Glossary for Warehousing

ABC analysis
An evaluative process in which items are classified into those making a large contribution (A items), an intermediate contribution (B items), and a small contribution (C items) to the total inventory turnover.
ABC code
A code that shows each item's contribution to the total inventory turnover. A items are high-value items and C items constitute low value.
activity
A step in a warehousing procedure. An activity corresponds with a session of the Warehousing package. For example, the inbound activity Generate Inbound Advice is performed using the Generate Inbound Advice (whinh3201m000) session.
actual log date
The current date and time when the transaction took place. In contrast with the transaction date, the actual log date cannot be changed.
additional information fields
User-defined fields of various field formats that can be added to various sessions, in which users can edit these fields. No functional logic is linked to the contents of these fields.

Additional information fields can be linked to database tables. When linked to a table, the fields are displayed in the sessions corresponding to the database tables. For example, a field defined for the whinh200 table is displayed as an extra field in the Warehousing Orders (whinh2100m000) session.

The contents of additional fields can be transferred between database tables. For example, the information specified by a user in additional information field A of the Warehousing Orders (whinh2100m000) session is transferred to additional information field A in the Shipments (whinh4130m000) session. For this purpose, additional information fields with identical field formats and field name A must be present for the whinh200 and the whinh430 tables (whinh430 corresponds to the Shipments (whinh4130m000) session).

adjustment order
A warehouse order created specifically to adjust inventory where a variance has occurred. An adjustment order adjusts inventory and creates financial transactions.
administrative shipment structure
The administrative structure is the arrangement of shipment headers and shipment lines.
administrative warehouse
A warehouse that offers a view of a warehouse that is managed by a business partner. An administrative warehouse corresponds with a physical warehouse controlled by the business partner's system. In that physical warehouse, the inbound and outbound processing takes place. The administrative warehouse mirrors the inventory levels present in the business partner's warehouse.

Administrative warehouses are used in situations such as the following:

  • The warehouse is at your location, but a supplier manages and possibly owns the inventory until you use the items.
  • The warehouse is at the customer's location. You own the inventory until the customer uses the items, but the customer manages the inventory.
  • The warehouse is at the subcontractor's location. You own the unfinished goods present in the warehouse, but the subcontractor manages the inventory.

Administrative warehouse is not one of the warehouse types that you can define in LN, setting up an administrative warehouse requires various parameter settings.

advance shipment notice
A notification that a shipment has been sent. Advanced shipment notices are sent and received by means of EDI. You can receive advance shipment notices from your supplier informing you that goods are to arrive at your warehouse, and/or you can send advance shipment notices to your customers that the goods they ordered are about to be delivered.
Abbreviation: ASN
Synonym: shipment notice
advice number
The number of the individual advice line. A warehousing order line can be subdivided into one or more advice lines depending on the number of lots and/or locations that have been assigned.
allocated inventory
Inventory throughout all warehouses that is allocated to outbound order lines. After the inventory is shipped, that is, has left the warehouse, the allocation is deleted. Also referred to as standard allocation or soft allocation. See also inventory location allocation.
allocation buffer
Inventory that is allocated to a specification. This inventory is not allocated to a specific order, but can be consumed by any order line with a specification whose characteristics match the characteristics of the specification of the allocation buffer.
allocation change order
A commission to change the allocation of inventory.
assembly kit
An order-dependent set of items that must be supplied together to the shop-floor warehouse.
assembly location
The location at which subassemblies or parts are put together.
associated line - handling unit
Handling units can be associated with:
  • ASN lines
  • Receipt lines
  • Outbound advice lines
  • Shipment lines
  • Adjustment order lines
  • Cycle counting order lines
availability planning
The planning method which indicates the availability of tools for the planned production orders, service orders, and the actual production orders. Availability data enables you to check the future availability of the tools for these orders. If a tool is not available for the operation or service activity, you can take appropriate action.
available to transfer (ATT)
Inventory on-hand allocated to a particular project cost-peg demand, but not needed just yet. Therefore the inventory is available for other project cost pegs, provided that the inventory is replenished in time to fulfill the original demand.
Abbreviation: ATT
batch size
The number of assembly kits to be called off.
bill of enterprise
The search structure by company for warehouses based on the numeric priorities assigned to the warehouses. 1 is the highest priority, and 999 the lowest.
bill of lading
The legal document used by the carrier that states what is transported (nature, quantity, weights, and so on) to what address.
blocking
A function used to block inventory transactions. You can define blockings by zone, location, lot, stock point, or serialized item.
BOM line
The line number within the bill of material.
BOM position number
A reference number identifying a specific combination of manufactured and component items in a bill of material. The position number is subdivided by sequence numbers that are used to refer to usage of a component between particular dates.
bulk location
The location used mainly for large inbound quantities and/or containers and to indicate from which pick locations can be replenished.
Business Object Document (BOD)
An XML message used to exchange data between enterprises or enterprise applications. The BOD is composed of a noun, which identifies the message content, and a verb, which identifies the action to be taken with the document. The unique combination of the Noun and the Verb forms the name of the BOD. For example, noun ReceiveDelivery combined with verb Sync results in BOD SyncReceiveDelivery.
business object reference
The reference of a document, which includes detailed information such as document number, line number, and sequence number.
by location
An outbound method that determines the physical outbound priority of a specific item. The inventory is issued from inventory based on the outbound priority of the locations. The inventory date will not be taken into account.
class of risk
A code indicating the type of hazard. This code is only used if a shipment has been flagged as containing hazardous material.
closed warehousing order
A fully processed warehousing order. This means that the related activities are completed and the warehousing order is no longer needed in processes involving the originating order. For example, such processes can include financial posting or invoicing.
commitment time fence
The time interval in which an order must be committed. Ideally, you only want to commit inventory to orders that must be shipped before you can receive the next purchase/replenishment/production order for that item.
company owned
Goods owned by your organization. A type of ownership behavior pertaining to goods in inventory or on order, which is set for standard business processes based on standard attributes such as delivery terms and point of title passage. After your customer receives or stores the goods, the customer will take ownership of the goods. If you purchase goods from your supplier, you become the owner after receipt or storage of the goods.

