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Inventory Control User Guide

Version 9.0.1
Published November 2008

Lawson Supply Chain


Management
Document Number ICUG-901UWA-02

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Contents

List of Figures 11

Chapter 1 Overview of Inventory Control 13


Inventory Control Process Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
How Inventory Control Integrates with Other Lawson Applications . . . . . . . . . . . . . 15

Chapter 2 Setting Up Prerequisite Applications 19

Concepts in this Chapter............................................. 20


What is a Currency Table? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
What is a Currency Code? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
What is a Chart of Accounts? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
What is a General Ledger Company? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
What is an Accounting Unit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
What is System Control? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
How do Intercompany Relationships relate to Inventory Control? . . . . . . . . . . . . . . 23
What do I need to know about Accounts Payable? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
What is Project Accounting? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Procedures in this Chapter .......................................... 25


Setting up Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Setting up General Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Setting up Accounts Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Setting up Requisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Setting Up Project Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Setting up Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Setting up Warehouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Setting Up Purchase Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Chapter 3 Setting Up Inventory Control 33

Concepts in this Chapter............................................. 34


What is an Item Group? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
What is a Unit of Measure?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
What are Comment Types? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Where will my comments display?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
What is an Inventory Control Company?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Why are Costing Methods used? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
How do I calculate inventory available to sell or allocate? . . . . . . . . . . . . . . . . . . . . . . . 38
What are the Rules for Allocation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
What do Inventory Control period end dates determine? . . . . . . . . . . . . . . . . . . . . . . . . 38

Inventory Control User Guide Contents 3


What are the options for inventory periods? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
What are Bins? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
What is an Inventory Location? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
What are Customer and Vendor Roles used for? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
What are Replenishment Requesters?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
What is a Report Group? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
What is a General Ledger Category? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
What is an Accounting Unit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
What are Inventory Classes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
What are Inventory Codes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
What are UNSPSC Codes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
What are UPC Codes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
What are UPN Codes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
What are SKU Codes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
What are NDC Codes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
What are User Fields? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
What is a Procurement Group? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
What are Keyword Searches? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Procedures in this Chapter .......................................... 49


Defining Item Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Defining an Inventory Control Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Defining Period End Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Defining Bin Usage Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Defining Warehouse Report Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Defining Inventory Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Defining Report Groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Defining General Ledger Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Defining Inventory Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Defining Inventory Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Loading UNSPSC Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Adding UNSPSC Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Defining Keyword Searches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Setting up Bins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Chapter 4 Setting Up Item Master 69

Concepts in this Chapter............................................. 70


What is an Item Master? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
What is a Serial Number-tracked Item? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
What is a Lot-tracked Item? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
How do I define multiple Units of Measure for an item? . . . . . . . . . . . . . . . . . . . . . . . . . . 71
What is Consignment Inventory? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
How do I determine if an item is purchased with tax? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Procedures in this Chapter .......................................... 73


Setting up the Item Master . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Setting Up Consignment Items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

4 Contents Inventory Control User Guide


Chapter 5 Setting Up Item Locations 81

Concepts in this Chapter............................................. 82


What is an Item Location? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
What is an Item Type? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
What is Stock-on-hand? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
What is a Bin-tracked Item? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
What is a Movement Class? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
What is a Reorder Policy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
What is a Reorder Document? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
What is a Reorder Point? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
What is a Reorder Quantity? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
What is Item Forecast? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
How can I use the Replenishment Button? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
What are Associated Items? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Procedures in this Chapter .......................................... 91


Setting up Item Locations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Defining Associated Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Mass Updating Items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Defining Item Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

Chapter 6 Conducting Physical Inventory 105

Concepts in this Chapter........................................... 106


What Defines Physical Inventory? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106
What is a Select ID? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106
What is Cycle Counting? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107
What is a Freeze File? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108
What is a Count Sheet? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108
What is Catch Weight?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108
What is a Count Variance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109
What is a Reason Code? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109

Procedures in this Chapter .........................................110


Defining a Select ID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Creating Freeze Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Printing Count Sheets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Entering Counts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Inquiring on Inventory Variances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Adjusting Count Variances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121
Updating Inventory Counts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126
Explaining Count Variances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128
Deleting Freeze Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

Inventory Control User Guide Contents 5


Chapter 7 Issuing Inventory 131

Concepts in this Chapter........................................... 132


What is an Issue? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132
What is a Requesting Location? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132
What are Transaction Types? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133
What is Transaction Interfacing?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134
What is a Document ID? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134
How do I Use Walk Thru? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134

Procedures in this Chapter ........................................ 135


Issuing Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135

Chapter 8 Transferring Inventory 139

Concepts in this Chapter........................................... 140


What is a Transfer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140

Procedures in this Chapter ........................................ 141


Transferring Inventory to Another Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141
Transferring Inventory within a Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144

Chapter 9 Receiving Inventory 149

Concepts in this Chapter........................................... 150


What is a Receipt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150
What is an Intransit Receipt?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150
How do Unit Costs default? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150

Procedures in this Chapter ........................................ 151


Receiving Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151
Receiving Intransit Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154

Chapter 10 Adjusting Inventory 159

Concepts in this Chapter........................................... 160


What is an Inventory Adjustment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
What is a Storage Code? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160

Procedures in this Chapter ........................................ 161


Adjusting Inventory Quantities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161
Adjusting Inventory Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164

6 Contents Inventory Control User Guide


Chapter 11 Replenishing Inventory 167

Concepts in this Chapter........................................... 168


What is Inventory Replenishment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
What is Exception Reporting?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169
What is Item Forecasting?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169

Procedures in this Chapter ........................................ 170


Replenishing from Another Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170
Replenishing from a Vendor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
Replenishing an Inventory Location through Requisitions . . . . . . . . . . . . . . . . . . . . . .174
Replenishing Bins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176
Defining Item Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178

Chapter 12 Closing Inventory Control Period 181

Concepts in this Chapter........................................... 182


What is an Inventory Control Period? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182
What are Analysis Reports?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182
Why do I need to Release Unreleased Documents? . . . . . . . . . . . . . . . . . . . . . . . . . . . .182

Procedures in this Chapter ........................................ 183


Closing the Inventory Control Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183

Chapter 13 Managing Cart or Par Locations 187

Concepts in this Chapter........................................... 188


What is a Cart or Par location? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .188
What happens when I create a Cart or Par location?. . . . . . . . . . . . . . . . . . . . . . . . . . . .188
What is a Shelf Location? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189
How do I Replenish a Cart or Par Location? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189
What is a Par Level? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189
Where do I enter account information for Cart or Par Locations? . . . . . . . . . . . . . .189
What is a Handheld Terminal? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189
How do I Perform a Count of a Cart or Par Location? . . . . . . . . . . . . . . . . . . . . . . . . . . .189
What is the Fill and Kill feature? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190
What is a Requester? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190

Procedures in this Chapter ........................................ 191


Setting up Cart or Par Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191
Defining Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193
Assigning Items to the Cart or Par Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193
Replenishing Cart or Par Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197
Mass Updating Cart/Par Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200
Updating Suggested Par Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200
Updating the Item Location Reorder Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202

Inventory Control User Guide Contents 7


Chapter 14 Using Attribute Matrix Attributes 203

Concepts in this Chapter........................................... 204


What is Attribute Matrix?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204
What is an Attribute? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205
What is an Element? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .206
Where Can I Use Attributes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .206
What is a List? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .208

Procedures in this Chapter ........................................ 212


Loading Lawson-Defined Attributes and Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212
Defining an Attribute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212
Assigning Attribute Values to an Item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215
Assigning Attribute Values to an Accounting Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216
Assigning Attribute Values to an Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217
Assigning Attribute Values to an Inventory Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219
Defining an Automatic List. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219
Defining a Manual List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .222
Interfacing Valid Attribute Value Ranges to Attribute Matrix . . . . . . . . . . . . . . . . . . . .224

Appendix A Setting Up Kits 225


Managing Kit Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225
Defining Make-to-Order Kits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226
Replacing Kit Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228
Adding Burdens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229
Defining Finished Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .230
Creating Finished Good Kit Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .232

Appendix B Processing Patient Charges 235


Implementing Patient Charge Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235
Processing Patient Charges Manually . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238

Appendix C Handheld Setup and Processing 243

Appendix D Procurement Transaction Interface 245


Processes that Create Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245
Transaction Source Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .246
Interface Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .246
Transaction Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248

Transaction Posting Scenarios ................................... 251


Inventory, No Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251
Inventory with Inspection Accepted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .252
Inventory with Inspection Rejected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253

8 Contents Inventory Control User Guide


Downward Adjustment with Match Write Off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
Upward Adjustment with Match . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255
Detail Match Cost Variance, No Goods In Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256

Appendix E Product Transfer and Resale Report (867) 259


Defining Ship To Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259
Defining Manufacturer Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260
Running the Product Transfer and Resale Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263

Appendix F Verifying Your Inventory Quantity Data 267

Concepts in this Appendix......................................... 268


What Is the Data Verification Toolset? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .269
What Are the Prerequisites for Running These Programs?. . . . . . . . . . . . . . . . . . . . .269
In What Order Do I Run the Data Verification Toolset?. . . . . . . . . . . . . . . . . . . . . . . . . .270
What CSV Files are Created by Update Programs?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .275
What Database Files Are Updated by Update Programs? . . . . . . . . . . . . . . . . . . . . . .278

Procedures in this Appendix ...................................... 281


Preparing Source Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281
Checking for Orphan Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281
Running the Document Integrity Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .284
Understanding Inventory Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288
Running the WH and IC Integrity Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .289
Running the Warehouse Detail Integrity Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .290
Performing a Physical Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .290
Viewing Progress Messages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291
Printing an Audit Trail History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291
Understanding Record Statuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .293

Appendix G Documentation Conventions and Support 295


Documentation conventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .295

Index 297

Inventory Control User Guide Contents 9


10 Contents Inventory Control User Guide
List of Figures
Chapter 1 Overview of Inventory Control
Figure 1. Application integration: How Inventory Control integrates with other applications . . . . . . . . . . . . . . . . 15

Chapter 2 Setting Up Prerequisite Applications


Figure 2. Procedure relationship: Setting up prerequisite applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Chapter 3 Setting Up Inventory Control


Figure 3. Procedure flow: Defining item groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Figure 4. Procedure flow: Defining Inventory Control company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Figure 5. Procedure flow: Defining period end dates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Figure 6. Procedure flow: Defining inventory locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Figure 7. Procedure flow: Defining GL category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Figure 8. Procedure flow: Setting up bins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Chapter 5 Setting Up Item Locations


Figure 9. Concept flow: Reorder policy job aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Chapter 6 Conducting Physical Inventory


Figure 10. Procedure flow: Defining a select ID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Figure 11. Procedure flow: Creating freeze files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Figure 12. Procedure flow: Printing count sheets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Figure 13. Procedure flow: Entering counts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Figure 14. Procedure flow: Entering count detail for an item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Figure 15. Procedure flow: Randomly entering item counts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Figure 16. Procedure flow: Inquiring on inventory variances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120
Figure 17. Procedure flow: Adjusting count variances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122
Figure 18. Procedure flow: Adjusting count detail for an item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124
Figure 19. Procedure flow: Randomly adjusting item counts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125
Figure 20. Procedure flow: Updating inventory counts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127
Figure 21. Procedure flow: Explaining count variances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129
Figure 22. Procedure flow: Deleting freeze records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

Chapter 7 Issuing Inventory


Figure 23. Procedure flow: Issuing inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .136

Chapter 8 Transferring Inventory


Figure 24. Procedure flow: Transferring inventory to another location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142
Figure 25. Procedure flow: Transferring inventory within a location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145

Chapter 9 Receiving Inventory


Figure 26. Procedure flow: Receiving inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152

Inventory Control User Guide List of Figures 11


Figure 27. Procedure flow: Receiving intransit transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155

Chapter 10 Adjusting Inventory


Figure 28. Procedure flow: Adjusting inventory quantities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162
Figure 29. Procedure flow: Adjusting inventory costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165

Chapter 11 Replenishing Inventory


Figure 30. Procedure flow: Replenishing from another location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171
Figure 31. Procedure flow: Replenishing from a vendor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
Figure 32. Procedure flow: Replenishing bins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177

Chapter 13 Managing Cart or Par Locations


Figure 33. Procedure flow: Assigning items to cart or par location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195
Figure 34. Procedure flow: Replenishing cart or par locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198

12 List of Figures Inventory Control User Guide


Chapter 1

Overview of Inventory Control

The Lawson® Inventory Control application lets you define items and manage
inventory. The application receives items that you purchase from a vendor
or replenish from another location and moves out items by issue, transfer
or allocation.
This chapter provides a high-level overview of Inventory Control, including
information on the application’s major processes and integration with other
Lawson and non-Lawson products.

Inventory Control Process Flow


The Inventory Control application is broken down into four processes: setup,
conducting physical inventory, inventory processing, and managing cart/par
locations. This section takes a closer look at the Inventory Control application
and at these processes.

Inventory Control Setup


While setting up Inventory Control, you must consider the inventory needs
of your central reporting structure. Specifically, you need to determine what
items are needed and what kind of allocation control is set for those items.

Conducting Physical Inventory


It is essential that you conduct a physical inventory assessment before you
begin normal inventory activities.

Inventory Processing
Inventory processing is the day-to-day movement of inventory in and out
of locations. It consists of issuing, transferring, receiving, and adjusting
inventory items.
Inventory processing also includes replenishing inventory. You replenish
inventory by evaluating the needs of your company and then selecting the
replenishment formula that suits those needs.
At the end of each period, Lawson recommends that you do period end
processing. Period end processing creates general ledger transactions,
updates accounts, and closes the inventory period.

Inventory Control User Guide Chapter 1 Overview of Inventory Control 13


Managing Cart/Par Locations
Cart/par locations are used by companies that have a specific need for
inventory stored at a level below location. One location may have several
cart-par locations associated with it. Most commonly, cart/par locations are
used in the healthcare industry to accommodate the need to have items
readily available at many locations per department.

Inventory Control: A Big Picture


To represent Inventory Control’s major processes, this user guide is divided
into four main parts: Setup, Physical Inventory, Processing, and Managing
Cart/Par Locations.
This big picture flow illustrates Inventory Control’s four main processes,
breaks the processes down into subprocesses, and serves as a reminder
of where you are in the big picture.

Setup Physical Processing Managing


Inventory Cart/Par
Locations

Inventory Conducting Issuing Managing


Control Physical Inventory Cart/Par
Overview Inventory Locations

Setting up Transferring
Prerequisite Inventory
Applications

Setting up Receiving
Inventory Inventory
Control

Adjusting
Setting up
Inventory
Item Master

Setting up Replenishing
Item Inventory
Location

Closing
Period

14 Chapter 1 Overview of Inventory Control Inventory Control User Guide


How Inventory Control Integrates with Other Lawson
Applications
This section explains how the Lawson Inventory Control application
interfaces with other Lawson applications.
Figure 1. Application integration: How Inventory Control integrates with other applications

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General Ledger
The Lawson General Ledger application receives journal entry information
from Inventory Control for each period you define. The journal entry
information includes journal transactions of each issue, transfer, receipt, and
adjustment of an inventory item. Currency information is not used directly in
the Inventory Control application, but it is used on journal entry information
passed to the General Ledger application.

Inventory Control User Guide Chapter 1 Overview of Inventory Control 15


Accounts Payable
The Lawson Accounts Payable application can work with the Inventory
Control application to send vendor information.

Requisitions
The Lawson Requisitions application sends information about requestors and
requesting locations to Inventory Control.

Purchase Order
The Lawson Purchase Order application receives order information from the
Inventory Control application in order to automatically create purchase orders.

Billing
The Lawson Billing application makes use of items defined in the Inventory
Control application.

Project Accounting
The Lawson Project Accounting application receives activity information from
Inventory Control. This information is used, along with budgets, to collect
and report on costs and revenues.

Tax
The Lawson Tax application sends tax codes, tax tables, and tax rates to
Inventory Control to calculate tax on items.

Strategic Ledger
The Lawson Strategic Ledger application receives information from the
Inventory Control application.

Order Entry
The Lawson Order Entry application sends item information to and receives
item information from the Inventory Control application in order to manage
customer orders.

Franchise Management
The Lawson Franchise Management application makes use of unit of measure
data maintained in the Inventory Control application.

Production Order
The Lawson Production Order application receives item information from the
Inventory Control application.

16 Chapter 1 Overview of Inventory Control Inventory Control User Guide


Warehouse
The Lawson Warehouse application sends item information to the Inventory
Control application.

Non-Lawson General Ledger


The Inventory Control application lets you send journal entries to a
non-Lawson general ledger through a custom interface. In addition, Inventory
Control is also able to receive inventory records from non-Lawson applications
through a custom interface.

Inventory Control User Guide Chapter 1 Overview of Inventory Control 17


18 Chapter 1 Overview of Inventory Control Inventory Control User Guide
Chapter 2

Setting Up Prerequisite Applications

This chapter explains how to set up applications before you set up Inventory
Control.

Inventory Control User Guide Chapter 2 Setting Up Prerequisite 19


Applications
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 25. • "What is a Currency Table?" on page 20
• "What is a Currency Code?" on page 21
• "What is a Chart of Accounts?" on page 22
• "What is a General Ledger Company?" on page 22
• "What is an Accounting Unit?" on page 23
• "What is System Control?" on page 23
• "How do Intercompany Relationships relate to Inventory Control?"
on page 23
• "What do I need to know about Accounts Payable?" on page 24
• "What is Project Accounting?" on page 24

What is a Currency Table?


A currency table is a combination of currency relationships, exchange rates,
and translation rates that are used by one or more companies. A currency
table reduces the time it takes to independently create and maintain currency
rates and relationships. For more information on currency tables, see the
Currency User Guide.

20 Chapter 2 Setting Up Prerequisite Inventory Control User Guide


Applications
What is a Currency Code?
A currency code is an identifier for a kind of currency (US dollars, French
francs, etc.). Your company will use currency codes to represent all the
currencies in which you conduct business.
You must set up at least one currency code for your company. If your
company conducts business in more than one currency, you will need to set
up a separate code for each currency you use.

How are Currency Codes used?


Currency codes are used to track the currency for an account, a transaction,
or a company. If your business uses multiple currencies, the Currency
application exchanges, revalues, and translates your currency amounts
against the base currency you have defined in General Ledger.

What makes up Currency Codes?


TIP For additional Currency codes are made up of a currency code identifier, a description, a
information on currency forms expression, and a notation of decimal places.
codes, see the Currency
User Guide. A currency code identifier is up to five alphanumeric characters in length, and
is used to label a type of currency. You can define your own currency code
identifier, or you can use one of Lawson’s standard currency codes.
A currency description is a text-based description of a currency code.
Currency descriptions are up to 30 characters long.
A forms expression is an additional description of a currency code that prints
on Lawson’s printed forms. For example, you might enter USD as your forms
expression to represent United States dollars.
The number of decimals defines the number of decimals used to display
currency amounts. You have the choice of displaying zero or two decimals.

What is a Currency Relationship?


A currency relationship identifies rules for a relationship between two
currency codes in a currency table. Often, currency relationships dictate how
currencies are exchanged and translated. For more information on currency
relationships, see the Currency User Guide.

Inventory Control User Guide Chapter 2 Setting Up Prerequisite 21


Applications
What is a Chart of Accounts?
A chart of accounts is a list of accounts you use to organize your accounting
records. It is made up of balance sheet accounts (assets, liabilities, and
equity) and income statement accounts (income and expenses). The balance
sheet and income statement accounts are made up of summary and detail
accounts.

How is a Chart of Accounts Used?


The chart of accounts is used to post journal entries and to summarize
general ledger information for reports and inquiries. The account numbers
and descriptions you define are reflected in your balance sheets, income
statements, and other reports and inquiries. Detail accounts roll up into
summary accounts to provide totals.
For more information, see the General Ledger User Guide.

What is a General Ledger Company?


The company is the highest organizational element in the General Ledger
application. It can represent any business or legal entity of an organization,
such as a corporation, holding company, division, or region.
You assign a chart of accounts, base operating currency, fiscal calendar, and
optional security safeguards to a company.
You structure your company to match your business needs. Your first decision
is whether you will need multiple companies or a single company. You can
define up to 9,999 separate companies in General Ledger which you can
consolidate for reporting and inquiry.
For more information, see the General Ledger User Guide.

22 Chapter 2 Setting Up Prerequisite Inventory Control User Guide


Applications
What is an Accounting Unit?
An accounting unit represents a location or business center in a general
ledger company, such as a division, department, region, or store.
Your company can include up to five levels of accounting units. A level
represents a layer in a company’s hierarchy. For example, a company might
include three levels: region, division, and department. Each level is part of,
or reports to, the level above it. Each accounting unit must have a unique
name, which is up to 15 characters long. You cannot change an accounting
unit name after you define it.

How are Accounting Units Used?


You use accounting units to further define your company. By defining
accounting units at different levels, you build a company that resembles your
organizational chart. You define two types of accounting units:
• Posting accounting units are used to post journal entries. These
accounting units are the lowest level of organization in a general ledger
company.
• Summary accounting units are used to summarize the activity of lower
level accounting units for consolidation and reporting.
For more information, see the General Ledger User Guide.

What is System Control?


System control lets you control the way a subsystem (in this case, Inventory
Control) interfaces with the General Ledger application. For example, you are
required to close a period in Inventory Control before you close a period in
General Ledger.
For more information, see the General Ledger User Guide.

How do Intercompany Relationships relate to Inventory


Control?
Setting up relationships between companies is important in the Inventory
Control application because many Inventory Control transactions cross
companies. In other words, the From and To companies can be different
when performing tasks such as issuing, transferring, receiving, and adjusting
inventory. For information on setting up intercompany relationships, see the
General Ledger User Guide.

Inventory Control User Guide Chapter 2 Setting Up Prerequisite 23


Applications
What do I need to know about Accounts Payable?
Before you set up the Inventory Control application, you need to have
general knowledge about how the Accounts Payable and Inventory Control
applications share information.

What are Pay Groups?


Pay groups are portions of your organization that you group together for
payment processing. A pay group is made up of one general ledger posting
company and any number of invoice companies and process levels. You
must define at least one pay group.
Once you have set up Currency, General Ledger, and Cash Management,
the next required prerequisite setup is Accounts Payable. This procedure
provides a checklist of Accounts Payable setup tasks. For more information
on Accounts Payable setup, see the Accounts Payable User Guide.

What is Project Accounting?


Project Accounting is an application that provides an operational view of your
organization. It allows you to capture revenue as well as cost information from
the Lawson applications. You can associate activities with transactions, this
association then allows you the use of Activity Based Costing (ABC) and
Activity Based Management (ABM). You can develop budgets for a project
or an activity. You can then track cost commitments and budgets throughout
a project life cycle or during an ongoing activity.

24 Chapter 2 Setting Up Prerequisite Inventory Control User Guide


Applications
Procedures in this Chapter
Before you can set up Inventory Control, you must set up applications that
interface with Inventory Control. First, set up Currency and General Ledger.
The remaining applications are set up according to your business needs.
Purchase Order, if you use it, is set up after setting up Inventory Control. The
flowchart outlines the order of the prerequisite setup.
Figure 2. Procedure relationship: Setting up prerequisite applications


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Inventory Control User Guide Chapter 2 Setting Up Prerequisite 25


Applications
Setting up Currency
The first step in setting up the Inventory Control application is setting up
Currency. This entails defining your currency table, defining your currency
code(s), and setting up your currency relationships. This procedure provides
a checklist of Currency setup tasks.

Need More Details? Check out the following concepts:


• "What is a Currency Table?" on page 20
• "What is a Currency Code?" on page 21
• "What is a Currency Relationship?" on page 21

STEPS To set up Currency


1. Access Currency Table (CU00.1) and define your currency table.
TIP To access CU01.2, 2. Access Currency Code (CU01.1) and define a single currency code.
choose the Multiple
Entry button on CU01.1. – or –
Access Currency Codes (CU01.2) and define multiple currency codes.
3. Access Currency Relationship (CU02.1) and define your currency
relationships.

Related Reports and Inquiries


To Use
List currencies Currency Codes Listing (CU201)
List currency relationships Currency Relationship Listing
(CU202)

26 Chapter 2 Setting Up Prerequisite Inventory Control User Guide


Applications
Setting up General Ledger
After you set up Currency, you need to set up General Ledger. This procedure
provides a checklist of General Ledger setup tasks. For more information on
General Ledger setup, see the General Ledger User Guide.

Need More Details? Check out the following concepts:


• "What is a Chart of Accounts?" on page 22
• "What is a General Ledger Company?" on page 22
• "What is an Accounting Unit?" on page 23
• "What is System Control?" on page 23

STEPS To set up General Ledger


1. Access Chart of Accounts (GL00.1) and define your General Ledger
accounting structure.
TIP Your company 2. Access Company (GL10.1) and define your General Ledger company.
represents the highest
business unit or 3. Access Accounting Units-Accounts (GL20.1) and define your accounting
legal entity in your unit structure.
organization. 4. Access System Control (GL01.1) and define your system interface and
closing options for your general ledger company.
5. Access Intercompany Relationships (GL25.1) to set up intercompany
relationships.

Related Reports and Inquiries


To Use
List the chart of accounts Chart of Accounts Listing (GL200)
List company parameters Company Listing (GL210)
List all accounting units defined for Accounting Unit Listing (GL220)
a company
List all the posting accounts for Posting Accounts Listing (GL221)
specific accounting units
List accounting units for specific Posting Accounts Listing by Account
accounts (GL222)
List your system and source code System Control Listing (GL201)
options

Inventory Control User Guide Chapter 2 Setting Up Prerequisite 27


Applications
Setting up Accounts Payable
If you use the Lawson Accounts Payable application to manage payments
to vendors, set up Accounts Payable. This procedure provides a checklist of
Accounts Payable setup tasks.

Need More Details? Check out the following concepts:


• "What are Pay Groups?" on page 24

STEPS To set up Accounts Payable


TIP For more detailed 1. Access Vendor Group (AP00.1) and define your vendor group.
information on setting up
Accounts Payable, see Your vendor group is the set of vendors you do business with.
the Accounts Payable 2. Access Vendor Class (AP00.3) and define a vendor class.
User Guide.
Your vendor class represents a subset of vendors in your vendor group.
Vendor classes categorize vendors that share common reporting and
payment processing characteristics.
3. Access Pay Group (AP01.1) and define a pay group.
4. Access Company (AP00.4) and define your Accounts Payable company.
5. Access Process Level (AP00.5) and define your process level(s).
A process level is a part of a company, such as a division, department,
or cost center. You must define at least one process level for each
Accounts Payable company.
6. Access Vendor (AP10.1) and define your vendors.

Setting up Requisitions
If you issue items using Inventory Control, you must set up at least one
requesting location in the Requisitions application. This procedure provides a
checklist of Requisitions setup tasks.

STEPS To set up Requisitions


1. Access Requesting Locations (RQ01.1) and define requesting locations.
2. Access Requesters (RQ04.4) and define requesters.

Setting Up Project Accounting


Depending on your business needs, you may also set up the Project
Accounting application. This procedure provides a checklist of Project
Accounting setup tasks. For more information, see the Project Accounting
User Guide.

28 Chapter 2 Setting Up Prerequisite Inventory Control User Guide


Applications
Need More Details? Check out the following concepts:
• "What is Project Accounting?" on page 24

STEPS To set up Project Accounting


1. Access Activity Group (AC00.1) and define activity groups.
2. Access Calendar (AC00.2) and define an activity group calendar.
3. Access Define Account Categories (AC05.1) and define account
categories and the general ledger accounts related to them.
4. Access Account Category Assignment (AC06.1) and assign account
categories to activities.
5. Access Activity (AC10.1) and define your activity codes. This identifies
the actual tasks that make up an activity group. You must define activity
codes before you can create activity budgets and post transactions.
6. Access Account Information (GL00.4) and attach a user analysis value
relationship to an account. Repeat this step for other accounts.
7. Access Activity Assets (AC10.3) and define activity assets.
8. Access Activity Group Budget (AC20.1) and define a budget for your
activity group.
9. Access Activity Budget (AC02.2) and define a budget for your activity.
10. Access Allocation (AC30.1) and define allocations.
11. Access Activity Revenue (AC14.1) and define activity revenues.
12. Access Activity Billing (AC15.1) and define the billing structure.

Related Reports and Inquiries


To Use
List activity groups Activity Group Listing (AC200)
List activity statuses Status Listing (AC202)
List resource assignments Resource Assignment Listing
(AC203)
List general ledger codes GL Code Listing (AC204)
List account categories Account Category Listing (AC205)
List account category assignments Acct Cat Assignment Listing (AC206)
List account assignments Account Assignment Listing (AC207)
List process groups Process Group Listing (AC208)
List activities Activity Listing (AC210)
List activity group relationships Activity Grp Relationship Listing
(AC228)
List activity relationships Activity Relationship Listing (AC229)

Inventory Control User Guide Chapter 2 Setting Up Prerequisite 29


Applications
Setting up Tax
If you track sales and use taxes on your transactions, you need to set up the
Lawson Tax application. This procedure provides a checklist of Tax setup
tasks. For more information on Tax setup, see the Tax User Guide.

STEPS To set up Tax


1. Access Company (TX00.1) and define your company in the Tax
application.
2. Access Tax Code Master (TX01.1) and define your tax codes.
Tax codes are predefined codes that identify the tax authority(s) to which
your company pays taxes.
3. Access Tax Rate (TX03.1) and assign tax rates to your tax codes.
Tax rates are the percentages of tax your company needs to pay. After
you assign tax rates to tax codes, you calculate your taxes automatically.

Related Reports and Inquiries


To Use
List your tax company options Tax Company Listing (TX200)
List tax codes, descriptions, and Tax Code Master Listing (TX201)
types
List tax rates and the tax codes they Tax Rate Listing (TX203)
are assigned to

Setting up Warehouse
Depending on your business needs, you may also set up the Warehouse
application. This procedure provides a checklist of Warehouse setup tasks.
For more information, see the Lawson Distribution Management User Guide.

STEPS To set up Warehouse


1. Access Process Types (WH01.1) and define the shipment processing
steps (picking feedback, packing feedback) a document must go through
before invoicing.
2. Access Shipping Method (WH11.1) and define different codes to specify
how shipments are sent.

30 Chapter 2 Setting Up Prerequisite Inventory Control User Guide


Applications
Setting Up Purchase Order
If you purchase inventory from vendors, you must set up the Purchase Order
application. This procedure provides a checklist of Purchase Order setup
tasks. For more specific information, see the Purchase Order User Guide.

Need More Details? Check out the following concepts:


• "What is a Procurement Group?" on page 48

STEPS To set up Purchase Order


1. Access Procurement Group (PO00.1) and define your procurement group.
2. Access Company Setup (PO01.1) and define your Purchase Order
company.
3. Access Ship Terms (PO02.1) and define at what point the buyer or seller
has possession of the merchandise during shipment.
4. Access PO Vendor (PO10.1) and define vendor information. Consider
the following:
• Contact information
• Issue methods for original and revised purchase orders
• Shipping terms and methods
• Purchase limits and tolerances

Inventory Control User Guide Chapter 2 Setting Up Prerequisite 31


Applications
32 Chapter 2 Setting Up Prerequisite Inventory Control User Guide
Applications
Chapter 3

Setting Up Inventory Control

This chapter explains how to set up the Inventory Control application.

Before you start Before you set up your Inventory Control application, you
must set up all prerequisite applications. For more information, see "Setting
Up Prerequisite Applications" on page 19.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 33


Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 49. • "What is an Item Group?" on page 34
• "What is a Unit of Measure?" on page 35
• "What are Comment Types?" on page 35
• "Where will my comments display?" on page 35
• "What is an Inventory Control Company?" on page 36
• "Why are Costing Methods used?" on page 37
• "How do I calculate inventory available to sell or allocate?" on page 38
• "What are the Rules for Allocation?" on page 38
• "What do Inventory Control period end dates determine?" on page 38
• "What are the options for inventory periods?" on page 39
• "What are Bins?" on page 39
• "What is an Inventory Location?" on page 39
• "What are Customer and Vendor Roles used for?" on page 40
• "What are Replenishment Requesters?" on page 40
• "What is a Report Group?" on page 40
• "What is a General Ledger Category?" on page 41
• "What is an Accounting Unit?" on page 44
• "What are Inventory Classes?" on page 44
• "What are Inventory Codes?" on page 45
• "What are UNSPSC Codes?" on page 46
• "What are UPC Codes?" on page 46
• "What are UPN Codes?" on page 47
• "What are SKU Codes?" on page 47
• "What are NDC Codes?" on page 47
• "What are User Fields?" on page 47
• "What is a Procurement Group?" on page 48
• "What are Keyword Searches?" on page 48

What is an Item Group?


An item group identifies a specific group of items for a company. If multiple
companies share the same items, you need to set up the items only once,
then assign the same item group to all companies. You can only assign one
item group to each company; however, multiple companies can share an
item group.

34 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


What is a Unit of Measure?
A unit of measure (UOM) is the unit in which the item is packaged. For
example, you order soda pop by a single can, six-pack, two-liter bottle, or a
case--each of which is a unit of measure. When you define items in Inventory
Control, you must define at least one unit of measure per item.

Stock Unit of Measure


The stock unit of measure is the UOM in which you track inventory balances.
You define all valid units of measure at the Item Group level, then define a
stock unit of measure for each specific item.

Alternative Unit of Measure


Alternative units of measure are valid UOM that are defined for items. You
define alternative units of measure to account for different UOM used during
purchasing or sales of an item.

What are Comment Types?


Comment types are codes that specify kinds of comments such as shipping
instructions or packing information. You define whether or not to print each
comment type on the item master list, location master list or, intransit shipping
and receiving documents. Comment types are assigned to item groups.

Where will my comments display?


You define which reports comment types print on. Comment types can display
on intransit shipping, item master listing, or location master listing reports.
Also, for Warehouse purposes, you can display comment types on the picking
list or the packing list.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 35


What is an Inventory Control Company?
An Inventory Control company is an organizational structure that holds
your inventory locations. The Inventory Control company is defined from
an existing General Ledger company. You assign an item group, Inventory
Control locations, report groups, period end dates, and bin usage types to
your Inventory Control company.
During Inventory Control company setup, you make a decision about which
type of document numbering to use, automatic or manual numbering. If
you choose automatic numbering, the application automatically numbers
Inventory Control documents (helping to avoid duplicate numbers). You must
also then choose numeric document numbers. With automatic numbering,
you can enter the last used numbers for some or all of the following kinds of
documents:
• receipts
• issues
• transfers
• intransit receipts
• adjustments
• bin transfers
If you choose manual numbering, you manually enter document numbers for
all Inventory Control transactions, and cannot enter last used numbers for
documents during company setup.
After documents have been created, you can change the document
numbering method. However, you cannot change the method if any
unreleased documents exist.

