If an approval rule is based on acceptance rules, LN automatically approves a purchase order that meets a valid rule. If you define approval rules based on acceptance, you define for what combination of data elements you want LN to approve the purchase order.

A list type that permits the definition of related inventory items or kits that are offered to business partners when they order an end item.

The manager who is responsible for maintaining relations with accounts, or business partners.

The act of sending a formal and written confirmation. The supplier sends an acknowledgment to the customer, to acknowledge the receipt of a contract or an order.

The notification of the receipt of an order or a change to an existing order.

A communication by a supplier to confirm that a purchase order has been received. Acknowledgment typically implies the supplier's order acceptance.

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.

An appointment, call, task, mailing, or e-mail that is registered in LN and that can be linked to, for example, a contact, a business partner, or an opportunity. Optionally, tasks, appointments, and calls can be synchronized with desktop applications.

The smallest part of the activity structure used for a time-scaled budget. An entity that is used to represent a part of a project in an activity structure.

LN distinguishes these activity types:

• WBS Element
• Control Account
• Work Package
• Planning Package
• Milestone

A number that expresses the sequence for each activity in the business process.

The definition of a standard activity. As the data to be recorded can vary from one activity to another, you can link a separate attribute set to each activity template. An activity template can be used as a basis for creating tasks and mailings.

The date on which the sold goods are delivered.

The date on which the ordered goods are received.

Includes a cost item that can be linked as additional costs to an order or shipment. Examples of additional cost lines are administrative costs added to the order costs if the order amount is lower than a certain value, or freight costs added to the order if the total weight of the sold/purchased goods exceeds a certain value.

Charges for extra services, such as extra packaging, insurance, and so on. Additional costs are added to the freight costs of a shipment, load, or a freight order cluster. They are levied for shipment lines or freight order cluster lines, which can be invoiced to the customer. This depends on the agreements made with the business partner.

The cost items that can be placed on an order or shipment to charge extra costs for an order or shipment.

A set of search attributes used to determine an order's or shipment's additional costs. Each scenario is linked to a cost set.

A cost set that is used to charge extra general costs to purchase and/or sales orders.

The code under which a number of additional cost lines and scenarios can be stored. Cost sets can be linked to items, business partners or price lists and, via these, to orders and shipments.

User-defined fields of various field formats that can be added to various sessions, in which users can edit these fields. No functional logic is linked to the contents of these fields.

Additional information fields can be linked to database tables. When linked to a table, the fields are displayed in the sessions corresponding to the database tables. For example, a field defined for the whinh200 table is displayed as an extra field in the Warehousing Orders (whinh2100m000) session.

The contents of additional fields can be transferred between database tables. For example, the information specified by a user in additional information field A of the Warehousing Orders (whinh2100m000) session is transferred to additional information field A in the Shipments (whinh4130m000) session. For this purpose, additional information fields with identical field formats and field name A must be present for the whinh200 and the whinh430 tables (whinh430 corresponds to the Shipments (whinh4130m000) session).

A quantity by unit against which you can define freight rates. You can choose from the units defined in Common. Many freight rates are based on distance and weight. Additional quantities/units enable you to define rates that are based on other units, such as volume, or define rates that are based on combinations of distance, weight, and other units.

Example 1

Freight rate by additional quantity/unit:

Additional Rate Quantity: 1 pallet, Distance: 1000 km

Amount by Distance: 10

Example 2

Freight rates by combinations of units by distance/zone:

Weight: 10 kg

Additional Rate Quantity: 1 m³

Break Type: Minimum

In this example, freight rates are based on distance by weight and volume. Shipment SH0001, from Amsterdam to Rotterdam, includes the following details: Distance: 70 km, Weight: 50 kg, Volume: 7 m³

The freight costs for shipment SH0001 are:

10 * 70 (distance) + 5 * 50 (weight) + 5 * 7 (volume) = 985 

A full set of address-related details, which include the postal address, access to telephone, fax, telex numbers, and email, Internet address, identification for taxation purposes, and routing information.

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.

A separate logistic company that acts as a business partner to your logistic company. You must define the sold-to role and the buy-from role for an affiliated company business-partner.

For example, an affiliated company can represent affiliated enterprises and locations of your enterprise in other countries.

A group of relations to which the same commission/rebate agreements are linked.

A lumpsum contract or a reimbursable contract. In a reimbursable contract the customer agrees to pay all acceptable costs up to a fixed fee.

Inventory throughout all warehouses that is allocated to outbound order lines. After the inventory is shipped, that is, has left the warehouse, the allocation is deleted. Also referred to as standard allocation or soft allocation.

See also location allocated inventory

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.

An item quantity that is assigned to a specific order but that is not yet released from the warehouse to production.

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.

Items that can serve as a substitute for the standard item if the standard item cannot be delivered or is being replaced.

The budgeted turnover amount in a specific period, expressed in the home currency.

Copy an existing category structure into another existing structure, combining both structures in the target category.

An activity type that specifies an appointment scheduled for a contact, business partner, opportunity, or activity that you want to track through completion. An appointment has invited atttendees.

Dividing the fixed landed cost amount of the header into partial amounts on the related lines.

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 user-defined procedure that identifies the approval loop for a document. A formal approval process is typically and usually identifies the required approval levels and the appropriate approvers.

A combination of data elements, such as buy-from business partner, buyer, planner, effective date, expiry date, and amount, based on which LN approves purchase orders. The approval rules, on their turn, are based on acceptance rules or exception rules.

The status assigned to a purchase requisition when all relevant approvers have approved a requisition with the Pending Approval status.

The number of delivered items that is approved.

A list of buy-from business partners approved to deliver a specific item.

A company created for the purpose of archiving historic documents and data. You can store redundant data in an archive company.

To access and retrieve data from an archive company, you must change company to the archive company.

A region used to group business partners, customers, suppliers and employees on a geographical basis.

An order-dependent set of items that must be supplied together to the shop-floor warehouse.

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.

An order to assemble a product on one or more assembly lines.

The item quantity that is available to be promised for a customer either immediately, or at a specific time in the future.

The messages linked to contacts, opportunities, attributes etc. that draw your attention to special events or circumstances.

Used to record distinctive information on (potential) business partners, contacts, opportunities, or activities and to segment data when specifying a batch selection for generating activities, mail merge (letters), or flexible reports.

Example

A possible value of an attribute of the option type.

Example

See attribute.

A set used to group related attributes.

Example

See attribute.

An indication of the type of activity for which a resource is available. With availability types, you can define multiple sets of working times for a single calendar.

For example, if a work center is available for production on Monday through Friday and available for service activities on Saturdays, you can define two availability types, one for production and one for service activities and link these availability types to the calendar for that work center.

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

The number of items to be delivered at a later stage. This quantity does not need to be equal to the rejected quantity.

The price of the goods stored in a warehouse. The base price is independent of the price factor, discounts, the order quantity, and value and is stated in the home currency and inventory unit.

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 warehousing order that is generated during the creation of a push schedule or a production schedule and that contains:

• A position number and sequence number of zero.
• An item as defined on the purchase schedule or production schedule.
• An order quantity equal to the quantity as defined on the purchase contract line. If based on a production schedule, the order quantity of the blanket order is based on the quantity specified in the Transfer Quantity field of the Work List (tirpt4602m000) session.
• An empty planned delivery date and planned receipt date.
• A lot selection defined as Any.

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.

A reference number identifying a specific combination of manufactured and component items in a bill of material. The position number is subdivided by sequence numbers that are used to refer to usage of a component between particular dates.

The price for the item according to the price book, increased by an upgrade price if applicable. The default price for an item is stored in the default price book.

An entity used to specify how breaks between ranges of entities such as distances, amounts, or ordered quantities of items are defined. A break, in this case, is the first or the last number of a range. A break type has either of the following values:

Minimum The break is the lowest number of a range.

Example

In this case, the breaks are 10 and 50. Ordered quantities >= 10 and < 50 get a 3% discount. Ordered quantities of 50 and more get a 5% discount.

Up To The break is the highest number of a range.

Example

In this case, the breaks are 100 and 1000. For distances <= 100, the rate is 10. For distances > 100 and <= 1000, the rate is 50.

1) A commercial cost estimate in the preproduction stage of projects. 2) A plan that includes an estimate of future costs and revenues related to expected activities.

A plan that includes the budgeted quantities and/or amounts by period for the sorts selected; the budgeted or expected sales or purchase figures.

A cost estimate in the preproduction stage of projects. Includes an estimate of future costs and revenues related to expected activities.

A budget is linked to a calculation group. Budgets within the same calculation group can therefore be used for simulation purposes.

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

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.

In the context of financial integration transaction processing, a business object is a logistic entity or event such as an item, a purchase order, a business partner, or a warehouse issue.

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 transaction identification more detailed than the business object, for example, a receipt number or an order number. You can use the reference during reconciliation to match transactions if the business object alone does not provide enough information, for example, during GRNI reconciliation.

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.

The employee or department of the business partner that is used as the contact to your own company or department in case of problems or questions.

The order number created by your business partner to represent the requirement in the business partner's system. The business partner order reference number ensures that you compare the same records.

A business partner can be selected as parent. This means that the order discount specified for this business partner is the input for the relevant order.

If a parent business partner is defined on an order, LN first searches for the order discount defined for the parent business partner.

If an order discount is not specified for the parent or if no parent is specified, LN searches for the order discount that is specified for the business partner on the order.

Indicates the relationship between your organization and the business partner. The role defines the types of transactions you can carry out with the business partner. The business partners with different roles are linked by a common parent business-partner.

Examples of business-partner roles:

• Sold-to business partner
• Pay-by business partner

The status assigned to the business partner, which determines the actions that can be carried out for the business partner.

For example, you cannot specify a sales order for a business partner with status Prospect, or ship goods to a business partner with status Inactive.

A business partner can be selected as 'parent'. This means that the texts that are specified for this business partner are the input for the relevant order.

If a parent business partner is defined on an order, LN first searches for texts as defined for the parent business partner.

If texts are not specified for the parent or if no parent is specified, LN searches for the texts that are specified for the business partner on the order.

A way to group business partners with similar characteristics, for example, members of the EU, or subject to specific customs rules.

The employee of your company who is the contact to the concerned buy-from business partner. The buyer is also known as the purchasing agent.

A classification of a contact's role in the decision making process related to an opportunity. With this classification, sales representatives know, for example, how to approach a contact to win a deal.

A buyer role can be, for example, economic buyer, decision maker, influencer.

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 set of definitions, that are used to build a list of calendar working hours. A calendar is identified by a calendar code and availability type combination.

An activity type that specifies a call scheduled for a contact, business partner, opportunity, or activity that you want to track through completion. A call has invited attendees.

A question, complaint, or malfunction that is communicated to the party responsible for the service or maintenance of the item concerned.

The actual ordered quantity multiplied by the price per unit.

The number of items currently ordered.

To call up goods from a business partner based on a purchase schedule. Call-off involves sending a message (EDI) to notify a business partner that the scheduled items must be delivered. The message contains the item quantity and the date and time they must be delivered.

The status assigned to a purchase requisition when the requester cancels a requisition with the Created, Modified, or Rejected status. A canceled requisition cannot be changed.

The process of stopping existing orders at an intermediate stage in the procedure.

The time unit in which the ship-from business partner capacity is expressed.

The company responsible for the transportation of goods to the ship-to business partner.

An option in Freight that prevents the load building engine from overwriting the carrier selected by the user for a given freight order line.

A freight rate used by a carrier to calculate the transportation costs of a given number of goods.

A freight rate book where you can maintain freight agreements with carriers.

The highest level of a category structure. A catalog contains one or more categories, which contain items or subcategories. A catalog cannot be a member of another category.

A classification or division of items. The classification can be by form, fit, or function. Categories are used in catalogs. The highest level category is referred to as a catalog.

A contract to which no specific contract office is linked.

The new receipt date that is used if the supplier cannot comply with the agreed receipt date and states a new receipt date. Together with the planned and/or confirmed receipt date, the changed receipt date is the basis for determining the vendor rating, and the planned inventory movements. In addition, this date is also used in the reminder procedure.

A number that is used to assign the occurrence of changes to a purchase order or a sales order.

A means used to identify the reason for a change to a sales or purchase order, for example, a contract limitation, feasibility issue, or transportation limitation. A change reason is identified by a code.

The reason that can be assigned to a changed purchase document (line) or sales document (line).

A change document that includes a proposal for the adjustment of an actual document. The change request is copied from and linked to the actual document. Changes are applied to the actual document after the change request is approved and processed.

A user-defined code that can be used to identify types of changes made to orders, such as a price change or quantity increase.

The indicator of the type of change of a changed purchase document (line) or sales document (line).

A sales or distribution channel used to assign goods to customer groups.

You can link channels to sold-to business partners and to items. Channels can be used in connection with available-to-promise (ATP).

You can assign a certain ATP volume to a channel. This volume limits the ATP for that channel to a maximum.

The notes printed to notify the buy-from business partner if the actual delivered quantity is less than the quantity on the packing slip

A freight rate book where you can maintain freight agreements with business partners.

Client rates are freight rates agreed on with an organization's business partners. These rates are maintained in the client freight rate books in Pricing. Client rates is also one of the invoicing methods used to calculate the invoice amount for freight costs.

