COURSE: 8611
INVENTORY MANAGEMENT
discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication.
This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT.
Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or
transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation.
Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.
© 2008 Microsoft Corporation. All rights reserved. Microsoft and Solomon are either trademarks or registered trademarks of Microsoft Corporation or Dynamics GP Software, Inc. or their affiliates in the United States and/or other countries. Dynamics GP Software, Inc. is a subsidiary of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
Introduction to Inventory Management in
Microsoft Dynamics NAV 5.0
0-1
E-Learning...0-1 Instructor-Led Training ...0-1 Training Materials...0-2 Certifications...0-2 Certification Exam Preparation Guides ...0-3 Learning Plans ...0-3 Elements of Training Materials for Microsoft Dynamics ...0-4 About This Training Material...0-6 Student Objectives ...0-9
Chapter 1: Control Inventory
1-1
Objectives...1-1 Introduction...1-1 Analyze Item Availability...1-2 Adjust Inventory...1-6 Count Inventory ...1-11 Reclassify Inventory ...1-14 Summary ...1-18 Test Your Knowledge ...1-19 Quick Interaction: Lessons Learned...1-22 Solutions...1-23
Chapter 2: Reserve and Order Track Items
2-1
Objectives...2-1 Introduction...2-1 Reserve Items ...2-2 Track Supply and Demand...2-6 Reserving vs. Order Tracking...2-11 Summary ...2-12 Test Your Knowledge ...2-13 Quick Interaction: Lessons Learned...2-15 Solutions...2-16
Chapter 3: Use Multiple Locations
3-1
Lab 3.5 – Create a Sales Order in a Company with Multiple Locations ...3-33 Control Inventory at Multiple Locations ...3-34 Lab 3.6 – Create and Set Up Stockkeeping Units ...3-38 Summary ...3-40 Test Your Knowledge ...3-41 Quick Interaction: Lessons Learned...3-43 Solutions...3-44
Chapter 4: Transfer Between Locations
4-1
Objectives...4-1 Introduction...4-1 Set Up Transfers ...4-2 Lab 4.1 – Set Up a Transfer Route ...4-6 Use Transfer Orders...4-7 Demonstration - Transfer 50 Top Panels from Yellow to Blue Warehouse ...4-7 Lab 4.2 – Transfer Items between Locations ...4-14 View Items in Transit ...4-16 Summary ...4-18 Test Your Knowledge ...4-19 Quick Interaction: Lessons Learned...4-20 Solutions...4-21
Chapter 5: Perform Basic Warehouse Tasks
5-1
Objectives...5-1 Introduction...5-1 Set Up Basic Warehousing ...5-3 Lab 5.1 – Set Up a Warehouse Location ...5-8 Receive and Put Away Items...5-9 Lab 5.2 – Receive and Put Away from the Purchase Document...5-25 Lab 5.3 – Receive with a Warehouse Receipt...5-26 Pick and Ship Items...5-27 Lab 5.4 – Pick and Ship with Inventory Pick Documents ...5-42 Lab 5.5 – Ship with Warehouse Pick and Ship Documents ...5-43 Move and Adjust Items in Warehouse...5-44 Lab 5.6 - Move Ten Loudspeakers to an Empty Bin ...5-47 Summary ...5-48 Test Your Knowledge ...5-49 Quick Interaction: Lessons Learned...5-51 Solutions...5-52
Chapter 6: Handle Serial/Lot Numbers
6-1
Trace Serial/Lot Numbers ...6-51 Lab 6.3 - Trace First Production Order for Item 2000...6-64 Navigate with Serial/Lot Numbers ...6-65 Print Serial/Lot Number Documents and Reports ...6-67 Reserve Items With Serial/Lot Numbers ...6-72 Summary ...6-74 Test Your Knowledge ...6-75 Quick Interaction: Lessons Learned...6-80 Solutions...6-81
Appendix A: Terminology List
A-1
Appendix B: Granules
B-1
Inventory Management Granules in Microsoft Dynamics NAV... B-1
Appendix C: Customizing IT Reports
C-1
INTRODUCTION TO INVENTORY MANAGEMENT IN
MICROSOFT DYNAMICS NAV 5.0
Training is a vital component of retaining the value of your Microsoft
Dynamics™ investment. Quality training from industry experts helps keep you updated on your solution and develops skills to maximize the value of your solution. Whether choosing E-Learning, instructor-led training, or self-paced study using training materials, there is a type of training that meets your needs. Additionally, validate your training and demonstrate your expertise with one of many certifications for Microsoft Dynamics. Choose the training or certification type that best enables you to stay ahead of the competition.
E-Learning
Online training for Microsoft Dynamics products helps you increase your productivity without spending time away from your home or office. E-Learning allows you to learn at your own pace through flexible access to training, therefore proving beneficial for those lacking the time or budget to travel. E-Learning are online training courses designed to cover detailed concepts on specific product areas and allow you to:
• Gain in-depth technical and business application training through daily on-demand training.
• Learn at your own pace - lessons can be stopped and restarted, skipped or repeated.
• Save time and increase your productivity.
• Receive product knowledge comparable to instructor-led training without the need for travel or time away from the office.
• Gain beneficial training when preparing for Microsoft Dynamics certification exams.
• Find tips and tricks to show you how to increase productivity and save time.
• Learn about the changes in features and functionality of a new Microsoft Dynamics product version.
• Evaluate a new Microsoft Dynamics module or product.
Instructor-Led Training
• Participate in classroom activities and discussions with other attendees.
• Gain beneficial training when preparing for Microsoft Dynamics certification exams.
Training Materials
Training materials can be ordered for the purpose of self-paced study. These materials are comparable to courseware used with instructor-led training, and enable you to:
• Learn at your own pace, in your own time.
• Refer to an abundance of tips, tricks, and insights.
• Learn using a self-study format when preparing for Microsoft Dynamics certification exams.
For selected training materials there are training material – local functionality available which cover country specific features in the product. The training material – local functionality add on to existing training materials and are designed to teach local functionality within a given country. Please notice that training material – local functionality are used only in conjunction with the training material, not as stand-alone training materials.
Certifications
Certifications help identify and distinguish an individual’s technical skill set using a Microsoft Dynamics or related business product. Certifications for Microsoft Dynamics are widely recognized by industry employers and provide an objective validation of an individual’s knowledge. Organizations that employ certified individuals benefit from a complete approach to learning – certified individuals have higher skills retention and increased productivity. Organizations can streamline their employee recruitment process and lower their external support costs plus downtime by maintaining technically skilled employees by requiring Microsoft Certified Business Management Solutions Specialist and Professional certifications.