36 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


Why are Costing Methods used?
You use costing methods to determine the unit cost for all outgoing inventory
transactions (issues, adjustments, and transfers). The Purchase Order
and Order Entry applications reference a company’s costing method when
creating general ledger entries. Costing methods are described below.

Standard Costing Method


The application bases inventory cost by the standard cost value specified for
inventory items by location.

Average Costing Method


This is a moving or weighted average cost method. The application combines
each purchase with the former inventory balance to determine a new average
unit cost. The application bases subsequent inventory issues on the new
average cost. With any addition to stock-on-hand, the average cost is
recalculated.

LIFO (Last In, First Out)


Inventory cost is based on the newest receiving cost record on file in the
Inventory Control application. Records of receiving costs are the result of
receipts and adjustments in the Inventory Control application, and the process
of receiving items in the Purchase Order application. All additions to inventory
create a receiving record at a specific cost in the Inventory Control application.

FIFO (First In, First Out)


The inventory cost is based on the oldest receiving cost record on file in the
Inventory Control application. The oldest receipt is the one that gets issued
next. The cost of that receipt is the cost used for the next transaction.

I want to use the average or standard cost for


financial reporting but need FIFO inventory
valuation for tax reporting. How can I get both?
The Inventory Control application lets you select average, standard, LIFO,
or FIFO for gross profit and general ledger purposes. If you select either
average or standard, the application keeps FIFO active for inventory valuation
reporting. If you select standard, the application keeps the average cost for
you.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 37


How do I calculate inventory available to sell or allocate?
When you define your Inventory Company, you set up formulas to calculate
when inventory is available to allocate or available to sell. Both calculations
begin with stock-on-hand and subtract items that are allocated or in process
(ready to pick). You decide if you will also subtract items that are on backorder
or on inspection hold. You also decide if you will include items that are
on order, intransit, or work in process. Work in process are items from the
Production Order application. For more information, see the Production Order
User Guide.

What are the Rules for Allocation?


You define two kinds of rules for allocation: allocation method and allocation
basis. The allocation method defines how inventory is allocated in the
Warehouse application. You either allocate online (when the requisition is
released) or in batch (when the batch program is run). The allocation basis
defines the sequence in which items are allocated, either by priority or by date.

How do I allocate based on priority?


You allocate based on priority by defining a priority level for each application
that requests inventory: Case Carts, Order Entry, Requisitions, and
Production Order. A priority level of 1, on a scale of 1 to 99, receives the
highest priority and is allocated inventory over another application with a
lower priority.

What do Inventory Control period end dates determine?


Inventory Control uses period end dates to control transactions sent to
General Ledger. You can process transactions within 35 days (plus or minus)
of the current period end date. The period end dates also are used to capture
data for reporting and to calculate average inventory.
Inventory Control period end dates are used only in Inventory Control. These
dates are not matched against the General Ledger calendar. If you use
system control in General Ledger, your dates are in sync because you are
forced to close an Inventory Control period before you can close a General
Ledger period. For more information, see the General Ledger User Guide.

38 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


What are the options for inventory periods?
You select either a 12-month year, 13-month year, 52-week year or a 53-week
year. An example of the 13-month year or the 53-week year is an adjustment
time where the thirteenth month is only one day. That extra day, a single
period, is used to reconcile transactions and ensure that you are ready to
move to the next year.
You define a period as either open or closed. If a period is closed, it cannot
accept transactions after the close date.

What are Bins?


Bins are a level of storage within a company location. A bin can be a specific
area, rack, shelf, or row at the location. You set up bins at the location level.
Before you set up bins, you must set up bin usage types and storage codes.
After you define bins, you can set up items to be tracked by bin. Items tracked
by bin are commonly referred to as “bin-tracked items.”

Bin Usage Types


A bin usage type allows you to limit the types of transactions that you can
perform on a bin. When you assign bin usage types to a bin, you have the
option to allow or restrict items issued from or received into the bin. If you use
bin usage types to restrict items, you can only transfer items in or out of bins.
Bin usage types are set up at the company level.

Storage Codes
A storage code is a method that you can use to assign physical limitations to
a bin or an item. You set up storage codes when you set up bins.

Bin-Tracked Items
A bin-tracked item is an example of an item tracking method within the
Inventory Control application. This method enables you to track items by
their bin location. When you set up items, you indicate if an item is to be
tracked by bin.

What is an Inventory Location?


An inventory location is a physical place where you store inventory. The place
can be a region, a city, a building, a floor, an accounting unit, or any other
area where you store inventory. You can also define a location as a place
where you store a particular classification of inventory, such as spare parts,
office supplies, or consignment inventory.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 39


What are Customer and Vendor Roles used for?
Customer and vendor roles are used to process transactions across
companies in a corporation, regardless of country barriers. This way, two
companies can act as either a customer or a vendor for each other.

Example
If a corporation, Two Rivers, has a location in Germany and a location in
France, they can easily share inventory using roles. If Germany is out of an
item, it can request the item from France. Then, Two Rivers in Germany
becomes the customer and Two Rivers in France the vendor.

What are Replenishment Requesters?


The batch inventory replenishment programs, Location Replenishment Report
(IC141) and Replenishment by Requisition PO's (IC142) use replenishment
requesters. There are two ways to set up replenishment requesters:
• Adding a requester by combining the program number and the location
code
• Specifying a requester as your replenishment requester on Location
(IC02.1)
Requesters are defined using Requesters (RQ04.1). If there is a
replenishment requester specified on Location (IC02.1), it is used. Otherwise,
IC141 and IC142 look for the requester that is the combination of the program
number and location code. For information on setting up requesters, see
the Requisitions User Guide.

What is a Report Group?


A report group is a structuring method you can use to classify a group of
locations. You must have at least one report group per company in order to
conduct a physical inventory assessment.
In addition to conducting physical inventory, you can use report groups to
classify locations for reporting, inquiry, and processing purposes.
When you specify a report group in inquiry or report programs, you access
only the information related to the locations within that report group.

Example of Report Group Usage


Company A has six locations that are assigned to two report groups.
Locations 1, 2, and 3 are assigned to a report group called WEST. Locations
4, 5, and 6 are assigned to a report group called EAST.
Company A also uses total groups to categorize report totals within a report
group by assigning total groups to locations. For example, within the West
report group, Locations 1 and 2 are assigned to Total Group A, and Location 3
is assigned to Total Group B.

40 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


What is a General Ledger Category?
A general ledger category is a subset, or subcategory, of the chart of accounts
that you set up in the General Ledger application.
The general ledger category identifies accounts (such as an inventory
account, default offset account, and processing account) for inventory items
or a group of inventory items.
You link the general ledger category to each inventory location. However,
before you can link a general ledger category to an inventory location, you
must have already created the accounts in the General Ledger application,
and their status must be Active.
The general ledger category accounts are inventory, receipts, issues,
adjustment, cost variance, intransit, physical inventory variance, add-on cost,
and shrinkage. You must define all of them, even if you do not use them in
your daily work.
Inventory The account where all transactions against an inventory
item are posted. Inventory being received is debited
and inventory being issued is credited. You can think
of this account as the asset or inventory account. For
information on the different transaction types, see
"What are Transaction Types?" on page 133.

NOTE The inventory transaction total amount is posted


here as a debit or credit, depending on whether the
transaction increases or decreases the inventory’s
value.

Receipts The account where inventory receipts are offset by


default. Inventory being received debits the inventory
account and credits the offset inventory receipts
account. Production Order application users may think
of this account is as a work in process account, for
goods being received from manufacturing into finished
goods.

NOTE You can override this account during transaction


entry. Please also note that this is not the PO Receipt
Offset.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 41


Issues The account where inventory issues are offset by
default. Inventory being issued credits the inventory
account and debits the offset inventory issues account.
You can think of this account as the expense account.
You can set up this account as the cost of goods sold
(for issuing to sales) or work in process (for issuing
inventory to manufacturing or assembly).

NOTE You can override this account during transaction


entry.

Adjustment The account where adjustments to inventory are


offset by default. Inventory being adjusted debits the
inventory account and credits the offset inventory
adjustment account.
You can think of this account as a variance or cost of
goods sold account.

NOTE You can override this account during transaction


entry.

Cost variance The account used for Last In, First Out (LIFO), First In,
First Out (FIFO), and average cost companies when
there is a difference between the order cost and the
approved invoice cost, and the items for the receiver
are no longer available.
The costing methods used with this account are:
• Standard cost
• Average cost (all or part of the received quantity for
the purchase order has been issued out)
You set up a company as being standard cost or
average cost using Company (IC01.1).

NOTE The Purchase Order application uses this


account in situations where an item is approved with
an invoiced cost that is different then the standard
cost. Note that you cannot override this account during
transaction entry.

Actual posting does not occur until you run General


Ledger Interface (IC130) in Update mode.

42 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


Intransit The account used as a temporary holding account
when transferring inventory from one location to
another (with the Intransit Transfer option). The total
transfer amount is posted out of the from location’s
inventory account as a credit and posted to the to
location as a debit to the intransit account. When
inventory is received, the amounts are posted to the
to location’s inventory account as a debit (the offset is
then posted to the intransit account as a credit).

NOTE You cannot override this account during


transaction entry.

Physical The account where the physical inventory variance


inventory is offset. The account is used to post the difference
variance between stock on hand and what the person performing
the physical count finds. The amounts posted to this
account are automatically generated when you freeze
physical inventory and update physical inventory
counts.

NOTE You cannot override this account during


transaction entry.

Add-on cost The account where the add-on cost is offset by default.
During intransit transfer receiving, items sometimes
contain a handling charge or add-on cost (to the
received unit cost of intransit items). In this situation,
the inventory account is debited and the add-on cost
account is credited.
The received item’s value becomes the original
transferred cost, plus the add-on cost.

NOTE You can override this account during transaction


entry. Be aware that this account is not the same as
the purchase order add-on cost.

Shrinkage The account where shrinkage from returned catch


weight items (from Order Entry customer orders)
is offset. During return processing, sometimes the
returned catch weight quantity is different from the
shipped catch weight quantity. The variance between
these two quantities posts to this account.

NOTE This account is used only by the Order Entry


application.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 43


What is an Accounting Unit?
An accounting unit represents a location or business center in a general
ledger company, such as a division, department, region, or store. Your
company can include up to five levels of accounting units. A level represents
a layer in a company structure’s hierarchy.
For example, a company structure might include three levels: region, division,
and department. Each level is part of, or reports to, the level above it. Each
accounting unit must have a unique name, which can be up to 15 characters
long. You cannot change an accounting unit name after you define it.

How are Accounting Units Used?


You use accounting units to further define your company structure. By defining
accounting units at different levels, you build a structure that resembles your
organizational chart. You define two types of accounting units:
• Posting accounting units are used to post journal entries. These
accounting units are the lowest level of organization in a general ledger
company.
• Summary accounting units are used to summarize the activity of lower
level accounting units for consolidation and reporting.

What are Inventory Classes?

Freight Class
Freight class is a code you define to provide information on an item’s
freight. Order Entry uses this class for its bill of lading processing. For more
information, see the Lawson Distribution Management User Guide.

Inventory Class
Inventory class is a code you define to use as a selection criteria for inventory
replenishment, physical inventory, and reports and inquiries.

Sales Class
Sales class is a code you assign to an item to define pricing and sales
analysis information. Order Entry uses this class for its sales processing. For
more information, see the Lawson Distribution Management User Guide.

Purchasing Class
Purchasing class is a code you use as a criteria to limit a buyer to ordering
certain kinds of items.

44 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


What are Inventory Codes?

Hazard Code
Hazard codes are used to define potentially dangerous inventory items.

Reason Code
Reason codes are used to override default accounts during inventory
processing. You also use reason codes to explain variances found during
physical inventory.

Generic Name
Generic names group similar items under one name and are used as an
alternative to brand names or trademarks.

Manufacturer Code
Manufacturer codes are used to identify the manufacturer of the item.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 45


What are UNSPSC Codes?
Lawson has incorporated the usage of UNSPSC codes which is a
standardized way of categorizing items that people use in commerce. The
UNSPSC codes were developed by the United Nations in association with
Dun & Bradstreet.
The codes have four levels: segment, family, class, and commodity. These
levels create an item hierarchy and allows the user to search for each level for
items in the Item Master file.

Example
When the user searches through the segment Office Equipment they would
see the following selections.
Segment Family Class Commodity Description
44 Office
Equipment
44 10 Office
Machines
44 11 Computer
Supplies
44 12 Office
Supplies
44 12 15 Mailing
Supplies
44 12 16 Writing
Instruments
44 12 16 01 Mechanical
Pencil
44 12 16 02 Black Stylist
Pen
44 12 16 03 Black Pen

What are UPC Codes?


Universal Product Codes (UPC) represent an alternate product identifier for
items. They are used primarily in the retail industry. In the Inventory Control
application, you can associate a UPC code with an inventory item for tracking
purposes. The UPC code includes additional item information, such as UPC
type and unit of measure.
You can print UPC codes on labels for easy identification or scan them
electronically.

46 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


What are UPN Codes?
A Universal Product Number (UPN) code represents the manufacturer’s
number for an item. UPN codes are used in the retail industry. In the Inventory
Control application, you can associate a UPN code with an inventory item
for tracking purposes. The UPN code includes the manufacturer’s name,
manufacturing division, trade name, and unit of measure.
You can print UPN codes on labels for easy identification or scan them
electronically.

What are SKU Codes?


A Stock Keeping Unit (SKU) code represents an alternate identifier for items.
SKU codes are used primarily in the retail industry. In the Inventory Control
application, you can associate a SKU code with an inventory item for tracking
purposes. The SKU code includes additional item information, such as
alternate unit of measure, shelf label, color, size, and style, and is used in
the Order Entry application.
You can print SKU codes on labels for easy identification or scan them
electronically.

What are NDC Codes?


A National Drug Code (NDC) represents a specific drug. In the Inventory
Control application, you can create an NDC code on the item master and then
create a relationship between an item and an NDC number. The NDC number
includes the unit of measure and the maker (or distributor).
An item can have multiple NDC codes, similar to UPC and UPN codes.

What are User Fields?


User fields are fields which you define with any information you want. The
first line of any user field is searchable when running an item search. If you
have information about an item you want, and a field does not exist, you can
use User fields to list that information. User fields can contain information that
is alpha, numeric, date, or an amount. You define what kinds of information
is entered into these fields.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 47


What is a Procurement Group?
NOTE The Purchase A procurement group is level at which you assign multiple companies for the
Order company must purpose of sharing vendor and buyer information.
be assigned to a
procurement group. Procurement groups contain available vendors and buyers. Each company is
assigned to only one procurement group. When you assign your company
to a procurement group, you automatically have access to all vendors
and buyers for that group. Companies can also access existing contract
information within a procurement group.
Because certain Inventory Control parameters must be set up before you
can define a procurement group, the procurement group setup occurs after
you set up Inventory Control.

What are Keyword Searches?


Keyword searches allow the user of Lawson Requisitions Self-Service to
search the database for items they are requesting by using keywords. A
keyword is an index entry that identifies inventory and non-stock items.
Inventory Control dictates which origin fields will be used for searches and,
optionally, which synonyms can be used in the searches. Origin fields are
the database fields that the keyword field is built from, such as, UPC number
or description. Synonyms are words that are similar to the item you are
searching for. For example, if you are searching the keyword coat, you may
want to define the synonyms jacket, parka, slicker, and windbreaker.
To learn how to perform keyword searches, see the Lawson Requisitions
Self-Service User Guide.

48 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


Procedures in this Chapter
The procedures in this chapter explain the setup you perform in the Inventory
Control application. Setup includes tasks such as defining item groups,
companies, period end dates, bin usage types, inventory locations, report
groups, and inventory classes.

Defining Item Groups


This procedure explains how to define an item group.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 49


Need More Details? Check out the following concepts:
• "What do I need to know about Accounts Payable?" on page 24
• "What is a Unit of Measure?" on page 35
• "What are Comment Types?" on page 35
• "Where will my comments display?" on page 35
Figure 3. Procedure flow: Defining item groups

1
Access Corporate
Item Group
(IC00.1)

2
Define header
information
IC00.1

3
Type unit of
measures
IC00.1

4
Choose the Add
form action
IC00.1

5
- Optional -
Define comment
types
IC00.2

6
Choose the Add
form action
IC00.2

7
- Conditional -
Define report
options
IC00.3

8
Choose the Add
form action
IC00.3

STEPS To define item groups


1. Access Corporate Item Group (IC00.1).

50 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


2. Define header information. Consider the following fields.
Automatic Item Select Yes to automatically number items. Select
Numbering No to manually enter item numbers. The default
is No.

NOTE If you select Yes in this field, you must


also select Yes in the Numeric Item Number field.

Numeric Item Select Yes to indicate that item numbers must


Number be numeric (you can change this value after
items have been corrected, if you selected Yes).
Select No to indicate that items do not have to
be numeric.
Vendor This field is needed for the creation of new item
Agreement Def numbers when you are importing vendor catalogs
Item Create Flag using Vendor Price Agreement Load (PO536) or
manually entering agreements. The values are:
• Sequential (to create the next sequential item
number)
• Assign (to assign the item number from
another field)
• Manual (to manually enter the new item
number)
Commodity Select a commodity structure to assign to the
Structure item group.
You can assign a commodity structure if you
have implemented Strategic Sourcing and have
previously defined the commodity structure. For
more information, see the Strategic Sourcing
User Guide.
NOTE You can also 3. Type units of measure.
load unit of measure
4. Choose the Add form action.
information from an
external source. 5. If you want comments to automatically print on documents, define
comment types.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 51


NOTE Choose the Add 6. Choose the Add form action.
form action for comment
7. If you defined comment types, decide where to print those comment types.
types and report options,
even if you do not define 8. Choose the Add form action.
comment types.

Related Reports and Inquiries


To Use
List item groups Item Group Listing (IC200)

Defining an Inventory Control Company


This procedure explains how to define your Inventory Control company.

52 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is an Inventory Control Company?" on page 36
• "Why are Costing Methods used?" on page 37
• "How do I calculate inventory available to sell or allocate?" on
page 38
• "What are the Rules for Allocation?" on page 38
Figure 4. Procedure flow: Defining Inventory Control company

1
Access
Company
(IC01.1)

2
Define header
information
IC01.1

3
Enter Last Year's
End Date
IC01.1

4
- Optional -
Define parameters
for the company
IC01.1

5
Choose the Add
form action
IC01.1

STEPS To define an Inventory Control company


1. Access Company (IC01.1).
2. Define header information.
3. Type Last Year End Date.
4. To define additional parameters, consider the following tabs:
Rules Define rules your company will follow in Inventory
Control, such as allocation methods or whether
you allow negative stock-on-hand.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 53


Document Determine document numbering options, such
Numbering as automatic or manual assignment of Inventory
Control transaction document numbers.
Available Set up available-to-allocate and available-to-sell
calculations.
Work Order If you use the Production Order application,
select the work order numbering method.
Priority Levels If you allocate items based on priority, type
priority numbers for various applications (with 1
being the highest priority).
User Fields Define fields for Inventory Control, Warehouse,
or Production Order applications that are used for
your own reporting or inquiry purposes.
Requisition Self Define display options for Lawson Requisitions
Service Self-Service.

5. Choose the Add form action to add your company.

Related Reports and Inquiries


To Use
List companies Company Listing (IC201)

Defining Period End Dates


This procedure explains how to establish the dates that the Inventory Control
company uses to define the periods for transaction processing.

54 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What do Inventory Control period end dates determine?" on
page 38
• "What are the options for inventory periods?" on page 39
Figure 5. Procedure flow: Defining period end dates

1
Access
Dates
(IC01.2)

2
Define header
information
IC01.2

3
Define Period End
Dates
IC01.2

4
Select status for
period end date
IC01.2

5
Choose the Add
form action
IC01.2

STEPS To define period end dates


1. Access Period End Dates (IC01.2).
2. Define header information.
3. Type period end dates.
4. Select status of period end date.
5. Choose the Add form action.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 55


Defining Bin Usage Types
This procedure explains how to define bin usage types. For information on
defining bins, see "Setting up Bins" on page 65.

Need More Details? Check out the following concepts:


• "What are Bins?" on page 39

STEPS To define bin usage types


1. Access Bin Usage Types (IC01.3).
2. Select Company.
3. Define bin types. Consider the following fields.
Bin Type Type a code to represent the bin type.
Allow Receipts Select Yes to allow this bin type to receive items.
Allow Issues Select Yes to allow this bin type to issue items.

4. Choose the Add form action.

Defining Warehouse Report Options


If you use the Warehouse or Production Order application, this procedure
explains how to indicate which item comments print on picking and packing
lists.

Need More Details? Check out the following concepts:


• "What are Comment Types?" on page 35
• "Where will my comments display?" on page 35

STEPS To define warehouse report options


1. Access Report Options (IC01.4).
2. Select Company.
3. Select which comment types are to print on the picking or packing lists.
4. Choose the Add form action.

Defining Inventory Locations


This procedure explains how to define inventory locations within your
company. Inventory locations hold item balances.

56 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is an Inventory Location?" on page 39
• "What are Customer and Vendor Roles used for?" on page 40
Figure 6. Procedure flow: Defining inventory locations

1
Access Location
(IC02.1)

2
Define header
information
IC02.1

3
- Optional -
Define location
parameters
IC02.1

4
Choose the Add
form action
IC02.1

STEPS To define inventory locations


1. Access Location (IC02.1).
2. Define header information.
3. To define additional parameters, consider the following tabs.
Address Define address information for the inventory
location.
Choose the Attributes button to define inventory
location attributes. For more information, see the
Using Attribute Matrix Attributes chapter.
PO Ship To Define the address to which vendors will ship
purchase orders.
PO Bill To Enter information about the billing address,
contact person, and other billing details. Use it
for defaulting to the purchase order.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 57


Returns and Define default accounts for inventory items that
Inspection were returned to the vendor or put on inspection
hold. The default return accounts are:
• Returns Suspense (for items that were
returned to the vendor)
• Inspection Hold (for items put on inspection
hold)
• Freight (for items being returned to the
vendor for freight credit)
• Handling (for items being returned to the
vendor for handling charge credit)
• Scrap (for items that failed inspection and the
vendor refuses the return; in other words,
items that must be scrapped and not placed
back into inventory)
Miscellaneous Define miscellaneous information including:
• Single Document to a PO (indicate how to
create purchase orders: such as create one
purchase order from one requisition, from
one customer order, or from both)
• Default PO Dropship (indicate whether to
set the Dropship field on a purchase order
header when this inventory location is used
as the ship-to location on the purchase order)
• Requisition options (which shipment
processing steps are required)
• Roles to process between companies across
country lines

TIP To default the accounting unit for the


items at the Inventory Control location while
creating a requisition or purchase order,
select Yes in the Use GL Category Issue
Accounting Unit as Default field.

• Replenishment requester (the requester used


for replenishment programs IC141 or IC142)

NOTE The replenishment requester must


have been set up using Requesters
(RQ04.1).

Work Order Define a production facility and related


information for the Production Order application.

4. Choose the Add form action.

58 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


If you use ProcessFlow, a service is available for notification of an add,
change, and delete of inventory locations. For information, see the
ProcessFlow Reference Guide.

Related Reports and Inquiries


To Use
List locations Location Listing (IC202)

Defining Report Groups


If you want additional structures in your company, this procedure explains
how to define report groups.

Need More Details? Check out the following concepts:


• "What is a Report Group?" on page 40

STEPS To define report groups


1. Access Report Group (IC03.1).
2. Define header information.
TIP For physical 3. Select locations to include in report group.
inventory purposes,
create a one-to-one 4. Choose the Add form action.
relationship between
locations and report
groups. Options for defining report groups
The following option is available for defining report groups. You can define
a report group subcategory using the Total Group field. If you have multiple
locations within a report group, you assign a total group number as a
subcategory. For example, if you assigned Locations A, B, C and D to
one report group, you can assign Locations A and B to Total Group 1 and
Locations C and D to Total Group 2.

Related Reports and Inquiries


To Use
List report groups Report Group Listing (IC203)
Print detail usage of an item (at a par Detail Par Loc Utilization (IC285)
location or report group) by period
(batch report)
Print detail usage of an item (at a par Detail Par Location Utilization by
location or report group) by month Month (IC84.1)
(online inquiry)

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 59


Defining General Ledger Categories
This procedure explains how to define a General Ledger category with
defaulting account information.

Need More Details? Check out the following concepts:


• "What is a General Ledger Category?" on page 41
• "What is an Accounting Unit?" on page 44
Figure 7. Procedure flow: Defining GL category

1
Access General
Ledger Category
(IC04.1)

2
Select Company
IC04.1

3
Select Location
IC04.1

4
Define General
Ledger Category
IC04.1

5
Select Account
Defaults
IC04.1

6
- Optional -
Select Subaccount
Defaults
IC04.1

STEPS To define a General Ledger category


1. Access General Ledger Category (IC04.1).
2. Select a company.
3. Select a location.

60 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


TIP After adding 4. Define the General Ledger category.
a General Ledger
5. Select accounting unit and account defaults. The accounting unit for the
category, assign it to
additional locations by Issues field is optional.
changing the location 6. Choose the Add form action.
and choosing the Add
form action.
Related Reports and Inquiries
To Use
List General Ledger Categories General Ledger Category Listing
(IC204)

Defining Inventory Classes


If you classify your items, this procedure explains how to define classes.

Need More Details? Check out the following concepts:


• "What are Inventory Classes?" on page 44

STEPS To define inventory classes


1. Access one of the following forms:
• Sales Class (IC05.1)
• Inventory Class (IC06.1)
• Purchasing Class (IC07.1)
• Freight Class (IC39.1)
2. Define header information.
3. Define Class information.
4. Choose the Add form action.

Related Reports and Inquiries


To Use
List sales classes Sales Class Listing (IC205)
List inventory classes Inventory Class Listing (IC206)
List purchasing classes Purchase Class Listing (IC207)
List freight classes Freight Class Listing (IC236)

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 61


Defining Inventory Codes
If you use codes to add detail to your items, this procedure explains how
to define codes.

Need More Details? Check out the following concepts:


• "What are Inventory Codes?" on page 45

STEPS To define inventory codes


1. Access one of the following forms:
• Generic Names (IC08.1)
• Hazard Codes (IC09.1)
• Manufacturer Code (IC14.1)
• Reason Codes (IC17.1)
2. Define header information.
3. Type the code or name.
4. Define additional code information. Consider the following fields.
Code Field Description
Manufacturer code Division Indicates to which area
of the manufacturer
the item is tied.
Manufacturer code Labeler ID Code Indicates the
company’s Labeler
Identification Code.
Reason code Type Select None, Waste, or
Return to indicate the
class used in the Case
Carts application.

5. Choose the Add form action.

Related Reports and Inquiries


To Use
List generic names Generic Name Listing (IC208)
List hazard codes Hazard Code Listing (IC209)
List reason codes Reason Code Listing (IC217)

62 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


Loading UNSPSC Codes
If you use UNSPSC codes, this procedure explains how to load the UNSPSC
codes using a CSV file. The codes can be attached to the Item Master
records to create an item hierarchy. The UNSPSC code must be attached
to an item in the Item Master file to be active. This allows you to search on
categories in Lawson Requisitions Self-Service.
The CSV file needs to be placed in the following directory. Name the file
what you want. The layout is:
UNIX users: $LAWDIR/productline/interface directory
Windows NT users: %LAWDIR%\productline\interface directory\
System i users: LAWDIR/productline/interface directory
Field Max Size
SEGMENT 2
FAMILY 2
CLASS 2
COMMODITY 2
CODE-SDESC 20
CODE-LDESC 80

Need More Details? Check out the following concepts:


• "What are UNSPSC Codes?" on page 46

STEPS To load UNSPSC codes


1. Access Load UNSPSC Product Codes (IC516).
2. Enter the name of the file to be imported. If left blank, the default file
name of ICITEMCODECSV will be used.
3. Enter the item groups that the imported codes should be assigned to. The
process can be re-run for additional item groups.
4. Select Yes in the Report Only field to review what will be produced. No
records will be updated by selecting Yes. Select No if you want to update
without reviewing the report.

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 63


Adding UNSPSC Codes
If you use UNSPSC codes and need to add new ones, this procedure explains
how to add codes. You can also edit the existing codes from this form.
For more information about UNSPSC codes, see the Lawson Requisitions
Self-Service User Guide.

Need More Details? Check out the following concepts:


• "What are UNSPSC Codes?" on page 46

STEPS To add UNSPSC codes


1. Access UNSPSC Product Codes (IC16.1).
2. To add a new code, consider the following fields.
Item Group Select the item group you want the new code
added to.
Segment, Family, Enter the two-digit code for each level of the
Class, Commodity hierarchy.
Description Type the long description of the code.
Short Description Type a shortened version for the long description.
This is the description that will be seen on the
various forms that use UNSPSC codes.

3. Select the Add form action. Other available form actions are Change
and Delete.

64 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


Defining Keyword Searches
If you use Lawson Requisitions Self-Service and want to perform keyword
searches, this procedure explains how to set up Inventory Control keyword
searches and synonyms.

Need More Details? Check out the following concepts:


• "What are Keyword Searches?" on page 48

STEPS To define keyword searches


1. Access Corporate Item Group (IC00.1). Select Search to access Keyword
Search Setup (IC00.5).
2. Select Change in the FC field and select 1 in the Usage field if you want
to use them for keyword searches. Select Change.
3. Run Keyword Search Load (IC800). Select the item group and keyword
origin. Running IC800 will create keywords for existing data or you can
run the program to create keywords for the new origin for existing data.
The application will automatically create keywords if you do not have an
existing database, but have selected origins to be used before adding
items or related records. As you add records, IC800 will create keywords
for the origins that are used.
4. Access Keyword Synonym (IC32.1). Type the keyword and the synonyms
you want to attach to it. Type as many synonyms as you need for the
keyword.

Setting up Bins
If you use bins to organize your items, this procedure explains how to set up
those bins. For information on assigning items to bins, see "Setting up Item
Locations" on page 91.

Need More Details? Check out the following concepts:


• "What are Bins?" on page 39

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 65


Figure 8. Procedure flow: Setting up bins

1
Access Storage
Codes
(IC15.1)

2
- Conditional -
Define storage
codes
IC15.1

3
- Conditional -
Choose the Add
form action
IC15.1

4
Access Bins
(IC15.2)

5
Define header
information
IC15.2

6
Type bin code
IC15.2

7
- Conditional -
Select usage type
IC15.2

8
- Conditional -
Select storage
code
IC15.2

9
Choose the Add
form action
IC15.2

66 Chapter 3 Setting Up Inventory Control Inventory Control User Guide


STEPS To set up bins
1. Access Storage Codes (IC15.1).
2. If you want limitations on size, weight, or quantity for bins, define storage
codes.
3. Choose the Add form action.
4. Access Bins (IC15.2).
5. Define header information.
6. Type a bin code.
7. If you control the type of transactions for a bin, select a usage type in
the Type field.
8. If you limit the amount or size of items in a bin, select a storage code.
9. Choose the Add form action.
If you have ProcessFlow, a service is available for notification of an add
and deletion of bins. For information, see the ProcessFlow Reference
Guide.

Options for setting up bins


The following option is available for setting up bins. You can group bins
together to aid physical inventory. Use Bin Groups (IC15.3) to define a bin
group, or collection of bins. When you define a bin group, the application
assigns sequence numbers to the bins in the order you enter bins. When
you print count sheets to conduct physical inventory, the bins print in this
sequence.

Related Reports and Inquiries


To Use
List bins by bin storage code, bin, or Bin Listing (IC215)
bin groups

Inventory Control User Guide Chapter 3 Setting Up Inventory Control 67


68 Chapter 3 Setting Up Inventory Control Inventory Control User Guide
Chapter 4

Setting Up Item Master

This chapter focuses on setting up the item master file.

Inventory Control User Guide Chapter 4 Setting Up Item Master 69


Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 73. • "What is an Item Master?" on page 70
• "What is a Serial Number-tracked Item?" on page 70
• "What is a Lot-tracked Item?" on page 70
• "How do I define multiple Units of Measure for an item?" on page 71
• "What is Consignment Inventory?" on page 71
• "How do I determine if an item is purchased with tax?" on page 72

What is an Item Master?


An Item Master is a file which holds information about an item, regardless
of where that item is used. You assign item masters to an item group
so several companies can share an item, as long as they share an item
group. Information stored in the item master includes unit of measure and
packaging information. Items are then assigned to specific locations. For
more information, see "Setting Up Item Locations" on page 81.

What is a Serial Number-tracked Item?


A serial number-tracked item is an item that is tracked by a unique number.
For example, if a location issues five computer monitors, and each monitor
is serial number-tracked, then the issue must list all five serial numbers.
The issue cannot list only five monitors, but must denote which monitors
were issued. Typically, items are tracked by serial number if they are highly
valuable or if it is important to track individual items. For example, serial
number-tracked items might include refrigerators, computers, heart monitors,
cash registers, and so on.

What is a Lot-tracked Item?


Lot-tracked items are a group of items that are tracked by a unique number
called a lot number. For example, medications might be lot-tracked to denote
the date the items were received. In this example, if a defect is found in one
item in the lot, the entire lot can be tracked.

70 Chapter 4 Setting Up Item Master Inventory Control User Guide


How do I define multiple Units of Measure for an item?
You can define multiple units of measure for an item when you set up the item
master. You add parameters to each unit of measure which defines when you
can use each unit of measure. If you do not define multiple, or alternative,
units of measure, the stock unit of measure is the default for all transactions.
In the example below, the stock unit of measure is EA (each). An alternative
unit of measure, Case, is defined as 100 eaches. Inventory balances are
tracked only in EA. The 1 and 2 define which unit of measure is primary for
that function. The stock unit of measure is primary for transactions, sales, and
sales price. The alternative unit of measure is primary for the purchases
of the item.
Generally, if you purchase items in a unit of measure different than the UOM
you use to process or sell the item, then you assign a higher priority to
different units of measure. Although the higher priority UOM is the default,
you can change to the alternate UOM if it has the secondary priority. In the
example above, if the Buy field for EA was blank, you could only purchase
that item in Cases.

What is Consignment Inventory?


Consignment inventory refers to inventory items that are owned by one party,
but held by another. The owner agrees to bill the party holding the items when
those items are sold or used. As such, consignment inventory is not counted
as owned inventory. Because you do not own the consignment items, you
cannot transfer them to another location.
Typically, the consignment process consists of the following:
• Create a receipt transaction for the initial consignment item quantity
• Create a requisition for the consignment items
• Create and process the issue transactions
• Complete the replenishment process and create a purchase order for
the consignment items only
• Receive the replenished items (so the stock on hand goes back to the
agreed upon consignment level)
• Match the invoice for the replenishment purchase order and pay the
owner for the consignment items used
• Post inventory transactions to the General Ledger application
With consignment items, you need to set up general ledger categories by
location. For more information, see "Setting Up Consignment Items" on
page 78.

