An evaluative process in which items are classified into those making a large contribution (A items), an intermediate contribution (B items), and a small contribution (C items) to the total inventory turnover.

A code that shows each item's contribution to the total inventory turnover. A items are high-value items and C items constitute low value.

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.

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 step in a warehousing procedure. An activity corresponds with a session of the Warehousing package. For example, the inbound activity Generate Inbound Advice is performed using the Generate Inbound Advice (whinh3201m000) session.

The date on which the sold goods are delivered.

The current date and time when the transaction took place. In contrast with the transaction date, the actual log date cannot be changed.

The date on which the ordered goods are received.

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.

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 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 order created specifically to adjust inventory where a variance has occurred. An adjustment order adjusts inventory and creates financial transactions.

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.

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.

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.

A commission to change the allocation of inventory.

A substitute for a BOM material that the system can select in case the standard material is out of stock.

An alternative material is supposed to meet the same specifications, but only in the context of a BOM for a specific main item.

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.

The number of delivered items that is approved.

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.

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.

The location at which subassemblies or parts are put together.

A component used on an assembly line.

An assembly part forms the link between Configurator and Enterprise Planning. Configurator generates the requirements for assembly parts and Enterprise Planning plans the production or purchase of the item.

The planning method which indicates the availability of tools for the planned production orders, service orders, and the actual production orders. Availability data enables you to check the future availability of the tools for these orders. If a tool is not available for the operation or service activity, you can take appropriate action.

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.

A series of alternating bars and spaces printed on documents or products, representing encoded information that can be read by electronic scanners.

The number of assembly kits to be called off.

The search structure by company for warehouses based on the numeric priorities assigned to the warehouses. 1 is the highest priority, and 999 the lowest.

The legal document used by the carrier that states what is transported (nature, quantity, weights, and so on) to what address.

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.

A function used to block inventory transactions. You can define blockings by zone, location, lot, stock point, or serialized item.

The line number within the bill of material.

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 location used mainly for large inbound quantities and/or containers and to indicate from which pick locations can be replenished.

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.

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.

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.

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 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.

A list of workable days, that is used to build a calendar.

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

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 unit in which the capacity of an inventory location is registered. It usually applies to the physical quantity area, volume, or weight and can be converted into the inventory unit.

The number given by the carrier to identify the load or shipment. The carrier uses this number for tracking purposes.

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.

A code indicating the type of hazard. This code is only used if a shipment has been flagged as containing hazardous material.

A fully processed warehousing order. This means that the related activities are completed and the warehousing order is no longer needed in processes involving the originating order. For example, such processes can include financial posting or invoicing.

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

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

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.

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

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 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.

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.

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

A contract deliverable is a tangible or intangible item that is produced or purchased as a result of a contract.

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

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

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

Example

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

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

A cost component is a collection of cost objects with a certain characteristic. A cost component does not depend on the cost type, therefore, for example, a project can be monitored from another dimension. For example, all the costs that refer to electrical work, for example, cable and installation work, are visible if the applicable cost objects are linked to the cost component Electrical work.

Are used to break up and redirect costs related to a project, to project pegs that are linked to specific attributes, such as items, item groups, or work centers. The project costs are no longer linked only to the top demand project peg, but are spread over lower level pegs for the specified attributes (breaks), which improves project management.

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.

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 time interval, defined in hours or days, between receiving the goods on the receiving location until the moment the goods leave the warehouse from the staging location. It includes the normal waiting times on the receiving location and/or staging location, and inspection time.

An outbound order line for which the goods must be cross-docked. A cross-dock order can be fulfilled by creating cross-dock order lines for it.

An inbound order line for which the goods must be cross-docked. Cross-dock order lines are used to fulfill cross-dock orders.

A user-defined set of priorities assigned to one or more LN table fields. LN uses the cross-dock order priority definition to generate the cross-dock order system priority.

A user-defined set of rules that LN uses to determine whether to create cross-dock orders. The rules are checked one after the other. If a valid condition is met, no cross-dock orders will be created. If no rule applies, LN permits creation of cross-dock orders. Cross-dock restriction rules are taken into account regardless of the use of direct material supply.

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

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

See also: ownership

The periodical count of the item inventory to verify if the system data is still accurate.

