Suppose you are a manufacturing company that purchases raw material, some of which is hazardous, and finished goods.

The following example outlines a typical set of stock movement rules. The first rule moves hazardous material from the receiving dock into the hazardous stock location. The next rule moves stock to the raw material location, and the third rule moves purchased finished goods to the finished goods location. The fourth rule is a catch-all; it moves all other material to the finished goods location. If you have a series of moves, you can define the priority according to which you want the rules to be run. Kenandy evaluates the rules in order of priority, and determines the pick or putaway location accordingly.

Example 1: Putaway Stock Movement Rules

Stock Movement Rule	Type	Source Doc	Priority	Company	Facility	Class	Locations
Hazardous Material	Putaway	Purchase Order	20	CO1	FA2	Hazardous	Receiving Inspection Hazardous
Raw Material	Putaway	Purchase Order	30	CO1	FA2	Raw Material	Receiving Raw Material
Finished Goods	Putaway	Purchase Order	40	CO1	FA2	Finished Goods	Finished Goods
Other Items	Putaway	Purchase Order	50	CO1	FA2		Receiving WIP Finished Goods

To create a stock movement rule, perform the following steps. Note that each rule has a header, a set of criteria, and a result.

1. From the Stock Movement Rules page, click New.
2. Enter the required information.
3. (Optional) Enter additional information as needed.
4. In the result section, select one or more locations. For example, you can specify a series of locations to represent the flow of material going from receiving, to WIP, to finished goods. The location options available to you depend on the selected Company and Facility.
5. Click Save.

For any stock movement rule to work, you must map the fields in the criteria section to the relevant field in the source document.

1. From the Setup menu, go to Setup > Develop > Custom Settings.
2. Click Stock Movement Rule Settings, and then click Manage.
3. Click New.
4. For each combination of source document and parameter, create a new stock movement rule setting.

The following table lists settings for the default criteria (Company, Facility, Class, Item, Customer) and source documents (Purchase Order (PO), Sales Order (SO), Work Order (WO)):

Stock Movement Rule Settings

Stock Movement Name	Field	Source Document	Source Document Path (Pick)	Source Document Path (Putaway)
Purchase Order-Class__c	Class__c	Purchase Order	Item__r.Class__c	Item__r.Class__c
Purchase Order-Company__c	Company__c	Purchase Order	Company__c	Company__c
Purchase Order-Facility__c	Facility__c	Purchase Order	Delivery_Facility__c	Delivery_Facility__c
Purchase Order-Item__c	Item__c	Purchase Order	Item__c	Item__c
Sales Order-Company__c	Company__c	Sales Order	Company__c	Company__c
Sales Order-Facility__c	Facility__c	Sales Order	Ship_From_Location__r.Facility__c	Ship_From_Location__r.Facility__c
Transfer Order-Company__c	Company__c	Transfer Order	Shipping_Company__c	Receiving_Company__c
Transfer Order-Facility__c	Facility__c	Transfer Order	Ship_From_Facility__c	Deliver_To_Facility__c
Transfer Order-Item__c	Item__c	Transfer Order	Shipping_Item__c	Receiving_Item__c
Work Order-Class__c	Class__c	Work Order	Item__r.Class__c	Item__r.Class__c
Work Order-Company__c	Company__c	Work Order	Company__c	Company__c
Work Order-Facility__c	Facility__c	Work Order	Company__c	Company__c
Work Order-Item__c	Item__c	Work Order	Item__c	Item__c

For each stock movement rule, Company, Facility, and Location (pick or putaway) are required. Depending on your business needs, you can extend the default list of criteria. For example, to handle consigned inventory, you can extend the criteria to include consigned, and then create a rule to move consigned inventory to a consigned location.

