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.

A set of consecutive line stations in which FAS (Final Assembly Schedule) items are manufactured. The items are manufactured by passing the items from line station to line station and by carrying out operations at each line station. An assembly line is subdivided into a number of line segments separated by buffers. An assembly line can be either a main line or a supplying line.

A list of all parts, raw materials, and subassemblies that go into a manufactured item and show the quantity of each of the parts required to make the item. The BOM shows the single-level product structure of a manufactured item.

A business related object, such as a purchase order or an organizational unit. A business object has information stored in the business object attributes, such as the purchase order number or the organizational unit name. A business object also contains a set of actions, known as business object methods, that can manipulate the business object attributes, such as Create Purchase Order and List Organizational Units.

From a development perspective, a business object is a collection of tables, and functions that manipulate these tables, implemented simultaneously during the development phase. A business object is identified by the combination of a package code, module code, and business object code.

A work center of the type Costing that is used to determine the enterprise unit for a project, or production order and also has an administrative function.

A cost component is a collection of cost objects with a certain characteristic. A cost component does not depend on the cost type, therefore, for example, a project can be monitored from another dimension. For example, all the costs that refer to electrical work, for example, cable and installation work, are visible if the applicable cost objects are linked to the cost component Electrical work.

A company's organizational unit that carries out a specific set of tasks, for example, a sales office or a purchase office. Departments are assigned number groups for the orders they issue. The department's enterprise unit determines the financial company to which the financial transactions that the department generates are posted.

A person who works at your company who has a specific function such as sales representative, production planner, buyer, or credit analyst.

A financially independent part of your organization that includes entities such as departments, work centers, warehouses, and projects. The enterprise unit's entities must all belong to the same logistic company, but a logistic company can contain multiple enterprise units. An enterprise unit is linked to a single financial company.

When you carry out logistic transactions between enterprise units, the resulting financial transactions are posted to the financial companies to which each enterprise unit is linked.

A separate and independent building block for a planning cluster, site, or enterprise unit. For example, warehouse, work center, employee, sales department, purchase department, project, customer, supplier, financial company.

A generic item with the FAS (Final Assembly Scheduling) order system.

FAS items are produced in a mixed model flow process on an assembly line.

A company that is used for posting financial data in Financials. You can link one or more enterprise units from multiple logistic companies to one financial company.

An attribute that includes the intercompany trade details for an intercompany trade scenario. An intercompany trade agreement is linked to an intercompany trade relationship, together with the intercompany trade scenario.

For the applicable intercompany trade scenario and trade relationship, an intercompany trade agreement:

• Determines whether internal invoicing is used.
• Determines whether intercompany trade orders must be approved before they can be processed.
• Includes the transfer pricing rules that determine the amounts of the intercompany trade transactions.
• Determines the amounts of the internal invoices, if internal invoicing is specified.

Example

Sales office S1 and warehouse W1 are part of organization A, but are located in different countries. To fulfill a sales order to an external customer, S1 instructs W1 to deliver the goods to the customer. W1 sends an internal invoice to S1 to cover the costs for the goods and the delivery. The amount of the internal invoice is based on the sales order price.

An attribute consisting of a code and a description that is used to create groups of entities or enterprise units. To create a group, a number of entities or enterprise units is linked to an intercompany trade classification. These groups can be used to define intercompany trade relationships.

Example

A large international organization includes these enterprise units:

In Europe

• UK
• France
• Belgium

In Asia

• India
• China
• Japan

Trade classification Europe is linked to the European enterprise units and trade classification Asia is linked to the Asian enterprise units. You can set up trade relations, for example to define different trade agreements in Europe and Asia, such as:

• Asia to Europe
• Europe to Asia
• Asia to Asia
• Europe to Europe

A commission to buy, sell, or transport goods, or render services between organizational units that belong to the same organization.

For example, a sales office and a warehouse belong to the same organization. The sales office instructs the warehouse to deliver goods to an external customer to fulfill a sales order. The warehouse incurs costs for the goods delivered and the sales office is indebted to the warehouse.

An intercompany trade order consists of a header and transaction lines. The header data include the organizational units involved and the applicable transfer pricing rules. The transaction lines display the amounts of the individual items and the dates and times. Depending on the transfer pricing rules, some pricing details are maintainable.

A "from and to" relationship between two parts of an organization. When an intercompany trade relationship is defined, the transactions between the from and the to-part of the relationship are regarded as intercompany trade. Consequently, specific cost and revenue bookings are posted for the from and the to-part.

The from-part incurs costs for goods delivered or services rendered to the to-part. The to-part is indebted to the from-part. The from-part invoices the to-part to be compensated for the costs incurred, if specified in the intercompany trade agreement.

The parts constituting an intercompany trade relationship can be:

• A financial company
• An enterprise unit
• An entity

A trade relationship between two parts applies to the underlying entities linked to these parts. For example, a trade relationship between two enterprise units applies to the entities linked to these enterprise units.

