The inventory-tracking consumption selection process

An ITU consumption is used to consume inventory from inventory tracking units (ITUs) that are selected during the outbound process. The ITUs are automatically or manually selected for consumption.

The ITUs are selected automatically, and consumptions are created for the selected ITUs when outbound advice is generated, if the criteria for automatic ITU selection are met.

Automatic selection

If exactly one ITU with sufficient available inventory is present, this ITU is automatically selected. If multiple ITUs exist for which physical traceability is not required, these ITUs are consumed based on the first in, first out (FIFO) method.

Physical traceability is controlled by the Physical Traceability Required parameter in theInventory Tracking Parameters (tcitu0100m100) session.

Manual ITU selection

If the ITUs cannot be selected automatically, they must be manually selected. For example, if multiple ITUs are available and physical traceability is required, the inventory tracking units cannot be selected automatically.

The availability of the picking list activity in the outbound procedure and various parameter settings in the Inventory Tracking Parameters (tcitu0100m100) session determine when you must manually select the ITUs.

Manual ITU selection is required when generating the picking list or, if picking lists are no part of the outbound procedure, when generating the outbound advice, if these settings apply:

  • The Consumption Selection Moment parameter is set to Before Picking
  • The Picking List Allowed without Consumption check box is cleared.

Manual ITU selection is required when confirming the picking list or releasing the outbound advice if these settings apply:

  • The Consumption Selection Moment parameter is set to Before Picking and the Picking List Allowed without Consumption check box is selected, or:
  • The Consumption Selection Moment parameter is set to Confirm Picking. The setting of thePicking List Allowed without Consumption check box is irrelevant in the latter case.

Manual ITU selection is performed in the Inventory Tracking Unit Selection (tcitu3600m100) session. This session is displayed automatically if the ITUs cannot be manually selected.

Update ITU

You can update the ITU selection when the picking list is confirmed or until the shipment is frozen.

For example, if ITUs were selected during an earlier step but since then other ITUs have been created on account of new receipts, the ITU selection process must be performed again.

Selecting or updating ITUs during the confirm picking step is done in the outbound advice via the consumptions linked to the outbound advice.

To select or update ITUs during the freeze shipment step, select the Inventory Tracking Unit Selection option on the Actions menu of the Shipment Lines (whinh4131m000) session.

Negative inventory

The ITUs are selected for consumption only when the required quantity is available in the issuing warehouse. The quantity can be available in one or more ITUs.

If negative inventory is not supported, no consumption and thus no issuing can be performed in case of insufficient inventory.

If negative inventory is supported and issuing inventory results in negative inventory, you can create inventory tracking units with negative issuing quantities. See Negative inventory in inventory tracking for details.

ITU consumptions

After the ITUs have been selected, LN creates the ITU consumptions. An ITU consumption shows the outbound advice for which the inventory is to be issued and the selected ITU. The ITU, in turn, shows the quantity to be consumed as specified on the ITU consumption.

The ITU is updated by the ITU consumption with the actual consumed quantity when the goods are issued and the actual inventory in the warehouse is decreased.

This is done when the shipment is confirmed. If shipments are not used, for example, in production issues, this is done when the picking list is confirmed, or if picking lists are not used, after the release of the outbound advice.

For other processes that consume inventory the ITU selection functionality is identical.

Consumption details are displayed in the Inventory Tracking Consumption Details (tcitu3115m000) session.

Consumptions are selected based on the stock point that is to be consumed. The selected inventory along with the selected inventory tracking unit result in a ITU consumption stock point detail.

Based on this data, the confirmation of the consumption can be performed and the follow-up processes can determine what is actually consumed from an ITU perspective without consulting the inventory tracking units.