Example of Consignment Inventory


A hospital stores prosthetic limbs. Because these items are expensive, the
hospital does not pay for the items until they are used for a patient. Then the
vendor bills the hospital and replenishes the inventory.

Inventory Control User Guide Chapter 4 Setting Up Item Master 71


How do I determine if an item is purchased with tax?
You determine if an item is purchased with tax by entering tax defaults. You
can enter tax defaults, including tax status and tax code, for each inventory
and non-stock item in four places: item master file, item location file, purchase
order header, and purchase order line. The tax status indicates whether the
item is taxable. The tax code indicates the tax rate and the type of tax.
When you create a purchase order, the items are taxed according to the tax
status and the tax code associated with each item. You can apply a tax code
after you determine that the item is taxable.
When you enter tax information at the header level, the tax is applied to any
item on the purchase order that does not have a tax status and tax code
already associated with it; in other words, the tax default will only override
items with a blank tax code on the item master or item location files. For each
line of the purchase order, you have the option to enter an individual tax
status and tax code.
If a tax value exists on both the item master and item location files, the tax
defaults from the item location file. This enables you to regulate the tax status
according to its use at each location.

Example: Applying item tax


An organization uses ibuprofen for first aid kits in the administration office and
in the hospital. The item records for ibuprofen are set up in the following way:
Item Record Taxable Status
Item Master Record N - Non-taxable
Item Location - Admin. Office Y - Taxable
Item Location - Hospital N - Non-taxable

Purchase Order Taxable Status


PO Default Tax Y - Taxable
Item Tax Default

Usage
Given the situation above, you add a purchase order for ibuprofen for the
administration office. The result is that the ibuprofen is taxable on the
purchase order. The item is taxable because the Item Location record
for the administration office overrides the item master record. Using the
item tax option for the purchase order line, you can override this status
when creating a purchase order.

72 Chapter 4 Setting Up Item Master Inventory Control User Guide


Procedures in this Chapter
In this chapter, you will set up the item master for all inventory items and
assign values to item attributes.
• "Setting up the Item Master" on page 73
• "Setting Up Consignment Items" on page 78

Setting up the Item Master


The item master contains all of the items that you store in inventory locations.
This procedure explains how to set up the item master file.

Need More Details? Check out the following concepts:


• "What is an Item Master?" on page 70
• "What is a Lot-tracked Item?" on page 70
• "How do I define multiple Units of Measure for an item?" on page
71
• "What is a Unit of Measure?" on page 35
• "What are Inventory Classes?" on page 44
• "What are Inventory Codes?" on page 45
• "What are UNSPSC Codes?" on page 46
• "What are NDC Codes?" on page 47
• "What are UPN Codes?" on page 47
• "What are UPC Codes?" on page 46
• "What are SKU Codes?" on page 47
• "What is Catch Weight?" on page 108

STEPS To set up the item master


1. Access Item Master (IC11.1).
2. Select the item group.
3. Type the item number.
4. Type the item description.
5. On the Main tab, consider the following fields.
Stock Unit of Select the stock unit of measure for the item.
Measure

Inventory Control User Guide Chapter 4 Setting Up Item Master 73


Serial Tracking Decide if serial number tracking is required
for this item. If it is required, select one of the
following:
• Select Issues if serial number tracking is
required only at the time of issuing.
• Select Receipts if serial number tracking is
required when receiving the item (and for all
transactions after).
Lot Tracking Decide if lot tracking is required for this item. If it
is required, select one of the following:
• Select Receipts if lot tracking is required
when receiving the item.
• Select Issues if lot details are required at the
time of issuing.
Stock Weight If the item is bin-tracked and uses storage codes,
type the stock weight of the item.
Stock Cubic If the item is bin-tracked and uses storage codes,
type the stock cubic dimensions of the item.
Usage Identifier You can select the kind of inventory in the
Usage Identifier field (drugs, implant, instrument,
narcotic, pharmacy, reusable, or Analytics).
Commodity Code Select a commodity code to assign to the item.
The commodity code defaults to the requisition
or purchase order lines.
Commodity codes help to analyze spending.
They are used to classify products and services
and help create reports that reflect spending
patterns.
UPC Codes button Choose this button to add a Universal Product
Code (UPC) and tie it to an item number.
UPN1 Codes Choose this button to add a Universal Product
button Number (UPN) and tie it to an item.
UPN2 Codes Choose this button to add an additional Universal
button Product Number (UPN) and tie it to an item.
SKU Codes button Choose this button to enter the Stock Keeping
Unit (SKU) and tie it to an item.
NDC Codes button Choose this button to create a relationship
between a Lawson item identifier and the National
Drug Code (NDC) number.
Attributes button Choose this button to enter values for a
user-defined item attribute. You must have
already set up the attribute for an object type
of item (using Attribute (MX00.1). For more
information, see the chapter on Using Attribute
Matrix Attributes.

74 Chapter 4 Setting Up Item Master Inventory Control User Guide


6. On the Classes tab, add item classification information. Consider the
following fields.
Freight Class Select a freight class that you defined previously
using Freight Class (IC39.1). The Order Entry
application uses freight class to group items for its
Bill of Lading processing. For more information,
see the Lawson Distribution Management User
Guide.
Sales Class Select a major and minor sales class that you
defined previously using Sales Class (IC05.1).
Order Entry users must assign a major sales
class to each item for accounting purposes.
Inventory Class Select a major and minor inventory class that
you defined previously using Inventory Class
(IC06.1). Inventory classes can be used as
selection criteria for replenishment, physical
inventory, reports, and inquiries.
Purchasing Class Select a major and minor purchasing class that
you defined previously using Purchasing Class
(IC07.1). Purchasing classes limit the purchasing
power of a buyer and identify the items that can
be ordered in the Requisitions application.
Purchase Taxable Indicate whether the item is taxable when it is
purchased. You must select Yes if you specify a
purchase tax code.
Purchase Tax If the item is taxable when purchased, select a
Code valid tax code that you defined previously using
Tax Code Maintenance (TX02.1). For information
on tax codes, see the Tax User Guide.
Product Tax Select the product tax category to be able to
Category group specific items so that the group of items
can be taxed differently (for items that are taxed
in one state but not in another). For more
information, see the Tax User Guide.
ICN Code Select an Intrastat Classification Nomenclature
(ICN) code that you defined previously using ICN
and Unit of Measure Codes (IN03.1). ICN codes
classify a set of goods. For more information, see
the Intrastat User Guide.
Hazard Code Select a hazard code that you defined previously
using Hazard Codes (IC09.1). You assign hazard
codes to potentially dangerous inventory items.
Hazard codes and their descriptions print on the
receiving document and intransit shipping report.
Segment If you use UNSPSC codes, select a segment that
you defined previously using UNSPSC Product
Codes (IC16.1).

Inventory Control User Guide Chapter 4 Setting Up Item Master 75


Family If you use UNSPSC codes, select a family that
you defined previously using UNSPSC Product
Codes (IC16.1). This level can be zero if the
Class and Commodity fields are also zero.
Class If you use UNSPSC codes, select a class that
you defined previously using UNSPSC Product
Codes (IC16.1). This level can be zero if the
Commodity field is also zero.
Commodity If you use UNSPSC codes, select a commodity
that you defined previously using UNSPSC
Product Codes (IC16.1). This level can be zero.

7. On the UOM tab, add valid units of measure for the item. Consider the
following fields.
Secondary Unit of Select a secondary unit of measure that you
Measure defined using Corporate Item Group (IC00.1).
This unit of measure is used for catch weight
items.
Catch Weight Indicate whether the item is a catch weight item.
Code Catch weight items can be ordered in a different
unit of measure than the unit of measure in which
you sell them. Catch weight items are tracked in
two quantities and two units of measure, stock
and secondary.
• All (all transactions require both quantities)
• I (enter both quantities at issue)
• N (not a catch weight item)
• R (enter both quantities at receipt)
Variance For catch weight items, enter a variance
Percentage percentage. A warning message displays if the
stock and secondary quantities on a catch weight
transaction fall outside this variance percentage.
A variance percentage of zero defaults.
UOM Select the alternate unit of measure for the item.
Conversion Factor Type the conversion factor from the alternate unit
of measure to the stock unit of measure.
Tracked Indicate whether the item is to be tracked by the
alternate unit of measure.
Trans Indicate whether the alternate unit of measure is
valid for inventory transactions.
Sell Indicate whether the alternate unit of measure
is valid for the sell quantity in the Order Entry
application.
Sell Price Indicate whether the alternate unit of measure
is valid for the sell price in the Order Entry
application.

76 Chapter 4 Setting Up Item Master Inventory Control User Guide


Buy Indicate whether the alternate unit of measure is
valid for the buy quantity in the Purchase Order
application.

8. On the Packing tab, define packing weights and cubic dimensions for
each unit of measure. Consider the following fields.
Packing Weight Enter the packing weight of the item in the
alternate unit of measure.
Packing Cubic Enter the cubic measure of the packed alternate
unit of measure.
Broken Case Indicate whether there is a charge for breaking
Charge up a case in order to satisfy an Order Entry
customer order.

9. Choose the Accounts tab to select the default issue account and
subaccount for the item. Consider the following fields.
Issue Account Select the default issue account for the item (that
you defined previously using Chart of Accounts
(GL00.1)).
Issue Subaccount Select the default issue subaccount for the
item (that you defined previously using Chart of
Accounts (GL00.1)).

10. Choose the User Fields tab to add user-defined information for the item.
11. On the Sales tab, define the Order Entry setup values that you can assign
to an item. Consider the following fields.
Allow Returns Specify whether or not this item is allowed to be
returned in the Order Entry application. When
adding a new item and the field is left blank, other
programs interpret the value as Y (Yes). If the
item group to which this field is associated is set
to audit changes, any change to the value of field
prompts the system to audit the field.
Return Date If your billing company is setup to limit returns
by a specific date, type the date when return
authorizations cannot be generated. You cannot
generate return authorization on or after this day.
If the item group to which this field is associated
is set to audit changes, any change to the value
of field prompts the system to audit the field.

12. Choose the Add form action.


If you have ProcessFlow, a service is available for notification of an add,
change, and deletion of items. For information, see the ProcessFlow
Reference Guide.

Inventory Control User Guide Chapter 4 Setting Up Item Master 77


Options for Setting up Item Master
You can create a speed entry form to customize your item setup process.
When you create a speed entry form, you determine the fields that are
required and also the sequence of the fields that display on the form. The
speed entry form lets you enter item information and maintain item master
and item location files at one time.

Before you start Before you can create a speed entry form, you must load
the dictionary setup file. Run Dictionary Setup (IC180) to load fields used in
the Item Master and Item Location files.

STEPS To create a speed entry form


1. Access Item Formats (IC10.1).
2. Select the company.
3. Type the format code that is associated with the format you want to create.
4. Define the field sequence for this format.
5. Choose the Add form action.
6. Add items on the speed entry form, Item Master and Location (IC10.2).
Choose the Attributes button to enter values for a user-defined item
attribute. For more information, see the Using Attribute Matrix Attributes
chapter.

Setting Up Consignment Items


Consignment items are inventory items that are owned by one party, but
held by another. The owner agrees to invoice the party holding the items
when those items are sold or used. Perform the following procedure to define
consignment items.

Need More Details? Check out the following concepts:


• "What is Consignment Inventory?" on page 71

STEPS To set up consignment items


1. Access Item Master (IC11.1). Complete item setup, and on the Main tab,
select Yes in the Consignment field. Consignment items are not counted
as part of owned inventory. This value defaults to the Item Location
record.
- or -
Access Item Location (IC12.1). Complete the location-specific item setup,
and on the Main tab, select Yes in the Consignment field. At this location,
the item is defined as a consignment item.

78 Chapter 4 Setting Up Item Master Inventory Control User Guide


2. If you set up the consignment item at a location, you need to set some
additional options.
• On the Miscellaneous tab, select the consignment buyer that you
previously defined using Buyer (PO04.1), if you want to create
purchase orders for consignment items only.
• On the Reorder tab, select D (Difference Quantity) in the Reorder
Quantity Code as the method of determining the reorder quantity.
Selecting Difference Quantity means that the application orders the
difference between the available quantity and a specified reorder
point. In the Reorder Point field, enter the stock quantity that was
agreed upon by both parties.
• On the Source tab, select Yes in the Automatic Purchasing field. The
consignment item is to be ordered automatically for this location.
Choose the Replenishment button and add the primary replenishment
vendor.
3. Set up your general ledger categories by location using General Ledger
Category (IC04.1).
• The Inventory and Receipts accounts must be the same (optionally,
the Inventory, Receipts, and Adjustment accounts should all be the
same).
• The Inventory account should be set up as an individual asset
account, as there are credit balances sometimes.
• The Physical Inventory Variance account should be set up as a
consignment loss account (expense).
4. Enter a receipt transaction for the initial inventory balance and cost using
Receipts (IC20.1).

STEPS To adjust the stock level of consignment items


1. To lower the stock-on-hand quantity of consignment items, use
Adjustments (IC24.1). For more information, see "Adjusting Inventory
Quantities" on page 161.
2. To increase the stock-on-hand quantity, use Receipts (IC20.1). For more
information, see "Receiving Inventory" on page 151.

Inventory Control User Guide Chapter 4 Setting Up Item Master 79


80 Chapter 4 Setting Up Item Master Inventory Control User Guide
Chapter 5

Setting Up Item Locations

This chapter focuses on setting up item locations.

Before you start Before you use the procedures in this chapter, evaluate
your replenishment needs. Determine whether the demand for items is
predictable or whether your items should be replenished when quantity levels
drop to a certain quantity.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 81


Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 91. • "What is an Item Location?" on page 82
• "What is an Item Type?" on page 82
• "What is Stock-on-hand?" on page 83
• "What is a Bin-tracked Item?" on page 84
• "What is a Movement Class?" on page 84
• "What is a Reorder Policy?" on page 84
• "What is a Reorder Document?" on page 87
• "What is a Reorder Point?" on page 87
• "What is a Reorder Quantity?" on page 87
• "What is Item Forecast?" on page 89
• "How can I use the Replenishment Button?" on page 89
• "What are Associated Items?" on page 90

What is an Item Location?


The Item Location is a file of items that are stocked at a specific location. The
item location tracks item costs and quantities. Also, the item location records
defines if the item is tracked by bin and defines replenishment information for
the item. At least one item location record is required for each item master
record, if the item is a stock item and you track quantities.

What is an Item Type?


An item type is a classification for items that indicates how you order and
stock a particular item at your company. Every item that you purchase from a
vendor has an item type. There are four item types:
• Inventory (I-type items)
• Non-stock (N-type items)
• Special orders (X-type items)
• Services (S-type items)

Inventory Items
Inventory items are the items that you purchase and stock on a regular basis.
You can use the inventory item type to track cost and quantity. In order for
an item to be an Inventory item, the item must exist on both the item master
file and the item location file.

82 Chapter 5 Setting Up Item Locations Inventory Control User Guide


Non-stock Items
Non-stock items are materials that you order regularly but do not track for cost
and quantity. Although cost and quantity are not tracked, the items must
appear on the item master record.
NOTE You may want Special Order Items
to add non-stock items
at the item location (for
example, for tax code
purposes).
NOTE If you anticipate Special order items are materials that your company purchases on a one-time
that an item may be only basis. Special order items cannot be on the item master record.
ordered more than
once, you can enter it
as a non-stock item. Services
By doing this, you can
search for the item Service items are non-tangible service requests, such as carpet cleaning or
number on the item building repair. Service items cannot be on the item master record and are
master record.
not received.

Example of Item Type Usage


A hardware superstore buys and sells large quantities of hammers. They
have defined the hammers as inventory items in order to track inventory
quantities and costs.
The hardware superstore does not buy or sell ice picks as often as hammers,
so ice picks are set up as a non-stock item. They are not tracked for cost
and quantity.
All computers are classified as special order items because they are
purchased infrequently.
Copy machine repair requires that the superstore hire a repairman. This
order is classified as a service item.
You can use the Project Accounting application to track activities for
inventory type items upon receipt or issue of the items in the Inventory Control
application. However, activities are not attached to inventory accounts. For
more information about activity tracking, see the Project Accounting User
Guide.

What is Stock-on-hand?
Stock-on-hand (SOH) is the inventory (items and item quantities) that is
currently in stock at a location. The Inventory Control application updates
stock-on-hand information as inventory transactions occur at a location. The
Inventory Control application also manages the minimum and maximum
quantities that you stock in a location.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 83


What is a Bin-tracked Item?
A bin is a specifically defined area within a location. A bin-tracked item is
an item that is stored in a bin and tracked by the bin location. For more
information, see "What are Bins?" on page 39.

What happens when I change an item from bin-


tracked to no bin-tracking, or vice versa?
When you change an item from bin-tracked to no bin-tracking, all existing
bin detail records are deleted after a warning message displays. If the item
tracks lots, sublots, or serial numbers, the appropriate detail records are
summarized.
When you change an item from no bin-tracking to bin-tracked, you must
define the preferred bin field for the items you are changing. A bin detail
record is created with all the stock-on-hand quantity in the preferred bin. If the
item being changed tracks lots, sublots, or serial numbers, the preferred bin
number is added to all detail records. A comment displays and indicates that
all stock-on-hand is in the preferred bin.

What is a Movement Class?


A movement class is a way to categorize how fast you use an item. There are
three movement classes, class 1 is the for the fastest moving items - those
items with high turnover. Class 3 are the slowest moving items. You define
the movement class for each item at the item location level.

What is a Reorder Policy?


The reorder policy is the method you use to determine the most efficient way
to order inventory for your company.

Fixed Order Point


Fixed order point (FOP) is a replenishment method that automatically orders
items when the available quantity falls below a set reorder point. With this
method, each item is assigned its own reorder point.
For example, if an item is assigned a reorder point of 50, the Inventory Control
application automatically places an order for this item when its available
quantity falls below 50. The application automatically determines what
quantity to reorder based on the reorder quantity code set for the item.

Time-Phased Order Point


Time-phased ordering (TPO) is a replenishment method that calculates the
reorder point based on supply and demand.

84 Chapter 5 Setting Up Item Locations Inventory Control User Guide


TPO enables you to analyze fluctuations in demand and then plan future
orders based on past ordering trends. For example, you may notice that an
item, such as facial tissue, has a seasonal trend. During the flu season, you
may need to order more boxes of tissues than you do in non-flu seasons.
You can use TPO to replenish inventory based on projected item availability
by periods. TPO normally applies to items with long leadtimes. You can
plan orders for up to 52 periods. The application calculates projected item
availability as follows:
Projected Item Availability = Stock-on-hand Quantity - (Firm Demand +
Remaining Forecasts) + Scheduled Receipts
The application calculates replenishment orders when the projected available
quantity falls below the safety stock quantity. The following example shows
how the application calculates item availability. For the first period, the
projected availability is 61 = (94 - 23 - 60 + 50). Because the safety stock is
40, the application creates an order quantity of 100.

Setting up a Reorder Policy


You begin your reorder policy setup process by deciding whether to use Fixed
Order Point (FOP) or Time-phased Order (TPO). When you are ready to set
up the reorder policy, refer to the following chart. The chart visually explains

Inventory Control User Guide Chapter 5 Setting Up Item Locations 85


the process of defining replenishment information for each item and shows
the part that each replenishment concept plays in your setup decisions.
Figure 9. Concept flow: Reorder policy job aid

How will you


replenish your
item?
Fixed Order Point

Time Phased Order Point


Select reorder
document

Select reorder Select reorder


point code document

Variable reorder
Fixed reorder point Type safety stock
point

Type reorder point

Select reorder
quantity code

Fixed reorder Difference reorder Maximum reorder Economic Order


quantity quantity quantity Quantity

Run EOQ and


If you do not have
Type reorder Type maximum Reorder
a reorder point,
quantity order quantity Calculation
type reorder point
(IC120)

86 Chapter 5 Setting Up Item Locations Inventory Control User Guide


What is a Reorder Document?
A reorder document is used to complete an inventory transaction such as a
transfer, issue, requisition, or purchase order. The source from which you
receive inventory determines the reorder document used to replenish an
inventory location.
For example, you would use a transfer transaction, or reorder document, to
replenish an inventory item from one stocking location to another.

What is a Reorder Point?


A reorder point (ROP) is the item quantity that triggers the reorder process to
begin. When the item quantity drops below the reorder point that you set, the
Inventory Control application processes the reorder for that item.
You can calculate the reorder point using the following formula:
(annual usage x leadtime days) divided by 365 plus the safety stock quantity
The reorder point is a component in the automatic purchasing process.

What is a Reorder Quantity?


During item location setup, you enter reorder information for inventory items
at a specific location. Two options you decide are the reorder policy and the
quantity to be reordered, and how that quantity is to be determined. The
reorder policy tells the application when reordering occurs, and the reorder
quantity code tells the application how to determine the reorder quantity. The
reorder quantity codes are explained in the following table.
Reorder Quantity Code Description
Fixed Reorder Quantity Orders the fixed quantity that you enter.
Difference Quantity Orders the difference between a reorder point
that you enter and the available quantity.
Maximum Orders the difference between the available
quantity and a maximum order quantity that
you enter.
Economic Order Quantity Orders the quantity that is determined by the
Economic Order Quantity (EOQ) calculation.

Fixed Reorder Quantity Code


An example of fixed reorder quantity code is an office using toner for the
copier machine. You define a fixed quantity code of three toner cartridges.
Every time the stock-on-hand reaches a reorder point of one, a requisitions is
created to order three more cartridges.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 87


Difference Quantity Code
With the difference quantity code, an example could be that the same office
maintains a certain level of copier paper. Every time the office falls below
a reorder point of six boxes of paper, a requisition is created to maintain
stock-on-hand of six. For example, if the supply reaches four boxes, two
boxes are order to reach six. The next week, supply drops down to three
boxes and three more are ordered to reach full inventory.

Maximum Code
An example of the maximum code is an inventory manager at a large machine
manufacturer replenishing steel and controlling the quantity of steel purchased
at any given time. The manager defines a reorder point and a maximum order
point. If the reorder point is 20 and the maximum order is 100, when the
stock-on-hand falls to 12 a reorder document is created to purchase 88, the
difference between the stock-on-hand and the maximum order.

Economic Order Quantity (EOQ) Code


One example of the Economic Order Quantity code is refrigerators at a large
appliance wholesaler that are expensive to stock, but relatively inexpensive to
order. The Economic Order Quantity calculation provides the application with
an optimal stock-on-hand quantity for refrigerators. The quantity suggested is
low because the formula considers that it is less expensive to frequently order
small quantities of refrigerators than to stock large quantities.
With a reorder quantity code of E (Economic Order Quantity), the method of
reordering items is most cost effective. The Economic Order Quantity code
uses a calculation to balance the cost of ordering against the cost of stocking
an inventory item. To use the Economic Order Quantity code, you must
choose automatic purchasing for the item location. (The code is available with
either of the reorder policies, Fixed Order Point or Time-Phased Order Point.)
The Economic Order Quantity is the quantity needed on a purchase order
when the stock-on-hand for an item falls below the reorder point set at the
item location. You can enter the Economic Order Quantity manually or run
a batch program to perform the calculation, Economic Order Quantity and
Reorder Calculation (IC120). The Economic Order Quantity calculation uses
the following formula:
EOQ = square root of [(2 times the annual demand quantity times the fixed
order preparation cost) divided by (the carrying item unit cost)]

IMPORTANT The calculation provided by the EOQ formula ONLY replaces


the reorder point for an item if you define EOQ as the reorder quantity code
and update the reorder point when you run Economic Order Quantity and
Reorder Calculation (IC120).

88 Chapter 5 Setting Up Item Locations Inventory Control User Guide


Some considerations to note about the formula:
• The annual demand quantity is the item quantity you expect to have in the
warehouse over a year’s time. In other words, the quantity that comes
into the warehouse while the item continues to be consumed from its
location. The quantity can come from past demand, from past demand
with this year’s expected demand, or from firm orders. Be aware that the
annual demand quantity and the carrying item unit cost need to be in
the same unit of measure.
• The fixed order preparation cost is the cost that does not change with an
order’s size. For example, such costs could include order research and
administration, forms for picking and shipping, and prorated maintenance
fees for software and hardware. The possible sources for these fixed
costs are labor figures (from Lawson Human Resources) and general
ledger accounts. Variable costs, such as the cost of picking, packing, and
shipping, should not be included.
• The carrying item unit cost represents the cost of doing business: paying
for rent and insurance, utilities, spoilage, and so on. Together, these costs
are what’s needed to be able to stock the items at the warehouse.

What is Item Forecast?


Item forecasting is the process of analyzing past ordering activity for an item
in order to predict the future ordering demand for that item. You can then plan
your ordering strategy accordingly.

How can I use the Replenishment Button?


You can use the Replenishment button to define a list of locations that
replenish a specific item. You rank the locations by order of replenishment
priority. When a location needs to replenish an item, the Inventory Control
application selects the location with the highest priority.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 89


What are Associated Items?
Associated items are either substitute or complimentary items.

Substitute items
Substitute items are items which you can choose to substitute for another
item. For example, you can define blue mugs as substitute items for yellow
mugs. Then, if you are out of yellow mugs, the application asks you if you
want to substitute blue mugs. This way, the item substitute is not automatic,
and gives you a choice.
You can assign more than one substitute item per item master.

Complementary items
Complementary items are items that go well with, or “complement”, an item
already on a customer order. Complementary items are used in Order Entry
and give you the opportunity to offer customers items that will go well with
items already in their order. For example, if a customer orders a kit for a model
airplane, a complementary item might include modeler’s glue. If an item has
a complement assigned to it, you are prompted to suggest the item to your
customer. This lets you define upsale opportunities for your sales people.

90 Chapter 5 Setting Up Item Locations Inventory Control User Guide


Procedures in this Chapter
In this chapter, you will set up item locations for all inventory items. You can
then define associated items.
• "Setting up Item Locations" on page 91
• "Defining Associated Items" on page 100
• "Mass Updating Items" on page 100
• "Defining Item Comments" on page 103

Setting up Item Locations


This procedure explains how to set up an item location file.

Need More Details? Check out the following concepts:


• "What is an Item Location?" on page 82
• "What is an Item Type?" on page 82
• "What is a Bin-tracked Item?" on page 84
• "What is a Reorder Policy?" on page 84
• "What is a Reorder Document?" on page 87
• "What is a Reorder Point?" on page 87
• "What is a Reorder Quantity?" on page 87
• "What is Item Forecast?" on page 89

STEPS To set up item locations


1. Access Item Location (IC12.1).
2. Define header information.
3. On the Main tab, select a general ledger category and consider the
following fields.
Inventory This is a flag that indicates whether stock-on-hand
Tracking and related quantities for this item will be kept.
This flag also works in conjunction with the
tracking flag on the item Unit-of-measure
Tab of the Item form to determine which
units-of-measure are individually quantity
tracking.
Allow Receipts Select a value indicating whether you want to
allow item receipts at this location.
Select No if you do not want to allow item receipts
at this location. If you select No, you cannot
receive in Receipts (IC20.1) or create purchase
orders in Purchase Order.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 91


Allow Issues Select a value indicating whether to allow issues.
Select No to prevent item issues at this location.
Patient Select a value indicating whether this item is
Chargeable chargeable to a patient. Select Yes to charge this
item to a patient when issued to a patient in a
healthcare environment.
Serial Tracking Select a value indicating whether serial number
tracking is required. If it is required, indicate when
you want to capture the item’s serial number.
If the item is not serial number tracked, select No.
If the serial number is only required at the time
of issuing, select Issues. If the serial number is
required at the time of receiving the item and for
all transactions after, select Receipts.
Status Select a value indicating the item’s status at this
location.
If you change the status to Inactive, you cannot
add new transactions for this item at this location.
Date Added Type the date the item was added to the Item
Location file. If left blank, this field defaults to the
current system date.
Consignment The flag designates that this item is a
consignment item at this location. Consignment
items are not part of the owned inventory.
If the item is part of consignment inventory at this
location, select Yes in the Consignment field.

NOTE If you previously identified an item as


consignment using Item Master (IC11.1), that
value for the item defaults here.

No Charge If the item is a no-charge item, select Yes in the


No Charge field (default is No). With this field,
you can define an item for inventory processing
and purchasing for zero cost. The item appears
on purchase orders and requisitions as being
free (no cost). You can change an item’s charge
status as long as no stock-on-hand exists at the
location.

92 Chapter 5 Setting Up Item Locations Inventory Control User Guide


Lot Tracking Select a value indicating whether lot tracking
is required (defaults to No). If the lot number
is required only at the time of issuing, select
Issues. If the lot number is required at the time of
receiving the item and for all transactions after,
select Receipts.
You can select only one other tracking method
(serial number or lot) in addition to inventory and
bin tracking.

NOTE The values for lot tracking and serial


number tracking default from the item master, but
you change them for a specific item location.

Bin Tracking Select a value indicating whether to define bin


tracking for the item.
Select Yes to define bin tracking for the item. You
can assign a preferred bin and storage code to
bin-tracked items.
Preferred Bin If the Bin Tracking flag is Yes, you can select a
value indicating a preferred bin. The preferred
bin is used as the default bin when you process
item transactions.
Storage Code If the Bin Tracking flag is Yes, you can select
a value indicating a bin storage code. Storage
codes, defined in Storage Codes (IC15.1), define
bin limitations.
Purchase Taxable Select Yes to indicate that tax is added to the
item at the time of purchase at this location. If
this field is left blank, the default value is defined
on the purchase order: Item Master (IC11.1).
Purchase Tax Select a value indicating a tax code if the item is
Code taxable. Tax codes and tables are set up in Tax.
The purchasing tax code can be specified in Item
Master (IC11.1). This field indicates the tax table
from which to extract tax data. This field defaults
to the tax code defined in Item Master (IC11.1)
and can be overridden for this location.
Sell Taxable Select a value indicating whether item sales are
taxable.
Select Yes if item sales are taxable. This field
defaults to No (not taxable).
Sell Tax Code Select a value indicating a sell tax code. Tax
codes are defined in Tax. The sell tax code
determines the tax table from which to extract
tax data.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 93


4. On the Miscellaneous tab, define miscellaneous information about the
item such as MSDS or whether inspection is required. Consider the
following fields.
Buyer Select a value indicating a buyer code defined in
Buyer (PO04.1). The buyer code represents the
person responsible for maintaining item stock at
this location.
You can print theInventory Reorder Advice
(IC225) for a single buyer or in buyer sequence.
This report lists any item that has an available
quantity less than the reorder point defined in
Item Location (IC12.1).
Movement Class Select a value indicating the item’s movement
class. Movement classes define item use by
volume. You can select items for count by
movement class in Select Ids (IC70.1). Typically,
items assigned to Movement Class 1 are
controlled more tightly than items assigned to
Movement Classes 2 and 3. You can analyze
items by movement class on several reports.
Inspection Select a value indicating whether inspection
Required is required. Defaults to No. Inspection is not
required.
Select Yes if the item requires a receipt inspection
at this location. If required, the system prints a
message to indicate the requirement. It prints the
message on the Receiving Document (PO130)
when the item is received on a purchase order
in Purchase Order.
Forecast Number Select a value indicating the item’s forecast
number defined in Forecasts (IC19.1). You can
print item forecasts in Forecast Listing (IC219).
Special Cycle Type the value X in this field if the item requires
Count a special user-defined physical inventory cycle
count. For example, you may want to count
a certain group of items every 15 days. Items
flagged for special cycle counts can be selected
in Select Ids (IC70.1).
Date Type the date on which a Material Safety Data
Sheet (MSDS) must be received from the item’s
vendor. This date is updated and calculated one
year after the last MSDS is received in Purchase
Order. This date is used if the MSDS Required
flag is Yes in Item Master (IC11.1).
Document Type the document number from the most recent
MSDS that was received.

94 Chapter 5 Setting Up Item Locations Inventory Control User Guide


Version Type the version number of the most recent
MSDS that was received.

5. On the Reorder tab, define the item reorder information. Consider the
following fields.

NOTE If you replenish


Reorder Policy Select a value indicating the method of
an item from another bin,
use Bin Reorder Policy reordering.
(IC38.1) to define the bin
reorder information. Fixed Order Point (FOP) replenishes inventory
when an item’s available quantity falls below a
reorder point.
Reorder Select a value indicating the manner in which
Document this item is reordered. Before you Finished Good
Replenishment (IC143), select W for "work order."
Reorder Point Select a value indicating how the reorder point
Code quantity is determined. This field is used only
if the Reorder Policy field is FOP (Fixed Order
Point).
Reorder Point Type a reorder point if you selected Fixed
Reorder Point in the Reorder Point Code field.
Transaction If the unit of measure differs from the unit of
Default UOM measure in which the item is stocked, type the
transaction unit of measure. This unit of measure
is for transactions that do not produce a purchase
order. For those transactions that do produce a
purchase order, a buy unit of measure is used.
Source UOM Type a valid unit of measure for which to display
quantities. If left blank, this form uses the item’s
stock unit of measure.
Reorder Quantity Select a value indicating how to determine the
Code quantity ordered.
F (Fixed Reorder Quantity) orders a fixed quantity
that you specify.
E (Economic Order Quantity) balances the cost
of ordering against the cost of stocking an item.
This quantity is calculated by Economic Order
Quantity and Reorder Calculation (IC120).
D (Difference Quantity) orders the difference
between the available quantity and a specified
reorder point.
M (Maximum) orders the difference between the
available quantity and a maximum order quantity.
Reorder Quantity Type the reorder quantity if you selected the
Fixed Reorder Quantity in the Reorder Quantity
Code field.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 95


Order Multiple Type the order multiple. The reorder quantity
should be a multiple of this quantity.
Maximum Order Type the maximum order quantity.
Minimum Order Type the minimum order quantity.
Safety Stock Type the quantity of stock that you always want
on hand. Use this field with the TPO reorder
policy.
Economic Order Type the EOQ (Economic Order Quantity). To
Quantity have the system make this calculation, select
Yes in the EOQ Update field of Economic Order
Quantity and Reorder Calculation (IC120). This is
a calculation that checks the cost of carrying the
item in inventory to determine the ideal quantity
to be ordered.

