Check and Modify Item to Facility Connection

This document explains how you modify the connection of an item to a facility that was created automatically when you connected the item to a warehouse in 'Item. Connect Warehouse' (MMS002).

Outcome

Information about the following will be modified: the main warehouse, the on-hand balance method per facility, customs data and flow order planning for the combination item/facility.

The created combination of item and facility is used in cost calculations and in the process of export and import.

Item/facility connections are stored in the (MITFAC) table.

Before you start

Parameters to set

Program ID/Panel Field The field indicates …

(MMS003/E)

Customs statistical number

...the customs statistics number, which is used in printouts of various shipping documents, such as the unit document. It is also used for regulating and calculating data for transactions to Intrastat, the trade statistics of the EU.

The customs statistics number is specified for each item/facility.

(MMS003/E)

Administrative lead time

...the administrative lead time, which is added to the total lead time for each item/warehouse. In principle, the administrative lead-time can be considered as the time allotted to perform activities required before a planned order can be released.

The administrative lead-time is used only for acquisition methods 1 and 2. See related document Connect Item to Warehouse

(MMS003/E)

Main warehouse

…main warehouse for the current item per facility. The item’s cost is retrieved from the main warehouse. If the item is connected to several warehouses and acquired in different ways, then the acquisition code set for the main warehouse is used to calculate cost.

Note:

When the item is scheduled with optimal on-hand balance per facility, acquisition is presumed to be from the main warehouse.

Manufactured items have necessary connections from the facility to the item/warehouse, which are made according to settings in the main warehouse.

(MMS003/E)

Ordering cost

...the ordering costs per item, expressed in domestic currency. This is for the fixed costs that arise each time the item is purchased or manufactured.

The ordering cost is used for calculating the economic order quantity according to the Wilson formula, and when lot sizes are calculated for requirements planning. If the ordering cost per item is missing, use the one entered as parameter in 'Settings. Ordering Costs' (CRS730).

(MMS003/E)

Minimum accepted contribution margin ratio

…the minimum contribution margin ratio for an item. The information is used to check the contribution margin ratio when customer order lines are entered.

The value is stated as a percent with a maximum of two decimal places. If no value is entered (zero or blank), the check will not be made.

(MMS003/E)

On-hand balance method-facility

...which method is to be used when calculating the on-hand balance for the facility. The valid alternatives are:

0 = Do not accumulate on-hand balance.

1 = Accumulate changes in balance for status 2 and 3.

2 = Accumulate changes according to transaction types:

- Purchasing, order category 1

- Physical inventory differences

- Manufacturing

- Sales

- Scrap.

Note: This method is intended for use within maintenance-oriented activities.

(MMS003/E)

Optimal on-hand balance facility

...the optimal on-hand balance for each facility. If this point is not reached, the order control method specified for the facility's main warehouse is checked.

If the current warehouse has method 4 and existing orders (planned or released) do not cover the quantity needed, a planned order will be created.

(MMS003/E)

Production line

...the default production line where the product will be produced. It is defined as a work center in 'Work Center. Open' (PDS010). It can be changed manually in a planned order or a released order.

(MMS003/E

Inventory accounting method

…the inventory accounting method that sets how the cost of an item is determined per item/facility. The valid alternatives are:

0 = Zero cost

1 = Standard cost

2 = Average cost

3 = Dynamic product cost

4 = Actual cost

5 = Simplified purchasing.

Note that one of lot control methods 2 to 5 must be selected for the item in (MMS001/E). The cost is calculated per lot number.

If you select alternative 0, zero cost, the item has no inventory value. This method can be used for all kinds of items.

If you select alternative 1, standard cost, the method is used for repetitive manufacturing or standardized items/products. The standard cost is calculated per item/facility. It can be used for all kinds of items.

If you select alternative 2, average cost, the method is primarily used for purchased items, as when the cost cannot be defined in advance. It can be used for all kinds of items.

If you select alternative 3, dynamic product cost, the method is primarily used for manufacturing configured items. When the order is released, the standard cost is calculated for that specific order.

If you select alternative 4, actual cost, the method is used when you want inventory value to equal actual cost for the item, so no variances are created for the item. The actual cost is calculated per lot number. The method can be used for any kind of item.

Alternative 5, simplified purchasing, can only be used for items registered as non-inventory goods - in the ‘Inventory accounting’ field in (MMS001/E) - for example office supply. No accounting transactions are then created at goods receipt. Instead the expense accounting is created based on accounting rule PP20-903 when the invoice is later matched to the purchase order and goods receipt. (The accounting string for this accounting rule is proposed when the purchase order is created but can be changed manually for the specific order).

(MMS003/F)

Item cost quantity

…the default item cost quantity per item/facility (or equipment, in the case of maintenance). However, if the field is used in an order line, it indicates a specific relationship between the value and that order line only. The order line value will then replace the default item cost quantity entered in (MMS003/E).

The item cost quantity is always entered in the basic unit of measure of the item. Example:

If an item costs USD 150 and the item cost quantity is 5, then the item cost per basic unit of measure is 150/5 = 30.

The purpose of displaying the cost per item cost quantity is to obtain a more accurate calculation by using more decimals. Example:

If an item obtains the cost of 10.333333 from the product calculation, only the value 10.3333 is stored if the maximum number of decimals is used. However, by basing the calculation on 100 items, for example, the value 1033.3333 is stored, thereby avoiding any rounding-off problem.

