Fulfilling Orders with Substitute Items

If you want to make item substitutions either at the time of order entry or as the order is physically picked, you must first create item substitution definitions. An item substitution definition specifies what items can replace the originally requested item.

To create an item substitution definition:

1. Define substitute items at the SetID level.

   When you define an item at the SetID level, you can also define appropriate substitutions for the item on the Define Item - Substitutes page. For each substitute item, define:

   • The substitute item's priority relative to other substitute options.

   • A start and end date specifying when the substitution is valid.

   • A conversion rate in the standard UOM specifying how many substitute items are required to replace the originally requested item.

   • The transaction areas for which the substitute item is valid: shipments, manufacturing, or procurement.

     Implementation tip: Use the Substitute Item page to create the broadest substitution definition that is possible, and then restrict the definition at the business unit. The substitution definition that is established for the SetID can be modified to meet the requirements of the business unit on the Define Business Unit Item - Substitutes page. However, you cannot add substitute items to the substitution definition at the business unit level unless they were previously defined for the SetID. At the business unit level, you can only remove substitute items from the substitution definition or modify their attributes. Any items that are included in the substitution definition at the SetID level that are not defined for the business unit are automatically excluded from the substitution definition at the business unit level.

     You can copy the item substitution definition at the SetID level to the business unit level. For established business units, you can copy the item substitution definition from the SetID to existing business units by using the Copy to Business Unit link on the Substitute Item page. Only substitution definitions for items that are defined in the business unit are copied. You can use the Copy Substitutes option on the Item Copy page to copy items within a SetID.

2. (Optional) Modify the item substitution definition for the business unit.

   Use the Define Business Unit Item - Substitutes page to modify the substitution definition that is created for the SetID to meet the needs of a given business unit. For example, if a business units no longer stocks an item that is defined as a valid substitute, then you can delete the item from the substitution definition at the business unit level. If an item can be used as a substitute for shipments in one business unit but not in another, the Use for Shipments option can be changed accordingly. You can copy the substitution definition for an item at the SetID level to the business unit by using the Copy to Business Unit link on the Define Item - Substitutes page or the Copy SetID Substitutes link on the Define Business Unit Item - Substitutes page.

When viewing item availability, you can quickly check availability for any substitutes that are defined for an item. In PeopleSoft Order Management, you can view possible item substitutions for an order line to help you decide whether to permit item substitutions during fulfillment processing. In PeopleSoft Inventory, you can view and select valid item substitutions when creating material stock requests and express issues.

The ability to view substitution options is provided on the Availability Inquiry Selection page, the Express Issue page, and all pages that are in the Material Stock Request component. To view an item's substitution definition from these pages, enter an item ID and click the Transfer button that is next to the Item ID field. On the Transfer page, click the Substitute Items link to access the Substitute Items page. Depending on the point of access, you view the item's substitution definition at either the SetID or business unit level.

Use the Substitute Items (SetID level) page (INV_SUB_ITEM_SEC) to view an item's substitution definition at the SetID level and, if appropriate, select an alternate item.

Navigation:

Enter an item ID on the Availability Inquiry Selection page Inventory > Manage Inventory > Review Inventory Balance Info > Item or Product Availability and click the Item Search/Item Links button next to the Item ID field. Then click the Substitute Items link.

This example illustrates the fields and controls on the Substitute Items page (SetID). You can find definitions for the fields and controls later on this page.

The Substitute Items page shares the same object name as the Copy Set ID Substitute Items page.

Click the Return button to close the page without selecting a substitution.

Select the check box on the row of a substitute item if you want to populate the Item ID field on the previous page with the substitute item's item ID.

Use the Substitute Items (business unit level) page (INV_BU_SUB_ITM_SEC) to view an item's substitution definition at the business unit level, and if appropriate, select an alternate item.

Navigation:

Enter an item ID on the pages in the Material Stock Request component or the Express Issue page, and click the Transfer button next to the Item ID field. On the Transfer page, click the Substitute Items link.

This example illustrates the fields and controls on the Substitute Items page (business unit). You can find definitions for the fields and controls later on this page.

Click the Return button to close the page without selecting a substitution.

Select the check box on the row of a substitute item if you want to populate the Item ID field on the previous page with the substitute item's item ID.

For each substitution option, the system displays this information:

For eligible order lines, item substitutions can be made during order fulfillment and recorded on the Picking Feedback page. An order line is eligible for item substitution only if these conditions are met:

• The Allow Item Substitutes option for the order line is selected.

  You can make substitutions only at the time of picking for order lines that permit substitution. To enable substitutions on a sales order, select the Allow Item Substitutes option on the Sold-To Data page, which is used as a default in sales orders in PeopleSoft Order Management. You can change this setting until a substitution is recorded for the order line on the Picking Feedback page or until the order line is shipped. After the order line is added to a pick batch ID and before the order line is shipped, you must duplicate any changes that you made to the Allow Item Substitutes setting on the sales order pages on the Maintain Stock Request page in PeopleSoft Inventory. Changes that are made to order line attributes in PeopleSoft Order Management after the order line appears on a pick plan are not replicated automatically.

  For stock requests that are created by using the Material Stock Request component, the Express Issue pages, or the PO Sourcing process, the Allow Item Substitutes setting appears by default from the Fulfillment Item Setup page, if defined, or the Fulfillment Setup page. The Allow Item Substitutes setting on stock requests that is created by the Par Location Replenishment process (INPGCDMD) and through planning messages has a default of disabled—substitutions are not allowed. You can override the Allow Item Substitutes setting for all non-sales order stock requests on the Create/Update Stock Request page until the order line is shipped.

• The order line does not represent a return-to-vendor transaction, a backorder, a configured item, or a component of a kit.