6. On the Source tab, define where you will replenish your goods from.
Consider the following options.

Replenishment Define multiple sources of replenishment and


button assign each a priority.
Manufacturer Select a value indicating the code defined in
Information Manufacturer Code (IC14.1) for the manufacturer
of an item.
In the second field box, type the user-defined
code indicating which division of a manufacturer
is tied to an item.
Type the identifier that the manufacturer has
assigned to an item in the third field box.
Automatic Select Y (Yes) if you want a purchase order
Purchasing automatically created to replenish this item.
Receiving Days Define the number of days to it takes to process
receivings until they are ready for shipment.
Average Type the average leadtime days. This value is
the average of the last and previous leadtime
days if this field is system calculated.
Control Select a value indicating the code that determines
how the leadtime number of days is maintained.

7. On the Costs tab, define the costs associated with the item. Consider
the following fields.
Standard Cost Enter the standard cost for the item, if you
selected the Standard Costing method when
setting up your company in Company (IC01.1).
Future Standard Enter the future standard cost for the item, which
Cost can replace the standard cost at this location by
running Standard Cost Valuation (IC125).

96 Chapter 5 Setting Up Item Locations Inventory Control User Guide


Market Price Enter the price that the item goes for on the open
market, or the price that a purchaser is willing to
pay for the item (without add-on costs or taxes).
Overhead Cost Enter the overhead cost associated with the
item, such as renting storage space, insurance,
and warehouse utilities. Overhead costs can
be prorated for a range of items or specifically
assigned to one item.

8. On the Sales tab, define the Order Entry setup values that you can assign
to an item at an inventory location. Consider the following fields.
Minimum Quantity Enter the minimum quantity in the stock unit of
measure that can be entered on an order line for
this item location.
Maximum Enter the maximum quantity in the stock unit of
Quantity measure that can be entered on an order line for
this item location.
Create PO Indicate if all order lines for this item location are
to create purchase orders.
Select Yes to have order lines added for this item
at this location added as non-inventoried items.
Select No to have no value default to the order.
Drop Ship Indicate whether all order lines for this item
location are to be flagged as drop ship orders.
You must set the Create PO field to Yes to enable
this option. Select No to have no value default
to the order.
Allow Returns Specify whether or not this item is allowed to be
returned in the Order Entry application. When
adding a new item location and the field is left
blank, other programs interpret the value as Y
(Yes). If the item group to which this field is
associated is set to audit changes, any change
to the value of field prompts the system to audit
the field.
Return Date If your billing company is setup to limit return
days by a specific date, type the date when return
authorizations cannot be generated. You cannot
generate return authorization on or after this day.
If the item group to which this field is associated
is set to audit changes, any change to the value
of field prompts the system to audit the field.

9. On the User Fields tab, add user-defined information for the item.
10. Choose the Add form action.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 97


If you have ProcessFlow, a service is available for notification of an
add, change, and deletion of item locations. For information, see the
ProcessFlow Reference Guide.

Options for Setting Up Item Location


You can create a speed entry form to customize your item setup process.
You determine what fields are required and also the sequence that fields
display on the form.

Before you start Before you create a speed entry form, you must load
the dictionary setup file. Run Dictionary Setup (IC180) to load all fields used
in the Inventory Control application.

STEPS To create a speed entry form


1. Access Item Formats (IC10.1).
2. Select a company.
3. Define the format.
4. Choose the Add form action.

98 Chapter 5 Setting Up Item Locations Inventory Control User Guide


NOTE You can use 5. Access Item Master and Location (IC10.2) to add items to the speed
Item Master and entry form.
Location (IC10.2) to type
item information and
maintain item master Related Reports and Inquiries
and item location files
simultaneously. To Use
Display item balances at a specific Item Location Balances (IC31)
location
Inquire on item availability by location Availability by Location (IC40)
to display stock-on-hand, demand,
supply and intransit quantities
List item quantities within a bin by Items Within a Bin (IC41)
location
Display items by bin usage type for Bin Type Inquiry (IC43)
a location
Compare bin storage limitations to Available Bin Space (IC51)
item storage requirements
Print stock-on-hand quantities by Bin Stock on Hand Report (IC238)
location for a bin
Calculate reorder point for items Economic Order Quantity and
Reorder Calculation (IC120)
Create a custom inquiry form Inquiry Formats (IC35)
Inquire on items using formats you User Defined Item Inquiry (IC36)
defined
View the status of stock at a Inventory Stock Status (IC44)
particular location, or group of
locations from one screen
View the stock on hand at a Inventory Status (IC46)
Company level, Report Group level,
or Location level
Print the accumulated inventory Transactions by Document Type
transaction amounts for a specified (IC287)
company, location, report group,
groups of document type, or group
of items.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 99


Defining Associated Items
You can define associated items, including either substitute or complementary
items. This procedure explains how to set up associated items.

Before you start Before you can define associated items, you must define
the Item Master and Item Location files.

Need More Details? Check out the following concepts:


• "What are Associated Items?" on page 90

STEPS To define associated items


1. Access Associated Items (IC13.1).
2. Define header information. Consider the following fields.
Associated Item Indicate the item type for the associated item
Type (complementary or substitute).

3. Select the items to associate with the item in the header.


4. Choose the Add form action.

Mass Updating Items


Making mass changes to items is possible by running a batch program, Item
Mass Change (IC330), regardless of whether you set up items via the Item
Master or Item Location. Changes are made at the item group or company
level, and the location or report group level. Leaving these fields blank means
that all are reported on.
You enter up to three statements, indicating the group of item records that
require change. You select:
• a range of fields
• greater than
• less than
• equal to
Making mass changes for the same item across locations saves time and
reduces the possibility for error. The changes have no effective date, they are
processed immediately. Each mass change affects one field only. IC330 is
also used for making mass changes to vendor and replenish from locations
and alternate units of measure.
Be aware that running IC330 does not update items at a par location. For
more information, see "Mass Updating Cart/Par Locations" on page 200.

100 Chapter 5 Setting Up Item Locations Inventory Control User Guide


NOTE Lawson recommends that you run IC330 in Report Only mode first,
review the results, then run it in Report and Update mode.

STEPS To make mass changes to items


1. Access Item Mass Change (IC330).
2. On the Select Statement(s) tab, select the group of item records to be
changed. Consider the following fields.
Select Field Select an Item Master or Item Location field. The
applicable table, field type and size, and number
of decimals display.

NOTE You can use Item Master fields to define


a change for an Item Location field, but not vice
versa.

Range Value 1 Enter the beginning range value.


Operator Select an arithmetic operator for the range (equal
to, greater than, greater than or equal to, less
than, less than or equal to, not equal, and so on).
Range Value 2 Enter the ending range value.

3. On the Change Field tab, indicate the Item Master or Item Location field
whose value you want to change for the item. Consider the following
fields.
Change Field Select the Item Master or Item Location field to
be changed for the item.
New Alpha Value If the value being changed is alphanumeric, enter
the new value for the field.
New Amount If the value being changed is an amount, enter
Value the new amount for the field.
Change If the value being changed is a percentage, enter
Percentage the new percentage for the field.
Increase or Indicate whether to increase or decrease by
Decrease percentage.
Change Value Enter the value to be changed.
Increase or Indicate whether to increase or decrease by
Decrease value.
Change Field to a Select Yes to change the field to spaces (if the
Null Value field is numeric) or zeroes (if the field is alpha).

Inventory Control User Guide Chapter 5 Setting Up Item Locations 101


4. On the Main tab, indicate the item and whether the report is in Report and
Update or Report Only mode. Consider the following fields.
Item Group or Select the item group or company to be affected
Company by the mass item change. You define item
groups using Corporate Item Group (IC00.1) and
companies using Company (IC01.1).
Location or Select the item location or report group to be
Report Group affected by the mass item change. You define
locations using Item Location (IC12.1) and report
groups using Report Group (IC03.1).
Item Select the item to be changed.
Report Only Indicate whether to report and update the item
records, or report only.

5. Optional. Use the Item Source tab to change the vendor and
purchase-from location, or the replenishment information (replenish from
company, location, or bin).
6. Optional. Choose the UOM tab to change an item’s alternate unit of
measure. Consider the following fields.
From Alternative Select the alternate unit of measure to be
UOM changed for the item.
To Alternative Select the new alternate unit of measure to be
UOM used for the item.

102 Chapter 5 Setting Up Item Locations Inventory Control User Guide


Defining Item Comments
Adding comments to items lets you keep important information with the item
record itself. Each comment can include up to 99 lines of text, and the
comments print on the following:
• Item Master Listing (IC210)
• Item Location Listing (IC211)
• Intransit Shipping (IC110)
The comments you add are used in the Purchase Order, Order Entry, and
Production Order applications also. Before you add comments to items, you
must have set up the item, item group, and item comment type.

Need More Details? Check out the following concepts:


• "What is an Item Group?" on page 34
• "What are Comment Types?" on page 35

STEPS To define item comments


1. Access Item Comments (IC18.1).
2. Select the item, item group, and create comment text. Consider the
following fields.
Item Group Select the item group to which the item belongs.
Item Select the item that you want to add comments
for.
Language Code Select the language in which the comment text is
to be written. The locale must already be defined.
Type Select the item comment type for the comment.
Beginning Date Enter the beginning date for the comment to print
on reports. When printing a report, if that date is
greater than this beginning date and before the
end date, the comments print.
End Date Enter the ending date for the comment to print
on reports. When printing a report, if that date is
greater than this beginning date and before the
end date, the comments print.
Add Comments Choose the Add Comments button and enter the
button comment text.

3. Select the Add form action.

Inventory Control User Guide Chapter 5 Setting Up Item Locations 103


104 Chapter 5 Setting Up Item Locations Inventory Control User Guide
Chapter 6

Conducting Physical Inventory

This chapter focuses on the process you must follow to conduct a physical
inventory assessment at your stock locations. A physical inventory
assessment enables you to accurately record stock-on-hand quantities and
efficiently track costs by location in the Inventory Control application.

Before you start Before you can conduct a physical inventory assessment,
you must set up at least one inventory location and report group.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 105


Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 110. • "What Defines Physical Inventory?" on page 106
• "What is a Select ID?" on page 106
• "What is Cycle Counting?" on page 107
• "What is a Freeze File?" on page 108
• "What is a Count Sheet?" on page 108
• "What is Catch Weight?" on page 108
• "What is a Count Variance?" on page 109
• "What is a Reason Code?" on page 109

What Defines Physical Inventory?


Physical inventory is the actual item quantity that is currently in stock at a
location.
During a physical inventory assessment, you manually count all of the items in
your location and then enter the values into the Inventory Control application.
In addition to the stock-on-hand quantities, you can include on-order items in
your physical inventory assessments.

What is a Select ID?


A select ID (selection identifier) is a selection of inventory items that you want
to count for a specific inventory purpose. You can have multiple select IDs
that are used for different kinds of inventory assessments.
If you want to conduct a complete inventory assessment, you can select every
item at a location to be counted under a single select ID. You can also define
a select ID that identifies items to count for a particular bin group or movement
class. Conversely, select IDs can be set up to not require the entry of counts,
items with zero stock-on-hand quantities, and items with no unit cost.
Other reasons to define a select ID are to:
• Select items with a high turnover rate
• Select a count accuracy less than a specified percentage
• Select items not counted in a specified number of days (cycle counts)
Item counts are updated to inventory when you run Update Variances (IC175)
in update mode.

How do I count only one or two items during a


physical inventory?
The best way to update stock-on-hand quantities for just one or two items is
to use Adjustments (IC24.1).

106 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Inventory adjustments represent transactions that cannot be classified as
issues, receipts, or transfers. For example, returns, salvage, miscounts, theft,
damaged goods, and so on.
You can select individual items to count when you create the select ID;
however, these items are included with other selected items based on
selection criteria.

What is the recount option?


You can select items for counting by the number of transactions created
since the items were counted last. When you manually enter the number
of transactions since the last count, items with more transactions than this
number are frozen.

How do I select counts by movement class?


Up to three movement classes are available for counting selection, plus a
special movement class. Within each movement class, you decide whether
to include items:
• with an accuracy less than a percentage that you specify
• not counted for a specified number of days
• maximum number of items to count
You must assign the movement class to the item location before the physical
count begins.

What is Cycle Counting?


Cycle counting is the process of counting inventory items throughout the
year on a schedule, so that all items are counted at least once a year. The
main focus is on items that move frequently, with less attention given to items
that move less frequently. The cycle counting process is efficient, because it
lets you break up inventory, so you do not have to do a complete physical
inventory all at one time.
In addition, the process uses employees who are familiar with the inventory
and warehouse locations, and helps to uncover any processes that can
produce inventory inaccuracies.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 107


What is a Freeze File?
NOTE You use select A freeze file is a “snapshot” of current item records for a select ID that you
IDs to create freeze defined using Select IDs (IC70.1).
files that contain specific
items. You can use the “snapshot” to compare the inventory quantities that you have
in stock with the inventory quantities that are recorded in the Inventory Control
application. It is important to remember that if items are issued while you are
counting the inventory balances, you need to take that issue into account so
that your end item count is accurate.
You must delete freeze records before you can use the select ID again for
another physical inventory count.

What is a Count Sheet?


A count sheet is a printed list of the items that you need to count for a specific
select ID, for recording purposes. Before you can print count sheets, you
must first create a freeze file.
There are three ways to enter item counts:
• by page for a select ID (page numbers and line numbers are defined
when you create a freeze file for a select ID)
• by item count detail for a select ID (such as the secondary unit of measure
count and freeze quantity for catch weight items)
• by random count (to add item records that were missed by the selection
criteria set up for a select ID)

What is Catch Weight?


Catch weight allows you to order an item in a different unit of measure (UOM)
that the UOM you sell or dispense the item in. The price you pay when you
purchase the item is based on weight, but the weight per each unit may vary.
For example, you can buy cheese by the block at the grocery store but you
pay for it by the pound. The unit is essentially delivered by a description
and priced by weight.

108 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


What is a Count Variance?
A count variance is a difference between reported numbers in the freeze file
and the numbers attained from the physical inventory assessment.
You can specify count variances that are acceptable for your inventory location
by determining a count accuracy percentage. The formula by which the
Inventory Control application calculates the accuracy percentage is as follows:
the number of items with a variance divided by the number of items counted.
Count variances need to be updated to the Inventory Control application after
you conduct the physical inventory count. Either before or after you update
count variances, you must explain them. You can generate a count variance
listing to explain variances by reason code.

What is a Reason Code?


A reason code is code that explains a variance between the physical inventory
level and the inventory level recorded in the Inventory Control application.
You define reason codes when you set up the inventory company. Examples
of reason codes may be a broken item, water damage, or an undocumented
return.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 109


Procedures in this Chapter
To conduct physical inventory within the Inventory Control application, use
one of the following procedures.
• "Defining a Select ID" on page 110
• "Creating Freeze Files" on page 113
• "Printing Count Sheets" on page 113
• "Entering Counts" on page 115
• "Inquiring on Inventory Variances" on page 119
• "Adjusting Count Variances" on page 121
• "Updating Inventory Counts" on page 126
• "Explaining Count Variances" on page 128
• "Deleting Freeze Records" on page 130

Defining a Select ID
Define select IDs to identify which items to count during a physical inventory
assessment. You can define multiple select IDs which identify unique item
combinations in order to perform different kinds of inventory assessments.

Before you start Before you use the select ID for physical inventory, make
sure that previous freeze records have been deleted. For more information,
see "Deleting Freeze Records" on page 130.

110 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What Defines Physical Inventory?" on page 106
• "What is a Select ID?" on page 106
• "What is Cycle Counting?" on page 107
Figure 10. Procedure flow: Defining a select ID

1
Access
Select IDs
( IC70.1)

2
Define Select ID
IC70.1

3
-Conditional-
Define classes or
bin groups
IC70.1

4
-Optional-
Specify selection
criteria
IC70.1

5
-Optional-
Determine items to
count
IC70.1

6
Add the select ID
IC70.1

STEPS To define a select ID


1. Access Select IDs (IC70.1).
2. Define your select ID. Consider the following fields.
Page Totals Select Yes in this field to require that page totals
Required When be included when entering counts. When this
Entering Counts field is set to Yes, you enable the application to
verify the page totals entered to avoid error.

3. If you conduct inventory assessments for inventory classes or bin groups,


choose the Class, Bin tab to define select IDs for inventory classes or
bin groups.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 111


4. To make general and movement class selections, choose the Logic tab.
Consider the following fields.
Movement Class This section lets you do cycle counts by item
Selections class (you assign classes to items in the item
master).
Classes to Select Select the movement class to count items in this
class.
Accuracy Less Select movement class items with an accuracy of
than this Percent less than this percentage.
Cycle Count Days Enter the number of cycle count days, so you can
select items by the number of days they have
not been counted. This field applies to all cycle
counts.
Maximum Number Enter the maximum number of items to count,
to Count so you can limit the number of items counted to
a specific number. This field applies to all cycle
counts.

5. To determine specific items to count for the select ID, choose the Items
tab.

Related Reports and Inquiries


To Use
Print a listing of select ID parameters Select ID Listing (IC271)
defined in Select IDs (IC70.1)
View existing select IDs for a Select ID Status (IC78.1)
company

112 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Creating Freeze Files
You can freeze item counts to get a “snapshot” of the item counts as recorded
in the Inventory Control application. Use this procedure to freeze item counts.

Need More Details? Check out the following concepts:


• "What is a Freeze File?" on page 108
Figure 11. Procedure flow: Creating freeze files

1
Access Freeze
Selected Items
(IC170)

2
Add a job name
IC170

3
Select the
company
IC170

4
Select the select
ID
IC170

5
Submit the job
IC170

STEPS To create freeze files


1. Access Freeze Selected Items (IC170).
2. Add a job name and job description.
3. Select the company for which you want to freeze item counts.
4. Select the select ID you wish to freeze.
5. Submit the job.

Printing Count Sheets


A count sheet lists the items that you need to count during the physical
inventory assessment. You can use the count sheet to write item count totals
while you are assessing inventory levels. The following procedure gives the
information you need to print count sheets.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 113


Need More Details? Check out the following concepts:
• "What is a Count Sheet?" on page 108
Figure 12. Procedure flow: Printing count sheets

1
Access Count
Sheets
(IC270)

2
Add the job
IC270

3
Select the
company
IC270

4
Select the Select
ID
IC270

5
- Optional -
Choose print
options
IC270

6
Submit the job
IC270

STEPS To print count sheets


1. Access Count Sheets (IC270).
2. Add a job name and job description.
3. Select the company for which you want to print count sheets.
4. Select the select ID for which you want to print count sheets.
5. To print more specific item information on the count sheet, choose print
options. Consider the following fields.
Print Tags Select Yes if you want to print the select ID, freeze
date, freeze time, page number, line number,
item number, bin number, item description, serial
number, and lot/sublot numbers.
The default value for this field is No.

114 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Print Freeze Select Yes if you want to print the quantity that
Quantity exists in the Inventory Control application.
The default value for this field is No.
Print Only This Type the page number that you want to print.
Page

6. Submit the job.

Related Reports and Inquiries


To Use
Print a list of items that have not Count Control Status (IC295)
been counted for a specified time
period
Process physical inventory counts Physical Inventory Interface (IC574)
from an interface file

Entering Counts
After you have counted inventory items, you need to enter the total counts
for each item (by page for a select ID, with count detail, or randomly). You
must first have created a freeze file using Freeze Selected Items (IC170). You
can use this procedure to enter inventory counts into the Inventory Control
application.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 115


Need More Details? Check out the following concepts:
• "What is a Select ID?" on page 106
• "What is Catch Weight?" on page 108
Figure 13. Procedure flow: Entering counts

1
Access
Counts by Page
(IC72.1)

2
Enter Select ID
IC72.1

3
Enter Page
Number
IC72.1

4
Select Inquire
IC72.1

5
Enter Item Counts
IC72.1

6
Select Add
IC72.1

STEPS To enter counts


1. Access Counts by Page (IC72.1).
2. Select the company.
3. Select the select ID.
4. Type the page number.
5. Choose the Inquire form action.
NOTE If the item 6. Type item counts.
requires that you 7. Choose the Add form action.
enter catch weight
information, you will use
Count Detail (IC73.1) to
enter the count quantity. Entering Count Detail for an Item
If you are entering counts for a catch weight item, you need to enter the count
quantity and the unit cost. The following procedure gives the information you
need to enter detail count information.

116 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


You enter item count detail for a select ID and can delete item freeze records
for a select ID or add detail to item count records that were created in IC72
or IC74.
Figure 14. Procedure flow: Entering count detail for an item

1
Access Count
Detail
(IC73.1)

2
Select the
company
IC73.1

3
Select the select
ID
IC73.1

4
Type the item
position
IC73.1

5
Choose the Inquire
form action
IC73.1

6
Type item counts
IC73.1

7
- Conditional -
Type the unit cost
IC73.1

8
Choose the
Change form
action
IC73.1

STEPS To enter count detail for an item


1. Access Count Count Detail (IC73.1).
2. Select the company.
3. select the select ID.
4. Type the page number and line number of the item in the Position To fields.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 117


5. Choose the Inquire form action.
6. Type item counts.
7. If the unit cost of the item is different than what exists for the item on Item
Location (IC12.1), type the unit cost in the Unit Cost field.
8. Choose the Change form action.

Randomly Entering Item Counts


You can enter item counts in any order for a select ID. This method is useful if
you need to add item records that were missed by selection criteria defined
for a select ID. The procedure for randomly entering counts is also used if you
have items that are bin- or lot-tracked and have zero quantities recorded in the
Inventory Control application. The following procedure gives the information
you need to randomly enter item count information.
Figure 15. Procedure flow: Randomly entering item counts

1
Access Random
Counts
(IC74.1)

2
Select the
company
IC74.1

3
Select the select
ID
IC74.1

4
Select the location
IC74.1

5
Type item line
information
IC74.1

6
Choose the
Change form
action
IC74.1

STEPS To randomly enter item counts


1. Access Random Counts (IC74.1).
2. Select the company.
3. Select the select ID.
4. Select the location.
5. Type item line information. Consider the following fields.
Page Type the item page number.
Line Type the item line number.

118 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Bin Select the bin in which the item belongs.
Serial or Lot Type the serial or lot number by which the item
is tracked. If a freeze record exists for the item,
the lot or serial number displays automatically
(if applicable).
New Record Select X to create a freeze record for this item.

6. Select the Add form action.

Related Reports and Inquiries


To Use
Process physical inventory counts Physical Inventory Interface (IC574)
from an interface file

Inquiring on Inventory Variances


You can use this procedure to inquire on inventory count variances that exist
in the Inventory Control application.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 119


Need More Details? Check out the following concepts:
• "What is a Count Variance?" on page 109
Figure 16. Procedure flow: Inquiring on inventory variances

1
Access Update
Variances
IC175

2
Add a job name
IC175

3
Select the
company
IC175

4
Select the select
ID
IC175

5
Select job
parameters
IC175

6
Submit the job
IC175

STEPS To inquire on inventory variances


1. Access Update Variances (IC175).
2. Add a job name and description.
3. Select the company for the variance inquiry.
4. Select the select ID for the variance inquiry.
5. Select parameters to define how you want the job to run. Consider the
following fields.
Update Select No to run an inquiry on inventory
variances.
Acceptable Type the accuracy percent for variances that you
Accuracy Percent will accept for the select ID.

CAUTION Make sure that you have selected No in the Update


field before you submit the job. You cannot reverse the changes
once you update variances.
6. Submit the job.

120 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Related Reports and Inquiries
To Use
Print a list of explanations for count Variance Explanations (IC284)
variations by reason code
Print a list containing the accuracy Accuracy Progress (IC286)
progress for movement class 1,
2, and 3 and special cycle count
classes including totals

Adjusting Count Variances


You can use this procedure to adjust count variances in the Inventory
Control application. When you adjust count variances, you either adjust the
quantity in the Inventory Control application, or you provide a reason for the
variance. The following procedure gives the information you need to adjust
count variances.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 121


Need More Details? Check out the following concepts:
• "What is a Count Variance?" on page 109
• "What is a Reason Code?" on page 109
Figure 17. Procedure flow: Adjusting count variances

1
Access
Counts by Page
(IC72.1)

2
Enter Select ID
IC72.1

3
Enter Page
Number
IC72.1

4
Select Inquire
IC72.1

5
- Conditional -
Adjust the
variance
IC72.1

6
- Conditional -
Select a reason
code
IC72.1

7
Choose the
Change form
action
IC72.1

STEPS To adjust count variances


1. Access Counts by Page (IC72.1).
2. Select the company.
3. Select the select ID.
4. Type the page number of the item you want to adjust.
5. Choose the Inquire form action.
6. If you need to adjust the item quantity, type the adjustment quantity.
7. If you need to specify the reason the variance exists, select a reason code.
8. Choose the Change form action.

122 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Adjusting Count Detail for an Item
You adjust count detail for an item if variances exist for catch weight quantities
or unit cost. The following procedure gives the information you need to adjust
count detail information.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 123


Figure 18. Procedure flow: Adjusting count detail for an item

1
Access Count
Detail
(IC73.1)

2
Select the
company
IC73.1

3
Select the select
ID
IC73.1

4
Type the item
position
IC73.1

5
Choose the Inquire
form action
IC73.1

6
- Conditional -
Adjust item counts
IC73.1

7
- Conditional -
Select a reason
code
IC73.1

8
- Conditional -
Adjust the unit
cost
IC73.1

9
Choose the
Change form
action
IC73.1

124 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


STEPS To adjust count detail for an item
1. Access Count Detail (IC73.1).
2. Select the company.
3. Select the select ID.
4. Type the page number and line number of the item in the Position To fields.
5. Choose the Inquire form action.
6. If count quantity variances exist for the item, adjust the count quantity.
7. If a count variance exists, select the reason code in the Reason Code field.
8. If the unit cost of the item is different than what exists for the item on Item
Location (IC12.1), adjust the unit cost in the Unit Cost field.
9. Choose the Change form action.

Randomly Adjusting Item Counts


If you have a list of items that need to be adjusted and you want to adjust
them in a random order, use the following procedure.
Figure 19. Procedure flow: Randomly adjusting item counts

1
Access Random
Counts
(IC74.1)

2
Select the
company
IC74.1

3
Select the select
ID
IC74.1

4
Select the location
IC74.1

5
Type item line
information
IC74.1

6
Choose the
Change form
action
IC74.1

STEPS To randomly adjust item counts


1. Access Random Counts (IC74.1).
2. Select the company.
3. Select the select ID.
4. Select the location.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 125


5. Type item line information. Consider the following fields.
Page Type the item page number.
Line Type the item line number.
Count If you need to adjust the item quantity, enter the
new value in this field.
Reason Select a reason code if a count variance exists
for the item.

6. Select the Change form action.

Related Reports and Inquiries


To Use
Print a list of explanations for count Variance Explanations (IC284)
variations by reason code
Print a list containing the accuracy Accuracy Progress (IC286)
progress for movement class 1,
2, and 3 and special cycle count
classes including totals

Updating Inventory Counts


Use this procedure to update inventory counts in the Inventory Control
application.

126 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is a Count Variance?" on page 109
Figure 20. Procedure flow: Updating inventory counts

1
Access Update
Variances
(IC175)

2
Inquire on the job
IC175

3
Select Yes in
Update
IC175

4
Type the general
ledger post date
IC175

5
- Optional -
Select Yes in
Delete Records
IC175

6
Choose the
Change form
action
IC175

7
Submit the job
IC175

STEPS To update inventory counts


1. Access Update Variances (IC175).
2. Inquire on the job to receive the update.
3. Select Yes in the Update field to update inventory counts.

CAUTION You should always run your reports in Report mode


before you run them in Update mode. Once you run in Update
mode, you cannot reverse the action.
4. Type the general ledger post date.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 127


5. To erase the freeze records from the Inventory Control application, select
Yes in the Delete Records field.

IMPORTANT If you delete freeze records at this time, you cannot enter
reason codes on Variance Reasons (IC76.1). If you have reason codes
that need to be entered, select No in the Delete Records field and use
Delete Freeze Records (IC179) to delete freeze records.

6. Choose the Change form action.


7. Submit the job.

Explaining Count Variances


You can select reason codes for items with a variance without adjusting the
item quantity. Use this procedure to explain count variances in the Inventory
Control application.

128 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is a Count Variance?" on page 109
• "What is a Reason Code?" on page 109
Figure 21. Procedure flow: Explaining count variances

1
Access Variance
Reasons
(IC76.1)

2
Select the
company
IC76.1

3
Select the select
ID
IC76.1

4
Position to the
item line
IC76.1

5
Select the reason
code
IC76.1

6
Select the Add
form action
IC76.1

STEPS To explain count variances


1. Access Variance Reasons (IC76.1).
2. Select the company.
3. Select the select ID.
4. Position to the item line for which you want to explain count variances.
5. Select the reason code that explains the variance for the item.
6. Select the Add form action.

Inventory Control User Guide Chapter 6 Conducting Physical Inventory 129


Related Reports and Inquiries
To Use
Print a list of variance explanations Variance Explanations (IC284)
by reason code

Deleting Freeze Records


Use this procedure to delete freeze records for a select ID.

Need More Details? Check out the following concepts:


• "What is a Freeze File?" on page 108
Figure 22. Procedure flow: Deleting freeze records

1
Access Delete
Freeze Records
(IC179)

2
Add a job name
IC179

3
Select the
company
IC179

4
Select the select
ID
IC179

5
Submit the job
IC179

STEPS To delete freeze records


1. Access Delete Freeze Records (IC179).
NOTE If you added 2. Add a job name and job description.
an item to the original 3. Select the company for which you want to delete freeze records.
list of freeze records,
the number of freeze 4. Select the select ID for which you want to delete freeze records.
records that you delete 5. Submit the job.
will be greater than
the number of freeze
records originally
created.

130 Chapter 6 Conducting Physical Inventory Inventory Control User Guide


Chapter 7

Issuing Inventory

In Inventory Control, you process inventory transactions in four main ways:


send inventory, transfer inventory, receive inventory, and adjust inventory
costs and quantities. This chapter describes how to send, or issue, inventory
to another location.

Before you start Before you issue inventory, you must have at least
one requesting location set up. For more information, see the Requisitions
User Guide.

Inventory Control User Guide Chapter 7 Issuing Inventory 131


Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 135. • "What is an Issue?" on page 132
• "What is a Requesting Location?" on page 132
• "What are Transaction Types?" on page 133
• "What is Transaction Interfacing?" on page 134
• "What is a Document ID?" on page 134
• "How do I Use Walk Thru?" on page 134

What is an Issue?
An issue is a transaction where one inventory location sends inventory to
another non-stocking location, department, or person. The requesting location
incurs an expense for the issued items.

What is a Requesting Location?


A requesting location is the location that requests items. This location records
the expense for the items. For more information on how to set up requesting
locations, see the Requisitions User Guide.

132 Chapter 7 Issuing Inventory Inventory Control User Guide


What are Transaction Types?
Transaction types are codes used by the Lawson application to identify
specific kinds of transactions and where the transactions were created.
Transaction types are also called source codes in the General Ledger
application. You can use these codes to identify transactions in reports or
inquiry forms.
Transaction types are used in Inventory Control to track the type of movement
made against inventory. Below is a complete list of transaction types that
affect inventory.
Transaction Type Description Origin
AJ Adjustment Inventory Control
BT Bin Transfer Inventory Control
CA Cost Adjustment Inventory Control
CR Customer Return Order Entry
DT Direct Transfer Inventory Control
IR Intransit Receiving Inventory Control
IS Issue Inventory Control or
Requisitions
IT Transfer Issue Inventory Control
PI Physical Inventory Inventory Control
Adjustment
RC Receipt Inventory Control
RR Requisition Return Requisitions
RT Receiving Transfer Inventory Control
SH Shipment Order Entry
VA Vendor Return Purchase Order
Adjustment
VR Vendor Return Purchase Order
PO Purchase Order Purchase Order
Receiving
RA PO Receiving Purchase Order
Adjustment
RJ Rejected Inspection Purchase Order
Item
AC Accepted Inspection Purchase Order
Item
VI Vendor Return Inventory Control
Adjustment to Inventory

Inventory Control User Guide Chapter 7 Issuing Inventory 133


What is Transaction Interfacing?
Transaction interfacing occurs when Inventory Control sends transactions
to general ledger accounts. For example, when you issue inventory, the
application sends this transaction to the issue account specified at the
requesting location. If an issue account is not specified at the requesting
location, the issue account defaults from the general ledger category. If,
however, you want to send the transaction to a different account, then specify
a different debit account on the issue document. Inventory Control sends
transactions to General Ledger, which then posts those transactions.

When are transactions sent to General Ledger?


You must specify the general ledger post date on each document, which
determines when the transaction is sent to General Ledger. General Ledger
then posts the transactions to the specified accounts. You usually enter the
current date for the general ledger post date.

What is a Document ID?


A document ID is a reference code that you must define for each transaction.
For example, use a naming convention such as the transaction number, your
initials, and the date in the document ID. So, you would name one issue
1EJ0515 and another issue on that day 2EJ0515. Document IDs can be
either alphanumeric or numeric, based on your Inventory Control company
setup. Also, numeric document IDs can be assigned automatically, based on
your company setup.
Document IDs reference inventory transactions, for tracking purposes.

How do I Use Walk Thru?


If you track items by lot, serial number, or bin, the application automatically
walks you through (Walk Thru) detail forms when you add the document.
Walk Thru ensures that you complete the necessary information about the
items involved in a transaction. If the detail forms are not complete when
you attempt to release the transaction, you will receive an Out of Balance
message.

What is the Out of Balance message?


The Out of Balance message occurs when the items issued do not have
enough information. For example, if you issue an item that is tracked by serial
number and do not specify the serial number, you will receive the Out of
Balance message when you attempt to release the issue.

134 Chapter 7 Issuing Inventory Inventory Control User Guide


Procedures in this Chapter
This chapter describes how to issue inventory from one location to another.
• "Issuing Inventory" on page 135

Issuing Inventory
When you issue inventory, you decrease stock-on-hand at the inventory
location. The receiving location is not an inventory location. This procedure
describes the steps to issue inventory from an inventory location to another
location, department, or person.

Inventory Control User Guide Chapter 7 Issuing Inventory 135


Need More Details? Check out the following concepts:
• "What is an Issue?" on page 132
• "What is a Requesting Location?" on page 132
• "What is a Document ID?" on page 134
• "How do I Use Walk Thru?" on page 134
Figure 23. Procedure flow: Issuing inventory

1
Access
Issues
(IC21.1)

2
Define header
information
IC21.1

3
Type items
IC21.1

4
Type item
quantities
IC21.1

5
-Conditional-
Type item unit of
measure
IC21.1

6
Choose the Add
form action
IC21.1

7
- Conditional -
Conduct Walk
Thru

8
Release Issue

136 Chapter 7 Issuing Inventory Inventory Control User Guide


STEPS To issue inventory
1. Access Issues (IC21.1).
2. Define header information. Consider the following fields.
To Company If you issue inventory to another company, select
the company to receive the inventory.
To issue inventory to another company, you
must define an intercompany relationship in
Intercompany Relationships (GL25.1).
Requesting Select the requesting location or department that
Location will receive the items.

