Item Planning Review calculates historical usage from Item Ledger Entries. In some environments, the default Item Ledger Entry types may not accurately represent consumption for some processes because of how inventory moves between locations.

Business case

A common manufacturing setup is to purchase raw materials into a storage location and then transfer those materials to a separate production location.

For example:

• LOC1 is the storage or receiving location.
• LOC2 is the production location.
• Raw materials are purchased into LOC1 and transferred to LOC2 as needed.
• Consumption is posted from LOC2.

If Item Planning Review is configured to include Transfer entries when calculating average usage, both sides of the transfer are included. Transfer Item Ledger Entries contain both positive and negative quantities, so the movement into one location can offset the movement out of another location.

Item Planning Review supports an Item Ledger Filter specifically to restrict which Item Ledger Entries are analyzed. The filter is found on the Advanced FastTab of the Item Planning Review Setup page.

For scenarios where inventory movement out of a location should be treated as usage, you can add a Quantity filter of <0. This causes Item Planning Review to consider only Item Ledger Entries with negative quantities.

The source code applies the configured Item Ledger Filter directly to the Item Ledger Entry record before applying the date, item, location, and other calculation filters.

Configure Item Planning Review to use negative quantities

1. Search for and open Item Planning Review Setup.
2. Expand the Advanced FastTab.
3. On the Item Ledger Filter field, select the AssistEdit button (...).

   The Item Ledger Filter is designed to restrict the Item Ledger Entries analyzed by Item Planning Review.

4. In the filter page, review the existing Entry Type filter.

   By default, Item Planning Review includes:

   Assembly Consumption | Assembly Output | Consumption | Output | Negative Adjmt. | Sale

   You can modify the Entry Type filter if additional types, such as Transfer, need to be included.

5. Select + Filter and add the Quantity field.
6. Enter the following filter:

   <0

7. Close the filter page to save the Item Ledger Filter.
8. Run Item Planning Review again.

With this configuration, only negative Item Ledger Entry quantities that also meet the other configured filters are included in the usage calculation.

Example

For a company that transfers raw materials from LOC1 to LOC2, the Item Ledger Filter could include Transfer as an Entry Type while also specifying:

Quantity < 0

This allows the outbound side of the transfer to contribute to usage without the corresponding positive transfer entry offsetting it.

This is particularly useful when the same Item Planning Review configuration needs to measure both production consumption and inventory transferred out of a stocking location.

How this affects Average Usage

Item Planning Review totals the quantities of the Item Ledger Entries that remain after the configured filters are applied. The calculation then reverses the sign when calculating usage, so a negative Item Ledger Entry quantity produces a positive usage value.

For example, if the qualifying Item Ledger Entries total -100, Item Planning Review treats that as positive usage when calculating Average Usage.

Because the Quantity <0 condition is part of the Item Ledger Filter, positive Transfer entries are excluded before the usage calculation is performed.