See also: ownership

consigned
A type of ownership behavior pertaining to goods in inventory or on order.

If you are a customer, consigned goods are goods delivered by the supplier that you do not own and for which you have not paid. You become the owner, and payment is due, when you use or sell the goods, or after a given number of days after you receive the goods.

If you are a supplier, consigned goods are goods that you delivered to your customer, but the customer will not take ownership or pay until he uses or sells the goods, or until a given period of time after receipt of the goods has passed.

The period of time between the receipt of the goods and the date on which the customer becomes the owner, and payment is due, is laid down in the contract drawn up between the supplier and the customer.

See also: ownership

Synonym: Pay on Use
consignment inventory
The goods owned by a third party and that are stored in a warehouse belonging to another party.

Two types of consignment inventory exist:

  • Owned consignment inventory
    Goods your company owns and stores in a customer's warehouse without receiving payment until the goods are used or sold. You do not register the goods as consignment inventory, because the goods are still part of your inventory.
  • Not-owned consignment inventory
    Goods a supplier owns, but that are stored in your warehouse without being paid for until the goods are used or sold. You register the goods as consignment inventory.
consumption
The issue from the warehouse of consigned items by or on behalf of the customer. The customer's purpose is to use these items for sale, production, and so on. After the items are issued, the customer becomes the owner of the items and the customer must pay the supplier.
cross-docking
The process by which inbound goods are immediately taken from the receipt location to the staging location for issue. For example, this process is used to fulfill an existing sales order for which no inventory is available.

LN distinguishes the following three types of cross-docking:

  • Static
    To initiate this type of cross-docking, you must generate a purchase order from a sales order in Sales.
  • Dynamic
    This type of cross-docking, available in Warehousing, can be:
    • Based on inventory shortages.
    • Defined explicitly during receipt of goods.
    • Created on an ad hoc basis.
  • Direct Material Supply
    You can use this type of cross-docking, available in Warehousing, to meet demand in a cluster of warehouses, and is based on:
    • Receipts
    • Inventory on hand
Note

You can maintain cross-dock orders that originate from Sales in the same way as cross-dock orders created in Warehousing, with the exception of the sales order/purchase order link, which you cannot change.

cross-dock lead time
The time interval, defined in hours or days, between receiving the goods on the receiving location until the moment the goods leave the warehouse from the staging location. It includes the normal waiting times on the receiving location and/or staging location, and inspection time.
Note

You can define cross-dock lead times for warehouses and/or item-warehouse combinations.

cross-dock order
An outbound order line for which the goods must be cross-docked. A cross-dock order can be fulfilled by creating cross-dock order lines for it.
cross-dock order line
An inbound order line for which the goods must be cross-docked. Cross-dock order lines are used to fulfill cross-dock orders.
cross-dock order priority definition
A user-defined set of priorities assigned to one or more LN table fields. LN uses the cross-dock order priority definition to generate the cross-dock order system priority.
Note
  • You can use cross-dock order priority definitions for Dynamic cross-docking only.
  • Instead of cross-dock order priority definitions, and dependent on a parameter setting, you can apply planning priority rules to Dynamic cross-docking.
cross-dock restriction definition
A user-defined set of rules that LN uses to determine whether to create cross-dock orders. The rules are checked one after the other. If a valid condition is met, no cross-dock orders will be created. If no rule applies, LN permits creation of cross-dock orders. Cross-dock restriction rules are taken into account regardless of the use of direct material supply.
customer owned
A type of ownership behavior pertaining to goods in inventory or on order. Customer owned goods are goods whose ownership will not change during any of the inbound or outbound warehousing processes.

For example, a customer sent you some components that you, as a subcontractor, will use to manufacture a product for this customer. The customer owns the components while they are stored in your warehouse and throughout all the logistic and production processes involved in manufacturing and delivering the product to the customer.

See also: ownership

cycle counting
The periodical count of the item inventory to verify if the system data is still accurate.
cycle count order
An order generated by LN to count the inventory by stock point at a particular frequency and to subsequently register the counted quantities. A cycle count order consists of an order number and a sequence number indicating the number of counts performed on this order. As a result of the count action, you can adjust the inventory.
delivery code
A reason code that indicates who is to pay for the transportation of the goods.
delivery note
A transport document that provides information on a consignment contained in one truck (or other vehicle) and refers to an order or a set of orders for one consignee at a delivery address. If the truck load contains shipments for various business partners, the load includes more than one delivery note. The information on a delivery note includes the delivery date and address, the customer's name, the contents of the consignment, and so on. In Italy, a delivery note is a legally required document, where it used to be called BAM (Bolla Accompagnamento Merci). Currently it is called DDT (Documento di Trasporto). In Portugal and Spain delivery notes are also used, but there they do not have the same legal status as in Italy.
delivery terms
The terms or agreements concerning the delivery of goods.
demand data
The actual demand that is collected at the point of sales order entry. Each sales order is an instance of actual demand. Therefore, data associated with the sales order is collected.
demand forecast
The level of demand that is expected in future periods.

The demand forecast is based on historical demand data and can be used to determine the optimal safety stock and reorder point.

demand order
An order, usually a sales order or sales schedule, fulfilling the demand of a customer.
direct material supply
A supply method in which (pending) receipts and available inventory on hand are used to meet high-priority demand within a user-specific cluster of warehouses. This supply method can be run either automatically, interactively, or manually, using the Direct Material Supply Distribution (whinh6130m000) session.
Abbreviation: DMS
disposition
Manner in which quarantined manufactured or purchased items or materials are handled, for example by scrapping, reworking or returning to the vendor.
disposition order
An order that LN generates after the user has processed a disposition line. The disposition order is used to carry out a disposition.

