2 Configuring the Outbound Inventory Management System

This chapter contains the following topics:

2.1 Understanding System Configuration for Outbound Inventory Management

Before you use the JD Edwards EnterpriseOne Outbound Inventory Management system, you must define certain information that the system uses during processing. You use this information to configure the system to meet the company's business needs.

This table describes the information that you must set up for this system:

Setup Information Description
Activating Outbound Inventory Management You activate Outbound Inventory Management to use the system.
UDCs You can set up UDCs to configure the system for order processing.
Constants You set up constants to provide the system with the following types of default information:
  • System constants determine which functions to perform.

  • Branch/plant constants control day-to-day transactions within a branch/plant.

  • Location format determines how you identify item storage locations in a branch/plant.

  • Item availability defines how the system calculates the number of items that each branch/plant contains.

Order Line Types You can define codes that determine how the system processes a detail line in an order.
Order Activity Rules You can establish the sequence of steps to process an order.
AAIs You set up AAIs to provide JD Edwards EnterpriseOne Sales Order Management with accounting information and general ledger relationships that are necessary to interact with JD Edwards EnterpriseOne General Accounting.

2.2 Activating the Outbound Inventory Management System

This section provides an overview of system activation and discusses how to activate the JD Edwards EnterpriseOne Outbound Inventory Management system.

2.2.1 Understanding System Activation

Before you can set up and process consigned inventory and VMI transactions, you must activate the JD Edwards EnterpriseOne Outbound Inventory Management system. The system code for Outbound Inventory Management is 42I. To activate system 42I, a record containing the following data must exist in the OneWorld System Control File (F99410) table:

  • The Data Item field contains SY42I.

  • The Use Module field contains Yes.

You activate system code 42I using the EnterpriseOne System Control program (P99410). The JD Edwards EnterpriseOne system stores system constants in the F99410 table.

2.2.2 Activating JD Edwards EnterpriseOne Outbound Inventory Management

To activate JD Edwards EnterpriseOne Outbound Inventory Management:

  1. Access the EnterpriseOne System Control - Revisions form.

    Form Name Form ID Navigation
    EnterpriseOne System Control - Revisions W99410B Enter P99410 in the Fast Path field and press Enter.

    On the Work With EnterpriseOne System Control form, select the row containing data item SY42I and click Select.


  2. Verify that the value SY42I is in the Data Item field.

    The system displays the system constant description associated with SY42I, Use Outbound Inventory Module, in the alpha description field

  3. Select Yes in the Module Existence options.

  4. Click OK to activate JD Edwards EnterpriseOne Outbound Inventory Management.

2.3 Setting Up UDCs

This section provides an overview of each UDC that you should set up for JD Edwards EnterpriseOne Outbound Inventory Management system.

UDCs enable you to configure the way the system operates. You must add these code types in the UDC tables.

2.3.1 Outbound Inventory Interface (42I/LT)

Outbound Inventory Interface defines the line types used for outbound inventory transactions. The system contains the following hard-coded outbound inventory interfaces:

  • S: Internally Owned Shipment

  • B: Internally Owned Billing

  • V: Customer Owned Shipment/Billing

You should not change the hard-coded outbound inventory interfaces.

2.3.2 Outbound Inv. Agreement Type (42I/AT)

You use the Outbound Inv. Agreement Type UDC to define the agreement types you use with the JD Edwards EnterpriseOne Outbound Inventory Management system. The system contains the following hard-coded values:

  • C: Consigned Inventory Agreement

  • I: Internally Owned VMI Agreement

  • V: Customer Owned VMI Agreement

You should not change the hard-coded outbound inventory agreement types.

2.3.3 Action When Agreement Expires (42I/AN)

You use this UDC to indicate the next action after an agreement has expired. The system contains the following hard-coded values:

  • B: Bill for remaining goods

  • E: Extend agreement

  • R: Return remaining goods

You should not change the hard-coded outbound inventory interfaces.

