Stock keeping unit

Some body thinks that

SKU or Stock Keeping Units are used to control inventory levels/planning by location.  You can setup parameters per location which will generate transfer orders/purchase orders through the reconcilation worksheet if required (depending on setup). This requires more setup but gives you more control.

Ans-No

Requisition worksheet will work without SKU's, you just need to set the components at location setting

EX:

Let me explain with an example:

1) Item Shoe
2) Three warehouses (location) where we store these shows. Let us define these as LOC 1 , LOC2 and LOC3.
3) LOC1 is the central warehouse and LOC 2 and LOC3 are local warehouse.
4) Any purchase made from my organization , receipt is to be made in LOC1 however for LOC2 and LOC3 shoes can only be transferred from my central warehouse.
5) I define the above setup by makingt use of SKU card.
5) The following output can be achieved from above setup.

a) I can define different planning parameters.
b) I can define replenishment method as transfer for SKU LOC2 and LOC3.

After defining the parameters and running the requisition worksheet, system will suggest Purchase order for LOC1 but for LOC2 and LOC3 where shoes can only be transferred system will suggest transfer order.

Above scenario I had taken location for creating SKU , one can also use variants like shoe size and shoe colours.

System also give the option of costing based on variants and location.

I hope this will help to understand SKU.