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.

The reservation of inventory against a demand prior to the outbound process.

You can allocate a quantity of inventory to a business partner or a particular demand order.

The automatic issue of materials from inventory, or accounting for the hours spent manufacturing an item, based on theoretical usage and the quantity of the item reported as complete.

An XML message used to exchange data between enterprises or enterprise applications. The BOD is composed of a noun, which identifies the message content, and a verb, which identifies the action to be taken with the document. The unique combination of the Noun and the Verb forms the name of the BOD. For example, noun ReceiveDelivery combined with verb Sync results in BOD SyncReceiveDelivery.

A party with whom you carry out business transactions, for example, a customer or a supplier. You can also define departments within your organization that act as customers or suppliers to your own department as business partners.

The business partner definition includes:

• The organization's name and main address.
• The language and currency used.
• Taxation and legal identification data.

You address the business partner in the person of the business partner's contact. The business partner's status determines if you can carry out transactions. The transactions type (sales orders, invoices, payments, shipments) is defined by the business partner's role.

A group of entities that are not necessarily related to one financial company or logistic company.

In Enterprise Planning, planning clusters are used for groups of warehouses, connected by supplying relationships. See: planning cluster.

Goods owned by your organization. A type of ownership behavior pertaining to goods in inventory or on order, which is set for standard business processes based on standard attributes such as delivery terms and point of title passage. After your customer receives or stores the goods, the customer will take ownership of the goods. If you purchase goods from your supplier, you become the owner after receipt or storage of the goods.

See also: ownership

The goods owned by a third party and that are stored in a warehouse belonging to another party.

Two types of consignment inventory exist:

• Owned consignment inventory

  Goods your company owns and stores in a customer's warehouse without receiving payment until the goods are used or sold. You do not register the goods as consignment inventory, because the goods are still part of your inventory.

• Not-owned consignment inventory

  Goods a supplier owns, but that are stored in your warehouse without being paid for until the goods are used or sold. You register the goods as consignment inventory.

A warehouse that is used for storing owned consignment inventory. Owned consignment inventory are goods owned by your company and stored in a customers warehouse without receiving payment until after the goods are used or sold. You do not register the goods as consignment inventory, because the goods are still part of your inventory.

The issue from the warehouse of consigned items by or on behalf of the customer. The customer's purpose is to use these items for sale, production, and so on. After the items are issued, the customer becomes the owner of the items and the customer must pay the supplier.

A type of ownership behavior pertaining to goods in inventory or on order. Customer owned goods are goods whose ownership will not change during any of the inbound or outbound warehousing processes.

For example, a customer sent you some components that you, as a subcontractor, will use to manufacture a product for this customer. The customer owns the components while they are stored in your warehouse and throughout all the logistic and production processes involved in manufacturing and delivering the product to the customer.

See also: ownership

The item quantity that is forecast to be required in a plan period. A demand forecast can be generated based on seasonal patterns or historical demand data.

The demand forecast is part of the demand plan for a plan item or channel.

The level of demand that is expected in future periods.

The demand forecast is based on historical demand data and can be used to determine the optimal safety stock and reorder point.

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 demand for an item, calculated by the customer that purchases that item, and aggregated to forecast periods according to the agreed terms and conditions.

The customer sends the forecast to the supplier that plans the item supply.

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.

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.

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 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 date that is assigned to items when they are stored. You can use inventory dates to retrieve items based on FIFO (First In First Out) or LIFO (Last In First Out), without carrying out extensive lot control.

The meaning of the inventory date is connected to the outbound priority of LIFO, FIFO, or the product expiry date of the item.

With outbound priority LIFO or FIFO, the default for the inventory date is the system date; however, you can overwrite this so that the inventory date does not have to be equal to the storage date. If the item has a particular shelf life, the inventory date is the product expiry date defined for the item.

The inventory quantity that can be available in a warehouse. In VMI or subcontracting scenarios, warehouse supply can be based on inventory levels laid down in contracts between suppliers and customers.

A commission to change the ownership of goods from the supplier, that is, the buy-from business partner, to the own company, if the ownership is time based. See also ownership.

An inventory ownership change order consists of an order header providing general information and one or more order lines providing details about the items involved. In addition, if resulting from the ownership change relocation is required involving adjustments of the handling unit structure, line handling information is also provided.