Microsoft Certified Business Management Solutions
Specialist
Microsoft Certified Business Management Solutions
Professional
The Microsoft Certified Business Management Solutions Professional is a premier certification where an individual has completed a pre-determined set of required and elective certification exams. These include certification exams for Microsoft Dynamics and related business products, as well as certification exams for other Microsoft technologies such as SQL Server. The pre-determined set of required and elective exams for this certification are focused on one of three specific knowledge areas – Applications, Developer, or Installation and Configuration – for one Microsoft Dynamics product. This certification demonstrates an individual’s broad and deep knowledge of a Microsoft Dynamics product — more knowledge than what is needed to achieve a Microsoft Certified Business Management Solutions Specialist title.
Certification Exam Preparation Guides
To help prepare for a certification exam, Microsoft highly recommends the use of the certification exam preparation guides available for each exam. Certification exam preparation guides contain valuable information about a specific exam, including:
• The target audience
• Skills being measured
• Time expected to take each portion of the exam
• Pass rates and requirements
• Question types and topics
• Preparation tools, such as: – recommended training
– supplemental learning resources – additional recommended skills
Certification Exam Preparation Guides help you determine which learning options are appropriate to best prepare you for a certification exam. Microsoft does not expect or intend one course or type of training to be the sole preparation method for passing a certification exam. A combination of hands-on experience using the product and training are recommended certification exam preparation. Certification exam preparation guides are available through PartnerSource and CustomerSource.
Learning Plans
NOTE: For more information on E-Learning, instructor-led training, training materials
and certifications for Microsoft Dynamics log in to PartnerSource or CustomerSource and visit Training & Certification.
Elements of Training Materials for Microsoft Dynamics
Training Materials for Microsoft Dynamics products contain a number of sections or elements. Each chapter includes the following elements:
Objectives
Each chapter begins with a statement of the learning objectives for that chapter. Learning objectives are important because they inform you about what needs to be done to successfully complete the chapter.
Introduction
An introduction sets the stage for the learning to take place and prepares you with key statements of the chapter.
Topics
Chapters are split up into topic areas, usually according to the learning objectives for the chapter. This is especially beneficial in large chapters so that the
knowledge and skills to be learned are split up into more manageable units.
Test your Knowledge
The Test your knowledge section consists of review questions for each chapter or topic and is designed to help reinforce learning concepts. Questions can be short answer, true and false, multiple-choice, fill-in-the-blank or any other type. Answers to questions are also provided.
Conclusion
The conclusion wraps up the chapter by highlighting the important parts of the chapter as well as providing a transition to the next chapter. The conclusion also offers an opportunity to refresh earlier learning.
Labs
Labs test your skills with the learning concepts presented and learned during a topic or chapter. Labs begin with a scenario paragraph which describes the business problem to be solved, and also sets the stage for the exercise. Solutions to the labs are also provided. Labs may be offered at different levels to
accommodate the variety of skills and expertise of each student.
Challenge Yourself!
Need a Little Help?
These exercises are designed to challenge students while providing some assistance. These exercises do not provide step-by-step instructions; however, they provide the user with helpful hints and more information to complete the lab.
We suggest you try the “Challenge Yourself!” labs first, and if you need help completing the task, look to the information in the “Need a Little Help?” labs. If additional assistance is required, refer to the “Step by Step” lab solutions located in an Appendix.
Quick Interaction: Lessons Learned
About This Training Material
This section provides you with a brief description of:
• The training material
• Audience
• Suggested prerequisites
• Training material objectives
• Student materials
• Related certification exams
Description
This 2-day course covers all aspects of the inventory and basic warehousing functionality available for Microsoft Dynamics NAV, as well as conceptual information on inventory management in general. This course also provides background information to set up Microsoft Dynamics NAV for inventory management.
Typical inventory tasks are covered, such as availability analysis, inventory reclassification and adjustment. All possible inbound, internal, and outbound item handling tasks are described, including how to perform these for assigned serial/lot numbers. Lastly, the comprehensive Item Tracing feature is covered in detail.
Audience
The intended audience for this course is individuals who want to learn how to set up and use inventory management functionality in Microsoft Dynamics NAV. The course is targeted toward sales people, consultants, and implementers within a Microsoft partner staff who need to master the inventory management
functionality in order to support or teach it to end users, such as order processors, account managers, and purchasing agents.
At Training Material Completion
Completing this course allows students to:
• Determine actual and projected item availability.
• Make manual adjustments to inventory quantities.
• Count and record how many items are physically present in inventory.
• Distinguish reservations from order tracking links.
• Set up a company with multiple locations.
• Link customers and vendors to locations.
• Set up responsibility centers.
• Link users, customers, and vendors to responsibility centers.
• List multi-location setup guidelines.
• Get an overview of Cronus setup data.
• Create sales and purchase orders for multiple locations.
• Create and set up stockkeeping units.
• Set the program up to handle transfers.
• Explain central transfer concepts.
• Create and post manual transfers.
• Identify the locations and quantities of items in transit.
• View inventory value of items in transit.
• Set up locations for warehousing, including bin setup.
• Receive and put away items using the purchase order, inventory put-away, or warehouse receipt documents.
• Pick and ship items using the sales order, inventory pick, or warehouse shipment documents.
• Move items between bins.
• Adjust item quantities in bins.
• Set up Item Tracking.
• Distinguish when and how to use serial/lot numbers.
• Handle inbound serial lot numbers.
• Handle serial/lot numbers on inventory.
• Handle outbound serial/lot numbers.
• Trace posted serial/lot numbers throughout the supply chain.
• Navigate with serial/lot numbers.
• Print serial/lot number documents and reports.
• Reserve items with serial/lot numbers.
Prerequisites
Before attending this course, students must have:
• Taken the Introduction to Microsoft Dynamics NAV 5.0 course
Student Materials
The following materials for Microsoft Dynamics NAV version 5.0 are related to this course:
• Introduction
• Finance
• Trade
Related Certification Exam
Student Objectives
What do you hope to learn by participating in this course? List three main objectives below.
1.
2.
CHAPTER 1: CONTROL INVENTORY
Objectives
The objectives are:
• Determine actual and projected item availability.