A schedule for the generation of monthly billing invoices. For example, you can define a closing method to generate two monthly billing invoices each month: one on the 15th day of the month and one at the end of the month.

Grouping several schedules lines to send the lines in one purchase release.

For clustering, first the next schedule issue date, according to the issue pattern, is determined. Next, the schedule lines are clustered based on the segment time unit, and the segment length, derived from the segment set.

The authority to which the tax or social contribution must be paid. In LN, a collection office is defined as a business partner with only the invoice-from and pay-to roles.

An invoice containing multiple entries for delivering several orders to customers. The orders, however, are specified individually.

An order type in which goods are immediately issued from inventory upon order entry. The goods are then immediately collected by the customer. When the sales order lines are created, the related transactions are automatically concluded.

When you create and save a collect sales order, LN sets the sales order status to Closed. At the same time, LN creates a warehouse order and sets the status of the warehouse order to Shipped. The warehouse order type is the warehouse order type that is linked to the sales order type.

To group a number of purchase orders that originate from different sources, into a single purchase order. Commingling reduces the number of purchase orders and enables you to obtain the best available prices and discounts.

The amount of money to be paid to an employee (sales representative) or buy-from business partner (agent) for closing a sales order.

A set of items that is grouped and then linked to an agreement.

A rate agreed to be paid as commission to an employee (sales representative) or buy-from business partner (agent) for the sale of a particular item (or item group).

The amount of money to be paid to an employee (sales representative) or buy-from business partner (agent) for closing a sales order.

A financial obligation that represents future costs.

A working environment in which you can carry out logistic or financial transactions. All the transaction data is stored in the company's database.

Depending on the type of data that the company controls, the company is:

• A logistic company.
• A financial company.
• A logistic and a financial company.

In a multicompany structure, some of the database tables can be unique for the company and the company can share other database tables with other companies.

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

A company that competes for the same sales orders. Generally, a competitor operates in the same market segment as your company.

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

An item that has features and options and must be configured before any activities can be performed on it. If the configurable item is generic, a new item is created after configuration. If the item is manufactured or purchased, the configuration is identified by item code and option list ID.

• Manufactured or Product items with the default supply source set to Assembly and Generic items are always configurable.
• Purchased or Product items with a purchase schedule in use can be configurable.
• Configurable Purchased or Product items can be used within Assembly Control only.

The date on which the bill of material is exploded.

A configurable item that is configured, which means options and features are chosen for the item.

A configured item can have components that are also configured, for example, a bike with a bike light. If a configured item is an end item, it is configured with its configurable components and stored as a product variant.

An order created for any order quantity that cannot immediately be delivered due to inventory shortages.

The delivery date for the items, which is confirmed by the sales representative and communicated to the buyer. The buyer then uses this date to enter the confirmed receipt date on the purchase order.

This date is used for several purposes:

• As one of the bases by which the vendor rating is determined.
• As the default value for the confirmed delivery date on the order lines.
• As the reference date for the printing of reminders.

The receipt date for the items, which is confirmed by the buy-from business partner or confirmed to the sold-to business partner.

This date is used for several purposes:

• As one of the bases by which the vendor rating is determined.
• As the default value for the confirmed receipt date on the order lines.
• As the reference date for the printing of reminders.

Indicates that an item requires a conformance document check at source inspection, which must be executed before shipment of an item. The purpose of conformance reporting is to deliver the related documents to the customer.

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 not-owned consignment inventory. Not-owned consignment inventory are goods owned by a supplier, but stored in your warehouse without being paid for until after 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.

The person with whom you discuss business transactions. For example, you address questions, quotations, and follow-up calls, direct mail, and promotional gifts to the contact. The contact's data include the name, telephone number, e-mail address, and other details.

An agreement between two parties to purchase or sell an unspecified quantity of material over a certain period of time. A contract can be linked to one or more orders or schedules.

An agreement with the business partner that defines the terms and conditions like deliverables, billing plan, payment terms and so on. A contract can be linked to one or more projects.

An acknowledgment sent to suppliers to confirm that the contract is closed (concluded).

The date on which the contract is entered in the system.

An agreement of one customer with one supplier, about both commercial and logistic conditions, related to the supply of one item, during a period of time.

The agreed upon price in a sales contract, purchase contract, or request for quotation (RFQ).

A date-controlled agreement for price and discount elements on the contract line. Price revisions enable you to have several prices over time. An active revision is valid from its effective date up to the effective date of the next revision, or the expiry date of the contract line.

The quantity that must be delivered according to the contract agreements. The contract quantity must always be greater than zero.

A quote to a business partner for the provision of a service contract.

A way of categorizing contracts based on similarities and shared characteristics.

Each contract type is identified by an alphanumeric code of up to three characters.

A ledger account used to reflect the balance of a number of related subsidiary accounts.

In LN, 'control account' usually refers to the creditors' account or the debitors' account defined for the financial business partner groups in Accounts Payable and Accounts Receivable.

In addition to the creditors' account and the debitors' account, you can define a number of specific control accounts for a business partner group, such as control accounts for doubtful invoices, advance and anticipated payments or receipts, and realized and unrealized currency profit or loss.

The multiplication factor used to convert an alternative unit to the base unit. The conversion factor is calculated as follows: (alternative unit/base unit)

An ERP application table that stores different code conversion values and their relationships between an external code (code in message) and the code in the ERP application.

A field that is not automatically copied from the source order to the target order and for which you must define a copy action.

A standard set of copy exceptions based on which existing orders are copied to target orders.

A purchase contract line, used by multicompany corporations, in which the agreements with a business partner about an item are specified locally (by warehouse). Contractual agreements that apply to the entire corporation, such as price and quantity conditions, are specified on the contract line. Logistic agreements, which apply only to a specific location, are specified on the contract line details. The contract (total) line holds the aggregated quantity information of the linked contract line details.

Corporate purchase contracts are mainly used to make keen price agreements on a corporate level and to use these prices on local level.

A cost component is a user-defined category for the classification of costs.

Cost components have the following functions:

• To break down an item's standard cost, sales price, or valuation price.
• To create a comparison between the estimated production order costs and the actual production order costs.
• To calculate production variances.
• To view the distribution of your costs over the various cost components in the Cost Accounting module.

Cost components can be of the following cost types:

• Operation Costs
• Material Costs
• Surcharge
• General Costs
• Not Applicable

An administrative item that is used to post extra costs to an order. Extra costs are, for example, accounting expenses, clearance charges, design costs, and freight expenses.

Cost items are not used for production and cannot be held in inventory. They are also referred to as expense items.

A type of order that can be used to charge separate, extra costs. Extra costs are, for example, accounting expenses, clearance charges, costs of design, and freight expenses. A cost order does not contain physical items.

Purchase or sales-order type related to counter sales and direct invoicing in which the customer immediately takes home the goods. Also, collect orders do not require you to print various documents.

Countries are the national states where your suppliers and customers are located. For each country you can define the country code, international dialing, telex, and fax codes.

Countries are part of the data that you must set up for tax reporting. In addition, items can be grouped and selected according to their country of origin.

A financial classification that indicates to what extent work is covered under warranty or contract, and what part of the activities can be charged.

An application, integrated with LN to configure an item. The integration can be used only as part of the web user interface.

The status assigned to a purchase requisition when the requester enters and saves a purchase requisition.

Copy an existing category structure into a new category to create an exact copy.

One of your employees in charge of controlling and monitoring the credit that you give to an invoice-to business partner.

The maximum financial risk that you accept or are insured against concerning an invoice-to business partner, or that an invoice-from business partner accepts concerning you.

When you create orders, LN continually checks that the total amount of created and invoiced orders does not exceed the credit limit. When you exceed the limit, LN gives a warning message.

A system of classifying customers and possible future customers according to their financial strength and the degree of trust that a supplier can place in them.

The credit rating is linked to an invoice-to business partner and defines a number of details such as, the action to be taken when a sales order is processed, and when the credit check must be repeated.

Within this period the invoice-to business partner must pay his invoices. This can be seen as a so-called overdue invoice period.

A part, assembly, installation, or production system with one or more essential characteristics which, when they do not conform to the design data or quality requirements, result in an unsafe condition that can cause loss or serious damage to the end item or major components, loss of control, or injury to personnel.

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

The date and time at which a schedule's cumulatives/ authorizations are reset.

The year-to-date totals for quantities shipped, received, required, and invoiced.

Cumulatives are used as schedule statistics to track if its status is ahead or behind schedule compared to the demand.

A generally accepted medium of exchange such as coins, treasury notes, and banknotes.

The following currency types are available in LN:

• Home currency, which is used internally by companies to calculate costs, record budgets, and register tax amounts
• Transaction currency, which is used in transactions with business partners, such as orders and invoices

A business regulation according to which the goods that are delivered on a sales order must be approved by the customer before you can invoice the goods. The ownership of the goods changes from supplier to sold-to business partner when the delivered goods are approved.

The identifier of the item's model, part, or year with the sold-to business partner. This reference is used to identify a sales contract line.

An item supplied by the customer being used as material in the production of an end-item for that same customer.

The number assigned to the order or contract by the sold-to business partner (for example, the sold-to business partner's purchase contract number). The customer order number can be used to identify a sales contract line.

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

An item produced on a customer specification for a specific project. A customized item can have a customized BOM and/or a customized routing and is normally not available as a standard item. A customized item can, however, be derived from a standard item or a generic item.

The order of the numeric characters that specifies the way the system date is presented. This concerns the day of the month and year as they appear on documents, for example, 15/09/78 (in Britain) and 7/22/78 (in the U.S.A.).

A schedule set with installment defaults used to generate installments on sales orders or project contracts.

After entering the desired schedule number, you can specify the defaults for a number of installment lines. The time fence between the order date and the invoice date, the percentage of the total net amount, and the type of installment are specified on the installment line.

The source that supplies an item by default. You can use purchase orders or schedules, production orders or schedules, assembly orders, or warehousing orders to supply an item.

The default supply source determines what type of order is used to supply the item, but in general, you can override the default and specify an alternate source.

The status assigned to a purchase requisition when a requisition with the Processed or Canceled status is deleted.

The quantity of goods expressed in the sales unit or the inventory unit, which is delivered to the sold-to business partner.

The actual address where goods must be delivered that you recorded for each supplier. In practice, this can be one of your warehouses.

A reason code that indicates who is to pay for the transportation of the goods.

A list of time-phased delivery, derived from a contract and converted to purchase orders. A delivery contract is not a real schedule, but a schedule solution to generate purchase orders in time.

Example

The date on which the inventory is issued from the replenishment warehouse and transported to the destination warehouse.

The number of days early that a supplier can make a delivery.

The number of days late that a supplier can make a delivery.

A transport document that provides information on a consignment contained in one truck (or other vehicle) and refers to an order or a set of orders for one consignee at a delivery address. If the truck load contains shipments for various business partners, the load includes more than one delivery note. The information on a delivery note includes the delivery date and address, the customer's name, the contents of the consignment, and so on. In Italy, a delivery note is a legally required document, where it used to be called BAM (Bolla Accompagnamento Merci). Currently it is called DDT (Documento di Trasporto). In Portugal and Spain delivery notes are also used, but there they do not have the same legal status as in Italy.

An address specification within a delivery address. For example, a warehouse dock location.

The supplier uses the delivery point in the shipment building process: the shipments are grouped by delivery point.

The dates and quantities of an item that can be promised to a customer.

With this report you can determine how much volume can be delivered on time and how much is delivered late.

According to the item master plan, more chairs will be completed later that month. Some of those newly produced chairs have already been promised to other customers.

Example

A customer wants to order 80 office chairs, to be delivered on May 1. However, the CTP quantity on that day is only 30 chairs.

The agreements with the business partner, concerning the way the goods are delivered. Relevant information is printed on various order documents.

The terms or agreements concerning the delivery of goods.

A relationship between a planned order, or an actual supply order, and an item requirement that represents a definite commitment.

You can only use the demand pegged supply for the pegged requirement, unless either of these conditions applies:

• The peg is deleted.
• Parameters allow issuing unallocated inventory or inventory of a different specification for a demand-pegged outbound order.

• Pegged supply

  The pegged supply can be a purchase order, a planned purchase order, a production order, a planned production order, a warehousing order with transaction type transfer, or a planned distribution order.

• Pegged requirement

  The pegged requirement can be, among other things, a sales order line or a required component for a production order.

Related term: soft peg

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.

The output device selected for the report such as a printer, a screen (device: display), an ASCII file, and so on.

Analysis account for ledger accounts to get a vertical view on ledger accounts. Dimensions are used to specify ledger account information.

One of up to twelve available analysis account bases for ledger accounts.

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.

A way for a buyer to directly submit a sales tax to the tax authority instead of first paying it to the supplier. To withhold tax from the invoice, you must provide your direct pay certificate number to the supplier.

An allowance of deduction granted by the seller to the buyer, usually when the buyer meets certain stipulated conditions that reduce the price of the goods purchased.

Three types of discounts exist:

• A quantity discount: an allowance determined by the quantity or value of the purchase.
• A cash discount: an allowance extended to encourage payment of an invoice on or before a stated date.
• A trade discount: a deduction from an established price for items or services made by the seller to those engaged in a certain business.