An order generated by LN to count the inventory by stock point at a particular frequency and to subsequently register the counted quantities. A cycle count order consists of an order number and a sequence number indicating the number of counts performed on this order. As a result of the count action, you can adjust the inventory.

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.

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 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.

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

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

The level of demand that is expected in future periods.

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

An order, usually a sales order or sales schedule, fulfilling the demand of a customer.

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.

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.

Manner in which quarantined manufactured or purchased items or materials are handled, for example by scrapping, reworking or returning to the vendor.

An order that LN generates after the user has processed a disposition line. The disposition order is used to carry out a disposition.

The disposition that the user selected to process the disposition line determines whether a disposition order is generated, and if yes, the type of disposition order that is generated:

For the dispositions Use As Is and No Fault Found, no disposition order is generated.

A method for spreading out budgeted or actual year totals to a number of periods. Both quantities and amounts can be spread out.

Includes the transaction template or integration mapping scheme that will determine the distribution account for that particular part of the asset, the physical location of the asset, and the quantify or percentage of the asset which is to be distributed to the indicated location and distribution account. Also the company that the depreciation expense should be recorded.

A location in a warehouse where goods can be loaded or unloaded.

The requirement for documents such as sales orders, purchase orders, or shipments to be compliant with the settings specified for the global trade compliance functionality, the letter of credit functionality, or both.

Parameter settings and settings for individual items, contract deliverables, sales orders, or purchase orders determine whether the document compliance includes letters of credit, global trade compliance, or both.

Document compliance checks are performed at various stages in the document handling processes.

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.

The inventory that is available to be sold.

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.

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.

Way to exchange information with your business partners by using electronic mail. Information include catalogs, sales and purchase orders, and all other types of information necessary to carry out business transactions.

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.

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

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

A document that certifies that items or components to be purchased are allowed to be imported. If import licenses are required, references to the licenses are displayed on the EUD.

An end user declaration (EUD) is linked to a purchase order and an end user statement (EUS). The items or components of the EUD and the purchase order are needed to manufacture the end item described in the linked EUS, which in turn is linked to the demand order for which the purchase order was created.

A document that certifies that the end user of exported goods is a trustworthy party who is the final recipient of the goods sold, and who has no intention of reselling the goods. Many governments require end user statements (EUS) to restrict the export of goods to undesired destinations, such as embargoed countries, or countries with poor human rights records.

This applies in particular to sensitive or highly controlled items such as military grade weaponry. An end user statement is linked to a demand order such as a sales order or a contract deliverable.

A virtual item that is used to model a fixed part of a product engineering structure in Assembly Planning in Manufacturing. The product engineering structure is used to generate assembly orders for the Assembly Control module of Manufacturing.

The engineering module is the top of a tree structure (BOM) of engineering items. If Assembly Planning generates the assembly orders, the Engineering Module item type is created in the Item Base Data tables in LN, if not yet present. The engineering module is part of the order content and the as-built structure.

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.

A code identifying the type of equipment used for the shipment. For example, TL = trailer.

The prefix (or alphabetic part) of the equipment's ID code.

The sequencing (or numeric) part of an equipment unit's ID code number.

Inventory for which no demand is present. For example, excess inventory can result from fixed order quantities, when the received quantity exceeds the present demand.

Excess inventory can be:

• On hand

  Physically present in the warehouse

• On order

  Present on planned or scheduled receipts

The price at which one currency can be exchanged for another currency. In other words, the amount which one currency will buy another currency at a particular time.

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).

A demand forecast method that takes account of recent data over and above past data.

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

In Product Classification, a collection of items with common features.

A property of an item which is used when you classify items. For example, a frame and a wheel are features of the item bike.

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.

Part of an LN database in which you can store all data concerning financial transactions.

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.

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.

A location that is assigned to a specific item. If you link a location to an item, the item is always stored in that location. A fixed location can contain different items.

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 stock of inexpensive material present in the job shop that can be used in production without recording each issue of material individually. Floor stock is not backflushed and is not part of the estimated costs.

A technique used to forecast the demand for items.

The following forecast methods are available:

• Moving Average
• Exponential Smoothing
• Previous Year's Calculation
• Last Period's Demand

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 cluster is a group of freight order lines with matching properties, such as shipping offices, planning groups, overlapping time windows, transport means groups, and so on, that is subcontracted to a carrier. The carrier will plan and carry out the transportation of the goods listed on the freight order lines according to the subcontracting order.