The disposition that the user selected to process the disposition line determines whether a disposition order is generated, and if yes, the type of disposition order that is generated:

Disposition optionDisposition order
Scrap

Adjustment order

Return to VendorPurchase return order
Rework (to Existing Specification)Production order
Rework (to New Specification)Production order
ReclassifyItem transfer

 

For the dispositions Use As Is and No Fault Found, no disposition order is generated.

distributed data collection
A method of entering data without the use of the standard GUI. For example, entering data by the use of a remote scanner.
Abbreviation: DDC
dock
A location in a warehouse where goods can be loaded or unloaded.
economic stock
The inventory that is available to be sold.
equipment description code
A code identifying the type of equipment used for the shipment. For example, TL = trailer.
equipment initial
The prefix (or alphabetic part) of the equipment's ID code.
equipment number
The sequencing (or numeric) part of an equipment unit's ID code number.
ESB LN Adapter
Connects the ERP LN application server to the Enterprise Service Bus (ESB). In this fashion, the ESB LN Adapter acts as a dispatcher for inbound and outbound BOD messages.
excess inventory
Inventory for which no demand is present. For example, excess inventory can result from fixed order quantities, when the received quantity exceeds the present demand.

Excess inventory can be:

  • On hand
    Physically present in the warehouse
  • On order
    Present on planned or scheduled receipts
financial warehouse
A warehouse with warehouse type Financial. A financial warehouse is used to show the inventory levels and enable financial processing of owned inventory that is actually stored in a physical, that is, "real," warehouse belonging to another business unit or branch office within the same organization. The owning unit and the unit storing the inventory have their own p & l accountability.
first in, first out (FIFO)
An inventory valuation method for accounting purposes. The assumption is that the oldest inventory value (first in) is the first to be used or sold (first out). However, this method assumes no necessary relationship with the actual physical movement of specific items.

FIFO can also be an outbound method that determines the physical outbound priority of a specific item. The oldest inventory is the first to be issued, taking into account the ordered packaging level, that is leading over the inventory date.

Example

A box containing 10 pieces is ordered and you have the following inventory:

  • 5 pieces, receipt date 01-01
  • 1 box containing 10 pieces, receipt date 05-01
  • 1 box containing 10 pieces, receipt date 10-01
  • 7 pieces, receipt date 15-01

If the outbound priority of the item is FIFO, the box with receipt date 05-01 is issued.

Abbreviation: FIFO
fixed location
A location that is assigned to a specific item. If you link a location to an item, the item is always stored in that location. A fixed location can contain different items.
forecast method
A technique used to forecast the demand for items.

The following forecast methods are available:

  • Moving Average
  • Exponential Smoothing
  • Previous Year's Calculation
  • Last Period's Demand
future ordered quantity
Quantity associated with a sales order detail whose planned delivery date is outside the commitment time fence.
general-level package definition
A package definition that you can use for various items. You can link a general-level package definition to an item to adjust the package definition data for the item. In this way, you create an item-level package definition.
goods received note
A document that lists expected items and their quantities. Dock personnel can use goods received notes to compare against receiving documents provided by the supplier.
goods-received note
The note used to register the quantities received in a warehouse. LN prints the expected quantity on the note.
handling unit
A uniquely identifiable physical unit that consists of packaging and contents. A handling unit can contain items. A handling unit has a structure of packaging materials used to pack items, or is a part of such a structure.

A handling unit includes the following attributes:

  • Identification code
  • Packaging item (optional)
  • Quantity of packaging items (optional)

If you link an item to a handling unit, the item is packed by means of the handling unit. The packaging item refers to the type of container or other packing material of which the handling unit consists. For example, by defining a packaging item such as Wooden Crate for a handling unit, you specify that the handling unit is a wooden crate.

handling unit structure
A description of the way items are packaged by means of handling units.

A handling unit structure includes any of the following elements:

  • Top
    Handling unit that includes the entire structure, such as a pallet.
  • Parent
    Handling unit that includes one or more children, such as a crate on a pallet.
  • Child
    Handling unit that is linked to a parent, such as boxes that are packed in a crate.
handling unit template
One of the elements of a package definition. A handling unit template provides information on the packing materials that must be used to pack items and on the way the packaging materials are structured. The package structure is hierarchical and consists of several nodes that are related in a parent-child fashion. The packaging materials refer to handling units, each node represents a handling unit.

When handling units are generated for the items of a particular order, the handling units are created and structured as defined in the handling unit template of the package definition that is linked to the order.

inbound
A procedure in which received goods are stored in a warehouse.
inbound advice
A list generated by LN that indicates the location where received goods must be stored, taking into account storage conditions, blockings, and so on.
inbound lead time
The time interval between the arrival of the items and the actual storage in the warehouse.
inbound-order line
A warehousing-order line used for the inbound of goods. An inbound-order line gives detailed information about planned receipts and actual receipts.

For example:

  • Item data
  • Ordered quantity
  • Warehouse and location of receipt
inbound priority
The sequence in which inventory locations are considered for storing received goods.
Infor ION
An event-driven and XML-based messaging engine. This is the standard message bus. The message bus and its message standards provide the infrastructure for transporting messages to other application modules in a secure way.
inspection location
A type of inventory location exclusively designated to store items that are eligible for inspection upon receipt.

After the items have passed inspection, they are transferred to:

  • A normal location if they are approved.
  • A quarantine location if they are rejected.

Goods in an inspection location are always considered to be on-hold inventory.

inventory
The goods stored in a warehouse.
inventory adjustment order
A manually entered order to increase or decrease the system inventory.
inventory buffer
A repository where inventory can be reserved for special purposes. A separate order origin (called inventory buffer) is used to do this.
inventory-carrying costs
The costs for holding an item (per inventory unit) in inventory, including costs for interest, storage space, and risk.
inventory commitment
The reservation of inventory for an order without taking into account the physical storage of the goods within the warehouse. Previously referred to as hard allocation.
inventory commitment
The reservation of inventory for an order without taking into account the physical storage of the goods within the warehouse. Previously referred to as hard allocation.
inventory commitment date
The date on which or after which inventory on hand must be reserved for a specific order.
inventory date
A date that is assigned to items when they are stored. You can use inventory dates to retrieve items based on FIFO (First In First Out) or LIFO (Last In First Out), without carrying out extensive lot control.