  Even for order lines that allow substitutions, substitutions are not permitted during picking for order lines representing configured items, items that are components of kits, and return-to-vendor transactions. In addition, you cannot make substitutions for any order lines for which backorders have been created by the Reserve Materials process (IPLDMND) or as a result of short shipments.

• A valid substitution definition is in effect at the business unit for the requested item on the order line.

  An item substitution must be defined at the business unit level for the item on the order line. The picking plan that includes the order line must be generated between the start and end date that is defined for the substitute item that you select to fulfill the order line. Additionally, the substitute item must be valid for shipments; the Use for Shipments option must be selected on the item substitution definition.

• The full quantity on the order line is substituted.

  On the Picking Feedback page, you must report picking enough quantity of the substitute item to completely fulfill the order line. You cannot partially fulfill an order line by using the requested item and complete the order by using a substitute item. The picked quantity must equal the requested quantity.

• The order line that is lot allocated is de-allocated prior to substitution.

  Before you can record a substitution on the Picking Feedback page for an order line that is lot-allocated, you must first deallocate the lot. You can deallocate the lot from the sales order pages in PeopleSoft Order Management or from the Lot Allocation page in PeopleSoft Inventory.

• The order line that is associated with a shipping container or shipping serial ID is dissociated prior to substitution.

  Before you can record a substitution on the Picking Feedback page for an order line that is assigned to a shipping container or shipping serial ID, you must dissociate the order line from the shipping container or shipping serial ID. In bar code environments, you can do this on the Ship Containers/Serials page using transaction 0624 or 0625 for shipping containers and transaction 0632 or 0633 for shipping serial IDs. You can also dissociate an order line from a shipping container by using the Packing Session component. Likewise, you can dissociate an order line from a shipping serial ID by deleting all shipping serial IDs for the order line on the Shipping/Issues - Ship Serial page.

For order lines that allow substitutions, you can enable the picking staff to make substitution decisions when an order is physically picked from inventory storage locations. You can generate pick plans that include substitution options for each order line that permits substitutions whenever the original item is in short supply. Even if the original item is available at the time of picking, the person who is picking the order can choose to pick any of the item's predefined substitute items and record the substitution on the Picking Feedback page. With this method of substitution, you can complete fulfillment of orders that would otherwise be delayed or backordered.

If you choose to print substitutes, the Picking Plan process (INS6000) validates that each order line allows substitutions. If the Allow Item Substitute option is selected for the order line and not enough of the originally requested item is available to fulfill the order, the picking plan lists, in priority order, all of the valid substitute items that can be used to fulfill the order line. For each order line, substitute items are printed on the pick plan only if these conditions are met:

• The order line permits substitutions—that is, the Allow Item Substitutes option is selected.

• A substitution definition for the requested item is in effect for the item at the business unit level—that is, the date that the Picking Plan process is run is between the start and end dates that are specified on the item substitution definition.

• The order line does not represent a return-to-vendor transaction or a backorder.

• The item that is on the order line is not a configured item or a component of a kit.

• The item substitution definition specifies that the substitution is valid for shipments—that is, the Use for Shipments option is selected for the item substitution definition.

• Insufficient quantity of the originally requested item is available to fulfill the order line.

• Sufficient quantity of the substitute item is available to completely fulfill the order line.

• The order line is not lot allocated.

• The order line is not associated with a shipping container or shipping serial ID.

Printing substitutions on the picking plan are not required for making substitutions during order fulfillment. The Picking Plan process does not actually make any substitutions; it lists valid substitution options for each order line. Even if the original item is unavailable, the Picking Plan process assigns the order line to the pick batch ID without allocating the stock in the storage location—a method that is functionally similar to creating a pull picking plan. This design enables you to select a substitute item on the Picking Feedback page without having to add an order line manually to the pick batch ID. Substitutions are made on the Picking Feedback page when you record the substitute item that you chose to replace the originally requested item.

See Understanding Component Issue Methods.

To use an item substitution during picking:

1. Select the Allow Item Substitutes option for the order line.

   For sales orders, select the Allow Item Substitutes option on the Sales Order pages in PeopleSoft Order Management. For stock requests that are created by using the Create/Update Stock Request pages, the Express Issue page, or the PO Sourcing process, the Allow Item Substitutes setting will be supplied by default from the Fulfillment Item Setup Page, if defined, or the Setup Fulfillment - Fulfillment Setup page. The Allow Item Substitutes setting on stock requests that is created by the Par Location Replenishment process (INPGCDMD) and through planning messages has a default setting of disabled—substitutions are not allowed. You can override the Allow Item Substitutes setting for all stock requests that are not sales orders on the Create/Update Stock Request page until the order line is shipped.

2. (Optional) Print substitution options on the picking plan.

   To list item substitutes for order lines on the picking plan, select the Print Substitutes option on the Additional Options page, accessed from the Picking Plan report page. When you select this option, the picking plan lists the valid substitute items for each order line, plus the available quantity and storage location information (including lot and serial ID).

   Printing substitute items on the pick plan is not a requirement for making an item substitution during fulfillment. For order lines that allow substitutions, you can record picking a valid substitute item for the order line on the Picking Feedback page without printing substitutes on the picking plan.

3. Pick a valid substitute item, if needed.

   If a substitution is required for an item on the pick plan, you can physically pick one of the valid substitutes that are defined for the item. You must pick enough quantity of the substitute item to completely fulfill the requested quantity on the order line.

4. Record the substitution on the Picking Feedback page.

   If you make an item substitution during picking, you must record the substitution on the Picking Feedback page. From the Picking Feedback page, you can access the Select Substitute Item page, where you can select the substitute item that you picked in place of the originally requested item. The quantity picked that you record must equal the quantity that is requested on the order line.