(MMS003/F)

Orderless production

…if the item is manufactured and delivered with or without a manufacturing order. The valid alternatives are:

0 = With a manufacturing order.

1 = Without a manufacturing order.

(MMS003/F)

Consumption code for trade statistic

...indicates the consumption code, which is defined

for each item used for trade statistics.

(MMS003/F)

MO reservations

...if the item should be reserved for a manufacturing order.

The valid alternatives are:

0 = No

1 = Yes

The alternative is specified for each item/facility. In those cases the item is controlled by a reorder point and is used frequently, this parameter helps minimize the load on the system.

However, if no reservations are made in 'Material Plan. Open' (MMS080), it is not possible to use a picking list when allocating the item. Instead, a so-called backflush is defined in 'Item. Connect Warehouse' (MMS002/G). (Issue method must be set to 1).

(MMS003/F)

Area/state

...an area, province or state within a country. This information is used for U.S. sales tax and for trade statistics.

(MMS003/F)

Automatic creation of MO

...if a prompt to create a manufacturing order (MO) for dynamically configured manufactured items is made immediately after customer order (CO) line entry. If the item will not be configured, the valid alternatives are:

0 = No, prompt to create MO later

1 = Yes

Dynamically configured manufactured items have configuration code 1.

(MMS003/F)

Customs procedure - import

…the customs procedure used for the import of goods.

The information is used to update the trade statistics.

(MMS003/F)

MO lead time method

…the lead time method for manufactured items. The valid alternatives are:

0 = The number of days that an operation must start before an item’s finish date. This method ignores quantity when calculating the total lead-time for the product/MO. However, order quantity affects the operation time.

1 = The operation time is automatically calculated depending on the setup time for each operation. The lead-time for every operation is added to the previous operation’s lead-time. This method does consider order quantity. This field is normally activated.

(MMS003/F)

Custom procedure-export

…the customs procedure used for the export of goods.

(MMS003/F)

Dynamic lead time fence

...the fence, in days, during which a dynamic lead time calculation should be performed. For an order to be inside the fence its finish date must be within it.

(MMS003/F)

Costing model- Purchasing

...the ID of the costing model used for each item. The costing model is defined in 'Purchase Costing Model. Open' (PPS285)

(MMS003/F)

Flow order planning

...if the item should be flow order planned within the specified flow order fence. The valid alternatives are:

0 = No.

1 = Yes, within the flow order fence.

2 = Yes, within the flow order fence and for all released manufacturing orders.

A flow order means that material (reservations) and expected receipts are distributed in accordance with the duration expected:

- Planned material issues are distributed throughout the operation time according to the operation in which they are to be used. However, a condition is that the material is also specified as a flow order and that a leveling fence exists.

- Planned receipts of products are distributed during the operation time for the last operation, which is performed in a key resource.

(MMS003/F)

Costing model-Product costing

...the ID of the product costing model generally applied in (PCS001) or for each separate item in 'Item. Connect Facility' (MMS003).

The costing model is defined in 'Costing Model. Open' (PCS025).

(MMS003/F)

Costing model - sales price

…the ID of a costing model for sales prices. Costing models can be connected to different price lists and are used to calculate both basic prices and order-costed prices.

(MMS003/F)

Flow order fence

...the number of days within which manufacturing orders are to be classified as flow orders.

(MMS003/F)

Planning process

...the ID of a process planning item. By entering a process planning item, you define an item as an end product. The end product is an item that is the result of a planning process.

A process-planning item must have inventory accounting code 2 in 'Item. Open' (MMS001) and master scheduling code 4 in 'Item. Connect Warehouse' (MMS002).

(MMS003/F)

Push process

...the process planning item for a push process.

This function is not activated in the current release of M3.

(MMS003/F)

Preliminary price for line type 0, 1 or 2.

…the default value for the preliminary price code on customer order line for line type 0, 1, 2, and 3. The preliminary price code on a CO line controls whether the sales price on a customer order line is preliminary. Customer order lines with preliminary price marking will not be invoiced until the marking has been removed.

The valid alternatives are:

0 = The sales price is not preliminary.

1 = The sales price is preliminary. The preliminary price marking will automatically be set to 0 (final price) if sales price calculation is performed from:

- Purchase proposal (PPS170)

- Purchase order line (PPS201)

- Purchase confirmation (PPS250)

- Check supplier invoice (PPS405)

- Re-calculate sales price (OIS156).

2 = The sales price is preliminary. The preliminary price marking will automatically be set to 0 (final price) if sales price calculation is performed from:

- Check supplier invoice (PPS405)

- Re-calculate sales price (OIS156).

3 = The sales price is preliminary. The only way to remove the preliminary price marking is to change the order line.

(MMS003/F)

Calculate price for line type 0, 1 or 2.

…whether the sales price on a customer order line with line type 0, 1 or 2 is calculated (dynamically) during customer order entry. The valid alternatives are:

0 = No.

1 = Yes.

Follow these steps

  1. Start 'Item. Connect Facility' (MMS003).

  2. On the B panel, select the item/facility combination you want to modify.

  3. On the E and F panels, enter the necessary data. See the Parameters to Set section for parameter descriptions.

  4. To connect the item to other facilities, repeat step 2 and 3 for each facility.

Related topics