SageX3 Stock Basics

Sage University Sage ERP X3 Distribution: Stock

Sage North America certified course curriculum

Sage ERP X3 Distribution: Stock CERTIFIED STUDENT CURRICULUM SAGE UNIVERSITY

Curriculum Version 4.0

NOTICE This document and the Sage ERP X3 software may be used only in accordance with the accompanying Sage ERP X3 End User License Agreement. You may not use, copy, modify, or transfer the Sage ERP X3 software or this documentation except as expressly provided in the license agreement. Visit our website at www.SageU.com, or call 1-800-944-4299 to learn about training classes that are added throughout the year. Information in this document is intended solely as general information with respect to common business issues and is not to be construed as professional advice. It is always best to consult a tax or accounting professional for all tax and account related questions. THE INFORMATION HEREIN IS PROVIDED “AS IS” AND ALL WARRANTIES ARE EXPRESSLY DISCLAIMED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY: OF MERCHANTABILITY; OF FITNESS FOR ANY PARTICULAR PURPOSE; OF NON-INFRINGEMENT OF ANY PROPRIETARY RIGHT OF ANY THIRD PARTY IN ANY COUNTRY; OTHERWISE ARISING OUT OF ANY PRODUCT, PROPOSAL, SPECIFICATION OR SAMPLE; AND ANY WARRANTY THAT THE DOCUMENT IS ERROR FREE. No license, express, implied, by estoppel or otherwise, to any intellectual property right is granted by this document. Sage Software may make changes to the information in this document at any time, without notice. Recipient is solely responsible for assessing the suitability of the information and assumes all risk of use. © 2014 Sage Software, Inc. All rights reserved. Sage , the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are the property of their respective owners. 07/2014

Distribution - Stock

Contents Welcome and Introduction .................................................................... 1

Inventory Overview ............................................................................... 3 The Company ........................................................................................ 6 Setting Up Inventory .............................................................................. 7

Stock Site .............................................................................................. 8 Statistical Groups .................................................................................. 9 Product Tax Levels.............................................................................. 12 Units of Measure ................................................................................. 13 Stock Status......................................................................................... 15 Packages ............................................................................................. 16 Product Lines ...................................................................................... 17 Lesson Practices .................................................................................. 20 Locations............................................................................................... 22

What Are Locations............................................................................. 23 Location Types.................................................................................... 26 Locations............................................................................................. 35 Lesson Practices .................................................................................. 37 Products ................................................................................................ 39

Valuation Methods .............................................................................. 40 Stock Management Rules .................................................................... 44 Allocation and Issue Rules .................................................................. 47 Product Attributes ............................................................................... 50 Product Categories .............................................................................. 52 Products .............................................................................................. 65 Product - Sites ..................................................................................... 73 Bill of Materials .................................................................................. 80 Lesson Practices .................................................................................. 87 Standard Costing .................................................................................. 91

Standard Cost ...................................................................................... 92 Revised, Budgeted & Simulated Standard Costs .................................. 95 Cost Calculation .................................................................................. 96 Cost Transfer..................................................................................... 100 Sage North America Certified Student Course Curriculum - Version 4.0 Copyright © 2014 Sage, Inc. All Rights R eserved.

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Entering Transactions........................................................................ 101

Transaction Principles ....................................................................... 102 Miscellaneous Receipts ..................................................................... 105 Changing Receipts ............................................................................ 112 Miscellaneous Issues ......................................................................... 113 Modification of Issues ....................................................................... 118 Inter-site Transfers ............................................................................ 119 Assembly .......................................................................................... 123 Disassembly ...................................................................................... 126 Stock Change .................................................................................... 129 Orders In Process .............................................................................. 131 Lesson Practices ................................................................................ 134 Periodic Processing, Reports & Inquiries ......................................... 139

Cost Adjustment................................................................................ 140 Value Change.................................................................................... 141 Stock Valuation Report ..................................................................... 142 Adjustment of Stock Shortages.......................................................... 144 Lot Modifications.............................................................................. 146 ABC Class Calculation...................................................................... 148 Account Interface .............................................................................. 150 Reports.............................................................................................. 151 Inquiries ............................................................................................ 152 Lesson Practices ................................................................................ 153 Summary ........................................................................................... 155

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Sage North America Certified Student Course Curriculum - Version 4.0 Copyright © 2014 Sage, Inc. All Rights R eserved.


Lesson 1 Welcome and Introduction Welcome to the Sage ERP X3 Stock training class. This course is divided into discussion of concepts, activities, and a review. The information in this document is intended to provide you with information on setting up and processing Inventory transactions. This includes defining pro ducts, issuing and receiving stock directly in Inventory, assembling and d isassembling products, and periodic processing functions. This course is designed to provide you w ith knowledge of: 

How to access and define settings specific to stock including defining stock statuses, units of measure, packages, and understanding product lines.



How to define locations within a warehouse including defining the locations types and specific locations.



How to define information necessary for creating products such as valuation methods, stock management rules, and product categories.



How to enter transactions that include miscellaneous issues and receipts, inter-site transfers, and assemble and disassemble a production bill of material.


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Welcome and Introduction (continued) How to Use This Curriculum The following table describes the conventions used in this curriculum: Convention

Explanation

Step numbers versus Practice numbers

Step numbers are not part of an activity and are intended to provide you with the steps typically used to complete a function. Activity numbers appear in bold and are completed in class.

Italic font in a Practice

Items that are part of a Practice and appear in an italic font indicate you need to select a function or perform a specific action to complete the step (for example, click OK ).

Courier

Practice

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font in a

Items that are part of an activity and appear in courier font indicate information you should enter (for example, at the Customer No. field, enter 01-ABS).



Inventory Overview Before setting up and entering transactions in Inventory, it is important to have an overview of how stock transactions work.

Stock Line Definition The management of stock is managed around the stock lines. A stock line is the smallest group of products in stock that can be physically identified. The stock management lies in the natural aggregation of the physical criteria of the stock product. For example, if two groups of identical products (not identified by serial number, having the same lot number, status, and other characteristics) stored in two different locations are moved to a single location, the result is a single stock line. Conversely, if a part of the products in the stock line change status, the stock line will be automatically split into two lines. A stock allocation will identify the appropriate stock lines and allocate line by line the corresponding quantities.

Sage North America Certified Student Course Curriculum - Version 4.0 Copyright © 2014 Sage, Inc. All Rights Reserved.

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Inventory Overview (continued) The definition of a stock line can be made by listing the essential information that is attached to it.

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Stock Line Information

Differentiating criteria

Product Code

Yes

Site Code

Yes

Warehouse

Yes

Location

Yes

Lot

Yes

Sub-lot

Yes

Serial Number

Yes

Packing UOM

Yes

UOM Conversion

Yes

Identifier 1

Yes

Identifier 2

Yes

Status

Yes

Line Quantity (packing unit)

No

Line Quantity (stock unit)

No

Active line quantity

No

Allocation line quantity

No

Last stock count information

No

Quality Analysis Request

No



Inventory Overview (continued) Example 1 – A product received at the dock creates a single stock line. The stock location is changed and moved from the dock into 2 storage locations, which results in a split of stock line to reflect the detail in 2 other stock lines.

Example 2 - Two stock lines numbered automatically by a sequence number counter. The following information is found.


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he Company For the purposes of this training, you will be using the SEED endpoint, which is multilegislation folder. You will be accessing data specific to North American including companies, customers, suppliers, and existing transactions. The data specific to North America either begins or includes “NA”. For example, the NA10 site and the NA011 and NA012 companies.

Logging On To Sage ERP X3 In this Practice, you will log on to Sage ERP X3. 1. Open your Web Browser and the URL provided by the instructor. 2. Click Click here to start your experience. 3. When prompted, enter admin as the user name and password. 4. Click OK . 5. From the Landing page displayed, click the Navigation icon in the Upper bar.

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Lesson 2 Setting Up Inventory In the following topics, you will learn how to define information required to properly set up Inventory. The topics in this lesson include: 

Stock Site



Statistical Groups



Product Tax Levels



Units of Measure



Stock Status



Packages



Product Lines



Lesson Practices


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Stock Site Before defining information, you must define at least one site as a Stock site to enter inventory information. This is done by selecting the Stock check box on the Details tab in the Sites (GESFCY) function in the Setup > Organizational structure block.

Warehouse Tab Use the Warehouse tab to activate warehouses for a site and define default warehouses for use in receipt and issue flows. A warehouse is a group of locations and multiple warehouses can be associated with a single site. Note: Activating and using warehouses is discussed in the Distribution: Beyond the Basics course.

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Statistical Groups Statistical groups provide the means to group or categorize products, customers and suppliers for reporting and inquiries. For example, when defining a product, you can enter such information as UPC code, base price, costing information, units of measure, etc. -

This information is made available for any transaction containing the product.

-

However, this standard information may not include a categorization that is significant to your business such as product line.

-

You can create a statistical group for product line and define the specific values available.

For products, customers and suppliers, the program allows for the definition of up to five statistical groups to define for each. Transactional data will contain values in the groups defined allowing later reporting and inquiries based on the statistical groupings. -

It is important to define the groups and values prior to entering transactions. If they are defined later, transactions already entered will not contain complete data.

For products, a maximum of seven different statistical groups can be defined. -

The statistical groups can be independent or hierarchical. For example, statistical group 1 can control the possible values of statistical group 2.

-

You can modify the description associated with each statistical group using the Local menus function in the Setup > General parameters block and modifying local menu 206 for the Common Data module.

Setting the groups is an important business decision and must be well thought out. Decision drivers include: -

How the product is used, finished good or raw material.

-

Types of reporting needed, pricing schemes, inventory counting schemes or plans, purchasing and reordering plans and sales analysis.


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Statistical Groups (continued) Product Statistical Groups Use Product statistical groups (DIVTSI) in the Common data > Product tables block to create and modify the values associated with each statistical group. Note: You can also define this information for the appropriate table using the

Miscellaneous Tables function under Common Data.

For each value you want to define, enter a code along with a description and short title. You can also define a default value to display for the statistical group when de fining the product.

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Statistical Groups (continued) Dependency If a table is selected at the Dependency table field, the Dependency co lumn displays in the List of Values grid.

If a group is defined as a dependent of another statistical group, you can indicate which values are displayed based on the main statistical group. For example, 11 through 19 in the dependent statistical group are displayed if 10 is selected as the value for the Group 1 statistical group.


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Product Tax Levels Use Tax levels (GESTVI) under taxes in the Common data > Common tables function to define the tax levels associated with each product. Tax levels are used to determine the tax codes to be used, as a result of the tax rule, during the calculation of the sales and purchase taxes.

For each value, define a code, description, and short tile. You can make the tax level specific to a group based on the selected at the Group of company field.

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Units of Measure Use Units of measure (GESTUN) in the Common data > Common tables block to create, view and modify units of measure. The units of measure defined in this function are used throughout all modules.

The Dec field defines the format for the quantities displayed for the selected unit of measure. -

You can enter a maximum of 6 decimal places. Enter 0 or leave the field blank to indicate there are no decimals.

-

This field also defines the rounding method for the quantities in a calculation. For example, for a unit with 2 decimals, the display format is 9.2 and the quantity is rounded to 0.01.

The Unit type field identifies the unit of measure as either: Length, Area, Volume, Weight, Time, Piece, Packing, and Other. -

You can define controls based on the unit of measure type. For example, you can specify that only units of the type Packing are used as units in stock entry.

-

This information is defined primarily when creating the product.

Defining a symbol is optional and only affects reports.


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Units of Measure (continued) UOM Conversion Use Uom conversion (GESTCO) in the Common data > Common tables block to define the conversion between two units of measure.

When defining a conversion, it is important to keep in mind that t he First quantity column is always set to 1 and the = (equal) column is always set to = (equal). The Unit 1 column represents the first unit of measure as is associated with the First quantity column. At the Second quantity field, enter the conversion rate for the unit of measure selected at the Unit 2 field. -

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For each 1 FT (Foot) is equal to 12 IN (Inches).



Stock Status Use Stock statuses (GESTST) in the Common data > Product tables block to define statuses which are used to manage your stock. The status identifies if the stock of a product is accepted (status A), in quality control (status Q), or rejected (status R). -

The A, Q, and R statuses are imposed by the program and cannot be deleted or the status code changed.

You can create up to a three-character sub-status to customize statuses to your company’s needs. -

For example, you can enter RR for Supplier Return or RD for Reject and Destroy.

-

The first character must be either A, Q, or R and identifies the sub-status as Accepted, Quality, or Rejected.

You can define stock management rules to provide control and filters on how each status can be used in the system. -

For example, you can specify that you can only issue a product with a status of A using the Miscellaneous issues function.

-

If a status is followed by an asterisk (*) such as A*, then any status is allowed that starts with an A.


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Packages Use Packages (GESTPA) in the Common data > Product tables block to define the packages used in packing. This information is defined when setting up the packing for shipment information for the product-site record.

For each package, you can enter such information as the package price, label format, weight unit, size unit, length, width, and height.

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-

The label format is used as the default when printing labels for items packaged using the selected package code.

-

The package price represents the unit price for the package and is entered in the company’s home currency.



Product Lines A product line is used to define the specific identifiers for a product (e.g. dimension, color, metal, etc.). These settings are typically used in Configurator; however, they can be used to provide this information for a product as informational only.

Product Line Attributes Use Product line attributes (FUNTLPATT) in the Common data > Product tables block to define the identifiers or attributes you want to enter for a product. You can define an unlimited number of attributes; however, you can only select 6 numeric and 6 alphanumeric when setting up the actual product line definition.

It is important to note that after adding a product line attribute, you must exit the program before you are able to view it when setting up product lines.


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Product Lines (continued) Product Lines Use Product lines (GESTLP) in the Common data > Product tables block to define the product lines which detail what attributes are defined for a product. A product line can be selected when defining a product category or an individual product.

You can select a maximum of six attributes in the Alphanumeric Attributes and Numeric Attributes sections.

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Product Lines (continued) For each attribute selected, you can indicate if the entry is mandatory, optional, or for display. -

Display is used to display a value calculated by the configurator such as a surface.

If Mandatory entry is selected as the input, a control table must be associated in order to check the entry. This is identified in the Responses column. -

The control table or responses are defined in the Responses function under Quality records in the Common data > Product tables block.

Once an attribute is selected for a product line, it cannot be selected in a different product line. Click Preview in the Right panel to view how the window will display when entering product information. The Scenario field is a control feature for the Configurator which can use the attributes for product selection and for configuration. The Configurator can also fill in the attributes.


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Lesson Practices Complete the following lesson practices in the order shown.

Creating a Unit of Measure In this Practice, create a new unit of measure. 1. From the Common data > Common tables block, select Units of measure. 2. Create a new unit of measure by scrolling to the bottom of the list to access the next available row. Enter PCK as the unit and enter Pack 6 X UN as the description. 3. Select Packing as the type. 4. Enter P06 as the symbol and Pack 6 as the short title. 5. Click Save. 6. Return to the Navigation page.

Creating a Unit of Measure Conversion In this Practice, create a new unit of measure conversion. 1. From the Common data > Common tables block, select Uom conversion. 2. Create a new unit of measure conversion by scrolling to the bottom of the list to access the next available row. Select PCK as the first unit, enter 6 as the second quantity, and select EA at the Unit 2 field. 3. Enter Pack-Each as the description and EA per PK as the short title. 4. Click Save. 5. Return to the Navigation page.