• Make manual adjustments to inventory quantities.
• Count and record how many items are physically present in inventory.
• Reclassify an inventory item by changing information attached to its item ledger entry.
Introduction
Inventory management is a cornerstone of any company within the wholesale and manufacturing business. Inventory reliability at a low cost is the key factor to ensure the smooth functioning of all related operations.
The Basic Inventory granule in Microsoft Dynamics™ NAV supports companies in achieving their goals of having accurate inventory data and reliable availability figures. The “Introduction” course provides a general explanation with regard to the first goal: the functions and use of item cards representing inventory records. This chapter addresses the second goal and covers the following topics:
• Analyzing availability
• Manually adjusting inventory levels
• Counting the physical inventory
Analyze Item Availability
To service customers properly, most wholesalers and manufacturers need:
• Reliable availability figures when taking orders.
• Overview of inventory levels and expected supplies over time to promise delivery dates.
In principle, available items can be defined as a quantity that the company has at its disposal at a given point of time. This definition goes beyond the actual inventory quantity and includes such factors as allocations, meaning quantities that have already been set aside or reserved for specific purposes, and expected inbound orders representing future supply.
With this in mind, item availability is defined in connection to the following three aspects:
• Item
• Location
• Point of time
Depending on the profile and requirements of the company's functional units, calculating the availability of items is done in a broad range of situations:
a. Generally, when inquiring into the item availability situation. b. For a requisition department, when deciding if, when, and how much
to replenish a specific item. In this case, it is necessary to know the quantity available during a certain planning time period.
c. For a sales department, when responding to customers’ inquiries as to if their orders can be met and when.
d. When a customer request for a specific item cannot be met, salespeople must be able to get an overview of other alternatives, such as, if there are item quantities that have been set aside for other purposes or can be found elsewhere, or a requested item can be substituted with a similar one.
e. When warehouse staff need to know the availability of an item to be picked.
f. When counting physical inventory and identifying differences. Availability calculations in Microsoft Dynamics NAV meet all of the above-mentioned requirements. Availability calculation consists of the following elements:
• Inventory minus allocations. (This is usually relevant in connection to situation D.)
• Inventory plus inbound orders minus allocations. (This is relevant in connection to situations B. and C.)
In principle, availability calculation is based on the following formula: Availability = Inventory + Inbound Quantity - Allocations
Because the expected dates of inbound and allocated quantities are known, the program can calculate availability over time. This is shown as projected available balance. Refer to “Projected Availability” in this chapter.
Inventory
The program calculates the inventory quantity as the sum of all item increases minus all item decreases on the current date. Accordingly, inventory is calculated from posted item transactions, that is item ledger entries.
The total inventory quantity across all locations is shown in the Inventory field on the General tab of each item card.
1. Click Warehouse→Planning & Execution→Items. 2. Browse to the item card for item 70060.
When a company has more than one location set up in the program and orders are received into different locations, it is relevant to know the current and expected availability of items for each location. This is provided with the Items by Location window.
On the item card, click Item→Items by Location.
FIGURE 1.2 EXTRACT OF THE INVENTORY QUANTITIES OF ALL ITEMS SHOWN FOR EACH LOCATION
This window contains the item quantities available on all company sites that are set up in the program as locations. Note that BLANK location is not included. For more information about locations, refer to “Use Multiple Locations” in this course.
The actual physical inventory quantity can differ from the recorded quantity due to shrinkage caused by, for example, scrap, deterioration, or pilferage, as well as administrative mistakes. Refer to “Count Inventory” in this course.
Allocations
As mentioned earlier, the available quantity can be reduced by allocations, that is, quantities set aside for a specific purpose, temporarily or permanently. The following are examples of allocations:
• A quantity entered on outbound orders, but is yet unposted.
For more information about manual and automatic reservations, refer to “Reserve and Order Track Items” in this course.
A typical scenario where the availability calculation must consider possible allocations is a sales situation. On every sales line, the program checks if the requested quantity can be fulfilled against the inventory quantity minus allocations on the sales shipment date.
Projected Availability
Inbound quantities or outstanding receipts like purchase orders, inbound transfers, and production orders are included in the projected (expected) availability calculation. This is relevant in situations when there is a need to know when the inventory quantity is supposed to increase, such as to promise a delivery.
You can get an overview of when quantities are expected to be available in the three different Item Availability By windows. Using the Item Availability by Periods window is described in the “Introduction” course. For information on using dedicated order promising functions, refer to the “Trade” course.
1. From the item card for item 1908-S, click Item→Item Availability By→Location.
Adjust Inventory
It is sometimes necessary to make adjustments to quantities in inventory, such as when there is inventory shrinkage or items are not salable.
Adjustments of this kind are usually made when the physical inventory has been counted, typically at the end of a fiscal year. For that particular purpose,
inventory adjustments are made in the Phys. Inventory Journal window. For more information, refer to “Count Inventory” in this chapter.
Most companies may need to do minor inventory adjustments a few times in the course of the fiscal year, while other companies regularly make inventory adjustments as a part of their business process. An example of this is smaller wholesaler who sometimes perform light manufacturing in the process of fulfilling sales orders, but do not use production orders.
The Item Journal
The Item Journal window is used to post item transactions to adjust inventory levels directly without posting a business document, such as purchase or sales orders.
The item journal can be accessed from Warehouse→Inventory→Item Journals.
The item journal can be used to post the following four types of item entries: Purchase – to post a positive inventory adjustment that works as a purchase order transaction.
Sale – to post a negative inventory adjustment that works as a sales order transaction.
Positive Adjmt. – to post a positive inventory adjustment. Negative Adjmt. – to post a negative inventory adjustment.
Most fields on the item journal are rather elementary and therefore not covered in this course. However, three fields relate to cost accounting and are briefly
explained in the following.
The Unit Amount field shows the price of one unit of the item on the journal line. Depending on what you select in the Entry Type field, the price is
represented by either a unit cost or a unit price. When the Item No. field is filled in, the program automatically copies the price from one of the following fields on the item card:
Entry Type Field on Item Card Purchase Last Direct Cost
Sale Unit Price
Positive Adjmt. Unit Cost Negative Adjmt Unit Cost
The Unit Cost field shows the cost for each unit of the item on the journal line. It is copied from the item’s Unit Cost field.
In the Applies-to Entry field, you can look up and select an entry number if the item journal line must be applied to an already-posted document.