The meaning of the inventory date is connected to the outbound priority of LIFO, FIFO, or the product expiry date of the item.

With outbound priority LIFO or FIFO, the default for the inventory date is the system date; however, you can overwrite this so that the inventory date does not have to be equal to the storage date. If the item has a particular shelf life, the inventory date is the product expiry date defined for the item.

inventory handling
The way in which the inventory is handled, both physically and in LN, if BOM items or list items are received or issued.

The inventory can be handled:

  • By Main Item.
  • By Component.
inventory level
The inventory quantity that can be available in a warehouse. In VMI or subcontracting scenarios, warehouse supply can be based on inventory levels laid down in contracts between suppliers and customers.
inventory management business partner
The business partner who is responsible for inventory management at a warehouse.
inventory on hand
The physical quantity of goods in one or more warehouses (including the inventory on hold).
Synonym: on-hand inventory
inventory on hold
A quantity of goods that is blocked. On-hold inventory can arise when the location, the lot, the zone, or the stock point is blocked. You can block inventory for various reasons, for example, for inspection or cycle-counting.

If a location has been blocked for all transactions, the blocked quantity is equal to the inventory on hand. You cannot partially block the inventory at a location.

Synonym: on-hold inventory
inventory on order
The planned receipts. The inventory has been received and the inbound advice is generated. However, the advice is not yet released. This quantity is included in the economic stock.
Synonym: on-order inventory
inventory ownership change order
A commission to change the ownership of goods from the supplier, that is, the buy-from business partner, to the own company, if the ownership is time based. See also ownership.

An inventory ownership change order consists of an order header providing general information and one or more order lines providing details about the items involved. In addition, if resulting from the ownership change relocation is required involving adjustments of the handling unit structure, line handling information is also provided.

Time based change orders are generated by users for items due for ownership change. LN uses change orders to generate financial transactions related to the ownership change and to track the whereabouts of inventory.

inventory transaction
Any change in the inventory records.
inventory transaction type
A classification that is used to indicate the type of inventory movement.

The following inventory transaction types are available:

  • Issue
    From warehouse to other entity than warehouse.
  • Receipt
    From other entity than warehouse to warehouse.
  • Transfer
    From one warehouse to another.
  • WIP Transfer
    From one costing work center to another.
inventory turnover
The number of times that an inventory cycles during a year.
inventory unit
The unit of measure in which the inventory of an item is recorded, such as piece, kilogram, box of 12, or meter.

The inventory unit is also used as the base unit in measure conversions, especially for conversions that concern the order unit and the price unit on a purchase order or a sales order. These conversions always use the inventory unit as the base unit. An inventory unit therefore applies to all item types, also to item types that cannot be kept in stock.

inventory valuation method
A method to calculate the inventory value.

The inventory is valued at either its standard cost or its actual receipt price. Because inventory value can change with time, the age of inventory needs to be noted. In LN, the following inventory valuation methods are available:

Valuation Method

inventory variance
The difference between the valuation amount that is recorded after the receipt of goods and the updated value for that particular receipt.

An inventory variance can be created:

  • If the receipt price is changed after the receipt is confirmed
  • If the invoice price differs from the receipt price
  • If a production order is closed and the actual cost differs from the estimated cost
issue
The transaction type that is used to withdraw goods from inventory.
issue price
The price against which goods are issued from the warehouse. The issue price is based on the inventory valuation price plus issuing surcharges.
item-level package definition
A package definition that is defined for a specific item. An item-level package definition is created from a general-level package definition.
item valuation group
An entity that is used to group items for inventory valuation purposes. To define an item valuation group, you must link an item valuation group code to the items that you want to include in the item valuation group. Item valuation groups and warehouse valuation groups are linked, for example, to inventory valuation methods to valuate the item-warehouse combinations included in the warehouse and item valuation groups.
kanban
A demand-pull system of just-in-time production that regulates the supply of items to shop floor warehouses.

Kanban uses standard containers or lot sizes (also called bins) to deliver items to shop floor warehouses. In the shop floor warehouse, two or more bins are available with the same items. Items are only taken from one bin. Typically, if a bin is empty, a new bin is ordered and the items are taken from the (second) full bin. To each bin a label is attached. The line stations use the label to order a full bin with the required items.

Sometimes, not every bin is provided with a label. For example, a label is attached to every second bin. When both bins are empty, the user scans the label of the second empty bin to generate a supply order for both empty bins.

kanban loop
The kanban signals defined for an item and warehouse combination.
kanban signal
A signal used to trigger the creation of a kanban supply order. A kanban signal includes a label code and a supply quantity, and is linked to a warehouse and item combination.

Typically, a kanban signal represents a kanban bin. When the user scans the label code on the empty bin, LN generates a supply order for the item quantity defined for the signal.

A signal can also represent more than one bin. For example, a label is attached to every second bin. When both bins are empty, the user scans the label of the second empty bin to generate a supply order for both empty bins.

kit order
A sales order or warehousing order created using the extended kit handling functionality.
label
A printed piece of paper with information about items, quantities, packaging items and so on. A label often contains bar codes to enable scanning.
last in, first out (LIFO)
An inventory valuation method for accounting purposes. The assumption is that the most recently received value item (last in) is the first to be used or sold (first out). However, this method assumes no necessary relationship with the actual physical movement of specific items.

LIFO can also be an outbound method that determines the physical outbound priority of a specific item. The newest inventory is the first to be issued, taking into account the ordered packaging level, that is leading over the inventory date.