Create new sub-statuses In this Practice, you will create two new sub-statuses. 1. From the Common data > Product tables block, select Stock statuses. 2. In the first available row, enter RR as the status, Rejected supplier return as the description, and Rej Return as the short title. 3. In the next row, enter RD as the status, Rejected to be destroyed as the description, and Destroyed as the short title. 4. Click Save and return to the Navigation page.

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Lesson Practices (continued) Create new product line attribute In this Practice, create product line attributes. 1. From the Common data > Product tables block, select Product line attributes. 2. In the first available row, enter Not Used and in the next row enter COLOR. Click OK . 3. When prompted for the local menu update, click OK (do not select All languages).

Create new product line and responses. In this Practice, create a new product line that requires the entry of a color. Because it is mandatory, you must first define the control table of responses allowed. 1. Under Quality records in the Common data > Product tables block, select Responses. 2. Click New. 3. We need to enter the responses available for the Color product line attribute. Enter COL as the response ID and Color as the description. 4. In the grid, enter BLUE as the code and description. 5. Continue with the following colors: RED, GREEN, ORANGE, YELLOW, and BLACK. 6. Click Create and return to the Navigation page. 7. To make the responses available, you must exit the program and log back in. Exit the program and log back in using the same user. 8. From the Common data > Product tables block, select Product lines. 9. Click New and enter RBNS as the product line ID and Bike Ribbons as the description. 10. In the Alphanumeric Attributes section, select Not Used in row 1 for the field title. 11. Select Color in row 2 for the field title. 12. Select Mandatory entry at the Input field and select COL as the response table to use at the Response table field. 13. Click Create and return to the Navigation page.


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Lesson 3 Locations In the following topics, you will learn what locations are and how they are used in Inventory, including how to define location types and actual physical warehouse locations. Note: The activation of warehouses in the S ites function impacts how locations are

defined. The activation and usage of warehouses is discussed in the Distribution: Beyond the Basics training course. The topics in this lesson include:

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

What Are Locations



Location Types



Locations



Lesson Practices



What Are Locations The program provides a variety of options for managing locations and product storage.

The following definitions are commonly used to describe features and functions associated with location management. Location System – A system, for example, row, level, bin that allows tracking inventory in potentially random locations in order to make better overall use of available warehouse space. Location/Bin – A designated inventory storage location. A warehouse might be organized according to row, level, and bin. The location number assigned may contain segments reflecting all three attributes. License Plate – A unique number assigned to specific stock so that it can be identified and transacted without scanning/entering individual product/package data.


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What Are Locations (continued) Location Example 1 The below example is used in small facilities and typically one or more o f the following attributes: Products are easily recognized Products have dedicated storage locations Storage space is not a constraint Personnel are experienced Handling volume (transactions) is not large

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What Are Locations (continued) Location Example 2 The below example is zone based location management which is typically used in smaller facilities where minimal tracking is required. If you know which part of the building to look, you can find it. It is also used when you have segregation of duties, where supervisor is responsible for the inventory in that area.

Location Example 3 The below example shows stock managed in areas (receiving dock, shipping dock, etc), zones (QC, work centers), bulk storage, pallets racks (F6, F8), racks (F1, F3), and forward picking locations (FP1, FP2, etc.).


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Location Types Use Location types (GESTLO) in the Common data > Product tables block to define the different locations types by site. Locations types are used to group locations with similar characteristics (authorized statuses, dimensions, storage constraints, etc.) within a site/warehouse. For example, you may have various workshop locations, quality control locations, and stock locations. Locations are used by all modules in processing stock when locations management is active. This function is also used to create locations within the selected type. Majority of characteristics cannot be changed at the actual location level.

For each site, you can define an unlimited number of location types. For each location type, enter a code, description, and short description.

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Location Types (continued) Characteristics The following characteristics can be defined for a location type. Internal

Typically used for normal locations.

Dock – awaiting storage

Used to carry out a receipt to dock.

Customer

Used to manage BP locations in order to manage the loan of goods to a specific BP.

In this way, not all the stock information is entered, as it is possible to enter the location without specifying the lot, sub-lot, or serial number.

This option is only available if Analytical is also selected. You can have both an analytical ledger used for tracking postings by dimension and a separate analytical ledger for budgets. Sub-contract

Used in order to manage goods present at subcontracting locations.

Single product

Locations of this type can only accept one product at a time.

Dedicated

Used to manage the fixed storage addresses. The locations specified are assigned to the products using the Assign Icon button. It is possible to attach a product to one or more storage addresses.

Replenish

A replenishment location type is one that is taken into account by the replenishment workbench. This indicates that the location is to be re-filled using the bin/location replenishment functions. This is typically used to keep picking bins full for picking outgoing shipments.


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Location Types (continued) Capacity managed

Used to ensure the quantity proposed for a location does not exceed the maximum quantity, which is indicated in the Units of Measure section. The location changes to a status of Occupied when there is a stock receipt above this even if it is not totally filled. Once it has a status of Occupied, it can no longer be automatically proposed for other receipts. It returns to a status of Free, after the issue of all of its stock. If you try to manually place an item received into a location with an Occupied stat us, a message displays indicating that the quantity is too great.

Authorized s/status

At this field, you can indicate the statuses accepted in the locations for the selected type. Statuses begin with A (accepted), Q (quality control), or R (rejected). Use the asterisk (*) wildcard to indicate all statues defined beginning with A*, Q*, and/or R*. If you try to receive an item into a location with an unauthorized status, a message is displayed and you must change the location.

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Location Types (continued) Location Format The Location format field identifies the format used when creat ing the actual locations within the selected location type. The format generally varies based on the type of location represented. You must identify the format in accordance with the following general scheme: -

A = warehouse zone

-

B = aisle

-

C = bay

-

D = shelf

-

E = sub-shelf 1

-

F = sub-shelf 2

-

G = sub-shelf 3

Each letter is optional and can be repeated, but it is necessary to respect the alphabetical order. For example, ABBCCD is made up of: -

1 character (A) for the warehouse zone

-

2 characters (BB) for the aisle

-

2 characters (CC) for the bay

-

1 character (D) for the shelf

The Location format field is not available if Customer or Sub-contract is selected. The format for the location is set to 10 characters and is available during data entry. -

Locations for this type cannot be created automatically and are created one at a time as needed.

For example, a section of a warehouse is set up with pallet racks and the section is called zone 99. -

The zone has 5 aisles A to E, and each aisle has 10 pallet positions with a rack that allows stacking the pallets 3 high.

-

There are 4 shelves 1 on the floor and 2, 3, and 4 on the rack positions above the floor. They are called R1, R2, R3, and R4.

-

The location format is AABCCDD and a location marked on the shelf might look like 99E07R3, this is the position in zone 99, aisle E, bay number 07 and it is on the 3rd shelf counting from the floor up.


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Location Types (continued) Proposal Sequence The proposal sequence is used to automatically pick a place to put incoming receipts. It is a way to assign free locations in a particular order. It can be t he same or slightly different from the location format. For example: Using the previous example for location format and assuming all of the locations are empty and the program has to pick a location for put away and the proposal sequence is identical to the location format (AABCCDD), the program will choose to put the product away in the first empty location in the same order as t he bin locations. -

The order that would be is shown below.

Sequence of put away 1 2 3 4 5 -

Proposed location by Proposal Sequence order 99A01R1 99A01R2 99A01R3 99A01R4 99A02R1

Actual location

99A01R1 99A01R2 99A01R3 99A01R4 99A02R1

This would cause each new pallet to be stacked from the floor position R1 to the top position R4 before moving to the next bay. Moving to the next bay is shown from the 4th put away to the 5th put away above.

But, suppose you wanted to use all of the floor locations before stacking pallets on the racks above. -

This might make for faster and more efficient warehouse operations because the fork operator would not have to raise the forks as often to put away product in the high pallet locations.

-

In this case, you would change the put away proposal sequence to AADDBCC. This sequence would give priority to finding an empty location on the floor.

-

Assuming all of the locations are empty and the program has to pick a location for put away, the program will suggest location in the order shown below.

Sequence of put away 1 2 3 4 5

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Proposed location by Proposal Sequence order 99R1A01 99R1A02 99R1A03 99R1A04 99R1A05

Actual location Proposed 99A01R1 99A02R1 99A03R1 99A04R1 99A05R1



Location Types (continued) Release Mode The Release mode field is only available if Capacity managed is selected. The options available include Immediately, Temporarily Blocked, and Blocked. Select Immediately to make the location available for a new receipt to stock following an issue. Select Temporarily Blocked to indicate that the location is free following an issue, but is not available for the next receipt until after a specific amount of time has passed. The time is entered at the Time delay field. Select Blocked to indicate the location changes to a Blocked status following an issue. To free it, it is necessary to return to it and unblock the location manually in the Locations function.

Units of Measure The Units Of Measure section is only available if Capac ity managed is selected. It defines the maximum quantity that can be contained in locations of this type. You can express the quantity in different units.

Alternate Types The Alternate types section is only available if Capacity managed is selected. During the receipt of stock, the system reads the location type present in the product-site record to the find the free locations. If no locations of this type are available, the system searches other location types based on those listed in this section.

Statistics Tab Use the Statistics tab to view statistics information such as the number of occup ied locations, free locations, percentage occupied, and the last analysis date and time. This information is updated when running the Location resynchronization function.


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Location Types (continued) Automatically Creating Locations After a location type is created, click Create locn in the Right panel to automatically create locations for the selected type.

Information such as the site, location type, character istics and smallest and largest location number display. This information cannot be c hanged. At the First location and Last location fields, enter t he starting and ending range for the locations you want to automatically create. -

The values entered in these fields must coincide with the format displayed at t he Location format field.

When you click Save, the system prompts you with the number of locations to be created. At this point, you can co ntinue or cancel.

Deleting Locations Similar to adding new locations, you can delete existing locations for a specific location type by clicking Delete locn in the Right panel. You must enter the first and last location to delete. You cannot delete a location that contains stock.

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Location Types (continued) Assigning Products to Locations Click Assign locn in the Right panel to assign a group of products to locations or delete these assignments. This option is only available if either Dedicated o r Replenish is selected for the location type. Note: You can also manually assign a product to a location in the Products function.

In the Start – End Range section, define a location and product range to use when generating the assignments. After entering the ranges, click Add to view the results in the Assignments section. At this point, you can delete any assignments prior to saving them. -

If you enter a range of locations and products, the products are assigned to each location.

To delete assignments already made, enter the appropriate range information and click Search. The results display in the Assignments section and the products are displayed in red. -

Select the assignments to delete and select Delete Line.

-

The products selected for deletion display in the To Be Deleted section.

-

You cannot delete an assignment for a location that contains stock on hand.

Regardless if you are adding or deleting assignments, you must click Save in order for the modifications to take place. Sage North America Certified Student Course Curriculum - Version 4.0 Copyright © 2014 Sage, Inc. All Rights R eserved.

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Locations Types (continued) Inquiry Use Inquiry in the Right panel to view information for each location assigned to a specific site and location type. You can view locations based on whether they are Empty, Occupied, or Full. You can also view information such as the product, quantity, and blocked status of the location.

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Locations Use Locations (GESLOC) in the Common data > Product tables block to manage locations created in the Location type function. This includes clocking or unblocking a location, changing product assignments, and viewing the content of a location. Note: You cannot create locations in this function. You must use the Create Icon option in the Locations type function to create locations.

In the Availability section, you can indicate if this location is blocked from any further receipts or clear this selection if automatically blocked based on settings defined for the location type. -

Additionally, this section provides information on whether the location is currently part of a physical count process and the availability status.

-

The status can be Empty, Occupied, or Full.

You can also change the statuses allowed when receiving products into this location at the Authorized s/status field.


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Locations (continued) Assignments Tab Use the Assignments tab to add, view products assigned to the selected location. Information displayed for products assigned includes the product, d escription, stock unit, reorder level, and maximum quantity. These assignments can be manually entered o r mass generated using the Location types function. The reorder level and maximum quantity information is expressed in stock unit. -

The Calculation of replenished locations function uses the reorder level to carryout location change suggestions. If the stock in a location is less than this level there is a suggestion.

-

Additionally, it uses the maximum quantity to reorder. The system will attempt to reach the maximum quantity.

The packing unit and the PAC-STK values are also used in the Calculation of replenished locations. -

The function expresses the requirements in PAC (packing unit). These requirements are passed to the internal and sub-contractor allocation rules to suggest the stock lines to be moved.

Suggestions made by the replenishment are multiples of the economic quantity entered.

Content Tab Use the Content tab to view the contents of the location. It provides a detailed list of products, lots, and units that are stored in the location. You cannot modify information on this tab.

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Create new location type In this Practice, create an assembly location for site NA012. 1. From the Common data > Product tables block, select Location types. 2. Click New. 3. Select site NA012 and enter ASY as the location type code. 4. Enter Assembly as the description and ASY as the short title. 5. Verify Internal is selected. Only products with an A* status can be received into this location. 6. At the Location format field, enter AAABB. 7. Click Create. 8. Now let’s automatically create locations for this type. Click Create locn in the Right panel. 9. In the Location creation window, enter CQX01 as the first location and CQX15 as the last location. 10. Click Save. 11. When prompted that 15 locations will be generated. Click OK . 12. Click OK again when prompted that the locations are created. 13. Exit the Location creation function. 14. Now create another location for site NA012 using the information below. •

The location type is REJ and enter Status R Location as the description and REJ as the short title.

•

This is an internal location and only products with a status of R* can be assigned to locations associated with this type.

•

The format for locations created is AAAC.

•

Once created, automatically generate locations for a range of REJ1 through REJ5.

15. Exit the Location creation function. 16. In the Location types Left list, select the STO location type for site NA012.


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Lesson Practices (continued) 17. Click Inquiry in the Right panel. 18. View the information displayed. Can you identify locations that are empty and

occupied? 19. Take a few minutes to modify the selections and view the different results displayed. Remember to click Search to update the display based on changes made. 20. Once completed, close the Inquiry function. 21. Return to the Navigation page.

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Lesson 4 Products In the following topics, you will learn how to define information for your products. This includes valuation methods, product categories, and the actual products. The topics in this lesson include: 

Valuation Methods



Stock Management Rules



Allocation and Issue Rules



Product Attributes



Product Categories



Products



Product – Sites



Bill of Materials



Lesson Practices


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Valuation Methods Use Valuation methods (GESTCM) in the Setup > Stock block to define the different valuation rules of the stock movements. For example, you can define the valuation method to use for receipts vs. issues. The valuation method is attached to the product-site record. The valuation methods defined are not specific to a company or site.

In the Header section, enter information to identify the valuation method. You can enter a maximum of three characters as the code. The Margin section is used to specify the cost price to use when calculating the margin, which is the difference between the net price and the calculated base price. If the base price is null, the alternative default is used.

Method The Method section defines the valuation method used. The valuation method selected at the Method 1 field is the default valuation method used.

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-

You can optionally define a second valuation method; however, this requires the activation of the VLT activity code.

-

The second valuation method is used if the first method returns a null value.