An intercompany trade relationship is linked to one or more intercompany trade agreements. In turn, each intercompany trade agreement is linked to an intercompany trade scenario. In this way, transfer pricing rules are defined for each trade scenario that is linked to the trade relationship. The transfer pricing rules determine the amounts of the intercompany trade transactions and, if specified, the internal invoices.

A business process, such as External Material Delivery Sales, involving two parts of an organization defined as entities. An intercompany trade scenario is linked to an intercompany trade agreement. The intercompany trade scenario and the intercompany trade agreement are linked to an intercompany trade relationship.

Example

The entities sales office S1 and warehouse W1 are part of organization A, but they are located in different countries. To fulfill a sales order to an external customer, S1 instructs W1 to deliver the goods to the customer. W1 sends an internal invoice to S1 to cover the costs for the goods and the delivery. The amount of the internal invoice is based on the sales order price.

A business partner that represents an enterprise unit of the same logistic company. The use of internal business partners allows you to model the goods flow between enterprise units and the corresponding financial relations, such as invoicing and pricing agreements. You must define all business partner roles for an internal business partner.

The labor rate code, defined in the Labor Rate Codes (tcppl0190m000) session in People. A sales rate and cost rate can be specified in this labor rate code.

You can assign labor rates on a wider scale to, for example,

• A service department, for all work done by the service department.
• An installation group, for all work carried out on the installation group.

In the Service Order Parameters (tssoc0100m000) session, default labor rate search paths can be set for the following:

• Estimated sales rate
• Estimated cost rate
• Actual sales rate
• Actual cost rate

The classification of work performed, and the time of day at which the work is performed (either normal working hours or overtime). Based on the kind of work and the hour type, you can use labor types to specify surcharges so that LN can calculate the actual labor costs in People.

An LN company used for logistic transactions, such as the production and transportation of goods. All the logistic data concerning the transactions is stored in the company's database.

One of a series of steps in a routing that are carried out successively to produce an item.

The following data is collected during a routing operation:

• The task. For example, sawing.
• The machine used to carry out the task (optional). For example, sawing machine.
• The place where the task is carried out (work center). For example, woodwork.
• The number of employees required to carry out the task.

This data is used to compute order lead times, to plan production orders and to calculate standard cost.

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.

A department in your organization that is responsible for buying the materials and services required by your organization. You assign number groups to the purchase office.

A department that is identified in the company business model to manage the business partner's sales relations. The sales office is used to identify the locations that are responsible for the organization's sales activities.

A group of order numbers or document numbers starting with the same series code.

Series identify orders with certain characteristics. For example, all sales orders handled by the large accounts department start with LA (LA0000001, LA0000002, LA0000003, and so on).

A department that consists of one or more persons and/or machines with identical capabilities, that can be considered as one unit for the purposes of service and maintenance planning.

A department that is responsible for the organization of transportation for one or more warehouses. When goods are moved from or to a warehouse, the responsible shipping office plans the transportation of these goods or subcontracts the transportation of the goods. In direct delivery scenarios, the shipping office provides planning or transport subcontracting services for external suppliers or customers.

In Freight, a shipping office plays a key role in load building and freight order clustering. Freight orders are grouped by shipping office. The groups of freight orders by shipping office are used by the load building engine to build shipments and loads, or by the freight order clustering engine to build freight order clusters.

The auxiliary item code for recording subcontracting operations. Items of this type also belong to the administrative items. These items are non-physical items which are used to record the subcontracting costs.

(Formerly called subcontracting item)

An agreement between business partners about the sale, purchase, or transfer of goods, in which you can define detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and demand pegging, and define the search mechanism to retrieve the correct terms and conditions.

The agreement includes the following:

• A header with the type of agreement and the business partner(s).
• Search levels with a search priority and a selection of search attributes (fields) and linked terms and conditions groups.
• One or more lines with the values for the search levels’ search attributes.
• Terms and conditions groups with detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and demand pegging for the lines.

A group of resources with common skills that can be used for a particular labor cost object. If you cannot yet make detailed assignments for employees, you can use trade groups for scheduling.

The actual price of an item, which is used in all financial transactions that involve the item.

The transactions include:

• Standard cost of goods sold
• Inventory transfer
• Issue to work-in-process value

The actual cost is calculated by using one of the actual costing methods (LIFO, FIFO, MAUC and Lot costing), or by using a standard cost valuation method.

A place for storing goods. For each warehouse, you can enter address data and data relating to its type.

The transfer of the value of the work in process from one work center to the next, in accordance with a physical transfer of a subassembly to the work center where the next operation must be performed.

A specific production area consisting of one or more people and/or machines with identical capabilities, that can be considered as one unit for purposes of the capacity requirement planning and detailed scheduling.