The production, distribution, or purchase of these items is
planned in Enterprise Planning based on the forecast or the actual demand.
You can plan these items by means of the following:
Master-based planning, which is similar to master production
scheduling techniques.
Order-based planning, which is similar to
material-requirements planning techniques.
A combination of master-based planning and order-based
planning.
Plan items can be one of the following:
An actual manufactured or purchased item.
A product family.
A basic model, that is, a defined product variant of a
generic item.
A group of similar plan items or families is called a product
family. The items are aggregated to give a more general plan than the one
devised for individual items. A code displayed by the item code's cluster
segment shows that the plan item is a clustered item that is used for
distribution planning.
Quantity
Warehouse
The warehouse from and to which the item is normally
delivered.
Allowed values
For a non-clustered item this must
be a warehouse in the item's logistical site.
The warehouse of a clustered item must belong
to the item's cluster.
Effectivity Unit
A reference number, for example a sales order line or a project
deliverable line, that is used to model deviations for a unit effective item.
Requirement Date
Order Status
The status assigned to a planned order in Enterprise Planning.
The employee or department responsible for planning the
production, purchase and distribution of items. The planner takes into account
the inventory levels, availability of materials, and capacities of resources,
and reacts on signals such as rescheduling messages that LN generates.
From Project
The range of projects from which excess inventory is transferred.
From Element
The range of elements from which excess inventory is
transferred.
From Activity
The range of activities from which the excess inventory is
transferred.
Excess based on
Select the option excess is based on:
Allowed values
Inventory
Scheduled Receipts
Hidden Fields
Planning Group
Select the range of planning groups for which orders will be generated.
.
Inventory Valuation
Inventory valuation
Inventory valuation
Inventory can be valued using several valuation
methods:
Valuation methods result in a particular inventory value in the
ledger. However, the market value of the inventory can sometimes be lower than
the inventory value in the ledger, for example, when item prices decrease, or
when the items are almost at the end of their life cycle. Consequently, the
value in the ledger does not always represent the real value of the inventory
anymore.
The International Financial Reporting Standards (IFRS) require
in some cases reporting the market value of the
inventory.instead of an inventory value determined by the original purchase
prices. The market value can provide you with a better insight into the real
value of the inventory. Reporting inventory value based on market prices
instead of (higher) purchase prices is also referred to as lower cost or market value (LCMV).
You can choose whether or not to revaluate the inventory value to the market value. Therefore, the following options are
available:
Reporting inventory value without revaluation
The inventory value is determined using market prices. However,
this inventory market valuation is only temporary. At the start of the next
financial period, the original inventory value (based on purchase prices) is
used.
Reporting inventory value with revaluation
The inventory value is determined using market prices. After
that, the inventory is revalued with the market value. So, at the start of the
next financial period, the market value is used as the new inventory
value.
Market prices in Warehousing
In LN, you can use market prices to valuate inventory for purchased
items as well as for manufactured items. Market prices can be entered in the Market Prices (whina1118m000) session.
Market prices, which are either approved purchase prices or
manually entered prices, are used in the following sessions:
Perform Inventory Valuation (whina1210m000)
If, on the Difference tab, under Compare Inventory Value With, either of the following
options is selected:
Market Price (including surcharges)
Market Price (excluding surcharges)
Change Valuation Method (whina1232m000)
If, after changing the valuation method, the inventory value
must be equal to the market price.
Actual Costs Correction (whina1230m000)
If the valuation method is First In First Out (FIFO), Last In First Out (LIFO), Lot Price (Lot), Serial Price (Serial), or Mov. Aver. Unit Cost (MAUC), and the inventory value must be equal to the lowest of
the current inventory value and the market price.
Calculate Cost and Valuation Prices (ticpr2210m000)
If the valuation method is Fixed Transfer Price (FTP), and the new FTP (and inventory value) must be equal to
the lowest of the current FTP and the market price.
If an item's market price that is entered in the Market Prices (whina1118m000) session is lower than the item's original purchase
price, the market price is used to calculate the valuation price.
Example FTP valuation method
The value of the inventory is obtained by multiplying the
inventory by the cost price of the items. Each workday the inventory will be
changed by transactions, and the cost price is valid for a specific period. To
calculate the value of the inventory from a particular date in the past,
multiply the inventory and the cost price on that date.
Note
Use the Perform Inventory Valuation (whina1210m000) session to perform the calculations in one
run. The calculations are performed based on the used valuation methods.