1. Create a new custom field on the Stock Movement Rule:
   1. From the Setup menu, go to Create > Objects > Stock Movement Rule.
   2. In the Custom Fields & Relationship section, click New.
   3. Follow the New Custom Field wizard as it guides you through the process.
   4. Click Save to save your work.
2. Create a new Stock Movement Rule Setting to map the new field to the source document. The following example illustrates how to map the new field to the PO Line object, which contains the Consigned checkbox.
   1. From the Setup menu, go to Develop > Custom Settings > Stock Movement Rule Settings, and then click New.
   2. Specify the required information:
      • Name
      • Source Document
      • Source Document Path (Pick)
      • Source Document Path (Putaway)
      • Stock Movement Rule Field
3. Enter additional information as needed.
4. From the Stock Movement Rule Detail page, configure the Consigned field (True), and then activate the rule.

When you receive against a purchase order (or allocate to a sales order), Kenandy evaluates the active stock movement rules, and then determines the pick or putaway location.

Based on the stock movement rules described above, the Purchase Order Receipt page displays the putaway information:

Stock movement rules enable you to define the pick location. However, if the available inventory is in multiple bins with different expiration dates, Kenandy needs a way to know what to pick first. The stock pick criteria enables you to determine the order in which available inventory is picked. For example, you can define the pick criteria based on fulfillment needs such as LIFO, FIFO, or FEFO.

1. From the Pick Sort Criteria page, click New.
2. Enter the required information.
3. (Optional) Enter additional information as needed.
4. Click Save.

Example: Stock Pick Criteria

When inventory is allocated to a sales order line, Kenandy uses the stock movement rule to determine the pick location. In this example, the location has three lots, each with a different expiration date. Kenandy uses the pick criteria to suggest the pick order (ascending Expiration Date).

Similar to stock movement rules, if there is more than one active stock pick rule, Kenandy applies each rule in sequence according to the sort priority.

The following table lists the fields that Kenandy provides. Your system administrator selects the fields that are displayed on your user interface.

Stock Movement Rule Page

Field	Description
Active	A check mark (default setting) indicates that the rule is active.
Class	In addition to specifying the company and facility, you can further specify the criteria by selecting an item class. If this field is blank, the rule applies to all classes.
Company	The company associated with this rule. Each rule must have an associated company.
Customer	This lookup field enables you to select the customer for this rule.
Facility	The facility for this rule. Each rule must have an associated facility.
Item	In addition to specifying the company and facility, you can further specify the criteria by selecting an item from this lookup field. If this field is blank, the rule applies to all items.
Location	The options available depend on the selected Company or Facility.
Priority	Indicates the sequence in which Kenandy processes a set of rules.
Rule Type	This drop-down list enables you to select the rule type. Options include Pick and Putaway.
Source Document	Options include Purchase Orders, Transfer Orders.
Stock Movement Rule Name	The name of the rule.
Unique Key	Priority-Rule Type-Source Document combination.

The following table lists the fields that Kenandy provides. Your system administrator selects the fields that are displayed on your user interface.

Pick Sort Criteria Page

Field	Description
Active	A check mark indicates that the sort criteria is active and available for use by stock movement rules.
Created By	The user who created the stock movement rule.
Company	The company to which the sort criteria applies.
Customer	For sales orders, the criteria can be applied at the company or customer level. If customer is not specified, the sort criteria applies to the company.
Last Modified By	The user who last modified the stock movement rule.
Null Values	Options include First and Last. The null value is used to determine the order in which inventory is picked if the Sort Field value is missing from the inventory. In other words, if you allocate by expiration date, but the expiration date is missing, then the Null Value (first or last) is applied.
Owner	The user name of the owner of the stock movement rule.
Pick Sort Criteria Name	The name of the pick sort criteria.
Sort Field	Options include Quantity, Date Received, Expiration Date, Consigned Owner, Bin, and Lot. Used in conjunction with the Sort Order, these two values determine the order in which inventory is picked. For example, for FIFO methodology, the sort field can be set to Expiration_Date__c and the Sort Order to Ascending.
Sort Order	Options include Ascending, Descending.
Sort Priority	If there are multiple sort criteria, the priority determines the sequence in which they are applied.
Unique Key	Unique key for pick sort criteria.