-

For example, if you have selected Average Cost as the valuation method and you receive an item for the first time, there is no average cost. In this case, you can have an alternative method selected at the Method 2 field defined as Standard Cost to set that first value.



Valuation Methods (continued) The valuation methods are listed in the table below. Standard Cost

Represents the standard cost of the inventory.

Revised Standard Cost

Standard cost that may be updated multiple times during a year.

Cumulative AUC (Average Unit Cost)

Calculated cost based on the following formula. (AUC * Qty in Stock) + (Order cost * Qty on receipt) Qty in inventory + Qty received

FIFO Cost

Represents First In First Out. Cost is tracked for each item received a nd the first item received is the first item selected for shipment.

LIFO COST

Represents Last In First Out. Cost is tracked for each item received a nd the last item received is the first item selected for shipment.

Lot AUC (Average Unit Cost)

The average lot cost is updated with each receipt of a specific lot within a product site. The formula used is identical to the AUC formula but on a lot basis. The ABSLIM general parameter can be set to avoid increasing the average cost in the case of invoicing of many receipt and stock issues.

Last Cost -

The last cost received is used.

Note: It is important to keep in mind that regardless of the selection, the system

always maintains the standard, revised standard, simulated, and budget costs if created by the user. Average cost is always calculated during the receiving process. At the Internal transact.valu. field, select Yes to value the internal transactions of the products to which the valuation method is attached. The valuation method associated with issues is applied to calculate the amou nt of these transactions. If the Adjustment of issue prices field is set to Yes, the pro ducts associated with the valuation method are available in the Cost adjustment function. -

This function is used to update the value of those transactions carried out after an adjustment or a backdated transaction.

-

This field is only available for the Average Cost or FIFO valuation methods.


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Valuation Methods (continued) Method Details The program also gives you the power to define different valuation methods based o n stock movement (receipts or issues). This is done by clicking the Method Details icon next to the Method 1field. Note: By default, they are set to the valuation method selected at the Method 1 field.

The valuation method selected at the Valuation field is used for issues. -

If the method selected returns a null value, the method selected at t he first Alternative default field is used.

The valuation method selected at the Receipt value field is used for receipts. -

If the method selected returns a null value, the method selected at t he second Alternative default field is used.

-

The options available include Standard Cost, Revised Standard, and Order Cost.

-

Order cost is the cost on the purchase order.

In the Counts section, you can define which cost to use if the count difference is greater or less than zero. -

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Similar to the issue and receive methods, you can defined an alternative if either returns a null value.



Valuation Methods (continued) Select the Adjust receipt prices check box to automatically create a price adjustment for the movement during the invoicing or a receipt or during the Production Cost Price calculation for a work order. -

You can use the adjustment to update the average price according to the value of the general parameters.

Select the Null cost allowed check box to allow a receipt or issue if the valuation method or alternative default yield a zero cost value. -

If the check box is cleared, a message displayed during data entry and you cannot proceed.

In the Receipt Valuation Exceptions section, you can define exceptions to the receipt values for the following movement types: Miscellaneous Receipt, Supplier Receipt, Work Order Receipt, Shipment Return, Inter-site Transfer, Subcontract Receipt, and Stock Return. -

For each exception, you must define a movement type and code as well as a standard valuation method and alternative.


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Stock Management Rules Use Stock management rules (FUNSTORUL) in the Setup > Stock block to define parameters that make it possible to manage the behavior of items received and issued. The settings defined in this function are not specific to a site or product category. You can define specific stock management settings for receipts and issues when creating product categories, which are discussed in a later lesson. A default set of management rules is created automatically.

Receipt Flow Tab Information defined on the Receipt flow tab are used to manage products received based on the movement type. Movement types are predefined and listed as shown below. You cannot delete a movement type; however, you can modify the information.

The Location field identifies the default location label that is proposed by default for the selected movement type. With the exception of the first three options (Receipt, Storage, and Picking) the remaining titles can be modified as needed for your business in the Local menus function. At the Authorized status field, select the statuses authorized for the movement type. These are based on the statuses you defined including ‘A’, ‘Q’ and ‘R’.

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-

In addition, you can select an authorized sub-status. During data entry, you can enter the authorized sub-status.

-

You can enter a default sub-status at the Default status field. It must be one of the authorized sub-statuses defined at the Authorized s/status field. Sage North America Certified Student Course Curriculum - Version 4.0 Copyright © 2014 Sage, Inc. All Rights Reserved.


Stock Management Rules (continued) At the Default status field, enter a default sub-status to be assigned based on the movement type. At the Analysis request field, you determine if a QC analysis request is submitted when an entry flow movement occurs with a ‘Q’ status. -

If you select No, you cannot change the status of a product from ‘A’ to ‘R’ through the quality control functions. You must process a status change.

The Lot entry field determines if you can enter a lot number. -

If No is selected, you cannot enter a lot number. The system uses the lot sequence number counter to generate the lot number for products tracking lot information.

-

If Free is selected, you can enter an existing lot number or not.

-

If New Lot is selected, you must enter a lot number that does not currently exist in the system.

At the Default batch field, you can enter a default value for the lot entered. -

Select Supplier lot to have the system use the supplier lot number as the internal lot number.

-

Select Document number to have the system used as the default lot number, the number of the document triggering the receipt into stock. Use caution with this option as the document number is only generated creating the rece ipt, and it is not based on the purchase order number.


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Stock Management Rules (continued) Issue Flow Tab Information defined on the Issue flow tab are used to manage products issued based on the movement type. Movement types are predefined and listed as shown below. You cannot delete a movement type; however, you can modify the information.

The information defined for Movement type, Autho rized status, and Authorized s/status are the same as discussed on the Receipt flow tab. For issue movement types, you can define three default location types. Location 1 has the first priority and Location 3 as the last priority. At the Issue expired lot field, you can determine if expired lots can be issued.

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-

Select No, UBD (use by date) control to allow the issue of a lot on or before the use by date.

-

Select No, expiry control to allow the issue of a lot on or before the lot expiration date.

-

Select Yes to allow the issue of a lot regardless of the expiration date, as long as the status corresponds with the authorized statuses.



Allocation and Issue Rules An allocation is a stock reservation made in order to carry out a given movement. The allocation rules help to determine which stock is available for an issue transaction. An allocation can be global or detailed. If global, a check is simply made on whether the available stock has the requested status or detailed, whether the stock lines are physically identified. If detailed, the stock lines are physically identified. In general, a stock allocation precedes a physical movement. When several stock lines are available for a given product, the detailed allocation is used to choose that are actually used.

Use of Allocation Rules Allocation rules are used in two cases: When an automatic allocation is launched, for example an order or work order. In this case, the rules are strictly applied. When an implicit allocation is made if the stock movement is made directly without a preliminary allocation phase. For example, a work order tracking or a directly validated delivery. -

In this case, rules are used in the order of the filters to search for eligible lines, but additional filters are made to take into account those lines with stock statuses likely to be issued.

-

The functionality is based on the setup of the transaction. To obtain this type of operation method, it is necessary to set up the transaction by activating the stock determination.

-

If this is not the case, the proposition is carried out and the user must manually choose the stock lines to be issued.


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Allocation and Issue Rules (continued) Allocation and Issue Rules Use Allocation and issue rules (GESTRU) in the Setup > Stock block to define the allocation rules. For a given product, several allocation rules can be defined, eac h rule being associated with the type of movement when setting up the product category. For example, you can have a separate rule for production and internal movements.

The Constraints section determines how lots are selected. You can force the use of a single lot by selecting the Mono-log check box.

Page 48



Allocation and Issue Rules (continued) In the Allocation and Issue Rules section is used to define a search sub-algorithm, which are referred to as filter lines. -

-

To allocate a product, the search algorithm for the first filter is executed, in order to obtain one or more eligible lines of stock. The process stops if the quantities found in the first pass are sufficient for the required allocation. If not, the search is executed with the second filter and so on, until the quantities necessary are found.

The DOC (document unit), STK (stock unit), and PKU (packing unit) fields represent the various units of measure. The DOC unit is the unit of measure entered for the transaction (e.g. sales order).

Allocation Rules and Issue Rules With stock movement/product specific rules and allocation rules, it is possible to have different rules, more restrictive in one case more than ot her. For example, an allocation rule can authorize an allocation with the status ‘Q’, while the issue rule prohibits it.

This is useful if the products are allocated in advance for stocks that have a long replenishment cycle. In order for the stock movement to take place, it is necessary that the product is controlled in the meantime.


Page 49


Product Attributes There are several steps required to define all the information necessary for creating a product. This includes creating a product category, the product itself, and product-site information. This combined information determines how the product is bought and sold, whether lot and/or serial numbers are tracked, are the quality control processes in place, etc.

All activity is generated by some type of document. This is true regardless if it is commercial (e.g. shipment, receipt of goods, etc.) or internal. All activity generates stock transactions. This is true even for transactions that do not affect inventory levels such as a stock status change or a lot renumber. Cost associated with stock exists at many levels. It is tied to a transaction. -

A stock line may derive its cost differently based on the valuation method.

-

A transaction record may result in the creation of a cost record (e.g. FIFO, Average lot cost, etc.)

A summary of the stock activity is kept at the product site level. This includes summarized transactional activity on a monthly and annual basis.

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Product Attributes (continued) Category/Product/Product Site As mentioned previously, when defining product information you must first define the category, followed by the actual product, and finally the product site. Each pro vides information used when processing stock transactions in the program.


Page 51


Product Categories Each product is assigned to a product category. The primary purpose of the product category is to define default settings that are applied to products and product-site definitions. It is important to note that some setting on the product category cannot be changed at the product level. For example, whether the product is sold and the issue flow controls. Product categories can be defined at the folder level and at the site level. -

Defining a site product category is useful essentially to assign a set of default values to the product-site definition.

You can also generate reports and view inquiries based on the product category. Changes made to a product category after a product or product-site definition is defined are not carried forward. Use Product categories (GESITG) in the Common data > Products block to define product categories.

Header In the Header section, enter a category code and description. You can enter a maximum of five characters for the code. At the Site field, you can optionally select a site.

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-

If a site is not selected, the category is defined at the folder level and is available for all sites.

-

If a site is selected, you can only select the category when defining product/site information.

-

Additionally, you can only select a site that has Warehouse selected.



Product Categories (continued) Description Tab Use the Description tab to define information such as the creation method, type of category, types of flow, and ABC class information.

The Product sequence field determines how products are automatically numbered when assigned to the product category. -

-

Based on settings defined in the Structures function for sequence number definitions. If you want to manually define the product IDs, leave this field blank.

The Creation method field determines if a new product created must go through a validation phase before it is available. -

Select Direct to make the newly created product immediately available with an Active status.

-

Select With validation to put the newly created product in a status of In Process. It is necessary to validate the product in the Products function and to modify its status to make it Active and available.

The buyer and planner selected in the Managers section specifies the user in charge of the planning and reordering of the products in this category. Leave t hese fields blank if it is not specific to a user.


Page 53


Product Categories (continued) The product line selected at the Product line field is used to define what additional attributes are defined for a product associated with this category. -

Additionally, the Configurator function uses this to create con figurations based on specific settings defined in the pro duct line.

The Statistical Groups section is used for statistical information. Select the appropriate value for each group listed. Types Of Category

The type selected in the Types of category section defines how products assigned to this category can be used. The options available include the following: -

Service: If selected, products are used in a subcontract BOM and a subcontract

routing operation. -

Phantom: If selected, products can be called in BOMs in two cases: to manage

the groupings of components and to manage how

stock wears out.

-

Tools – If selected, products can be used in routing operations to represent tools.

-

Generic: If selected, products are considered generic and are not managed in

stock. Examples would be service or kit products. -

Maintenance: If selected, products belong to the Maintenance categ ory. During

the interface processing with the AXEL-MMS product, o nly the products of this category are exported. This type of category must be associated with the flow type of Purchased. Access to this option is based on the MMS – MMS – X3 Interface activity code. You are not required to select a type for a category. If a type is not selected, the products assigned to the category are not restricted based on the type selected. Types Of Flow

The option(s) selected in the Types Of Flow section determine if products associated with the category are bought, manufactured, subcontracted, sold, and/or deliverable. You can select more than one option. For example, you can select that product associated with the category are both bought and manufactured. You must select Sold to indicate that products in this category can be sold. The Deliverable option can be selected, even if the Sold option is not selected. For example, you may have products that are loaned out on a job but is not actually sold to a customer. The options available in this section are based on selections in the T ypes Of Category section. For example, if you select Phantom as the type, only the Manufactured option is available for selection.

Page 54



Product Categories (continued) Management Tab Use the Management tab to define stock management, lot management, serial number management, quality, storage, expiration, and packaging information.


Page 55


Product Categories (continued) In the Stock management section, select whether products associated with the selected category are managed, not managed, or potency managed. -

Select Not Managed for products that are never considered in stock. For example, services or general purchases. If Not Managed is selected, no other options on this tab are available.

-

Select Potency Manage if the product is managed in stock, with a rule. The management of the quantities in stock is carried out with active quantity and a physical quantity.

-

The type of category selected on the Description tab also affects the selections made. For example, if Service provision is selected at the type, the Not Managed option is automatically selected and cannot be changed.

Select the Stock <0 authorized check box to indicate it is possible to issue stock that is not currently on-hand. The options selected at the Management mode and Stock withdrawal mode fields are used in MRP and MPS. The option selected at the Count mode field determines when stock is counted as part of the physical count process. The options available include Cycle Count and Annual Count. The option selected at the Traceability field determines if stock transactions are traced in detail or summary. -

If Summary traceability is selected, stock transactions of the same prod uct, lot, status, document and transaction, are summarized.

Quality

The options available in the Quality section define whether a product must be controlled on receipt into stock. The options available at the QC management field include No Control, Nonchangeable Control, Changeable Control, and Periodic control. -

-

-

-

Page 56

Select Non-changeable Control to make quality control mandatory. When receiving, you can only enter the status of ‘Q’ for the products received into stock. Select Changeable Control to have the ability to change the status of products received from ‘Q’ to ‘A’ or ‘R’ at the time of receipt. The status defaults to ‘Q’ automatically, but can be changed. Select Periodic control to periodically check items received. The items received are given a ‘Q’ status only and cannot be changed. When an item is received with a ‘Q’ status, you must go through the Quality Control function in the Stock > Quality control block to release the item so that it is available.



Product Categories (continued) The technical sheet selected at the Technical sheet field details the quality control tests to be applied to the product. Technical sheets are defined through the Technical sheets function under Quality records in the Common data > Product tables block. To add additional access restrictions for products from this category placed in quality control, you can optionally define a QC access code. -

This allows or prohibits the quality control on this pro duct.

-

The user can modify the status of a product and execute the Quality control function is this access code is associated to the users profile.

Lot Management

In the Lot Management section, select whether products are managed by lot. Select Optional Lot if it is possible to have the same product received with o r without a lot number. Select Lot and sub-lot to make provisions for management with sub lots, which are sub-divisions of a lot. -

The sub-lot number is also used as d ifferentiating criteria for the stock line.

-

The numbering of sub-lots is manual. You can enter a maximum of 5 characters and the system automatically defaults the first sub-lot number to 00001.