The discount given to a business partner, calculated by unit and expressed as a value. For instance, 3 euro.

A method to indicate the reason a discount is granted. For example, you can grant a discount because the customer orders large quantities. If you grant a discount or if you add a surcharge to a sales invoice, you can enter a discount code to indicate the reason.

Surcharges and discounts can be the result of the following:

• Standard discounts
• Surcharges
• Payable commissions
• Payable rebates

A code that indicates the way in which discounts are calculated if multiple discount levels are used.

Discounts are calculated according to one of the following amounts:

• Gross: the discount is calculated over the gross amount
• Net: the discount is calculated over the net amount. The net amount is calculated from the gross amount minus discounts at previous levels

The percentage that you can subtract from the gross sales price or purchase price.

The percentage that you can subtract from the gross sales price or purchase price.

An entity in which you can store discount information that is valid for a given period of time and that is used to calculate discounts for an item.

A discount schedule includes the following elements:

• A discount schedule header, which contains the code, type, and use of the discount schedule.
• One or more discount schedule lines, which contain the discounts.

The discounts specified in a discount schedule are expressed as a percentage or an amount and are subject to a minimum or maximum quantity or value.

A discount schedule can be linked to a price book.

A generic term for objects, such as orders or order lines. Also used to refer to printed matter, such as reports, shipping documents, order documents, or user documentation.

The identification of a transaction.

The document code is a combination of:

• Transaction-type code
• Series number
• Sequence number

Displays identification, document type, title, creator, role responsibility, and revision information. You can store the document information in electronic computer files (physical files) or on a non-electronic medium, such as paper (hard copies). Access to this information is always from the document, which is the unit of control for the user. If no file or hard copy is attached to a document, the document is a purely logical entity, generally used for grouping documents.

The price on the document line, which is the sum of the item price and the total material price.

The amount of an item to be purchased or manufactured at one time. This amount is the quantity for which the combined costs of acquiring and carrying inventory are the lowest. This is also referred to as the minimum cost order quantity.

A standard electronic business document consisting of an organization name and a message. EDI messages are processed as incoming or outgoing messages.

An EDI messages can concern, for example, an order acknowledgement or an advance shipment notice (ASN).

Organizations that determine EDI message standards are:

• ANSI
• X12
• UN/EDIFACT
• ODETTE
• VDA

An electronic document (for example, an electronic order acknowledgment) that consists of an organization and a message.

Incoming and/or outgoing messages are processed in specific libraries invoked by EDI communication sessions (for example, in the Sales Control (SLS), Sales Invoicing (SLI), Accounts Payable (ACP), Cash Management (CMG), Purchase Control (PUR), Inventory Handling (INH), and Electronic Data Interchange (EDI) modules).

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

The period of time defined by the effective date and expiry date in which a record is valid.

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.

The computer-to-computer transmission of a standard business document in a standard format. Internal EDI refers to the transmission of data between companies on the same internal company network (also referred to as multicompany). External EDI refers to the transmission of data between your company and external business partners.

The smallest part of an element structure. An element is used to define the (structure of the) work of the project, so that you can carry it out.

An activity type that specifies an e-mail created for a contact, business partner, opportunity, or activity that you want to record in LN. E-mails can be created to send them, but also to manually register received e-mails. An e-mail has selected recipients.

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

The number that identifies an employee.

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.

Reusable items used to produce or to ship goods for a project. Equipment is not consumed while the project is carried out. Equipment can be internally owned or externally rented. Equipment items can range from tools such as electric drills and wheelbarrows, to machines, large cranes, trucks, tug boats, and so on.

Reusable items used to produce or to ship goods for a project. Equipment is not consumed while the project is carried out. Equipment can be internally owned or externally rented. Equipment items can range from tools such as electric drills and wheelbarrows, to machines, large cranes, trucks, tug boats, and so on.

A means to compare estimates. An estimate can have various versions. Each version is stand-alone and is not derived from the previous version. A version can, however, be copied or compared.

A deviation of an effective item's standard configuration. An exception indicates, for example, whether a specific BOM line or a specific routing operation is used for an effectivity unit. Exceptions are often created as a result of customer requirements, or technology upgrades.

A document type or material that must be excluded from the material price calculation.

If an approval rule is based on exception rules, LN automatically approves a purchase order that does not meet a valid rule. If you define approval rules based on exception, you define for what combination of data elements you do not want LN to approve the purchase order.

A way to group currency exchange rates. You can assign different currency exchange rates to different invoice-to business partners and/or to different types of transactions (purchase, sales, and so on).

The date from which a record or a setting is no longer valid. The expiry date often includes the expiry 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.

The specific agreements within or in addition to the initial contract. An extension falls outside the initial contract with the sold-to business partner. Extensions can be assigned to the bottom-up budget.

LN distinguishes four extension types:

• Scope Change
• Provisional Amount
• Fluctuation Settlement
• Quantities to be Settled

The parts of projects for which special arrangements are have been made that concern invoicing, such as variations, provisional amounts, quantities to be settled, and fluctuation settlements. An extension can be attached to one or more budget lines.

The valid authorization for the business partner to start the production for a quantity of items required on a purchase schedule. The fab authorization is expressed as a cumulative quantity and is calculated using the fab period.

The date until which the fab authorization is valid.

The time period during which the supplier is authorized to manufacture the goods required on a schedule, calculated from the schedule issue date on for push schedules, and from the current date on for pull forecast schedules.

The fab period is expressed in a number of days.

Example

• CUM start quantity: 10000
• Schedule issue date/current date: 05.07.99
• Fab period: 20 days

Fab time fence   : 05.07.99 (+ 20 days) = 25.07.99.
Fab authorization: 10000 + 100 + 100 + 100 = 10300.

The funding source for the company. The factor is usually a bank or a commercial finance company that purchases the accounts receivable (sales invoices) from the company.

A specified area of a record used for a particular category of data.

An invoice that replaces a provisional invoice that was sent earlier. No modifications are allowed on final invoices.

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.

The department that determines the financial company to which the transaction must be posted and which is responsible for the tax declaration in the tax country of the order. The financial company's home country must be the tax country of the order. The financial department is an accounting office of the financial company.

If the financial company of the administrative department has a tax number in the tax country of the order, the financial department is the same department as the administrative department.

The transaction created to reflect a logistic event in Financials. The combination of a transaction origin (TROR) and the financial transaction (FITR) results in an integration document type.

A warehouse with warehouse type Financial. A financial warehouse is used to show the inventory levels and enable financial processing of owned inventory that is actually stored in a physical, that is, "real," warehouse belonging to another business unit or branch office within the same organization. The owning unit and the unit storing the inventory have their own p & l accountability.

A requirement that is handled as an actual order and that can be shipped.

The first available number within a series. When you create orders, and so on, this number is offered by default. Series enable you to group orders of the same type by assigning order numbers starting with the same figures.

Expenses that do not vary with the production volume. Examples of these costs are the depreciation costs of machines and buildings, rent, and property taxes. Operation rates and surcharges can be attributed to the variable costs or the fixed costs.

Antonym: variable costs

A predetermined, fixed quantity of an item for which planned or actual orders are generated. If the net requirements for the period exceed the fixed order quantity, a multiple of the fixed quantity is ordered.

Generated orders always have a fixed order quantity.

A classification of an item in terms of:

• Product density (pounds per square foot)
• Stowage (size, weight, and shape)
• Handling
• Liability (the item's value)

Freight classification is a criteria that is used to determine an item's transportation price. In LN, a freight class can also serve as a criterion that determines the planning group of order lines. Freight classes are mainly used in the U.S.

A commission to transport a particular number of goods. A freight order includes an order header and one or more order lines.

A freight order header includes some general information, such as the delivery date and the name and address of the customer who is to receive the goods listed on the freight order.

A freight order line includes an item to be transported and some details about the item, such as the quantity and the dimensions.

A freight order entry. Freight order lines include information about an item to be transported entered on a freight order. A freight order line originates from a purchase-, sales-, warehouse-, or planned distribution order, or can be created manually.

A rate that is used to calculate transportation costs for items listed on loads, shipments, and the following types of orders:

• Freight orders
• Sales orders
• Sales quotations

Freight rates are defined in freight rate books in Pricing. A freight rate is defined by distance, weight, and various other attributes.

Example

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

A freight rate book includes the following elements:

• A freight rate book header, which contains the code, rating method, distance unit, and free distance.
• One or more freight rate book lines, which contain the freight rates for a combination of attributes such as carrier and service level.

The freight rates specified in a freight rate book are subject to a minimum or maximum weight, distance, or additional rate value.

The number of days, calculated from the current date, for which you can no longer reduce the quantity of required items.

The number of days, calculated from the current date, for which you can no longer increase the quantity of required items.

The total time required to obtain an item that is not forecasted. This time is used to calculate the full cumulative order lead time for an item, which includes the cumulative lead time of purchased parts.

Example

For item A, the supplier communicated a supply time of 50 days. This is in fact a reduced lead time and is only possible because a three year forecast is sent to the supplier for this item. If additional quantities are needed, which are not included in the forecast, the supplier needs the full supply time, which is 300 days.

General archiving data includes master data from all LN application packages, such as Sales, Warehousing, Manufacturing, and Common.

The date the specific schedule is (re)generated.

An item that exists in multiple product variants. Before any manufacturing activities are performed on a generic item, the item must be configured to determine the desired product variant.

Example

Generic item: electric drill

Options:

• 3 power sources (batteries, 12 V or 220 V)
• 2 colors (blue, gray).

A total of 6 product variants can be produced with these options.

A product variant that is generated from customer specifications can have a detailed sales price based on the selected options. Purchase prices for generic items can also be generated. The purchase price is used to calculate the standard cost. Matrices can be defined if options exist for different product features that have mutual relationships that influence the purchase or sales price.

Represents a ledger account and the corresponding dimensions. GL codes are used to represent ledger accounts to users who are not familiar with the structure of the chart of accounts.

To specific logistic transactions, you can link a GL code. Such integration transactions are mapped directly to the ledger account and dimensions of the GL code, they are not included in the mapping process.

Functionality used to lay down, audit, and automate global trade compliance data, such as the international rules, regulations, and licenses required for conducting global trade. This data is used to validate items, business partners, and import and export documents, resulting in a success or failure for the compliance check. For example, if the compliance check results in a failure for a document such as an order or shipment, the document may be blocked and a user must take action.

Global trade compliance reduces the risk of trade delays, additional costs, or penalties for violating import or export regulations.

The total goods amount on the invoice. The goods amount consists of the net order-line amount excluding tax and the late payment surcharge. The amount is expressed in the invoice currency.

The total amount from which taxes, rebates, discounts, and so on are to be deducted to reach the net amount. The gross amount is calculated by multiplying the order quantity with the (book) price.

The sales revenue minus all manufacturing costs, both fixed and variable.

The full price minus the order line discount and the order header discount.

The earnings after direct costs of the goods sold are deducted from the sales revenue for a specific period.

A tax code that represents multiple individual tax codes. If more than one tax code applies to a transaction, you can link a group tax code to the transaction.

For example, a group tax code can contain tax codes for:

• Value added tax
• Withholding income tax
• Withholding social contribution

The highest fab authorization ever calculated on a purchase schedule, counted from the latest CUM reset date on.

The highest raw authorization ever calculated on a purchase schedule, counted from the latest CUM reset date on.

A reason for blocking an order or order line.

An order can be held for more than one reason at any point in the order procedure. For example, a sales order can be blocked due to credit checking (the order balance exceeds the customers credit limit) and due to margin control (the gross margin of the order is exceeded).

One of a company's base currencies in which LN registers and reports amounts.

In a multicurrency system, up to three home currencies can be defined:

• The local currency
• Two reporting currencies

A requirement that must be shipped as soon as possible.

The time interval between the arrival of the items and the actual storage in the warehouse.

An event-driven and XML-based messaging engine. This is the standard message bus. The message bus and its message standards provide the infrastructure for transporting messages to other application modules in a secure way.

Item price + material base prices.

This price does not include material price surcharges.

To measure, examine, test, or gauge one or more characteristics of a product or service. After doing this, you can compare the results with the specified requirements to determine whether conformity is achieved for each characteristic.

Inspection is often performed on delivered goods upon arrival.

An order used to structure the inspection of products that are purchased, produced, or sold.

A set of serialized items that have the same location and are owned by the same business partner. Grouping serialized items into an installation group enables you to maintain them collectively.

An incremental payment method used to spread invoice payments over a period of time. Installments enable you to send invoices for a sales order before or after the ordered goods are actually delivered.

A plan based on which installments are generated for an order. The plan includes configuration data for installments, such as when installments must be invoiced, the type(s) of installment that must be generated and the installment percentages. The installments are generated based on a Prorate method, which means the installment percentages are prorated across all order lines of an order.

Because the plan is considered an invoicing plan for an order, the installments are generated, maintained, settled, and corrected in Invoicing.

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 automatic postings in one financial company to intercompany billing and clearing accounts instead of invoices generated for sales/purchase transactions between the entities of two logistic companies.

You must define the logistic companies as affiliated-company business partners and you must indicate that intercompany settlements can be performed for the business partner.

