adjustment order

A warehouse order created specifically to adjust inventory where a variance has occurred. An adjustment order adjusts inventory and creates financial transactions.

appropriate menu

Commands are distributed across the Views, References, and Actions menus, or displayed as buttons. In previous LN and Web UI releases, these commands are located in the Specific menu.

country of origin

The country in which an item or a component is produced. In some countries, and for some items, it is a legal obligation to print the country of origin on labels and various types of documents when receiving or issuing the item or component.

In LN, Country of Origin is also the name of the global trade concept that encompasses the functionality that supports the use of the country of origin throughout inbound and outbound inventory movements.

direct delivery

The process in which a seller orders goods from a buy-from business partner, who must also deliver the goods directly to the sold-to business partner. By means of a purchase order that is linked to a sales order or a service order, the buy-from business partner delivers the goods directly to the sold-to business partner. The goods are not delivered from your own warehouse, so Warehousing is not involved.

In a Vendor Managed Inventory (VMI) setup, a direct delivery is achieved by creating a purchase order for the customer warehouse.

A seller can decide for a direct delivery because:

  • There is a shortage of available stock.
  • The ordered quantity cannot be delivered in time.
  • The ordered quantity cannot be transported by your company.
  • Costs and time are saved.

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.

FIFO

inventory tracking unit

Also known as ITU.

A part of an inventory that has these attributes in common:

  • Item
  • Available item quantity
  • Warehouse
  • Owner

  • Receipt properties, such as:

    • Country of origin
    • Receipt line data

The required receipt properties depend on the Global trade concepts and related parameter settings implemented in your organization. Currently, only the Country of Origin concept is supported.

Inventory tracking units are used to track items throughout inbound and outbound inventory movements.

lot

A number of items produced and stored together that are identified by a (lot) code. Lots identify goods.

low volume scenario

This scenario is used for expensive lot-controlled and serialized items produced and handled in relatively small quantities that require intensive tracking throughout the warehouse flow.

During receipt in the warehouse, lot numbers, serial numbers, and other stock point details are consolidated in an individual receipt line if the Consolidate Stock Points in one Receipt Line check box is selected in the Inventory Handling Parameters (whinh0100m000) session. If this check box is cleared, an individual receipt line is created for each lot number and serialized item and, either manually or automatically, a lot number or a serial number is allocated.

In this scenario, lot numbers and serialized items are individually stored in inventory. For each inventory transaction, such as a receipt, transfer, or an issue, the inventory records of the lot numbers and the serialized items are updated.

When issued from the warehouse, the lot numbers, serial numbers, and other stock point details are consolidated in an individual shipment line if the Consolidate Stock Points in one Shipment Line check box is selected in the Inventory Handling Parameters (whinh0100m000) session. If this check box is cleared, for each lot number and serialized item LN creates an individual outbound advice line and, if applicable, a shipment line, and allocates a lot number or a serial number.

site

A business location of an enterprise that can maintain its own logistical data. It includes a collection of warehouses, departments and assembly lines at the same location. Sites are used to model the supply chain in a multisite environment.

These restrictions apply to sites:

  • A site cannot cross countries. The warehouses and departments of the site must be in the same country as the site.
  • A site is linked to one planning cluster. Consequently, all warehouses and work centers of a site must belong to the same planning cluster.
  • A site is linked to one logistic company.

You can link a site to an enterprise unit or an enterprise unit to a site.

If an enterprise unit is linked to a site, the entities of the site belong to the enterprise unit. Conversely, if a site is linked to an enterprise unit, the entities of the enterprise unit belong to the site.

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