1. Kanban Management Implementation Guide
  2. Source Type 3: Supplier Kanbans

Source Type 3: Supplier Kanbans

You use a source type 3 kanban when you must buy materials from a supplier and have them moved directly to the location at which they will be consumed. The kanban consumption mode of the Kanban Processing program has a processing option that you can set so that the system creates a purchase order and calls a version of Purchase Orders program (P4310). Depending on how you set the processing options, the kanban check-out transaction can trigger one of these software actions:

  • A search for an existing open purchase order that the system can use to refill this kanban

  • A search for an open blanket purchase order from which a purchase order release can refill the kanban

  • The creation a new purchase order for the kanban requirement

When the kanban is checked in, the kanban status changes to 1 to indicate that the supplier has filled the order and the purchase order receipt can be processed. An OV transaction (purchase order receipt) is recorded in the F4111 table when a purchase order is received. The OV document type indicates that an open purchase order voucher has not been matched and closed for accounting. The system creates a PV transaction when the open voucher has been matched.

Note: If you want the system to automatically initiate the purchase order receipts process when you perform a check-in or complete transaction for a source type 3 kanban, you must activate the Receipts option in the related Kanban Master record.

When you check out a supplier kanban, the system uses the unit of measure that you have defined in the kanban master for the purchase order detail line, regardless of the way in which the Unit of Measure processing option is set in the Purchase Orders program (P4310). The kanban unit of measure is the unit of measure that the system uses for the purchasing transaction. When the inventory transfer occurs, it also appears in the kanban unit of measure.

When you enter a lot number on the detail line of a kanban purchase order prior to the check-in transaction, the system does not carry the lot number through to:

  • The detail transaction line of the Kanban ID, when you check it in to process the purchase order receipt

  • The F4111 table, when the OV record is created

  • The inventory transfer that moves the materials from the supplying location to the consuming location

These actions occur regardless of whether the kanban is one-phase or two-phase. The results are the same in both situations.

You can also use source type 3 kanbans to release quantity from blanket purchase orders that are open and valid for the kanban check-out requirements. You cannot create blanket purchase orders with a kanban check-out transaction. You must set up specific information in the software before you can release from blanket purchase orders with kanban check-out transactions.