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.

A warehouse that offers a view of a warehouse that is managed by a business partner. An administrative warehouse corresponds with a physical warehouse controlled by the business partner's system. In that physical warehouse, the inbound and outbound processing takes place. The administrative warehouse mirrors the inventory levels present in the business partner's warehouse.

Administrative warehouses are used in situations such as the following:

• The warehouse is at your location, but a supplier manages and possibly owns the inventory until you use the items.
• The warehouse is at the customer's location. You own the inventory until the customer uses the items, but the customer manages the inventory.
• The warehouse is at the subcontractor's location. You own the unfinished goods present in the warehouse, but the subcontractor manages the inventory.

Administrative warehouse is not one of the warehouse types that you can define in LN, setting up an administrative warehouse requires various parameter settings.

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

A specification of how a standard cost, valuation price, or sales price is calculated. The code stores specific cost calculation data.

The price calculation code that is defined in the Standard Cost Calculation Parameters (ticpr0100m000) session determines the standard cost. Other cost calculation codes are used for simulation purposes. The price calculation code for customized items is stored by project.

Example

• Specific operation rates
• Subcontracting rates
• Simulated purchase prices
• Surcharges

The (average) time between completion of two separate units of production. For example, the cycle time of motors assembled at a rate of 120 per hour is 30 seconds.

A procedure in which received goods are stored in a warehouse.

Represents a type of Operations Management transaction for the purpose of mapping and posting the integration transactions to Financials and for financial reconciliation.

The integration document types supplied by LN each have the corresponding business object attached to them. For example, the integration document types for the various sales order transactions have the Sales Order business object linked to them.

A financial transaction that is generated through LN packages other than Financials. For each logistic transaction that must be reflected in Financials, LN generates an integration transaction, for example, Purchase/Receipt, Production/WIP Transfer, and Project/Costs of Goods Sold. LN posts the integration transaction to the ledger accounts and dimensions defined in the integration mapping scheme.

The entire production process of an item is outsourced to a subcontractor.

An order system for items that are not planned by LN. You can manually create purchase orders and production orders for such items.

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.

The work on one or more operations in an item's production process is outsourced to a subcontractor.

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

In this supply system, a specific production order for a specific product pulls the required items from a supply warehouse to the shop floor warehouse. A direct link is established between the production order for which the items are required, and the warehousing order that regulates the supply of the required items to the shop floor warehouse.

A warehouse-order line that is used to issue goods from a warehouse.

An outbound-order line gives detailed information about planned issues and actual issues, for example:

• Item data.
• Ordered quantity.
• Warehouse from where the goods are issued.

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.

A planned order in Enterprise Planning to produce a certain quantity of an item.

An object used to group warehouses for which the inbound and outbound flow of goods and materials is planned collectively. For this purpose, the demand and supply of the warehouses of the planning cluster is aggregated. Within a planning cluster one supply source is used, such as production, purchasing or distribution.

If multisite is implemented, a planning cluster must include one or more sites. The site or sites include the warehouses for which the planning processes are performed. A site is linked to one planning cluster.

An entity in which you can store price information that is valid for a given period of time.

A price book includes the following elements:

• A price book header, which contains the code, type, and use of the price book.
• One or more price book lines, which contain the items.

A quantity or value break discount schedule can be linked to a price book.

A pricing structure that offers flexible criteria to define prices and discounts. You can set up additional prices for items in a price matrix.

An order to produce a specified quantity of an item on a specified delivery date.

Purchase contracts are used to register specific agreements with a buy-from business partner that concern the delivery of specific goods.

A contract is comprised of:

• A purchase contract header with general business partner data, and optionally, a linked terms and conditions agreement.
• One or more purchase contract lines with (central) price agreements, logistic agreements, and quantity information that apply to an item or price group.
• Purchase contract line details with logistic agreements and quantity information that apply to an item or price group for a specific location (warehouse) of a multicompany corporation. Contract line details can exist only for corporate purchase contracts.

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

A request by a user to obtain authorization for the procurement of goods and services.

A purchase requisition includes both standard and nonstandard material, cost, or service requirements. Information on a purchase requisition includes name, department, location, purchase office, and approver in the header section. The requisition line detail includes item, supplier, quantity, price, and amount.

A purchase requisition can be converted to one of the following:

• Purchase order
• Request for quotation (RFQ)

A response to a request for quotation line, which includes a bidder's bid for the RFQ line. A bid offers goods or services for a certain price and terms of sale and can be considered as an offer to sell.

A response to a request for quotation, which includes one or more response lines with bids. A bid offers goods or services for a certain price and terms of sale and can be considered as an offer to sell.

The sequence of operations required to manufacture an item.

For each operation, the reference operation, machine, and work center are specified, as well as information about setup time and cycle time.

Allot the service related work of an item to another company. The entire maintenance or repair process, or only a part of the same, can be allotted. Service subcontracting can be used with or without material flow support.

A warehouse that stores intermediate inventory in order to supply work centers. A shop floor warehouse is linked to an individual work cell, an assembly line, or one or more work centers. A shop floor warehouse can be supplied with goods using replenishment orders, or by pull-based material supply.

The pull-based material supply methods are:

• Order Controlled/Batch (only applicable in Assembly Control).
• Order Controlled/SILS (only applicable in Assembly Control).
• Order Controlled/Single (only applicable in Job Shop Control).
• Kanban.
• Time-Phased Order Point.

The items stored in the shop-floor warehouse are not part of the work in process (WIP). When items leave the shop floor warehouse for use in production, their value is added to the WIP.

An intermediary product in a production process that is not stored or sold as an end product, but that is passed on to the next operation.

For subcontracting purposes, a manufacturer can send a subassembly to a subcontractor to carry out work on the subassembly. This subassembly has its own item code defined in the Item Base Data.

After work is finished, the subcontractor sends the subassembly back to the manufacturer. Also this reworked subassembly has its own item code defined in the Item Base Data.

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.

Allowing another company (the subcontractor) to carry out work on an item. This work can concern the entire production process, or only one or more operations in the production process.

The rate that is used to calculate the subcontracting costs. How LN uses the subcontracting rate in the calculation depends on the calculation method:

• Unit
• Operation Rate
• Man Hour Rate
• Machine Hour Rate

A standard purchase price book that is used to store the following:

• The default purchase price of an item by buy-from business partner, ship-from business partner, or both
• The prices copied from RFQ responses
• The default prices of items

A system that is used to coordinate the timely supply of goods to the production lines or assembly lines.

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 priority level for searching and selecting a terms and conditions line. Search levels include a selection of search attributes (fields) and linked terms and conditions groups.

The default data that is recorded by the user and influences the creation of purchase requisitions, requests-for-quotation, purchase contracts, purchase orders, purchase schedules, purchase releases, call-offs, and approval rules. This data determines the method of order entry, default values during order input, and so on.

A warehousing order to move an item between warehouses.

A warehouse transfer consists of a warehousing order of inventory transaction type Transfer.

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.