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.

A step that you must carry out for the purchase/sales order type. An activity represents the sessions or the manual action that you must carry our for the purchase/sales order type.

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.

An unfilled customer order, or partial delivery at a later date. A demand for an item whose inventory is insufficient to satisfy demand.

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.

When a product is manufactured, components are assembled into subassemblies, and those subassemblies are in turn assembled into the final product. The components that go together at each stage are described in a bill of material. Each stage is one level in the bill of material.

The listing of the wheel components is one level in the bill of material. The listing of the subassemblies of the bicycle is the highest level, and is frequently referred to as level zero.

Example

A bicycle has one frame and two wheels. The frame is made of three tubes. The wheels are each made of one rim, one hub, and 35 spokes.

An item that is sold, and invoiced in combination with other items as part of a kit.

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.

The first day on which a record or a setting is valid. The effective date often includes the effective time.

The last day on which a record is valid. If you do not specify an expiry time, the validity expires at the end of the expiry date, at 24:00 hours.

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.

A statistics report on the physical goods flows between the member states of the European Union (EU). The information about the nature, origin, and extent of the goods flows must be reported regularly with an EU Intrastat declaration.

These statistics must be reported regularly with an EU Intrastat declaration. The EU Intrastat declaration is required by the national tax authorities in the framework of the European Common Market since 1993 (EC '93).

A repository where inventory can be reserved for special purposes. A separate order origin (called inventory buffer) is used to do this.

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.

A predefined list of items to be delivered together when ordered by the customer.

You can define kits to facilitate order entry. A kit includes a list of components and is ordered and priced as a single item. On the sales order line, the components are linked. The standard cost of the kit is the sum of the components' standard cost.

Example: The components of a PC kit usually include the main cabinet, a monitor, a keyboard, and a mouse. In the Do-It-Yourself market, a toolshed kit can contain the parts for the walls and the roof, a door with hinges, a door handle, and a lock.

A sales order or warehousing order created using the extended kit handling functionality.

In LN, all goods and/or shipments carried by one means of transport on a specific date and time and using a specific route.

The end result of a production order.

A main item is either be changed to an end item (for delivery to a warehouse), or delivered directly to the customer in bulk.

The items that can be manufactured end products and subassemblies. A manufactured item is usually associated with a bill of material and a routing that describe the components used to assemble it and the manner in which it is assembled. Manufactured items are also referred to as production items and can be purchased.

Refers to the management of multiple sites within a single (logistic) company.

In a multicompany structure, which includes several companies, multisite applies to each of the logistic companies.

The date on which the order is manually specified or is automatically generated.

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

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.

An assembly that is produced as part of a manufactured item, and that can have its own routing.

A phantom is usually not held in inventory, although occasionally some inventory can exist. The planning system does not create material requirements for a phantom, but drives the requirements straight through the phantom item to its components. Phantoms are mainly defined to create a modular product structure.

Example

The door of a refrigerator is defined as a phantom item in the bill of material of a refrigerator. The materials of the door are listed on the production order's material list for the refrigerator.

Indicates how LN rounds off entered and calculated amounts or quantities. The quantities and amounts are rounded off to the nearest multiple of the rounding factor. For example, if the rounding factor is 0.030000, a quantity of 2,11 is rounded off to 2,10 (= 70 * 0.030000). A quantity of 2,12 is rounded off to 2,13 (= 71 * 0.030000).

The following differences exist between rounding factors for currencies and for units:

• LN applies the rounding factor for units immediately when the users enter the data. LN applies the rounding factor for currencies not to the amounts entered, but after performing the applicable calculations.
• In some cases, you can change rounding factors for units, but you cannot do this for currencies.

An agreement that is used to sell items or services to a business partner according to certain terms and conditions. A sales order consists of a header and one or more order lines.

The general order data such as business partner data, payment terms, and delivery terms are stored in the header. The data about the actual items to be supplied, such as price agreements and delivery dates, is entered on the order lines.

A sales order contains items that are delivered to a customer, according to certain terms and conditions. The lines of a sale order are used to record the items ordered, as well as the associated price agreements and delivery dates.

The order type, which determines the sessions that are part of the order procedure and how and in which sequence this procedure is executed.

The units in which item dimensions in sales orders are expressed.

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.

An individual line of detail in a shipment.

A subdivision of a load that contains shipments. The packaging items defined for a container determines the type of container.

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.

A collection of item-related data, for example, the business partner to whom the item is allocated or ownership details.

LN uses the specification to match supply and demand.

A specification can belong to one or more of the following:

• An anticipated supply of a quantity of an item, such as a sales order or production order
• A particular quantity of an item stored in a handling unit
• A requirement for a particular quantity of an item, for example a sales order

The delivery of several components of a complete product at different times. Staggered consignments are not declared until the last consignment is delivered.

A phantom item that represent a number of component items or a main item for a (sub-) assembly.

A quantity of one or more shipped components that makes an incomplete kit. The remaining components must still be delivered, unless completion of the sales order line is impossible for some reason.

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.

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.