Intermediate Stock
Brief overview of concept
In a fast-moving environment where a material is consumed as soon as it is manufactured, it may be difficult to maintain the stock inventory in the system. In particular, when the reporting of the material issue occurs before the receipt, it results in a negative on-hand balance (OHB) in the system, and the issue transaction stops.
‘Intermediate stock’ maintains a lot controlled material as an interim stock at the manufacturing order (MO) reporting processes, where material issue can be reported in ‘Manufacturing Order. Report Issue’ (PMS060) but not yet received in the stock.
If the material issue results in a negative OHB, a supplying MO must cover the negative issue quantity up to zero before it is closed.
Before you start
Basic data to activate the parameter ‘Intermediate stock’, see: Enter Material in Bill of Material.
A manufacturing order for the manufactured material must be released with a lot number created in ‘Lot/Serial Number. Open/Connect to Item’ (MMS235). This can be created with ‘Create lot number at MO release’ parameter, activated on ‘Manufacturing Order Type. Open’ (PMS120/G).
Follow these steps
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Report material issue
The intermediate stocked material is reported in (PMS060) and can be consumed to negative OHB if the consumed lot number has a lot reference to an open MO, called supplying MO. If the supplying MO is flagged as completed, it is not possible to report more material issue than available OHB.
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Report receipt of the material
A proposed pending receipt balance is displayed on ‘Manufacturing Order. Report Receipt’ (PMS050/E) with a reporting time earlier than an issue transaction which consumed the balance to negative. If there are several pending balances, the proposed pending balances for the supplying MO is displayed on (PMS050/J).
You can report receipt on another balance which is not a pending receipt balance. However, the supplying MO cannot be closed until the receipt is covering the negative issue quantity up to zero.
Maintaining Intermediate Stock
The material receipt must be reported on a reporting date or time before the earliest issue transaction which triggers a negative OHB per pending receipt balance. For example, if two issue transactions are reported at 08:00:00 and at 16:00:00 respectively, the material receipt must be reported before 08:00:00.
Within the same reporting date, the earliest issued transaction time which results in a negative OHB, determines the earliest reporting time for the pending receipt balance. Even if the material receipt covers the negative OHB, and a new pending receipt is created on the same balance, the earliest issued transaction time is still in effect.
When the material receipt covers the negative OHB on a previous date, the earliest reporting time is removed to reflect a new reported pending receipt balance.
- Intermediate stock can be selected only for one material in a structure with the issue method set to 2 (requisition).
- Schedule Level Reservation functionality is not available for an intermediate stocked material.
- Aging functionality is not available for the intermediate stocked material and is considered to be zero at receipt in (PMS050).