3. Type items.
4. Type item quantities. Use negative numbers if you need to process issue
returns.
TIP Drill Around on the 5. If your company requires item unit of measure on transactions, type item
item to determine the unit of measure.
valid unit of measures.
6. Choose the add form action.
7. Optional. If you issue any items that are detail tracked, you are prompted
to complete a Walk Thru. If the items were set up for tracking by bin, lot,
or serial number, you are transferred to Lots (IC29.1), Serials (IC29.2),
or Bins (IC29.3).

IMPORTANT You cannot view or make changes to the issue on Issues


(IC21) after you release the document. Use Transaction History (IC50)
to view the document and then use Adjustments (IC24) to create an
adjustment to change stock-on-hand.

NOTE Stock-on-hand 8. Release the issue.


is reduced when you
release the issue. To Use
Release individual issue Issues (IC21.1)
Release multiple issues Document Release (IC25.1)
Release and print issue Inventory Issue Document (IC244)

Options for Issuing Inventory


The following options are available for issuing inventory. After you add an
issue document, use Detail Issues (IC21.2) to enter detail issue transactions
into Inventory Control. Transactions are entered by user-defined document
ID. Also, you can use Detail Issues (IC21.2) to create an issue, one line item
at a time.

Inventory Control User Guide Chapter 7 Issuing Inventory 137


Related Reports and Inquiries
To Use
List usage (issues plus sales) history Usage History (IC49)
for a specific item for a given year
List transaction history for a specific Transaction History (IC50)
item by update date or transaction
date
Audit transaction history by update Transaction History Inquiry (IC55.1)
date, transaction date, transaction
type, accounting unit, transaction
value, and unit price
List transaction records for all Issues Inventory Documents (IC53)
created in Inventory Control
List all issues and requisition returns Issue Summary Report (IC231)
by accounting unit/account
List unreleased documents for a Unreleased Documents (IC222)
company
List item balances for a location Item Location Balances (IC31)
View the daily inventory transactions Daily Transaction Summary (IC37)
View the status of stock at a Inventory Stock Status (IC44)
particular location, or group of
locations from one form
View the stock on hand at a company Inventory Status (IC46)
level, report group level, or location
level
Print the accumulated inventory Transactions by Document Type
transaction amounts for a specified (IC287)
company, location, report group,
groups of document type, or group
of items
Print the requesting location Requesting Location Usage (IC282)
(departmental) demand on items
over 12 periods

138 Chapter 7 Issuing Inventory Inventory Control User Guide


Chapter 8

Transferring Inventory

Transferring inventory is another way to process inventory transactions.


This chapter explains how to transfer inventory from one location to another
inventory location as well as how to transfer items between bins in a single
location.

Inventory Control User Guide Chapter 8 Transferring Inventory 139


Concepts in this Chapter
TIP To skip directly The following concept provides background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 141. • "What is a Transfer?" on page 140

What is a Transfer?
A transfer reduces stock-on-hand at one inventory location and increases
stock-on-hand at another location. There are three kinds of transfers: direct,
intransit, and detail.

Direct transfer
A direct transfer is a transfer of inventory between locations within a close
physical distance. A direct transfer adjusts inventory balances at both
locations immediately after releasing the transfer document. A transfer is
used when both locations are inventory locations. The receiving location does
not report an expense for the items received.
For example, if Los Angeles transfers car tires to the San Francisco location,
a direct transfer is used because the shipment can occur within a day. Both
Los Angeles and San Francisco’s stock-on-hand are immediately adjusted.

Intransit transfer
An intransit transfer is a transfer between locations where those locations
are not physically close, generally more than a one-day trip. An intransit
transfer immediately reduces stock-on-hand at the original location but does
not increase stock-on-hand at the new location until the inventory is received.
If Los Angeles shipped those car tires to New York, an intransit transfer is
used. In this example, Los Angeles’ stock-on-hand is immediately reduced.
New York’s stock-on-hand increases upon receipt of the items.

Detail transfer
A detail transfer allows you to transfer inventory from one bin to another bin
within the same location, or from one unit of measure to another unit of
measure. Use detail transfers to take inventory out of a bin that does not
allow issues or accept inventory into a bin that does not allow receipts. For
more information, see "What are Bins?" on page 39. Detail transfers also
allow you to transfer inventory into another unit of measure; for example, from
one set of six into six individual items.
Los Angeles also can transfer the car tires from one bin to another bin
within its location. In this example, Los Angeles used a detail transfer to
automatically adjust the stock-on-hand at bins within the location.

140 Chapter 8 Transferring Inventory Inventory Control User Guide


Procedures in this Chapter
You use Inventory Control to transfer inventory to another location or within
one location. Choose a kind of transfer based on the destination of the
transfer. The procedures in this chapter explain how to create direct, intransit
and detail transfers.
• "Transferring Inventory to Another Location" on page 141
• "Transferring Inventory within a Location" on page 144

Transferring Inventory to Another Location


To send inventory to another stocking location, you use either a direct or
intransit transfer. The steps in this procedure explain how to create a direct or
intransit transfer.

Need More Details? Check out the following concepts:


• "What is a Transfer?" on page 140
• "How do I Use Walk Thru?" on page 134

Inventory Control User Guide Chapter 8 Transferring Inventory 141


Figure 24. Procedure flow: Transferring inventory to another location

1
Access
Transfers
(IC22.1)

2
Define header
information
IC22.1

3
- Conditional -
Select transfer
method
IC22.1

4
Select items
IC22.1

5
Type item
quantities
IC22.1

6
- Conditional -
Type item unit of
measures
IC22.1

7
Choose the Add
form action
IC22.1

8
- Conditional -
Conduct Walk
Thru

9
Release the
Transfer

142 Chapter 8 Transferring Inventory Inventory Control User Guide


STEPS To transfer inventory to another location
1. Access Transfers (IC22.1).
2. Define header information.
3. Select the transfer method in the Intransit field.
Select To create
No A direct transfer
Yes An indirect transfer

4. Select the items to transfer.


5. Type the item quantities.
TIP Drill Around on the 6. If your company requires item unit of measure on transactions, type the
item to determine the item unit of measure.
valid units of measure.
7. Choose the Add form action.
8. Optional. If you transfer any items that are detail tracked, you are
prompted to complete a Walk Thru. If an item is tracked by bin, lot, or
serial number, you are transferred to Lots (IC29.1), Serials (IC29.2), or
Bins (IC29.3).

IMPORTANT You cannot view or make changes to the transfer on


Transfers (IC22) after you release the document. Use Transaction History
(IC50) to view the document then use Adjustments (IC24) to create an
adjustment to change stock-on-hand.

NOTE Stock-on-hand 9. Release the transfer document.


is adjusted at both
locations when you To Use
release a direct transfer,
and at the original Release individual transfer Transfers (IC22)
location for an intransit Release multiple transfers Document Release (IC25)
transfer.

Options for Transferring Inventory


The following options are available for transferring inventory. After you add
a transfer document, use Detail Transfer (IC22.2) to enter detail transfer
transactions into Inventory Control. Transactions are entered by user-defined
document ID. You can also use IC22.2 to create a transfer, one line item
at a time.

Inventory Control User Guide Chapter 8 Transferring Inventory 143


Related Reports and Inquiries
To Use
List stock-on-hand quantities by Stock by Detail (IC42)
location
List usage (transfers) history for a Usage History (IC49)
specific item for a given time period
List transaction history for a specific Transaction History (IC50)
item and location
Audit transaction history by update Transaction History Inquiry (IC55.1)
date, transaction date, transaction
type, accounting unit, transaction
value, and unit price
List transaction records for all Inventory Documents (IC53)
transaction types
List unreleased documents for a Unreleased Documents (IC222)
company, location, or report group
List item balances for a location or Item Location Balances (IC31)
report group
View the daily inventory transactions Daily Transaction Summary (IC37)
View the status of stock at a Inventory Stock Status (IC44)
particular location, or group of
locations from one form
View the stock on hand at a company Inventory Status (IC46)
level, report group level, or location
level
Print the accumulated inventory Transactions by Document Type
transaction amounts for a specified (IC287)
company, location, report group,
groups of document type, or group
of items

Transferring Inventory within a Location


You transfer items within a location from one bin to another or from one
tracking unit of measure to another. Between bins use detail transfers when
restrictions exist that prohibit issues or receipts for specific bins. To maintain
accurate inventory balances, use detail transfers to transfer items between
tracking unit of measures.
The steps in this procedure explain how to transfer inventory between bins
and between tracking units of measure.

144 Chapter 8 Transferring Inventory Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is a Transfer?" on page 140
Figure 25. Procedure flow: Transferring inventory within a location

1
Access
Detail Transfers
(IC26.1)

2
Define header
information
IC26.1

3
Select items
IC26.1

4
Type item
quantities
IC26.1

5
Type From
information
IC26.1

6
Type To
information
IC26.1

7
Choose the
Transfer special
action
IC26.1

STEPS To transfer inventory within a location


1. Access Detail Transfers (IC26.1).
2. Define header information.
3. Select items.
4. Type item quantities.
5. Type the From information.

Inventory Control User Guide Chapter 8 Transferring Inventory 145


Type To
The original bin number Transfer inventory from this bin

NOTE The From and To bin can


be the same if you are transferring
from one tracking unit of measure
to another.

The original unit of measure Transfer inventory from this unit of


measure

6. Type the To information.


Type To
The bin number to receive the Transfer inventory to this bin
inventory
The final unit of measure Transfer inventory to this tracking
unit of measure (for example, to
change an item’s unit of measure
from box to case)

7. Choose the Transfer special action.

146 Chapter 8 Transferring Inventory Inventory Control User Guide


Related Reports and Inquiries
To Use
List stock-on-hand quantities by Stock by Detail (IC42)
location
List usage (transfers) history for a Usage History (IC49)
specific item for a given time period
List transaction history for a specific Transaction History (IC50)
item and location
Audit transaction history by update Transaction History Inquiry (IC55.1)
date, transaction date, transaction
type, accounting unit, transaction
value, and unit price
List transaction records for all Inventory Documents (IC53)
transaction types
List unreleased documents for a Unreleased Documents (IC222)
company, location, or report group
List item balances for a location or Item Location Balances (IC31)
report group
View the daily inventory transactions Daily Transaction Summary (IC37)
View the status of stock at a Inventory Stock Status (IC44)
particular location, or group of
locations from one form
View the stock on hand at a company Inventory Status (IC46)
level, report group level, or location
level
Print the accumulated inventory Transactions by Document Type
transaction amounts for a specified (IC287)
company, location, report group,
groups of document type, or group
of items

Inventory Control User Guide Chapter 8 Transferring Inventory 147


148 Chapter 8 Transferring Inventory Inventory Control User Guide
Chapter 9

Receiving Inventory

Receiving inventory is another way you process inventory transactions.


Generally, you use Inventory Control to receive items that are not received
using Purchase Order. This chapter focuses on entering miscellaneous
receipts and intransit receipts using Inventory Control.

Inventory Control User Guide Chapter 9 Receiving Inventory 149


Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 151. • "What is a Receipt?" on page 150
• "What is an Intransit Receipt?" on page 150
• "How do Unit Costs default?" on page 150

What is a Receipt?
A receipt is a transaction that adds items into inventory, which increases
stock-on-hand. You enter receipts in Inventory Control for miscellaneous
items that were not received using Purchase Order.

What is an Intransit Receipt?


An intransit receipt is a receipt of items transferred to your location from an
intransit transfer. For more information, see "What is a Transfer?" on page
140.

How do Unit Costs default?


Unit costs default in the following order:
1. Direct entry on document
2. Item Location (IC12.1) if the company is a standard costing company
3. Last received or invoiced cost
If you manually enter a unit cost on the document, it will override any other
costs for that item. If your company is a standard costing company, the unit
cost will then default from the Item Location (IC12.1). If neither of these is
true, the cost will default from the last received or invoiced cost. If the item has
not been received or invoiced, you must manually enter a cost for that item.

150 Chapter 9 Receiving Inventory Inventory Control User Guide


Procedures in this Chapter
You use Inventory Control to receive items into inventory. You enter
miscellaneous receipts to account for surplus inventory or enter intransit
receipts to receive items transferred to your location.
You can use the receiving process in Inventory Control for items not received
in Purchase Order or for items transferred to your location. The procedures in
this chapter explain how to receive items in Inventory Control.
• "Receiving Inventory" on page 151
• "Receiving Intransit Transfers" on page 154

Receiving Inventory
NOTE For information Use Inventory Control to receive items into inventory that were not received
about receiving using Purchase Order. This procedure will explain the steps to enter
inventory using miscellaneous receipts.
Purchase Order, see
the Purchase Order
User Guide. Need More Details? Check out the following concepts:
• "What is a Receipt?" on page 150
• "How do Unit Costs default?" on page 150
• "How do I Use Walk Thru?" on page 134

Inventory Control User Guide Chapter 9 Receiving Inventory 151


Figure 26. Procedure flow: Receiving inventory

1
Access Receipts
(IC20.1)

2
Define header
information
IC20.1

3
Type items
IC20.1

4
Type item
quantities
IC20.1

5
- Conditional -
Type item unit of
measure
IC20.1

6
- Conditional -
Type unit cost
IC20.1

7
Type bin
information
IC20.1

8
Choose the Add
form action
IC20.1

9
- Conditional -
Conduct Walk
Thru

10
Release Receipt
Document

152 Chapter 9 Receiving Inventory Inventory Control User Guide


STEPS To receive inventory
1. Access Receipts (IC20.1).
2. Define header information.
3. Type items.
4. Type quantity for each item.
TIP Drill Around on the 5. If your company requires item unit of measure on transactions, type item
item to determine the unit of measure.
valid unit of measures.
NOTE For more 6. If you want to override the unit cost, type a new unit cost.
information, see "How
7. If the item is tracked by bin, type the bin number.
do Unit Costs default?"
on page 150. 8. Choose the Add form action.
9. Optional. If you receive any items that are detail tracked, you are
prompted to complete a Walk Thru. If an item is tracked by bin, lot, or
serial number, you are transferred to Lots (IC29.1), Serials (IC29.2), or
Bins (IC29.3).

IMPORTANT You cannot view or make changes to the receipt on


Receipts (IC20.1) after you release the document. Use Transaction
History (IC50.1) to view the document then use Adjustments (IC24.1) to
create an adjustment to change stock-on-hand.

NOTE Stock-on-hand 10. Release the receipt document.


is increased when you
release the receipt. To Use
Release individual receipts Receipts (IC20.1)
Release multiple receipts Document Release (IC25.1)

Options for Receiving Inventory


The following options are available for receiving inventory. After you add
a receipt document, you use Detail Receipts (IC20.2) to enter receipt
transactions into Inventory Control. Transactions are entered by user-defined
document ID. Also, you can use Detail Receipts (IC20.2) to create a receipt,
one line item at a time.

Inventory Control User Guide Chapter 9 Receiving Inventory 153


Related Reports and Inquiries
To Use
List usage (receipts) history for a Usage History (IC49)
specific item for a given year
List transaction history for a specific Transaction History (IC50)
item by update date or transaction
date
Audit transaction history by update Transaction History Inquiry (IC55.1)
date, transaction date, transaction
type, accounting unit, transaction
value, and unit price
List unreleased documents for a Unreleased Documents (IC222)
company
List item balances for a location Item Location Balances (IC31)
View the daily inventory transactions Daily Transaction Summary (IC37)
View the status of stock at a Inventory Stock Status (IC44)
particular location, or group of
locations from one form
View the stock on hand at a company Inventory Status (IC46)
level, report group level, or location
level
Print the accumulated inventory Transactions by Document Type
transaction amounts for a specified (IC287)
company, location, report group,
groups of document type, or group
of items

Receiving Intransit Transfers


Use Inventory Control to receive items that were transferred to your location.
When items are sent to your location via an intransit transfer, you need to
receive the items into your inventory to increase your stock-on-hand. This
procedure will explain the steps to receive intransit transfers.

Need More Details? Check out the following concepts:


• "What is an Intransit Receipt?" on page 150
• "How do I Use Walk Thru?" on page 134

154 Chapter 9 Receiving Inventory Inventory Control User Guide


Figure 27. Procedure flow: Receiving intransit transfers

1
Access Intransit
Receiving
(IC23.1)

2
Define header
information
IC23.1

3
Choose the Inquire
form action
IC23.1

4
Type receiving
document
IC23.1

5
Select Yes in
receive all
IC23.1

6
- Conditional -
Change incorrect
receipt quantities
IC23.1

7
Choose the Add
form action
IC23.1

8
- Conditional -
Conduct Walk
Thru

Release Receiving
Document

STEPS To receive intransit transfers


1. Access Intransit Receiving (IC23.1).

Inventory Control User Guide Chapter 9 Receiving Inventory 155


NOTE You enter the 2. Define header information. Type only the company, receiving location,
remaining header and intransit document. Consider the following fields.
information in step
4. Receiving Select the location to receive the transferred
Location items.
Intransit Select the document ID that was created from
Document the original location.

3. Choose the Inquire form action to list the transferred items.

NOTE The receiving 4. Type the receiving document.


document is also known 5. Select Yes in Receive All.
as the document ID.
6. If the received quantities are not accurate, type the correct number
received in the Quantity field.
7. Choose the Add form action.
8. Optional. If you receive any items that are detail tracked, you are
prompted to complete a Walk Thru. If an item is tracked by bin, lot, or
serial number, you are transferred to Lots (IC29.1), Serials (IC29.2), or
Bins (IC29.3).

IMPORTANT You cannot view or make changes to the intransit receipt


on Intransit Receiving (IC23.1) after you release the document. Use
Transaction History (IC50.1) to view the document then use Adjustments
(IC24.1) to create an adjustment to change stock-on-hand.

NOTE Stock-on-hand 9. Release the intransit receipt document.


is increased when you
release the intransit To Use
receipt.
Release individual receipts Intransit Receiving (IC23.1)
Release multiple receipts Document Release (IC25.1)

Options for Receiving Intransit Transfers


The following options are available for receiving intransit transfers. After you
add a receipt document, you use Detail Intransit Receiving (IC23.2) to enter
additional item detail information. Also, you can use Detail Intransit Receiving
(IC23.2) to create an intransit receipt, one line item at a time.

156 Chapter 9 Receiving Inventory Inventory Control User Guide


Related Reports and Inquiries
To Use
List open intransit quantities Open Intransits (IC48)
List the usage history (receipts, Usage History (IC49)
issues plus sales, adjustments,
transfers) for an item for a specific
year
Print a list of intransit transfers from Open Intransit Report (IC221)
one location to another that have not
been received
List transaction history for a specific Transaction History (IC50)
item by update date or transaction
date
Audit transaction history by update Transaction History Inquiry (IC55.1)
date, transaction date, transaction
type, accounting unit, transaction
value, and unit price
View the daily inventory transactions Daily Transaction Summary (IC37)
View the status of stock at a Inventory Stock Status (IC44)
particular location, or group of
locations from one form
View the stock on hand at a company Inventory Status (IC46)
level, report group level, or location
level
Print the accumulated inventory Transactions by Document Type
transaction amounts for a specified (IC287)
company, location, report group,
groups of document type, or group
of items

Inventory Control User Guide Chapter 9 Receiving Inventory 157


158 Chapter 9 Receiving Inventory Inventory Control User Guide
Chapter 10

Adjusting Inventory

This chapter focuses on adjusting item counts. You may adjust item counts in
the Inventory Control application to make the physical inventory count match
the inventory count recorded in the application. An unmatched item count
may occur from an entry error or an undocumented return.

Inventory Control User Guide Chapter 10 Adjusting Inventory 159


Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 161. • "What is an Inventory Adjustment?" on page 160
• "What is a Storage Code?" on page 160

What is an Inventory Adjustment?


An inventory adjustment is the process of correcting a discrepancy in received
inventory balances. The two kinds of inventory adjustments are quantity
and cost. You perform adjustments after you have released the receiving
document.

Quantity Adjustment
A quantity adjustment is a correction made in inventory balances. You can
use inventory adjustments when inventory cannot be classified as a standard
transaction such as an issue, receipt, or transfer. Quantity adjustments can be
used to account for an inventory return, a miscount, theft, or damaged goods.
Examples of when inventory quantity adjustments are necessary are returns,
damaged goods, and miscounting.

Cost Adjustment
NOTE You can only A cost adjustment is an adjustment to the unit cost of an item. You perform
make cost adjustments cost adjustments at the time of invoicing to correct an entry error.
to item quantities that
are currently in stock. However, you cannot make cost adjustments for a purchase order receipt
with this process.

What is a Storage Code?


A storage code is associated with rules that indicate what items and item
quantities you can store at a particular location.

What is the “Storage Code Mismatch” error?


The “Storage Code Mismatch” error indicates that you are trying to place an
item or item quantity in a location that cannot hold that item.

160 Chapter 10 Adjusting Inventory Inventory Control User Guide


Procedures in this Chapter
The procedures in this chapter explain how to adjust inventory quantities and
costs after you have released the receiving document.
• "Adjusting Inventory Quantities" on page 161
• "Adjusting Inventory Costs" on page 164

Adjusting Inventory Quantities


You can adjust inventory quantities after the receiving document has been
released. This adjustment may be necessary if an item quantity was entered
incorrectly on a receiving document. This procedure explains how to adjust
item quantities on released receiving documents.

Need More Details? Check out the following concepts:


• "What is an Inventory Adjustment?" on page 160

Inventory Control User Guide Chapter 10 Adjusting Inventory 161


Figure 28. Procedure flow: Adjusting inventory quantities

1
Access
Adjustments
(IC24.1)

2
Define Header
Information
IC24.1

3
Enter Items
IC24.1

4
Enter Item
Quantities
IC24.1

5
Enter Item Unit of
Measure
IC24.1

6
- Conditional -
Enter Item Unit
Cost
IC24.1

7
- Conditional -
Enter Bin
Information
IC24.1

8
Choose the Add
Form Action
IC24.1

9
- Conditional -
Conduct Walk
Thru

10
Release the
Document

162 Chapter 10 Adjusting Inventory Inventory Control User Guide


STEPS To adjust inventory quantities
1. Access Adjustments (IC24.1).
2. Define header information.
3. Enter the item or items that need to be adjusted.
NOTE To subtract items 4. Enter the item quantity that you want to add or subtract.
from inventory, type 5. Enter the unit of measure of each item. The unit cost will default from the
the quantity you are
subtracting followed by most recent Costing Record file or the last received cost from the Item
a minus sign. Location file. If the program does not find a cost, enter the correct cost.
6. If you are adding item quantities for incoming issues, enter the unit cost
of the item.
7. Optional. If the item is bin-tracked, enter the bin information.
8. Choose the Add form action.
9. Optional. If you adjust any items that are detail tracked, you are prompted
to complete a Walk Thru. If an item is tracked by bin, lot, or serial number,
you are transferred to Lots (IC29.1), Serials (IC29.2), or Bins (IC29.3).

CAUTION You cannot view or make changes to the adjustment


on Adjustments (IC24.1) after you release the document. Use
Transaction History (IC50.1) to view the document and create
an adjustment to change stock-on-hand.
10. Release the adjustment document.

STEPS To adjust inventory quantities and override the general


ledger adjustment offset account
1. Access Detail Adjustments (IC24.2).
2. Define the header information, the items to be adjusted, and the item
quantity to add or subtract.
3. Optional. If an item is tracked by bin, select the bin for the adjustment
quantity.
4. Optional. If an item is a catch weight item, enter the receipt quantity for
the item’s secondary unit of measure.
After the document is processed (not released), you can view the
stock-on-hand quantity in the item’s secondary unit of measure. Also
displayed is what the item’s stock-on-hand quantity becomes after the
document is released.
5. Override the general ledger adjustment offset account directly or by
reason code.
• In the Reason field, select a reason code that you defined previously
using Reason Codes (IC17.1). The general ledger account assigned
to the reason code is used (if the reason code is Active).
• In the Offset Account field, select the general ledger offset account to
be used instead of the account specified in General Ledger Category
(IC04.1).
6. Optional. Add a reference notation or adjustment comments for this item
receipt.
7. Choose the Add form action.
8. Optional. If an item is detail tracked, you are prompted to complete a
Walk Thru. If an item is tracked by bin, lot, or serial number, you are
transferred to Lots (IC29.1), Serials (IC29.2), or Bins (IC29.3).

Inventory Control User Guide Chapter 10 Adjusting Inventory 163


9. Release the adjustment document.

Adjusting Inventory Costs


You can adjust inventory costs after the receiving document has been
released. This may be necessary if an item cost was entered incorrectly on a
receiving document and you did not notice it until after it was released. This
procedure explains how to adjust item costs on released receiving documents.
Receipt records are created in the Inventory Control, Purchase Order, Order
Entry, Requisitions, and Production Order applications. Cost adjustments are
made by company, location, item number, document type, document ID, and
line number. The receipt document types are adjustment, customer return,
physical inventory adjustment, PO receiving, receipt, requisition return, and
receipt transfer.
You cannot make cost adjustments for purchase order receipts.

164 Chapter 10 Adjusting Inventory Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is an Inventory Adjustment?" on page 160
Figure 29. Procedure flow: Adjusting inventory costs

1
Access Cost
Adjustments
(IC28.1)

2
Add Header
Information
IC28.1

3
Type Correct Item
Unit Cost
IC28.1

4
- Conditional -
Adjust Cost to
Zero
IC28.1

5
Choose the
Change Form
Action
IC28.1

6
Release the
Document

STEPS To adjust inventory costs


1. Access Cost Adjustments (IC28.1).
2. Add header information.
3. Type the correct unit cost for the item.
4. If your company is set up to use the average costing method, you can
adjust the cost of an item to zero to cancel the incorrect cost from the
average.
a. Set the Adjust to Zero flag to “Y” (Yes).
b. Choose the Change form action.
c. Delete the “Y” from the Adjust to Zero field.
5. Choose the Change form action.

Inventory Control User Guide Chapter 10 Adjusting Inventory 165


CAUTION You cannot view or make changes to the cost
adjustment on Cost Adjustments (IC28.1) after you release
the document. Use Transaction History (IC50.1) to view the
document and create an adjustment to change stock-on-hand.
6. Release the document.

Related Reports and Inquiries


To Use
View the cost history for inventory Cost History (IC47.1)
quantities that are received at a
specific location
List past transaction usage of an Usage History (IC49.1)
item for a specified period
Audit transaction history records by Transaction History (IC50.1)
update or transaction date
Audit transaction history records in Detail Transaction History (IC50.2)
detail
Audit transaction history by update Transaction History Inquiry (IC55.1)
date, transaction date, transaction
type, accounting unit, transaction
value, and unit price
Display transaction records for all Inventory Documents (IC53.1)
documents created in the Inventory
Control application
Print item transaction history for a Transaction History Report (IC220)
specified date range
List unreleased documents for a Unreleased Documents (IC222)
company
Audit transaction quantities and Transaction Audit Report (IC242)
stock-on-hand balances for a
specific period and year
View the daily inventory transactions Daily Transaction Summary (IC37)
View the stock on hand at a company Inventory Status (IC46)
level, report group level, or location
level
Print the accumulated inventory Transactions by Document Type
transaction amounts for a specified (IC287)
company, location, report group,
groups of document type, or group
of items

166 Chapter 10 Adjusting Inventory Inventory Control User Guide


Chapter 11

Replenishing Inventory

This chapter focuses on the methods you can use to replenish inventory
for your company.

Before you start Before you can create a replenishment document, you
must have entered information about the item’s replenishment source in the
item location file. For more information, see "Setting up Item Locations" on
page 91.

Inventory Control User Guide Chapter 11 Replenishing Inventory 167


Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 170. • "What is Inventory Replenishment?" on page 168
• "What is Exception Reporting?" on page 169
• "What is Item Forecasting?" on page 169

What is Inventory Replenishment?


Inventory replenishment is the act of refilling your stock-on-hand. You can
replenish an inventory location from a vendor, from another location, or from a
requisition purchase order.
You determine reorder information when setting up each item location.
Three batch programs use that reorder setup to replenish stock-on-hand:
Location Replenishment Report (IC141), Vendor Reorder Advice (IC140), and
Replenishment by Requisition PO's (IC142).
With Location Replenishment Report (IC141), you replenish one location with
items from another location. Required item location setup includes a reorder
policy of Fixed Order Point (FOP), a reorder document code of Requisition,
and automatic purchasing set to No. In the Requisitions application, the
requesting location and requester must be set up. Replenishment requesters
may be set up as a combination of the form name and the requesting location,
or they may be entered on Location (IC02.1). For more information, see the
Requisitions User Guide.
You run Vendor Reorder Advice (IC140) to replenish items that you buy from
a vendor to stock a location. Required item location setup includes a reorder
policy of Fixed Order Point, a reorder document code of Purchase Order, and
automatic purchasing set to Yes. The Order Days option lets you replenish
using vendors assigned a specific order day (or no order day). Consequently,
you send an order to the vendor in time for their regularly scheduled delivery
day. Order days are set up using PO Vendor (PO10.1) or Vendor Purchase
From Location (PO10.2).
Replenishment by Requisition PO's (IC142) lets you replenish a location
through a requisition interface with the Purchase Order application.
Requisitions are created, you review and release them, create purchase
orders from the requisitions, and then run Purchase Order Interface from
Lawson Applications (PO100) to update the Purchase Order application.
Required item location setup includes a reorder policy of Fixed Order Point
(FOP), a reorder document code of Requisition, and automatic purchasing set
to Yes. In the Requisitions application, the requesting location and requester
must be set up. Replenishment requesters may be set up as a combination
of the form name and the requesting location, or they may be entered on
Location (IC02.1). For more information, see the Requisitions User Guide.
Also, in purchase order company setup, the user field for requisition header
user field 5 must be defined as Alpha. (The Order Days option is available
with IC142 as well.)

168 Chapter 11 Replenishing Inventory Inventory Control User Guide


What is Exception Reporting?
All of the replenishment programs allow for exception reporting. If you decide
to print an exception report, a listing of certain items that were not replenished
is produced. There are several reasons why items are not identified as
needing replenishment, such as:
• The supply/demand for an item has not fallen below the reorder point
quantity defined at the item location
• Replenishment information is missing, either for the vendor or for the
company, location, and item
• The inventory major or minor sales class selected does not match the
class from the Item Master
• The purchasing major or minor class does not match the class from the
Item Master
• The item is set to Inactive in the Item Master and you decided not to
include inactive items in the replenishment program
• An item’s Inventory Tracking field is set to No on the Item Location
(indicating that the item is not tracked in inventory)
• The vendor selected for replenishment directly from a vendor is Inactive
NOTE Be aware that by
printing an exception
report, the report
lists all items for that
location, including
items that were and
were not selected for
replenishment. Lawson
recommends printing an
exception report when
you are setting up new
items or locations for
replenishment, or to
uncover why an item
was not reordered.

What is Item Forecasting?


Item forecasting is the process of analyzing past ordering activity for an item
in order to predict the future ordering demand for that item. You use item
forecasting to predict the ordering demand for that item for the upcoming
periods and plan an ordering strategy accordingly.

Inventory Control User Guide Chapter 11 Replenishing Inventory 169


Procedures in this Chapter
The procedures in this chapter explain the different methods that you can
use to replenish inventory.
• "Replenishing from Another Location" on page 170
• "Replenishing from a Vendor" on page 172
• "Replenishing an Inventory Location through Requisitions" on page
174
• "Replenishing Bins" on page 176
• "Defining Item Forecasts" on page 178

Replenishing from Another Location


Replenishing from another location is a process that enables you to record
inventory transactions, such as issues and receipts, between locations in your
company. This procedure explains how to replenish from another location.

Before you start Before you can create a replenishment document, you
must have entered information about the item’s replenishment source in the
item location file. For more information, see "Setting up Item Locations" on
page 91.

170 Chapter 11 Replenishing Inventory Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is Inventory Replenishment?" on page 168
• "What is Exception Reporting?" on page 169
Figure 30. Procedure flow: Replenishing from another location

1
Access Location
Replenishment
(IC141)

2
Add the job name
IC141

3
Select job
parameters
IC141

4
Release
replenishment
document
IC141

STEPS To replenish from another location


1. Access Location Replenishment (IC141).
2. Add the job name and description.
3. Select parameters for the replenishment job. Consider the following fields.
Location Select the “To” location; the location that is
receiving the items.
Create Unreleased Select Yes to create requisitions for items that
Documents met replenishment criteria.
The default value for this field is No.
Include Inactive Select Yes to include inactive items in the location
Items replenishment report.
Print Exception Indicate whether to print an exception report,
Report indicating why certain items were not shown as
needing replenishment.
Sort Option Indicate how to sort the report, by bin or item.

Inventory Control User Guide Chapter 11 Replenishing Inventory 171


NOTE You can set up 4. Release the replenishment document.
your print options to print
at both the issuing and
receiving location. Related Reports and Inquiries
To Use
Calculate reorder quantities for items Inventory Reorder Advice (IC225)
that have an available quantity that
is less than the reorder point

Replenishing from a Vendor


You can replenish a location by ordering directly from a vendor. This
procedure explains how to replenish from a vendor.

Before you start Before you can create a replenishment document, you
must have entered information about the item’s replenishment source in the
item location file. For more information, see "Setting up Item Locations" on
page 91.

Need More Details? Check out the following concepts:


• "What is Inventory Replenishment?" on page 168
• "What is Exception Reporting?" on page 169
Figure 31. Procedure flow: Replenishing from a vendor

1
Access Vendor
Reorder Advice
(IC140)

2
Add the job name
IC140

3
Select parameters
for the job
IC140

4
Submit the job
IC140

STEPS To replenish from a vendor


1. Access Vendor Reorder Advice (IC140).
2. Add the job name and description.

172 Chapter 11 Replenishing Inventory Inventory Control User Guide


3. Choose the Main tab to set replenishment options. Consider the following
fields.
Update Select No to run the job in report mode.
Select Yes to send the order information to the
Purchase Order application so that your order
can be processed.
Reorder Percent Type a cutoff percentage to include items that are
Cutoff within this percent of the reorder point.

NOTE At least one item for the vendor must be


found to be below the reorder point.

Include Inactive Select Yes to include inventory items that are


Items defined as inactive in the Item Master file.
Consignment Indicate whether to include consignment items.
Items
Print Exception Indicate whether to print an exception report of
Report certain items that were not shown as needing
replenishment.
Create Worksheet Indicate whether items are to display on
Replenishment PO Worksheet (IC66.1). IC66
lets you add, change, or delete items to be
replenished in inventory.