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 package definition that you can use for various items. You can link a general-level package definition to an item to adjust the package definition data for the item. In this way, you create an item-level package definition.

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.

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.

A document that lists expected items and their quantities. Dock personnel can use goods received notes to compare against receiving documents provided by the supplier.

The note used to register the quantities received in a warehouse. LN prints the expected quantity on the note.

A uniquely identifiable physical unit that consists of packaging and contents. A handling unit can contain items. A handling unit has a structure of packaging materials used to pack items, or is a part of such a structure.

A handling unit includes the following attributes:

• Identification code
• Packaging item (optional)
• Quantity of packaging items (optional)

If you link an item to a handling unit, the item is packed by means of the handling unit. The packaging item refers to the type of container or other packing material of which the handling unit consists. For example, by defining a packaging item such as Wooden Crate for a handling unit, you specify that the handling unit is a wooden crate.

A description of the way items are packaged by means of handling units.

A handling unit structure includes any of the following elements:

• Top

  Handling unit that includes the entire structure, such as a pallet.

• Parent

  Handling unit that includes one or more children, such as a crate on a pallet.

• Child

  Handling unit that is linked to a parent, such as boxes that are packed in a crate.

One of the elements of a package definition. A handling unit template provides information on the packing materials that must be used to pack items and on the way the packaging materials are structured. The package structure is hierarchical and consists of several nodes that are related in a parent-child fashion. The packaging materials refer to handling units, each node represents a handling unit.

When handling units are generated for the items of a particular order, the handling units are created and structured as defined in the handling unit template of the package definition that is linked to the order.

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

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

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

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 procedure in which received goods are stored in a warehouse.

A list generated by LN that indicates the location where received goods must be stored, taking into account storage conditions, blockings, and so on.

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

A warehousing-order line used for the inbound of goods. An inbound-order line gives detailed information about planned receipts and actual receipts.

For example:

• Item data
• Ordered quantity
• Warehouse and location of receipt

The sequence in which inventory locations are considered for storing received goods.

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.

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.

A type of inventory location exclusively designated to store items that are eligible for inspection upon receipt.

After the items have passed inspection, they are transferred to:

• A normal location if they are approved.
• A quarantine location if they are rejected.

Goods in an inspection location are always considered to be on-hold inventory.

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

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.

An attribute that includes the intercompany trade details for an intercompany trade scenario. An intercompany trade agreement is linked to an intercompany trade relationship, together with the intercompany trade scenario.

For the applicable intercompany trade scenario and trade relationship, an intercompany trade agreement:

• Determines whether internal invoicing is used.
• Determines whether intercompany trade orders must be approved before they can be processed.
• Includes the transfer pricing rules that determine the amounts of the intercompany trade transactions.
• Determines the amounts of the internal invoices, if internal invoicing is specified.

Example

Sales office S1 and warehouse W1 are part of organization A, but are located in different countries. To fulfill a sales order to an external customer, S1 instructs W1 to deliver the goods to the customer. W1 sends an internal invoice to S1 to cover the costs for the goods and the delivery. The amount of the internal invoice is based on the sales order price.

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.

The goods stored in a warehouse.

A manually entered order to increase or decrease the system inventory.

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

The costs for holding an item (per inventory unit) in inventory, including costs for interest, storage space, and risk.

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.

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

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

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

The way in which the inventory is handled, both physically and in LN, if BOM items or list items are received or issued.

The inventory can be handled:

• By Main Item.
• By Component.

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

A department that is financially and administratively responsible for one or more warehouses. An inventory management department is used to group warehouses. Business-partner role data can be set up for specific inventory management departments.

If multiple tax registrations in different countries are present for a financial company, data based on tax registrations from different countries that is linked to an inventory management department can be specified on intercompany trade invoices.

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

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

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

Any change in the inventory records.

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

The following inventory transaction types are available:

• Issue

  From warehouse to other entity than warehouse.

• Receipt

  From other entity than warehouse to warehouse.

• Transfer

  From one warehouse to another.

• WIP Transfer

  From one costing work center to another.

