Project-Specific Inventory for Picks
You can use project-driven supply chain to enforce picking from project-specific or common inventory.
You can also set hierarchical business rules, such as pick from a project-specific task, and then pick from common inventory. This prevents commingling of inventory across projects and tasks. This also improves picking efficiency and reduces cost by automating the generation of accurate picking slips.
You must first enable inventory tracking by project for your applicable organizations and set up your default expenditure types.
Use the pick project-specific inventory functionality to:
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Use common inventory to fulfill demand
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Pick project-specific inventory for sales orders
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Pick project-specific inventory for work orders
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Pick project-specific inventory by movement request for pick release
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Create manual pick for requisition movement requests
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Manage project-specific inventory costs
Use Common Inventory to Fulfill Demand
You can pick from common inventory to fulfill demand if you set up the item definition for usage of common inventory. This lets you control whether to consume common material or project material based on the inventory attributes of an item.
Usage of common inventory for project demand is dependent on the values of the attributes in this table.
|
Hard Pegging Level |
Allow Use of Common Supplies |
Expected Behavior |
|---|---|---|
|
None |
Null |
Allows usage of common inventory |
|
No |
Disallows usage of common inventory |
|
Yes |
Allows usage of common inventory |
The Allow Use of Common Supplies option is null when you set the Hard Pegging Level field to None. This indicates that common inventory can be issued or reserved for a project demand for this item.
You can set the Allow Use of Common Supplies option to Yes or No when the Hard Pegging Level has a value of Project and Task, Project, or Project Group. In this case, you can use common inventory for a project demand only when the Allow Use of Common Supplies option is set to Yes.
Pick Project-Specific Inventory for Sales Orders
You can pick release sales order by entering the costing project number and task number on the Create Pick Wave page. The pick release honors the reservation and allocates the material based on the reservation. The inventory project and task populate on the pick if you chose to allocate the project material to the demand. These fields are blank if you chose to allocate common material.
You can search picks by the inventory project, inventory task, project number, and task number. When searching by the inventory project and inventory task, your search results show the picks based on the material allocated to the demand. If you search based on the project number and task number, your search results show the picks based on the project and task on the demand.
Pick Project-Specific Inventory for Work Orders
The pick release of the project work order creates movement requests that reference the project and task from the work order. The application derives the expenditure type, expenditure date, and expenditure organization when the work in process material issue or work in process material pick transactions are interfaced to costing.
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Expenditure type: derived based on the default expenditure type attribute in inventory management. If it's not defined in inventory, then the expenditure type is derived from the expenditure type associated to material from the manage default expenditure types setup.
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Expenditure organization: is the same as the organization for the work order.
The picks for the work order are grouped by project costing project and task using the pick slip grouping rules. You can search the picks created for the work order using the project number and task number on the Confirm Pick Slip page.
The pick populates with the inventory project and inventory task when the project material is allocated for all the work order components. The inventory project and inventory task show Multiple when material from multiple projects is allocated to work order components. These fields are blank when common material is allocated. You can override the pick.
Pick Project-Specific Inventory by Movement Request for Pick Release
You can allocate project material for requisition movement requests. The pick release of the requisition movement request allocates the project material prior to allocation of common inventory. The project number and the task number parameters on the movement request pick slip report releases all the eligible movement request lines. The pick slip grouping rules enable grouping of the picks by the project costing project and task.
Create Manual Pick for Requisition Movement Requests
You can manually allocate project or common material at will for requisition movement requests with reference to a project costing project and project costing task. There are three types of requisition movement requests that can have a project reference.
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Movement requests with reference to the project costing project and task. Project driven supply chain enables you to allocate project material ahead of common inventory for requisition movement requests. You can use project material or common inventory to manually create a pick for such movement requests.
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Movement requests that have an inventory project and inventory task referenced on the movement request. You can create a manual pick for such movement requests using the project material, common inventory, or inventory from another project.
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Movement requests that let you transfer project material from one subinventory to another using the movement request transfer transaction type. You can create a manual pick for such a requisition using the project material, common inventory, or inventory from another project.
Manage Project-Specific Inventory Costs
You can import miscellaneous inventory transactions using the Import Costs process. This may include miscellaneous inventory transactions such as miscellaneous receipt or issue of project inventory, issue to project of project-specific inventory, receipt from project of project-specific inventory, project reclassification using project transfer transactions, and interorganization transfer of project-specific inventory.
Depending on the source transaction and the destination type, one or more of the following document entries for the miscellaneous inventory document is created in Project Portfolio Management:
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Item cost
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Overhead
Use the Manage Project Costs task in Costs work area in Project Portfolio Management to search and view expenditure item and project costing details associated to the miscellaneous inventory transactions.