Example

A box containing 10 pieces is ordered and you have the following inventory:

  • 5 pieces, receipt date 01-01
  • 1 box containing 10 pieces, receipt date 05-01
  • 1 box containing 10 pieces, receipt date 10-01
  • 7 pieces, receipt date 15-01

If the outbound priority of the item is LIFO, the box with receipt date 10-01 is issued.

Abbreviation: LIFO
lead-time unit
The unit in which lead time is expressed.

The following lead-time units are available:

  • Hour
  • Day
  • Week
  • Month
list
In LN, an enumeration of components. A list can be a kit, a menu, an option, or an accessory.
load
In LN, all goods and/or shipments carried by one means of transport on a specific date and time and using a specific route.
location
A distinct place in a warehouse where goods are stored.

A warehouse can be divided into locations to manage the available space, and to locate the stored goods. Storage conditions and blocks can be applied to individual locations.

location allocated inventory
Inventory stored in specific warehouses or warehouse locations that is allocated to outbound order lines for which outbound advice is created that is not yet shipped. Also referred to as firm allocation or hard allocation. After the inventory is shipped, that is, has left the warehouse, the allocation is deleted.
location type
The location type indicates the purpose of the location, for example, receipt, inspection, bulk, pick, staging, assembly.
lot
A number of items produced and stored together that are identified by a (lot) code. Lots identify goods.
lot-feature value
Value assigned to a variable lot feature. A shortened version of variable lot-feature value. Such features can have a different value for each project, item, or lot.
lot-for-lot
An ordering process that generates planned orders in quantities equal to the net requirements in each period.
lot item
An item that is subject to lot control.
lot price (lot)
An inventory valuation method for accounting purposes that is used to separately calculate the lot price or standard cost for each lot. The lot price is based on the actual receipt price.
lot selection
The specific conditions that can be established for lot items on order lines.

These conditions are:

  • Any
    The goods to be received or shipped are not subject to specific lot conditions. You can use more than one lot.
  • Same
    You can select any lot for receipt or shipment, but the entire receipt or shipment must have the same lot.
  • Specific
    You can receive or ship only one, specific lot.
lot size
The number of items in a lot.
lot tracking
The ability to trace lots during the logistical process.
lower of cost or market value (LCMV)
A valuation method that compares the inventory value based on one of the inventory valuation methods (see below) with the inventory's market value. If the market value is lower, the entire inventory of a specific item is valued in the balance sheet using the market value.

The following inventory valuation methods can be used to determine the inventory value:

Valuation Method

main warehouse
A warehouse from which goods are shipped that are issued from a specific group of connected warehouses called subwarehouses.
maximum-time interval
A defined period of time in a calendar, for which a resource can be planned.
motive of transport
A reason code that indicates why transportation takes place, for example, Repair, Sales, Transfer, and so on.
moving-average unit cost (MAUC)
An inventory valuation method for accounting purposes.

The MAUC is the average value for each unit of the current inventory. For each new receipt the MAUC is updated.

on-hand inventory
on-hold inventory
on-order inventory
order controlled/Batch
A demand-pull system that regulates the supply of items to shop floor warehouses.

In this supply system, items that are required at a particular line station of the assembly line are called off at an earlier line station, called the trigger-from station. The number of items that is called off depends on what is needed on the assembly line in a specified time fence, called the maximum time interval.

In general, the items that are supplied to the shop floor warehouse by batch, are fast movers and are processed in high volumes. There is no direct link between these items and the assembly orders they are used for. In addition, one warehouse order set can be used to supply the goods needed by several assembly orders.

order controlled/SILS
A demand-pull system that regulates the supply of items to shop floor warehouses in the sequence in which they are needed.

In this supply system, items that are required for a specific assembly order, and at a particular line station of the assembly line, are called off at an earlier line station, called the trigger-from station. The number of items that is called off depends on what is needed for specific assembly orders in a specified time fence, called the maximum time interval.

In general, the items that are supplied to the shop floor warehouse by SILS, are fast movers and are processed in high volumes. There is a direct link between these items and the assembly orders they are used for. In addition, one warehouse order set can only supply the goods needed by one assembly order.

order controlled/single
A demand-pull system that regulates the supply of items to shop floor warehouses.

In this supply system, a specific production order for a specific product pulls the required items from a supply warehouse to the shop floor warehouse. A direct link is established between the production order for which the items are required, and the warehousing order that regulates the supply of the required items to the shop floor warehouse.

order horizon
The time interval for which demand (actual and forecasted) is taken into account to determine the net order quantity.

LN uses the following formula to calculate the order horizon:

factor * lead time (= LT + ST) + constant
Note
  • The factor can be used to make sure that ordering will be in time.
  • The constant can be used to:
    • Reduce the risks that result from unstable lead times. (SIC)
    • Limit the order horizon to the duration of a shift, in order to replenish only stock for the period of the shift-work. Then the factor must be zero. (TPOP)
order set
The order set groups order lines of the same order.

The order lines are grouped if the following attributes match:

  • Ship-from partner
  • Ship-to partner
  • Ship-from address
  • Ship-to address
  • Carrier
  • Shipping date
  • Original company
order-type priority
The priority fields show the priority in which the various types of outbound advice are processed.

Each advice type can only appear once in the list of priorities. Whenever you make a change in the priorities, a corresponding change appears elsewhere in the list.

Example

If priority 4 contains advice type sales and you change it to contain advice type purchase, the two advice types swap places in the priorities list.

order unit
The unit that the customer uses to order goods. Sometimes, delivery takes place in other units because the goods are not available in the order unit in the warehouse.
outbound
The act of retrieving goods from a warehouse.
outbound advice
A list generated by LN that advises you the location and lot from which goods must be picked and possibly issued, taking into account factors such as blocked locations and the outbound method.
outbound lead time
The time interval between taking the items out of the warehouse and the departure of the carrier on which the items are placed.
outbound method
The method by which LN determines the order of issuing items. The outbound method can be LIFO (last received items first), FIFO (oldest items first), or By Location (based on the warehouse location's outbound priority).
outbound-order line
A warehouse-order line that is used to issue goods from a warehouse.