The number of times that an inventory cycles during a year.

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

The difference between the valuation amount that is recorded after the receipt of goods and the updated value for that particular receipt.

For example, an inventory variance can be created:

• If the receipt price is changed after the receipt is confirmed.
• If the invoice price differs from the receipt price.
• If a production order is closed and the actual cost differs from the estimated cost.

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 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.

The transaction type that is used to withdraw goods from inventory.

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.

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.

A package definition that is defined for a specific item. An item-level package definition is created from a general-level package definition.

An item surcharge is the basis for extra costs or discounts (in terms of percentage of fixed amounts) in the cost/valuation price structure for items belonging to the given item group or warehouse. Surcharges are linked to a price calculation code.

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.

An entity that is used to group items for inventory valuation purposes.

To define an item valuation group, you must link an item valuation group code to the items that you want to include in the item valuation group.

You can set up item valuation groups by company and by site.

Item valuation groups and warehouse valuation groups are linked, for example, to inventory valuation methods to valuate the item-warehouse combinations included in the warehouse and item valuation groups.

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.

The kanban signals defined for an item and warehouse combination.

A signal used to trigger the creation of a kanban supply order. A kanban signal includes a label code and a supply quantity, and is linked to a warehouse and item combination.

A code that identifies the type of charge associated with the message, such as surcharge, freight, handling, or setup.

The type of costs incurred for a shipment or shipment line, such as surcharge, freight, handling, or setup.

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

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

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

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

A printed piece of paper or other material that provides information about items, quantities, packaging items, and so on. A label often contains bar codes to enable scanning.

Labels can be attached to (the packaging materials of) items at various stages during the inbound or outbound goods flow.

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.

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

A number that determines the sequence in which records are displayed in an overview session.

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.

Production order for an assembly line station.

In LN, an enumeration of components. A list can be a kit, a menu, an option, or an accessory.

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.

The largest consignment for which Freight plans transportation. A load contains a number of goods that are transported by a means of transport that belongs to a transport means group travelling to a given destination on a given date/time via a specific route. A load can contain more than one shipment, for example if the consolidation planning algorithm is used.

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 freight planning engine of Freight. The load building engine groups goods that require transportation into shipments and loads.

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 physical location that is associated with the data or transaction, such as a warehouse, production facility, city, or country.

Location is a mandatory field in Business Object Documents (BODs) for transactional data.

A distinct place in a warehouse where goods are stored.

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

Inventory stored in specific warehouses or warehouse locations that is allocated to outbound order lines for which outbound advice is created that is not yet shipped. Also referred to as firm allocation or hard allocation. After the inventory is shipped, that is, has left the warehouse, the allocation is deleted.

See also allocated inventory

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

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.

Value assigned to a variable lot feature. A shortened version of variable lot-feature value. Such features can have a different value for each project, item, or lot.

An item that is subject to lot control.

An inventory valuation method for accounting purposes that is used to separately calculate the lot price or standard cost for each lot. The lot price is based on the actual receipt price.

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 number of items in a lot.

The ability to trace lots during the logistical process.

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

This scenario is used for expensive lot-controlled and serialized items produced and handled in relatively small quantities that require intensive tracking throughout the warehouse flow.

During receipt in the warehouse, lot numbers, serial numbers, and other stock point details are consolidated in an individual receipt line if the Consolidate Stock Points in one Receipt Line check box is selected in the Inventory Handling Parameters (whinh0100m000) session. If this check box is cleared, an individual receipt line is created for each lot number and serialized item and, either manually or automatically, a lot number or a serial number is allocated.

In this scenario, lot numbers and serialized items are individually stored in inventory. For each inventory transaction, such as a receipt, transfer, or an issue, the inventory records of the lot numbers and the serialized items are updated.

When issued from the warehouse, the lot numbers, serial numbers, and other stock point details are consolidated in an individual shipment line if the Consolidate Stock Points in one Shipment Line check box is selected in the Inventory Handling Parameters (whinh0100m000) session. If this check box is cleared, for each lot number and serialized item LN creates an individual outbound advice line and, if applicable, a shipment line, and allocates a lot number or a serial number.

The 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.

Lines that store all details of the items that must be maintained, loaned, replaced, delivered, or received.