2.3.4 Outbound Locations Type (42I/OL)

You use this UDC to set up outbound inventory location types. The system contains the following hard-coded outbound inventory location types:

  • I: In-Transit Location

  • R: Hold Location

2.3.5 Replenishment Method (42I/RP)

You use this UDC to specify the replenishment method the system uses. The system contains the following hard-coded values:

  • C: Custom Method

    Select this option to specify that the system uses a custom method to generate replenishment orders.

    Note:

    This is a future use field. All functionality related to this field may not be currently available.
  • O: One-to-One

    Select this option to specify that the system uses one-to-one replenishment method.

    When you select the one-to-one replenishment method, the system generates replenishment orders as soon as quantity is consumed from the customer's location.

  • R: Reorder Point

    Select this option to specify that the system uses reorder point replenishment method.

    Reorder point is the quantity that triggers generation of replenishment orders. You set up a reorder point as the threshold quantity you must maintain at the customer's location.

    When you select the reorder point replenishment method, the system generates replenishment orders when the quantity available for consumption at the customer's location is less than the reorder point.

2.3.6 Audit Frequency (42I/AF)

You use this UDC to specify the frequency for conducting audits. The system contains the following hard-coded values:

  • D: Daily

  • H: Semiannually

  • M: Monthly

  • Q: Quarterly

  • W: Weekly

  • Y: Annually

2.3.7 Reason Code (42I/RC)

You use this UDC to specify the reason why an agreement is changed. JD Edwards EnterpriseOne has predefined the following reason codes:

  • DIS: Damaged in Shipment

  • EXP: Expired Date

  • NTS: Not Up To Standard

  • QTY: Quantity Problem

2.3.8 Hold Reason Code (42I/RT)

You use this UDC to specify why quantity is kept on hold. JD Edwards EnterpriseOne has predefined the following reason codes:

  • DIS: Damaged in Shipment

  • EXP: Expired Date

  • NTS: Not Up To Standard

  • QTY: Quantity Problem

2.3.9 Outbound Cycle Count Status (42I/CS) (Release 9.2 Update)

You use this UDC to specify the status for outbound inventory cycle count. The system contains the following hard-coded values:

  • 10: Items Selected for Count

  • 20: Items Entered after Count

  • 30: Items Printed

  • 40: Approved

2.3.10 Consumption Type (42I/CT) (Release 9.2 Update)

You use this UDC to specify whether a consumption record represents full consumption, partial consumption or consumption reversal. D Edwards EnterpriseOne has predefined the following codes:

  • 1: Consumption Record

  • 2: Consumed Record Fully Reversed

  • 3: Partially Reversed (Future Use)

  • 4: Consumption Reversal record

2.3.11 Outbound Hold/Return Status (42I/OS) (Release 9.2 Update)

You use this UDC to specify the hold or return status of outbound inventory. The system contains the following hard-coded values:

  • 10: Moved to hold during acknowledgement

  • 20: Moved to hold after acknowledgement

  • 30: Moved back to outbound location

  • 40: Returned from hold location

  • 50: Return through RMA (Return Material Authorization)

2.4 Setting Up Replenishment Frequency (Release 9.2 Update)

This section discusses how to set up replenishment frequencies for outbound inventory management.

2.4.1 Understanding Setting Up Replenishment Frequency

You use replenishment frequency to generate replenishment orders based on pre-configured dates and schedules. You can use the Replenishment Frequency value to trigger replenishment orders daily, weekly, monthly or yearly. You use the Frequency Schedule Recurrence Revision application (P42I14) to create frequency schedules.

2.4.2 Setting Up Replenishment Frequency for Outbound Inventory Management

Access the Frequency Schedule Recurrence Revision form:

Form Name Form ID Navigation
Frequency Schedule Recurrence Revision W42I14C On the Outbound Inventory Agreement Details form, click the visual assist button next to the Frequency Schedule field. Click Add.

On the Frequency Schedule Recurrence Revision form, complete the following fields:

Outbound Inventory Frequency Schedule

Enter a unique name for the replenishment frequency schedule.

Daily

Use this option to set up replenishment frequency for days in a week.

