Setting Up Business Unit and Item Options

You can set up a variety of options for each functional area of a business unit (stock fulfillment, replenishment, putaway, and so on). The decisions that you make regarding many of these options are not easily reversed after you begin processing inventory transactions for the business unit. Keep this in mind when making the following decisions:

• Define the business unit's default material storage location configuration on the Inventory Options page.

  Material storage locations comprise a storage area and up to four levels of storage-level detail. Once the storage level configuration is defined for the storage area, only its associated level of detail appears on pages. After inventory transactions have been processed, the storage level configuration cannot be modified without a data conversion effort.

• Determine whether items that have a status of Restricted or Hold should be counted as part of the available quantity for the business unit.

  If they should, select the Incl Non Open in Avail Qty (include non-open in available quantity) option on the Inventory Definition - Business Unit Options page when you establish the Inventory business unit.

• Determine whether you want to make soft reservations in the business unit.

  Soft reservations are not required to fulfill orders in PeopleSoft Inventory, but using them enables you to know whether you have enough quantity on hand to fulfill a specific order. Set up reservations (including the number of reservation lead days) on the Setup Fulfillment-Reservation page. You can override the business unit reservation settings for individual items using the Setup Item Fulfillment page. Do not change the number of reservation lead days once orders have been processed.

• Decide whether you want to replenish using stock-level reorder points or ad hoc requisitions for backorders.

  Specify ad hoc requisitions for backorders at the business unit level on the Setup Fulfillment page; you can override this setting for individual items using the Setup Item Fulfillment page. Define reorder point replenishment on the Setup Replenishment page.

• Consider the standard unit of measure for an item before defining it on the Define Item - General: Common page.

  To avoid quantity conversion rounding issues, it is suggested that the smallest unit of measure be defined as the standard unit of measure for the item. Once an item has been processed by an inventory transaction, you cannot change its standard unit of measure.

• Decide whether a unit of measure results in whole number quantity values or decimal number quantity values.

  For example, if you want quantities with a unit of measure of EACH to be entered only as whole numbers, define this on the Units of Measure page.

• Decide which material storage locations store non-owned stock.

  PeopleSoft Inventory permits only non-owned and consigned items to be stored in locations defined as non-owned. Define a location as non-owned by selecting the Non-Owned option on the Material Storage Locations page.

  Important! If you are integrating with PeopleSoft CRM FieldService, configure the business units and material storage locations to reflect the underlying assumptions of the integration design.