Define Settings for Packaging Actions

This document describes settings for packaging actions. Packaging actions are actions performed based on the packaging used.

Packaging actions are useful for:

  • Returnable packaging
  • Packaging charged to the customer
  • Tracking inventory levels of returnable packaging and corresponding inventory balances

Packaging actions can be divided into two parts:

  • Creating customer delivery charges automatically, based on the actual packaging used for the delivery. This only applies to customer orders.
  • Managing the packaging ledger and inventory of the returnable packaging, tracking your own and external parties' returnable packaging, as well as identifying who holds them.

You can track both as packaging and as stock.

Outcome

You have defined settings for packaging charges and the packaging ledger.

Follow these steps

Creating customer order charges for packaging

  1. In 'Packaging Type. Open' (DRS080), to specify which customer order charges are applied, use the Apply CO charge to select option 1-Yes or 2-Yes, multiply the charge amount by the number of packages.
  2. In 'Packaging. Open' (MMS050), define your packaging and connect a packaging type activated for order charges. Connect the packaging to an item that has this setup:

    • The cost price is specified.

    • The item is a sales item.

    • The item exists in the warehouses where the packaging will be used.

    • The country of origin exists.

    Packaging charges only apply to customer orders (CO).

  3. In 'Dispatch Policy. Open' (MWS010), select a packing reporting method. You may also select the automatic executions of packaging actions.
  4. Define the charges and the related amount in 'CO Charge. Open' (OIS030).
  5. Define which charges are added to a delivery in 'Packaging Charges Selection Table. Open' (MWS135). The objects used for controlling charges in (MWS135) are set per packaging type in 'Generic Object Control Table. Open' (CMS017) for the program (MWS135). You can start (CMS017) from 'Available Object Control Parameters. Open' (CMS016).
  6. In (MWS135), define the rules for the selection of the charge to apply. The applicable charge is retrieved per priority and the value of the selected objects.
  7. Select the Packaging act check box for the CO order type in 'CO Type. Open' (OIS010).

Setting up packagings for packaging actions and packaging ledger

During dispatch, when goods are packed, two updates occur:

  • The packaging ledger is updated to reflect the balance for each holder, such as a warehouse, customer, supplier, or forward agent.
  • The stock levels for the packaging item are updated.

Follow these steps to set up packagings for packaging actions and packaging ledger:

  1. In (MWS010), select a packing reporting method and optionally specify an automatic execution of packaging actions.
  2. 2. In (DRS080):
    1. Select the In pckng ledger check box.
    2. Specify the order line creation method.
    3. Specify the document text, the general packaging type and the general item type.
  3. In (MMS050), select the packaging type as described above an connect the packaging to an item representing it. The item must have this setup:

    • The cost price is specified.

    • The item is a sales item.

    • The item exists in the warehouses where the packaging will be used.

    • The country of origin exists.

  4. Select the Packaging act check box for the CO order type in (OIS010), 'RO/DO Order Type. Open' (CRS200) and 'PO Type. Open' (PPS095).

Defining rules for the holder control

On a customer delivery transported by a forwarding agent, the parties holding the packaging can differ. For example, small boxes can stay with the customer, while the large pallets may be held by the forwarding agent. This section explains how to set up rules to control the holder of the packaging.

  1. In 'Generic Object Control Table. Open' (CMS017), create a record for 'Packaging holder selection table. Open' (DRS081) and specify the packaging type (rules for controlling the holder are defined per packaging type).
  2. In (CMS017/E), specify the object that will be used to define the rules. Priority 1 is the highest priority. Set status to 20-Active.
  3. In (DRS081), for each packaging type, define the rules that apply to select the holder. The rules are defined per priority, using the objects setup in (CMS017).

    In the Holder type field you can select who holds the packaging: 1-Forwarder or 2-Consignee.

    You can overrule the packaging type settings for Order line creation method, Order type and Apply CO Charge fields.

For example:

  • (CMS017) - For packaging PAL, the holder is selected depending on the Consignee field value
  • (DRS081) - If the consignee is CUSTOMER A, the forwarder keeps the packaging, and a charge is applied. Order line creation method 2 is applied, so that the packaging item is issued with a requisition order.
  • (DRS081) - If the consignee is WAREHOUSE B, the consignee keeps the packaging. Order line creation method 1 is applied, so that the packaging item is also distributed to warehouse B.

Defining an owner

  1. In 'Item Owner. Open' (CRS685), specify a code for the owner or holder of the packaging materials.

    Option 11='M3 ID' opens 'Owner. Connect Identity' (CRS686).