Weekly

Complete the fields on the Weekly tab to set up weekly replenishment frequency. Select the days of the week when the system must trigger replenishment. The system also enables you to create replenishment every (n) weeks.

Monthly

Complete the fields on the Monthly tab to set up monthly replenishment frequency. You can set up replenishments to trigger on every (n) day of every (x) month. You can also set up replenishment frequency using UDC (H91/WK) and (H91/DW). for example, you can set up replenishment frequency as every second weekday of every 2 months.

Yearly

Complete the fields on the Yearly tab to set up yearly replenishment frequency. You can set up replenishments to trigger on a specific month date. For example, you can schedule a replenishment to trigger on every January 1.

You can also set up replenishment frequency using UDC (H91/WK), (H91/DW) and (H91/MY). For example, you can set up replenishment frequency as the second Sunday of January.

2.5 Setting Up Outbound Branch/Plant

This section provides an overview of outbound branch/plant and discusses how to setup outbound branch/plants.

2.5.1 Understanding Outbound Branch/Plant

An outbound branch/plant is a virtual branch/plant used to manage consigned or vendor managed inventory through the JD Edwards EnterpriseOne Outbound Inventory Management system.

2.5.2 Setting Up Outbound Branch/Plant

Access the Branch/Plant Constants form.

Form Name Form ID Navigation
Branch/Plant Constants W41001H Sales Order Management Setup (G4241), Branch/Plant Constants.

Click Add on the Work With Branch/Plant Constants form.


To set up a branch/plant as outbound branch/plant, complete the following fields:

Outbound Inv Branch

Select this option if you want to use the branch/plant to complete outbound inventory transactions.

Note:

  • This chapter discusses setting up a branch/plant as an outbound branch/plant. To know more about setting up branch/plants in JD Edwards EnterpriseOne, see "Defining Branch/Plant Constants" in the JD Edwards EnterpriseOne Inventory Management Implementation Guide.
  • The JD Edwards EnterpriseOne Outbound Inventory Management system provides you the flexibility to create one or more branch/plants for one or more customers.

    For example, you can create one branch/plant for multiple customers or create different branch/plants for different customers.

2.6 Setting Up Outbound Inventory Locations

This section provides an overview of outbound inventory locations and discusses how to set up outbound inventory locations.

2.6.1 Understanding Outbound Inventory Locations

Before you can use the JD Edwards EnterpriseOne Outbound Inventory Management system, you must setup outbound inventory locations. You must setup the following locations:

  • Outbound inventory location

  • In-transit location

  • Hold Location

2.6.1.1 Outbound Inventory Location

Before you can use the outbound branch/plant, you must create locations in it. Use this location as the customer's location used to store and maintain the inventory shipped to the customer. For example, you can use customer number or the global locator number (GLN) of the warehouse as the outbound inventory location.

2.6.1.2 In-Transit Location

You create an outbound inventory in-transit location to hold inventory that has been shipped from the supplier but not yet received at the customer's location.

2.6.1.3 Hold Location

You set up an outbound inventory hold location to hold inventory that has been received at the customer's location but is unusable.

For example, inventory received at a customer's location may have been damaged in shipment or is past its expiry date. In such cases, you move the inventory from the customer's location to the hold location.

When you move inventory to the hold location, it is unavailable for consumption.

Note:

You can move the inventory from the hold location back to the customer's location after it is made usable.

2.6.2 Prerequisites

Before you complete the tasks in this section, you must have:

  • Set up an outbound branch/plant.

    See Setting Up Outbound Branch/Plant

  • Created locations using the Location Master application.

  • Set up created locations as staging locations.

Note:

The outbound inventory in-transit and hold locations are temporary locations. You must set up these locations as staging locations before you use them as in-transit and hold locations.

2.6.3 Setting Up Outbound Inventory Locations

Access the Outbound Inventory Location Revisions form.

Form Name Form ID Navigation
Outbound Inventory Location Revisions W42I05B Outbound Inventory Setup (G42I41), Outbound Inventory Locations.