NOTE When IC140 is run with the Update field


set to Yes, the application replaces any existing
worksheet items for the location that are selected
to display on IC66.

Sort Option Indicate how to sort the report, by vendor or bin.

4. Choose the Vendor tab to add replenishment information for the vendor.
Consider the following fields.
Vendor Select the vendor for which you are adding
replenishment information.
Purchase From Select the vendor’s purchase-from location that
you defined using Vendor Location (AP10.2).
Vendor Attribute Select an attribute list (must have been previously
List defined using List (MX10.1). If you select an
attribute list, the Vendor and Purchase From
fields must be blank, as well as Order Days.
For more information on attributes, see the
chapter on Using Attribute Matrix Attributes.

Inventory Control User Guide Chapter 11 Replenishing Inventory 173


Order Days Indicate whether you want vendors with that
specific order day (defined using PO Vendor
(PO10.1) or Vendor Purchase From Location
(PO10.2)).
If you select Yes, the form only processes
vendors who are assigned to this order day or
vendors with no order days assigned.

NOTE You cannot select attributes, a vendor, or


vendor purchase from if you use order days.

5. Submit the job.

Related Reports and Inquiries


To Use
Calculate reorder quantities for items Inventory Reorder Advice (IC225)
that have an available quantity that
is less than the reorder point
Add, change, or delete items to be Replenishment PO Worksheet
replenished in inventory (IC66.1)

NOTE To access IC66, you must set


the Update and Create Worksheet
fields to Yes on Vendor Reorder
Advice (IC140).

Print all selected and unselected Replenishment PO Worksheet


items that display (but were not Report (IC266)
released) on Replenishment PO
Worksheet (IC66.1)

Replenishing an Inventory Location through Requisitions


You can create a requisition to replenish inventory locations. When you use
this method, the order goes through the approval process in the Requisitions
application before it goes to the Purchase Order application. This procedure
explains how to replenish inventory locations by creating a requisition.

Before you start Before you can create a replenishment document, you
must enter information about the item’s replenishment source in the item
location file. For more information, see "Setting up Item Locations" on page
91. You must also set up requesters in the Requisitions application. For more
information, see the Requisitions User Guide.

174 Chapter 11 Replenishing Inventory Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is Inventory Replenishment?" on page 168
• "What is Exception Reporting?" on page 169

STEPS To replenish inventory locations through requisitions


1. Access Replenishing by Requisitions PO's (IC142).
2. Add a job name and description.
3. Define the job parameters to create a replenishment document. Consider
the following fields.
Location Select the “To” location; the location that is
receiving the items.
Create Unreleased Select Yes to create requisitions for items that
Documents met replenishment criteria.
The default value for this field is No.
Include Inactive Select Yes to include inactive items in the location
Items replenishment report.
Print Exception Indicate whether to print an exception report
Report of certain items not shown as needing
replenishment.
Sort Option Indicate how to sort the report, by vendor or bin.
Use Requesting If you are replenishing from both IC142 and
Location as From IC141, indicate whether to override the From
Location location from IC141. By selecting Yes, you let
IC142 replenish the location, even though the
requesting location has a different From location.
Order Days Indicate whether you want vendors with that
specific order day (defined using PO Vendor
(PO10.1) or Vendor Purchase From Location
(PO10.2)).
If you select Yes, the form only processes
vendors who are assigned to this order day or
vendors with no order days assigned.

NOTE You cannot select vendor attributes if you


use order days.

Vendor Attribute Select an attribute list (must have been previously


List defined using List (MX10.1). If you select an
attribute list, the Order Days fields must be blank.
For more information on attributes, see the
chapter on Using Attribute Matrix Attributes.

4. Choose the Add form action.


5. Submit the report.

Inventory Control User Guide Chapter 11 Replenishing Inventory 175


Followup Tasks
After you have submitted the replenishment report, you must run Purchase
Order Interface from Lawson Applications (PO100) in the Purchase Order
application. For information on purchase order processing, see the Purchase
Order User Guide.

Replenishing Bins
Bin replenishment is a process that enables you to maintain inventory
balances at bin locations. You can replenish from another bin within the same
location. This procedure explains how you can replenish bins.

Before you start Before you can create a replenishment document, you
must have entered information about the item’s replenishment source in the
item location file. For more information, see "Setting up Item Locations" on
page 91.

176 Chapter 11 Replenishing Inventory Inventory Control User Guide


Need More Details? Check out the following concepts:
• "What is Stock-on-hand?" on page 83
Figure 32. Procedure flow: Replenishing bins

1
Access Bin
Replenishment
Report
(IC138)

2
Type a job name
IC138

3
Define job
parameters
IC138

4
Choose the Add
form action
IC138

5
Choose the
Submit form action
IC138

6
- Conditional -
Adjust Bin
Replenishment
Document
IC90.1

7
Choose the
Release form
action
IC90.1

STEPS To replenish bins


1. Access Bin Replenishment Report (IC138).
2. Type a job name and description.

Inventory Control User Guide Chapter 11 Replenishing Inventory 177


3. Define the job parameters to create a bin replenishment document.
Consider the following fields.
Bin Group Select a value in this field to create a
replenishment document for only the bins within
the bin group that you selected.
Unit of Measure Select a value in this field to create a
replenishment document is created for only the
items with the unit of measure that you selected.
Sequence Select a value to indicate the sequence in which
you want the report to print the location, item,
and bin information.
Create Document Select No if you want to create a bin
replenishment report to review bin replenishment
information.
Select Yes if you want to create the bin
replenishment document.

4. Choose the Add form action.


5. Choose the Submit button.
6. If you typed values that need to be changed, use Detail Bin Transfer Entry
(IC90.1) to adjust the bin replenishment document.
7. To release the replenishment document, choose the Release form action
on Detail Bin Transfer Entry (IC90.1).

Related Reports and Inquiries


To Use
Print separate reports for bin storage Bin Listing (IC215)
codes, bins, and bin groups
List stock-on-hand (SOH) quantities Bin Stock and Hand Report (IC238)
by location, including the item
number, description, bin, and unit of
measure (UOM)
List all bin reordering parameters Bin Reorder Policy Listing (IC241)
defined in Bin Reorder Policy
(IC38.1)

Defining Item Forecasts


You create a forecast of item quantity and amount (by location) using
Forecasts (IC19.1). Quantity forecasts are used in two programs:
• Economic Order Quantity and Reorder Calculation (IC120) to calculate
the Economic Order Quantity
• Distribution Requirements Report (DR100) to calculate the Time-Phased
Order Point

178 Chapter 11 Replenishing Inventory Inventory Control User Guide


IC19.1 lets you create a forecast for up to 14 periods at once, based on the
number of periods you set up using Period End Dates (IC01.2). For example,
if you set up 12 monthly periods, you set up item forecasts for 12 periods,
with each period representing one month. If you set up 52 weekly periods,
you set up item forecasts for a quarter, with each quarter representing 13
weekly periods.

Need More Details? Check out the following concepts:


• "What is Item Forecasting?" on page 169

STEPS To define an item forecast


1. Access Forecasts (IC19.1).
2. Enter the company, location, item, and year for the forecast.
3. Enter the forecast number and optionally a quarter for the forecast. You
need to define a quarter if you set up weekly periods in Period End Dates
(IC01.2). The values are:
• First Quarter (for weekly periods 1 through 13)
• Second Quarter (for weekly periods 14 through 26)
• Third Quarter (for weekly periods 27 through 39)
• Fourth Quarter (for weekly periods 40 through 52)

NOTE If you specify a quarter, only those periods for the quarter are
affected by the action code.

You can assign this forecast number to an item at an item location using
Item Location (IC12.1).
4. Set up your forecast-specific information. Consider the following fields.
Action Indicate how to process the number of units.
Select Spread to evenly divide the number of
units for the first period over the total number of
periods set up in Period End Dates (IC01.2). If
the number is not evenly divisible, the remaining
quantity is added to the last period. Select
Duplicate to copy the number of units for the
period to each blank period.
Units Enter the number of units used in the period.
Amount Enter the cost amount for the number of units
used in the period.

5. Choose the Add form action.

Related Reports and Inquiries


To Use
Print a list of item forecasts Forecast Listing (IC219)

Inventory Control User Guide Chapter 11 Replenishing Inventory 179


180 Chapter 11 Replenishing Inventory Inventory Control User Guide
Chapter 12

Closing Inventory Control Period

This chapter focuses on closing the Inventory Control period and sending
inventory transactions to the general ledger.

Inventory Control User Guide Chapter 12 Closing Inventory Control Period 181
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 183. • "What is an Inventory Control Period?" on page 182
• "What are Analysis Reports?" on page 182
• "Why do I need to Release Unreleased Documents?" on page 182

What is an Inventory Control Period?


An Inventory Control period is the length of time in which inventory
transactions can occur without interruption.

What are Analysis Reports?


Analysis reports are various inventory calculations that you can print and
review at the close of an Inventory Control period. The Inventory Control
application uses the end period dates to calculate analysis reports.

Why do I need to Release Unreleased Documents?


NOTE Intransit Before you close the Inventory Control period, you need to release all the
documents can remain unreleased documents. The reason for this is so that the Inventory Control
open during period end period can accurately capture period end balances and calculate the average
processing.
stock-on-hand quantity for each item location. If any unreleased documents
remain, the Inventory Control application will not allow you to close the period.

182 Chapter 12 Closing Inventory Control Period Inventory Control User Guide
Procedures in this Chapter
In this chapter, you lean about how to close the Inventory Control period.
• "Closing the Inventory Control Period" on page 183

Closing the Inventory Control Period


Closing the Inventory Control period is a process that enables the Inventory
Control application to share transaction and account information with the
General Ledger application. This process is necessary to keep accounts
across all Lawson applications in balance. The following procedure explains
the process of closing the Inventory Control period.
After you close the Inventory Control period, close the General Ledger period.
For more information on closing an accounting period, see the General
Ledger User Guide.

Need More Details? Check out the following concepts:


• "What is an Inventory Control Period?" on page 182
• "What are Analysis Reports?" on page 182
• "Why do I need to Release Unreleased Documents?" on page 182

STEPS To print a list of unreleased documents


1. Access Unreleased Documents (IC222).
2. Add a job name and description.
3. Define the parameters that determine how you want the job to run.
Consider the following fields.
Document Type Select a value to limit the report to only one type
of inventory document.
Document types include adjustments, bin
transfers, intransit receivings, issues, transfer
issues, and receipts.
Document Type a document code to limit this report to
transactions that were created exclusively for the
document you specified.

4. Submit the job to create the list of unreleased documents.

STEPS To release unreleased documents


1. Access Document Release (IC25.1).
2. Select the company.
3. Select the location.

Inventory Control User Guide Chapter 12 Closing Inventory Control Period 183
NOTE Unreleased 4. Select the document type.
intransit documents
5. Select the unreleased documents you want to release.
can remain unreleased
without affecting period 6. Choose the Change form action.
end processing.

STEPS To update General Ledger transactions


1. Access General Ledger Interface (IC130).
2. Add a job name and description.
3. Select the parameters that determine how to run the report.

IMPORTANT Select No in the Update field to run the report in Report


Only mode the first time you run it. This enables you to review the General
Ledger transactions before you update them.

4. Submit the job.


5. Optional. Standard cost companies can run Standard Cost Calculation
(PO139) to create reversing journal entries for the difference between
purchase order cost and standard cost for matched not received and
received not invoiced accounts. For information, see the Purchase Order
User Guide.

STEPS To close the Inventory Control period


1. Access Closing (IC190).
2. Add a job name and description.
3. Select the company for which you are closing the Inventory Control period.
4. If you are closing the last period of the year, define the period end dates
for the new year.
5. Add the job.
6. Submit the job to close the period.

184 Chapter 12 Closing Inventory Control Period Inventory Control User Guide
TIP Gross margin 7. Optional. Print analysis reports to review period end balances.
return on investment
(GMROI) formulas To Print
are listed in the main
application glossary. List items by gross margin Movement Analysis - GMROI
return on investment (GMROI) (IC152)
percentages. This report suggests
movement classes based on these
percentages
List GMROI percentage for items Gross Margin Return on
in descending order Investment (IC224)
Print inventory turnover based on Inventory Turnover (IC134)
item sales if you use Order Entry
Print inventory turnover based on Inventory Turnover by Issue
item issues if you do not use Order Report (IC135)
Entry
Print a report of inventory valuation Inventory Valuation (IC233)
Valuate inventory as of a specific Period End Valuation (IC234)
date
List inventory item material cost, Lower of Cost or Market Valuation
overhead cost, and average unit (IC235)
add-on cost
Audit posted transactions by Departmental Procurement
period for a specific accounting Expense Inquiry Selection (MM80)
unit and account
List general ledger postings Departmental Procurement
broken down by accounting unit Expense Report (MM280)
and account

Closing an Inventory Control Period under System


Control
If your company uses system control with General Ledger, you need to follow
a special procedure that alerts the application when you have ended the
closing cycle for the Inventory Control application. After you have closed the
Inventory Control period using Closing (IC190), use the following procedure to
end the closing cycle.
1. Access Subsystem Close (IC199) to end the closing cycle.
2. Add a job name and description.
3. Select the parameters needed to complete subsystem close procedures.
4. Choose the change form action.
5. Submit the job.

Inventory Control User Guide Chapter 12 Closing Inventory Control Period 185
186 Chapter 12 Closing Inventory Control Period Inventory Control User Guide
Chapter 13

Managing Cart or Par Locations

Cart or par location management allows you to set up and maintain par
locations and exchange carts. Use cart or par locations to maintain locations
for frequently used items, such as office supplies. This chapter explains how
to set up cart or par locations and replenish those locations.

Before you start Before you set up cart or par locations, you must
define Item Master files for the items included at these locations. For more
information, see "Setting Up Item Master" on page 69.

Inventory Control User Guide Chapter 13 Managing Cart or Par Locations 187
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 191. • "What is a Cart or Par location?" on page 188
• "What happens when I create a Cart or Par location?" on page 188
• "What is a Shelf Location?" on page 189
• "How do I Replenish a Cart or Par Location?" on page 189
• "What is a Par Level?" on page 189
• "Where do I enter account information for Cart or Par Locations?"
on page 189
• "What is a Handheld Terminal?" on page 189
• "How do I Perform a Count of a Cart or Par Location?" on page 189
• "What is the Fill and Kill feature?" on page 190
• "What is a Requester?" on page 190

What is a Cart or Par location?


A cart or par location is generally referred to as an exchange carts or par
location. These locations are stationary or mobile supply areas, including
carts, closets, shelves, or non-moving carts.
In Inventory Control, par locations are stationary supply areas that are
replenished by restocking items. Exchange carts are mobile supply areas that
are replenished by exchanging them with identical, stocked carts.

What happens when I create a Cart or Par location?


When you create a cart or par location, the Inventory Control application
automatically creates an Inventory Control location, requesting location, and
item location. Each shelf location within the cart or par location becomes a
bin location. You only need to create an item master record and Inventory
Control creates the rest.

Maintain Inventory Control created records


You can view item location and bin records in Inventory Control; however, you
cannot make changes on those forms. If you want to change data for the cart
or par location, you must perform all changes and maintenance tasks on the
same form you used to create the cart or par location.

188 Chapter 13 Managing Cart or Par Locations Inventory Control User Guide
What is a Shelf Location?
A shelf location is a specific area within a cart or par location for each item.
A shelf location need not be a physical shelf, but rather an area designated
for a specific item. Each shelf location becomes a bin location within the
Inventory Control application.

How do I Replenish a Cart or Par Location?


All cart or par locations, by default, are replenished from another location. You
decide if you want to replenish from a bin or from a vendor. If you replenish
from a vendor, the application calculates the average leadtime days based on
the requisition dates and receiving dates for the vendor you select. Generally,
purchase orders have too long of a leadtime to replenish the frequently used
items in a cart or par location.

What is a Par Level?


A par level is the maximum supply of a particular item. Par level is used
to define optimal stock-on-hand for an item at a location based on usage.
Establish a par level by analyzing an item’s usage in a specific department
over a specific period of time.

Where do I enter account information for Cart or Par


Locations?
You select account information at either the header or line level. If you select
account information at the header level, those accounts default to each line.
You may enter account information for each item to override the location
account. You can also enter a general ledger category for every cart or par
location or it can default from the from location.

What is a Handheld Terminal?


A handheld terminal (HHT) is a small, portable computer used to automate the
cart/par location replenishment process. Item counts are manually entered
into the HHT and the counts are uploaded into Inventory Control.

How do I Perform a Count of a Cart or Par Location?


Because the cart or par location is not an inventory location, you cannot
perform a count. Instead, you can determine the value of the location when
at full par level. Also, you can have the application calculate suggested par
levels to maintain an efficient amount of stock.

Inventory Control User Guide Chapter 13 Managing Cart or Par Locations 189
What is the Fill and Kill feature?
When you create requisitions, you determine whether you fill backorders
or cancel (kill) backorders. A backorder occurs when you request more
items than exist in inventory. You decide whether to fill the backorder when
inventory becomes available or cancel the backorder. Because cart or par
locations are replenished on a regular basis, generally daily, you can kill the
backorder and add the missing items the next time the requisition is created.

What is a Requester?
A requester is the person, department, or function that enters a requisition.
Each requisition uses a code defined in the Requester field to identify the
originator of the requisition. You may define a default company, requesting
location, approval code, and item entry code. For more information on setting
up requesters, see the Requisitions User Guide.

190 Chapter 13 Managing Cart or Par Locations Inventory Control User Guide
Procedures in this Chapter
To set up cart/par locations, complete the following procedures.
• "Setting up Cart or Par Locations" on page 191
• "Defining Account Information" on page 193
• "Assigning Items to the Cart or Par Location" on page 193
• "Replenishing Cart or Par Locations" on page 197
• "Mass Updating Cart/Par Locations" on page 200
• "Updating Suggested Par Levels" on page 200
• "Updating the Item Location Reorder Point" on page 202

Setting up Cart or Par Locations


You need to set up each par location or exchange cart before you can process
inventory. This procedure explains how to set up these locations.

Need More Details? Check out the following concepts:


• "What is a Cart or Par location?" on page 188
• "What is a Par Level?" on page 189
• "What is a Count Sheet?" on page 108
• "Where do I enter account information for Cart or Par Locations?"
on page 189

STEPS To set up cart or par locations


1. Access Cart, Par Location (IC81.1).
2. Define header and line information. Consider the following fields.
Par Location Type the name of the par location.
Copy from Select a cart or par location to copy to another
Location cart or par location.
Location Type Select a value indicating the type of location
(exchange cart or par location).
Single Document Indicate whether to create one purchase order
to a PO from one requisition.
From Company Select a From company which is the source of
the replenish items.
From Location Select a From location to replenish the items.
GL Category Select a general ledger category for this cart/par
location at the header level, if you want to assign
a general ledger category for all items. If you do
not enter a general ledger category here or at the
item level, the general ledger category defaults
from the From location.

Inventory Control User Guide Chapter 13 Managing Cart or Par Locations 191
Shelf Location Enter the shelf location for the item.
Item Select the item belonging to the par location.
Par Level Type the par level for this location. This level acts
as the reorder point.
UOM The default transaction unit of measure for this
item at this location.
Chrg Indicate whether this item at this location is
chargeable to the patient.
GL Cat Select a general ledger category for this item.
This overrides the general ledger category
from the cart/par location or the general ledger
category from the From location in the header.

3. Optional. Choose the More button to display cart/par location item detail.
a. On the Replenish tab, determine the replenishment options.

Primary Vendor Select these fields to replenish from a specific


and Purchase vendor and the vendor’s purchase from
From Location location.
From Company, Select these fields to replenish from a different
From Location, From company, From location and/or bin.
and From Bin
Suggested Par Enter the suggested par level. This quantity is
Level calculated by running Par Location Utilization
(IC182). For more information, see "Updating
Suggested Par Levels" on page 200.
Minimum Order The minimum reorder quantity lets you limit
when a replenishment requisition line is
created for a par location.

b. On the User Fields tab, enter user-defined fields for the Item Location
file.
c. On the Miscellaneous tab, consider the following fields.

Standard Cost Enter the standard cost for the item at this par
location.
No Charge If you select Yes in this field, the item’s cost is
zero. No charge invoices are not passed to the
Accounts Receivable application for collection.
Status Indicate whether the item at this location is
active or inactive. If it is set to Inactive, no
transactions can be entered for this item at
this location (however, transactions already in
process can be completed).

4. Optional. Choose the Change button to add, change, or delete par


locations for a specific item.
5. Choose the Add form action to add the cart or par location.

192 Chapter 13 Managing Cart or Par Locations Inventory Control User Guide
If you have ProcessFlow, a service is available to add, change, and delete
a par location. For information, see the ProcessFlow Reference Guide.

Defining Account Information


After you set up the cart or par location, you must define accounting
information for that location. This procedure explains how to define account
information for the cart or par locations.

Need More Details? Check out the following concepts:


• "Where do I enter account information for Cart or Par Locations?"
on page 189

STEPS To define account information


TIP On Cart, Par 1. Access General Ledger Category (IC04.1).
Location (IC81.1) in
2. Define header information.
the GL Category field,
choose the Define form 3. Select account information for the cart or par location.
action to access General
Ledger Category
(IC04.1). NOTE You assign account information when you assign items in the next
procedure.

4. Choose the Add form action.

Options for defining account information


The following option is available for defining account information. To save
time, copy a general ledger category from another location to the cart or par
location. On General Ledger Category (IC04.1) inquire on the location. Then,
change the location to the cart or par location and choose the Add form action.

Assigning Items to the Cart or Par Location


You assign items to the cart or par location after the location is set up. Assign
items and the related account information. This procedure explains how to
assign items to an existing cart or par location.

Before you start Before you assign items to the location, you must
define account information. For more information, see "Defining Account
Information" on page 193.

Inventory Control User Guide Chapter 13 Managing Cart or Par Locations 193
Need More Details? Check out the following concepts:
• "What is a Shelf Location?" on page 189
• "What is a Par Level?" on page 189
• "How do I Replenish a Cart or Par Location?" on page 189

194 Chapter 13 Managing Cart or Par Locations Inventory Control User Guide
Figure 33. Procedure flow: Assigning items to cart or par location

1
Access Cart/Par
Location
(IC81.1)

2
Inquire on existing
cart or par location
IC81.1

3
-Conditional-
Select a GL
Category
IC81.1

4
Type sequence
number
IC81.1

5
Type shelf location
IC81.1

6
Type item
information
IC81.1

7
- Conditional -
Define purchasing
information
IC81.2

8
Choose the
Change form
action
IC81.1

STEPS To assign items to the cart or par location


1. Access Cart, Par Location (IC81.1).

Inventory Control User Guide Chapter 13 Managing Cart or Par Locations 195
TIP Type company 2. Inquire on existing cart or par location.
and par location, then
choose the Inquire form 3. Type header information. Consider the following fields.
action. From Company Select a From Company. This will default to the
item level.
From Location Select a From Location. This will default to the
item level.
GL Category Select the GL Category for this cart/par location
at the header level if you want to assign a GL
Category for all items. If you do not enter a
GL Category here or at the item level, the GL
Category will default from the From Location.

4. Type a sequence number.


5. Type shelf location.
6. Type item information. Consider the following fields.
Par Level Type the par level for this location. This level acts
as the reorder point.
Chrg (Charge) Select Yes if this item is patient chargeable.
GL Cat (General Select a GL Category for this item. This overrides
Ledger Category) the GL Category from the cart or par location or
the GL Category from the From Location in the
header.

7. If you replenish items from a vendor or a bin, or you want to assign a


different vendor or from company at the item level, choose the More
button for a specific item to define purchasing information for that item.
a. Consider the following options.

To Select
Replenish from a vendor Primary Vendor and Purchase
From Location fields
Replenish from a different From From Company, From Location,
Company and From Bin fields
Limit when a replenishment Minimum Order field
requisition line for a par location
is created

You can either change the Vendor information (Primary Vendor and
Purchase From Location fields) or the From Company information
(From Company, From Location, and From Bin fields).
b. Choose OK.
8. Choose the Change form action.

Options for assigning items to cart or par locations


The following options are available for assigning items to cart or par locations.
Use Par Location Item Mass Change (IC82.1) to change item information at

196 Chapter 13 Managing Cart or Par Locations Inventory Control User Guide
more than one cart or par location at a time. Also, use IC82.1 to search for an
item at alternate cart or par locations.

Related Reports and Inquiries


To Use
List all items at a par location either Par Inventory Worksheet (IC281)
alphabetically or in order of location
Evaluate stock-on-hand quantities Par Location Valuation (IC283)
based on the costing method defined
for your company
Inquire on par utilization for a Detail Par Location Utilization by
selected period (online inquiry) Period (IC84.1)
Print a report of par utilization for a Detail Par Loc Utilization (IC285)
selected period (batch report)

Replenishing Cart or Par Locations


To maintain stock at par locations and exchange carts, you must replenish
inventory. You set up the replenishment information when you assigned items
to the location. You create a requisition to replenish a cart or par location, and
the requisition creates either a demand on stock (pick ticket) or a demand to
a vendor (purchase order).
Par items can be replenished from a different company/location than what is
set on the par header.

Need More Details? Check out the following concepts:


• "What is a Cart or Par location?" on page 188
• "What is a Par Level?" on page 189
• "What is a Handheld Terminal?" on page 189
• "How do I Perform a Count of a Cart or Par Location?" on page
189
• "What is the Fill and Kill feature?" on page 190

Inventory Control User Guide Chapter 13 Managing Cart or Par Locations 197
Figure 34. Procedure flow: Replenishing cart or par locations

1
Access Par
Inventory
Worksheet
(IC281)

2
Print Count Sheets
IC281

3
Access Par
Location Counts
(IC83.1)

4
Define header
information
IC83.1

5
Display cart or par
items
IC83.1

6
Add the requisition
IC83.1

7
Type item
quantities
IC83.1

8
Choose the
Change form
action
IC83.1

9
Release the
requisition
IC83.1

10
Process in
Requisitions

STEPS To replenish cart/par locations


1. Access Par Inventory Worksheet (IC281).
2. Print count sheets.

198 Chapter 13 Managing Cart or Par Locations Inventory Control User Guide
NOTE You may also 3. Access Par Location Counts (IC83.1).
perform this procedure
4. Define header information.
using an HHT.
5. Choose the List form action to display cart or par items.
6. Add the requisition.
7. Type item quantities in the Count field.
8. Choose the Change form action.

IMPORTANT After you release the requisition, you can maintain item
counts only for the items on the requisition. If you need to add more
items, you must create another requisition.

9. Release the requisition.


10. Use the Requisitions application to continue processing the requisition
created for your cart or par location. For more information, see the
Requisitions User Guide.

Related Reports and Inquiries


To Use
List all items at a par location either Par Inventory Worksheet (IC281)
alphabetically or in order of location
Evaluate stock-on-hand quantities Par Location Valuation (IC283)
based on the costing method defined
for your company
Print detail usage of an item (at a par Detail Par Loc Utilization (IC285)
location or report group) by period
(batch report)
Print detail usage of an item (at a par Detail Par Location Utilization by
location or report group) by month Month (IC84.1)
(online inquiry)

Inventory Control User Guide Chapter 13 Managing Cart or Par Locations 199
Mass Updating Cart/Par Locations
You can perform mass changes to cart or par locations and add, replace,
or delete an item on multiple carts. Also, you can change any value for an
item at the cart/par location, and print a report (or update and report) of the
results of the change you made.

STEPS To mass update a cart/par location


1. Run Par Cart Mass Changes (IC331).
2. Determine what will be affected by the change you make. Consider the
following tabs.
Main Enter the company, par location or report group,
item, and update method. The update selections
are report or update mode.
Change Field Enter a new bin sequence, shelf location, par
level, or unit of measure. You can select only one
field for change.
Itemsrc Change the vendor or purchase from location,
or replace an item from one company, location,
or bin to another.
Item Change Replace one item with another, or you can add
or delete an item.

Related Reports and Inquiries


To Use
List all items at a par location either Par Inventory Worksheet (IC281)
alphabetically or in order of location
Evaluate stock-on-hand quantities Par Location Valuation (IC283)
based on the costing method defined
for your company
Print detail usage of an item (at a par Detail Par Loc Utilization (IC285)
location or report group) by period
(batch report)
Print detail usage of an item (at a par Detail Par Location Utilization by
location or report group) by month Month (IC84.1)
(online inquiry)

Updating Suggested Par Levels


You can print a report of recommended par utilization by par location or
report group by running Par Location Utilization (IC182). When setting up
a par location, you can enter a suggested reorder point (par level). If you
entered such a par level and run IC182 in Update mode, you are updating
the suggested par level from Cart, Par Location (IC81.1) and printing it on

200 Chapter 13 Managing Cart or Par Locations Inventory Control User Guide
IC182. If you do not run IC182 in Update mode, the suggested par level is not
updated and IC182 only prints the recommended par level.
For more information, see "Setting up Cart or Par Locations" on page 191.

Need More Details? Check out the following concepts:


• "What is a Cart or Par location?" on page 188
• "What is a Par Level?" on page 189

STEPS To update suggested par levels


• Access Par Location Utilization (IC182). Consider the following fields.
Report Group Select a report group that you defined using
Report Group (IC03.1). You can select a report
group or par location, but not both.
Par Location If you did not select a report group, select a par
location. Par locations are set up using Cart, Par
Location (IC81.1).
Replenish Days Replenish Days is the number of days between
replenishments.
Date Enter a date range to be included when
calculating the suggested par level.
Minimum Samples Enter the minimum number of samples
(transactions) needed to trigger the
replenishment. Lawson recommends 30
samples.
Sort Option Indicate how to sort the report within a par
location:
• Item Number sorts by item number.
• Average Daily Usage (ascending) sorts by
usage in ascending order.
• Average Daily Usage (descending) sorts by
usage in descending order.
• Item Description sorts by item description.
• Shelf Location sorts by shelf location within
the par location.
Print Option Indicate how to print items. Select Yes to
print items on the par location that have a
recommended par level that is different from the
current par level. Select No to print all items on
the par location.
Update Option Indicate whether to update the suggested par
level from Cart, Par Location (IC81.1). Select Yes
to perform the update or select No to only print
the recommended par level on the report.

Inventory Control User Guide Chapter 13 Managing Cart or Par Locations 201
Related Reports and Inquiries
To Use
List all items at a par location either Par Inventory Worksheet (IC281)
alphabetically or in order of location
Evaluate stock-on-hand quantities Par Location Valuation (IC283)
based on the costing method defined
for your company

Updating the Item Location Reorder Point


You enter an item’s reorder point during item location setup. By running Par
Level Load (IC183), you update that reorder point with the suggested reorder
point that was calculated in Par Location Utilization (IC182).

STEPS To update the item location reorder point


1. Access Par Level Load (IC183).
2. Select the company and report group or location. To select all locations,
leave the Par Location field blank.
You must have previously defined the report group using Report Group
(IC03.1) and the par location using Cart, Par Location (IC81.1).

202 Chapter 13 Managing Cart or Par Locations Inventory Control User Guide
Chapter 14

Using Attribute Matrix Attributes

This chapter describes the Lawson Attribute Matrix application and provides
information on setting up attributes for use with Inventory Control. Attribute
Matrix is a powerful tool that increases processing, reporting, and inquiry
capabilities.

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 203
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures in this chapter.
"Procedures in this
Chapter" on page 212. • "What is Attribute Matrix?" on page 204
• "What is an Attribute?" on page 205
• "What is an Element?" on page 206
• "Where Can I Use Attributes?" on page 206
• "What is a List?" on page 208

What is Attribute Matrix?


NOTE The system code Attribute Matrix is a powerful tool used to increase reporting, inquiry, and
for Attribute Matrix is processing capabilities. Attribute Matrix can be integrated within the following
MX. Lawson applications:
• Accounts Payable
• Accounts Receivable
• Asset Management
• Billing
• Billing and Revenue Management
• Cash Management
• General Ledger
• Inventory Control
• Invoice Matching
• Lease Management
• Order Entry
• Project Accounting
• Purchase Order
• Requisitions
• Strategic Ledger
• Warehouse
• Production Order

Attribute Matrix and Inventory Control


Inventory Control uses attributes for the following purposes:
• To easily group items with similar attributes for analysis and reporting
• To provide alternative ways to group data for reporting and inquiry
• To make dynamic account generation possible
• To group inventory locations with similar attributes for analysis and
reporting

204 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
What is an Attribute?
An attribute is a field that holds information you can use to group records for
reporting, inquiry, and processing. Specifically, attributes hold information
about:
• Activities for Project Accounting and Billing and Revenue Management
• Accounting units and accounts for Accounts Payable, General Ledger,
Inventory Control, Purchase Order
• Assets for Asset Management
• Cash codes for Accounts Payable and Cash Management
• Customers for Accounts Receivable, Order Entry, Billing, Warehouse
• Items for Inventory Control, Purchase Order, Order Entry, Warehouse,
Production Order, Requisitions
• Inventory locations for Inventory Control
• Leases for Lease Management
• User analyses for Strategic Ledger
• Vendors for Accounts Payable, Invoice Matching, Purchase Order

Example: Using Attributes with Items


For example, you may want to find all items that belong to a specific sales
class. Using item attributes, you can run a report for all items in a specific
region, for example, the Western sales region.

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 205
What is an Element?
An element defines the maximum number of characters and the data type for
an attribute value. An element must be assigned to every attribute and the
element must exist before you can define an attribute that uses that element.
An element can be Lawson-defined or user-defined. You can define the
following types of elements:
• Alpha type (up to 32 characters)
• Numeric type (up to 18 characters)
• Date type (eight characters)
NOTE Lawson-defined • Signed numeric (up to 99 characters)
elements are
pre-loaded, along You can have more than one attribute use an element. The following table
with Lawson-defined shows an additional example of Lawson-defined attributes and corresponding
attributes, using Lawson-defined elements:
Attribute, Element Load
(MX100). Attribute Element Type Size
Major Sales Major Class Alpha 4
Class

You can also create user-defined elements within the data type and size
restrictions listed above. User-defined elements can be more generic
than Lawson-defined elements, and can be associated with more than
one attribute. This table shows examples of user-defined attributes and
user-defined elements:
Attribute Element Type Size
Color Alpha 10 Alpha 10
Size Numeric 5 Numeric 5

You can also associate a Lawson-defined element with a user-defined


attribute. For example, you might use the Item element (Lawson-defined,
Alpha15) with the user-defined item attributes.

Where Can I Use Attributes?