If lot numbers are entered, you can enter a lot sequence number at the Lot Sequence No. field. This will automatically number the lots up to a maximum of 15 characters. -

The lot sequence number structure selected is based on a sequence number definition defined in the Structures function under S equence number definition in the Setup > General parameters block.

If you are managing lots, you can also determine if the expiration date is managed in the Expires section. -

You can select whether lots are managed with or without rounding to end of the current month or beginning of the next month.

-

When a lot expires, you can use the Obsolete Status Change function to determine if the status is set to ‘A’, ‘Q’, or ‘R’.

-

You can use the quality control process to extend the expiration date or reject/dispose of the product.


Page 57


Product Categories (continued) Serial No. Management

In the Serial No. Management section, select whether products are managed by ser ial number. Select Issued to only define a serial number w hen an item is being issued. This may be necessary for customer tracking, verifying warranties, processing recalls, etc. Select Received and Issued to require a serial number upon receipt and issue. This also includes internal movements and transactions such as physical co unts. -

If selected, you can also manage the price associated with ranges of serial numbers.

If serial numbers are entered, you can enter a serial counter at the Serial counter field. This will automatically number the serial numbers. -

The serial number structure selected is based on a sequence number definition defined in the Structures function under Sequence number definition in the Setup > General parameters block.

-

A serial number consists of a maximum of 10 characters.

Dedication Locations

Select the Location management check box to indicate whether products assigned to this category are managed with the warehouse with respect to their physical sto cking location. If selected, you can define a set of dedicated locations for this category. For example, products associated with this category ma y be stored within specific areas of a warehouse. The actual location is determined when items are received. You can customize the descriptions available for selection with the exception of the first three for Receipt, Stock, and Picking.

Units Of Measure Tab Use the Units Of Measure tab to define the various units of measure used for stocking, purchasing, selling, and packing. For the packing unit, you can define a conversion, determine if the conversion is changeable, and define a label format for the shipping label. At the Issuing PAC field determines how the stock lines are exploded in the case where unpacking takes place.

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Product Categories (continued) Select Unpack to smooth out the fraction of the stock line by providing a split if necessary. -

For example, a stock line has 5 boxes each containing 12 units. 18 units are issued from this line, which results in 2 stock lines. One line with 2 boxes containing 12 units and one o ne line with 6 units.

Select Adjust coefficient to vary the quant ities in the Stock lines by division. This option is only available if the entr y of the coefficient is changeable. -

For example, a stock line has 5 boxes each containing 12 units. 18 units are issued from this line, which results in 1 stock line w ith 3.5 boxes with 12 units.

Select Fraction to vary the coefficient co efficient for the stock line by creating a split if necessary. -

For example, a stock line has 5 boxes each containing 12 units. 18 units are issued from this line, which results in 2 stock lines. One line with 3 boxes containing 12 units and one line with 1 box containing 6 units.


Page 59


Product Categories (continued) Receipts Tab Use the Receipts tab to define the stock management rules that apply to this specific product category. By default all a ll statuses associated with the type of product category you are creating display based on rules defined in the Stock management rules function.

Issue Flow Tab Use the Issue Flow tab to define the stock management rules that apply to this specific product category as well as the all a llocation ocation rules ru les to use for such issues as shipments, internal movements, orders, work orders, etc.

For a global assignment, it is possible po ssible to specify which statuses are regarded as available for the assignment. At least one option o ption must be selected. With the exception of the Mvt code field, the options in the Management Rules section are the same as discussed previously.

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Sage North North America Certified Student Student Course Curriculu Curriculum m - Version 4.0 Copyright © 2014 Sage, Inc. All Rights R eserved.


Product Categories (continued) Movement codes are another way to control settings defined for a movement type. Using movement codes, you can define different settings for the same movement type, as long as the movement code is different. -

These codes are created through t hrough the Data function under Miscellaneous tables in the Setup > General parameters block for table 14 Stock Movement Code.

-

You can associate movement codes co des when defining different transaction types define for Miscellaneous issues under Entry transactions in the Setup > Stock block.

Accounts/costs Tab Use the Accounts/costs tab to define account information information as well as the t he valuation method to assign to products associated with the category. cat egory.

The selection made at the Accounting code field determines the accounts to use for the different stock transactions. t ransactions.


Page 61


Product Categories (continued) The Tax level field is used to determine the tax rate. The tax rate applied to a transaction is based on the transaction type. -

The overall tax is determined by crossing the tax rule associated with a BP and the tax level associated with a product.

The option selected at the Valuation method field determines the valuation method for all products assigned to the category. Determines if the cost is entered and never o verwritten or calculated. When calculated, the cost can be manually entered but it is updated when the next calculation is performed. Typically as part of manufacturing. The Analytical section is used to assign default dimension values used when entering transactions. The Overheads section is used to enter overhead costs that are used in the e xpense and product cost price calculations.

Purchase/sales Tab Use the Purchase/sales tab to define information such as whether a product can be entered on a direct order, a minimum and maximum order quantity, and de livery tolerance percentage. All information on this tab can be changed when defining a specific product.

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Product Categories (continued) Purchasing

The Purchasing section is only available if Bought is selected on the Description tab. The Reorder LT field determines the number of reorder lead time days for a purchased product and the product lead-time days for a finished or semi-finished product. -

The number of days is also used to calculate the start date for the MRP suggestions.

The delivery tolerance percentage entered is the quantity on the order below which the closure of the order can be carried out after partial receipt. The Received product check box determines if a product must go through the receipt process. This is automatic for products tracked in stock; however, it is optional for products that are not managed. Select the Mandatory PO request check box to specify that a product cannot be entered on a direct order and that a purchase request is required first. Sales

The Sales section is only available if Sold is selected on the Description tab. The Type field determines the pro duct type as it relates to sales. The options available include Normal, Flex kit, and Fixed kit. -

For a Flex kit, an order line is generated for the parent product and for each component of the kit. The lines are independent.

-

For a Fixed kit, an order line is generated for the part product assembly and for each commercial BOM component, the order lines for the kit cannot be separated.

The delivery tolerance percentage entered is the quantity on the order below which the closure of the order can be carried out after partial shipment. You can also define a minimum and maximum quantity to be entered for a product on a customer order. If a product can be loaned out select the Loan authorized check box. For example, a product may be loaned out for a demonstration or trade show. Select the Back-to-back order check box to specify that a product can be subject to a purchasing or production direct order. -

If a direct order is planned, from a customer order, the system proposes to generate a purchase order and/or a work order, according to whether the product is purchased or manufactured.


Page 63


Product Categories (continued) The Back-to-back direct qty field defines the threshold for deciding when to create a back-to-back order. -

-

For example, if you keep 5 units of a product in the warehouse and you receive an order for 2, than they are shipped. But, if a larger order of 100 units is received, you cannot ship that many and would prefer to get your supplier to ship them directly to the customer. By defining a threshold of 3, you indicate that any order over 2 will go to a back-to-back direct order. In the example above, you would automatically create a back-to-back order for the 100.

Planning Tab The Planning tab is used to enter default values for the pro duct-site record. Settings defined are used as part of the reordering process and include the demand and firm horizons for the product, the reorder process used, and how to handle shortages in manufacturing a product. Note: Information on this tab is discussed as part of the Manufactur ing course and

reordering process.

Warehouses Tab The Warehouses tab is only available if warehouses are activated for a site and define the default warehouse for allocation and issue flows. Note: The usage of warehouses is discussed in the Distribution: Beyond the Basics

training course. Page 64



Products Use Products (GESITM) in the Common data > Products block to define your product information. Each product is assigned to a product category. The products defined are regardless of site.

Header In the Header section, enter a category, product ID and product description, as well as the product status.

If a sequence number was assigned to the product category, you cannot enter a product ID. The product ID is automatically generated when saving the newly created product based on the setting defined for the sequence number. The statuses for a product include: Active, In Development, On shortage, Not Renewed, Obsolete, and Not Usable. -

The default status depends on the creation mode for the category selected for the product. If the creation mode is Direct, the product status is Active. If the creation mode is With confirmation, the product status by default is In Development.

-

If On shortage is selected, the product does not appear in search windows but can be selected using direct entry of the product code. A warning displays; however, you can proceed.

-

Not Renewed and Obsolete are for information only.

-

Select Not Usable to prevent any selection of the product. The product does not display in search windows and it cannot be manually entered.

You can also add notes for a product. First, set up a category in Note category (GESNTG) in the Common data > Common tables block and then maintain the note in the Products function under Text in the Right panel. -

Once the note is created, you can click the Actions icon for a line in an order to view the note regarding the product.


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Products (continued) Identification Tab Use the Identification tab to enter descriptions for long titles use in screens and reports, define the start and end dates for the product, enter statistical groups, as well as enter an image for the product, or link to product information.

The Image section is used to enter an image associated with the product. You can select a .bmp, .jpg, .jpeg, .wmf, or .gif file type. -

You can either drag and drop the image into the Image section or click Select file to select it from a specific directory.

Use the Identification section to enter additional descriptions included on screens and reports. If a product line is selected at the Product line field, an additional pop-up window displays to enter the additional information for the pro duct. At the Service life start and Service life end fields, enter the dates for the product. Sales orders cannot be entered before the start date and purchases cannot be made after the end date. Page 66



Products (continued) At the Product information field, you can enter a path to a shared document, such as a PDF or enter an image file or link to a website for information about the p roduct. -

-

Once you enter a path, you can view the information directly from a sales order by clicking the Actions icon for the line in the order and selecting Product information. You can enter a common path to the document for the PRDINF parameter value in the Parameter values function in the Common data > General Parameters block. The parameter is found under the TC chapter and MIS group. In turn, the common path displays as a % in the Product information field.

Management Tab The settings on the Management tab are set based on the category selected. With the exception of the Recontrol/Expiration and Costing sections, the options are the same as discussed in the Product categories topic.

You can optionally define an alternate product at the Alternate product field. The item may be on the material requisition slips or suggested in the event of a stock-out in the production order management functions.


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Products (continued) Two additional options for Mandatory entry and Manual e ntry are available, allowing you to manually enter an expiration date. The Lead-time field represents the lead-time in number o f days. This is used in the calculation of the expiration date for a lot in stock. The Check leadtime field is used in the calculation of the re-control date for a lot. Re-control is a reinspection phase that occurs prior to the expiration date.

At the Recontrol status, you can determine the status given to the product when in the reinspection phase. This is assigned using the Re-co ntrol status change function. -

-

If the status is ‘A’, the product does not change status upon expiration. If the status is ‘Q’, the product can be QC tested upon re-control expiration date, to either extend is expiration date o r to reject and dispose of it. If the status is ‘R’, the product is rejected o nce it has reached its re-control expiration date. This field is not available if the expiration date is not managed.

The option selected at the Family field determines how the standard cost calculation distributed the material costs across 6 sub-totals. The material cost for the product is posted to the subtotal indicated at this field. -

This is a way to break portions of the cost down into important factors for business analysis.

-

For example, how only the sugar cost in a candy product because it is the most significant cost.

Units Of Measure Tab Use the Units Of Measure tab to define the unit of measure and pack units for this product. Information defaults from the product category and the options are the same as discussed previously.

Financials Tab Use the Financials tab to modify the accounting data and analytical information specific to the product. If you identify the product as a fixed asset, you can also select the accounting group. The group is assigned to the expense created for the acquisition.

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Products (continued) Sales Tab Use the Sales tab to define settings specific to selling the product. Information defaults from the product category. Only differences are d iscussed.

The product selected at the Substitution product field automatically replaces the current product on a sales order after the date defined. Defining this information is optional. In the Price section, define pricing information such as the base price and minimum price. -

-

-

At the Price origin field, you can select whether the base price is manually entered or based on a percentage of the purchase price. If Purchase price % is selected, you can enter the percentage applied at the % applied field. The theoretical price can be used in situations when free products must go through customs, and a market value, other than any of their normal selling prices, has to be declared for the products.

At the Warranty (mth) field, you can optionally define the number of months for a warranty for the product.


Page 69


Products (continued) After-sales Tab Use the After-sales tab to define information when creat ing a product that is considered a service.

Select the Creation of customer base check box to activate all the automatic features in the generation and tracking of the customer installed based on the service contracts association with the product. -

These features include the validation of the sales shipment, validation of the sales invoice, entry of the sales return, and entry of loan returns.

In the Contract Templates section, define the templates to use for the various service contracts. These contracts are defined through the Service contract templates function under Customer support in the Common data > Customer relation block. In the Type Of Consumption section, identify the type of service and units based on the type selected.

Customers Tab Use the Customers tab to define specific customer/product information. This includes the customer’s product ID and description, as well as any specific sales and packing unit of measure information.

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Products (continued) Supply Tab Use the Supply tab to define replenishment information. This defaults from the product category. You can also define a user that is responsible for the production planning and purchasing. In the Price section, you can define the base purchase price for the product. The LC coef, Fixed cost per unit, and Cost structure fields are used as part of Advanced Purchase Cost to account for such items as landed costs when determining the actual purchase cost o f an item. -

You can also define this information specific to the supplier on the Suppliers tab.

-

Advanced Purchase Cost is discussed in the Distribution: Beyond the Basics course.

Suppliers Tab Use the Suppliers tab to define specific supplier/product information. This includes the suppliers product ID, receipt cost factor, purchase unit, minimum quantity, and quality control information.


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Products (continued) At the Blocking field, you can prevent a supplier from being used by selecting Hold. You can also select Warning to display a warning message when the supplier is selected; however, you can still select the product on an order. The LC coef, Fixed cost per unit, and Cost structure fields are used as part o f Advanced Purchase Cost to account for such items as landed costs when determining the actual purchase cost o f an item. -

Advanced Purchase Cost is discussed in the Distribution: Beyond the Basics course.

You can define QC information specific to a supplier; although the product itself does not have QC control. The quality rank entered is for informational purposes only and identifies the factor assigned to the supplier with respect to quality (e.g. how many rejects are experienced on a receipt and how many QC failures).

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Product Sites -

Use Product – sites (GESITF) in the Common data > Products block to define product information specific to a site. You can also view stock movement information for each stock status, view total quantity received and amounts, as well as view cost information. Note: A majority of information comes from the settings defined for the product category and product. Only the differences are discussed.


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Product – Sites (continued) In the Header section, select the appropriate app ropriate product and site you are defining information for. You cannot modify the product pro duct status or stock unit of measure. In the Sampling section, you can determine if whole quantity received is quality qua lity controlled or only a single sample is pulled. -

If single is selected, you must select an acceptable quality level and a sampling sa mpling mode.

-

Select Global as the sampling mode to pull a sample quantity based on the quantity entered for the transaction.

-

Select Lot as the sampling mode to pull a sample quantity quant ity based on the quantity entered for a single lot.

Use the Packaging section to view stock detail. -

Whether or not you view the t he stock information in detail depends on the t he setting at the Stock detail check box.

For the locations assigned at the t he product category level, you can select a specific location type or enter a wildcard (*) to indicate you can use any location. The following is an explanation of o f the characters that can be used for pattern matching. -

*: Represents any number of o f characters, including null

-

?: Represents precisely one character.

-

#: Represents a digit.