An outbound-order line gives detailed information about planned issues and actual issues, for example:

  • Item data.
  • Ordered quantity.
  • Warehouse from where the goods are issued.
outbound priority
The information that determines the sequence of locations from which an item must be retrieved.
ownership
Indicates if, and at which point in the supply chain, the ownership of goods changes from the supplier to the customer. Ownership changes also occur between departments or business units within an organization, which is referred to as internal ownership. When the ownership changes, payment is due.

In traditional, non-VMI scenarios, the ownership of an item changes from the supplier to the customer after the customer has received the item from the supplier. The customer must pay for the item on receipt of the goods.

In various subcontracting scenarios, ownership will not change during any of the inbound or outbound warehousing processes. In such cases, the ownership is customer owned.

In vendor managed inventory (VMI) scenarios, the ownership can be consigned. If the ownership is consigned, the ownership change is either time based or consumption based.

  • Consumption based
    The customer issues the goods to sell them or to consume them
  • Time based

    Some time after:

    • The customer receives the goods
    • The last issue or receipt of the goods

For time based ownership change, the period of time is laid down in the contract between the customer and the supplier.

ownership record
An ownership record specifies the owner of the items listed on any of the following objects:
  • Receipt line
  • Outbound advice line
  • Shipment line
  • Cycle counting order line
  • Adjustment order line

These objects can include items from various owners, and some of the items can be company owned. A separate ownership record is manually or automatically created for each owner. For example, if a receipt line has inventory for two owners, two ownership records are present for the receipt line.

package definition
A particular configuration of items and their packaging. A package definition for an item can, for example, be the following: a pallet contains 12 boxes and each box contains 4 pieces.
packaging item
The containers or supports that are used to hold and move goods within manufacturing, distribution processes, and, specifically, within the warehouse. For example: boxes, pallets.
packaging reference A
A package building criterion, which refers to the distribution zone or routing code.
packaging reference B
A package building criterion, which refers to the consumption point or point of destination.
packing list
A document that shows all shipments of a load.
packing slip
An order document that shows in detail the contents of a particular package for shipment. The details include a description of the items, the shippers or customers item number, the quantity shipped, and the inventory unit of the shipped items.
Pay on Use
picking
The process of withdrawing from inventory the components to make the products or the finished goods to be shipped to a customer.
picking list
A document that lists the material to be picked for manufacturing or shipping orders. This document is used by operating personnel to pick manufacturing or shipping orders.
See: picking
picking mission
A specific picking round performed by one employee or vehicle.
See: picking
picking sequence
A sequence number used to print the picking list.
pick location
The inventory location designated for order picking purposes. A pick location is mainly used for the outbound of small quantities and/or containers that can be replenished by bulk locations.
planned delivery date
The date for which delivery of a shipment is planned.
planned inventory transactions
The expected changes in the inventory levels due to planned orders for items.
planned receipt
An anticipated receipt that corresponds to an open purchase order or open production order.
planned receipt date
The date on which the goods are expected to arrive in the destination warehouse.
planning priority rule
A user-defined condition that you can apply to a specific situation and a specific order, and that results in a priority figure when applied to a specific order. Aggregating the priority figures of all applicable priority rules results in a planning priority, which in turn is used as the system priority.
Note
  • For cross-dock orders of type Direct Material Supply, you can only use planning priority rules.
  • In case of Dynamic cross-docking, you can use either planning priority rules or cross-dock order priority definitions.
position (number)
The warehousing order line number. If the order is generated by a package other than Warehousing, this number is the same as the original order line number.
product expiry date
The best-before date; the date up to which you can keep the goods.
production-order advice
A recommendation based on the economic stock and the reorder point of an item. Production order advices must be confirmed and transferred to convert them into actual production orders.
projected on hand
The inventory on hand projected into the future, taking into account the planned inventory transactions.

LN calculates the projected on hand as follows:

projected on hand = I - PI + PR

IInventory on hand
PIPlanned issues
PRPlanned receipts
Note

You can view the planned inventory transactions in the Planned Inventory Transactions (whinp1500m000) session.

purchase order advice
A recommendation based on the economic stock and the reorder point of an item. Purchase order advices must be confirmed and transferred to convert them into actual purchase orders.
qualified demand
The corrected demand during a specific period. The qualified demand is determined by the sales orders during that period.

The qualified demand is used for forecasting purposes and is, therefore, corrected for exceptional demands. Therefore, if the demand forecast is calculated, the exceptional demands are not taken into account.

quarantine inventory
Inventory sent to a quarantine warehouse or quarantine location after initial rejection during inbound or outbound inspection, or upon completion of an operation during production.

At the quarantine warehouse or location, the final disposition of the inventory is determined:

