PeopleSoft SCM Inventory Integrations

PeopleSoft Inventory integrates with many other applications in PeopleSoft Financials and PeopleSoft SCM (FSCM), as illustrated in the following diagram. An explanation of each integration point is given below the diagram:

PeopleSoft Inventory integrates with these applications:

• PeopleSoft Order Management

  • A sales order in PeopleSoft Order Management that includes stocked items is passed to PeopleSoft Inventory to fulfill the order.

  • PeopleSoft Order Management retrieves data from PeopleSoft Inventory about quantities on hand, shipment history, and available to promise (ATP) quantities.

    Inventory data can appear on several PeopleSoft Order Management pages.

  • During order entry, PeopleSoft Order Management can pass data to PeopleSoft Inventory, including choosing transportation routes, allocating lots, or using reservations processing to reserving or promise stock to fulfill the order.

  • Using the Alternate Sources of Supply page in PeopleSoft Order Management, a sales order can be pegged to an interunit transfer (material stock request) going to the destination inventory business unit where the sales order will be fulfilled.

  • PeopleSoft Inventory checks with PeopleSoft Order Management during picking and shipping to verify that the sales order line has not been placed on hold.

  • If a sales order is changed or canceled in PeopleSoft Order Management, the system automatically changes or cancels it in PeopleSoft Inventory according to the setup in the Demand Change Configuration feature.

  • When PeopleSoft Inventory ships the items, the data is updated on the sales order.

    PeopleSoft Inventory also sends sales order information to PeopleSoft Billing for invoice creation.

• PeopleSoft Supply Planning (which includes PeopleSoft Supply Planning Multisite Material Planner and PeopleSoft Supply Planning Advanced Multisite Planner)

  • PeopleSoft Supply Planning determines the material requirements and the production schedule to make items in PeopleSoft Manufacturing.

    PeopleSoft Supply Planning retrieves information from PeopleSoft Inventory about both raw materials and finished goods. PeopleSoft Supply Planning also pulls data from PeopleSoft Purchasing, PeopleSoft Order Management˙, and PeopleSoft Manufacturing.

  • PeopleSoft Supply Planning then creates a schedule and sends planning messages to PeopleSoft Inventory to create material stock requests that transfer stock from one PeopleSoft Inventory business unit to another, to reschedule material stock requests, or to cancel material stock requests.

    PeopleSoft Supply Planning also sends planning messages to PeopleSoft Manufacturing (for the production of make items), to PeopleSoft Purchasing (for the creation of purchase orders for needed materials), and to PeopleSoft Order Management (for the rescheduling of sales orders to match the production schedule).

• PeopleSoft Purchasing

  • You can send a requisition created in PeopleSoft Purchasing to PeopleSoft Inventory as a material stock request if stock is available.

    If stock is unavailable, you can add the requisition to a purchase order and dispatch it to a supplier using PeopleSoft Purchasing.

  • When items on a purchase order are received from the supplier in PeopleSoft Purchasing, the items can be put away in a PeopleSoft Inventory business unit using the putaway processes.

  • Using PeopleSoft Purchasing online pages, you can call the directed putaway feature in PeopleSoft Inventory.

  • PeopleSoft Inventory passes replenishment requests to PeopleSoft Purchasing, including ad-hoc replenishment requests from the Reserve Materials process, stockless or nonstock replenishment requests from the Create Par Replenishment Requests process, or reorder point replenishment requests from the Replenishment Options process.

  • To return items that have been stocked in inventory, the data on the Return to Vendor (RTV) pages is entered in PeopleSoft Purchasing and passed to PeopleSoft Inventory where the items are shipped or adjusted.

  • Using the Pegging Workbench, a material stock request can be pegged to a requisition or purchase order.

• PeopleSoft Mobile Inventory Management

  This application provides tools to integrate mobile devices to the PeopleSoft Supply Chain Management system. Using Mobile Inventory Management, you can use mobile devices to:

  • Check the stock quantities of items within a PeopleSoft Inventory business unit. This includes the stock quantities within material storage locations of a business unit

  • Conduct periodic inventory counts to determine replenishment needs for each par location.

  • Perform guided counts, counts by location, counts by item, and manual counts based on events created in PeopleSoft Inventory.