NOTE An attribute can An object type identifies where an attribute can be used. Each attribute must
be used with more than be associated with at least one object type. Object types are Lawson-defined.
one object type. The following table lists the object types that can be associated with attributes
in Inventory Control:
Object type For attributes assigned to
ITEM Items
ACCNT Accounts
ACCTU Accounting units
ICLOC Inventory locations

206 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
NOTE Ignore the The following additional object types are available to be associated with
following object types: attributes in other Lawson applications:
AMBKS, AMITM,
APVND, ICLOC, ICITM, For attributes
and POBUY. These Object type assigned to In this application
object types are used
only by Lawson-defined ASSET Assets Asset Management
data mart attributes and
cannot be assigned by ACCNT Accounts Accounts Payable,
users. General Ledger,
Inventory Control,
Purchase Order
ACCTU Accounting units Accounts Payable,
General Ledger,
Inventory Control,
Purchase Order
CSHCD Cash Code Accounts Payable and
Cash Management
CUST Customer Accounts Receivable,
Order Entry, Billing,
Warehouse
GLTRN General Ledger General Ledger
transactions
ITEM Item Inventory Control,
Purchase Order, Order
Entry, Warehouse,
Production Order,
Requisitions
LEASE Leases Lease Management
ANLYS User analyses Strategic Ledger
SLTRN Strategic Ledger Strategic Ledger
transactions
VENDR Vendor Accounts Payable,
Invoice Matching,
Purchase Order

Using Attributes with Items


When you use attributes with items, you have the flexibility to store additional
information and select specific items for reports, inquiries and processing.
The previous example shows how you can run reports and sales analysis
based on items from a specific sales region.

Using Attributes with Accounts


You can use attributes to classify and group accounts. For example, you
might want to determine how well your organization can meet its immediate
current debt obligations. To do this you want to look only at assets that can be
converted to cash quickly. You could classify select asset accounts with an
attribute of Liquid Asset and compare just those accounts to your liabilities.

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 207
Once attributes are assigned to detail accounts, the attributes can be used
with data marts for analysis purposes. For more information about data marts,
see the Organizational Effectiveness: Data Mart Setup Guide.
An alternative to using attributes with accounts is to use account groups.
Account groups let you combine sequential or nonsequential account ranges
into a group for reporting and inquiries. For example, to define a report on
the consolidated totals of accounts 4000 through 4999 and 6000 through
6999, you can define an account group to include just those accounts. If you
would select the sequential range of 4000 through 6999, all account would
be included.
When creating account groups, you can only select accounts by account
number. In contrast, using attributes lets you group accounts using a wide
range of characteristics for selection.

Using Attributes with Accounting Units


When you use attributes with accounting units, you have the flexibility to view
your organization from different perspectives without actually changing your
company structure. The previous example shows how ABC Company used
attributes to view their profitability based on the region in which a store was
located. They could associate additional attributes with each accounting unit
that would let them view profitability by store size, by person responsible,
and more.
Once attributes are assigned to accounting units, the attributes can be used
with data marts for analysis purposes. For more information about data marts,
see the Organizational Effectiveness: Data Mart Setup Guide.
An alternative to using attributes with accounting units for grouping is to use
level groups. Level groups let you combine sequential or nonsequential level
ranges into a group for reporting and inquiries. For example, to define a report
to show the consolidated totals for accounting units with a level addresses
of 01-101, 01-103, and 01-109, you can define a level group to include just
the three ranges representing each accounting unit. If you would select the
sequential range 01-101 to 01-109, the range includes values from other
accounting units.
When creating level groups, you can only select accounting units by level
address. In contrast, using attributes you can group accounting by a wide
range of characteristics for selection.

What is a List?
A list is a set of items. For example, you can create a list that includes any
items that belong to a specific sales class (such as the Western sales region).
A list can also be a set of accounting units and accounts. For example, you
can create a list that includes any accounting units where the region is Central
and the store size is large.
Lists can be automatic or manual. Automatic lists can be defined using a
combination of user-defined and Lawson-defined attributes.

208 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
Using Lists
Lists are used in Inventory Control for reporting and inquiry. The following
examples describe some of the places you can use lists:
• Selecting items for item searches on Item Search (IC30.1)
• Selecting items for reporting on inventory turnover using Inventory
Turnover (IC134)
• Selecting items for reporting on item availability using Stock Status
Report (IC145)
• Selecting items for reporting on field maintenance activity occurring in the
Item Master file using Item Master Audit Trail (IC191)
• Selecting items for reporting on inventory valuation using Inventory
Valuation (IC233)
• Selecting items for printing lists of killed items using Killed Item Report
(IC243)
• Selecting items, accounting units, and accounts for reporting on item
transaction history using Transaction History Report (IC220)
• Selecting items, accounting units, and accounts for inquiring on item
transaction history using Transaction History Inquiry (IC55.1)
• Selecting items to accumulate inventory transaction amounts using
Transactions by Document Type (IC287)
• Selecting accounting units and accounts for inquiring and reporting
on general ledger postings using Departmental Procurement Expense
Selection Inquiry (MM80) and Departmental Procurement Expense
Report (MM280)
• Selecting inventory locations using:
• Item Location Balances (IC31.1)
• Availability by Location (IC40.1)
• Inventory Stock Status (IC44.1)
• Inventory Status (IC46.1)
• Daily Transaction Summary (IC37.1)
• Availability Report (IC223)
• Stock Status Report (IC145)
• Unreleased Documents (IC222)

Automatic Lists
To create an automatic list, you select attributes belonging to the object
type of your choice (for example, ITEM, ACCNT, or ACCTU) and define
value ranges for these attributes. Attribute Matrix automatically builds a list
of members that meet the criteria specified in the list. Automatic lists are
updated automatically any time you use the list.

Automatic List Example for Items


This example shows how you could create an automatic list that lets you
group items.
1. Create the following user attribute:

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 209
Attribute: Sales Class
List Name: Sales Class
Object type: Item (ITEM)
Element: Alpha 5
Values: West to West region

2. For each item, add the value West to West region to the attribute Sales
Class for the item.
3. Create a list named Sales Class with the following attribute value range:
SIZE: From West to West

IMPORTANT Preview the list to verify that the appropriate items are
selected.

4. Select the Sales Class list on reports or inquiries to include only items
from the West region.

Automatic List Example for Accounting Units


This example shows how you could create an automatic list that lets you
group accounting units by the region in which they are located.
1. Create the following user attribute:
Name: REGION
Object type: Accounting Unit (ACCTU)
Element: Alpha 9
Values: NORTHWEST
CENTRAL
SOUTHEAST

2. For each accounting unit that is located in the northwestern region, add
the value NORTHWEST to the attribute REGION for the accounting
unit in GL20.1.
3. Create a list named NORTHWEST (for accounting units located in the
northwestern region) with the following attribute value range:
REGION: From NORTHWEST To NORTHWEST

IMPORTANT Preview the list to verify that the appropriate accounting


units are selected.

4. Select the NORTHWEST list on reports or inquiries to include only


accounting units located in the northwestern region.

210 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
Manual Lists
A manual list lets you select specific items. Manual lists are not based on
attributes. For example, you can select individual items without identifying an
attribute that is common to all of them. The only members of a manual list
are those you define.
Creating a manual list, as the name implies, is a manual process. Any
changes to the list, such as adding or removing items, must also be done
manually. For these reasons, manual lists are not often used to create large
lists.
You can convert an automatic list to a manual list. A common practice is to
create an automatic list first, convert it to a manual list, and then manually add
or remove a few select items. It’s important to note that you cannot convert a
manual list back to an automatic list.

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 211
Procedures in this Chapter
To make use of attributes, you must set up attributes in Attribute Matrix
and assign values to the attributes. Use one of the following procedures
to complete required setup.
• "Loading Lawson-Defined Attributes and Elements" on page 212
• "Defining an Attribute" on page 212
• "Assigning Attribute Values to an Item" on page 215
• "Assigning Attribute Values to an Accounting Unit" on page 216
• "Assigning Attribute Values to an Account" on page 217
• "Assigning Attribute Values to an Inventory Location" on page 219
• "Defining an Automatic List" on page 219
• "Defining a Manual List" on page 222
• "Interfacing Valid Attribute Value Ranges to Attribute Matrix" on page
224

Loading Lawson-Defined Attributes and Elements


NOTE Loading Before you define attributes, you must load the Lawson-defined attributes and
Lawson-defined elements. If you will be using transaction attributes, you must also load the
attributes is a procedure available subledger fields than can be linked to any application that uses
you only need to perform
once. attributes. Use this procedure to load Lawson-defined data used when
defining attributes.

STEPS To load Lawson-defined attributes


1. Run Attribute, Element Load (MX100) to load attributes and elements
required in Attribute Matrix and used in other subsystems.
2. If you will use transaction attributes, run Subledger Attribute Load (GL106)
to load available subledger fields that can be linked to transactions.

Defining an Attribute
To define an attribute, you need to give it a name and associate it with
an element and object type. Optionally, you can assign valid values to
the attribute, limit an attribute’s use to the items within an item group list,
and indicate whether an attribute is required. Use this procedure to define
attributes.

Need More Details? Check out the following concepts:


• "What is Attribute Matrix?" on page 204
• "What is an Attribute?" on page 205
• "Where Can I Use Attributes?" on page 206

212 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
Before you start Before defining attributes, load Lawson-defined attribute
definitions and available subledger fields for transaction analysis. For more
information, see "Loading Lawson-Defined Attributes and Elements" on page
212.

STEPS To define an attribute


1. If an appropriate element for the attribute does not exist, use Element
(MX00.2) to define the element. Consider the following fields.

TIP Choose Define in


Element Name Type a name for the element. A user-defined
the Element Name field
on Attribute (MX00.1) to element name does not have to match the
define an element. attribute name, since the element can be used by
several attributes.
Data Type Select one of the following data types:
• A (Alpha)
• D (Date)
• N (Numeric)
• S (Signed Numeric)
Field Size Type a field size. The maximum field size
depends on the data type:
• Alpha (up to 32 characters)
• Date (eight characters)
• Numeric (up to 18 characters)
• Signed Numeric (up to 99 characters)

2. Use Attribute (MX00.1) to define the attribute. Consider the following


fields.
Attribute This field contains the attribute’s name.
Column Heading Leave this field blank, it is used only for
transaction attributes.
Element Name Select a Lawson-defined or user-defined element
to identify the attribute’s data type and size.

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 213
From Value/ You can assign ranges of valid values to
Through Value the attribute. Defining valid values ensures
fields consistency for data entry. If you do not define
valid values, any entry valid for the attribute’s
data type and size will be accepted.

TIP Defining valid values makes your lists more


accurate.

NOTE To interface valid attribute value ranges


from a non-Lawson system, use Attribute Valid
Value Interface (MX160). For more information,
see "Interfacing Valid Attribute Value Ranges to
Attribute Matrix" on page 224.

3. After adding the attribute, choose the Objects button to open Associate
Attribute to Objects (MX00.3) and assign valid object types to the attribute.
Consider the following fields.
Object Type Select the object types you want to assign to the
attribute. The object type determines where you
can use the attribute. For Inventory Control, you
can assign the following object types:
• Item (ITEM)
• Accounting unit (ACCTU)
• Account (ACCNT)
You can assign several object types to the same
attribute.
Required Indicate whether the attribute is required.
Apply to Object You can associate the attribute with an item,
Group accounting unit, or account list to limit its use
to items associated with an group in the list.
Restricting use of an attribute helps you better
manage attributes when you have several groups
that track different kinds of business operations.

Followup Tasks
• After defining the attribute, assign attribute values to items. For more
information, see "Assigning Attribute Values to an Item" on page 215.
• Assign attribute values to accounting units. For more information, see
"Assigning Attribute Values to an Accounting Unit" on page 216.
• Assign attribute values to accounts. For more information, see "Assigning
Attribute Values to an Account" on page 217.

214 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
Related Reports and Inquiries
To Use
View a listing of elements Element Listing (MX200)
View a listing of attributes (Lawson- Attribute Listing (MX201)
or user-defined) for an object type

Assigning Attribute Values to an Item


After defining attributes for the Item (ITEM) object type, you can assign
attribute values to an item. This procedure describes the process for
assigning attribute values to a user-defined attribute within an item.

Before you start Define attributes before assigning values.

STEPS To assign attribute values to an item


1. Access Item Attributes (IC56.1).
2. Select the item to which you want to assign attributes.
3. Assign attribute values to an item. Consider the following fields.
Value Type or select a value in this field to assign
attribute values to the item.

Related Reports and Inquiries


To Use
View a listing of attributes (Lawson- Attribute Listing (MX201)
or user-defined) for an object type

Options for Assigning Attribute Values


• Choose the By Attribute button on Item Attributes (IC56.1) to access
Values by Item Attributes (IC56.2). Use this subform to assign attribute
values for one attribute to multiple items. All eligible items display, and
you can populate attribute values for the attribute specified. Choose the
Preview button to list the items within the attribute list. After choosing the
Preview button, select or enter the attribute.
• Choose the Manual List button on Item Attributes (IC56.1) to manually
update the attribute list for an item. If you choose the Convert to Manual
button, the attribute list is converted to Manual. Once converted, the
attribute list cannot be Automatic again.
• Run Attribute Value Population (MX500) to assign a user-defined attribute
value to items in an attribute list. This program lets you overwrite
previously assigned attribute values.

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 215
Assigning Attribute Values to an Accounting Unit
NOTE Assign values After defining attributes for the Accounting Unit (ACCTU) object type, you can
for Lawson-defined assign attribute values to an accounting unit. This procedure describes the
attributes by filling in process for assigning attribute values to a user-defined attribute within an
fields on Accounting
Unit-Account (GL20.1), accounting unit.
such as specifying the
Person Responsible.
Before you start Define attributes before assigning values.

STEPS To assign attribute values to an accounting unit


TIP For efficiency, 1. Access Accounting Units-Accounts (GL20.1).
assign attributes as you
2. Inquire on the accounting unit to which you want to assign attributes.
define accounting units.
3. Choose the Attributes link to access Attributes (GL20.7). Use this form to
assign values for multiple attributes to a single accounting unit.

IMPORTANT Only user-defined attributes defined for the Accounting Unit


(ACCTU) object type in Attribute (MX00.1) display on GL20.7. Define
values for Lawson-defined attributes by filling in fields on Accounting
Units-Accounts (GL20.1), such as specifying the Person Responsible.

4. Assign attribute values to an accounting unit. Consider the following fields.


Copy From To assign accounting unit attribute values
Template to the accounting unit based on an attribute
template, select an attribute template and
select the Change form action. The system
populates attribute values from the template to
the accounting unit.
An alternative way to assign values based on a
template is to select a template in the Attribute
Template field on the Main form tab of Accounting
Units-Accounts (GL20.1).

TIP You can assign values from a template to a


new or existing accounting unit. The new values
are added without overriding existing values.

Value Type or select a value in this field to assign


attribute values to the accounting unit.

216 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
Options for Assigning Attribute Values
TIP The Position To • Choose the By Attribute button on Attributes (GL20.7) to access Values
fields default to the by Attribute (GL20.5). Use this subform to assign attribute values for one
accounting unit you have
selected. To display all user-defined attribute to multiple accounting units. You can only select
eligible accounting units, user-defined attribute values for the ACCTU (Accounting Unit) object
delete any values in the type attributes defined in Attribute (MX00.1). All eligible accounting units
Position To fields. display, and you can populate attribute values for the attribute specified.
• To interface accounting unit attribute values from a non-Lawson system,
use Accounting Unit Attribute Interface (GL162).
• Run Attribute Value Population (MX500) to assign a user-defined attribute
value to accounting units based on an attribute list. This program lets you
overwrite previously assigned attribute values. For example, you might
use this program to change the regional manager assigned to a group of
accounting units, such as when all stores in the central region, previously
managed by SMITH, are now managed by JOHNSON.

Assigning Attribute Values to an Account


NOTE Assign values After defining attributes for the Accounts (ACCNT) object type, you can assign
for Lawson-defined attribute values to a summary or detail account. This procedure describes
attributes by filling the process for assigning attribute values to a user-defined attribute within
in fields on Chart of
Accounts (GL00.1), an account.
Detail Accounts
(GL00.3), Account
Information (GL00.4), Before you start Define attributes before assigning values.
and Summary Account
Options (GL00.5).

STEPS To assign attribute values to an account


1. Access Chart of Accounts (GL00.1).
2. Access the appropriate form to assign attributes.
To Choose
Assign attributes to a summary The Attribute link on GL00.1
account to access Summary Account
Attributes (GL16.1).
Assign attributes to a detail The Accounts link on GL00.1 to
account access Detail Accounts (GL00.3)
and then choose the Attribute
link on GL00.3 to access Detail
Account Attributes (GL16.2).

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 217
3. Use GL16.1 or GL16.2 to assign attributes to accounts. Consider the
following fields.
Copy From To assign values to multiple attributes for a single
Template account based on an attribute template, select an
attribute template and select the Change form
action. The system populates attribute values
from the template to the account.

TIP You can assign values from a template to


a new or existing account. The new values are
added without overriding existing values.

Attribute Value Type or select a value in this field to assign


attribute values to the accounting unit.

Options for Assigning Attribute Values


• Run Attribute Value Population (MX500) to assign values for user-defined
attributes to accounts based on an attribute list. This program lets you
overwrite previously assigned attribute values. For example, use this
program to change the attribute value assigned to a range or group of
accounts.
• Choose the By Attribute link on Summary Account Attributes (GL16.1) or
on Detail Account Attributes (GL16.2) to assign attribute values for a
user-defined attribute to multiple accounts within the chart.

218 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
Assigning Attribute Values to an Inventory Location
After defining attributes for the Inventory Location (ICLOC) object type, you
can assign attribute values to an inventory location. This procedure describes
the process for assigning attribute values to a user-defined attribute within
an inventory location.

Before you start Define attributes before assigning values.

STEPS To assign attribute values to an inventory location


1. Access IC Location Attributes (IC02.3).
2. Select the inventory location to which you want to assign attributes.
3. Assign attribute values to the inventory location. Consider the following
field.
Value Type or select a value in this field to assign
attribute values to the inventory location.

Related Reports and Inquiries


To Use
View a listing of attributes (Lawson- Attribute Listing (MX201)
or user-defined) for an object type

Options for Assigning Attribute Values


• Choose the By Attribute button on IC Location Attributes (IC02.3) to
access Values by IC Location Attributes (IC02.4). Use this subform to
assign attribute values for one attribute to multiple inventory locations. All
eligible inventory locations display, and you can populate attribute values
for the attribute specified. Choose the Preview button to list the inventory
locations within the attribute list. After choosing the Preview button, select
or enter the attribute.
• Choose the Manual List button on IC Location Attributes (IC02.3) to
manually update the attribute list for an inventory location. If you choose
the Convert to Manual button, the attribute list is converted to Manual.
Once converted, the attribute list cannot be Automatic again.
• Run Attribute Value Population (MX500) to assign a user-defined attribute
value to inventory locations in an attribute list. This program lets you
overwrite previously assigned attribute values.

Defining an Automatic List


An automatic list is a group of items that have common attribute values. You
can use automatic lists to select items for processing, reporting and inquiries.

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 219
You can also create a manual list. For more information, see "Defining a
Manual List" on page 222.

Need More Details? Check out the following concepts:


• "What is a List?" on page 208

Before you start Attributes must exist before you can use them in a list.
You should also assign values to any item that will become a member of
the list.

STEPS To define an attribute list


1. Access List (MX10.1).
2. Choose the New List button to access Define List (MX10.2) where you will
define header information for the new list. Consider the following fields.
Object Type An attribute list must be associated with an object
type. For Inventory Control, select Item (ITEM),
Accounting Unit (ACCTU), or Account (ACCNT).
List Type a name and description for the new list.
Sort By Attribute If you want to define a sort order for attributes
form tab in the list, select attributes in the sequence you
want to use for sorting.
Audit form tab Use the Audit form tab to display the user who
created the list, the date the list was last changed,
and the date the list was last updated.

3. After adding the new list, you automatically navigate back to List
(MX10.1). Use this form to define the attribute criteria for items you want
in the list. Consider the following fields.
Attribute Select the attribute or attributes you want.
Value Range For each attribute that you select, enter a value
range.
Or Group If you leave this field blank, the relationship
between the attributes is an AND relationship,
meaning that an item is eligible for the list if it
satisfies all the attribute values. You can type
any alphanumeric character to indicate an OR
relationship, meaning that an item is eligible for
the list if it satisfies any of the attribute values.

NOTE If you need to change the Or Group field


value, you must first delete the attribute line, then
re-enter it with the new Or Group value.

220 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
NOTE As long as the 4. To view the items that meet the list’s eligibility criteria, choose the Preview
list remains automatic, it button to access Query List Members (IC56.3)one of the following, based
is updated dynamically on the object type selected:
whenever you use it.
• Query List Members (IC56.3)
• Accounting Unit List (GL21.1)
• Query Account List Members (GL22.1)

Optional Procedure for Creating an Automatic List


• Choose the Copy button on Define List (MX10.2) to access List Copy
(MX10.3). Use this subform to create a new list by copying an existing
one and making changes.

Related Reports and Inquiries


To Use
View a listing of attribute lists List Listing (MX210)
View the members of a list or all lists List Member Listing (MX223)
for an object type

Or Group Logic Tables


Use the Or Group field on List (MX10.1) to create an and/or condition between
attributes. This determines if the attributes are grouped or treated individually.
If you leave this field blank, “and” defaults, which connects two statements
with an “and” condition. You can type any alphanumeric character in the field
to create an “or” condition.
You can include combinations of “and” and “or” conditions. “And” conditions
link value ranges together as one condition. “Or” conditions are used to
establish multiple sets of criteria that are applied separately.
If you have multiple conditions in a list, use an “or” in the Or Group field to
separate the conditions. Selection criteria above or below an “or” condition
are applied separately. The following table shows how attribute and “or” group
combinations can be combined to create conditional statements.
If the Attribute on And the Or Group Result
the preceding or on the preceding or
subsequent line is subsequent line is
EQUAL EQUAL Not valid
EQUAL NOT EQUAL Or condition
NOT EQUAL EQUAL And condition
NOT EQUAL NOT EQUAL Or condition

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 221
Defining a Manual List
You can create manual lists, where you add and maintain list members
manually. Manual lists can contain any item you want to use as part of a set,
and can be used anywhere automatic lists are used. Use this procedure
to define a manual list. You can also create an automatic list. For more
information, see "Defining an Automatic List" on page 219.

Need More Details? Check out the following concepts:


• "What is a List?" on page 208

STEPS To define a manual list


1. Access List (MX10.1).
2. Choose the New List button to access Define List (MX10.2) where you will
define header information for the new list. Consider the following fields.
Object Type An attribute list must be associated with an object
type. For Inventory Control, select Item (ITEM),
Accounting Unit (ACCTU), or Account (ACCNT).
List Type a name and description for the new list.
Sort By Attribute These form tabs do not apply to manual lists.
and Audit form tab Leave the Sort by Attribute fields blank.

3. After adding the new list, you automatically navigate back to List (MX10.1).
Choose the New List button again to return to Define List (MX10.2).
4. Choose the Manual List button to access one of the following, based on
the object type:
• Manual Item List (IC56.4)
• Manual Accounting Unit List (GL21.2)
• Manual Account List (GL22.2)
5. To view the list members, choose the Preview button.

Optional Procedure for Creating a Manual List


You can convert an automatic list to a manual list. This lets you use an
automatic list as the starting point, which can be a time saver, while still giving
you the flexibility of adding or removing individual items.

IMPORTANT This procedure is irreversible. You cannot convert a manual


list back to automatic.

1. Access List (MX10.1) and select the list you want to convert.
TIP To preserve the 2. Choose the New List button to access Define List (MX10.2).
automatic list, copy it to
a new list name using 3. Choose the Manual List button to access one of the following, based on
List Copy (MX10.3), the object type:
then convert the new list • Manual Item List (IC56.4)
to a manual list.
• Manual Accounting Unit List (GL21.2)
• Manual Account List (GL22.2)

222 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
4. Choose the Convert to Manual button to convert the automatic list to a
manual list.

Related Reports and Inquiries


To Use
View a listing of automatic or manual List Listing (MX210)
list information
View the members of a list or all lists List Member Listing (MX223)
for an object type

Inventory Control User Guide Chapter 14 Using Attribute Matrix Attributes 223
Interfacing Valid Attribute Value Ranges to Attribute Matrix
You can interface a non-Lawson file of valid attribute value ranges and attach
them to attributes in Attribute Matrix. The valid value ranges are used to verify
values you enter for the attribute. For example, an attribute of Opening Date
might have a valid value range of 01/01/1995 to 12/31/2001. The application
would not allow you to enter a date of 01/01/1990. Use this procedure to
replace or add to existing value ranges that are used to validate values you
enter for an attribute.

Before you start The attributes for which you are interfacing values must
already be defined in the Attribute Matrix application.

STEPS To interface valid attribute values


1. Prepare a comma-separated value (CSV) file containing the item attribute
information you want to interface. The file fields must match the order and
data type of the fields in the MXVALREL (UNIX/Windows) or DBIFMVR
(System i) file. This file layout is available on the internet support site.
2. Transfer the CSV file to the server where your environment resides.
3. Use the Import command to load the item data from the CSV file into the
Attribute file. For instructions on using the Import command, see Lawson
Administration: Server Setup and Maintenance.
4. Run Attribute Valid Value Listing (MX260) to verify the value ranges
before interfacing those records.
5. View and edit the records in MXVALREL (UNIX/Windows) or DBIFMVR
(System i), using Attribute Valid Value Maintenance (MX60.1). You can
add, change, or delete any records.
6. Run Attribute Valid Value Interface (MX160) to load valid attribute
value ranges to Attribute Matrix. This program moves records from
the MXVALREL (UNIX/Windows) or DBIFMVR (System i) file to the
MXVALIDATE (UNIX/Windows) or DBIFMVL (System i) file, unless errors
are found.
7. View the report generated by MX160. If it contains errors:
a. Correct the records, using MX60.1.
b. Run MX160 again.
c. Repeat this step until the report shows no errors.

224 Chapter 14 Using Attribute Matrix Attributes Inventory Control User Guide
Appendix A

Setting Up Kits

This appendix explains how to set up kits in the Inventory Control application.
Kits are used in the Order Entry, Warehouse, and Production Order
applications.
• "Managing Kit Items" on page 225
• "Defining Make-to-Order Kits" on page 226
• "Replacing Kit Components" on page 228
• "Adding Burdens" on page 229
• "Defining Finished Goods" on page 230
• "Creating Finished Good Kit Items" on page 232

Managing Kit Items


You define kit items and their components in Item Master (IC11.1) or Item
Master and Location (IC10.2). Components are set up in multiple kits or as
a kit in itself. For example, a lighting company might set up a lamp as a kit
item consisting of three components: light bulb, lamp shade, and base. The
company might also set up the lamp base as a kit.
Two kinds of kit items are available:
1. make-to-order kits and
2. finished goods (formerly called make-to-stock kits).
A make-to-order kit is assembled with kit components after it is ordered or
requisitioned. Component items are stocked separately.
A finished good is produced and is meant to be stored as a kit item. Finished
goods are used in the Production Order and Order Entry applications.
Make codes determine the kind of kit that is created. You can change a
make-to-order kit to a finished good by changing its make code. However,
you cannot change make-to-order kits to finished goods when the kit item
has instructions or options.
Make code Indicates
O Make-to-order kit
S Finished good (formerly called
make-to-stock kit)

Inventory Control User Guide Appendix A Setting Up Kits 225


Defining Make-to-Order Kits
You can set up make-to-order kits in two ways. The first is at the item group
level to be valid for all companies and locations. The second is by company
and location. If you set up a kit by company and location, the components
must be inventory tracked at the location.
As you add components to make-to-order kits, the application assigns
sequence numbers. The sequence in which you add components determines
the order in which components are allocated and print on pick lists.
During setup, you indicate whether the component is required (non-required
components are considered kit accessories). You cannot assign options to
kit accessories.

STEPS To define make-to-order kits


1. Access Kit Assembly (IC60.1).
2. Select or type the following data.
Item Group The item group for which you want to set up a kit.
The item group must first be defined in Corporate
Item Group (IC00.1).
Kit Item The item number for the kit. The item number
must first be defined for the kit item in Item Master
(IC11.1) or Item Master and Location (IC10.2).

3. Optional. To attach item location or item comments to a kit item number:


a. After selecting the item number for the kit, choose the Attachments
button on the toolbar.
b. Put the cursor on the desired comment type and choose the Add
button.
c. Type the comments.
d. Use Item Search (IC30.1) to view (not add, change, or delete) the
attached item comments. On IC30.1, select the company and the
Inquire form action. Then, in the field for the line action next to the
item, choose the Drill Around button.
e. Use Item Location Balances (IC31.1), User Defined Item Inquiry
(IC36.1), Availability by Location (IC40.1), Secondary Quantity
Availability (IC40.2), and Stock Status (IC45.1) to view (not add,
change, or delete) the added item location attachments. On those
forms, fill in the key fields, including the Item field, and in the Item field
choose the Drill Around button.
4. In the Make Code field, select O (Make-to-Order) for assembly as needed.
5. You can change the make code to S (Make-to-Stock) after adding the kit,
but if you do so, you must maintain the kit on Finished Goods (IC62.1).
6. Optional. In the Mimic Kit Item field, select a kit item to copy.
7. Select the Add line action and add the components, quantity, unit of
measure, start and stop dates, and indicate whether components are
required.
8. Optional. Use Options (IC60.2) to assign kit options.

226 Appendix A Setting Up Kits Inventory Control User Guide


9. In the Seq field, inquire on a component. Select the Add line action to
assign optional components.
10. Optional. Use Instructions (IC60.3) to write instructions for a kit item or
kit component.
For a make-to-order kit, leave the Sequence field blank.
– or –
For a component, in the Sequence field, inquire on a component assigned
in Kit, Assembly (IC60.1).
In the Instruction field, type the instructions.

Related Reports and Inquiries


To Use
List make-to-order kit assemblies Kit, Assembly Listing (IC260)
Inquire on all kits (both make-to-order Component Where Used (IC65.1)
and finished goods) that are
associated with a component
View item component availability for Kit Availability (IC67.1)
a specific number of make-to-order
kits

Inventory Control User Guide Appendix A Setting Up Kits 227


Replacing Kit Components
You can replace or delete components and calculate new component
quantities for both
• make-to-order and
• finished good kits.

STEPS To replace kit components


1. Use Kit Component Replacement (IC61.1).
2. On the Kit Component Replacement form, select or type the following
data.
Item Group The item group for which you want to replace
kit components. The item group must first be
defined in Corporate Item Group (IC00.1).
Current The current kit component item number.
Component
New Component If you are replacing the component, select a new
component.
New Quantity Optional. The new quantity factor.
Factor
If specified, the original component quantity
is multiplied by this factor to determine a new
component quantity.
Select Status The kits you want to replace, selected by status
code. Select A (Active) or I (Inactive).
Active replaces active kit components. Inactive
replaces inactive kit components.

NOTE If you leave this field blank, all kits are


replaced.

3. Select the Replace form action.


The application replaces the selected component. If you select a new
quantity factor, the application also calculates a new component quantity.

Related Reports and Inquiries


To Use
Inquire on all kits (both make-to-order Component Where Used (IC65.1)
and finished goods) that are
associated with a component
View item component availability for Kit Availability (IC67.1)
a specific number of make-to-order
kits

228 Appendix A Setting Up Kits Inventory Control User Guide


Adding Burdens
Burdens are the cost of production, such as labor, utilities, and machine setup.
You assign burden types to each burden to determine how the application
calculates the total cost associated with a burden.
Burdens are assigned to finished goods to determine what your non-inventory
production costs are.
Four burden types are available on Burdens (IC63.1).
Kind of burden Burden cost becomes
Flat amount The flat amount you enter for the
burden.
Amount per finished good unit The quantity of the finished good
multiplied by the number of units
required.
Percentage of finished good The percentage of finished good
inventory cost inventory cost (which is the total of
all inventory components).
Amount per burden unit The unit cost multiplied by the
quantity and multiplier.

When you define burdens in Burdens (IC63.1), you can attach comments to
burden templates. The following table shows how the attachment feature
works.
To attach comments to Put the cursor
Burden templates In the Burden Code field. Choose
the Attachments button on the
toolbar and type the burden template
comments.

NOTE The burden template


comments default to Finished Goods
(IC62.1).

STEPS To add burdens


1. Use Burdens (IC63.1) to define a burden.
In the Status field, if you select Inactive, the burden cannot be added
to a finished good or work order.
2. In the Burden Type field, select the method the application should use to
calculate burden cost (flat amount, amount per finished good unit, percent
of finished good inventory cost, or amount per burden unit).

Inventory Control User Guide Appendix A Setting Up Kits 229


NOTE You receive an 3. Choose the form tab that matches the burden type you selected. Enter
error message if, for the appropriate amount.
example, you select
a burden type of flat
amount and try to enter Related Reports and Inquiries
an amount on the Per
Burden Unit form tab. To Use
List burdens for a production facility Burden Listing (IC263)

Defining Finished Goods


Finished goods consist of components, packaging, byproducts, burdens, and
comments. They are stocked on the shelf as a kit, unlike make-to-order kits.
You can define a finished good for a company and production facility (which
must be set up as an inventory location).
Before you can define a finished good, you must have already added the
components, kit item, by-product, and burden.

Components
All components for finished goods are required.
Component types indicate the kind of component you are assigning to the
finished good. The four component types are shown in the following table.

230 Appendix A Setting Up Kits Inventory Control User Guide


Component type Indicates
Component (C) A normal component; you must enter
a non-zero quantity on Finished
Good (IC62.1). The component
must be inventory tracked.
Packaging (P) A packaging item; you can enter
either a zero quantity or a non-zero
quantity on Finished Good (IC62.1).
The packaging components must be
tracked in inventory.
Offsite (O) A component that is supplied by an
offsite location (the offsite location
does part of the finished good
production). You must enter a
non-zero quantity on Finished Good
(IC62.1).
Rework (R) After production is complete, a
finished good may need to have
further work performed on it because
of poor quality or incomplete
assembly.
Another work order can be created
for the finished good by adding the
item as a component of itself, and
selecting the rework component
type. You do this using Finished
Goods (IC62.1) or Work Order
(WO30.1).

Offsite locations are external locations that add components to a finished


good. They are defined in Location (IC02.1) but not as a production facility.

Byproducts and Burdens


Byproducts are products that are created as a result of producing a finished
good. For example, for a finished good consisting of a box of hamburger
patties, a by-product could be edible fat. The fat can be ground up to use in
chicken feed (you can sell byproducts in addition to selling the finished good).
Byproducts must be set up as inventoried items and must be assigned to a
location.
A burden assigned to this finished good could be the machine setup time.