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 distribution center where goods sent from the supplier are consolidated and often repacked before being shipped to the final destination at the customer's. An intermediate consignee is owned by the customer or a carrier acting on behalf of the customer.

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.

Receiving and sending messages between LN (logistic) companies on the same computer system. There is no intervention from any EDI translator/communication package.

The time required between the recognition of needs and the release of the purchase order. Internal processing time includes document preparation and sourcing.

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.

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.

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.

A method to calculate the inventory value.

The inventory is valued at either its standard cost or its actual receipt price. Because inventory value can change with time, the age of inventory needs to be noted. In LN, the following inventory valuation methods are available:

Valuation Method

A document stating a list of prices of delivered goods and services that must be paid under certain conditions.

The total unpaid invoice amount.

The currency in which the invoice amount is expressed.

The amount charged to a business partner.

The date on which the invoice is printed.

A schedule's total invoiced cumulative quantity, calculated from the CUM reset date on up to the last transaction date, which is the invoice date. Invoiced CUMs are updated as soon as a an invoice is approved by Financials.

The number of items actually billed.

The business partner that sends invoices to your organization. This usually represents a supplier's accounts receivable department. The definition includes the default currency and exchange rate, invoicing method and frequency, information about your organization's credit limit, the terms and method of payment, and the related pay-to business partner.

The identification of an invoice, which consists of the transaction-type code and the first free number in the series used for invoices for the order type.

The business partner to which you send invoices. This usually represents a customer's accounts payable department. The definition includes the default currency and exchange rate, invoicing method and frequency, information about the customer's credit limit, the terms and method of payment, and the related pay-by business partner.

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)

Identification code for an item (product, component, or part). The item code can consist of multiple fields or segments.

An external, alternate way of coding items. Coding systems can be general standard systems (such as EAN) or systems that are dependent on a specific business partner.

External, alternative methods of coding items. Item-code systems can be general standard systems (for example, EAN) or specific, customer-dependent or supplier-dependent systems.

The length, width, and thickness of items with a physical quantity that is set to Length, Area (m2), or Volume.

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.

An item-specific, overall logistic plan that contains planning data and logistic targets for sales, internal and external supply, and inventory. All planning data in the item master plan is specified by plan period. Enterprise Planning uses this data to carry out master-planning simulations.

Within the item master plan, you can distinguish the following subplans:

• demand plan
• supply plan
• inventory plan

In addition, an item's master plan contains information about actual demand, actual supply, planned supply in the form of planned orders, and expected inventory.

If an item has a master plan and channels have been defined for this item, each channel usually has its own channel master plan. A channel master plan contains channel-specific information only, that is, demand data and information about sales restrictions.

Item master plans and channel master plans are defined within the context of a scenario. These scenarios can be used for what-if analyses. One of the scenarios is the actual plan.

The quantity of a material that is part of an item.

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

A classification of items used to identify if the item is, for example, a generic item, a service item, or an equipment item. Depending on the item's type, certain functions will only apply to that item.

The names of functions or titles of employees in an organization, for example sales manager, financial director, or accountant.

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.

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.

The total of all costs that are associated with the procurement of an item until delivery and receipt in a warehouse. Landed costs typically include freight costs, insurance costs, customs duties, and handling costs.

In LN, landed costs can be part of multiple landed costs sets.

Attribute that allows users to link a logistic transaction to a specific landed costs set, overruling the landed costs settings of that transaction. If required, users can specify a landed costs classification and use this classification on the transaction.

The language in which the company communicates and in which the work instructions are printed.

The percentage that is charged over the goods amount or over rendered services that the recipient of the invoice must pay if the invoice is not paid within a specified period.

An identifying code and description of the layout properties of a report, such as paper size, font, range of data, column headings, and data.

The general memoranda mailed to relations and contacts (whether within the framework of an opportunity or not) that can be printed and composed by using variables.

A data field whose information is updated and set aside for statistics overviews. It can be regarded as a pre-selection of statistics information, which can be fine-tuned later by means of sorts.

A special offer on a sales order line that reduces the price of the original item by a percentage or monetary amount, or that offers premiums with the purchase of the original item.

A group of customers, suppliers, or employees that work in the same business sector.

Lines of business can be used as selection criteria when generating reports or inquiries of statistical and historical data.

A work center that is part of an assembly line. A line station is used in the production of FAS (final assembly schedule) items. A line station can have multiple positions, which enables more than one item to be present in one line station.

A way to group list items. For example, you can use an SLS list group to group list items used on sales orders. A list item can belong to different list groups.

A type of item that consists of multiple components. The components can also be managed and ordered separately. The type of list item (kit, menu, options, or accessories) indicates how the components are related.

List items are used to speed up the order-entry process. The order lines for a list item can contain main items or components.

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 currency of the country in which the company is located. Otherwise, the currency in which you report to the local tax authorities.

In a multicurrency situation, you can use three home currencies. The three home currencies that you can define for a company are:

• The company's local currency
• Reporting Currency 1
• Reporting Currency 2

The process of storing every single transaction in a log file.

Conditions that must be formally agreed upon between a supplier and a customer regarding logistic data, such as schedule messages, frozen periods, authorizations, delivery patterns, carrier, and so on.

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.

The identification code for the LN user. This code is used for system security.

A number of items produced and stored together that are identified by a (lot) code. Lots identify goods.

A list of the lot codes and/or serial numbers of an item on a sales order line. The lot and serial set can be used in invoicing or after-sales service.

An item that is subject to lot control.

The specific conditions that can be established for lot items on order lines.

These conditions are:

• Any

  The goods to be received or shipped are not subject to specific lot conditions. You can use more than one lot.

• Same

  You can select any lot for receipt or shipment, but the entire receipt or shipment must have the same lot.

• Specific

  You can receive or ship only one, specific lot.

The lowest value or quantity for which you are allowed to add additional costs.

The lower margin is the percentage that the actual sales price is allowed to be lower than the target price. If this percentage is negative, the item can only be sold for a price higher than the target price. This is the case when the target price is the standard cost.

A valuation method that compares the inventory value based on one of the inventory valuation methods (see below) with the inventory's market value. If the market value is lower, the entire inventory of a specific item is valued in the balance sheet using the market value.

The following inventory valuation methods can be used to determine the inventory value:

Valuation Method

An activity type that specifies a standard letter printed for a contact, business partner, opportunity, or activity with specific business object information merged in. A mailing is always generated from an activity template.

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 actions required to restore an item to its serviceable condition. This includes inspection, modification, repair, overhaul, and servicing.

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

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.

A supplier of finished goods. User-definable item grouping data used for sorting and selecting.

The unique identification of a manufacturer's item code, which is used in the item ordering and identification process.

The percentage that the net sales price is allowed to deviate from the target price.

The sales submodule that controls whether the sales order or quotation price of an item differs too much from the specified target price. The percentage that the net sales price is allowed to deviate from the target price is known as the allowed margin.

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.

A set of operations that can be carried out. The reference activities based on which operations are added to a master routing, must have the same characteristics, such as item, functional element, and service department.

Example

All the inspections, tests, cleaning activities, assembly activities, disassembly activities, and repair activities that you can carry out on an engine.

The raw materials, components, and subassemblies used to manufacture an item. A cost item, for example, electricity, can also be treated as a material.

The real price of a material from a material exchange for a specific date.

The fundamental price of a material, which is used as a basis for computing material price surcharges.

For materials with fluctuating prices, material base prices prevent high material surcharges and ensure realistic initial prices.

Example

For the item Copper Wire with Plastic Coating, the major part of the price includes the copper price. The minor part of the price includes the costs of the plastic coating and the production costs for coating the copper wire with the plastic.

If one meter of plastic coated copper wire costs $8.00, the price parts would be as follows:

• One meter of copper wire (1 kg) = $6.978
• Plastic coating = $0.422
• Production costs = $0.600

To prevent the initial price being low with only $1.022 and the (variable) material price surcharge being high with $6.978, you can specify an (approximate) material base price for copper of $6.500. As a result, the initial price is $7.522 (0.422 + 0.600 + 6.500) and the material price surcharge is $0.478 (6.978 - 6.500), which represent more realistic figures.

The price of a material, which can be the following:

• The material base price, if material actual prices are not applicable (yet)
• The sum of these components: material base price + material price surcharge+ material price surcharge costs, if material actual prices are applicable

A general arrangement by price list or business partner(s) and item or item group that includes the dates and preconditions used to retrieve materials and calculate material prices.

A surcharge on top of the material base price, which is calculated by subtracting the material base price from the material actual price. Because material actual prices fluctuate, material price surcharges vary.

A schedule on which forecasted information is provided about shipping times, delivery times, and quantities.

In general, a material release can be considered as a planning release. However, the material release can also contain the actual order.

A list of elements used to define a price, discount, promotion, or freight rate. The group of matrix attributes is identified by a matrix definition and type.

Imagine you are a furniture vendor and you decide to maintain your sales prices based on two elements:

• The specific item you sell.
• The way to handle payments.

In this case, the matrix type is Sales Price, the matrix definition is Furni (this name is user-definable), and the matrix attributes are Item and Payment Method.

In the Pricing matrix, you specify the values for the matrix attributes.

A set that groups matrix attributes of the same matrix type for use on matrix definitions.

The matrix attributes that you can specify in a matrix definition are determined by the attribute set that is selected in the pricing parameters for the matrix type.

Defines the group of elements (matrix attributes) that a Pricing matrix uses to determine a price, discount, promotion, or freight rate.

Imagine you are a furniture vendor and you decide to maintain your sales prices based on two elements:

• The specific item you sell.
• The way to handle payments.

In this case, the matrix type is Sales Price, the matrix definition is Furni (this name is user-definable), and the matrix attributes are Item and Payment Method.

For a matrix type, the order in which matrix definitions are searched for.

Defines the type of a matrix definition and is linked to a set of matrix attributes.

The following matrix types are available in Pricing:

• Sales Price
• Sales Line Discount
• Sales Total Discount
• Purchase Price
• Purchase Line Discount
• Purchase Total Discount
• Transfer Price
• Line Promotions
• Order Promotions
• Client Freight Rate
• Carrier Freight Rate

Each type has its own a selection of attributes. For a matrix type, the combination of a maximum of six attributes identifies the matrix definition.

The maximum percentage that can exceed ship-from business partner capacity.

The agreed maximum total quantity, expressed in the quantity unit. The maximum contract quantity must be greater than or equal to the agreed contract quantity.

The maximum quantity of items to be purchased or produced at once.

When planned orders are generated, the quantity of items to be purchased or produced at once is never more than the maximum order quantity. The maximum order quantity prevents the purchase or production of an item in quantities that are too large.

Units used to express measurements. The unit can be user-defined or selected from the list of units in Common.

A type of item that consists of a group of items with similar characteristics that are classified under one generic item to facilitate order entry. The items in the group can be selected separately.

Example

A monitor, a computer mouse and a CD player are defined as related items used to configure a personal computer. But, you can also select a computer mouse as a separate item.

The minimum percentage that can stay below ship-from business partner capacity.

The agreed minimum total quantity, expressed in the quantity unit. The minimum contract quantity must be greater than zero and less than or equal to the agreed contract quantity.

The minimum quantity of items to be purchased or produced. When planned orders are generated, the quantity of items to be purchased or produced is never less than the minimum order quantity. The minimum order quantity prevents the purchase or production of this item in quantities that are too small.

The status assigned to a purchase requisition when the requester changes a requisition header or line for a requisition with the Rejected status. The modified requisition can be resubmitted for approval.

A reason code that indicates why transportation takes place, for example, Repair, Sales, Transfer, and so on.

A set of manufacturer part numbers (MPNs) that belongs to a purchase order line or a purchase schedule line.

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 gross amount minus discounts. The net value is always stated in the transactional currency.

If multiple discount levels are used, the net amount is calculated from the gross amount minus discounts at previous levels.

A combination of multiple changes on the same entity. Two updates on the same data can be combined into a single update. When adding an entity and then updating it, the net result is a new entity. When adding an entity and then removing it again, the net result is empty. For example, first create a sales order, then add two order lines, then update the order header, then update one order line and delete the other order line. In this case, the net change will be a new sales order having one order line.

The date on which something changes that affects the current master plan or the current planned orders. For example, a higher demand or a change in a BOM.

When a net-change simulation is performed, then items are selected based on the net-change date and flag. For example, when the flag is set and the date is outside the order horizon, then the item is skipped.

The net order line amount, expressed in the transaction currency. This amount is calculated as follows:

Amount = (Quantity * Price) - Order Line Discount

The (book) price with all discounts applied. If no discounts exist, the gross price is equal to the net price. The net price is calculated as follows:

Net price = (book) price - line discount - order discount

The quantity of a component or material that is theoretically required to manufacture a certain quantity of a product.

This quantity is referred to as the net quantity because in practice you may require more than this quantity to make up for certain losses of material or product during the production process.

A schedule that contains lines without a reference number. Because no specific requirement exists for the schedule line, nonreferenced schedule lines can first be clustered and then ordered, shipped, and received together.

A customer-oriented contract, agreed upon by suppliers and customers, that is used to record specific agreements. A normal contract is usually valid for approximately one year.

