10 Aug Navigating CDK’s MSDA Setting Update
Have you noticed the new prompt “RESET: MNS WHEN PART WITH 0 ON HAND IS RECEIPTED (Y/N)?” in the most recent CDK update? It appears the MSDA setting was updated to fix MNR and MNS. This relatively new prompt was concocted by CDK to help report on the Inventory Movement – Sales report in both the Monthly Summary Report & Annual Activity and Benchmark Report.
Here’s what’s really going on:
You have a part number in the system where there has been no demand in either receipts or sales and the aging continues while on NS status.
If you have a part number with 12 months no sale/demand and you receipt the part in today, if the prompt above is “N”, then the Months No Sale (MNS) stays at 12 months until the sale is fulfilled. The result with this part set to “N” and you DO NOT fulfill the sale/demand means that once you reach month end and the part becomes 13 MNS and 1 MNR, the value goes to the Over 12 Months value.
If the setting is set to “Y”, when you receipt in the part it automatically resets the MNS value to zero to match the Months No Receipt (MNR) of zero.
What does this mean for you?
The key to this setting is that it only affects parts receipted with ZERO on hand. It does not affect any parts with an existing on hand value, which would truly be skewing the numbers. If you put a lot of weight on the MGR and the Inventory Movement – Sales value the situation will improve. It will not affect the overall obsolete number and that is why we report 13/13 obsolete inventory (13 MNS/13 MNR) to our clients. It is the most accurate way to value your true obsolescence where both the Sales and Receipts value have to both be over 12 Months.