To determine the inventory tracking levels for inventory transactions

An inventory tracking unit is created or updated if an inventory transaction, such as a receipt into the warehouse or a consumption, causes inventory to be moved outside the location or ownership inventory tracking levels defined in the Inventory Tracking Parameters (tcitu0100m100) or Inventory Inventory Tracking Parameters by Country (tcitu0110m000) sessions.

To determine whether an inventory transaction is inside or outside the location and ownership inventory tracking levels, LN checks various data present on the inventory transactions.

For most inventory transactions, LN uses the logistic companies and warehouses present on the transactions to retrieve this data:

  • Sites
  • Countries
  • Enterprise units
  • Financial companies
  • Tax registration codes

For these types of transactions, this data is used to determine the inventory tracking levels:

  • Purchase orders for cost and service items, for which the Release Purchase Orders to Warehousing (tdpur4246m000) activity is not included in the purchase order procedure.

    The inventory tracking location level is Country or Logistic Company and the inventory tracking ownership level is Financial Company for cost and service items. These settings are fixed regardless of the parameter settings.

    The country is derived from the ship-to address specified on the purchase order line. The logistic company is derived from the purchase order, and the financial company is derived from the purchase office.

  • Sales orders for cost and service items, for which the Release Sales Orders to Warehousing (tdsls4246m000) activity is not included in the order procedure.

    The inventory tracking location level is Country or Logistic Company and the inventory tracking ownership level is Financial Company for cost and service items. These settings are fixed regardless of the parameter settings.

    The ship-from address is used to determine the country. The financial company is retrieved from the sales office.

  • Direct deliveries

    For direct deliveries, the inventory tracking location level is Business Partner, and the inventory tracking ownership level is Business Partner. The business partner information is taken from the order.

  • Balancing orders

    For the consumption side, the inventory tracking location and ownership levels are taken from the existing inventory tracking units.

    For the receipt side, the entire warehousing inventory is aggregated within the location level.

    For each warehouse in an inventory tracing unit, the ownership level is the same, otherwise the warehouse would belong to another inventory tracking unit.

    Therefore, the ownership level of any of the warehouses in which inventory is available is used as the ownership level of the balancing order.

  • Quarantine orders

    The inventory tracking location level is Warehouse, and the inventory tracking ownership level is Enterprise Unit for quarantine orders. These are fixed settings.

    This is because quarantine Inventory is intrinsically linked to the warehouse.

    Any inventory movement that causes the warehouse to change results from processing a disposition on the quarantine order. When the quarantine inventory is processed and returned to normal inventory, the location and ownership levels defined in the Inventory Tracking Parameters (tcitu0100m100) or Inventory Tracking Parameters by Country (tcitu0110m000) sessions apply.

  • Tax registration

    The tax registration is retrieved from this data:

    • The financial company of the warehouse and the country of the address of the warehouse if the Registration by Tax Country check box is selected in the Global Registration Parameters (tctax2100m000) session.
    • If multiple registration types are present, the registration for the default registration specified in the registration Global Registration Parameters (tctax2100m000) session is used.