  • Use As Is
  • No Fault Found
  • Scrap
  • Return to Vendor
  • Rework (to Existing Specification)
  • Rework (to New Specification)
  • Reclassify
Synonym: Rejected inventory
quarantine location
A type of warehouse location in which goods initially rejected during warehousing inspection or production are stored for further examination to determine their disposition.
reason for blocking
The reason of the blocking. This reason can be linked to a blocking of a zone, location, lot, stock point, or serialized item.
reason for rejection
The reason why received goods did not pass the inspection.
receipt
The physical acceptance of an item into a warehouse. A receipt registers: received quantity, receipt date, packing-slip data, inspection data, and so on.
receipt date
The date on which the items are actually received in the destination warehouse.
receipt number
The sequence number assigned to every individual receipt of goods.
receipt price
The price against which goods are received in the warehouse.
receiving location
The location in which the received goods are placed while they await the generation of an inbound advice.
reconciliation
The process of comparing inventory levels between the WMS and LN, analyzing the results, and processing any detected differences, preferably by correcting the related orders.
re-executable activity
A session or manual step that can be executed more than once as part of a warehousing procedure. For example, a print session.
Rejected inventory
reorder point
A set inventory level where, if the total stock on-hand plus total on-order falls below that point, action is taken to replenish the stock.
replenishment
The procedure in which inventory is transferred from one (location in the) warehouse to another because insufficient inventory is available at the destination (location of the) warehouse.
replenishment matrix
The relations that define the replenishment of items from bulk locations or bulk zones to pick locations or pick zones in a warehouse.
replenishment order
An order that transfers goods between two physical locations/warehouses.
routing sequence code
A priority code or number defining the position of the carrier in the sequence of carriers used for a shipment. Where more than one carrier is used, one must be first, the next is second, and so on.
run number
A code assigned to a group of warehousing order lines when they are advised. LN assigns or generates a run number if a user does not manually enter or select a run number while he generates inbound or outbound advice for a group of warehousing order lines. This is the case if, for example, a user generates outbound advice by means of the Generate Advice command in the Outbound Order Lines (whinh2120m000) session. LN assigns run numbers by user. For example, all inbound advice generated by user A on a particular day obtain a particular run number, and those generated by user B obtain another run number. For outbound movements, the user can release outbound advice, generate picking lists, and confirm picking lists by run. For inbound movements, the user can generate storage lists and confirm storage lists by run.
safety stock
The buffer inventory necessary to meet fluctuations in demand and delivery lead time. In general, safety stock is a quantity of inventory planned to be in inventory to protect against fluctuations in demand or supply. In the context of master production scheduling, safety stock is the additional inventory and capacity planned as protection against forecast errors and short-term changes in the backlog.
seal number
The number on the shipments seal.
sequence number
The sequence number of the warehousing order line.
serial price
An inventory valuation method for accounting purposes that is used to separately calculate the price or standard cost for each low volume serialized item. The serial price is based on the actual receipt price. For more information, refer to Low volume scenario.
serial-shipping container code (SSCC)
A code that is used to identify a handling unit. SSCC is a non-significant number with a fixed length (18 digits), which does not contain any classifying elements.
Abbreviation: SSCC
shelf life
The amount of time an item may be held in inventory without deterioration in quality.
ship-from code
A code used, together with the ship-from type, to identify the exact source of a warehousing order.
ship-from type
The ship-from type is used, together with the ship-from code, to identify the exact source of a warehousing order.

The ship-from type can have the following values:

  • Business Partner
  • Warehouse
  • Work Center
  • Project
shipment
All goods that are transported to a specific address on a specific date and time by using a specific route. An identifiable part of a load.
shipment line
An individual line of detail in a shipment.
shipment notice
shipment reference
Identifies a group of items that are called off at the same time.
shipping
The function that provides facilities for the outgoing shipment of parts, products, and components. Shipping includes packaging, marking, weighing, and loading for shipment and the printing of the shipment documents.
shipping container
A subdivision of a load that contains shipments. The packaging items defined for a container determines the type of container.
shipping manifest
A shipping document that describes the content of the shipping structure consisting of loads, shipments, and, if implemented, containers, created for a warehousing order or order set. The shipping structure can contain separate items or items included in BOM or kit structures.
ship-to code
A code used, together with the ship-to type, to identify where goods are shipped to.
ship-to type
The ship-to type is used, together with the ship-to code, to identify where goods are shipped to.

The ship-to type can have the following values:

  • Business Partner
  • Warehouse
  • Work Center
  • Project
slow-moving analysis
A method of analyzing the inventory, based on the turnover of items. Items with a low turnover (slow moving items) have a relatively low rate of usage compared to the normal amount of inventory carried.
slow-moving percentage
The limit up to which an item is identified as a slow moving item.
staging location
A shipping dock in the warehouse where items are held just before they are placed on any means of transport for shipment.
standard cost

The standard cost including any surcharges or discounts, is used as the firm value against which an item is valuated in the inventory. Standard cost is also an inventory valuation method for accounting purposes. Valuation Method.

stock point
The smallest inventory level that can be registered in LN.

The stock point is defined by the following data:

  • Warehouse
  • Location: only if you have locations
  • Item
  • Inventory date: important if you work with LIFO or FIFO
  • Lot: only if the item is low volume lot controlled
stock point details
The lot number, serial number, inventory date, and/or effectivity unit of an item.
storage condition
A condition that must be satisfied to store goods. Storage conditions must be linked to item(group)s and to warehouse locations to prevent storage of items at unsuitable locations.

Storage can be performed in two ways:

  • By item, by excluding unsuitable locations
  • By location, by excluding undesirable items
storage list
The document that states the warehouse or locations where goods are to be stored. A storage list is used by warehouse personnel to place the received items in the right location within the warehouse.
storage mission
A specific storage round carried out by one employee or one vehicle.
storage unit
The unit in which the quantity of goods stored is expressed.
Example

Storage unit: box

Inventory unit: liter

subkit
A phantom item that represent a number of component items or a main item for a (sub-) assembly.
subwarehouse
A warehouse from which items are issued that will be shipped from the related main warehouse.
supply order
An order, usually a production order or a purchase order, that contains a quantity of a particular item needed to fulfill a demand order.
supply quantity
The quantity that must be supplied to a shop floor warehouse.

In a KANBAN environment:

  • The signal supply quantity is the quantity supplied for a kanban signal by a kanban supply order.
  • The total supply quantity is the aggregated supply quantity of the signals defined for an item and warehouse combination.
supply sequence
The sequence in which the items must be supplied to the shop floor warehouse.
supply system
A system that is used to coordinate the timely supply of goods to the production lines or assembly lines.
supply type
The type of the source that supplies the items.

