Enabling Cumulative Reconciliation

This document explains how you define settings for cumulative reconciliation.

The purpose of cumulative reconciliation is to match the supplier's cumulative figure with the customer's cumulative figure sent in the delivery schedule. Cumulative reconciliation is the reconciliation method that is most frequently used.

Limitations

Five possible reconciliation methods in M3 exist:

  • Delivery note reconciliation
  • Cumulative reconciliation
  • Proactive sequence reconciliation
  • Reactive sequence reconciliation
  • Discrete reconciliation.

This document only explains settings for the cumulative reconciliation.

Outcome

Settings for cumulative reconciliations are defined.

You choose this method if the customer sends cumulative information in the delivery schedule.

Cumulative figures are calculated from an agreed-upon date. Whenever the supplier delivers goods, the delivery is added to the cumulative figures for that item. When the customer receives the delivery, the customer will add its cumulative figures. This is how the actual status regarding deliveries is determined.

The DS item line table (ORSITM) is updated with the customer's cumulative information used as the synchronizing point for the reconciliation.

The new net schedule file (ORSNTN) will be updated with the correct demand quantity based on the reconciliation balance calculation. ORSNTN is used as a work file for storage of the new net schedule while the net schedule creation activity is in progress.

During the net schedule creation, the customer order line file (OOLINE) will be updated with the correct demand quantity based on the reconciliation balance calculation.

Follow These Steps

Basic Parameters

  1. Start 'Settings – Summary Inventory Statistics' (CRS716). Activate the 'Update cumulative – customer order' field.

  2. Start 'Settings – Partner' (RSS015). Define parameters 015, 020, 025, 030 and 035. 025 consists of two fields. See Parameters to set table for more details.

Parameters for Check and Update Reconciliation Information

  1. Start 'Item. Update Cumulative Quantities Delivered' (MMS072). Fill in the item, internal reference (1) and customer. See Parameters to set table for more details.

  2. Open the E panel. Select the 'Year to year cumulative calculation' check box. The 'Cumulative from' date will then be the first day of the current year (EX: 040101) by default.

    If you do not select the Y2Y cum calc check box, then you must enter a cumulative From date manually.

  3. Start 'Item. Update Cum Qty Delivered/Lines' (MMS073) by using option 11=Lines on the (MMS072/B) panel.

  4. Press F14=Create. This will create a current quantity per cumulative level.

    The cumulative level(s) displayed depend on whether you have filled in warehouse, customer address, model/year, delivery spec and blanket agreement on the header. It also depends on the settings in (RSS015), parameter 035.

  5. Open the E panel for each line (cumulative level) and change the quantity, if necessary.

  6. Click Next.

Parameters to Set

Basic Parameters

Program ID/Panel Field The field indicates …
(CRS716/E) Update cumulative - customer orders

… whether to calculate cumulative quantities for customer orders.

You must select the check box (1) to be able to use cumulative reconciliation for customer orders.

The results can be displayed in (MMS072).

(RSS015/E) 015 Reconciliation method

… how to perform reconciliation.

Select reconciliation method 2=Cumulative.

(RSS015/E) 020 Reconciliation level

… how the delivery schedule is reconciled against on-hand orders and delivery transactions. The values indicate how far the reconciliation process will be allowed to continue before it is interrupted.

You must select method 0 or 1.

0 = If the quantities for an individual record in the delivery schedule are different from those in the customer order system, the run is stopped.

1 = If the quantities for an individual record in the delivery schedule are different from those in the customer order system, the discrepancy is adjusted in the customer order system according to the delivery schedule.

(RSS015/E)

first field

025 Reconciliation

… whether the field heading and field contents in (RSS100/M) and (RSS101/M) should be displayed, and whether the contents can be changed.

You open (RSS100/M) with option 25='Create net schedule' on the (RSS100/B) panel.

You open (RSS101/M) with option 25='Create net schedule' on the (RSS101/B) panel.

(RSS015/E)

second field

025 Back order reconciliation

… whether the delivery schedule should be reconciled against M3 customer orders and delivery history transactions.

Reconciliation means that a new delivery plan for an item is checked against current order situations and the latest deliveries.

This check box (the second check box) must be selected (1).

(RSS015/E) 030 Cumulative type

… the cumulative type that is transmitted in the DS and should be used for reconciliation purposes.

Cumulative type 01='Quantity actually received' is the most commonly used type.

(RSS015/E) 035 Cumulative level

… the cumulative level that should be used for reconciliation purposes.

Cumulative level 11 (item alias, customer and address) is the most commonly used level.

Parameters for Check and Update Reconciliation Information

Values in (MMS072) and (MMS073) can be created either manually or automatically. If they are not created manually, then the system will create them automatically during the 'Check and Update Reconciliation Information' process.

(MMS072/B) Item number … the item number connected to the customer.
(MMS072/B) Internal reference type

… whether to enter the customer or the supplier together with the item. The actual customer or supplier number is entered in the 'Internal reference' field.

You must select 1=Customer.

(MMS072/B) Internal reference

… the customer or supplier to enter together with the item.

If the 'Internal reference type' field is set to 1=Customer, then the internal reference must be a customer number retrieved from (CRS610).

(MMS072/E) Cumulative from date

… the start dates for calculating cumulative quantity. This is often the first day of the year (EX: 040101).

This field is editable if the 'Y2Y calc' check box is not selected.

(MMS072/E)

Y2Y calc

… the year-to-year cumulative calculation.

The valid alternatives are:

0 = Recalculate the cumulative quantity if the cumulative From date changes.

1 = Reset the cumulative quantity at the start of each new year.

If you select alternative 0, then you must fill in a date in the 'Cumulative from date' field.

(MMS072/E) Deduct returns … whether quantity returns should affect the cumulative values in 'Customer Return. Open' (OIS390).
(MMS073/B) Cumulative level

… the cumulative level defined in (RSS015) that should be used for reconciliation purposes. This is specified for each alias number and customer.

Cumulative level 11=Address is the most commonly used level.

If no level is defined in (RSS015) and no warehouse or address is selected on the (MMS073/B) panel, then the system will use level 01=By customer only.

If no level is defined in (RSS015) and no address is selected on the (MMS073/B) panel, the system will use level 02=By customer and warehouse.

If no level is defined in (RSS015) but a warehouse and an address are selected on the (MMS073/B) panel, the system will use level 03='Customer, warehouse and address' and level 11=Customer and address.

(MMS073/E) Cumulative quantity

… the cumulative quantity for the current cumulative level.

Example: Customer Y has received 100 pieces of item X during the year.

Cum level 01=Customer only – Cum qty=100

Cum level 02=Warehouse – Cum qty=40 (40 pieces from the warehouse selected. The other 60 pieces must have been delivered from other warehouses.)

Cum level 03=Whs and cus addr – Cum qty=15 (15 pieces from the selected warehouse to the selected customer/address. 25 pieces must have been delivered to other addresses connected to this customer from this warehouse.)

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