  2. Specify the owner type: 1 for a supplier, 2 for a customer, 3 for a warehouse.
  3. Specify the related M3 ID from 'Supplier. Open' (CRS620), 'Customer. Open' (CRS610) or 'Warehouse. Open' (MMS005) .
    Note: You can connect several owner types and M3 IDs to one owner.

Parameters to set

Table 1. Settings for packaging charges

Program ID/ Panel

Field

The field indicates …

(MWS010/G)

240 Packing reporting method

… the packing reporting method. Simple packing (method 1) or advanced packing (methods 2, 3 and 4) work together with customer charges.

(MWS010/G)

265 Automatic executions of packaging actions

… whether packaging actions should be executed automatically as soon as a delivery is fully packed or fully issued.

0 = No, packaging actions are performed manually by using option 39 in (MWS410)

1 = Yes, packaging actions are performed automatically when fully packed

2 = Yes, packing actions are performed automatically when the delivery is confirmed as shipped.

(MMS050/E)

Packaging type

… the packaging type used to group different packaging or containers to be printed on freight documents.

You must select a packaging type that has the 'Apply CO charges' field activated (1 or 2) in (DRS080).

(DRS080/E)

Apply CO charges

… whether packaging is charged to the order. This applies to customer orders only, transaction type=31 (TTYP=31).

For alternative 1 and 2, the cost of the packaging is added to the order.

You must select alternative 1 or 2.

(OIS030/B)

Charge

… the unique ID of a charge.

(OIS030/E)

Internal charge

… whether the charge is internal.

The valid alternatives are:

0 = No, external charge

1 = Yes, internal charge.

An internal charge is added to the total order cost when the contribution margin is calculated. The customer is always invoiced for external charges, while internal charges are not invoiced.

Select external charge (0).

(CMS016/B)

Object control parameter

.. the available object control parameter, where you can define your objects and values.

(CMS017/B)

Program name

… the program that is used for the object control table. In this case, fill in 'MWS135' here.

(CMS017/E)

Warehouse

… the warehouse for which this object control table is valid.

(CMS017/E)

Priority

… the sequence in which each information field should be displayed.

To change the sequence, switch the numbers. To add new information fields, enter the numbers and names of the desired information fields.

Example:

To add a new information field between 10 and 20, assign this new field a number between 11 and 19. Press Enter. The new field is then placed in the correct order.

(CMS017/E)

Field 1, 2 ,3 ,4

… a field or data element from a specific file.

This field is used to create keys or search paths for user defined tables and also to create the contents of user defined files.

Note: 

  1. The 'OATEPA=Packaging terms' field can only be used if a separate delivery number is always created for one customer order. The '020 One order per delivery number' field in (MWS010) must be activated.

  2. You have to finish the packaging type entry in (DRS080) before you can connect the packaging type to an object table in (CMS017). When this is done, you start (MWS135) from the (DRS080/E) panel by using F14=Packaging charges.

(CMS017/E)

Status

… the status of the generic object control table. The valid alternatives are:

10 = Preliminary

20 = Definite

90 = Blocked/Expired.

(CRS109/B)

Field group

… a grouping of several fields from different files that regulate matrix entries. In this case, the MMAD6 'Packaging Charges Selection' field group will be selected.

Field groups are defined by the system and cannot be changed.

(MWS135/B)

Priority

… the table priority from the table in (CMS017). When searching for packaging charges, the tables are searched in order of priority for a set of rules that correspond to the specified object values. These sets of rules are displayed below as 1, 2 or 3 fields called the 'Start value 1, 2, 3' field.

(MWS135/B)

Start value 1, 2, 3

… the first, second and third valid value to be compared with the contents of a control object. If the contents are greater than or equal to this start value, the record will be accepted.

If there are several start values, the one that is the closest to the lowest value is valid.

Example:

Start value 1 could be 'Product group'. Select a product group by pressing F4=Prompt.

Start value 2 could be 'Item no.'. Select an item number by pressing F4.

Start value 3 could be 'Customer no.'. Select a customer number by pressing F4.

(MWS135/E)

Charge

… the unique ID of a charge. This is the charge you defined in (OIS030), and you connect it here to the object control table.

(OIS010/J)

Packaging action

… whether a packaging action is taken for the customer order type. You must select alternative 1=Yes.
Table 2. Settings for packaging ledger management

Program ID/ Panel

Field

The field indicates …

(MWS010/G)

240 Packing reporting method

… the packing reporting method. Simple packing (method 1) or advanced packing (methods 2, 3 and 4) work together with packaging ledger management.

(MWS010/G)

265 Automatic execution of packaging actions

… whether packaging actions should be executed automatically as soon as a delivery is fully packed or fully issued.