-

!: Represents a letter

Planning Tab On the Planning tab, you can enter lead times t imes for production, QC, multi-level, purchasing, and picking. The multi-level multi-level lead time t ime is the cumulative lead-time of all the BOM levels, considering the quality control lead-times.

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Product – Sites (continued) Stock Tab Use the Stock tab to view information for internal and external stock movement based in the Stock status. For example, you can view internal stock for stock status ‘A’, ‘Q’, and ‘R’. You can also a lso view current stock allocations for each stock status and BP allocation.

The Stock on o n external sites and BP stock allocated fields include a Detail button that provides details for the total displayed.


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Product – Sites (continued) Totals Tab Use the Totals tab to view receipt and issue totals for a specific fiscal year and per iod range. Click the Lookup button next to the Period end field select a period range.

Calculated Data Tab Use the Calculated Data tab to manually enter safety stock, reorder point, maximum stock and EOQ, or view the same totals calculated by MRP.

Manufacturing Tab Use the Manufacturing tab to define information such as production and cost routing, automatic close percentage, and method of correction specific to the manufacturing process.

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Product – Sites (continued) Cost Tab Use the Cost tab to define the valuation method specific to the product/site combination. You can also determine how other costs are defined (e.g. manually entered or calculated) and unit price information.


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Product – Sites (continued) Cost Detail

Click the appropriate Detail icon to view the cost detail.

Counts Tab Use the Counts tab to view information regarding physical counts performed such as whether a count is currently in progress, the last global stock count, t he number of counts, and the number of accurate counts.

Warehouses Tab The Warehouses tab is only available if warehouses are activated for a site and define the default warehouse for allocation and issue flows. Note: The usage of warehouses is discussed in the Distribution: Beyond the Basics

training course.

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Product – Sites (continued) Mass Creation of Product – Sites You can also create creat e product-site combinations in mass instead of one-by-one or by import. This is done using the Product-si Prod uct-site te creation function funct ion under Utilities in the Common data > Products block.

You can create creat e product-site combinations based on all or selected cat egories, products, formula, and/or site. Click Simulation in the Right panel to simulate the creation process prior to actually creating the product-site records.


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Bill of Materials A bill of materials (BOM) is used to describe the list of component references for a given product.

In the program, you can define Commercial, Production, Sub-contracting, and Multi-level BOMs. -

Commercial BOMs are kits used on sales orders and in Inventory Assembly/Disassembly.

-

Production BOMs are used in the entry of product work orders and Inventory Assembly /Disassembly.

-

Sub-contracting BOMs are used to identify materials provide by the subcontractor or provided to the sub-contractor.

-

Multi-level BOMs are used to create multi-level bill of materials, which include multiple parent products that are assembled before the final product is assembled.

To define a BOM, you must first create BOM codes and the BOM product in the appropriate function. Before defining any BOM, you must first define the product and components in the Products function in the Common data > Products block. Note: Only the Commercial BOMs and Production BOMs functions are discussed in this topic.

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Sage North North America Certified Certified Student Student Course Curriculum Curriculum - Version 4.0 4.0 Copyright © 2014 Sage, Inc. All Rights Reserved.


Bill of Materials (continued) BOM Codes Use BOM codes (GESTBO) in the Common data > BOMs block to define codes that are used to identify the type o f bill of materials. You can create BOM co des for sales kits, manufacturing (production), and sub-contracting.

To use a commercial BOM, it must be assigned to a BOM code co de with Sales (Kit) selected as the type. To use a production BOM, it must be assigned to a BOM code with Manufacturing selected at the type. To use a sub-contract BOM, it must be assigned to a BOM code with Subcontracting as the type. You can use the Access Code and Site S ite fields to restrict the use of the code to users assigned to a specific access code or to a specific site. Information in the Use section is only available if Manufacturing is selected as the BOM type.


Page 81


Bill of Materials (continued) Commercial BOMs Use Commercial BOMs (GESBODC) in the Common data > BOMs block to detail the list of components needed to produce a specific product/kit. It is possible to have several product BOMs for a single product. Parent

In the Parent section, identify the parent product, whether it is managed by lot o r serial number, the stock unit of o f measure and the base quantity.

At the Parent product field enter the product you want to create. The product entered must already be defined as a product in the Products Produ cts function. function. At the BOM Code field, select the appropriate BOM code. You must select one that is defined as Sales Sa les (Kit). The reference date entered determines the components listed. Only those parent/components valid for the reference date entered display. -

-

This is important if you want to review co mponents valid for a given period of of time. To modify, the information, the reference date must be empty.

The management unit selected defines the quantity of the BOM components on a base other than the product unit.

Page 82

-

It is possible to enter a BOM for one product, 100 product units, 1000 product units, or expressed as a percentage or for a product lot size.

-

In the definition expressed as a percentage, the total of the quantities quant ities of the components must be equal to 100.



Bill of Materials (continued) The base quantity entered at the Base Quantity field depends on the management unit selected. -

If the management unit selected is One, Per Hundred, Per Thousand, or Percentage, the base quantity is forced to being 1, 100, 1000 or 100% respectively.

-

However, if By Lot is selected, the base quantity can be entered. If the alternative BOM selected is dedicated to a site, it is initialized by lot size for the product in the site.

The Valid from and Valid to dates represent the start and end date, which is used to limit the use of the BOM. If the use status is In Development, the BOM cannot be used. Components Tab

Use the Components tab to list the components needed to create the parent product. This includes the component type, quantity, and validity dates.

You can manually enter a sequence number or accept the default sequence number provided. -

This is used as sort criteria and makes it possible to select the same component several times with different characteristics in the same BOM.

-

The first sequence number automatically assigned and t he automatic increment value between sequence numbers is determined based on parameters defined.


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Bill of Materials (continued) At the Selection formula field, you can optionally define a selection formula for components. This defines the list of variations that can be selected for a component.

-

The formulas available must have Select components as the formula type.

-

In the formula, you can use fields coming from the following tables: o

ITMFACILIT (Product sites)

o

ITMMASTER (Products)

o

ITMMVT (Product sites totals)

o

ITMSALES (Product sales)

o

Some global variables.

At the Link quantity field, enter the number of components necessary for the base quantity parent product. -

Page 84

For a management unit in percentage, the total quantity entered for all components must equal 100%.



Bill of Materials (continued) At the Qty formula field, you can also optionally define a quantity formula to propose default quantities for a set of components depending on the context. For example, you can define a formula that multiples the component by the quantity entered for the parent product. -

The formulas available must have Component quantities as the formula type.

-

In the formula, you can use fields coming from the following tables: o

ITMFACILIT (Product sites)

o

ITMMASTER (Products)

o

ITMMVT (Product sites totals)

o

ITMSALES (Product sales)

o

SBODLINK (Contains information from the context)

o

Some global variables.

You can enter a valid from and to date for each component listed, allowing you to add options and components that are only available for a limited time. You must also determine if the components defined are printed on acknowledgements, shipment notes, and invoices.

Component Type The type selected at the Component type field determines how the component selected is used. There are five options available: Normal, Option, Variant, Multiple option, Normal (with formula). -

Select Option if the component selected is not mandatory and the user can select to ignore it when entering a sales order.

-

Select Variant if the component select is mandatory but the user can choose from a minimum of 2 components.

-

Select Multiple option if you want to select several options at one time for a component.

-

Select Normal (with formula) to propose a screen selection for normal components. With this component type, at least one product must be selected.

The Option and Variant types allow you to link a group of components of the same type (options or variants) to the same sequence number. -

The sub-sequence number defined at the Sub field allows you to differentiate the components associated with the same sequence number.

-

For example, when defining a graphics workstation computer you can indicate that a Monitor is required (Variant) but give several opt ions for the size. You would list the appropriate products using the same sequence number but a different sub-sequence number.


Page 85


Bill of Materials (continued) Production BOMs Use Production BOMs (GESBODP) in the Common data > BOMs block to detail the list of components needed to produce a specific product. It is possible to have several product BOMs for a single product. The options available in this function are similar to those discussed for Commercial BOMs and in-depth information for this function is covered in the Manufacturing Fundamentals course. -

Only the basic differences to the Commercial BOMs function are discussed.

When adding a component, an additional field for component t ype is available. The options available at the Component Type field include Normal, By-product, Text, and Costing. -

Normal: Used by Inventory and production. The component is always present in

the BOM used in order entry. -

By-product: Used by production. (Note: It is possible to set up a tool as a by-

product. First, set up the tool in the Products function as a tool type. -

Text: Used by production.

-

Costing: Used by production.

At the Quantity BOM UOM field, enter the quantity needed for the production of the BOM. -

You can also enter the corresponding stock unit of measure at t he Link Quantity STK field.

-

The option selected at the Link quantity code field determines if the quantity entered is proportional or fixed. If Proportional is selected, the quant ity is multiplied by the quantity needed to build the number of parent products. If Fixed, the quantity is the same regardless of the number of parent products built.

-

You can also select to round the quantity based on an option selected at the Round the quantity field.

If the component is lot managed, you can enter the first lot and/or last lot for which the component link is valid. The remaining fields are used as part o f the production process if manufacturing. This information is discussed in the Manufacturing Fundamentals curriculum and not as part of assembling or disassembling a pro duct in Inventory.

Page 86




Create a new allocation rule In this Practice, create a new allocation rule that is based on units of measure and location priority. 1. From the Setup > Stock block, select Allocation and issue rules. 2. Click New. 3. Enter ALL09 as the rule code and LIFO by Units and Loc as the description. 4. Select LIFO as the sequence of lots. 5. For the first row, select Status ‘A’ as the quality filter, Location 1 product as the location, and Yes for the DOC unit. Accept all other defaults. 6. Enter the remaining information using the figure below.

7. Click Create. 8. Return to the Navigation page.

Create a new product category In this Practice, create a new product category. 1. From the Common data > Products block, select Product categories. 2. Click New. 3. Enter DIRLT as the category ID and Direct order – Lot Number as the description. 4. On the Description tab, enter Direct - LT as the short title and verify Direct is selected as the creation method.


Page 87


Lesson Practices (continued) 5. In the Types of flow section, select the Bought and Sold check boxes. After tabbing away from the Sold check box, notice the Deliverable check box is automatically selected. 6. On the Management tab, select Managed in the Stock management section, if it is not already selected. 7. In the Lot management section, select Mandatory Lot , and verify LOT defaults as the lot sequence number. 8. At the QC management field, select Changeable Control. 9. On the Units Of Measure tab, enter EA as the stock unit. Tab through and accept the default unit of measure for purchase, sales, statistic, and EU units. 10. In the Pack unit section, select PAL as the unit, enter 100 as the conversion, select Yes at the Changeable field, and Adj. coeff at the Issuing PAC field. •

Add the following additional pack unit: select PAC as the unit, enter 10 as the conversion, select Yes at the Changeable field, and Unpack at the Issuing PAC field.

11. On the Receipts tab, verify that the Analysis request field for Supplier Receipt is set to Yes. If not, change it now. •

The management rules defaulted from the stock management rules defined; however, they can be changed. The same is true on the Issue flow tab.

•

You can view the stock management rules defined by selecting Default rules under Management rules in the Right panel of this function.

12. On the Accounts/costs tab, select FINPRODUCT as the accounting code and AVC (average cost) as the valuation method. 13. Click Create. 14. Return to the Navigation page.

Create a New Product In this Practice, create a new product. 1. From the Common data > Products block, select Products. 2. Click New. 3. Select BMSOL as the category and enter Adult Helmet as the description. •

You cannot enter a Product ID. Why? _________________________________

4. On the Identifications tab, enter Adult Helmet as the second description and enter HELMET as the search key.

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Lesson Practices (continued) 5. In the Statistical Groups section, make the following selections: •

Group 1 = 20 (Bike)

•

Group 2 = 21 (Bike)

6. On the Sales tab, enter 29.9500 as the base price. 7. On the Suppliers tab, select supplier NA053. Enter 07001-00270 as the supplier’s product ID and Adult’s Helmet as the description. 8. There is a minimum purchase quantity of 3. 9. Click Create. 10. What is the product ID created? ______________________ 11. Return to the Navigation page.

Create a New Product/Site Definition In this Practice, assign the product you created earlier to a site. 1. From the Common data > Products block, select Product - sites. 2. Click New. 3. Select BMS059 as the product and NA012 as the site. 4. On the Management tab, verify Annual Count is selected at the Count mode field. For the Receipt location, select STO as the location type. 5. On the Planning tab, select By ROP at the Reorder mode field. Enter the following additional information for reordering. •

Safety stock = 100

•

Reorder threshold = 300

•

EOQ = 500

6. In the Lead times section, enter 10 as the purchasing lead time. 7. Click Create. 8. Return to the Navigation page.


Page 89


Lesson Practices (continued) Commercial BOMs In this Practice, modify an existing commercial BOM to include variant options. 1. From the Common data > BOMs block, select Commercial BOMs. 2. The FIN009 kit should already be selected. If not, select it now. •

How many selection screens will display?___________________

•

Which items include a quantity formula? ___________________

3. In the first open row, select EXP002 as the component and enter 1 as the link quantity. 4. Select Normal as the component type. 5. Click Save. 6. Return to the Navigation page.

Page 90



Lesson 5 Standard Costing In the following topics, you will learn how to define information necessary for establishing and calculating the standard cost of products. The topics in this lesson include: 

Standard Cost



Revised, Budgeted & Simulated Standard Costs



Cost Calculation



Cost Transfer


Page 91


Standard Cost The standard cost is used to value the stock and the movements for semi-finished or finished products. The standard cost is unique for a product-site and year. Accounting methods are used to track the difference between a standard cost and the actual cost to produce a finished good or paid for a product. A standard cost for a given year is unique, only the last calculation of standard cost for a given year is saved. -

The cost of the previous years is archived in history. You can view this archived cost information using the History function in the Costing > Performance analysis function.

The standard cost defined is the cost used for accounting when products are sold, when inventories are taken, and when purchases are made. Only information specific to establishing a standard cost without Manufacturing is discussed. Information on rollup costs as part of the manufacturing process are discussed in the Manufacturing Fundamentals course.

Page 92



Standard Cost (continued) Standard Costs Use Standard costs (MDITC) under Products - costs in the Co mmon data > Products block to create, modify, and/or manually parameterize the calculation of the various types of estimated costs for a product.


Page 93


Standard Cost (continued) In the Header section, select the product, site and fiscal year for which are defining standard cost information. -

-

The option selected at the Cost group field specifies the material cost group to which the product belongs. The Update field determines if the cost calculation modifies the data entered for this cost type. If Calculated is selected, t he existing costs are overwritten by the next calculation.

On the Level Cost tab enter single-level cost information. Fields such as Machine, Labor, and Subcontract are typically used in the manufacturing process. Click the Detail icon to display the sub-totals of each component of the cost. -

-

-

For example, you can view what percentage of the total cost is based which value defined (e.g. material, machine, labor, etc.) You can also define additional cost information for such items as Labor by entering an amount for each cost group. You can also identify the overhead by breaking it down between material, machine, labor, and subcontract overhead.

The Multi-level cost and Calculation Parameter tabs are u sed to view cost information as part of the manufacturing rollup process.

Page 94



Revised, Budgeted & Simulated Standard Costs The program provides you with the ability to create revised, budgeted, and simulated standard costs, which you can use to plan and test the impact of changes to the final cost of a product. Note: Each of the functions discussed is located under Products – costs in the Common data > Products block.