Click Add on the Work With Outbound Inventory Locations form.


2.6.3.1 Setting Up In-Transit Location

To set up an outbound inventory in-transit location, complete the following fields on the Outbound Inventory Location Revisions form:

Outbound Branch/Plant

Enter the outbound branch/plant under which you want the in-transit location.

See Setting Up Outbound Branch/Plant.

Location

Enter the location which you want to set up as an in-transit location.

Location Type

Enter I to set up the location as an in-transit location.

2.6.3.2 Setting Up Hold Location

To set up an outbound inventory hold location, complete the following fields on the Outbound Inventory Location Revisions form:

Outbound Branch/Plant

Enter the outbound branch/plant under which you want the hold location.

See Setting Up Outbound Branch/Plant.

Location

Enter the location which you want to set up as a hold location.

Location Type

Enter Rto set up the location as a hold location.

2.7 Setting Up AAIs for Outbound Inventory Management

This section provides an overview of AAIs for Outbound Inventory Management and discusses how to set up AAIs for Outbound Inventory Management.

2.7.1 Understanding Outbound Inventory AAIs

Each time you enter a transaction for which the system must create journal entries, the system must locate the appropriate account numbers. It does this by reviewing the AAI tables that correspond to the transaction.

When you enter an internally owned shipment order, the system uses the 4243 and 4240 AAIs.

AAI Description
4243 Used for tracking inventory at the customer's location. This AAI is used exclusively for internally owned shipment orders.
4240 Credits the inventory value to an inventory account.

2.7.2 Setting Up AAIs for Outbound Inventory Management

Access the Work With AAIs form and click the Add button.

Form Name Form ID Navigation
Work With AAIs W40950A Enter P40905 in the Fastpath.

2.7.2.1 Consigned Inventory

On the AAI Record Types form, complete the following fields:

AAI Table Number

Enter 4243. For internally owned shipment orders, the system uses the AAI 4243.

Description

Enter a description for the AAI. For example, you can enter 'Consigned Inventory'.

Text Only

Enter N.

Entering N indicates that the line you are creating here is not text only and is a line for which you plan to define AAI information.

Note:

The code you enter here determines whether the system displays an option field next to this line on the Automatic Accounting Instruction screen.

2.7.2.2 Inventory

AAI Table Number

Enter 4240. For updating inventory value to an inventory account, the system uses the AAI 4240.

Description

Enter a description for the AAI. For example, you can enter 'Inventory'.

Text Only

Enter N.

Entering N indicates that the line you are creating here is not text only and is a line for which you plan to define AAI information.

Note:

The code you enter here determines whether the system displays an option field next to this line on the Automatic Accounting Instruction screen.

2.8 Setting Up Outbound Inventory Order line Types

This section provides an overview of order line types and discusses how to set up order line types.

2.8.1 Understanding Outbound Inventory Order Line Types

When you enter detail information for an outbound inventory order, you enter the quantity, price, and cost for each item. You can also enter an internally owned shipment line, a non-stock item, and vendor managed inventory information in the same sales order.

Each entry is a line. A line is the information for an item or service that you are ordering as it pertains to the order. The system processes each line based on a line type.

A line type is a code that the system uses to process each detail line that you enter for a specific order type. For example, you can specify line type S for stock items. The system determines whether it should increase or decrease the quantity of the item in inventory. You can specify line type F for freight charges. The system determines from the definition of the line type that this item is not an inventory item.

You can specify how the system uses line types in the general ledger and within JD Edwards EnterpriseOne Outbound Inventory Management. For example, when you complete an internally owned shipment transaction, you can assign a line type for internally owned shipments. The system records the transaction according to the information that you specified for the line type. In this case, the system does not associate any price with the internally owned shipment line type.