A normal contract cannot be activated if another active contract exists for the same business partner in a specific period.

A text comment with log information, which can be linked to an object.

Multiple notes can be linked to an object.

A group of first free number series that you can assign to a specific use.

For example, you can assign a number group to:

• Business partner codes
• Purchase contracts
• Sales orders
• Production orders
• Service orders
• Warehousing orders
• Freight orders

Within a number group you can define multiple series. Each series is identified by the series code. The series numbers that LN generates consist of the series code followed by the first free number in the series. Series codes of the same number group have the same length.

A criterion for which the score is calculated automatically from the data in the system.

The process of planning backwards to look for a valid delivery moment on which requirements can be delivered in time. Based on the generated delivery moments, requirements are clustered in Enterprise Planning.

Example

A business partner that represents temporary contacts. For example, if you occasionally sell goods to individuals with whom you do not have a permanent business relationship, you can define them as a one-time business partners.

The balance of all unpaid invoices relating to one particular business partner.

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 company to which a department, warehouse, or project belongs. In most cases, this is the logistic company in which the department, warehouse, or project was created. Logistic transactions originating from a department, warehouse, or project can only be created in their operational company.

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

Used by a sales person to record and monitor sales information related to a business partner with the purpose of selling a product or service to this business partner.

A way to classify opportunities with similar characteristics for sorting and selecting purposes.

A generic item type that differs from other similar items by one or two features. For example, a group of chairs with similar main characteristics can differ in size and color.

The identification of the options and features for a configured item. The ID is used in the item specification to match supply and demand.

A general term that covers all types of orders, such as:

• Purchase orders
• Sales orders
• Warehouse orders
• Production orders
• Subcontracting orders
• Freight orders
• Service orders

The document that confirms the sale of goods to a sold-to business partner according to the listed delivery terms.

The balance of outstanding orders.

A planning concept in which planning data is handled in the form of orders.

In order planning, supply is planned in the form of planned orders. LN takes into account the start and finish dates of individual planned orders. For production planning, this method considers all material and capacity requirements, as recorded in an item's BOM and routing.

The date on which the buy-from business partner confirmed the purchase order, or the date on which the sales order is confirmed to the sold-to business partner.

The order confirmation date is used for the calculation of order confirmation objective ratings in vendor rating. The buy-from business partner is given a rating according to the time interval between the order date and the order confirmation date.

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

In this supply system, items that are required at a particular line station of the assembly line are called off at an earlier line station, called the trigger-from station. The number of items that is called off depends on what is needed on the assembly line in a specified time fence, called the maximum time interval.

In general, the items that are supplied to the shop floor warehouse by batch, are fast movers and are processed in high volumes. There is no direct link between these items and the assembly orders they are used for. In addition, one warehouse order set can be used to supply the goods needed by several assembly orders.

A demand-pull system that regulates the supply of items to shop floor warehouses in the sequence in which they are needed.

In this supply system, items that are required for a specific assembly order, and at a particular line station of the assembly line, are called off at an earlier line station, called the trigger-from station. The number of items that is called off depends on what is needed for specific assembly orders in a specified time fence, called the maximum time interval.

In general, the items that are supplied to the shop floor warehouse by SILS, are fast movers and are processed in high volumes. There is a direct link between these items and the assembly orders they are used for. In addition, one warehouse order set can only supply the goods needed by one assembly order.

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

The quantity that must be delivered according to the terms on the order line. The quantity is expressed in the purchase unit or the sales unit of the item.

The production time of an item expressed in hours or days, based on the lead time elements as defined in the routing operations.

The time required to obtain a purchased item, subcontract a service, or rent a piece of equipment. This time includes order document preparation, sourcing, and supplier lead time.

A special offer on a sales order that reduces the total order price by a percentage, or that offers a premium.

A percentage or amount subtracted from the amount of an order line.

The discount amount resulting from the order line discount. This amount is calculated as follows:

Order Line Discount Amount = Quantity * Price * Order Line Discount/100

The calculation result is rounded. The order line discount amount is always expressed in the order/quotation currency.

The order parameter that controls the ordered quantities of recommended purchase and production orders.

Options:

• Lot-for-lot
• Economic order quantity
• Fixed order quantity
• Replenish to maximum quantity

The source of the information on which an order is based, such as LN sessions, or user defined sources such as phone, mail, and so on.

The order parameter that controls the way an item is produced or ordered.

This can be:

• Anonymous, the item is produced or purchased independent of customer orders.
• To order, the item is produced or purchased only if customer orders exist for the item.

A simulated activity that enables you to calculate the priority sequence in which inventory is allocated to orders.

The quantity for which the inspection is required. Consequently, the result of the inspection order concerns the quality of this quantity.

A group of order numbers or document numbers starting with the same series code. The numbers consist of 9 characters.

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).

The order parameter that controls the way by which recommended purchase and production orders are generated.

Options:

• FAS (final assembly scheduling).
• SIC (statistical inventory control).
• Planned (schedule-based and order-based planning).
• Manual (manual reordering).

A code used to determine the character or function of an order and, consequently, of the message.

Examples:

• Normal order versus return order
• Invoice versus credit note

The classification that determines which sessions (in which sequence) are part of the order procedure. You can also assign one of the following categories to the order type: cost order, collect order, return order, and subcontracting order.

Order type codes are required in the ERP EDI messages that relate to a single order. EDI messages that relate to single orders include messages that process:

• Orders (ANSI X12 850, UN/EDIFACT ORDERS).
• Order changes (ANSI X12 860, UN/EDIFACT ORDCHG).
• Order acknowledgments (ANSI X12 855 and 865, UN/EDIFACT ORDRSP).
• Invoices (ANSI X12 810, UN/EDIFACT INVOIC).

A group of orders that are processed according to the same procedure (series of order steps = sessions). In addition, these orders share a number of other characteristics (return order y/n, collect order y/n, subcontracting order y/n, and so on).

A classification of sales and/or purchase orders with similar work flows.

Order types determine the character or function of an order and, consequently, of the message. Order types prescribe the chronological order of the sessions (order steps) in the order procedure. The main point is, that you must carry out order steps successively to process a purchase or sales order.

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 time interval between taking the items out of the warehouse and the departure of the carrier on which the items are placed.

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.

A positive deviation from the original ordered quantity.

The invoice that has been left unpaid too long.

A particular configuration of items and their packaging. A package definition for an item can, for example, be the following: a pallet contains 12 boxes and each box contains 4 pieces.

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.

A package building criterion, which refers to the distribution zone or routing code.

A package building criterion, which refers to the consumption point or point of destination.

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.

Data that influences the way a package or module operates. You define parameters in the Parameters session of a package or module to adapt the parameter to the specific requirements of your organization.

Generic term to indicate parent and child elements in any multilevel structure. For example, this relationship is used for companies, financial accounts, dimensions, product families, customers, suppliers.

The business partner that links the various business-partners with different roles in a distributed business partner organization.

If you define branches of one company as different business partners, the business partners must all have the same parent business partner.

A subjective criterion to which one or more other subjective criteria are linked in a tree structure.

The delivery of a part of the total order quantity.

A scheme on which you can define the day of the week, day of the month, or day of the year, and the time of the day you want an activity, such as a release or a delivery, to be carried out.

The code used to identify the pattern for your activities. The pattern defines the date and time, such as the month or the day of the month, on which you want to carry out the activity.

The business partner from whom you receive payments. This usually represents a customer's accounts payable department. The definition includes the default currency and exchange rate, the customer's bank relation, the type of reminders you send to the business partner, and the frequency of sending reminders.

A way to define how invoice amounts must be paid. This includes the payment methods that apply to various parts of the invoice amount, and the payment currency.

For example, you can define a payment agreement to pay the first part of the invoice amount through the bank according to payment method PM1, 40 percent of the remaining amount, according to payment method PM2, and the other 60 percent according to payment method PM3, which can be a trade note payable.

The way in which the payment (purchase invoice) or the direct debit (sales invoice) takes place. The payment method defines details such as, the maximum amount, the type of due date, if foreign currencies are allowed, and which details must be printed on the report.

These details are default values that you can change on the order or invoice as necessary.

The method used to create a payment (purchase invoice) or a receipt (sales invoice).

The payment method defines details such as:

• The maximum amount
• The due date
• Allowance of foreign currencies and other details which must be printed on the report

These are default values that you can change on the order or on the invoice.

Agreements about the way in which invoices are paid.

The payment terms include:

• The period within which invoices must be paid.
• The discount granted if an invoice is paid within a given period

The payment terms allow you to calculate:

• The date on which the payment is due
• The date on which the discount periods expire
• The discount amount

The business partner to whom you pay invoices. This usually represents a supplier's accounts receivable department. The definition includes the default currency and exchange rate, the supplier's bank relation, the number of days within which you must pay the invoices, and if the business partner uses a factoring company.

A combination of project/budget, element and/or activity, which is used to identify costs, demand, and supply for a project.

The status assigned to a purchase requisition when the requester submits a requisition with the Created or Modified status for approval.

A code used to record (by organization) types of time periods and their associated description. For example: days, weeks, and quarters.

Periods divide a year into regular intervals, such as weeks, months, or quarters, that can be used for statistical, hours accounting, planning, and cost controlling purposes.

A table that consists of any number of time units, for example, months or weeks.

A period is used to define the time horizon during which, for example, a schedule is valid.

An alphanumeric code that identifies a group of defined time intervals.

Permissions are the authorization roles, rules, and policies for a specific business process. The permissions are assigned to employees. The permissions are used to specify the authorization level, that is, if an employee can view, edit, or modify the data of a business process. For example, you can access the projects of a specific Enterprise Unit in a Project session. However, based on the permissions you can only view, but cannot modify the project data.

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.

The identification of a stage or phase in the sales process. For example, analysis, proposal, negotiation, and so on.

The telephone number, including area code, at the contact's work location.

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.

The dimension of the unit. For example, the dimension of kilometer is length, and the dimension of liter is volume.

A list of items to be picked-up at the supplier’s location by a specific carrier for transport to the customer on a specific day.

An item with the order system Planned.

The production, distribution, or purchase of these items is planned in Enterprise Planning based on the forecast or the actual demand.

You can plan these items by means of the following:

• Master-based planning, which is similar to master production scheduling techniques.
• Order-based planning, which is similar to material-requirements planning techniques.
• A combination of master-based planning and order-based planning.

Plan items can be one of the following:

• An actual manufactured or purchased item.
• A product family.
• A basic model, that is, a defined product variant of a generic item.

A group of similar plan items or families is called a product family. The items are aggregated to give a more general plan than the one devised for individual items. A code displayed by the item code's cluster segment shows that the plan item is a clustered item that is used for distribution planning.

The planned date on which the items on the order/schedule line must be delivered. The planned delivery date cannot occur before the order date/schedule generation date.

The expected changes in the inventory levels due to planned orders for items.

The date and time loading is planned at the ship-from location.

A supply order in Enterprise Planning that is created for planning purposes, but which is not an actual order yet.

Enterprise Planning works with planned orders of the following types:

• planned production order
• planned purchase order
• planned distribution order

Planned orders are generated in the context of a particular scenario. The planned orders of the actual scenario can be transferred to the execution level, where they become actual supply orders.

A planned order in Enterprise Planning to purchase a certain quantity of an item from a supplier (buy-from business partner).

An anticipated receipt that corresponds to an open purchase order or open production order.

The planned date on which the items on the order/schedule line are planned to be received. The planned receipt date cannot occur before the order date/schedule generation date.

The date on which the goods are expected to arrive in the destination warehouse.

A requirement that is communicated to a business partner for information and planning purposes only.

The planned date on which the items on the order/schedule line must be shipped/picked up at the ship from business partner's location. The planned shipment date cannot fall before the order date.

The date and time unloading is planned at the ship-to location.

An order created in Sales that forms the basis for most schedule-related processes. Planned warehouse orders, which are created during sales schedule approval, decouple schedule updates and revisions from warehouse orders. They serve as the interface between Sales on one hand and Warehousing and Invoicing on the other hand.

The employee or department responsible for planning the production, purchase and distribution of items. The planner takes into account the inventory levels, availability of materials, and capacities of resources, and reacts on signals such as rescheduling messages that LN generates.

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.

The point at which the legal ownership changes. At this point, the risk passes from the seller to the buyer.

The warehousing order line number. If the order is generated by a package other than Warehousing, this number is the same as the original order line number.

The number used to identify the position of the order line on the sales or purchase order.

The address all mail (for example, order acknowledgement, invoices) is sent to as defined for customers or suppliers. You can also record extra order-specific addresses.

A backorder that must be manually confirmed and that can be modified by the user.

The following can result in a potential backorder:

• The received quantity of the purchase order line is less than the ordered quantity at the time of delivery date.
• The received quantity is partially rejected during inspection.
• The received quantity is equal to the ordered quantity, but the user changes the backorder quantity from zero into a higher value.

A free item that is offered to the customer as part of a promotion.

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.

Group of items with the same prices and discounts. Price groups for customers are linked to items in Item Sales Data. Price groups for suppliers are linked to items in Item Purchase Data. The price groups are used in price and discount matrices.

A group of items to which the same pricing characteristics apply.