Time based change orders are generated by users for items due for ownership change. LN uses change orders to generate financial transactions related to the ownership change and to track the whereabouts of inventory.

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.

Selects the order types and orders to be invoiced. If you process an invoicing batch, LN selects the invoicing data and generates the invoices for the order types and orders selected through the invoicing batch.

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)

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

A time-phased overview of the demand and supply for an item related to a specific supplier.

LN provides item supplier plans to work with vendor managed inventory. The item supplier plan displays data such as the forecast you sent to the supplier and the confirmed supply information the supplier sent back to you.

You can compare an item supplier plan with an item order plan. The difference is, that the item order plan displays demand and supply from all suppliers and customers and the item supplier plan displays demand and supply for a specific supplier.

A distinct place in a warehouse where goods are stored.

A warehouse can be divided into locations to manage the available space, and to locate the stored goods. Storage conditions and blocks can be applied to individual locations.

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.

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

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.

The information that determines the sequence of locations from which an item must be retrieved.

An ownership record specifies the owner of the items listed on any of the following objects:

• Receipt line
• Outbound advice line
• Shipment line
• Cycle counting order line
• Adjustment order line

These objects can include items from various owners, and some of the items can be company owned. A separate ownership record is manually or automatically created for each owner. For example, if a receipt line has inventory for two owners, two ownership records are present for the receipt line.

The containers or supports that are used to hold and move goods within manufacturing, distribution processes, and, specifically, within the warehouse. For example: boxes, pallets.

An order document that shows in detail the contents of a particular package for shipment. The details include a description of the items, the shippers or customers item number, the quantity shipped, and the inventory unit of the shipped items.

An order in Enterprise Planning for an internal supplier or sister company to deliver a quantity of an item.

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.

Indicates when billing is applicable for purchased goods and contains the payable and invoicing details for an order or schedule. By means of purchase payable receipts, updates to and from the Accounts Payable module are handled.

If the payment for the purchased goods is set to Pay on Use, the payable receipt is generated when inventory related to a purchase order or a purchase schedule is consumed, that is, issued from the warehouse. If the payment is set to Pay on Receipt, the payable receipt is generated the moment the purchased goods are received.

A timetable of planned supply of materials. Purchase schedules support long-term purchasing with frequent deliveries and are usually backed by a purchase contract. All requirements for the same item, buy-from business partner, ship-from business partner, purchase office, and warehouse are stored in one schedule.

A standards organization that develops and publishes XML-based standards for electronic messaging in the areas of supply chain management, manufacturing, and so on.

A timetable of planned supply of materials. Sales schedules support long-term sales with frequent deliveries. All requirements for the same item, sold-to business partner, ship-to business partner, and delivery parameter are stored in the same sales schedule.

The periodic creation, matching, and approval of invoices based on receipts or consumption of goods by an agreement between business partners. The sold-to business partner pays for the goods without having to wait for an invoice from the buy-from business partner.

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 percentage used to calculate how orders are divided among suppliers.

Hiring certain services from another party, for example the execution of a part of a project or an operation of a production order.

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.

In LN, subcontracting is considered as purchasing a service from a subcontractor. Therefore, when subcontracting, a subcontracting purchase order is generated to record the subcontracted operation(s) and the associated costs.

The physical entities, people, and processes that lead from acquiring raw materials from suppliers to providing finished products to meet customer requirements.

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.

An inventory management method according to which the supplier usually manages the inventory of his customer or subcontractor. Sometimes, the supplier manages the supply planning as well. Alternatively, the customer manages the inventory but the supplier is responsible for supply planning. Inventory management or inventory planning can also be subcontracted to a logistics service provider (LSP).

The supplier or the customer may own the inventory delivered by the supplier. Often, the ownership of the inventory changes from the supplier to the customer when the customer consumes the inventory, but other ownership transfer moments occur, which are laid down by contract.

Vendor-managed inventory reduces internal costs associated with planning and procuring materials and enables the vendor to better manage his inventory through higher visibility to the supply chain.

A warehouse for which the supplier of the stored goods performs one or both of the following tasks: manage the warehouse, including activities surrounding inbound and outbound processes, or plan the supply of the goods in the warehouse. The supplier may also be the owner of the inventory in the warehouse. The warehouse is usually located at the customer's premises.

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

A warehousing order to move an item between warehouses.

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