You must create the following line types to use the JD Edwards Outbound Inventory Management system:

  • S: Internally owned shipment (used for internally owned shipment orders)

  • B: Internally owned billing (used for internally owned billing orders)

  • V: Customer owned shipment/billing (used for customer owned VMI orders)

The following table describes the three different line types used for JD Edwards EnterpriseOne Outbound Inventory Management system:

Line Type Line Type Description Used for Agreement Order Lines with Price
S Internally Owned Shipment Consigned Inventory Agreement

Internally Owned Vendor Managed Inventory

No
B Internally Owned Billing Consigned Inventory Agreement

Internally Owned Vendor Managed Inventory

Yes
V Customer Owned Shipment/Billing Customer Owned VMI Agreement Yes

2.8.2 Setting Up Outbound Inventory Order Line Types

You must create the following three different line types to use the JD Edwards EnterpriseOne Outbound Inventory Management system:

  • S: Internally owned shipment

  • B: Internally owned billing

  • V: Customer owned shipment/billing

Access the Line Type Constants Revisions form.

Form Name Form ID Navigation
Line Type Constants Revisions W40205B Sales Order Management Setup (G4241), Order Line Types.

Click Add on the Work With Line Types form.


2.8.2.1 Internally Owned Shipment Line Type

To create internally owned shipment line type:

Line Type

Enter a value to use as internally owned shipment line type.

Outbound Inv. Interface

Click the visual assist button and select option S - Internally Owned Shipment.

2.8.2.2 Internally Owned Billing Line Type

To create internally owned billing line type:

Line Type

Enter a value to use as internally owned billing line type.

Outbound Inv. Interface

Click the visual assist button and select option B - Internally Owned Billing.

2.8.2.3 Customer Owned Shipment/Billing Line Type

To create customer owned shipment/billing line type:

Line Type

Enter a value to use as customer owned shipment/billing line type.

Outbound Inv. Interface

Click the visual assist button and select option V - Cust. Owned Shipment/Billing.

2.9 Setting Up Order Activity Rules

This section provides an overview of order activity rules, lists prerequisites, and discusses how to set up order activity rules for outbound inventory management.

2.9.1 Understanding Order Activity Rules

To advance an outbound inventory order through the order process, you must create order activity rules. The system uses order activity rules to determine the sequence of steps for processing outbound inventory order information.

The system processes an outbound inventory order line based on the order activity rules that you set up for the order type and line type combination. The following table illustrates examples of order activity rules you could set up for outbound inventory orders:

Internally Owned Shipment Orders Internally Owned Billing Orders Customer Owned VMI Orders
  1. Enter internally owned shipment order
  2. Print Pick Slip

  3. Confirm shipment

  4. Print Invoice (optional)

  5. Acknowledge order

  6. Update customer sales

  1. Enter internally owned billing order
  2. Confirm shipment (optional)

  3. Print Invoice

  4. Update customer sales

  1. Enter customer owned VMI order
  2. Print Pick Slip

  3. Confirm shipment

  4. Print Invoice

  5. Acknowledge order

  6. Update customer sales


For example, you could set up the order activity rules for internally owned shipment line types in internally owned shipment orders as:

  1. Enter internally owned shipment order

  2. Print Pick Slip

  3. Confirm Shipment

  4. Print Invoices

  5. Update Sales

You must assign a status code for every step in the outbound inventory order process. A status code is a number that the system uses to identify the current status of an order line. You must also identify next status codes that determine the next step to which the system advances the order. You must arrange status codes in ascending numeric order for the system to establish the sequence of steps.

Using JD Edwards EnterpriseOne Outbound Inventory Management order activity rules, you can:

  • Locate the status of an outbound inventory order.

  • Select orders for batch processing.

  • Prepare orders based on the order statuses.

2.9.2 Prerequisites

Before you complete the tasks in this section, verify that you have:

2.9.3 Setting Up Order Activity Rules

Access the Order Activity Rules - Revisions form.

Form Name Form ID Navigation
Order Activities Rules - Revisions W40204A Sales Order Management Setup (G4241), Order Activity Rules.

Click Add on the Work With Order Activity Rules form.


Order Type

Enter a code from UDC 00/DT that identifies the type of document. This code also indicates the origin of the transaction.