LN distinguishes three supply types:

  • Supplier
  • Warehouse
  • Work Center
supply warehouse
The warehouse that supplies goods and materials to the shop floor warehouse.
system priority
A priority that is based on the planning priority rules or the cross-dock order priorities. LN uses the system priority along with the user priority to determine a cross-dock order's priority. LN generates cross-dock order lines and, during inbound advice, advises cross-dock order lines for cross-dock orders with the highest priority first.
Note
  • If you use planning priority rules, in case of Direct Material Supply and, optionally, in case of Dynamic cross-docking, the system priority of generated cross-dock orders matches the planning priority.
  • For cross-dock orders of type Direct Material Supply, the system priority is used as default value for the user priority.
  • The user priority is taken into account before the system priority.
time-phased order point (TPOP)
A push system that regulates the time-phased supply of items to warehouses.

The quantity of items that is supplied to the warehouse depends on:

  • The available inventory in the warehouse.
  • The inventory that is planned to be delivered to the warehouse within the specified order horizon.
  • The specified safety stock, optionally adjusted to the seasonal factor for the current period, for the item and warehouse.

If the available inventory plus the planned inventory are below the reorder point, the inventory in the warehouse is replenished.

Abbreviation: TPOP
topkit
An item representing a group of items that make up a set, for example, an airplane modification set consisting of the materials and tools to convert a passenger plane to a freight carrier plane, or the end-item - the highest level - of a bill of material (BOM) of a manufactured item. A topkit consists of various subkits.
transaction date
The date and time on which a transaction was processed. In case of backdating, the transaction date precedes the actual log date.

For example, you can backdate a receipt. The receipt has receipt date July 12. If you confirm the receipt on July 15, the transaction date of the receipt is July 12 and the creation date or actual log date is July 15. The financial entries for the receipt are booked on the transaction date.

transfer
The transfer of goods from one warehouse to another (possibly including such activities as repacking).
transfer order
A type of warehousing order that is created to register inventory transactions from an issuing warehouse to a destination warehouse, or between two locations in a warehouse. A transfer order can be created manually or be generated by other packages or modules in LN. A transfer order has transaction type Transfer.
Synonym: warehouse transfer, warehousing transfer order
trigger-from station
The line station from which the supply of items is triggered.
user priority
A priority that is entered by the user. LN uses the user priority along with the system priority to determine a cross-dock order's priority. LN will generate cross-dock order lines and, during inbound advice, advise cross-dock order lines for cross-dock orders with the highest priority first.
Note

The user priority is taken into account before the system priority.

variable lot feature
The lot features that apply to some lots but not to others and are, therefore, not defined in the general lot data but are assigned to individual items.
vendor managed inventory (VMI)
An inventory management method according to which the supplier usually manages the inventory of his customer or subcontractor. Sometimes, the supplier manages the supply planning as well. Alternatively, the customer manages the inventory but the supplier is responsible for supply planning. Inventory management or inventory planning can also be subcontracted to a logistics service provider (LSP).

The supplier or the customer may own the inventory delivered by the supplier. Often, the ownership of the inventory changes from the supplier to the customer when the customer consumes the inventory, but other ownership transfer moments occur, which are laid down by contract.

Vendor-managed inventory reduces internal costs associated with planning and procuring materials and enables the vendor to better manage his inventory through higher visibility to the supply chain.

VMI warehouse
A warehouse for which the supplier of the stored goods performs one or both of the following tasks: manage the warehouse, including activities surrounding inbound and outbound processes, or plan the supply of the goods in the warehouse. The supplier may also be the owner of the inventory in the warehouse. The warehouse is usually located at the customer's premises.
warehouse address
The address of the warehouse or place where the goods must be delivered.
warehouse-from
The warehouse from which the issue takes place.
warehouse order
warehouse supply structure
Defined for direct material supply, a user-specific cluster of warehouses, which consists of one or more supply warehouses and a number of destination warehouses.
warehouse-to
The warehouse in which the receipt will take place.
warehouse transfer, warehousing transfer order
warehouse valuation group
An entity that is used to group warehouses for inventory valuation purposes. To define a warehouse valuation group, you must link a warehouse valuation group code to the warehouses that you want to include in the warehouse valuation group. Warehouse valuation groups and item valuation groups are linked, for example, to inventory valuation methods to valuate the item-warehouse combinations included in the warehouse and item valuation groups.
warehousing
All actions related to the receipt, storage, treatment, and issuing of goods within a warehouse.

The Warehousing package coordinates all transactions of goods in the warehouses by using warehousing orders. This relates to inbound and outbound of goods, transfer of goods, cycle counting of goods, ABC analysis, inventory commitments, and various kinds of inventory reporting.

warehousing assembly order
A commission to assemble the components of an end item.
warehousing order
An order for handling goods in the warehouse.

A warehouse order can be of the following inventory-transaction types:

  • Receipt
  • Issue
  • Transfer
  • WIP Transfer

Each order has an origin and contains all the information required for warehouse handling. Depending on the item (lot or non-lot) and warehouse (with or without locations), lots and/or locations can be assigned. The order follows a predefined warehousing procedure.

Note

In Manufacturing a warehousing order is often called a warehouse order.

Synonym: warehouse order
warehousing-order line
warehousing-order number
The code of the warehousing order. LN uses the series specified in the Series field of the Warehousing Orders (whinh2100m000) session to generate the order number. If the warehousing order is generated for an order from a package other than Warehousing, this number corresponds to the original order number and is not based on the series specified in the Series field.
warehousing order type
A code that identifies the type of a warehousing order. The default warehousing procedure that you link to a warehousing order type determines how the warehousing orders to which the order type is allocated are processed in the warehouse, although you can modify the default procedure for individual warehousing orders or order lines.
warehousing procedure
A procedure to handle warehousing orders and handling units. A warehousing procedure comprises various steps, also called activities, that a warehousing order or a handling unit must take to be received, stored, inspected, or issued. A warehousing procedure is linked to a warehousing order type, which in turn is allocated to warehousing orders.
zero receipt
A receipt line with quantity zero.
zone
A part of the warehouse that can be assigned to specific employees or vehicles. Each location can be assigned to a zone.