List of default prices and discounts for customers and suppliers. You can link price lists to items and item groups, and to sold-to and buy-from business partners.

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

A categorization of the price based on the phase of the price negotiation process. Using price stages, companies can negotiate the price while continuing the order process with restrictions. The order processing restrictions that apply to the price stage are specified in the linked blocking definition.

Example

The unit to which the (sales/purchase) price applies.

Enables you to define prices and discounts in a flexible way. A basic price is retrieved from a predefined price book.

If pricing matrices are used, depending on the matrix type and by using a matrix definition, the different elements of the item file, business partner, and sales or purchase order (line) can be combined at various levels.

Pricing information includes prices, discounts, promotions, and freight rates. If pricing matrices are used, pricing information is maintained for sets of attributes and values. The attributes are defined in matrix definitions and the values in the relevant pricing matrix.

Example

You can define a price for the following attributes and values:

The fixed jobs that print or process data in batch. A job can be repeated whenever desired or used for checking purposes.

An option that enables you to add a certain rating for suppliers. If the priority is defined, the item/supplier combinations are sorted according to descending priority.

A schedule's total required CUM calculated from the last CUM reset date through the (next) schedule issue date.

In contrast to required CUM, prior CUM also includes the requirements of released schedule lines for which no receipts are booked yet.

The status assigned to a purchase requisition when the buyer converted all lines of the requisition to a request for quotation (RFQ) or a purchase order.

User-definable item grouping data that is used to distinguish between different groups of items in a product line. The product class is mainly used as a selection criterion for reporting.

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

A group of products made by the same producer, that are similar but differ in details such as, size, shape, color, and so on. User-definable item grouping data, mainly used as an item selection criterion for reporting.

The sequence of steps by which components are put together to form subassemblies, until the finished product is produced.

The product structure is defined by a multilevel bill of materials, sometimes in combination with routing data.

User-definable item grouping data that is used as a sorting and selecting criterion. The product type is intended for classifying items with similar characteristics for production purposes.

A unique configuration of a configurable item. The variant results from the configuration process and includes information such as feature options, components, and operations.

Example

Configurable item: electric drill

Options:

• 3 power sources (batteries, 12 V or 220 V)
• 2 colors (blue, gray).

A total of 6 product variants can be produced with these options.

Product variant codes identify the separate product variants.

A sales invoice which can be changed prior to printing the final invoice.

An endeavour with a special objective to be met within the prescribed time and money limitations and that has been assigned for definition or execution.

A collection of manufacturing and purchasing actions that are performed for a particular customer order. A project is initiated to plan and coordinate the production of the to be manufactured items.

For a standard-to-order production, the project is only used to link the item with the customer order. A project can also include these:

• Customized item data (BOMs and routings)
• Project planning (activity planning)

An endeavor with a specific objective to be met within the prescribed time and financial limitation, and that has been assigned for definition or execution.

An activity that is relevant for the (rough) planning of a project. Activities are used to plan the rough material and capacity requirements of the project. Activities are also used to control the (final) assembly planning of the project.

A separate part of the project structure that is linked to a project. A project part is the basis that is used in order to determine the estimated costs of a project. Not to be confused with a subproject.

The project structure indicates the subprojects that belong to the main project. Project structures are especially important where there are extensive projects in an engineer-to-order situation.

Project structures can be important for network planning. This is because the start dates and finish dates of subprojects can depend on the computed start dates and finish dates of the main project's activities.

The costs of subprojects are aggregated to the relevant main project in the project calculation.

The project structure only applies to a project with a type other than Budget.

You can only delete a project structure if the main project has the Free or Archived status.

A status that informs you about whether a sales quotation line, sales order line, or sales component line can be promised to a customer, or whether inventory checks must still be carried out or insufficient inventory situations must still be resolved for the line.

The application of an additional discount, value off, or premium to a sales order based on predefined order levels of selected items. Two basic types of promotions exist: order level and line level.

A type of special contract that applies to each sold-to business partner. As a result, the sold-to business partner is not entered in the contract.

An entity in which items, sold-to business partners, or promotions that share the same promotion attribute values are maintained.

Two types of pull schedules exist:

• Pull forecast schedules

  A list of time-phased planned requirements, generated by Enterprise Planning, that are sent to the supplier. Pull forecast schedules are only used for forecasting purposes. To actually order the items, a pull call-off schedule must be generated.

• Pull call-off schedules

  A list of time-phased specific requirements of purchased items, triggered from Assembly Control, or Warehousing (KANBAN, Time-phased order point).

Identifies purchasable items. A purchase catalog is defined as a main category and as a purchase category.

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.

An agreement with a supplier for the supply of goods or services.

The purchase contracts that have been added, changed, copied, or deleted. Whenever a transaction is made to the purchase contract (line), LN writes a copy of the transaction to the history.

The agreement with a supplier about a certain item. A purchase contract line contains both commercial and logistic conditions related to the supply of one item, during a period of time.

In case of a corporate purchase contract, the purchase contract line is a Total line, because it has linked purchase contract line details.

The agreement with a supplier about a certain item for a specific location (warehouse). A purchase contract line detail contains quantity and logistic conditions related to the supply of one item by a specific warehouse, during a period of time.

Contract line details can exist only for corporate purchase contracts.

The monetary unit in which the purchase price is expressed.

An item that is typically procured from an outside source. A bill of material and routing can be linked to a purchased item.

Purchased goods that are received, inspected (if required), and posted to inventory are placed on a purchase invoice. You must pay the buy-from business partner for the quantity on the invoice.

The buy-from business partner, order, item data, prices, and discounts are printed on the invoice. You can compare the data on the invoice to the invoice you receive from the buy-from business partner.

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, clearly identified in the company business model, that manages business partner purchase relationships. This department identifies the location from which a purchase requisition is initiated. Purchase office information is used to convert the requisition to a purchase order or request for quotation (RFQ).

An agreement that indicates which items are delivered by a buy-from business partner according to certain terms and conditions.

A purchase order contains:

• A header with general order data, buy-from business partner data, payment terms, and delivery terms
• One or more order lines with more detailed information about the actual items to be delivered

A message that suppliers send to the purchaser to confirm the receipt of the purchase order, which usually implies the acceptance of the order by the supplier.

Suppliers can change the purchase order data in the order acknowledgment according to:

• Their company's terms and conditions.
• Former agreements with the purchaser.

A recommendation based on the economic stock and the reorder point of an item. Purchase order advices must be confirmed and transferred to convert them into actual purchase orders.

The general information of a purchase order.

A purchase order header contains, among other things:

• General order data
• General buy-from business partner data
• Payment terms
• Delivery terms

The purchase orders that have been added changed, copied, or deleted. Whenever a purchase order line is maintained the system writes a copy of it to the history. A copy is created for each transaction.

The lines on purchase orders that record detailed information about, for example:

• The ordered items
• The price agreements
• The delivery dates
• Shipping
• Invoicing

You can have one or more lines on a purchase order.

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

The unit in which item dimensions are expressed on purchase orders.

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.

The price you pay for an item, expressed in the purchase currency.

The item unit in which an item's purchase price is expressed. This unit can differ from the item's inventory unit.

The factor by which purchase transaction amounts in a foreign currency are multiplied to produce the amounts in the home currency.

A purchase release is used to send out, under one release number, those schedules that share the following common characteristics:

• Buy-from business partner
• Ship-from business partner
• Ship-to address
• Release type (material release/ shipping schedule/ sequence shipping schedule)
• Shipment based schedule/ receipt based schedule
• Communication method
• Warehouse

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 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 purchase order property that enables you to identify the kind of purchase made and in this way, the kind of payable. This property is used to post the purchase to the correct Accounts Payable account when the invoice is created. To post a purchase invoice, LN retrieves the control account from the purchase type linked to the purchase order line.

The unit in which you purchase an item, also referred to as the purchase quantity unit.

A list of time-phased requirements, generated by a central planning system, such as Enterprise Planning or Project, that are sent to the supplier. Push schedules contain both a forecast for the longer term and actual orders for the short term.

A push schedule can use one of the following release types:

• Material Release: only material releases are sent. Shipping is performed based on the Firm and Immediate requirements in the material release.
• Shipping Schedule: both material releases and shipping schedules are sent. Shipping is carried out based on the Firm and Immediate requirements in the shipping schedule. The material release only sends forecasting data.
• Shipping Schedule Only: only shipping schedules are sent. Shipping is carried out based on the Firm and Immediate requirements in the shipping schedule. No forecasting data is sent to the supplier.

The minimum quantity that a supplier must deliver. The minimum quantity tolerance is expressed as a percentage of the ordered quantity.

The maximum quantity that a supplier can deliver. The maximum quantity tolerance is expressed as a percentage of the ordered quantity.

A type of warehouse location in which goods initially rejected during warehousing inspection or production are stored for further examination to determine their disposition.

A written proposal that offers goods or services for a certain price and terms of sale to a prospective purchaser upon request.

A header that contains the general data related to the sales quotation, such as payment terms and delivery terms.

The lines used to record the items offered, as well as the associated price agreements and quantities. A sales quotation includes one or more quotation lines.

The exchange rate (purchase or sales) of currencies.

A code in LN representing a combination of a freight class, transport means group, transport type, and/or planning group.

In Freight, rate basis numbers are used to determine the carrier rates for the following entities:

• Shipments
• Loads
• Sales order lines
• Sales quotation lines

A rate basis number is allocated to a shipment, load, order line, or quotation line if the freight class, transport means group, transport type and/or planning group of the shipment or load match those defined for the rate basis number.

In Pricing, freight rate books are linked to rate basis numbers. A rate basis number allocated to a shipment, load, and so on, will in turn point to a freight rate book from where freight rates can be picked up.

The method to decide which date is used to determine the exchange rates.

During the composing process, all amounts in foreign currencies are converted to the home currency, based on the determined exchange rate.

The factor by which the amount in the transaction currency or the invoice currency is divided before LN converts it to a home currency. A rate factor is often used for currencies that have a relatively low price, for example, Korean Won.

The valid authorization for the business partner to buy the raw materials required on a purchase schedule. The raw authorization is expressed as a cumulative quantity and is calculated using the raw period.

The date until which the raw authorization is valid.

The time period during which the supplier is authorized to procure the raw materials required on a schedule, calculated from the schedule issue date on for push schedules, and from the current date on for pull forecast schedules.

The raw period is expressed in a number of days.

Example

• CUM start quantity: 10000
• Schedule issue date/current date: 05.07.99
• Raw period: 20 days

Raw time fence   : 05.07.99 (+ 20 days) = 25.07.99.
Raw authorization: 10000 + 100 + 100 + 100 = 10300.

A user-defined standardized description of the reason for a particular decision or choice. A reason's type determines for which purpose you can use that reason.

To include additional information about an action, you can select and enter a reason from a list. LN can also print the reason in the relevant report.

A user-defined description that is based on a transaction and its type. Reason codes assist in selecting data for inquiry and for reporting.

The reason why received goods did not pass the inspection.

The amount of money to be paid to a sold-to business partner as a kind of discount for closing a sales order.

An agreement on the bonus (discount) to be paid to a customer for the sale of a particular item (or item group).

The amount of money to be paid to a sold-to business partner as a kind of discount for closing a sales order.

The physical acceptance of an item into a warehouse. A receipt registers: received quantity, receipt date, packing-slip data, inspection data, and so on.

The date on which the items are actually received in the destination warehouse.

The sequence number assigned to every individual receipt of goods.

A schedule's total received cumulative quantity, calculated from the CUM reset date on up to the last transaction date, which is the receipt date. Received CUMs are updated as soon as receipts are made for the schedule line(s).

The quantity delivered by the supplier identified in the purchase unit or the inventory unit.

To match related financial data from different sources to detect differences. Usually, reconciliation results in a report that you can use to view the matched data, the totals, and the detected differences.

For example:

• To compare the cash balance as reported by the bank with the cash balance of the company's books.
• To compare the logistic transactions with the related postings in Financials.

A number that, if determined by Assembly Control, refers to a unique combination of line station, assembly kit, and parent serial number.

A number that, if determined by Purchase Control, refers to a unique purchase schedule call-off that is generated from Warehousing.

Any informative description field used to refer to, for example:

• The person or department with authorization to perform a specific task.
• The business partner's contact.
• The original invoice number.

The first extra reference by which the order or request for quotation can be identified. This reference is printed on various order documents and lists.

The smallest unit of work that is required to carry out maintenance.

A group activity or a single activity (directive) that is planned for a serialized item or installation group.

The second extra reference field that you can fill with extra information. This reference is printed on the order documents and lists.

The currency in which balances of entities shared by all the companies of a financial company group are expressed. For example, LN uses the reference currency for business partner balances.

The date that determines which orders are printed on the reminder. All orders that are not yet delivered and have a confirmed or planned delivery date before or equal to the reference date, are printed on the reminding note.

A schedule that contains lines with reference numbers. When goods are shipped, received, and invoiced, the reference numbers are used to communicate with suppliers and other LN packages.

The process of rearranging schedule lines and moving the lines in time.

Regeneration is only carried out for non-referenced schedules.

The status assigned to a purchase requisition when an approver rejects a requisition with the Pending Approval status.