Refer to the “Inventory Costing” course for more information about why and how these three fields are used.
Demonstration - Save and Post Recurring Production as
Standard Journal
If a company often uses the item journal to make inventory adjustments, for example, in connection with consumption and output of items in light
Follow these steps to fill in the item journal:
1. Click Warehouse→Inventory→Item Journals. 2. Fill in the journal lines as shown in figure 1.5:
FIGURE 1.5 ONE POSITIVE INVENTORY ADJUSTMENT CREATED FOR THE FINISHED "NEW ATHENS DESK". FIVE NEGATIVE INVENTORY ADJUSTMENTS MADE FOR THE ITEMS USED TO BUILD IT.
Notice that the unit amounts on all lines are simply carried from the respective item cards. The item journal is ready to be posted, but first it must be saved as a standard item journal.
3. Select all the journal lines.
NOTE: If no journal lines are selected, the function will include all the journal
lines.
4. Click Functions→Save as Standard Journal.
The program now prepares to save the lines that are currently in the item journal, but first you must name the standard item journal that they must be saved in. The Save as Standard Item Journal window appears.
5. In the Code field, enter a code to identify the standard item journal that you are about to save, for example, “New1896-S”.
7. Place a check mark in the Save Quantity field to have the program save the value(s) in the Quantity field of the item journal you are saving.
FIGURE 1.6 SAVE AS STANDARD JOURNAL REQUEST FORM FILLED IN
NOTE: Selecting the Save Unit Amount and/or Save Quantity fields will save
you the trouble of entering amounts and quantities in a future item journal that reuses the standard item journal. But, it also increases the risk of wrongful posting if the quantities and amounts of that future item journal are not supposed to be the same as those in the standard item journal.
8. Click OK to save the item journal. The program reverts to the Item Journal window so you can proceed to post it – while knowing that it can easily be recreated next time you need to post the same or similar lines.
Illustrate the Get Standard Journal function, proceed to delete the existing item journal lines and then get the lines from the standard journal just created.
9. In the item journal, press Ctrl+A to mark all lines, and then press Delete.
10. Click Functions→Get Standard Journals.
To review or change a standard item journal before you select it for reuse, click Standard, Show Journal (or Shift+F5).
NOTE: Any changes you make in a standard item journal are implemented
right away, that is, they will also be there the next time you open or reuse the standard item journal in question. Therefore, ensure you want the change to apply generally. Otherwise, make the specific change in the item journal after the standard item journal lines have been inserted.
11. Back in the Standard Item Journals window, select the standard item journal for NEW1896-S, and then click OK to complete the Get Standard Journals function.
Now the item journal is filled with the lines you saved as the standard item journal.
FIGURE 1.8 THE SAVED STANDARD ITEM JOURNAL LINES ARE INSERTED IN THE ITEM JOURNAL.
If journal lines already existed in the item journal, the inserted lines are placed under the existing journal lines.
Normally, that is, if you did not check the Save Unit Amount field during the Save as Standard Journal function, the Unit Amount field on lines that you have inserted is automatically filled with the item’s current value (copied from the Unit Cost field on the item card).
NOTE: If you checked the Save Unit Amount and/or Save Quantity fields
If inserted item journal lines carry saved unit amounts, which you do not want to post, you can adjust it to the current value of the item in the following way: Select the item journal line(s) in question and click Line→Recalculate Unit Amount. This will update the Unit Amount field with the current unit cost of the item card.
12. Post the item journal.
This concludes the demonstration of how to save item journal lines to reuse them for recurring tasks.
Count Inventory
From time to time, at the end of a fiscal year as a minimum, the items that are physically in the company warehouse(s) must be counted to check if the quantity registered in the program agrees with the actual inventory quantity. If there are differences, these must be posted to the item accounts before the finance department performs their periodic inventory valuation.
The Physical Inventory Journal
To assist in taking a physical inventory, the program provides a special version of the item journal – the Phys. Inventory Journal window.
Click Warehouse→Inventory→Phys. Inventory Journals.
FIGURE 1.9 PHYSICAL INVENTORY JOURNAL FOR REGISTRATION OF COUNTED ITEMS
3. Count the quantity of each item and write the figure in the empty field.
4. Enter the counted quantities in the physical inventory journal. 5. Post the journal.
After posting the journal, the inventory quantities registered in the program will agree with the actual quantities in inventory as determined by the physical count. The physical inventory process is often initiated and managed by a company's finance department as a part of doing the annual accounts, but may also be a shared responsibility of warehouse staff - as in the following demonstration.
Demonstration - Take a Physical Inventory at Yellow
Location
Scenario: John, the warehouse worker in charge of YELLOW warehouse, must perform the annual count of inventory items. He initiates the process by filling the physical inventory journal with calculated inventory quantities, prints the Physical Inventory List report, and then proceeds to do the physical counting. In the process, he records that two Swivel Chairs are missing and that one lost Guest Chair is found.
Follow these steps to count and post the physical inventory:
1. Click Warehouse→Inventory→Physical inventory journals. 2. Click Functions→Calculate Inventory and set a location code filter
for YELLOW.
The Qty. (Calculated) field holds the quantities that the program expects to be in inventory. The Qty. (Phys. Inventory) field is preset with the same quantities, and this is where John will enter counted quantities if they differ from the calculated.
4. Proceed to prepare the physical inventory report by clicking Print. 5. Do not set any filters on the first two tabs, but click the Options tab. The Options tab defines what information will be shown on the printed Phys. Inventory List report. John prefers to print the sheet with the expected quantities preset so that he only has to write down the deviating figures.
None of the items carry serial or lot numbers so the Show Serial/Lot Numbers field is irrelevant. Refer to Chapter 6 for information on counting serial/lot numbers.
6. Select the Show Qty. (Calculated) field and click Preview or Print. With the printout in hand, John now goes into YELLOW warehouse to take a physical inventory. In the process he discovers that two MUNICH Swivel Chairs, item 1972-S, are missing and that there is one more SEOUL Guest Chair than expected.
The physical counting is done and John proceeds to record the actual inventory quantities in the system.
7. Back in the physical inventory journal that contains the calculated YELLOW inventory, select the line for item 1972-S, MUNICH Swivel Chair.
8. Enter 88 instead of 90 in the Qty. (Phys. Inventory) field. Notice that the Entry Type field changes to Negative, and the Quantity field shows 2.