A warehouse from which goods are shipped that are issued from a specific group of connected warehouses called subwarehouses.

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.

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

A defined period of time in a calendar, for which a resource can be planned.

An individual identifiable means of transport used for freight planning and freight order clustering, such as:

• Truck
• Airplane

For load building and freight order clustering purposes, Freight checks the availability of individual means of transport, if specified for a load or a freight order line.

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

The average value of the present inventory, which is used in order to calculate the administrative price when you issue inventory. The inventory value is based on historical purchase prices.

An inventory valuation method for accounting purposes.

The MAUC is the average value for each unit of the current inventory. For each new receipt the MAUC is updated.

A BOM that lists the subcomponents of the components, and any eventual subcomponents.

In the multilevel BOM, the final product is at level zero.

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 report that identifies non-conformance of material during QM/warehousing inspection or during the movement of the materials and/or when the material is in stock.

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.

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.

A suboperation connected to a routing operation.

An operation step can contain information such as, instructions, process information, and tools information.

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

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.

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

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

The (administrative) costs for placing an order. Order costs include the handling and transportation costs. The costs of the purchasing department, production planning department, and control department incurred by a production order or a purchase 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 time interval for which demand (actual and forecasted) is taken into account to determine the net order quantity.

LN uses the following formula to calculate the order horizon:

factor * lead time (= LT + ST) + constant

The number of workdays or working hours for which all the requirements of a specific item are bundled in one (planned) order, during an order planning run. LN calculates the order interval from the day when the first requirement occurs. Order intervals are used to prevent an excessive number of planned orders in one time period.

An order entry. It includes information about an item on an order.

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.

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 set groups order lines of the same order.

The order lines are grouped if the following attributes match:

• Ship-from partner
• Ship-to partner
• Ship-from address
• Ship-to address
• Carrier
• Shipping date
• Original company

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 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).

The priority fields show the priority in which the various types of outbound advice are processed.

Each advice type can only appear once in the list of priorities. Whenever you make a change in the priorities, a corresponding change appears elsewhere in the list.

Example

If priority 4 contains advice type sales and you change it to contain advice type purchase, the two advice types swap places in the priorities list.

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.

The unit that the customer uses to order goods. Sometimes, delivery takes place in other units because the goods are not available in the order unit in the warehouse.

The order from which an order is created. For example, if a warehousing order is created from a sales order, the sales order is the originating order of the warehousing order.

The act of retrieving goods from a warehouse.

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.

The method by which LN determines the order of issuing items. The outbound method can be LIFO (last received items first), FIFO (oldest items first), or By Location (based on the warehouse location's outbound priority).

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.

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

A positive deviation from the original ordered quantity.

The code that indicates whether the asset is:

• Owned by the company
• Owned by a third party
• Is used under a capital lease or operating lease

Indicates if, and at which point in the supply chain, the ownership of goods changes from the supplier to the customer. Ownership changes also occur between departments or business units within an organization, which is referred to as internal ownership. When the ownership changes, payment is due.

In traditional, non-VMI scenarios, the ownership of an item changes from the supplier to the customer after the customer has received the item from the supplier. The customer must pay for the item on receipt of the goods.

In various subcontracting scenarios, ownership will not change during any of the inbound or outbound warehousing processes. In such cases, the ownership is customer owned.

In vendor managed inventory (VMI) scenarios, the ownership can be consigned. If the ownership is consigned, the ownership change is either time based or consumption based.

• Consumption based

  The customer issues the goods to sell them or to consume them

• Time based

  Some time after:

  • The customer receives the goods
  • The last issue or receipt of the goods

For time based ownership change, the period of time is laid down in the contract between the customer and the supplier.

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

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

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

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.

A document that shows all shipments of a load.

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.

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.

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.

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

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 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.

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

A specific picking round performed by one employee or vehicle.

The inventory location designated for order picking purposes. A pick location is mainly used for the outbound of small quantities and/or containers that can be replenished by bulk locations.

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 date for which delivery of a shipment is planned.

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

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.

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.

A user-defined condition that you can apply to a specific situation and a specific order, and that results in a priority figure when applied to a specific order. Aggregating the priority figures of all applicable priority rules results in a planning priority, which in turn is used as the system priority.

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.

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.

The date that indicates an item's shelf life.

