have the RIQ calculation and population of the Replenishment Journals to be scheduled to run overnight, so that everything is ready for buyers when they show up for work.

The Replenishment Batch record is used to control when the BOM Replenishment Journal should be populated by the Scheduler Job. Whether or not the linked Component Replenishment Journals will be calculated depends on the Calc. Component Jrnl. Automatically setting in the BOM Replen. Template. Irregular Replenishment Journals are set to Manual and you can execute them as needed.

Replenishment Journal Lines

The Replenishment Journal Lines show the items that the Add Items to Journal function created, and each line is a total line for the item number. You can access the Replenishment Journal Detail records by drilling down the Quantity column in the Replenishment Journal Lines. The detail lines show the quantities per individual store/location and variant.

If you change the value of the Quantity field, the system changes the quantity of the Replenishment Journal Detail records according to the proportion of the previous quantity in the records.

If you create a record manually to the journal, you must also create the Replenishment Journal Detail lines for each store/location and variant. The total quantity of the detail lines will update the quantity of the journal line when you exit the detail lines.

In the Component Purchase Replenishment Journal, for an item with Select Lowest Price Vendor activated, when you change the value of the Quantity or Unit of Measure Code field in the Replenishment Journal Lines, the system will recalculate the lowest price vendor immediately if the Recalc. Vendor on Item Quantity Change setup has been activated in Replenishment Template. Alternatively, you can use the Recalc. Vendor (All) and Recalc. Vendor (Line) actions in the Replenishment Journal Details page to recalculate the lowest price vendor manually.

For more details about the actions, see To work with lowest price vendor in the Replenishment Journal Detail page.

Note: These lowest price vendor recalculation features will be disabled, when the Skip Cost Recalculation on Qty. Change setup is activated in the Replen. Setup.

Replenishment Log Lines

If you want to check in detail the calculation steps that the system performed, you can do so in Calculation Log Lines.