The number of delivered items that is rejected.

A shortened term for trade relation. Relation is a collective term for an employee or buy-from business partner that is entitled to a commission, and a sold-to business partner entitled to a rebate. Relations can be grouped in a relation team for the purpose of assigning the same agreement structure.

A function used to group relations so that multiple relations can be linked to a sales order. As a result, the appropriate relations will be rewarded for the sales activities that concern a specific sales order.

A classification that determines whether a commission or a rebate is involved, as well as how commissions are to be paid. The relation is a sold-to business partner to whom a rebate is granted, or a buy-from business partner (agent) or an employee (representative) to whom commission is paid.

A number used to identify the position of a purchase schedule in a purchase release. Each release line receives a separate release position number.

A number that uniquely identifies the revision of the release. The release revision number indicates the updates that are sent to the business partner.

A classification used to specify the type of the release based on which schedule requirements are grouped and EDI messages can be generated. These messages are indicated by the used schedule.

A purchase order document that urges the supplier to deliver the ordered goods under the conditions agreed upon.

A subcontracting document that contains agreements about how the payment for a project will take place. For example, the remittance agreement states that part of the invoice amount must be paid to the subcontractor's industrial assurance board (IAB) and to the tax authorities.

A price book that is used to store internal fixed repair prices.

You can make a repair price book distinctive by its description.

Copy an existing structure into another existing structure, replacing the current structure of the target category.

In LN, a general term for the output of a print session.

A purchasing document that is used as a request to bidders to submit their terms, such as price, discount, delivery time, and payment terms for delivering a (quantity of a) product.

You can send the RFQ to several bidders. A bidder can submit an RFQ response for the specified items.

You can record the responses, negotiate, and compare the prices and discounts that are offered by different bidders.

An accepted response can be copied to a contract, an order, or a price book.

The lines that include the item details in a request for quotation (RFQ), such as required quantity, time to be delivered, delivery warehouse and so on.

The item lines are sent to the bidder. The bidder can respond to each item individually and also offer alternatives for the required item.

The date on which the request for quotation is specified.

A schedule's total required cumulative quantity, calculated from the CUM reset date on up to the planned requirement date, which is the planned delivery date or planned shipment date. Required CUMs are updated as soon as receipts are confirmed for the schedule line(s).

The business reason that you define to describe exceptions used in unit effectivity. A requirement can be, for example, a specific market, model, or customer.

Three requirement types exist that represent a requirement in time, used for scheduling.

The available requirement types are:

• Immediate
• Firm
• Planned

For non-referenced schedules, requirement types are linked to segments.

For pull forecast schedules, the requirement type is always Planned or Immediate. For pull call-off schedules, the requirement type is always Firm.

The last date on which the bidder can submit an RFQ response on the request for quotation.

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 note that accompanies purchased goods when they are rejected in an inspection and must be sent back to the buy-from business partner.

A purchase or sales order on which returned shipments are reported. A return order can only contain negative amounts.

The reason why the delivered goods are rejected and returned.

A version or revised version of an engineering item (E-item) or a revision-controlled item, that is, an item linked to an E-item. Several revisions of an E-item can exist.

Example

E-item: Mountain bike E-MB01

The revision-controlled items are items in continuous development. To identify the item's version, add a revision number to the item code.

If a revision-controlled item is selected, the current version is used. The obsolete versions are no longer manufactured and prototypes are not sold yet.

Includes request for quotation (RFQ) criteria and can be linked to an RFQ header. Response lines are compared and ranked based on the objective and subjective criteria in the criteria set.

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.

Set of up to six ranges of values and their rounding values. Rounding codes can be linked to quantities and amounts. They are used when you calculate, for example, purchase prices and discounts, sales prices and discounts, and warehousing rates.

Example

A rounding code can define the following ranges with their rounding values:

• Up to 100: round to whole numbers
• From 100 to 100,000: round to a multiple of 5
• From 100,000 onward: round to a multiple of 100.

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.

Line of travel from your warehouses to the ship-to or ship-from business partner's warehouse and vice versa. Use routes to group business partners that are located in the same area or along one convenient route.

You can arrange addresses by routes to print picking lists and shipping notes sorted by route.

A network of loading and unloading addresses, one of which is a pooling point. A route plan is usually defined for routes that involve multi-modal transport. A route plan consists of one or more legs. Each leg, or part of the route, can be handled differently depending on the specified transport category and transport means group.

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.

A subset of master routing. A predefined set of operations that can be carried out. Each operation is identified by a unique sequence number.

An order that must be executed as soon as possible and that usually requires special payment and delivery terms.

The time that you can add to the normal lead time to protect delivery of goods against fluctuations in the lead time so that an order can be completed before the order's real need date.

A code that represents the reasons for a change of a sales order.

Identifies salable items. Only sales categories or items defined in the Items - Sales (tdisa0501m000) session can be included in sales catalogs. A sales catalog is defined as a main category and as a sales category.

A code that identifies a specific sales agreement. You can also link the customer, contract data, and sales representative to a sales contract code.

Sales contracts are used to register agreements about the delivery of goods with a sold-to business partner .

A contract is comprised of the following:

• A sales contract header with general business partner data, and optionally, a linked terms and conditions agreement.
• One or more sales contract lines with price/discount agreements and quantity information that apply to an item or price group.

Comprises general business partner data and data to identify general terms for the contract such as effective date and type of sales contract. Optionally, a terms and conditions agreement can be linked to the header.

A log file that contains information about all sales contracts that are created, modified, copied, or deleted. Whenever a sales contract is maintained, LN writes a copy of that contract to the history. A copy is created for each transaction.

A log file that contains information about all sales contract lines that are created, modified, copied, or deleted.

The monetary unit in which the sales price is expressed.

A bill that relates to the sale of goods or services. A sales invoice is a document, sent by the seller to the buyer, for each sale containing details on the goods sold.

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.

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 header of a sales order contains general data.

An order that is not paid for immediately but in partial amounts or percentages of the total net amount.

You can send invoices for a percentage of the total net amount on the sales order, before or after the ordered goods are actually delivered. In this case, a number of installment lines is added to the sales order. An installment line consists of an amount and a number of additional details.

Billed installments are settled (subtracted from the goods amount) when the goods are delivered and invoiced.

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.

A unique control number assigned to each new customer order, usually during order entry. A sales order number is often used by order promising, master scheduling, cost accounting, invoicing, etc. For some make-to-order products, a sales order number can also be used as an end item part number and is considered the control number that is scheduled through the finishing operations.

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.

The price for which an item is sold.

The highest level used to record prices and discounts for a group of customers and/or suppliers. The price and discount can be determined by linking a price list code to a sales order.

Gives insight into the structure and composition of the sales prices for product variants.

The sales price structure:

• Is used when calculating the sales price for a product variant on a sales order or sales quotation.
• Provides insight into the price structure and can be displayed in the Product Variant Sales Price Structure (tipcf5530m000) session. In addition to or instead of the product variant options, it can be printed on sales order documents.

A standard sales methodology that must be followed when working on an opportunity. A sales process is split up in phases.

A statement of price, the terms of sale, and a description of goods or services offered by a supplier to a prospective purchaser; a bid. The customer data, payment terms, and delivery terms are contained in the header; the data about the actual items is entered on the quotation lines. When given in response to a request for quotation, a bid is usually considered an offer to sell.

Identifies, by one release number, those sales schedules that share the following common characteristics:

• Sold-to business partner
• Ship-to business partner
• Ship-to address
• Release type (material release/ shipping schedule/ sequence shipping schedule/ pick-up sheet)
• Shipment based schedule/ receipt based schedule
• Schedule quantity qualifier
• Forecast horizon start and end
• Sales release origin
• Customer release
• (Customer order)
• Customer contract reference

An employee of your company who maintains contact with the sold-to business partner. The employee number of the sales representative is also used as a sorting criterion in the sales statistics.

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.

A number that uniquely identifies the revision of the sales schedule. The sales schedule revision number indicates the sales schedule updates that are sent by your business partner.

A sales order property that allows you to identify the kind of sale made and the kind of receivable. This property is used to post the sales to the correct Accounts Receivable account when the invoice is created. To post a sales invoice, LN retrieves the control account from the sales type linked to the sales order line, project contract, and so on.

The unit in which an item is sold.

The identification of an overall planning solution.

Each scenario represents one overall planning solution, and involves particular settings for the planning of items and resources. You can use scenarios to analyze and compare various planning options and to find the best planning solution. For example, you can vary demand forecasts or sourcing strategies.

One of the scenarios is the actual scenario, which corresponds with the actual planning situation. You can only transfer planned orders and production plans from the actual scenario to the execution level of LN.

The date and time, calculated by the issue pattern, which, for non-referenced schedules, is used to define the moment at which:

• Schedule lines are clustered.
• A purchase release is sent.

The location where all separate requirements of one specific item delivered by a combination of the same buy-from business partner and ship-from business partner, ordered from a single purchase office, are located.

An automatically generated and unique character string that identifies the schedule. This number is used as long as the requirement or the contract exists.

If schedule regeneration takes place, the schedule lines that are affected by the regeneration are copied to a new schedule revision number.

The number of the schedule line. This number uniquely identifies each requirement of an item that a specified business partner must supply at a specific date and time.

The quantity of the item required for the schedule line(s).

The original schedule line that starts with revision number one. After each regeneration of the schedule, changed records are inserted with a new revision number. All new lines inserted can be compared against the current revision.

Unusable material or rejects of intermediate products, for example, because of faulty components, or products lost in cutting or sawing operations. The gross material requirements and/or an operation's input quantity must be increased to account for anticipated scrap.

In the BOM, you can define scrap as a percentage of the net material requirements, which is the scrap factor, and as a fixed quantity, which is the scrap quantity. A scrap quantity is mostly used to define the amount of material that is lost every time when you start producing, for example, to test the equipment.

For an operation, you can only define the scrap as a fixed quantity.

A keyword that is used for searching. A search argument is usually linked to a description.

An alternative form of a description used for convenience during searching. Typically, it is an abbreviation, an acronym, or a mnemonic alternative to a full description.

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

A part of a schedule that defines a unit of time used for scheduling. A segment contains a requirement type, a segment time unit, and a segment length.

A subdivision of the item code in different logical parts, called segments.

These segments are visible in the sessions as separate fields. Examples of segments are:

• Project segment
• Cluster segment
• Item identification

The code that identifies the schedule segment.

The period that is assigned to the segment. The period is expressed in the segment time unit.

A set that is used to define the structure of a schedule. A segment set consists of a number of segments.

The segment set is used for schedule regeneration and for clustering schedule lines. No segment sets are used for pull call-off schedules.

The time unit in which the segment is expressed, for example days, weeks, months, and so on.

A predefined set of data that must be printed or processed. Such a set is defined by a selection expression (or a selection criterion). You can define an expression in the Text Manager, which is used to retrieve data from the database for maintenance/printing.

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.

A number that determines the sequence.

A number that determines the sequence in which:

• records are displayed in an overview session or list box
• components such as features are shown in the user menu (user dialog).

The number that identifies a data record or a step in a sequence of activities. Sequence numbers are used in many contexts. Usually LN generates the sequence number for the next item or step. Depending on the context, you can overwrite this number.

The number used to identify in detail the position number of a sales order (delivery) line or a purchase order line (detail).

The sequence number of the warehousing order line.

Information regarding the sequence in which your ship-to business partner requires the items on the assembly line.

A shipping schedule with precise information about the production or deliveries of the requirements. This schedule can include the production or delivery sequence, and the order, the place, and the time of unloading after shipment.

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).

A group of serialized items with similar features.

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.

The selected asset's identifying number to distinguish it from other products in a similar line.

A number that, together with the item code or manufacturer part number, uniquely identifies a component, an item, a machine, or an installation.

This serial number is usually shown together with the manufacturer part number and other identification data on an identification plate that is attached to the item.

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 specific geographic area that is covered by one or more service engineers (employees). A service area can be linked to a service center.

A sales agreement between a service organization and a customer for a specific period, that states the configurations (installation groups or serialized items) to be maintained, the coverage terms, and the agreed price.

A type of warehouse that you use exclusively to store items that are owned by the customers and that have been sent to the depot to be repaired or serviced. Receipt and issue of items does not affect the value of the warehouse inventory because the items are owned by the customers. Therefore, receipt and issue of items does not result in financial transactions.

A standard item that represents services instead of goods.

A product that serves as a repository when you define serialized items and service contract terms.

In Service, the items are specified by the item code. Item codes enable you to the use the LN functionality for purchase and inventory control. For service and maintenance applications, you must separately identify the various states in which items can occur in the process. For example, you must be able to identify defect items and repaired items.

Groups of service items with common characteristics that are used in Service.

Service item groups can be used to define the material terms for a group of items. The material terms are used in service-contract templates, service-contract quotes, service contracts, service-order quotes, and warranties.

The level of service offered by a carrier in connection with goods transports, such as speedy delivery, delivery within twelve hours, and so on. Usually, a service level is related to the freight rates that a carrier uses to calculate prices for transportation services.

A department clearly identified within the company business model to manage the services provided to a customer. The service office is used to identify the locations that are responsible for the service activities within the organization.

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.

