Reorder Settings for Inventory Locations
Within each Inventory Location, you can create and manage Reorder Settings. This allows you to manage your Inventory levels by location, create location-specific order cycles, and automate new Purchase Orders.
Understanding Reorder Settings with PAR Level Rules
In NikoHealth, Inventory Location Reorder Settings are controlled by creating PAR Level Rules. PAR (Periodic Automatic Replacement) Levels are an inventory control system that tells you what levels of inventory you should have in stock in order to fulfill demand. The PAR Level determines the optimum amount of inventory stock needed on hand after each order delivery. When your Inventory hits below your calculated PAR Level, a Purchase Order will be automatically created.
To manage Par Level Rules you can go to:
Management > Corporate Setup > Inventory Locations
Here, you can select an inventory location and click on the Reorder Settings tab.
The Reorder Settings allow you to set:
Vendor: the default supplier the item will be ordered from
Par/Min Qty: the minimum quantity needed before reordering is triggered
Max Qty: the ideal maximum stock level to maintain
Reorder Qty: a fixed quantity to order when stock falls below the minimum
Reorder UOM: the unit of measure used for the reorder quantity
Ordering Cycle: how often Purchase Orders should be generated
Automated Purchase Orders
Reorder Settings along with automated Purchase Orders is a great way to ensure your Inventory levels sustain demand from your customers. If you decide to use Reorder Settings, the system will create automated Purchase Orders according to the Reorder Settings and PAR Level rules defined.
When an item’s quantity falls below the Par/Min Qty, NikoHealth can automatically generate a Purchase Order based on your settings:
If Max Qty is set → restock up to that level
If Reorder Qty is set → order that specific amount
If neither is set → restock back to the Par/Min level
Whether you choose to use the automated Purchase Order functionality or create a Purchase Order on demand, Purchase Orders now have:
Vendor Information
Shipping Information Including Location-specific Vendor Account Number
You can print a Purchase Order or generate it as a PDF to email it to your vendor. When you receive the items you can use this purchase order to scan against to fulfill it.
Set Ordering Cycle
Different items may hit PAR Level minimums at different times. Ordering Cycle allows you to indicate how often you want Purchase Orders created for items that have met the minimum PAR quantity. You can change the Ordering Cycle according to your preference, or indicate the next scheduled date you wish Purchase Orders to be created.
Every: Choose the frequency of reorders. This will be applied to the Period selected.
Period: The time measurement multiplied by Every. For example, selecting a period of one month every 1, will prompt reorders once a month.
Date: Set the start date for your reorder schedule. This will then update automatically based on your settings.
If you want to update existing Purchase Orders when a par level threshold is triggered, toggle Update Open Purchase Orders to on.
Now, if a purchase reorder is triggered for a vendor where a PO is available in "New" status, the items will be automatically added to the existing PO. If this option is not desired, leave the toggle off.