  • Perform express issues for internal orders and reserve, pick, and ship the stock.

• PeopleSoft eProcurement

  • You can send a PeopleSoft eProcurement requisition to PeopleSoft Inventory as a material stock request if stock is available.

    If stock is not available, you can add the requisition to a purchase order and dispatch it to a supplier using PeopleSoft Purchasing.

  • Using PeopleSoft eProcurement online pages, you can call the directed putaway feature in PeopleSoft Inventory.

• PeopleSoft Manufacturing

  • To create a bill of materials (BOM) or an item routing, PeopleSoft Manufacturing retrieves approved inventory items, item groups, and item families.

  • PeopleSoft Manufacturing assigns work in progress (WIP) locations to work centers using the material storage locations defined in PeopleSoft Inventory.

  • PeopleSoft Manufacturing reserves stock (components) for picking in the PeopleSoft Inventory business unit in preparation for releasing the material to the shop floor.

  • PeopleSoft Manufacturing moves raw materials and subassemblies from inventory storage locations to WIP locations or directly to production.

  • After the make item is produced, completions are recorded and the item is put away in PeopleSoft Inventory.

  • Using PeopleSoft Manufacturing online pages, you can call the directed putaway feature in PeopleSoft Inventory.

  • Using the Pegging Workbench, a material stock request (demand) can be pegged to a production ID (supply) when the Manufacturing business unit is the same as the Ship From inventory business unit.

    You can only peg to the primary output of a production ID.

• PeopleSoft Cost Management

  • PeopleSoft Cost Management calculates the cost and creates the accounting entries to record putaways, shipments, adjustments, and other material movements in PeopleSoft Inventory.

    PeopleSoft Cost Management receives costing information from PeopleSoft Purchasing, PeopleSoft Payables, and PeopleSoft Manufacturing to record and update the cost of stock in each PeopleSoft Inventory business unit.

  • The accounting entries are then passed to the general ledger to record the accounting impact of PeopleSoft Inventory transactions.

  • The Landed Cost Extraction process in PeopleSoft Payables can pass cost adjustments to PeopleSoft Cost Management for the stock putaway in PeopleSoft Inventory.

• PeopleSoft General Ledger

  Accounting entries recording the activity in PeopleSoft Inventory are retrieved from PeopleSoft Cost Management and are used as input to create journal entries that are posted in the PeopleSoft General Ledger business unit tied to the PeopleSoft Inventory business unit.

• PeopleSoft Commitment Control

  • A requisition or purchase order is entered in PeopleSoft Purchasing using commitment control and a pre-encumbrance or encumbrance is established.

    If the purchase order is sourced from PeopleSoft Inventory, then the encumbrance is relieved and replaced with a expenditure against the budget when the Accounting Line Creation process in PeopleSoft Cost Management is run with the Budget Check Accounting Lines check box selected to run the Commitment Control Budget Processor.

  • An expenditure is recorded in the budget when a material stock request is created and stock is issued from PeopleSoft Inventory using a ChartField combination set up as a budgetary account for commitment control.

    The deduction to the budget occurs when you run the Accounting Line Creation process in PeopleSoft Cost Management with the Budget Check Accounting Lines check box selected. No pre-encumbrance or encumbrance is created or relieved.

• PeopleSoft Payables

  • When a consigned item is consumed using any one of various transactions in PeopleSoft Inventory or PeopleSoft Manufacturing, ownership of the item is transferred from the supplier to the business.

    The Transaction Costing and Accounting Line Creation processes in PeopleSoft Cost Management make consignment information available to PeopleSoft Payables for voucher creation.

  • For intercompany transfers, the destination PeopleSoft Inventory business units are defined as customers in the PeopleSoft customer tables, enabling the system to create an invoice in PeopleSoft Billing for each intercompany transfer and to load the invoice as a voucher into the PeopleSoft Payables business unit linked to the destination PeopleSoft Inventory business unit.

  • The Landed Cost Extraction process in PeopleSoft Payables can pass cost adjustments to PeopleSoft Cost Management for the stock putaway in PeopleSoft Inventory.