The smallest unit of activity that can be carried out for a service order. Multiple activities can be defined per service order. This can be useful, for example, to combine calls with planned maintenance activities.

A service-order quote is a statement of price, terms of sale, and description of services and materials, that can be sent to a prospective business partner. The business partner data, payment terms and delivery terms are listed in the header. The data about the activities and materials are entered on the quote lines.

A type of warehouse that you use to store items which after inspection are rejected.

The items in a service reject warehouse can be:

• Repaired on a work order.
• Scrapped via a warehouse procedure.
• Returned to the owner.

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.

The service classification that service providers offer. The service type determines which availability type applies to a service order header, and provides a default order procedure and coverage type.

A number used to group together one or more order lines. Order lines with the same set number are released simultaneously to, for example, warehousing or invoicing.

The amount of time an item may be held in inventory without deterioration in quality.

The maximum number of items the ship-from business partner can ship in the specified capacity time unit. LN takes into account this value to create valid requirements.

The smallest consignment for which Freight plans transportation. A shipment is an identifiable part of a load, and contains a number of goods that are transported to a given destination on a given date/time via a specific route.

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.

This advanced shipping constraint implies that all expected shipment lines will not be shipped until the entire scheduled quantity for the line has been allotted.

The code of the shipment created by Warehousing during the advance shipment notice (ASN) process when goods are received based on a supplier's ASN.

An entity that provides information about one of the items listed on a shipment, such as the weight, the quantity, or the additional costs.

An individual line of detail in a shipment.

Identifies a group of items that are called off at the same time.

A schedule's total shipped cumulative quantity, calculated from the CUM-reset date on up to the last transaction date, which is the shipment date or the receipt date.

Based on purchase schedule parameter settings, shipped CUMs are updated when:

• An ASN is created in Warehousing for the goods to be received
• Scheduled goods are received based on an ASN
• Scheduled goods are received without an ASN

The quantity shipped against a particular shipment ID and shipment sequence.

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.

A schedule on which detailed information is given about shipping times or delivery times and quantities. A shipping schedule facilitates just-in-time (JIT) management.

A warning message displayed if you enter or select an item to which a signal is linked. Item signals can also be used to block the issue and/or requisition of items.

Business-partner signal

A warning message displayed if you select a business partner to whom a signal is linked.

The simulations that help you calculating the priority sequence in which inventory is allocated to orders.

A business location of an enterprise that can maintain its own logistical data. It includes a collection of warehouses, departments and assembly lines at the same location. Sites are used to model the supply chain in a multisite environment.

These restrictions apply to sites:

• A site cannot cross countries. The warehouses and departments of the site must be in the same country as the site.
• A site is linked to one planning cluster. Consequently, all warehouses and work centers of a site must belong to the same planning cluster.
• A site is linked to one logistic company.

You can link a site to an enterprise unit or an enterprise unit to a site.

If an enterprise unit is linked to a site, the entities of the site belong to the enterprise unit. Conversely, if a site is linked to an enterprise unit, the entities of the enterprise unit belong to the site.

The factor used to calculate smoothing data.

The business partner who orders goods or services from your organization, who owns the configurations you maintain, or for whom you perform a project. Usually a customer's purchase department.

The agreement with the sold-to business partner can include:

• Default price and discount agreements
• Sales order defaults
• Delivery terms
• The related ship-to and invoice-to business partner

An identifying code and description of a set of data fields grouped in a sequence. These data fields are used in statistics reports and displays. When a report or display is generated, the fields are filled with data from the database and displayed in the report or display according to the sequence defined in the sort code.

The places, events, or methods where or through which business partners come in contact with your company (for example, a trade fair or an advertisement).

A percentage used to calculate how orders are divided among suppliers.

A customer-oriented contract, agreed upon by buy-from business partners and sold-to business partners that is used to record specific agreements for specific projects. A special contract can also be a promotional contract.

For special contracts, an overlap in effectivity periods is allowed for the same item/business partner combination.

A collection of item-related data, for example, the business partner to which 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 purchase order or production order
• a particular quantity of an item stored in a warehouse
• a requirement for a particular quantity of an item, for example a sales order

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

A category that is linked to a specific sold-to business partner.

The sum of the following item costs as calculated by the standard cost calculation code:

• Material costs
• Operational costs
• Surcharges

Prices that are calculated against other price simulation codes are simulated prices. The standard cost is used for simulation purposes and in transactions when no actual price is available.

Standard cost is also an inventory valuation method for accounting purposes.

A currency system in which foreign currency transactions are translated straight from the transaction currency to the local currency, without triangulation through the reference currency. By default, reporting currencies are directly translated from the transaction currency into the reporting currency; however, reporting currencies can also be translated from the local currency.

A purchased item, material, subassembly, or finished product that is normally available.

All items that are not built according to customer specification for a specific project are defined as standard items. Opposite term is customized item.

A standard route is a fixed route that is traveled with a particular frequency, such as a truck that visits delivery and/or loading addresses according to a fixed schedule, a rail service, or a boat service. Usually, transportation via standard routes costs less than travel via non-fixed routes. For example, you can define a route like Amsterdam via Rotterdam to Antwerp that is run once a day.

The tax year.

A group of items for which statistical information is collected and represented.

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.

Defines lower levels (catalog pages) of a catalog structure.

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)

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.

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.

A business partner that is hired to perform certain services, such as the execution of a part of a project or production order. The services are delivered via a purchase order.

A criterion whose score and rating are calculated based on user judgements (subjective values) assigned to the criterion.

Subjective criteria are taken into account in vendor rating.

Subjective values are used to provide the user with an easy to use rating scale on a vendor rating questionnaire and the ranking of RFQ responses. You can assign scores and weightings to the subjective values.

A percentage associated with a quotation that represents the probability of the business partner accepting the quotation. Acceptance results in the conversion of the quotation into a sales order.

The sales price that suppliers recommend and that resellers charge their customers.

The number the buy-from business partner assigned to the order.

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.

The total time required to obtain an item that is forecasted. This time is used to calculate an item's order lead time, based on which a company takes commitment decisions and executes capacity planning and order management.

Example

For item A, the supplier communicated a supply time of 50 days. This is in fact a reduced lead time and is only possible because a three year forecast is sent to the supplier for this item. If additional quantities are needed, which are not included in the forecast, the supplier needs the full supply time, which is 300 days.

A person's last name in personnel data.

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.

The current date that is generated by the system.

The table fields from the LN database that can be used in selection expressions and letter and report layouts in CRM.

The price that forms the basis for margin control calculations.

A target price can be one of the following prices:

• The sales price
• The recommended retail price
• The standard cost of the item
• The selling price found after a search in Pricing

The target price and the sales price are evaluated in relation to the margin limits registered in the item file.

An activity type that specifies an action to be executed for a contact, business partner, opportunity, or activity that you want to track through completion.

An activity to manufacture or repair an item. For example, sawing, drilling, or painting.

A task is carried out on a work center, and can be related to a machine.

An attribute of order headers and order lines that you can use to define tax exceptions for the transaction. LN retrieves the default tax classification from the invoice-from and invoice-to business partners.

For example, you can use the tax classification to indicate:

• That payments to an invoice-from business partner are subject to withholding tax and social contributions
• To group business partners who have the same tax aspects for your company, for example, subcontractors, or agents
• That the tax must be paid in a country other than the sales office or service office's home country

A code that indentifies the tax rate and which determines how LN calculates and registers tax amounts.

A code that identifies the tax rate and which determines how LN calculates and registers tax amounts.

Being exempt from tax. Transactions with specific business partners, involving specific goods, and/or with their origin or destination in certain countries or areas, can be exempt from tax. Sales invoices for transactions that are exempt from tax must have zero tax amounts.

Some enterprises are exempt from sales tax within the jurisdiction of certain tax authorities. Invoices for sales to a customer with a valid tax exemption must have zero tax amounts. If you are exempt from sales tax, your suppliers must not include the tax amount on their invoices.

A certificate issued by a tax authority to a specific business, exempting them from sales tax within the tax authority's jurisdiction. When you purchase goods or services, you must provide the certificate number to your supplier to authorize them not to collect the tax.

A number used to identify legal persons or businesses. The tax authorities assign the tax numbers to the registered businesses. Your business partners must provide you with their tax number. Business partners without a tax number are considered to be private persons.

A number used to identify legal persons or businesses. The tax authorities assign the tax numbers to the registered businesses. Your business partners must provide you with their tax number. Business partners without a tax number are considered to be private persons.

A third party application that facilitates the calculation of taxes.

A letter sent from the customer to the supplier that states that a contract has been ended.

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.

Holds the values for the search attributes of a terms and conditions search level. Therefore, it specifies the fields to which the detailed terms and conditions, as stored in the terms and conditions groups, apply.

A default terms and conditions agreement, representing a business process, with no business partner linked to it. The level of detail of the template data is user-definable.

Based on a template, you can do the following:

• Generate new terms and conditions agreements for business partners.
• Update existing terms and conditions agreements.
• Validate terms and conditions agreements.

An expression used to address persons and/or companies. The title is printed on documents over the address data.

The total quantity of approved items expressed in the purchase unit.

The total value of the goods recorded on the contract.

The date on which the order is changed and/or written to the history file. For each change, LN inserts a new line and a new transaction date. This applies to any type of order.

Among other things, the transaction date is important for:

• Scheduling
• Statistics
• Determining due dates and currency exchange rates

The date and time when the document (line) is changed and/or written to the history file.

A user-defined three-position code used to identify documents. The series linked to the transaction type give documents the sequence number.

A classification used to group means of transport, such as:

• Vans
• Trucks
• Container ships
• Cargo aircraft

For each group, properties are defined, such as:

• The average speed
• The loading capacity

Each means of transport defined in Freight belongs to a transport means group. For example, transport means group: Vans, means of transport: van with licence number XX333444 .

The annual sales volume.

The physical quantity in which an item or good is managed. For example, a quantity of wood can be expressed as a length by using the unit of one meter, or as a volume by using the unit of one cubic meter.

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

The default unit price calculated by multiplying the price factor by the base price from the most current price book of the price matrix.

A group of unit codes that can be linked to standard or customized items, or to item defaults. In a unit set, you can indicate the physical quantities that can be used for the item, in which modules, and for what purposes.

A price that is defined for a requirement in Unit Effectivity (UEF). If the requirement is used in an effectivity unit's configuration, the upgrade price is added to the effectivity unit's sales price.

The highest value or quantity for which you are allowed to add additional costs.

The upper margin is the percentage that the actual sales price is allowed to exceed the target price.

The person that works with an application software package.

The default data that is recorded by the user and influences the creation of sales quotations, sales contracts, sales orders, and sales schedules. This data determines the method of order entry, default values during order input, and so on.

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.

Expenses that vary with the production volume. The materials needed for the production of end items, are always variable costs. Operation rates and surcharges can be attributed to the variable costs or the fixed costs.

Acronym for value-added tax; the indirect percentage tax levied on products or services at various stages of production and distribution.

The number of the item (vehicle) on the assembly line for which an item is required. For example, if a required item is an assembly part of a car, the vehicle number is the number of the car.

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 classification of a supplier based on certain criteria. These criteria can be based on deliveries (on time, sufficient quality) and on other factors.

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 code that identifies the warehouse address for a business partner.

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

The address of the warehouse or place where the goods must be delivered.

The warehouse from which the issue takes place.

A generic term for inbound-order lines and outbound-order lines.

The code of the warehousing order. LN uses the series specified in the Series field of the Warehousing Orders (whinh2100m000) session to generate the order number. If the warehousing order is generated for an order from a package other than Warehousing, this number corresponds to the original order number and is not based on the series specified in the Series field.

A code that identifies the type of a warehousing order. The default warehousing procedure that you link to a warehousing order type determines how the warehousing orders to which the order type is allocated are processed in the warehouse, although you can modify the default procedure for individual warehousing orders or order lines.

A guarantee that a component is repaired free of charge or at reduced costs if it does not work according to the agreed specifications within a warranty period.

The weight of the goods delivered or received. The weight is calculated on the basis of the transaction quantity and the item's weight unit.

The proportional contribution of a criterion type to a comparison score. It represents the importance of a criterion relative to the other criteria in the criteria set.

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.

Tax for which the supplier is liable and which the payer of a purchase invoice withholds on the payment and pays directly to the tax authorities.

The term "withholding tax" generally refers to withholding income tax and social contributions.

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.

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.

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.

A number that identifies each postal delivery area.

ZIP codes are used:

• To sort customer data by address/area.
• To determine in which taxation jurisdiction the address is located.
• To calculate the distances between delivery addresses.

ZIP codes are printed on forwarding documents on which no further address data is printed. The ZIP/postal code does not appear in the address lines on order documents.

A distance or a geographical area. Zones are used to define freight rates. To define a freight rate, the geographical area defined by the zone is linked to a freight amount in Pricing. Thus the freight rate is used to calculate the transportation costs of goods transports that take place in the area defined by the zone. In other words, all goods transports within the area go for the same rate, provided that the other factors that make up the rate, such as basic weight or carrier, apply.

The following types of zones are available:

• ZIP
• City
• Distance
• Not Applicable
• Note: The Zone type is not used to define freight rates in Pricing.