0 = No, packaging actions are performed manually by using option 39 in (MWS410)

1 = Yes, packaging actions are performed automatically when fully packed

2 = Yes, packing actions are performed automatically when the delivery is confirmed as shipped.

(DRS080/E)

Include in packaging ledger

… whether packaging of this packaging type is included in the packaging ledger. Select alternative 1=Yes.

(DRS080/E)

Method create order lineq

… the method for creating a new order line. Select 1=Add line to order (CO/DO/RO), or 2=Create new requisition order. If you want the packaging transactions to be included in the inventory balance and history ((MWS068) and (MWS070)), you must select alternative 1 or 2.

For alternative 1, the packaging is added as an order line on the first order for the delivery. The added order line will be automatically issued.

For alternative 2, a requisition order is created for the packaging regardless of whether the packaging was used for a CO, DO or RO. The requisition order will be created using the order type specified for the packaging type.

(DRS080/E)

Document text

General packaging type

General item type

… the three fields for the text on the packaging documents.

(MMS050/E)

Item number

… the item number connected to this packaging. If packaging actions are activated for this packaging's packaging type, then an item number must be entered. The item number entered here cannot be used for another packaging.

When the packaging ledger is to be updated for inbound goods, this item number is used to find which packaging should be used to update it. For the packaging ledger to be updated, the packaging type must have this action activated and the order type (for example, PO type) must have packaging actions activated. Under these conditions, a receipt of the item entered here will result in the packaging ledger being updated for the relevant owner/holder.

(OIS010/J)

(CRS200/H)

(PPS095/I)

Packaging action

… whether a packaging action is taken for the order type. You must select alternative 1=Yes.

CRS685/B)

Owner

… the owner or holder of stock or packaging materials.

This field is used as the identity against which the packaging ledger (MWS080) is updated.

(CRS686/B)

Owner type

… the type of M3 identity that is associated with the owner.

The valid alternatives are:

1 = Supplier

2 = Customer

3 = Warehouse.

Note: You can have several owner types connected to one owner.

(CRS686/B)

M3 ID

… the M3 ID that is connected to an owner. The M3 ID is controlled by the owner type.

M3 ID starts (CRS620) for owner type 1, (CRS610) for owner type 2 and (MMS005) for owner type 3. Select the appropriate M3 ID.

Note: You can have several M3 IDs connected to one owner.
Table 3. Settings for defining rules for the holder control

Program ID/ Panel

Field

The field indicates …
(CMS016/B) Object control parameter … the available object control parameter, where you can define your objects and values.
(CMS017/B) Program name … the program for the object control table. In this case, specify DRS081 here.
(CMS017/E) Packaging type … the packaging type for which this object control table is valid.
Sequence

… the sequence in which each the table is read when trying to identify an applicable rule. Sequence 10 is read before sequence 90.

The field priority is in line with the sequence.
Field 1, 2 ,3

… a field or data element from a specific file.

This field is used to create keys or search paths for user defined tables and to create the contents of user defined files.
Status

… the status of the generic object control table. These are the valid alternatives:

  • 10 = Preliminary

  • 20 = Definite

  • 90 = Blocked/Expired
(CRS109/B) Field group … a grouping of several fields from the delivery head (MHDISH) that regulate matrix entries. In this case, the PKHST Packaging Holder Selection field group is used. Field groups are defined by the system and cannot be changed.
(DRS081/E) The right section of the screen displays the original setup from the packaging type. The left section of the screen displays the overriding parameter.
Holder type

… the parties that will be the holder of the packaging after packaging actions are executed.

These are the valid alternatives:

  • 1-Consignee - The recipient of the delivery holds the packaging. It can be a customer, a warehouse, or a supplier.
  • 2-Forwarder - The forwarding agent used for the transport of the delivery holds the packaging.
Order line creation method

You can overrule the (DRS081) setup for the order line creation method.

The field indicates the action to take to create an order line.

These are the valid alternatives:

  • 0- None

  • 1- Add line to order (CO/DO/RO)

  • 2- Create new requisition order

For alternative 1, the packaging item is added as an order line on the first order for the delivery. The added line is issued automatically .

For alternative 2, a requisition order is created for the packaging item, using the order types below.
Order type Order type for requisition order issue and requisition order receipt must be provided for line creation method 2. If the holder type is 2-Forwarder, a requisition order issue is mandatory even for method 1, as in the context of distribution where the packaging is kept by the holder: the line creation is replaced by a requisition issue.
Apply CO charge … if packaging is charged to the order. This only applies to customer order (TTYP= 31).
Related topics