The best-before date; the date up to which you can keep the goods.

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

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

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.

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.

The inventory on hand projected into the future, taking into account the planned inventory transactions.

LN calculates the projected on hand as follows:

projected on hand = I - PI + PR

An item that is produced or purchased for a particular sales order. The item's project provides a link with the sales order.

A project item can be recognized by its item code. If a code has been entered in the project segment, the item is a project item.

A project item can be customized to the specifications of a customer, but it can also be a standard-to-order item.

The way to characterize a project.

LN distinguishes these statuses:

• Free

  A project definition has been recorded, but the project has not yet been executed. Changes are still possible.

• Active

  During the execution of a project you can release, purchase, and register cost transactions.

• Finished

  The project is completed but it has not (yet) been financially closed. You can still register cost transactions. Actual purchase orders cannot be present for the project.

• Closed

  The project has been financially closed, the project definition can no longer be changed.

• Archived

  The project is stored in an archive company. The project archive company can be used as a repository for historical project data.

A warehouse at which logistical transactions occur, but on which no integrations are logged. In project terms, it is as good as a project site in financial terms. In Warehousing, the warehouse type must be Project and the Project WIP Warehouse field must be selected.

A recommendation that can originate from various planning mechanisms and which indicates what items must be purchased and when. You can also manually create and maintain the advice.

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.

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

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 corrected demand during a specific period. The qualified demand is determined by the sales orders during that period.

The qualified demand is used for forecasting purposes and is, therefore, corrected for exceptional demands. Therefore, if the demand forecast is calculated, the exceptional demands are not taken into account.

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 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 of the blocking. This reason can be linked to a blocking of a zone, location, lot, stock point, or serialized item.

The reason why received goods did not pass the inspection.

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.

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

The location in which the received goods are placed while they await the generation of an inbound advice.

The process of comparing inventory levels between the WMS and LN, analyzing the results, and processing any detected differences, preferably by correcting the related orders.

Represents a group of integration ledger accounts on which you can perform reconciliation. A reconciliation group consists of the combination of a reconciliation area and a subarea, for example, Invoice Accrual/ Purchase Order WIP.

The period within which your packaging item transactions and the external business partner's packaging item transactions are grouped to be compared and, if differences are present, reconciled.

A commission to transfer goods in inventory to another EUS.

Goods received for EUS A can be assigned to EUS B. Consequently, the goods can only be advised for outbound order lines that are linked to EUS B.

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 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.

A set inventory level where, if the total stock on-hand plus total on-order falls below that point, action is taken to replenish the stock.

The relations that define the replenishment of items from bulk locations or bulk zones to pick locations or pick zones in a warehouse.

A document that a supplier sends to a customer to prove that the supplier has received the goods listed on a sales return order sent by the customer. The information on a return certificate includes the goods received based on the return order, the return order ID, the customer's ID, the warehouse in which the returned goods have been received, and so on.

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

An update of the current value of a fixed asset to market prices. In Financials, you can revaluate a fixed asset based on an index or enter the amount manually.

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.

A production order to fix or upgrade an already produced or purchased item. The item that must be reworked is both input and output of the production order.

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 code that is linked to a routing. A routing code can be linked to a standard routing or an item-specific routing.

A group of items with similar routing attributes, for example, the same work center, routing operation, BOM, and so on. A routing group is defined by the user as a selection criterion for production orders.

A priority code or number defining the position of the carrier in the sequence of carriers used for a shipment. Where more than one carrier is used, one must be first, the next is second, and so on.

A code assigned to a selection range. Run numbers are used to reuse selection ranges in these processes:

• Generate outbound advice
• Release outbound advice
• Generate inbound advice
• Put away inbound advice
• Generate storage lists
• Put away storage lists
• Generate picking lists
• Pick picking lists

For example, when a run number is assigned to a selection range that is used to generate outbound advice, this selection range can be reused if you specify the corresponding run number when releasing outbound advice.

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

The buffer inventory necessary to meet fluctuations in demand and delivery lead time. In general, safety stock is a quantity of inventory planned to be in inventory to protect against fluctuations in demand or supply. In the context of master production scheduling, safety stock is the additional inventory and capacity planned as protection against forecast errors and short-term changes in the backlog.

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 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.

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

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

The number on the shipments seal.