9. On the line for item 1988-S, SEOUL Guest Chair, enter 44 instead of 43.
FIGURE 1.12 PHYS. INVENTORY JOURNAL READY TO POST THE INVENTORY ADJUSTMENTS.
10. Post the journal.
This completes the demonstration of tasks involved in counting and recording physical inventory.
Reclassify Inventory
The following are examples of information that may be changed:
• Dimension code
• Location code
• Bin code
• Serial/lot number
• Expiration date - of a serial/lot number
• Serial/lot number information cards
For more information on the last three types of item information, refer to “Handle Serial/Lot Numbers” in this chapter.
The Item Reclassification Journal
Changing such information on item ledger entries can only be done in the Item Reclass. Journal window. Although this journal functions in a way similar to the item journal and physical inventory journal, it is unique because of the dedicated New.. fields in which to enter the new information value.
Demonstration - Change Department Code from Sales to
Blank
Scenario: On 01/13/08, two units of item 1968-S are placed in inventory after they have been returned by a customer. The two item ledger entries still carry the SALES department code that was assigned during the original sale, and this dimension value must be removed from the inventory items. The warehouse manager uses the item reclassification journal to make this correction. Follow these steps to set up the Item Reclass. Journal window for the task:
1. Click Warehouse→Inventory→Item reclass. Journals. 2. Click View→Show Column.
3. Select the Department Code, New Department Code, and Location Code fields and then press OK.
The journal now includes the fields that will hold the old and new department codes, plus shows where the item is stored. Before proceeding to fill in the journal line, verify that the item ledger entry currently carries the SALES department code.
4. Back in the Item Reclass. Journal window, look up from the Item field and select item 1968-S in the Item List window (or press F6). 5. While the item is selected, click Item→Entries→Ledger Entries (or
press Ctrl+F5) to open the Item Ledger Entries window.
FIGURE 1.14 THE SECOND-LAST ITEM LEDGER ENTRY OF ITEM 1968-S SHOWS THAT TWO PIECES WERE RETURNED ON 01/13/08 AND PUT BACK IN RED INVENTORY WITH THE SALES DIMENSION VALUE.
NOTE: The last item ledger entry shows that on 01/20/08, the two swivel chairs
6. Back in the item reclassification journal, enter 01/13/08 in the Posting Date field.
7. Look up in the Department Code field and select SALES. 8. Leave the New Department Code field empty to indicate that the
item ledger entry will not hold a dimension value.
9. Look up in the Location Code field and select RED to ensure that the reclassification happens in the right warehouse.
10. In the Quantity field, enter 1.
FIGURE 1.15 THE ITEM RECLASSIFICATION JOURNAL READY TO POST AND THEREBY REMOVE THE SALES DEPARTMENT CODE FROM THE ITEM LEDGER ENTRY.
11. Post the journal.
To verify that the reclassification functioned as intended, proceed to check the item ledger entries of item 1968-S.
12. Click Warehouse→Planning & Execution→Items. 13. Scroll to the card of item 1968-S.
Notice that two new item ledger entries of type Transfer are created: one for a quantity of -2, removing the existing entry, and one for a quantity of +2, restoring the entry, but without the SALES department code.
Again assuming that the last item ledger entry does not exist, when 01/20/08 arrives, the order processor will sell from inventory two Mexico swivel chairs that do not hold dimension values as is company rule.
Summary
A typical task involved in controlling inventory is to analyze and maintain inventory levels to keep the supply chain flowing. Other general tasks are to post adjustments to inventory, either with the item journal, as a substitute for
Test Your Knowledge
1. Which of the following windows show item availability according to MPS (Master Production Schedule) concepts? (Select all that apply.)
( ) Item Availability by Period ( ) Item Availability by Date ( ) Item Availability by Variant ( ) Item Availability by Location
2. Which of the following are allocations? (Select all that apply.) ( ) A quantity consumed as production components
( ) A quantity entered on inbound orders, but yet unposted ( ) A quantity entered on outbound orders, but yet unposted ( ) Reserved items
3. Which window shows how many items are available in different warehouses?
( ) Item Availability by Warehouse ( ) Location Availability
( ) Item Availability by Location ( ) Warehouse Availability 4. Complete the following formula:
Availability = ___________+ Inbound Quantities - __________________
5. Which item journal functions enable you to reuse item journal lines? (Select all that apply.)
6. Which field must be selected to show expected inventory on the Phys. Inventory List report?
7. Task: Put the following steps in order:
Step _____ : Count the quantity of each item and write the figure in the empty field.
Step _____ : Fill in a physical inventory journal with calculated (expected) inventory.
Step _____ : Print the Physical Inventory List sheet to write counted quantities on.
Step _____ : Enter the counted quantities in the physical inventory journal. 8. In the Phys. Inventory Journal window, what value is shown in the Entry Type field when you enter a surplus in the Qty. (Phys. Inventory) field?
9. Which of the following are special characteristics of the reclassification journal? (Select all that apply.)
Quick Interaction: Lessons Learned
Take a moment and write down three key points you have learned from this chapter:
1.
2.
Solutions
Test Your Knowledge
1. Which of the following windows show item availability according to MPS (Master Production Schedule) concepts? (Select all that apply.)
(√) Item Availability by Period ( ) Item Availability by Date (√) Item Availability by Variant (√) Item Availability by Location
2. Which of the following are allocations? (Select all that apply.) ( ) A quantity consumed as production components
( ) A quantity entered on inbound orders, but yet unposted (√) A quantity entered on outbound orders, but yet unposted (√) Reserved items
3. Which window shows how many items are available in different warehouses?
( ) Item Availability by Warehouse ( ) Location Availability
(•) Item Availability by Location ( ) Warehouse Availability 4. Complete the following formula:
Availability = ___________+ Inbound Quantities - __________________ MODEL ANSWER - 1: Inventory 2: Allocations
5. Which item journal functions enable you to reuse item journal lines? (Select all that apply.)
6. Which field must be selected to show expected inventory on the Phys. Inventory List report?
MODEL ANSWER - Show Qty. (Calculated)
7. Task: Put the following steps in order:
Step 3 : Count the quantity of each item and write the figure in the empty field.
Step 1 : Fill in a physical inventory journal with calculated (expected) inventory.
Step 2 : Print the Physical Inventory List sheet to write counted quantities on.
Step 4 : Enter the counted quantities in the physical inventory journal. 8. In the Phys. Inventory Journal window, what value is shown in the Entry
Type field when you enter a surplus in the Qty. (Phys. Inventory) field? MODEL ANSWER - Positive Adjmt.