Use Revised standard costs to prepare the way for a new standard cost following the revaluation of a material, hourly rate, etc. -

For tracking purposes, you can prepare a revised standard cost at periodic intervals such as every month or every quarter.

-

Based on the parameters defined for ACCCSTIFA, Revised Cost Accounting Interface and ACCCSTENT, Revised Cost Automatic Journal, creation of a new revised standard cost can revalue the inventory based on this new price, even if the cost method used for the product is the standard cost.

Use Budget standard costs to define the budgeted cost of a product. -

The budgeted standard cost is generally used in order to prepare provisional costs for the year N+1 (where N represents the current year).

-

You can only define one budgeted standard cost per year, per product, and per site.

Use Simulated standard costs to define the simulated cost of a product. It is used to view the impact of anticipated changes to your production costs. It can also be used to develop the budgeted cost for the next fiscal year. The options available in each of the functions are the same as those discussed for the Standard costs function. Once you have defined a revised, budgeted, or simulated standard cost, you can compare them to the standard cost of a product using the Cost comparison function in the Costing > Performance analysis block. You can also use the Stock valuation report under Valuation in the Stock > Periodic processing block to analyze and compare the value of the on-hand quantity of a product under standard and revised standard cost. This is done for the entire inventory, a sub-section of the inventory, or a single product.


Page 95


Cost Calculation After defining a standard, revised, budgeted, and/or simulated standard cost, you must use the appropriate calculation function to calculate the cost and perform any necessary updates. Each of the cost calculation functions are located in the Costing > Cost Calculations block. You can also calculate cost for a specific product-site combination within the appropriate setup function (e.g. Standard costs, Revised standard costs, etc.) by clicking Calculation in the Right panel.

Standard Cost Calculation Use Standard cost calculation to calculate the standard cost of a product based on criteria you define; including whether to include all products or only a range of products.

The Unique option in the Product section must be selected when a product reference is entered. Page 96



Cost Calculation (continued) The product selected at the Product field is the product on which the standard cost calculation is carried out. At the Calculation quantity field, if a product reference is entered, this field initializes to the quantity of the economic lot, technical lot, or defaults to 1. The Fiscal year field refers to the fiscal year set up in the Fiscal years function. The Date calculated field is the date stored in product-cost. This field defaults to the current date and is not necessarily included in the calculation year (for example, t he calculation of the 2015 budget performed in 2014). -

This date is used as a reference for the validity dates of the BOM links that will be taken into account.

The BOM type field is used to distinguish between the sales BOMs and the BOMs used by production management. The BOM code options allow you to manage structures of different products according to their use: requirement calculation, sales o rder entry, production, etc. -

Several BOMs can be defined for a single product reference.

The Fixed costs distribution field makes it possible to consider whether the fixed cost components will be multiplied by the calculated product quantity/economic lot quantity combination or whether the fixed costs will be posted by total amount. The Material cost selection fields determines the cost type by wh ich to value the material. The Dimension rate selection field provides a cho ice of four dimension rates for the time valuation: standard rate, updated, budget, or simulated. The Overhead column choice field allows you to select one of the four columns describing the overhead costs. In the Update section, the following options can be selected: No

No update – only printing is possible.

Deferred

The update can be performed using the Calculated Cost Update function in the Costing > Cost calculations block.

Immediate

The update of the Product-cost table is performed at the end of the process.


Page 97


Cost Calculation (continued) Revised, Budgeted & Simulated Cost Calculation Use Revised cost calculation to calculate the revised cost of a product(s). -

During the update of a new revised standard cost, it is possible based on parameters defined to revalue the stock value of the semi-finished and finished products resulting in a journal entry.

Use Budgeted cost calculation to calculate the budgeted cost of a product(s). Use Simulated cost calculation to calculate the simulated cost of a product(s).

Calculated Cost Update Use Calculated cost update (CALCSTUPD) in the Costing > Cost calculations block to update the calculated costs deferred using the appropriate calculation function. You can select to update all deferred calculations for Standard, Revised Standard, Budgeted Standard, and Simulated. Information is updated specific to a site selected.

If Standard and/or Revised Standard are selected, an accounting automatic journal is created according to the required parameters. A log file can be printed at the end of the update process.

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Cost Calculation (continued) Performance Analysis Use the functions under the Costing > Production analysis block to assist with comparing costs. Use Cost comparison (COMPCOUT) to compare two projected costs or two cost prices for a given product, whether they are calculated on the same site or two different sites. -

You can calculate the variances in percentage or in quantity, with a comparison by unit or total amount.

-

Variances by cost categories (Material, Machine, and O verhead) are displayed on various tabs.

Use Multiple cost comparison (COMPCOUTM) to compare two costs using several criteria. -

For example, you can co mpare a revised standard cost for a given year with another revised standard cost for any basic product, or for products in a selection.


Page 99


Cost Transfer Use Cost transfer (COPYCOUT) in the Costing > Miscellaneous processes block to copy a provisional cost for a product or selection of products at a site to another provisional cost for the same site or another site. For example, you can create a new budget from the revised standard cost or the standard cost defined or to transfer the costs for all the products of one type to another or from one site to another. When setting up the transfer, you can determine the products, a factor to increase/decrease the cost transferred, the source (site, cost type, fiscal year) and destination (site, cost type, fiscal year).

A journal entry is made whenever the standard cost of an item changes causing a change in the value of the inventory.

Page 100



Lesson 6 Entering Transactions In the following topics, you will learn how to enter transactions in Inventory including miscellaneous receipts and issues, inter-site transfers, stock changes, and assembly and disassembly of products. The topics in this lesson include: 

Transaction Principles



Miscellaneous Receipts



Changing Receipts



Miscellaneous Issues



Modification of Issues



Inter-site Transfers



Assembly



Disassembly



Stock Change

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Orders In Process

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Lesson Practices


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Transaction Principles Transactions in Inventory are individual activities that affect (create, update, delete) stock lines. You define the different types of transactions for each event such as a receipt. -

The transaction type defines the document screen including required, not required, keyed, and disabled fields.

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You can have multiple transactions types for a single function.

Documents are functional events such as a receipt, issue, physical count that affect stock. -

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Documents contain headers that define information common to all lines or to serve as the default values for the lines.



Transaction Principles (continued) There are three basic transaction categories that affect stock.

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Receipt transactions result in an increase of stock quantity at a site or facility.

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Issue transactions result in the decrease in the stock quantity at a site or facility.

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Internal transactions do not necessarily have any net affect on the inventory balances (e.g. location change, status change). They can result in changes to the balances within a facility or between facilities (e.g. c ycle count or inter-site transfer).

Key Concepts Default values are managed by the stock management rules. -

For example, a default status of ‘Q’ can be assigned to inventory received via a customer return.

Standard stock transaction defaults are overridden by product category and movement code. -

For example, stock management rules require all receipts default to ‘Q’ status. Customer has multiple warehouses and wants an override for inter-site transfer receipts.


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Transaction Principles (continued) The following is a partial list of elements that can a ffect transactions entered. -

Stock Management Rule

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Product Category Override

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Product

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Product-Site

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Transaction Definition

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Location Control

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Product Attributes (lot, sub-lot, serial number)

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Physical Characteristics (size, weight, etc.)

Transaction Prerequisites Before entering inventory transactions, you must ensure the following: The product is set up to be stock managed, lot, sub-lot and serial management has been defined appropriately, and the appropriate units of measure and conversion are defined for the product. At the product-site level, you have defined the stock management settings, location management information (if used), material tracking method, and valuat ion method. The fiscal year and period have a status of Open in order to process stock transactions. The individual period stock status has a value of Open.

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Miscellaneous Receipts Use Miscellaneous receipts (GESSMR) in the Stock > Receipt/issue transactions block to enter miscellaneous receipts of a product. A supplier is not required and it is not tracked by a purchase order. Using this function, you can receive into stock using location of the type “waiting put-away”. This stock will later be put-away into the final location via the put-away plan. Depending on the product (lot number, serial number) and facility (location managed) a receipt can require a significant amount of data to process. -

The majority of these values can default based on the parameterization and setup; however, it is essential they be verified and entered correctly.

Entry Transaction If you have defined more than one entry transaction type for miscellaneous receipts, you are prompted to select the transaction type. Remember, the transaction type selected impacts the information entered, displayed, etc.


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Miscellaneous Receipts (continued) Header Information In the Header section, enter the appropriate information. This includes information such as the site, posting date, and project.

The site selected must have Stock selected as the type of site. When searching for a product, the selection window displays those products associated with the site. The entry number is assigned when the transaction is created. This is based on the sequence number defined. You cannot enter a future date at the Allocation date field, regardless of the open period or fiscal year. You can accept the current date or enter a previous date. The transactional group selected is for statistical information tracked in the stock journal. The Project field is for reference only when e ntering a miscellaneous receipt in Inventory. In cases where the receipt transaction authorized a dock receipt, a Dock location field displays, which is used to enter a default location for each receipt line.

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You can only select a location that is defined as a Dock type.

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This authorized the receipt into stock when the lot characteristics, sub-lot, serial number are not necessarily identified immediately.

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This type of receipt is used to rapidly receive the goods and to then later more precisely identify them and put them away using the Storage plan function in the Stock > Internal transactions block.



Miscellaneous Receipts (continued) Lines Tab Use the Lines tab to enter information for the product received. This includes the product, unit of measure, quantity, stock unit of measure, status, location, and lot/serial information if applicable.

After selecting a product, click the Actions icon in the Product field to access options for viewing the stock management rules, unit of measures, and properties. -

The product displays in red at t he Product field until all required data is entered for the line.

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The product description defaults; however, it can be changed.

If the receipt unit of measure is different to the stock unit of measure, you must verify the conversion information is correct including the q uantity stock. The Status field displays the status that will be assigned to the quantity received. -

The default status is based on the management rule defined either as the g lobal stock management rule or the product specific management rule.

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If the product is managed with non-modifiable quality control, the status is set to ‘Q’ and cannot be changed in this function.

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Regardless, the list of statuses authorized by combining the management rule and the quality control management method for the product is available by rightclicking in the Status field and selecting Select.

If the product is managed by location, you can select the appropriate location information at the Location type and Location fields. -

If the product is not managed by location, these fields are not available.

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Default location information is displayed based on t he set up of the product and is modifiable.

At the Unit price field, enter the cost value per stock unit. -

It is important to remember that the valuation metho d for the product is defined by product category or product/site information. It can be defined based on the type of receipt movement.


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Miscellaneous Receipts (continued) Lot If a product is lot managed, different cases are possible based on the lot management rule associated with the movement type and the product lot management rule. Mandatory or Optional Lot

If a product is managed with mandatory or optional lot, access to the lot field depends on the parameters defined for the receipt transaction used as well as the management rule for miscellaneous receipts defined in the product category or the stock management rules. For the above management rules, you can specify if the lot is not entered, free entry, or must use a new lot. It is also possible to default the lot to the supplier lot number or document number for the transaction. -

If defaulted with the document number, it is not visible during data entry if the document number is automatically generated when the transaction is created.

If a lot number is not entered either the movement management rule allocation the document number or the system will use the lot sequence number counter for the product to allocation a new lot number.

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Miscellaneous Receipts (continued) If a product is managed with optional lot and a lot number should not be entered for a product receipt, you must right-click in the Lot field and select Blank Lot. -

This will prevent the system from creating the lot based on either the document number or the sequence number counter.

Sub-Lots

If the product is managed by lot and sub-lot, you must also enter the associated sub-lot number to the internal lot number. By default, the system proposes the sub-lot number 00001 if no sub-lot number has previously been assigned during receipt entry. -

Once the first sub-lot number is entered for a product, the next sub-lot number is defaulted as an increment of the last sub-lot.

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If the last sub-lot number corresponds to a character chain that cannot be incremented (e.g. AAAA), the system will not provide a default sub-lot number.


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Miscellaneous Receipts (continued) Supplier Lot

A supplier lot number can be entered for informational purposes. Based on settings defined, the system may default the internal lot number to match the supplier lot number. You can either enter a new supplier lot number or click the Act ions icon in the Supplier lot field to select an existing supplier lot number entered. Lot Complement

If you enter a lot number, the Enter lot complement window displays. In this window you can view information for the lot and enter any expiration and user-defined information. This window can also be accessed by right-clicking on the line and selecting LOT complement.

Serial Numbers If the product is managed by serial numbers at the receipt/issue, it is mandatory to enter one or more serial numbers based on the quantity received. Serial numbers are entered in the Enter detailed quantities window where you can enter a starting and ending serial number. If a serial number is not defined, the system will generate serial numbers based on the settings defined for the product. The system verifies that the serial numbers entered are not already in stock. When several serial numbers are received into stock, the last serial number contains the final serial number, on the condition that the numbers are consecutive.

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Miscellaneous Receipts Detailed Quantities If the receipt unit of measure, status, location, lot, or serial number is different for the quantity received for a product, you can use the Enter detailed quantities function to split the quantity received to enter different information than the originating document line. For example, if product A is received with a quantity of 10, and five are placed at location Rack1A and five are placed at location Rack1B, you would: -

Enter the original 10 received for product A on the lines tab, and

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Use the Enter detailed quantities function, to show the separation of the quantities to the two different locations.

If a receipt line is distributed over several different units of measure, status, location, lot, or serial number, the corresponding field on the Lines tab displays $ in the field.

If the product is tracked by serial number, you can enter individual serial numbers. You could also enter a single line with a starting and ending serial number range. Click the Actions icon in the Serial number field to use the Serial Counter feature to automatically assign a serial number based on parameters defined.


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Changing Receipts Use Change receipts to modify the information entered for a receipt line on a specific document. For example, if you received the wrong quantity or entered the wrong cost, location, lot, etc. The Change receipts option is accessed by selecting the document to modify in the Miscellaneous receipts function and clicking the Actions icon on the line to modify. You cannot enter modifications if the stock has already been selected or shipped. You can also use this option to delete a line from a receipt document. When saving a modification, the original movements are cancelled by reversing movements in the stock journal and creating a new stock movement corresponding to the correction with the date of the original movements.

The options available are similar to entering quantity details for a line item. If you add additional lines, the quantity will increase for the receipt. You can click the Actions icon on a line to delete and re-enter with the appropriate information.

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Miscellaneous Issues Use Miscellaneous issues in the Stock > Receipt/issue transactions block to enter a miscellaneous issue of a product. A business partner/customer is not required and it is not tracked by a sales order. Using this function, you can issue out of stock products based on the product management rules and allocation rules defined.

Entry Transaction If you have defined more than one entry transaction type for miscellaneous issues, you are prompted to select the transaction type. Remember, the transaction type selected impacts the information entered, displayed, etc.


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Miscellaneous Issues (continued) Header Information In the Header section, enter the appropriate information. This includes information such as the site, posting date, and project.

The site selected must be set up as Stock. When searching for a product, the selection window displays those products associated with the site. The entry number is assigned when the transaction is created. This is based on the sequence number defined. The Project field is for reference only when e ntering a miscellaneous issue in Inventory. The transactional group selected is for statistical information tracked in the stock journal.

