anonymous item

An item that is produced or purchased before a customer order is received.

If an anonymous item is a manufactured item, it is produced in a make-to-stock production environment. If an anonymous item is a generic item, a product variant is configured without using a PCS project.

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.

as-built structure

The actually built structure of a product including the serial numbers.

business-function model

A part of a business model that is built from a selection of business functions that are initially created in the repository.

cross-docking

The process by which inbound goods are immediately taken from the receipt location to the staging location for issue. For example, this process is used to fulfill an existing sales order for which no inventory is available.

LN distinguishes the following three types of cross-docking:

  • Static

    To initiate this type of cross-docking, you must generate a purchase order from a sales order in Sales.
  • Dynamic

    This type of cross-docking, available in Warehousing, can be:
    • Based on inventory shortages.
    • Defined explicitly during receipt of goods.
    • Created on an ad hoc basis.
  • Direct Material Supply

    You can use this type of cross-docking, available in Warehousing, to meet demand in a cluster of warehouses, and is based on:
    • Receipts
    • Inventory on hand
Note: You can maintain cross-dock orders that originate from Sales in the same way as cross-dock orders created in Warehousing, with the exception of the sales order/purchase order link, which you cannot change.

effectivity unit

A reference number, for example a sales order line or a project deliverable line, that is used to model deviations for a unit effective item.

end item

An item that is ready to be delivered to a warehouse. An end item is produced at the end of a dangle routing (co-products and by-products) or a main routing.

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

handling unit

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.

high volume scenario

This scenario is used for relatively inexpensive lot-controlled and serialized items produced and handled in large quantities that do not require tracking through each stage of the warehouse flow.

In this scenario, lot numbers and serialized items are not individually stored in inventory. Consequently, no inventory records exist that show updates on inventory transactions.

You can specify the stages for which registration of serial numbers or lot numbers is required.

inventory transaction

Any change in the inventory records.

inventory transaction type

A classification that is used to indicate the type of inventory movement.

The following inventory transaction types are available:

  • Issue

    From warehouse to other entity than warehouse.
  • Receipt

    From other entity than warehouse to warehouse.
  • Transfer

    From one warehouse to another.
  • WIP Transfer

    From one costing work center to another.

inventory unit

The unit of measure in which the inventory of an item is recorded, such as piece, kilogram, box of 12, or meter.

The inventory unit is also used as the base unit in measure conversions, especially for conversions that concern the order unit and the price unit on a purchase order or a sales order. These conversions always use the inventory unit as the base unit. An inventory unit therefore applies to all item types, also to item types that cannot be kept in stock.

item

The raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, and sold.

An item can also represent a set of items handled as one kit, or which exist in multiple product variants.

You can also define nonphysical items, which are not retained in inventory but can be used to post costs or to invoice services to customers. The examples of nonphysical items:

  • Cost items (for example, electricity)
  • Service items
  • Subcontracting services
  • List items (menus/options)

item group

A group of items with similar characteristics. Each item belongs to a particular item group. The item group is used in combination with the item type to set up item defaults.

kanban

A demand-pull system of just-in-time production that regulates the supply of items to shop floor warehouses.

Kanban uses standard containers or lot sizes (also called bins) to deliver items to shop floor warehouses. In the shop floor warehouse, two or more bins are available with the same items. Items are only taken from one bin. Typically, if a bin is empty, a new bin is ordered and the items are taken from the (second) full bin. To each bin a label is attached. The line stations use the label to order a full bin with the required items.

Sometimes, not every bin is provided with a label. For example, a label is attached to every second bin. When both bins are empty, the user scans the label of the second empty bin to generate a supply order for both empty bins.

last in, first out (LIFO)

An inventory valuation method for accounting purposes. The assumption is that the most recently received value item (last 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.

LIFO can also be an outbound method that determines the physical outbound priority of a specific item. The newest 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 LIFO, the box with receipt date 10-01 is issued.

LIFO

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.

maintenance sales order

Orders that are used to plan, carry out, and control the maintenance on customer-owned components, products and the logistic handling of spare parts.

mask

A template that specifies the structure of an identification code. A mask is used to generate the identifiers for objects such as serial numbers, handling units, or shifts.

mask segment

A part of a mask that represents specific data. For example, a mask segment can be a date, a LN field, or a sequence number.

outbound advice

A list generated by LN that advises you the location and lot from which goods must be picked and possibly issued, taking into account factors such as blocked locations and the outbound method.

physical breakdown

A serialized item's composition and structure, defined by the parent-child relationships of its constituent items. The physical breakdown can be displayed in a multilevel structure or a single-level structure.

picking list

A document that lists the material to be picked for manufacturing or shipping orders. This document is used by operating personnel to pick manufacturing or shipping orders.

rounding factor

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.

serialized item

A physical occurrence of a standard item that is given a unique lifetime serial number. This enables tracking of the individual item throughout its lifetime, for example, through the design, production, testing, installation, and maintenance phases. A serialized item can consist of other serialized components.

Examples of serialized items are cars (Vehicle Identification Number), airplanes (tail numbers), PCs, and other electronic equipment (serial numbers).

serialized item

An item that is uniquely identified by the item code (manufacturer part number) in combination with the serial number.

serialized item group

A group of serialized items with similar features.

serialized item relations

The indication of a serialized item's position in a physical breakdown, by means of parent-child relations. A serialized item in a physical breakdown is above its child item(s) and below its parent item.

In a structure, a child item can only have one parent item, whereas a parent item can have multiple child items.

serial number

The unique identification of a single physical item. LN uses a mask to generate the serial number. The serial number can consist of multiple data segments that represent, for example, a date, model and color information, sequence number, and so on.

Serial numbers can be generated for items and for tools.

service employee

Person(s) working for the service department.

service engineer

A trained technician who carries out the service activities within his/her own organization or on the customer's location.

service order

Orders that are used to plan, carry out, and control all repair and maintenance on configurations as present on customer locations or as present with the company.

tool

A reusable resource, manual or mechanical, that is used to perform manufacturing and/or service tasks. When you have finished with the tool, it is returned to inventory to be used for the next requirement. The tool's life is reduced each time you use it. A tool can be identified in LN as a unique combination of tool type and tool serial number.

Example

  • Hand tools

    A saw or power drill.
  • Machine tooling

    A jig, mould, pattern or cutting tools.
  • Instruments

    A durometer or gauge.
  • Equipment

    A shovel.

transfer order

A type of warehousing order that is created to register inventory transactions from an issuing warehouse to a destination warehouse, or between two locations in a warehouse. A transfer order can be created manually or be generated by other packages or modules in LN. A transfer order has transaction type Transfer.

warehouse transfer, warehousing transfer order

translation table

A table to translate the actual data into the code required to form the serial number. For example, to translate the production date into the date code.

unit effective item

An item for which an effectivity unit can be defined on the sales order line or the sales quotation line. The effectivity unit is used to model deviations for the unit effective item, and to peg purchase orders and production orders to a specific sales order line for the unit effective item.

unit effectivity

A means to control the validity of variations by effectivity units.

Unit effectivity enables you to model changes for the following entities:

  • Engineering bill of material
  • Production bill of material
  • Routing
  • Routing operations
  • Supplier selection
  • Sourcing strategies

wizard

A special form of user assistance that automates a task by setting the parameter values within a business model and which directs the software to meet the specific requirements of an organization.

work order

Orders that are used to plan, carry out, and control all maintenance on items in a maintenance shop or in a repair shop. A work order consists of at least one work order header, and can have a number of activities that must be carried out on a repairable service item.