9. Which of the following are special characteristics of the reclassification journal? (Select all that apply.)
( ) It is used to rename items
( ) It creates one item ledger entry of type Transfer for each posting. (√) It uses variations of the New field.
(√) It creates two item ledger entries for each posting.
10. Which journal do you use to post an adjustment of item information in inventory?
CHAPTER 2: RESERVE AND ORDER TRACK ITEMS
Objectives
The objectives are:
• Reserve items on inventory or inbound.
• Track from demand to matching supply and vice versa.
• Distinguish reservations from order tracking links.
Introduction
For many companies, the greater challenge lies in their ability to couple demand with supply in a manner that provides transparency and guarantees superior customer satisfaction without increasing inventory carrying costs.
To meet such a challenge, most wholesalers and manufacturers generally need the ability to:
• Ensure that a specific demand can always be fulfilled by committing a corresponding supply to it.
• See the details of such allocations to locate alternatives that can satisfy urgent customer requests in situations where inventory is otherwise unavailable.
The program supports these needs with the following features:
• Reservations
Reserve Items
Reservations are intended for salespeople who want to reserve inventory or inbound items for a specific sales order, and for production planners who want to reserve components for firm planned production orders before they are released. The reservation system enables the user to make a firm link between existing supply and demand, which directly affects the way the inventory transaction is performed. Reservations may also be used to handle exceptional situations where the results of the normal, automatic offsetting of supply and demand are
unacceptable.
The program follows the simplicity principle that if reservations are broken because of quantity changes on the demand or supply side, the user must manually remove and recreate the reservation.
Set Up Reservations
Each item can be set up to handle reservations by selecting one of three different options in the Reserve field on the Planning tab of the item card:
• Always
• Optional
• Never
The reservation setup options define the following system reactions:
• Always(also called automatic): Every time the item is entered on a sales order or other outbound order, such as an outbound transfer or a production component line, the system automatically tries to reserve the required quantity from the first available supply in inventory or on inbound orders, such as purchase or production orders.
• Optional (most common setup): Reservations are never made automatically, but the user can reserve manually in the Reservationwindow.
• Never: Neither automatic nor manual reservation is possible. No other setup is required for reservations.
Automatic reservation with no user involvement, irrespective of the above reservation setup, occurs when the planning system creates supply orders using the Make-to-Order (M-T-O) manufacturing policy, or when the user creates a production order directly from a sales order. Refer to “Manufacturing I” for more information on supply planning.
The Reservation Window
From any outbound order, a user can reserve from four different types of supply:
• Item ledger entry (quantity in inventory)
• Purchase order line
• Released production order line
• Firm planned production order line
Manually reserving either of these supply types takes place when you select from proposed supply with dedicated functions in the Reservation window. Review this by opening existing sales order 109001 in the demonstration company.
3. Place the pointer in the first and only sales order line. 4. Click Functions→Reserve.
FIGURE 2.2 THE RESERVATION WINDOW PROPOSING RESERVATIONS FROM THREE DIFFERENT SUPPLY TYPES
The Reservation window shows all the supply types that may cover the required quantity on the sales order line.
To reserve a quantity, place the pointer on a supply type line, and then click Functions→Reserve from Current Line.
The program allows you to reserve items that are not available in inventory but are inbound on purchase or production orders. The condition is that the expected receipt date of such inbound quantities is earlier than the shipment date of the sales order. The program cancels a reservation automatically when date changes make the supply-demand link impossible.
Demonstration - Reserve Items on a Purchase Order
Scenario: Susan, the order processor, is about to finalize a sales order for four units of item 80201 for customer 20000. The items are not in inventory, but they are expected to arrive before the sales order is to be shipped. To be absolutely sure that the sales order is fulfilled, she reserves the needed quantity from the purchase order.1. Create a purchase order for vendor 3000 for ten units of item 80201 with expected receipt date on 02/01/08 at blank location.
3. From the sales order, click Functions→Reserve.
FIGURE 2.3 RESERVATION WINDOW SHOWING THAT 4 ARE REQUIRED AND 10 ARE AVAILABLE ON A PURCHASE ORDER LINE.
The Reservation window header contains information about the demand. The lines show the available supply, including how much of the supply is currently allocated in the warehouse on picks or shipments. This is shown in the Qty. Allocated in Warehouse field. The lines may contain several sources of supply with different reservation status.
NOTE: If the sales order is for a specific serial and/or lot number, the
Reservation system will allow the user to reserve that specific serial/lot number in a dedicated window. Refer to “Handle Serial/Lot Numbers” in this course.
In this scenario, Susan is not concerned with reserving specific items (serial/lot numbers), so she proceeds to reserve four of the 10 units on the purchase order line.
Susan can see from the Reservation window that the units of item 80201are reserved for her sales order. To verify this, she looks up the reservation entries of the sales order.
5. From the sales order, click Line→Reservation Entries.
FIGURE 2.5 RESERVATION ENTRIES CREATED BETWEEN THE SALES ORDER AND THE INBOUND PURCHASE ORDER
Track Supply and Demand
Like reservations, order tracking is the linking of demand to a corresponding supply. However, order tracking is merely informational and does not affect availability as do reservations.
Depending on item setup, the program creates order tracking links dynamically to reflect possible order fulfillment. This linking works as information about
possible fulfillment within the availability system and, as such, may work as a simple planning tool. If the item is not set up for such dynamic order tracking, then order tracking links are only created as a reflection of concrete reservations or planning results.
A more advanced feature of order tracking is that of action messaging (planning suggestions), which is mostly for decision making in connection with production planning.
Relation to Reservations and Planning
From sales order 1001, click Functions→Order Tracking.
FIGURE 2.6 ORDER TRACKING INFORMATION CREATED AS A RESULT OF A RESERVATION
Notice that the four reserved pieces are now also reflected as order tracking links between the sale and the purchase, although item 80201 is not set up for dynamic order tracking.
For the same reason as for reservations, the program creates order tracking links between demand and a corresponding supply that is created by the planning system. A typical example of this is the order tracking between a sales order and a purchase order indicating that the existence of the sales order caused the planning run to create the purchase order. For detailed information on order tracking and action messages in planning, refer to the “Manufacturing II” course.
Set Up Order Tracking
Each item can be set up to create order tracking links by selecting one of three different options in the Order Tracking Policy field on the Planning tab of the item card:
• None
• Tracking Only
• Tracking & Action Msg.