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Miscellaneous Issues (continued) Lines Tab Use the Lines tab to enter information for the products to issue. This includes the product, unit of measure, quantity, stock unit of measure, status, location, and lot/serial information if applicable.

After selecting a product, click the Actions icon in the Product field to access options for viewing the stock management rules, unit of measures, and properties. -

The product displays in red at t he Product field until all required data is entered for the line.

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The product displays in green, the actual stock to be issued is not completely determined. This is typical if there is not enough stock available.

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The product displays in black when a ll information for the product to be successfully issued has been correctly entered.

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The product description defaults; however, it can be changed.

Based on the settings for the product selected, you can issue the product in a packing unit different to the stock unit of measure. -

If the issue unit of measure is different to the stock unit of measure, you must verify the conversion information is correct including the quant ity stock.

At the Status field, select the status of the product to issue. -

The statuses you can issue are determined based on the product/stock management rules defined.

If the product is managed by location, you can select the location stock is pulled from at the Location field. -

If the product is not managed by location, this field is not available.

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Default location information is displayed based on t he set up of the product and is modifiable.


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Miscellaneous Issues (continued) Determination of Stock to Issue

The entry of information on the line represents the filters for the determination of the stock lines to be issued. It is possible, that an issue line corresponds to the issue of several stock lines distributed over several lots, sub-lots, serial numbers, statuses, locations, etc.

If you enter all information for the stock line on the Lines tab including the lot, a single stock line is generated and the issue is made based on this information only. If this information is different for the total quantity issued, such as different lot numbers, leave the information blank for the appropriate field on the Lines tab.

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If the transaction is set up for automatic determination of stock to be issued, the system attempts to automatically determine the stock to be issued on the basis of the information entered for the line, the allocation rule assigned to the movement for the product category, and the product management rule assigned to the miscellaneous issue.

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If parameters are not set to automatically determine the stock to issue, the Stock Issue Entry window automatically displays, and you can select the items to issue from the picking list displayed.

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Regardless of how the actual stock to be issued is selected, a $ displays at the appropriate field on the Lines tab indicating the quantity was distributed over multiple lots, serial numbers, locations, etc.



Miscellaneous Issues (continued) Stock Issue Entry

The Stock issue entry window displays if you have not defined enough information on the Lines tab for a product to determine what to issue from stock. You can also access this window by clicking the Actions icon o n a line and select Stock issues to view or modify the actual stock selected to issue for the product.

The Left list display the stock available for selection based on the product and additional information entered on the Lines tab. The information under Stock Issues displays information from the M iscellaneous issues page such as the site, packing unit of measure, product, and quantity to ship. When selecting stock from the Left list, you can enter the quantity on the line created in the Issues section. -

For example, if you are issuing a quantity of 10 for a product that is lot managed, you can select to 5 from one lot and 5 from another lot.

Click Proposal in the Right panel to have the system propose which stock to issue based on additional criteria you define. You can also define a search criteria to limit the options displayed in the Sto cks Selection list by clicking Selection criteria in the r ight panel.


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Modification of Issues Use Modification of issues to modify the information entered for an issued product line on a specific document. For example, if you issued the wrong serial number during data entry or entered the wrong quantity. The Modification of issues option is accessed by selecting the document to modify in the Miscellaneous issues function and clicking the Actions icon on the line to modify. You can also use this option to delete a line from a miscellaneous issue document. When saving a modification, the original stock issues are cancelled by reversing the movements in the stock journal and creating a new stock movement corresponding to the correction with the date of the original movements.

You can increase or decrease the quantity to ship at the To ship field. In the Issues section, you can delete lines to reselect based on a different location, lot, or serial number. If any other information must change, you must delete the line and re-enter the correct information. Page 118



Inter site Transfers -

Use Inter-site transfers in the Stock > Receipt/issue transactions block to process product transfers between sites. You can transfer products from one site to another within the same company or a different company.

When transferring products from site-to-site, you can modify the status and stock unit of measure in the destination site. Similar to other functions, you must select the transaction type when accessing the function if multiple types have been defined.

Header Information In the Header section, select the sites you are transferring products to and from, as well as enter any additional information such as the posting date, and purchase site or sales site.

At the Storage site field, select the site from which you are transferring products. In the Intersites section, enter information to which you are transferring products. The fields available are based on whether the destination site is in the same company or a different company.


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Inter-site Transfers (continued) If the destination site is part of the same company, it is considered an inter-site transfer. If the destination is part of a different company, it is considered an intercompany transfer. -

The Address field defaults to the default address for the destination site, but can be changed.

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If the purchase site is defined as a customer, the destination address is the delivery address of the customer corresponding to t he destination site (reception site of the ship-to customer).

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The Inter-company check box is automatically selected when the destination site company is different to the site company, and it cannot be changed.

The Purchase site and Sales site fields are only available for intercompany transfers. -

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The purchase site defaults to the destination site, if it is defined as the Purchase type. If not, the system selects the first site of the Purchase type for the destination company. The sales site defaults to the stock site (origin of the transfer) it is defined as a Sales type. If not, the system assigns the first site of the Sales type having the same financial site as the stock site. If this is not possible, the system assigns the first sales site being part of the same company as the stock site. o

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By default, the To be invoiced check box is automatically selected for an inter-company transfer. This check box is not available for inter-site transfers.

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The invoicing is made using the Auto transfer invoices function in the Sales module.

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Once the transfer is invoiced, the document number of the invoice is updated in the transfer document.



Inter-site Transfers (continued) Selection & Stock Lines After defining the stock and destination sites, you must identify the products to transfer.

At the Product field in the Selection section, select the product to transfer. The Stocks Select list in the Left List box is updated to show the stock lines to choose from for the transfer. -

For example, you can choose stock from a specific lot or serial number.

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You can optionally click Selection criteria in the Right panel to enter search criteria for specific stock lines (e.g. a specific lot or serial number).

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Once you enter the transfer information, you can return to this field to select any additional products to transfer.

In the Stock Lines section, enter the quantity to transfer, the status of the product in the destination site, and unit of measure and location information. -

The quantity transferred is limited to the available quant ity for the stock selected.

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Based on the role of the transaction used, it is possible to change the dest ination information in order to specify the destination status and u nit of measure either directly on the line or through the Enter stock change detail window.

The issue movement rule from the originating site and the corresponding receipt movement rule in the destination site are valued with the same value according to the valuation of stock issue movements rule. -

The issue is valued according to t he issue valuation rule.

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The receipt movement is valued according to the receipt of inter-site transfer valuation rule.

Additionally, the system carries out a search on the price amongst the existing intercompany sales price lists. From this is taken the ex-t ax price of the stock unit expressed in the company currency of the destination site. -

This price can be used as the order price on the receipt movement.


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Inter-site Transfers (continued) After entering information for a product, you can click the Actions icon on the line to access the Enter stock change detail option. This option works the same as discussed in other functions. -

Through this window, you can split the line entered so that the quantity transferred is split to different locations, unit of measure, etc.

If you enter the transfer of a product by mistake, you can delete the document to reverse the transfer. This is done by selecting the appropriate transfer document and clicking the Delete button.

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Assembly Use Assembly (GESBBY) in the Stock > Internal transactions block to assemble components in order to create an assembled parent product, without the necessity of using a work order.

The assembly creates a receipt into stock of the assembled parent product and the issue from stock of the various components.

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The stock information is pre-loaded by default according to the rule for the management of miscellaneous receipt movements defined at the level of the product category to which the parent product is assigned.

The valuation of assembly movements is different for the parent product and components. -

If the cost is not entered for the parent product, the value of the receipt is calculated based on the sum of the issue costs of the components.

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The component issue cost is based on the valuation rule defined for issues of each of the products.


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Assembly (continued) Assembly In the Assembly function, enter information for the assembly including the site, posting date, parent product, and component information.

In the Parent Product section, select the product to build and enter the unit of measure, quantity, and cost if applicable. -

The Type selected for the parent product determines if you are building a kit or manufacturing the product. The option selected also impacts the BOM code selected at the Alternative field.

The Components tab automatically lists the4 components based on the parent product selected. You must also select the appropriate lot(s) and serial number(s) based on how the product is managed.

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Assembly (continued) You can delete components listed or add additional ones for this specific assembly. -

You can only add a component defined as a phantom item if there is stock available.

If a phantom component is managed in stock and has sufficient stock available to cover the assembly requirements, the phantom remains on the component list. -

If the phantom component has not got sufficient available stock, it is removed and the component items are listed in the assembly.

The quantities to be issued for each component are calculated from the assembly quantity and the BOM line quantity for each component. -

You can modify the quantity. If the same component is listed twice, the quantities are not grouped into a single issue line; rather several issue lines are generated.

The determination of stock lines to issue is based on the detailed allocation rule dedicated to internal movements and o n the management rules for miscellaneous issues defined for the component’s product category. You can manually determine the stock lines to issue by right-clicking on the component product and selecting Stock issues to access the Stock issue entry window. -

This option is the same as discussed when issuing a product through the Miscellaneous issues function.

You can view information for the parent product such as the available stock by clicking the Actions icon at the Product field under Parent Product and selecting Stock by site. -

You can also view stock management information by selecting the Stock management data option.

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These same options are available for the component products.

Modification of Assembly

If after creating an assembly, you realize you selected the wrong lot, serial number, or even the wrong quantity, you can modify the assembly. Similar to modifying an issue in Miscellaneous issues, you can modify the components issued by clicking the Actions icon for the component product and selecting Modification of issues. You cannot delete a component or an assembly. To remove an assembly, you must use the Disassembly function.


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Disassembly Use Disassembly (GESDBY) in the Stock > Internal transactions block to disassemble a parent product in order to obtain the stock of all its components.

You can either disassemble a parent product that has been received directly into stock or one that was previously assembled. The parent product is processed like a stock issue and the components are processed like a stock receipt.

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Disassembly (continued) Disassembly In the Disassembly function, enter information for the disassembly including the site, posting date, parent product, and quantity to disassemble.

Parent Product

To disassemble a product that was rece ived directly into stock, select the product at the Product field in the Parent Product section. -

You must enter information such as the quant ity to disassemble, the lot/serial information, location, etc.

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You can click the Actions icon in the Product field and select Stock issues to identify different units of measure, location, lot, serial number, etc for the product you are disassembling.


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Disassembly (continued) To disassemble a product that was previously assembled, select the assembly from the Assembly list in the Left list. -

After selecting the assembly, the system automatically loads the parent product and components.

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No modification is possible of the information coming from the o riginal assembly, with the exception of the qua ntity to disassemble.

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You can view the stock detail of the parent product to be issued and the components to be received.

Components

The components display automatically regardless of how the parent product was selected. If the parent product was directly selected, you can optionally modify the components listed, even add a non-planned component. The quantity is calculated and automatically defaults based on the quantity to disassemble for the parent product. -

You cannot change the quantity if disassembling a previously assembled product.

At the Order price field, enter the cost of the component being received into stock. The stock information for the components to be received is the same for stock receipt entries. -

The system looks to preload by default the stock information according to t he management rule dedicated to miscellaneous receipts defined for the product category.

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If a component is present several times in the BOM, the quantities are not grouped into a single receipt line; rather several receipt lines are generated.

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If the BOM contains a phantom component, this component is entered into stock it is stock managed. Otherwise, it is automatically passed over to be substituted for its own components if it is not stock managed.

It is always possible to detail the receipt for the compo nents by clicking the Actions icon for the component product and selecting Enter detailed quantities.

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Stock Changes Use Stock changes (GESCS) in the Stock > Internal transactions block to modify a stock line or a group of stock lines in order to change an internal stock location, change the stock status, or pack or unpack stock.

In the Selection section, define the product and optionally you can enter a specific location to filter the stock lines to select from. After selecting the product, the Stock selection listing in the Left list box displays the stock lines you can manually select to change. -

To select a group of stock lines, select the first line and Shift+click the last line in the group.

The stock quantity selected on a line is limited to the available quantity for the stock line. To change the status and location, enter the appropriate information I the Destination section. This is applied to stock lines selected.


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Stock Change (continued) Under Stock Picking, click the appropriate icon to include all stock lines or exclude all stock lines if selected by mistake. The Stock Lines section lists the stock lines manually or automatically selected and includes the status and location change information. You can also enter information to pack or unpack stock. The picking of serial numbers to be modified can be made in several ways. -

You can select them manually or by group in the Left List box under Stocks Selection.

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You can select line by line the serial numbers to process. The system does not group the serial numbers unless the line by line selection is made in consecutive serial number order. If the serial number sequence is interrupted, the system creates a new line.

For the stock lines selected, the o riginal stock information and the destination stock information display in the Stock lines section. -

Based on the transaction type selected when accessing the function, it is possible to change the destination information based on quantity, location, status, and destination unit of measure.

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You can optionally right-click on a line to access the Enter stock change det ail option, where you can distribute the stock line selected over several locations, destination unit of measure, etc.

You cannot modify a stock change. To modify a previous change, you must enter it as another stock change transaction.

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Orders In Process It is important to understand how orders and transactions entered in other modules impact stock in Inventory.

All supply and demand information within the program is captured and represented in the ORDERS tables. -

This is the backbone of all operational activity and is updated dynamically and in real-time.

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It is the starting and ending point for many of the planning and replenishment activities within the system (e.g. MRP, reorder point, etc.)

Identifiers in the table include: -

An order type abbreviation is 2 letters (e.g. WO (Work Order)).

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A status that is always one letter F (Firm), P (Planned), and S (Suggested).

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A supply (S) and Demand (D) code.


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Orders In Process (continued) The figures below and on the following page provide information on the order, status, stock impact, and activity/origin.

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Orders In Process (continued)


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Miscellaneous Receipt In this Practice, start the entry of a miscellaneous receipt for several items. 1. From the Stock > Receipt/issue transactions block, select Miscellaneous receipts. 2. When prompted for a transaction, select the ALL Misc Stock Receipts Full Entry option. 3. Click New to start a new transaction. 4. Select NA022 as the site. 5. Accept the default allocation date. If the current date is after 12/31/2014, change the date to 12/15/14. 6. Select 020 (External) as the transaction group and leave the remaining fields blank. 1. On the Lines tab, select the RAW423 product. 2. Enter 1400 as the quantity. 3. Verify the status is ‘A’ and select STO as the location type. 4. Enter 1.30 as the unit price. 5. Now select product RAW413 and enter 500 as the quantity. 6. Verify the status is ‘A’ and select STO as the location type. 7. Tab through to the Supplier lot field, and enter LO1101NA0220025. 8. Enter 6.75 as the unit price. Accept all other defaults for the line. 9. When prompted for the lot complement information, enter 06/19/2016 at the Expiration ref field. 10. Click OK . 11. Press the ESC key and click the Actions icon for the first line entered for product RAW423 and select Enter detailed quantities. 12. Not all of the RAW423 product is going to the same location. Enter information in the Enter detailed quantities window based on the information below.

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Lesson Practices (continued) 13. Click Save to save the information and close the window. 14. Click Create to complete the entry.

Changing Receipts In this Practice, change the quantity received on the receipt entered for product RAW413. 1. If you are not in Miscellaneous Receipts, select it now. 2. Select the receipt you created. 3. Click the Actions icon on the line item for product RAW413 and select Change receipts. 4. The quantity entered was incorrect. Only 450 products were received. Click in the Quantity field and enter 450. •

If you wanted to change information such as the status or location for all items received, delete the line and enter the correct information.

