PAR Replenishment

I have seen it done with a work around that we call the pseudo-storeroom process. The process is not ideal, but here is how it works:

PSEUDO-STOREROOM PROCESS - KEY NOTES
1. Determine which par that you want to REPLENISH FROM; Create a perpetual location (in IC12) that contains all of the same items; Setup each item as "no charge" to avoid accidental GL implications

2. Perform an inventory adjustment to adds very high on hand balances for each item; something like 99,999; easiest way to do this is to run a physical inventory and enter counts to increase your SOH. (this approach will ensure that the item never "runs out")

3. Update the par locations that require replenishment to use this new pseudo-storeroom as the replenishment source. now, whenever you par these locations, the desired items will source from the pseudo-storeroom and you can print pick lists (or use MSCM pick-for-par) to facilitate picking for these locations

4. You can continue to replenish the source par location using par techniques

5. Every time you make a change to add or inactivate an item in the source par location in IC81.x, you will need to also make a complementary add/inactivation in the pseudo-storeroom location in IC12. Make sure to set the item as a "no charge" and add a phantom stock on hand (to facilitate "never running out")

** there are other options, but I think this one may best meet your needs, assuming this approach saves you more trouble than effort **

(don't forget to obtain buy in from accounting before taking this path)

With this solution how do you transfer the expense from one department ("Replenish From" PAR) to the other department (PAR location)?We do something similar in our Sterile Processing for our smaller hospitals that can't use a full case from the main storeroom. But I adjust in a certain quantity every 6 months to a year and credit SPD or the OR, depending on the supply, at current cost so the departments are charged for the supply when they order. Before this SPD had to track everything requested and send a list to Finance at the end of each month to get reimbursed the expense.

Hi Jon
You are correct. Thats a great point

In the situation I described, the “replenish from” par (aka pseudo storeroom) bears all the cost. This model works well in an OR setting where the replenish from par (aka pseudo storeroom) is a case cart room and the “replenish to” par locs are feeder locations in the same OR.

If you wanted to use this model to manage cross dept expenses I imagine you could work with your finance department and clinical managers to develop a fair allocation of costs that could be allocated via journal entry at month end. Or, if the items are relatively low cost, you could just let one dept absorb the costs. It is all “hospital money” at the end of the day so this approach is taking hold in some hospitals.

We have "Psuedo Stock" for Food and Nutritional Services.  They cross charge the nursing units for the par stock of juices, snacks etc.  To get these items in, we created an IC04 that has *everything* hit the exact same account.  It debits/credits to the exact same spot with a net GL hit of $0 for every transaction except issue.  See attached screenshot.

 

There's a PO15 template with the from company and from location pointed to Dietary.  Anyone who orders from it, generates a pick ticket for Dietary and the system cross charges as designed.