The order tracking setup options define the following system reactions:
• Tracking Only (also called dynamic tracking): The program creates order tracking links as soon as the user creates an order that may be offset by an existing order.
• Tracking & Action Msg: In planning, this option means the same as above, plus the program creates action messages for net change planning purposes.
No other setup is required for order tracking.
Demonstration - Track to a Purchase that Matches a Sale
Scenario: Susan, the order processor, is about to promise to a customer the sale of eight Performance Keyboards, item 80212 on 01/24/08. She knows these items are not on inventory, so to make sure they will be available she uses ordertracking and sees that they are inbound on a purchase order with a receipt date of 01/20/08.
Begin by setting the item up for dynamic order tracking.
1. Click Purchase→Planning→Items and scroll to item 80212. 2. On the Planning tab, look up in the Order Tracking Policy field
and select Tracking Only.
The item is now set up for order tracking. Proceed to buy and sell it. 3. Click Purchase→Order Processing→Orders.
The purchase order is created. Proceed to create the sales order. 5. Click Sales & Marketing→Order Processing→Orders.
6. Create a new sales order to any customer for eight pieces of item 80212 from BLUE location with shipment date on 01/24/08. To verify that the items will be available on 01/24/08, Susan uses order tracking to see if a matching supply exists.
7. From the sales order, click Functions→Order Tracking.
FIGURE 2.8 ORDER TRACKING LINK TO THE PURCHASE ORDER 8. Create a new sales order to any customer for eight pieces of item
80212 from BLUE location with shipment date on 01/24/08. To verify that the items will be available on the shipment date, Susan uses order tracking to see if a matching supply exists.
The Order Tracking window shows that the full sales quantity of eight pieces is covered by purchase order 106024; the Untracked Quantity field shows zero. Susan decides to take a closer look at the purchase order.
10. From the Order Tracking window, click Show. Purchase order 106024 opens.
To be absolutely sure that the purchase order is linked to her sales order, Susan uses order tracking in the other direction: from the supply to the demand.
11. Click Functions→Order Tracking.
FIGURE 2.10 ORDER TRACKING LINK FROM THE SUPPLY TO THE DEMAND
Now the Order Tracking windows shows that eight pieces on the purchase order are linked to eight pieces on the sales order. The remaining 12 pieces is an untracked quantity, meaning that no link is made for this quantity. In connection with order tracking between actual supply and demand windows, like purchase and sales orders, a lookup from the Untracked Quantity field will never yield any additional information.
When using order tracking in supply planning, through the requisition worksheet or planning worksheet, a lookup from the Untracked Quantity field will show order tracking links to the following other types of demand:
• Planning parameters
• Production forecasts
• Blanket sales orders
Reserving vs. Order Tracking
As illustrated in this chapter, order tracking is managed within the reservation system but with a distinct difference from reservations: reservations are only possible against order network entities that are part of the availability calculation and have a status higher than planned (scheduled availability). Order tracking, on the other hand, is possible against any order network entity that takes part in the net requirement calculation by the planning run. This includes pure order suggestions and planned production orders.
The following table shows which order network entities can be order tracked and which can be reserved:
Name Option
Item Ledger Entry Reserve / Order Track
Sales Quote Can only be order tracked to a simulated production order and vice versa.
Sales Order Reserve / Order Track
Purchase Order Reserve / Order Track Requisition line Order Track
(Only if resulting from a planning run) Planned Prod. Order line Order Track
Firm Planned Prod. Order line Reserve / Order Track Released Prod. Order Line Reserve / Order Track
Simulated Prod. Order Line Order track to sales quote only Prod. Order Component Reserve / Order Track
(Reservation only against firm planned and released components)
MRP Line Order Track (Only if resulting from a planning run)
MRP Component Order Track (Only if resulting from a planning run)
Summary
Test Your Knowledge
1. Which setting must you select if you sometimes want to manually reserve an item?
( ) Sometimes ( ) Never ( ) Optional ( ) Always
2. What is the purpose of the reservation feature?
3. Which of the following types of supply can be reserved? (Select all that apply.)
( ) Released production order line ( ) Sales order
( ) Planned production order line ( ) Item ledger entry
4. With a setup option of None, when are order tracking links created? (Select all that apply.)
( ) Between a sales order and a matching production order that is created by the planning system
Quick Interaction: Lessons Learned
Take a moment and write down three key points you have learned from this chapter:
1.
2.
Solutions
Test Your Knowledge
1. Which setting must you select if you sometimes want to manually reserve an item?
( ) Sometimes ( ) Never (•) Optional ( ) Always
2. What is the purpose of the reservation feature?
MODEL ANSWER - To make a firm link from a demand to a supply that blocks the supply from being available to other demands.
3. Which of the following types of supply can be reserved? (Select all that apply.)
(√) Released production order line ( ) Sales order
( ) Planned production order line (√) Item ledger entry
4. With a setup option of None, when are order tracking links created? (Select all that apply.)
(√) Between a sales order and a matching production order that is created by the planning system
(√) Between a sales order and its reserved purchase order (√) Between a sales order and its reserved production order ( ) Between a sales order and a matching purchase order 5. What is the purpose of the order tracking feature?
CHAPTER 3: USE MULTIPLE LOCATIONS
Objectives
The objectives are:
• Set up a company with multiple locations.
• Link customers and vendors to locations.
• Set up responsibility centers.
• Link users, customers, and vendors to responsibility centers.
• List multi-location setup guidelines.
• Get an overview of Cronus setup data.
• Create sales and purchase orders for multiple locations.
• Create and set up stockkeeping units.
Introduction
Many modern companies have their organization and operations distributed over large geographic areas, with each unit being managed independently. Such an approach to organizing their business helps companies gain competitive
advantage through achieving operational flexibility and customer responsiveness. At the same time, companies with multiple locations face the challenge of retaining control over their decentralized operations and optimizing the inventory flows. To meet this challenge, such companies must ensure that the real-time information generated at the location level is available to the rest of the organization.
The Multiple Locations and Responsibility Centers granules in Microsoft Dynamics™ NAV provide companies that have multiple sites the opportunity to manage their business operations in a flexible, yet optimal way.