Document type codes are reserved for vouchers, invoices, receipts, and time sheets, which create automatic offset entries during the post program. (These entries are not self-balancing when you originally enter them.)

Line Type

Enter a code that controls how the system processes lines on a transaction. It controls the systems with which the transaction interfaces, such as General Ledger, Job Cost, Accounts Payable, Accounts Receivable, and Inventory Management. It also specifies the conditions under which a line prints on reports, and it is included in calculations. Codes include the following:

For outbound inventory, select the line types you created for the different outbound inventory transactions. See Setting Up Outbound Inventory Order line Types

Next Status

Enter a user defined code (40/AT) indicating the next step in the order flow of the line type.

Ledger Y/N (Ledger yes/no)

Enter a value to update a record in the S.O Ledger Detail File table (F42199). Values are:

Y: Write a record for selected fields to the history table.

N: Do not write a record to the history table.

2.10 Setting Up Outbound Inventory Item Groups (Release 9.2 Update)

This section provides an overview of outbound inventory item groups, lists prerequisites, and discusses how to create outbound inventory item groups.

2.10.1 Understanding Outbound Inventory Item Groups

You create outbound inventory item groups to group items with similar characteristics together. You can then create consigned or vendor managed inventory agreements for each outbound inventory item group. You can define quantities, prices and replenishment methods for each outbound inventory item group when setting up agreements.

The system updates the following information when you create an outbound inventory item group:

Table Information
Outbound Inventory Agreement Item Groups (F42I013) The system adds a different record for each item that you add to the outbound inventory item group. The system adds outbound inventory item group, branch/plant, short item number and second item number for each item added to the outbound inventory item group.

2.10.2 Creating Outbound Inventory Item Groups

Access the Outbound Inventory Item Groups form:

Form Navigation
Outbound Inventory Item Groups (W42I013A) Outbound Inventory Setup menu (G42I41), Outbound Inventory Item group.

On the Work With Outbound Inventory Item Groups form, click Add.


On the Outbound Inventory Item Groups form, complete the following fields:

Outbound Item Group

Enter the name for the outbound inventory item group. You use the Outbound Inventory Item Group to group items which may belong to one outbound inventory agreement.

Item Number

Enter the item numbers for the item you want to add to the item group.

After adding all required items to the item group, click OK.

2.11 Setting Up Location Cross Reference for Electronic Data Interchange (EDI)

This section provides an overview of setting up location cross references for electronic data interchange (EDI) and discusses how to use the Work With Location Cross Reference program.

2.11.1 Understanding Setting Up Location Cross Reference for EDI

You can use outbound location cross references to map customer locations in data received through EDI, to locations in the JD Edwards EnterpriseOne Outbound Inventory Management system. You use the Work With Location Cross Reference program (P4109) to set up outbound inventory location cross references.

When you create a location cross reference, the system creates a record in the Location Cross Reference table (F4109) with the following information:

Field Description
Cross Reference Type A code that identifies the type of Location- cross reference from the UDC 41/LR.

Location Cross Reference Type O identifies that the record in Location cross reference table (F4109) corresponds to outbound customer location.

Supplier Number The address number of the customer or supplier.
Location The storage location from where the inventory is be moved.
Location Cross Reference A code that allows you to replace a customer location from Location Cross Reference table (F42I04).

2.11.2 Setting Up Location Cross References for EDI

Access the Location Cross Reference Revisions form.

Form Name Form ID Navigation
Location Cross Reference Revisions W4109B Outbound Inventory Setup (G42I41), Location Cross Reference.

Click Add on the Work With Location Cross Reference form.


On the Location Cross Reference Revisions form, complete the following fields:

Supplier

Enter the address book number of the supplier.

Cross Reference Type

Enter a code from UDC 41/LR that identifies the type of location- cross reference. Enter O for outbound location cross reference.

Branch Plant

Enter the branch/plant from where the goods are shipped.

Location

Enter the location from where inventory is moved.

Location Cross Reference

Enter a code that enables you to replace a customer location from the Location Cross Reference table (F42I04).