56 Certification Study Guide Series: IBM Maximo Asset Management V7.1 4.2.4 Organizations settings This section describes the inventory options that can be set up from the Organizations application. From the Start Center, select Go To . Administration . Organizations. From the Select Action menu, you may select Inventory Defaults, Reorder, or Inventory Costs, as shown in Figure 4- 5, to open their associated dialog windows. Figure 4- 5 Inventory Options action menu Inventory Defaults In this dialog, you may set up the values for the ABC analysis, which is explained in 4.3.5, “ Inventory” on page 67, and specify whether the system will allow users to issue or transfer items with a negative current balance or negative available balance, as shown in Figure 4- 6. Figure 4- 6 Inventory Defaults dialog Note: The Sets application enables you to create two types of sets: Item Sets and Company Sets.

Chapter 4. Inventory 57 Reorder In this dialog, you set up how the external and internal requests should be created when reordering items. Limiting the number of reorder lines per PO/ PR, is also possible ( see Figure 4- 7). Limiting the number means, for example, that IBM Maximo Asset Management will create a second PO/ PR for the same supplier, with remaining lines. These settings apply to all requests and orders. Figure 4- 7 Inventory Reorder dialog Inventory costs The Inventory costing model is part of the initial setup and can be set in the Organizations application. The dialog is shown in Figure 4- 8 on page 58. Two options must be set: Issue Cost specifies whether the system uses standard cost ( the default) or average cost when an item is issued. Non Capitalized Rotating specifies whether the system uses issue cost ( the default) or asset cost when a non- capitalized rotating asset is issued. Note: The issue costing model settings are applied only to the selected site.