With the Multiple Locations granule, companies can manage their inventory in multiple locations using one database. Two concepts, location and stockkeeping unit, are the cornerstone of this granule. A location is defined as a place that handles physical placement and quantities of items. The concept is broad enough to include locations such as:
• Plants or production facilities
• Distribution centers
• Warehouses
A stockkeeping unit is defined as an item or a variant of an item at a specific location. With the stockkeeping units, companies with multiple locations are able to add replenishment information, addresses, and some financial posting
information on the location level. As a result, they can replenish variants of the same item for each location as well as order items for each location on the basis of location-specific replenishment information.
The Responsibility Centers granule extends the multiple locations functionality by providing the possibility of handling administrative centers. A responsibility center can be:
• A cost center
• A profit center
• An investment center
Examples of responsibility centers are a sales office, a purchasing department for several locations, and a plant planning office. With this granule, companies can set up user-specific views to show only sales and purchase documents related to a particular responsibility center.
Note that the Multiple Locations and the Responsibility Centers granules can be implemented independently.
Set Up a Company with Multiple Locations
The first half of this chapter discusses how to use the Multiple Locations granule to set up your company with multiple locations to reflect its current and future administrative and geographic configuration. The second half explains the implications that alternative setup options have on the company's business processes in respect to making sales and purchase orders.
First, the Multiple Locations granule and then the Responsibility Centers granule are demonstrated by reviewing the logistical setup of the Cronus demonstration company.
Demonstration - Review a Centralized Warehouse Setup
In the following demonstration, a company's structure is represented by a head office, which administers all purchases and sales, and a number of warehouses where inventory is handled and stored. The company follows a centralized purchase policy.
Look at how Cronus reflects their organizational configuration in the Microsoft Dynamics NAV setup.
The general company information is recorded on the company information card. 1. Click Administration→Application Setup→General→Company
Information. The Company Information window appears. Fields on the General tab contain the address details of the Cronus company headquarters:
FIGURE 3.1 GENERAL INFORMATION OF THE CRONUS COMPANY HEADQUARTERS
2. Click the Shipping tab.
FIGURE 3.2 SHIPPING INFORMATION OF THE CRONUS COMPANY HEADQUARTERS
By default, the program fills in the various ship-to fields on the Shipping tab with the address details of the company's headquarters. However, if the
In the Location Code field, the user can select the location code that corresponds to the company's ship-to address. If the field contains a code, whenever the purchasers order items are shipped to the company, the program automatically uses the warehouse location represented by the code.
Location codes are set up on individual location cards.
3. Click Administration→Application Setup→Warehouse→Locations. The Location Card window appears.
Generally, the location card is used to record information about the company's locations. In Microsoft Dynamics NAV, location is defined as a physical place where items are produced, handled, and stored before being sold. A location can be, for example, a production plant, a warehouse, or a distribution center. The purpose of setting up locations in Microsoft Dynamics NAV is to make a
distinction between where different locations are geographically located and how they handle inventory. The address information held on the location card is printed on the purchase documents to notify vendors to which locations they must ship the ordered items.
Companies must set up a location card and a location code for each of their locations.
BEST PRACTICE: It is recommended that companies set up at least one
location, where they record inventory increases and decreases. If no location is set up, the program uses a “blank location.” If part of the inventory quantity is on the “blank location,” it is difficult to discern that quantity in Microsoft Dynamics NAV. For example, the Item Availability by Location window only shows the quantities in the different locations but does not show any quantity that does not belong to a location.
4. On the location card, press F5 to view the Location List window.
Cronus has set up eight locations: six represent warehouses and two, OUT. LOG. and OWN LOG., are the in-transit locations. For more information on in-transit location, refer to “Location Transfers” in this course.
By selecting a location on the list and clicking Location→Card, you can see the address and setup details for each location.
The distribution center in Birmingham, represented by location code BLUE, is the location that Cronus wants its vendors to ship ordered items to. To set up this process in the program, follow this procedure:
5. Reopen the Company Information window and on the Shipping tab, enter BLUE in the Location Code field.
Cronus is now set up to use BLUE location as the main receiving location for purchase orders.
FIGURE 3.4 BLUE LOCATION SET UP AS THE MAIN RECEIVING LOCATION OF ITEMS SHIPPED TO CRONUS
Link Customers and Vendors to Locations
For a number of reasons, such as to ensure fast deliveries to their customers or to optimize purchase processes with some vendors, companies may choose to pursue a decentralized distribution strategy. Such a strategy suggests that instead of one central warehouse, vendors ship purchase orders to different locations, which then ship the sales orders to the customers. To reflect these procedures in the program, the company can link certain customers and vendors to specific locations.
Demonstration - Review a Decentralized Warehouse
Setup
Scenario: Cronus customer 40000, Deerfield Graphics Company, is located in Gloucester. Due to the customer's proximity to the YELLOW warehouse, the company has established a procedure by which they always ship items to this customer from this specific warehouse instead of the central warehouse represented by the default BLUE location.
Similarly, Cronus has decided that one of its vendors, vendor 40000, will always ship orders to its GREEN warehouse located in Liverpool.
To reflect these procedures in the program, the company links customer 40000 to the YELLOW location and links vendor 40000 to the GREEN warehouse. To link a customer to a location, the user must select a default location code on the customer card:
1. Click Warehouse→Orders & Contacts→Customers. 2. Select customer 40000 and click the Shipping tab.
FIGURE 3.5 CUSTOMER 4000 SET UP TO HAVE ITEMS SHIPPED FROM YELLOW LOCATION
Notice that the Location Code field contains the code for the YELLOW
Similarly, to link a vendor to a location, the user must select a default location code on the vendor card.
3. Click Warehouse→Orders & Contacts→Customers. 4. Select vendor 40000 and click the Receiving tab.
FIGURE 3.6 VENDOR 4000 SET UP TO HAVE ITEMS RECEIVED AT GREEN LOCATION
Notice that the Location Code field contains the code for GREEN location. The program uses this code as a default location code every time the user makes a purchase order from this vendor.
The implications that this setup has on where addresses on different documents come from are discussed in this chapter. Aditionally, you will see how the company uses the Multiple Locations granule functionality granule to distinguish between different locations and manage inventory at each specific location.
Set Up Responsibility Centers
With the Responsibility Centers granule, companies can set up responsibility centers to help administer their business. For example, a responsibility center can administer sales and purchases for one or more warehouses or distribution centers, where goods are handled and stored prior to being sold. With this functionality, companies can set up user-specific views to show only sales and purchase documents related to a particular responsibility center.