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.

Seasonal patterns define the fluctuation of certain values, such as the expected usage or demand of an item in the course of a year. These values serve as parameters in forecast and advice.

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.

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).

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.

An inventory valuation method for accounting purposes that is used to separately calculate the price or standard cost for each low volume serialized item. The serial price is based on the actual receipt price. For more information, refer to Low volume scenario.

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 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.

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.

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.

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

A code used, together with the ship-from type, to identify the exact source of a warehousing order.

The ship-from type is used, together with the ship-from code, to identify the exact source of a warehousing order.

The ship-from type can have the following values:

• Business Partner
• Warehouse
• Work Center
• Project

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.

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.

A procedure that is carried out when a warehouse order or a shipment is processed for transportation. In a shipment procedure, you can specify which transport documents (packing list, packing slip, or Bill of Lading) must be printed when the shipment is transported. For each shipment, a shipment procedure is defined. If a shipment obtains the Confirmed status, the documents specified in the shipment procedure are printed.

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

The shipment sequence created by Warehousing for a particular shipment ID.

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

A shipping document that describes the content of the shipping structure consisting of loads, shipments, and, if implemented, containers, created for a warehousing order or order set. The shipping structure can contain separate items or items included in BOM or kit structures.

An object used to group packaging material transactions by business partner or group of business partners. The reports of packaging material transactions by business partner can be sent to the business partner for communication and payment.

A shipping material account consists of an ID code, a description, and a shipping material accounting scheme.

Optionally, you can specify an external business partner for the shipping material account to indicate that the external business partner is the owner of the packaging materials.

A part of a shipping material account (SMA) that contains the criteria used to link packaging item transactions to a shipping material account.

A shipping material accounting scheme consists of these criteria:

• Business partner
• Site
• Packaging item
• Effective date

Of these criteria, the business partner is mandatory.

A code used, together with the ship-to type, to identify where goods are shipped to.

The ship-to type is used, together with the ship-to code, to identify where goods are shipped to.

The ship-to type can have the following values:

• Business Partner
• Warehouse
• Work Center
• Project

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

The pull-based material supply methods are:

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

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

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.

A method of analyzing the inventory, based on the turnover of items. Items with a low turnover (slow moving items) have a relatively low rate of usage compared to the normal amount of inventory carried.

The limit up to which an item is identified as a slow moving item.

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

A percentage used to calculate how orders are divided among suppliers.

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 shipping dock in the warehouse where items are held just before they are placed on any means of transport for shipment.

A unique code to identify transportation companies, used to facilitate automatic processing in the transportation industry.

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.

standard cost

The standard cost including any surcharges or discounts, is used as the firm value against which an item is valuated in the inventory. 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 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 production of non-customized items after receiving a customer order.

The smallest inventory level that can be registered in LN.

The stock point is defined by the following data:

• Warehouse
• Location: only if you have locations
• Item
• Inventory date: important if you work with LIFO or FIFO
• Lot: only if the item is low volume lot controlled

The lot number, serial number, inventory date, and/or effectivity unit of an item.

A condition that must be satisfied to store goods. Storage conditions must be linked to item(group)s and to warehouse locations to prevent storage of items at unsuitable locations.

Storage can be performed in two ways:

• By item, by excluding unsuitable locations
• By location, by excluding undesirable items

Inspections on items in inventory which require regular checkup. To carry out these checks or inspections, you must define the items and the reason for inspection. The selected items are blocked in inventory after which inspection orders are generated.

The document that states the warehouse or locations where goods are to be stored. A storage list is used by warehouse personnel to place the received items in the right location within the warehouse.

A specific storage round carried out by one employee or one vehicle.

The unit in which the quantity of goods stored is expressed.

Example

Storage unit: box

Inventory unit: liter

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

A warehouse from which items are issued that will be shipped from the related main warehouse.

The quantity that must be supplied to a shop floor warehouse.

In a Kanban environment:

• The signal supply quantity is the quantity supplied for a kanban signal by a kanban supply order.
• The total supply quantity is the aggregated supply quantity of the signals defined for an item and warehouse combination.

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

The type of the source that supplies the items.

LN distinguishes three supply types:

• Supplier
• Warehouse
• Work Center

The warehouse that supplies goods and materials to the shop floor warehouse.