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If only a portion of the quantity received needs to change, change the quantity of the original line item. Enter a new line item for the remaining quantity received, entering the correct location, status, etc.

5. Click Save. 6. Because the quantity is different than the original receipt quantity, a message displays. Click Yes to confirm your intent to change the quantity. 7. Verify that the correct quantity now displays for the appropriate line on the receipt. 8. Based on what you have learned, enter a new receipt for the NA011 site and the following products. •

Accept the default allocation date. If the current date is after 12/31/2014, change the date to 12/15/14

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Select 020 is the transaction group.

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Product DIS001, quantity is 15, STO as the location type, and the price is 10.50.

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9. Click Create. 10. Return to the Navigation page.


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Lesson Practices (continued) Miscellaneous Issue In this Practice, enter a miscellaneous issue for several products. 1. From the Stock > Receipt/issue transactions block, select Miscellaneous issues. 2. When prompted for a transaction, select the ALL Stock issue Full entry option. 3. Click New. 4. Select NA022 as the site. 5. Accept the default allocation date. If the current date is after 12/31/2014, change the date to 12/15/14. 6. Select 020 as the transaction group and leave the remaining fields blank. 7. On the Lines tab, select the RAW413 product. 8. Enter 400 as the quantity. 9. Tab through until the Stock issue entry page displays. 10. In the Stock issue entry window, select the LO1407NA0220001 lot. 11. Verify that the To ship and Total fields show 400. 12. Click Save. 13. Now select product RAW414 and enter 150 as the quantity. 14. Using the information you have learned, you must select stock from the lot available. 15. Click Save. 16. Click Create to complete the issue.

Changing Issues In this Practice, change the serial numbers distributed on the last transaction you entered in the Miscellaneous issues function. 1. If you are not in Miscellaneous issues, select it now. 2. Select the issue you created. 3. Click the Actions icon on the line item for product RAW413 and select Modification of issues. 4. The lot number selected was incorrect. In the Issues section, click the Actions icon for the row displayed and select Delete. 5. In the Stocks Selection section in the Left list, select lot number LO1211NA0220004 and lot number LO1212NA0220004.

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Lesson Practices (continued) 6. Verify the correct lot numbers are now listed and click Save. 7. Return to the Navigation page.

Inter-site Transfer In this Practice, start the entry of an intercompany transfer from site FR012 to site NA012. 1. From the Stock > Receipt/issue transactions block, select Inter-site transfers. 2. When prompted for a transaction, select the STD intersite transfers option. 3. Click New. 4. Select FR012 at the Storage site field. 5. Accept the default allocation date. If the current date is after 12/31/2014, change the date to 12/15/14. 6. Select NA012 as the destination site and accept all other defaults. 7. At the Product field in the Selection section, select BMS043. 8. In the Left list, select the Stocks selection listing. 9. Select the first stock line listed. This should update the Stock lines section for the transfer. 10. Enter 100 as the quantity to transfer and accept all other defaults for location, etc. 11. The Enter stock change detail window displays if additional information should be entered for the transfer. Enter Transfer as the movement description and select STO as the Destination location type. 12. Click Save. 13. We are done with the transfer, so click Create. 14. Return to the Navigation page.

Assembly In this Practice, assemble a product. 1. From the Stock > Internal transactions block, select Assembly. 2. Select the ASA Assembly Full entry transaction. 3. Click New. 4. At the Storage site field, select NA021. 5. Accept the default allocation date. If the current date is after 12/31/2014, change the date to 12/15/14.


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Lesson Practices (continued) 6. Select 010 as the transaction group. 7. At the Product field in the Parent product section, select FIN301. 8. Select Manufacturing as the type. 9. Enter 3 as the quantity to assemble and accept all other defaults. Do not enter a cost for the parent product. This will be determined based on the sum of the component costs issued. 10. Tab through the remaining fields. 11. When displaying the components, the lot expiration information window displays. Here you can define information as to when the lot expires. Enter 06/23/2016 as the expiration date and click OK . 12. No other information needs to be defined for the components. Click Create and return to the Navigation page.

Stock Change In this Practice, change the location for the RAW504 product. It was received into the wrong location. 1. From the Stock > Internal transactions block, select Stock changes. 2. When prompted for a transaction type, select ALL Stock change. 3. Click New to start a new entry. 4. At the Site field, select NA023. 5. Accept the default allocation date. If the current date is after 12/31/2014, change the date to 12/15/14. 6. Select 020 as the transaction group. 7. Select RAW504 as the product. 8. At the Status field, enter A, and at the Location field in the Destination section, enter STO07. 9. From the Stocks selection listing in the Left list, select the first lot displayed. 10. Click Create. 11. Return to the Navigation page.

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Lesson 7 Periodic Processing, Reports & Inquiries In the following topics, you will learn about some of the periodic processing functions in Inventory as well as how to access the reports and inquiries available. The topics in this lesson include: 

Cost Adjustment

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Value Change

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Stock Valuation Report

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Adjustment of Stock Shortages

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Lot Modifications

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ABC Class Calculation

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Account Interface

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Reports

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Inquiries

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Lesson Practices


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Cost Adjustment Use Cost adjustment (FUNSTKADJ) under Valuation in the Stock > Periodic processing block to update the value of those transactions carried out after an adjustment or a backdated transaction for products whose valuation method has been set up with adjustment of the issue prices. It recalculates the average price as well as the margins when the calculation base of the margin is the average price. During a transaction adjustment, if the transaction has not been posted, it is updated directly. If it has been posted, a deletion record and adjustment record are created. Note: For products with average cost valuation, the value change transactions are used to change the average cost at a specific date (posting date of the value change transaction). -

The issue adjustment function uses this average cost value to recalculate all later transactions.

In the Cost adjustment window, enter the selection criteria to use for the transactions affected.

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Value Change Use Value change (FUNCHGVAL) under Valuation in the Stock > Utilities block to modify the moving average price value for the lines in the FIFO stack and for lots. Value change movements are created according to the context of the change.

Information is listed based on the site and product selected. You can enter a global value change or percentage in the Global value section. You can change the value for individual FIFO or LOT stock lines in the appropriate section.


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Stock Valuation Report Use Stock valuation report (FUNSTVA) under Valuation in the Stock > Periodic processing block to print a stock valuation report for a given company according to different calculation criteria. Note: Use caution if generating the report to include all data as this can take time to print.

Parameters and Selection Criteria When selecting the report, you must first define the parameters and selection criteria to use when generating the report.

The reference date is used for the stock and costs calculation. The option selected at the Costing mode field determines how to value the stock. For example, you can use the standard cost (Standard price) or the average cost (Moving average price).

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Stock Valuation Report (continued) You can define starting and ending ranges for such items as the site, category, product, valuation method, and user-defined fields. After defining information for generating the report, click OK. -

After clicking OK, you must specify the report printing information. This includes whether to print or preview the repo rt.

Stock Valuation Report Example Below is an example of the stock valuation report. The report is generated based on the parameters and selection criteria defined.


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Adjustment of Stock Shortages Use Adjustment of stock shortages (FUNSHTSEL) in the Stock > Periodic processing block to manually or automatically adjust the backorder shortages as well as the suspended movement transactions with available stock. All movement transactions, including those where the lot, sub-lot, and/or serial number have been entered can be adjusted.

Selection Criteria When accessing the function, you must first define the selection information in the Selection criteria window. The criteria defined determines the transactions listed.

Select the Trace adjustments check box to specify that a log file should be recorded for the movement transaction adjustments. If this selected, the Trace errors check box is also selected and cannot be cleared. In the Priorities processes section you can define priorities (high, medium, and low) based on movement category: Manufactured and sold, Production, and Internal. Page 144



Adjustment and Stock Shortages (continued) Stock Shortage Adjustment Once the selection is defined and the transactions are listed, you can view the product, document type, document number, line number, date, and quantity.

Click in the first column (column) to mark which transactions are to be adjusted based on stock available. Once selected, you can either click the Adjustment button to process all the adjustments or right-click on the individual lines and select Backorders and Suspended transactions option. -

Both processes generate a log file regardless of the option showing and indicates if the process was successful or not.


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Lot Modifications There are several lot modifications functions under lot modifications in the Stock > Quality control block.

Characteristics Change Use Characteristics change (GESSMX) to modify the lot title, the expiration lead-time and expiration date, and any potential user defined fields for a specific lot. Information can only be changed for one lot at a time.

Lots are selected by site and product and only a single lot/sub-lot can be changed at a time. You cannot modify lots present in several sites. For this, you must use the Mass Lot Change function. You cannot select a lot that is the object of an analysis request not yet completely validated or one that is the object of a detailed allocation.

Mass Change Use Mass change to modify the same information as in the Characteristics change function but for a range of lots and sub-lots. You can select to include all sites or a specific site. You can also enter a single or range or products, lots, and sub-lots. After defining the criteria, the appropriate products, lots, and sub-lots display and you can make modifications as needed.

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Lot Modifications (continued) Renumbering/mix Use Renumbering/mix (GESSLM) to either assign a new lot/sub-lot number to all or part of an existing lot/sub-lot or to mix all or part of an existing lot/sub-lot with another existing lot. Information is entered based on a specific site and product entered. You can select a specific lot to modify the lot/sub-lot number or enter a source and destination lot to mix (combine) lots.

Modify User Zones Use Modify user zones (FUNSMU) to modify user defined fields for a specific lot. Information is entered based on a specific site, product, and lot/sub-lot entered.


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ABC Class Calculation Use ABC Class calculation (FUNSTKA) in the Stock > Periodic processing block to calculate and update the A/B/C/D classes of the products for a given site.

This allocation is dependent on an ABC type formula and the percentage assigned to classes A and B. -

The formula is selected at the Formula code field. Formulas are defined through the Formulas function in the Setup > General parameters block.

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A default formula is created automatically as part of the Folder creation process.

The formula used gives a result by product (value without unit); each product is sorted out depending on this value. The system then determines the classification with respect to the total of the formula result. The percentage of classes is used to determine the distribution of the products in each class. A product whose calculation result is 0 (zero) is constructed as a product of class D.

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ABC Class Calculation (continued) At the Processing selection field, you can select the type of processing. -

The Calculation without Update option calculates ABC rankings, but does not update.

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The Calculation with Update option calculates t he ABC rankings and replaces the old rankings for the selected site with the newly calculated ones.

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The Update Only option is used to take the previously calculated ABC rankings performed with the Calculation without Update o ption and uses them to replace the old rankings for the selected site.

For example, if you entered distribution of classes A, B, and C as: A (70%), B (25%) and C (5%), the results would be as follows. -

The formula used is: Number of issues in the year * value of the product.


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Account Interface Use Account interface (FUNSTKACC) under Valuation in the Stock > Periodic processing block to pass to accounting all the stock transactions.

The processing date entered must fall after the date of the last process and before the current date, to avoid incomplete processing of the current days movements. -

The stock transactions created or modified after the last process and up to and including this date are processed.

The selection criteria determines which date is used to filter the stock movements to include. You can optionally select a financial site at the Financial site field. If left blank, all stock transactions for all sites are processed.

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Reports There are several reports available that detail information on settings defined in inventory, products, and transactions entered.

Printouts > Reports The Stock reports in the Reports function start with STOCK for stock specific and ITM for product specific reports. The stock reports include such reports as the Stock transaction report, Stock to date report, Occupied locations, and Products/location. The product reports include such reports as the Detail cost calculations, Product information by site, and Product master listing.

Printouts > Prints/group > Stock There are several different functions that categorize the reports specific to Internal documents, Counts, Reorder, Stock to be moved, and Analyses. The Internal documents function includes reports that are specific to internal needs such as the Lot record, Preparation list, and Quality analysis report. The Counts function includes reports that are specific to a physical inventory such as the Stock count list, Stock count complete form, Stock count variance form, and Valued stock form. The Reorder function includes two reports associated with reordering. This includes the Net requirements report and MPS journal report. The Stock to be moved function includes two reports: Pick location replenishment and Storage list. The Analyses function includes several reports that detail information such as Allocations, Stock lot detail by site report, Products/location, Locations/product, Empty locations, Occupied locations, Stock/site, Expired stock report, Stock transaction report, Inactive stock, and Serial numbers.


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Inquiries There are many inquiries available that allow you to review information and transactions in Inventory. You can access inquiry functions from the Stock > Inquiries block. Additionally, you can access the same inquiry functions by clicking the Actions icon on a transaction or from the Inquiry option in the Right panel of a function. Each inquiry function provides you with settings you can define to determine the information displayed. For example, many inquiry functions allow you to view information specific to a site and product range.

Stock The Stock listing includes several inquiry functions that allow you to view stock information by product and lot, BP stock, projected stock, stock available to promise, available stock, obsolete stock, and inactive stock.

Allocations The Allocations listing includes inquiry functions providing information on allocations created for product issues.

Quality history The Quality history listing includes inquiry functions that allow you to view quality control responses, technical sheets, and 130 record history.

Movements The Movements listing includes inquiry functions that allow you to view transactions affecting stock.

Locations The Locations listing includes inquiry functions providing information regarding locations in a warehouse including locations that are available, occupied, and products associated with a location.

Products The Products listing includes inquiry functions that allow you to view information such as stock being counted, orders currently in process, and stock history.

MRP/MPS reorder The MRP/MPS reorder listing includes inquiry functions that allow you to view information for MPR and MPS results.

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Stock Valuation Report In this Practice, preview the Stock Valuation Report for the D22 site. 1. Under Valuation in the Stock > Periodic processing block, select Stock valuation report . 2. Accept the default reference date unless it is after 12/31/2014. If so, change the date to 12/31/14. 3. Select NA20 as the company and NA022 as the site. 4. Select the Category check box in the Subtotals section to subtotal by category. 5. In the Stock status selection section, select the Allow A, Allow Q, and Allow R check boxes, if they are not already selected. 6. Click OK . 7. In the parameters window, verify PREVISU is selected at the Destination field. 8. Click Print . 9. If prompted, select to open the report using Adobe Acrobat Reader and click OK . 10. Review the information and close the Adobe Reader window and clear the print list displayed.

Account Interface In this Practice, update financials with all stock transactions entered. 1. Under Valuation in the Stock > Periodic processing block, select Account. interface. 2. Accept the default reference date unless it is after 12/31/2014. If so, change the date to 12/31/14. 3. Click OK . 4. When prompted regarding the accounting interface, click OK to continue. 5. Review the log file. Where there any errors and if so what were they? For any errors, you would have to correct the problem and run the process again to post any unposted transactions. 6. Exit the log report.


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Lesson Practices (continued) Reports In this Practice, take a few moments to view different reports. 1. From the functions previously discussed, preview various reports. 2. When completed, close all windows until you are returned to the Navigation page.

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Summary You have learned: How to access and define settings specific to stock including defining stock statuses, units of measure, packages, and understanding product lines. How to define locations within a warehouse including defining the locations types and specific locations. How to define information necessary for creating products such as valuation methods, stock management rules, and product categories. How to enter transactions that include miscellaneous issues and receipts, inter-site transfers, and assemble and disassemble a production bill of material.


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SageX3 Stock Basics

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