• PeopleSoft Billing

  • When shipping stock for a interunit transfer or a sales order from PeopleSoft Order Management, the Deplete On Hand Qty process (also referred to as the Depletion process) marks the orders as available for processing in PeopleSoft Billing.

    The net price, from PeopleSoft Order Management, can be passed from PeopleSoft Inventory to PeopleSoft Billing for invoice creation, or detailed pricing can be passed using miscellaneous charge codes, including discounts, surcharges, freight, taxes, and value-added tax (VAT).

  • Sales and excise taxes on a shipping excise invoice for India are passed to PeopleSoft Billing.

  • For intercompany transfers (stock transfers between two PeopleSoft Inventory business units reporting to different general ledger units), the system creates an invoice in PeopleSoft Billing for each intercompany transfer and loads the invoice as a voucher into the PeopleSoft Payables business unit linked to the destination PeopleSoft Inventory business unit.

  • For returned materials, PeopleSoft Inventory passes data to PeopleSoft Billing to create credit memos for Returned Material Authorizations (RMAs).

  • The Direct Invoicing option can be used to automatically create PeopleSoft Billing invoices to accompany your shipments.

• PeopleSoft Project Costing

  • When creating a material stock request, you can enter information to be used by PeopleSoft Project Costing.

  • PeopleSoft Project Costing retrieves project-related inventory shipments, returns, and putaways to create resource transactions.

• PeopleSoft Quality

  • PeopleSoft Quality accesses approved inventory items to define quality control steps.

  • If a customer returns stock and a RMA form is produced, information can be entered about quality that is passed to PeopleSoft Quality for analysis.

• PeopleSoft Engineering

  PeopleSoft Engineering retrieves item information from PeopleSoft Inventory for the engineering workbench environment to help you manage product introduction and change processes throughout your enterprise.

• PeopleSoft Maintenance Management

  PeopleSoft Maintenance Management uses work orders to maintain and repair the capital assets of your organization, such as heavy machinery and buildings. The maintenance and repair of an asset may require parts from Inventory. PeopleSoft Inventory is integrated with PeopleSoft Maintenance Management to fulfill parts for work orders as follows:

  • PeopleSoft Maintenance Management retrieves item information and stock availability from PeopleSoft Inventory.

    Using information from PeopleSoft Inventory, users within Maintenance Management can launch an inquiry page to display stock availability at a specific date and also print the Material Readiness report to analyze material availability. Using these features, you can determine if the needed quantity is available on the work order line's scheduled date. If the quantity is not available on the scheduled date, you can determine the reasons for the shortage and how much quantity is available on future dates.

  • From the work order in PeopleSoft Maintenance Management, users can commit work orders to PeopleSoft Inventory's demand fulfillment (IN_DEMAND) table allowing the demand to be displayed in the Product/Item Availability page and used by the Create Replenishment Requests process.

  • From the work order in PeopleSoft Maintenance Management, users can soft-reserve stock in PeopleSoft Inventory to fulfill a work order.

  • The necessary items needed to complete a work order can be committed, soft-reserved, or hard-allocated by creating a pick list in PeopleSoft Inventory.

    The Reserve Materials process in PeopleSoft Inventory can also be used to commit or soft-reserve stock to the work order line. In addition, the Shortage Workbench can be used to reserve or unreserve inventory stock to a work order line.

  • Picking results are entering in PeopleSoft Inventory, with or without a pick list and the work orders are fulfilled.

  • Once work is completed, any unused material is returned to the PeopleSoft Inventory business unit.

  • The necessary items can be maintained at optimal levels in the PeopleSoft Inventory business unit by using the replenishment feature.

  • Using the Pegging Workbench, a work order can be pegged to incoming supply from an interunit transfer (PeopleSoft Inventory), a requisition, or a purchase order (PeopleSoft Purchasing).

    You cannot peg a work order to a production order in PeopleSoft Manufacturing. An interunit transfer is a material stock request to transfer stock between inventory business units. The interunit transfer's destination business unit must match the work order's inventory business unit used to fulfill parts. When the parts are received into the PeopleSoft Inventory business unit, the stock quantity can be soft-reserved or hard-allocated to the work order line.

Detailed integration considerations are covered in the implementation sections of Inventory.