A priority that is based on the planning priority rules or the cross-dock order priorities. LN uses the system priority along with the user priority to determine a cross-dock order's priority. LN generates cross-dock order lines and, during inbound advice, advises cross-dock order lines for cross-dock orders with the highest priority first.

The country in which the tax must be paid or reported. The tax country can be different from the country where the goods are issued or delivered.

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.

The amount by which a value is allowed to differ from the intended value.

An item representing a group of items that make up a set, for example, an airplane modification set consisting of the materials and tools to convert a passenger plane to a freight carrier plane, or the end-item - the highest level - of a bill of material (BOM) of a manufactured item. A topkit consists of various subkits.

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 you enter when you create the transaction such as a sales order or a warehouse receipt. Usually the transaction date is the current date. Only for backdated and antedated transactions, the transaction date differs from the current date. Internally, the transaction date is registered in UTC time.

The date on which the planned order was last changed.

The date and time on which a transaction was processed. In case of backdating, the transaction date precedes the actual log date.

For example, you can backdate a receipt. The receipt has receipt date July 12. If you confirm the receipt on July 15, the transaction date of the receipt is July 12 and the creation date or actual log date is July 15. The financial entries for the receipt are booked on the transaction date.

The date and time when the document (line) is changed and/or written to the history file.

The definition of the (logistic) origin of an integration transaction. The combination of a transaction origin (TROR) and the financial transaction (FITR) results in an integration document type.

A transaction can be an issue or a receipt.

The following transaction types are available:

• material requirement
• planned receipt

The transfer of goods from one warehouse to another (possibly including such activities as repacking).

A combined means of transport that consists of various vehicle types and/or means of transport which jointly transport a load. If a transport means combination includes more than one means of transport, Freight can perform load building for more than one means of transport per load. Transport means combinations are also used in freight order clustering. A transport means combination shows the combined means of transport that is to transport the goods listed on a freight order cluster.

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 .

A code that refers to special properties of a means of transport, or of a transport means group, such as:

• Cold storage
• Armored; high security

Transport types are used in the load building and freight order clustering engines of the Freight package. The main purpose of Transport types is to ensure that items are transported by a means of transport that has particular properties. Transport types are also used as a criterion to determine the costs of transportation.

The line station from which the supply of items is triggered.

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 unit of measure for the cost object. This unit can affect how budget line quantities are calculated.

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.

The person that works with an application software package.

A priority that is entered by the user. LN uses the user priority along with the system priority to determine a cross-dock order's priority. LN will generate cross-dock order lines and, during inbound advice, advise cross-dock order lines for cross-dock orders with the highest priority first.

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 actual price of an item, which is used in all financial transactions that involve the item.

The transactions include:

• Standard cost of goods sold
• Inventory transfer
• Issue to work-in-process value

The actual cost is calculated by using one of the actual costing methods (LIFO, FIFO, MAUC and Lot costing), or by using a standard cost valuation method.

The lot features that apply to some lots but not to others and are, therefore, not defined in the general lot data but are assigned to individual items.

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 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.

A recommendation to supply a shop floor warehouse based on the quantities defined for the kanban loop of the item and the warehouse. Warehouse order advices must be confirmed and transferred to convert them into actual production orders.

Defined for direct material supply, a user-specific cluster of warehouses, which consists of one or more supply warehouses and a number of destination warehouses.

The warehouse in which the receipt will take place.

A warehousing order to move an item between warehouses.

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

An entity that is used to group warehouses for inventory valuation purposes. To define a warehouse valuation group, you must link a warehouse valuation group code to the warehouses that you want to include in the warehouse valuation group. Warehouse valuation groups and item valuation groups are linked, for example, to inventory valuation methods to valuate the item-warehouse combinations included in the warehouse and item valuation groups.

A commission to assemble the components of an end item.

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 procedure to handle warehousing orders and handling units. A warehousing procedure comprises various steps, also called activities, that a warehousing order or a handling unit must take to be received, stored, inspected, or issued. A warehousing procedure is linked to a warehousing order type, which in turn is allocated to warehousing orders.

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 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.

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.

A receipt line with quantity zero.

A part of the warehouse that can be assigned to specific employees or vehicles. Each location can be assigned to a zone.