Why:
Obsolescence is the term given to the life-cycle of a part. No part will exist forever. As vehicle specifications change, so do their part requirements and inevitably parts become obsolete.
Obsolescence is calculated using the last sale or last receipt date and can be calculated dynamically (where the calculation is on-going). This is controlled by a parameter.
The calculation can be set at company or branch level. Obsolescence can also be calculated monthly and at year end. Scheduled jobs must be set up within the Daily batch to enable these to run.
When obsolescence is calculated at company level, the system checks the part at each branch and selects the one with the most recent date. It then uses this part information to calculate the obsolescence code which is then applied to all branches. However, this method can distort the obsolescence result so it is advisable to calculate obsolescence at branch level.
The system recognises 9 obsolescence categories, of which 7 can be set locally based on date/week/month/year ranges. Two categories, 98 and 99, cannot be changed and are given to parts that the system finds have a receipt date but no sales date or parts with no receipt date and no sales date, respectively.
Obsolescence codes allow the accounts department to calculate stock write-off provision using the Inventory Stock Value report.
The values for 'Last Sale or Last Receipt Date' and 'Current Date or Last Date of Current Period' are set in the Parameter File (which can only be accessed by the system administrator).
Where:
From the Part View, select Actions > Obsolescence Details. How obsolescence is calculated (monthly, dynamically or yearly) influences the maintenance window displayed.
How to View & Edit Parts Obsolescence:
Dynamically or Monthly - The Obsolescence Maintenance window displays 7 obsolescence codes and their values. Double-clicking a code opens the Code Maintenance window where you can change its values. If you've updated the codes, when you exit the Obsolescence Maintenance window the system checks all the codes to make sure that the whole year is covered.
At Year End - The obsolescence code of parts moved remains the same throughout the year. At the end of the financial year, the calculation runs producing a report detailing what the obsolescence code was for each part during that year and what the new code will be at the start of the new financial year.
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