Inventory Control User Guide Appendix A Setting Up Kits 231


Attachments
When you define finished goods using Finished Good (IC62.1), you can
attach comments to
• burdens,
• finished goods,
• components, and
• byproducts.
The following table shows how the attachment feature works on Finished
Good (IC62.1).

NOTE The comments To attach comments to Put the cursor


you attach on Finished
Good (IC62.1) are Burdens In the Code field on the Burdens
copied to the Production form tab. Choose the Attachments
Order application during
work order explosion. button on the toolbar and the Add
For information, see the button. Type the burden notes.
Production Order User
Guide. Finished goods In the Item field. Choose the
Attachments button on the toolbar
and type the assembly instructions
for the finished good.
Components In the Item field on the Components
form tab. Choose the Attachments
button on the toolbar and type the
component notes.
Byproducts On the Byproducts button within the
Finished Good form tab. Choose
the Byproducts button and put the
cursor in the Item field. Choose the
Attachments button on the toolbar
and type the byproduct notes.

Creating Finished Good Kit Items


Use the following procedure to define finished goods.

STEPS To define finished goods


1. Use Finished Good (IC62.1) to add a finished good.
In the Status field, if you select Inactive, the finished good cannot be
produced in the Production Order application.
2. Choose one of the following form tabs to add details to a finished good.

232 Appendix A Setting Up Kits Inventory Control User Guide


Choose this tab To add
Finished Good Stock unit of measure, quantity
and cost tolerance percentages.
You can copy a finished good
that is set up at one company
and location to another company
and/or location.
Choose the Byproducts button to
add byproducts that are produced
as a result of producing the
finished good.
Components Components (and component
types), locations, quantities, start
and stop dates, component types,
and zero quantity tolerance.
Choose the Account button to
select an account for posting
component waste and material
expense.
Choose the C button to see the
components that make up the
subassembly (for components that
are also finished goods).
Burdens Burdens and burden type
estimates (flat amount, amount
per finished good unit, percent of
finished good inventory cost, or
amount per burden unit).
Scheduling Finished good quantity limits and
the length of scheduling periods.
These two values default to
Production Schedule (WO20.1).
Accounts General ledger accounts to a
finished good. These accounts
default to work orders that make a
specific finished good.

NOTE If the days in which you


produce a finished good must
occur one immediately after
another, select the Contiguous
Process flag on the Finished Good
form tab.

3. Optional. To attach assembly instructions to a finished good item number:


a. After typing the item number, choose the Attachments button on the
toolbar.

Inventory Control User Guide Appendix A Setting Up Kits 233


b. Type the assembly instructions.
4. Optional. To change a finished good to a make-to-order kit, select the
Make Code form action.
Finished goods have a make code of S (Make-to-Stock). To change a
finished good to a make-to-order kit, you must first delete any byproducts,
burdens, and comments assigned to the finished good.

Related Reports and Inquiries


To Use
List finished goods for a company Finished Good Listing (IC262)
and location

NOTE Leave the Finished Good


field blank to list all finished goods
for a company and location.

Inquire on all kits (both make-to-order Component Where Used (IC65.1)


and finished goods) that are
associated with a component
Inquire on components that are Finished Good Component
available for a finished good Availablility (IC68.1)

NOTE To inquire on availability at


substitute locations, you must define
substitute locations and select Yes
in the Chk Sub Loc field.

234 Appendix A Setting Up Kits Inventory Control User Guide


Appendix B

Processing Patient Charges

This appendix explains how to implement and process patient charges in the
Inventory Control application.
NOTE You can collect Processing patient charges consists of seven tasks:
patient charges using
the handheld terminal, • Loading a patient demographic information interface file from an
then upload the charges Admission, Discharge, Transfer (ADT) system into the Lawson system (if
to the host where you you interface with an ADT).
can track lost charges.
• Tracking chargeable and nonchargeable supply usage manually or with
the handheld terminal to collect charges from piggyback labels affixed to
cards containing patient information.
• Tracking chargeable and nonchargeable supply usage manually to
collect charges from piggyback labels affixed to cards containing patient
information.
• Adding the supply usage information into the Lawson system manually or
uploading the data from the handheld terminal.
• Adding the supply usage information into the Lawson system manually.
• Updating the Charge Description Master (CDM) table to match chargeable
items with the charge prices.
• Reporting, and optionally tracking, patient charges.
• Extracting patient charges (if you interface with a patient billing system) to
create a file for manual or electronic interface.
• Purging patient charges and patient information as needed.

Implementing Patient Charge Processing


You must implement patient charge processing before you can track patient
charges. Use the following steps to implement patient charge processing.
1. Set up the Price Class table.
2. Set up patient charge items.
3. Calculate supply charge prices.
4. Obtain charge item pricing feedback.
5. Optional. Load patient demographic data.

Setting up the Price Class Table


The price class or Charge Description Master (CDM) table contains a list of
chargeable items with charge prices and a specific charge number. Your

Inventory Control User Guide Appendix B Processing Patient Charges 235


organization’s patient billing system uses the charge number to represent a
supply item and its associated patient charge.

STEPS To define price class information


1. Access Price Class (PC08.1).
2. Define price class information. Consider the following fields.
Item Group The identifier for a group of items that can be
shared by one or more companies
Price Class Select a code that identifies the rules for
calculating a patient charge price.
Cost Limit Type a value for the upper limit. (The lower limit
is either zero or the upper limit of the previous
limit in the same price class.)
Mark Up Percent Type a value for the fraction (expressed as a
percentage) of the item’s cost to be added to the
item when calculating the patient charge price.
Add On Amount Type a fixed amount to be added to the item
when calculating the patient charge price.
Rounded To Type an amount for the rounding of the calculated
Amount dollar amount. If you enter 1.00, the patient
charge price is rounded to the nearest dollar.
Minimum Price Type the minimum amount to be charged for an
item. If the calculated patient charge price is
less than this amount, the application uses this
amount.

Related Reports and Inquiries


To Use
Print the Charge Item Price List Price Calculation (PC120)

Setting Up Patient Charge Items


A patient-chargeable item has a charge (CDM) number, and item number
and a price class or specified price.

STEPS To set up patient charge items


1. Access Patient Charge Items (PC10.1).
2. Set up the patient charge items. Consider the following fields.
Charge Number Type the number used by the patient billing
system to charge patients for items used.
Item Select the item identifier.
Price Class Select a code that identifies the rules for
calculating a patient charge price.
Patient Price Type the flat amount that is charged to the patient.

236 Appendix B Processing Patient Charges Inventory Control User Guide


Related Reports and Inquiries
To Use
Print the Charge Item Price List Price Calculation (PC120)

Calculating Supply Charge Prices


When you calculate supply charge prices, the application:
• Calculates prices for all patient charge items with a price class
• Updates patient charge item records
• Prints the Charge Item Price list

STEPS To calculate supply charge prices


• Run Price Calculation (PC120) in update mode.

Obtaining Charge Item Pricing Feedback


If your organization requires it, you can obtain chart item pricing feedback.

STEPS To obtain charge item pricing feedback


1. Review charge prices in a copy of the Charge Item Price List printed in
Price Calculation (PC120).
2. Define feedback as needed.
a. Change the Price Class table using Price Class (PC08.1).
b. Recalculate supply charge prices by running Price Calculation
(PC120) in update mode.

Loading Patient Demographic Data


If your organization interfaces an Admission, Discharge, Transfer (ADT)
system, you can:
• Load patient demographic data from a Lawson format file. Patient Upload
(PC520) lets you load ADT data into the Inventory Control application
from a Lawson format file. The application uses the data to track and
report charges to a patient in a healthcare facility. For information about
implementing a Lawson format file or for PC520 file layouts, see the
Inventory Control File Layouts.
– or –
NOTE When it is • Load patient demographic data from a Health Level Seven (HL7) format
appropriate to use file. HL7 ADT Patient Interface (PC521) lets you load ADT data into
ADT events, Lawson
the Inventory Control application from a HL7 file. HL7 is the interface
recommends using an
HL7 format file instead standard between different vendor software systems in the healthcare
of a Lawson format file. environment. The Inventory Control application uses the data to track and
report charges to a patient in a healthcare facility. For PC521 logic and
file layouts, see the Inventory Control File Layouts.

STEPS To load patient data from a Lawson format file


1. Access Patient Upload (PC520).

Inventory Control User Guide Appendix B Processing Patient Charges 237


2. Load the patient data. Consider the following fields.
Company The identifier for the organization. Defined on
Company (IC01.1).
Import File Name Type the import file name. If you leave this field
blank, the default file name is PC520WORK. The
file must reside in one of the following locations:
$LAWDIR/productline/patient (for UNIX)
%LAWDIR%\productline\patient (for Windows)
LAW8/lawson/productline/patient (for System i)

Related Reports and Inquiries


To Use
Inquire on patient charges Patient Charges (PC20.1)

STEPS To load patient data from an HL7 file


1. Access HL7 ADT Patient Interface (PC521).
2. Load the patient data. Consider the following fields.
Company The identifier for the organization. Defined on
Company (IC01.1).
File Name The input file name. If you leave this field
blank, the default file name is PC521WORK.

Related Reports and Inquiries


To Use
Inquire on patient charges Patient Charges (PC20.1)
Inquire on patient information Patient (PC20.2)

Processing Patient Charges Manually


You can process patient charges manually or with the handheld terminal.
You can process patient charges manually.
The tasks for processing patient charges manually are listed below.
• Maintaining supply charge prices
• Manually defining patient demographic information
– or –
Loading patient demographic data (if your site interfaces an ADT system).
For more information, see "Loading Patient Demographic Data" on page 237.
• Manually defining patient charges
• Reconciling patient charges (optional)
• Extracting patient charges (if your site interfaces a patient billing system)
• Purging patient charges (optional)

238 Appendix B Processing Patient Charges Inventory Control User Guide


Before you start Before you can track patient charges, you must
implement patient charge processing. For more information, see
"Implementing Patient Charge Processing" on page 235.

Maintaining Supply Charge Prices


Maintaining supply charge prices revolves around Price Calculation (PC120).
The program calculates, updates, and prints the Charge Item Price List.
Maintaining the supply charge prices consists of:
• Changing the Price Class table as needed
• Changing patient charge items as needed
• Running Price Calculation (PC120) to print the Charge Item Price List
as needed
• Optionally sending a copy of the Charge Item Price List to the patient
billing department
• Handling charge item price changes
The following table summarizes supply-charge price maintenance activities:
Run Price Calculation
To Use (PC120) in
Change the Price Class Price Class (PC08.1) List mode
table
Change patient charge Patient Charge Items List mode
items (PC10.1)
List charge item prices List mode
Report charge item List mode
prices
Calculate but not Report mode
update charge item
prices
Update charge item Update mode
prices
Optional. Obtain Use a printed copy N/A
pricing feedback from of the Charge Item
the patient billing Price List printed above
department in Price Calculation
(PC120)
Handle charge item Use Price Class Update mode to
price changes (PC08.1) to change recalculate supply
the Price Class table charge prices

Inventory Control User Guide Appendix B Processing Patient Charges 239


Defining Patient Demographic Information Manually
Patient (PC20.2) lets you define patient demographic information manually.

STEPS To define patient demographic information manually


1. Access Patient (PC20.2).
2. Define demographic information about a patient. Consider the following
fields.
Company The company to bill the patient charges to.
Contract Number Type the contract information for the patient.

Defining Patient Charges Manually


Patient charge information consists of patient demographic information and
information about items or services used for the patient.
Before you enter patient charges, make sure your organization has updated
the patient demographic data. You can load patient demographic data from an
interface file. For more information, see "Loading Patient Demographic Data"
on page 237. You can also define patient demographic information manually.
For more information, see "Defining Patient Demographic Information
Manually" on page 240.

STEPS To define patient charges manually


1. Access Patient Charges (PC20.1).
2. Define patient charge information. Consider the following fields.
Company The company to bill the patient charges to.
Visit Nbr The unique number to identify a visit with a
company.
Revenue Center The department with which charges are
associated.
Source Location Select the location that was the source of the
supplies.
Charge Date The date the supply was given to the patient.

3. Use the Charges tab to inquire on and maintain patient charge information.
4. Use the Visit tab to define patient visit information.

240 Appendix B Processing Patient Charges Inventory Control User Guide


Related Reports and Inquiries
To Use
Inquire on patient charges Patient Charges (PC20.1)

Reconciling Patient Charges


Patient Charge Reconciliation (PC210) lets you reconcile patient charges
and track lost charges.

STEPS To reconcile patient charges


• Access Patient Charge Reconciliation (PC210) and print an audit list that
indicates whether patient charges are greater than or less than issues
for an item.

Extracting Patient Charges


Patient Charge Download (PC530) lets you extract patient charge information
from the Lawson database to create a file for hand off to a patient billing
system. For PC530 file layouts, see the Inventory Control File Layouts.

STEPS To extract patient charges


1. Access Patient Charge Download (PC530).
2. Create an export file for a patient billing system. Consider the following
fields.
Company The identifier for the organization.
Revenue Center The code for the revenue center that receives the
credit for the items issued to a patient.
File Name The output file name.
Type of File The output file format. Select 1 or 2. Select 1
(flat file) for a Lawson format file. Select 2 (HL7
file) for a Health Level Seven standard version
2.2 file format.

3. Choose the patient charges data.


4. Choose the Send to Billing tab to select a batch of data to send to billing.
– or –
Choose the Resend to Billing tab to select a batch of data to resend to
billing.
– or –
Choose the Select by Date Range tab to select patient charges for use
other than sending to billing.

Inventory Control User Guide Appendix B Processing Patient Charges 241


Purging Patient Charges
Patient Charge Purge (PC320) lets you purge patient charges.

IMPORTANT You must run Patient Charge Purge (PC320) before you purge
patient demographic information.

STEPS To purge patient charge records


• Run Patient Charge Purge (PC320).

STEPS To purge patient demographic information


• Run Patient Purge (PC310).

242 Appendix B Processing Patient Charges Inventory Control User Guide


Appendix C

Handheld Setup and Processing

Handheld setup and processing is described in these Lawson Mobile Supply


Chain Management guides:
• Par and Cycle Counting User Guide
• Receiving and Delivery User Guide
• Surgical Instrument Management User Guide

Inventory Control User Guide Appendix C Handheld Setup and Processing 243
244 Appendix C Handheld Setup and Processing Inventory Control User Guide
Appendix D

Procurement Transaction Interface

With this appendix, you learn about the processes that create transactions
and interface programs.
• "Processes that Create Transactions" on page 245
• "Transaction Source Codes" on page 246
• "Interface Programs" on page 246
• "Transaction Accounts" on page 248
• "Transaction Posting Scenarios" on page 251

Processes that Create Transactions


The following processes create transactions. These processes are performed
in the Purchase Order, Invoice Matching, and Accounts Payable applications.
• Receive goods, create and release receiving documents (PO30, MA531,
or web receiving)
• Perform inspection, create and release inspection document (PO34))
• Adjust receiving, create and release adjustment document (PO33)
• Return to vendor, create, authorize, and ship return document (PO31)
• Match invoices, create and match invoice (AP20.1-3, MA530, MA540)
• Record estimated liability
• Pay invoice (AP150, and AP155 or AP160, or AP161 and AP170)
• Void payments
• Pay employee and release expenses (EE20, EE35, EE135)
• Recognize currency gains and losses
• Reconcile unmatched invoices (MA60.1-3)
• Archive receipts (MA180)
• Write off receipts (MA180)
• Matched, not received (PO136)
• Post invoice distributions (AP175), (EE175, company paid)
• Accrue Payment Discounts (AP176)

Inventory Control User Guide Appendix D Procurement Transaction 245


Interface
Transaction Source Codes
The following transaction source codes are used to identify the transactions
created in the Purchase Order and Invoice Matching applications. This
table does not include transactions source codes created in the Inventory
Control application, such as miscellaneous receipts (IC20), issues (IC21),
and transfers (IC22).
Code Description
PO purchase order receipt
RA receiving adjustment
AC accepted inspection
RJ rejected inspection
VR vendor return
VA vendor return adjustment/
cancellation
CA cost adjustment from invoice match

Interface Programs
The following programs are used to interface transactions to the general
ledger.

General Ledger Interface (IC130)


Interfaces transactions processed in the Inventory Control, Purchase Order,
Requisitions, and Warehouse applications to the general ledger.

Received, Not Invoiced Report (PO135)


Interfaces transactions to the general ledger for non-inventory purchase order
receipts and adjustments. This program is an as-of or estimate program
which records your liability for the period. This program creates auto reversal
transactions.

Matched, Not Received (PO136)


Interfaces approved invoices for goods that have not been received. This can
happen for two reasons: 1) the approval was entered in the AP20 invoice
forms and released prior to a receipt. 2) a receiving adjustment causes the
received quantity to be less than the approved quantity on an invoice.

Standard Cost Calculation (PO139)


Standard Cost Calculation (PO139) calculates and creates a reversing
journal entry for the difference between purchase order and standard cost for
purchase order lines with a matched not received (MNR) or received not

246 Appendix D Procurement Transaction Inventory Control User Guide


Interface
invoiced (RNI) quantity that is greater than zero. Standard cost companies
are the only type of company that can run PO139.

Open Receipt Archive (MA180)


Interfaces write off and archived receipt transactions to the general ledger.
Write off receipts are still available in the match process. Archived receipts
are no longer available in the match process.

Payment Closing (AP170)


Completes a cash payment cycle for a pay group. Once you close the cash
payment cycle, you cannot reprint bad payment forms or recreate a payment
tape or electronic payment file. Creates and interfaces transactions to the
general ledger for cash, discount, reportable income withholding, currency
gain and loss, and payment accrual transactions.

Invoice Distribution Closing (AP175)


Interfaces transactions for released invoice distributions to the general ledger.
You must run AP175 at least once in an accounting period; however, you can
run it any time after you release an invoice.

Match Discount Accrual (AP176)


Interfaces accrued payment that were created during the match process. You
must run this program at least once per accounting period, but you can run
it as often as you need. It is recommended that you run this program at the
same time you run Invoice Distribution Posting (AP175). This program debits
the AP Liability account using the accrual code on the invoice and credits the
Discount Accrual account defined on the Invoice Matching company.

Invoice Reinstatement (AP190)


Reinstates invoices associated with payments voided in the Cash
Management application. Depending on the reason for voiding the
payment, you can reschedule, maintain, or cancel a reinstated invoice.
Creates and interfaces transactions to General Ledger for cash, discount,
reportable income withholding, currency gain and loss, and payment accrual
transactions.

Unrealized Gain or Loss (AP191)


For companies that pay non-base currency invoices this program is used to
calculate, create, and interface unrealized gain and loss transactions, for
released invoices.

Company Expense Posting (EE175)


Interfaces released company-paid expense distributions to the General
Ledger application. You must run EE175 at least once in an accounting period,
however, you can run this report anytime after you release an expense.

Inventory Control User Guide Appendix D Procurement Transaction 247


Interface
Transaction Accounts
The table below lists the accounts, their use in transactions, and where
they are set up.
Account Use Set Up
PO Accrual Used as a temporary Company (MA01),
holding account to Process Level (AP00.5)
track the amount of
inventory that has been
received but not yet
paid for (invoice has
not yet been received).
Item Cost Variance This is a temporary Company (MA01),
Suspense holding account that Process Level (AP00.5)
is used to indicate
offset a cost difference
between the invoice
unit cost and receipt
unit cost for an
inventory item. This
transaction is passed
to the Inventory Control
application for posting.
Tolerance Offset Used to offset a cost Company (MA01),
difference between the Process Level (AP00.5)
invoice goods amount
and the receipt goods
amount that is within
tolerance. Used a
whole invoice level.
Receipt Write off This account is Company (MA01),
used to write off old Process Level (AP00.5)
receipts that cannot be
matched.
Match Write off This account is used Company (MA01),
to write off amounts Process Level (AP00.5)
you have paid for
goods that you do not
expect to receive or
goods written off when
receipts are adjusted.
Matched Not Received This temporary holding Company (MA01),
account is used to post Process Level (AP00.5)
amounts you have paid
for goods but not yet
received. Used for
inventory items.

248 Appendix D Procurement Transaction Inventory Control User Guide


Interface
Account Use Set Up
Returns Suspense Used as a temporary IC Location (IC02)
holding account to post
inventory items being
returned to vendors.
Inspection Hold Used as a temporary IC Location (IC02)
holding account to
track inventory items
received and waiting
for inspection.
Freight The account that is IC Location (IC02)
used when freight
charges are applied
against vendor returns.
Handling The account that is IC Location (IC02)
used when handling
charges are applied
against vendor returns.
Scrap The account that is IC Location (IC02)
used when inventory
items are canceled
off vendor returns or
inventory items are
rejected at inspection
and written off.
Inventory The account used GL Category (IC04)
when inventory items
are received.
Cost Variance / The account used GL Category (IC04)
Adjustment when cost variances
cannot be posted to
the inventory account
because no stock
exists, or transactions
costs being different
than default unit costs.
Expense The account used Entry forms (PO20,
when non-inventory, RQ10, AP20).
special order, and
services type items
are received and when
invoices are processed
for these items.
AP Accrual The liability account AP Company (AP00.4),
invoices post to when Process Level (AP00.5),
matched. Vendor (AP10),
Company Vendor
(AP10.5), Invoice Entry
(AP20s)

Inventory Control User Guide Appendix D Procurement Transaction 249


Interface
Account Use Set Up
Discount Accrual The account used AP Company (AP00.4),
to accrue payment MA Company (MA01)
discounts prior to
processing payment.
Discount Earnings The account used AP Company (AP00.4),
to accrue payment Process Level (AP00.5),
discounts during Vendor (AP10),
Payment Closing Company Vendor
(AP170). (AP10.5), Invoice Entry
(AP20s)

250 Appendix D Procurement Transaction Inventory Control User Guide


Interface
Transaction Posting Scenarios
The following pages show transaction posting scenarios by process and the
programs that interface the transactions to the general ledger.
For example in the transaction scenario shown below inventory items that
require no inspection are received in the Purchase Order application.
1. When the receiving document for these items is released, the transaction
created is a debit to Inventory and a credit to PO Accrual. IC130
interfaces this transaction to the general ledger.
2. When an invoice for these items is matched to the receipt records, the
transaction created is a debit to PO Accrual and a credit to the AP
Accrual. AP175 interfaces this transaction to the general ledger.
3. When the invoice is paid, the transaction created is a debit to AP Accrual
and a credit to the Cash account. AP170 interfaces this transaction to the
general ledger.
The net result in the general ledger is a debit to Inventory and a credit to Cash.
For more information on processing programs, interface programs and
transaction accounts refer to the introductory sections in this document.

Inventory, No Inspection
Process Interface to GL
1) Release receiving document. IC130
2) Match invoice. AP175
3) Pay invoice. AP170

Inventory Control User Guide Appendix D Procurement Transaction 251


Interface
PO
debit Inventory credit debit Accrual credit
1) 10 2) 10 1) 10

debit AP credit
Accrual
3) 10 2) 10

debit Cash credit


3) 10

Net Effect
debit Inventory credit debit Cash credit
10 10

Inventory with Inspection Accepted


Process Interface to GL
1) Release receiving document. IC130
2) Release inspection acceptance IC130
document.
3) Match invoice. AP175
4) Pay invoice. AP170

252 Appendix D Procurement Transaction Inventory Control User Guide


Interface
Inspect PO
debit Hold credit debit Accrual credit
1) 10 2) 10 3) 10 1) 10

AP
debit Inventory credit debit Accrual credit
2) 10 4) 10 3) 10

debit Cash credit


4) 10

Net Effect
debit Inventory credit debit Cash credit
10 10

Inventory with Inspection Rejected


Process Interface to GL
1) Release receiving document, 500 IC130
@ 3.00 = 1,500
2) Reject 2 @ 3.00 = 6.00 Accept IC130
498 @ 3.00 = 1494
The Reject Options selected
are: Claim Type = Chargeback,
Replacement PO = No. When the
inspection document is released the
application creates a return.
3) Authorize and ship vendor return
3a) debit Returns Suspense and IC130
credit Inspection Hold
3b) debit AP Accrual and credit AP175
Returns Suspense
4) Match invoice AP175
5) Pay invoices (both charge invoice AP170
and chargeback)

Inspect PO
debit Hold credit debit Accrual credit
1) 1500 2) 1494 4) 1500 1) 1500
3a) 6

Inventory Control User Guide Appendix D Procurement Transaction 253


Interface
Rtrns
debit Inventory credit debit Susp credit
2) 1494 3a) 6 3b) 6

AP
debit Accrual credit debit Cash credit
3b) 6 4) 1500 5) 1494
5) 1494

Net Effect
debit Inventory credit debit Cash credit
1494 1494

Downward Adjustment with Match Write Off


Process Interface to GL
1) Release receiving document, 180 IC130
@ 1.00 = 180
2) Match invoice AP175
3) Pay invoice
4) Release adjustment document, IC130
-3 @ 1.00 = 3.00 This scenario
assumes that the receive quantities
have not been used.

254 Appendix D Procurement Transaction Inventory Control User Guide


Interface
debit Inventory credit debit PO credit
Accrual
1) 180 3) 3 2) 180 1) 180

debit Ma Write credit debit AP credit


Off Accrual
3) 3 2) 180

Net Effect
debit xxxxxx credit debit Cash credit
177 180

debit Ma Write credit


Off
3) 3

Upward Adjustment with Match


Process Interface to GL
1) Release receiving document, 10 IC130
@ 1.00 = 10 Should have received,
100 @ 1.00 = 100.
2) Match invoice (assuming goods AP175
to be received)
3) Release adjustment document, 90 IC130
@ 1.00 = 90 This scenario assumes
that the receive quantities have not
been used.
4) Pay invoice

debit Inventory credit debit PO credit


Accrual
1) 10 2) 10 1) 10
3) 90

Inventory Control User Guide Appendix D Procurement Transaction 255


Interface
debit Ma Write credit debit AP credit
Off Accrual
2) 90 3) 90 4) 100 2) 100

debit Cash credit


4) 100

Net Effect
debit Inventory credit debit Cash credit
100 100

Detail Match Cost Variance, No Goods In Stock


Process Interface to GL
1) Release receiving document, 1 @ IC130
10.00
2) Detail match invoice, 1 @ 12.00 AP175
2a) with cost variance
3) Update Inventory Accounts 3a) if IC130
inventory exists 3b) if inventory does
not exist
4) Pay invoice AP170

debit Inventory credit debit PO credit


Accrual
1) 10 3a) 2 2) 10 1) 10

debit Itm Cst credit debit AP credit


Var Susp Accrual
2a) 2 3a/b) 2 4) 12 2) 12

debit IC Cost credit debit Cash credit


Vari
3b) 2 4) 12

Net Effect
If inventory exists:
debit Inventory credit debit Cash credit
12 12

If inventory does not exist:

256 Appendix D Procurement Transaction Inventory Control User Guide


Interface
debit Inventory credit debit Cash credit
10 12

debit IC Cost credit


Vari
2

Inventory Control User Guide Appendix D Procurement Transaction 257


Interface
258 Appendix D Procurement Transaction Inventory Control User Guide
Interface
Appendix E

Product Transfer and Resale Report (867)

This chapter describes how to set up ship to facilities and manufacturer


relationships to produce a Product Transfer and Resale Report.
The purpose of the Product Transfer and Resale Report is to allow
manufacturers to track product that is shipped from a customer’s central
distribution center to a customer’s facility where the product is used. This
report allows the customer to reconcile rebates and discounts, and allows the
manufacturer to assess commissions.
The report tracks product from the customer’s warehouse to the point of actual
use (facility), by a single inventory distribution location for a given time period.
This chapter is broken down into three sections:
• "Defining Ship To Facilities" on page 259
• "Defining Manufacturer Relationships" on page 260
• "Running the Product Transfer and Resale Report" on page 263

Defining Ship To Facilities


Use this procedure to define ship to facilities. Facilities let you group locations
in a meaningful way for reporting purposes. For example, facilities can be an
inventory location, requesting location, stockroom, workstation, and so on.
When transferring goods in Lawson applications, the destination is tracked
by location. When transferring manufacturer goods (product), the destination
is tracked by ship to facility.
For more information, see "Defining Manufacturer Relationships" on page
260. You must associate at least one company or company location to a
ship to facility.
When you delete a ship to facility, it cannot be attached to a manufacturer’s
ship to facility.

STEPS To define ship to facilities


1. Access Ship To Facility (IC33.1).
2. Define the header and valid inventory or requesting locations. Consider
the following fields.
Item Group Required. Select the item group you want the
ship to facility to be associated with.
You define item groups using Corporate Item
Group (IC00.1).

Inventory Control User Guide Appendix E Product Transfer and Resale 259
Report (867)
Ship to Facility Required. Type an identifier, such as an inventory
location, or a department for the facility. This can
be up to 15 characters.
You can define a par location as a ship to facility,
so that the information about the par location is
included on Product Transfer, Resale Report
(IC153).
Description Required. Type the name of the facility. This can
be up to 30 characters.
Company Required. Select the inventory or requesting
company. You must have defined the company
using Company (IC01.1).

NOTE The combination of company and location


can only be associated to one ship to facility.

Location Required. Select the specific inventory or


requesting location.

NOTE The combination of company and location


can only be associated to one ship to facility.

Type Required. Select the location type (inventory


location or requesting location).

Defining Manufacturer Relationships


Use this procedure to define the manufacturer relationship and data structure.
The data structure identifies the reporting requirements of an individual
manufacturer and identifies qualified items, distribution centers, and ship
to facilities.

IMPORTANT Before you define the data structure, you must have set up
ship to facilities.

You define the following.


• Identify the participating manufacturers
• Establish manufacturer reporting requirements
• Identify manufacturer codes and divisions used to associate manufacturer
items
• Identify the distribution centers (ship from locations) that the manufacturer
wants product transfers to be reported for
• Identify the ship to facilities that the manufacturer wants product transfers
to be reported for

260 Appendix E Product Transfer and Resale Inventory Control User Guide
Report (867)
For a manufacturer to exist you must associate at least one manufacturer
code, one distribution center, and one ship to facility.

STEPS To define manufacturer relationships


1. Access Manufacturer Relationship Management (IC34.1).
2. Identify the manufacturer and set up the reporting requirements. Consider
the following fields.
Item Group Required. Select the item group that you want to
create reporting requirements for.
You define item groups using Corporate Item
Group (IC00.1).
Manufacturer Required. Define the manufacturer you want to
create a relationship for.
Description Required. This is the name of the manufacturer.
This can be up to 30 characters.
EDI Partner ID Required. Type the identifier used to process
the transactions through the EDI translator. For
more information, see the Lawson EDI for Supply
Chain Management Trading Partner List.
Report Frequency Choose the frequency of the report for the
manufacturer (Daily, Weekly, or Monthly). This
field defaults to Daily.
Next Period End Required. Enter the date that you want the
Date Product Transfer and Resale Report to use for
the reporting period.
This date must be in the past for the report to pick
up any data. A period must be historical before
the report will process it.
Non-inventory Decide whether you want to include non-inventory
Items items when running the Product Transfer and
Resale Report.
Currency Code Select the manufacturer transactional currency.
Detail Option Select how you want the transaction details
reported.
• Net Daily rolls detail transactions up and
reports transfer totals for the item (per unit of
measure) for the entire reporting period.
• Net Period rolls details transactions up and
reports transfer totals for the item (per unit of
measure) for the entire reporting period.
• Detail shows each transaction that occurred
during the reporting period. This includes
negative balances for returns.

Inventory Control User Guide Appendix E Product Transfer and Resale 261
Report (867)
Sort Order Select how you want to sort item details for each
ship to location.
• By Date (date, item, unit of measure,
transaction number)
• By Item (item, unit of measure, date,
transaction number)
Unit of Measure Select which unit of measure will be used for
Option reporting.
Issue UOM (Buy unit of measure converted to
Issue unit of measure)
Buy UOM (Issue unit of measure converted to
Buy unit of measure)
Decimal Handling If you selected Buy UOM in the Unit of Measure
Option field, you must choose whether you want
the decimal places to be used or truncated during
conversion.

3. Choose the Manufacturer Code tab to associate manufacturer codes and


divisions to a manufacturer. Consider the following fields.
Code Required. Select the manufacturer code that
indicates the item you want to report on. You
define manufacturer codes using Manufacturer
Code (IC14.1).

NOTE The combination of the code and division


can only be associated with one manufacturer.

Division Select the manufacturer division that is


assigned to the item. You define divisions using
Manufacturer Code (IC14.1).

NOTE The combination of the code and division


can only be associated with one manufacturer.

IMPORTANT In order for an item to be included on the Product Transfer


and Resale Report (IC153), the manufacturer’s item number must be
on the Inventory Control transaction. The manufacturer’s item number
is taken from the Item Master file or the Item Location file, and not from
the requisition line. This number is the third field in the group of three
manufacturer information fields and it must be entered on Item Master
(IC11.1) or Item Location (IC12.1).

262 Appendix E Product Transfer and Resale Inventory Control User Guide
Report (867)
4. Choose the Distribution Center tab to associate inventory locations to a
manufacturer. Consider the following fields.
Company Required. Select the Inventory Control company.
You define companies using Company (IC01.1).
Location Required. Select the distribution center whose
manufacturer product transfers will be reported
on.
You define locations using Location (IC02.1).

NOTE The location must belong to the selected


company.

Description Type the description of the distribution center. If


left blank, the description will default from the
inventory location.
Manufacturer Type the manufacturer-supplied identifier for the
Cross Reference distribution center. If left blank, the company
location defaults.
More Choose this button to enter address information
for a distribution center. This is used for reporting
purposes only.

5. Choose the Ship to Facility tab to associate facilities (warehouse,


inventory location, department) to a manufacturer. These associations
are used to identify the qualified destination for the Product Transfer and
Resale Report (IC153). You must associate at least one ship to facility to
the manufacturer. Consider the following fields.
Facility Required. Select the facility that the manufacturer
wants product transfers reported on.
You define facilities using Ship to Facility (IC33.1).
Description Type the description of the facility. If left blank, the
description will default from the inventory facility.
Manufacturer Type the manufacturer-supplied identifier for
Cross Reference the ship to facility. This is used for reporting
purposes.
More Choose this button to enter address information
for a ship to facility. This is used for reporting
purposes only.

Running the Product Transfer and Resale Report


Use this procedure to set the parameters for a Product Transfer, Resale
Report (IC153). The report tells a manufacturer that product was transferred
from a distribution center to a facility, for a specified period of time. With the
report, you track product from the customer’s warehouse to the facility where

Inventory Control User Guide Appendix E Product Transfer and Resale 263
Report (867)
it is used (by distribution location). One transaction is generated for each
distribution center that is transferring a manufacturer’s product. The report
is historical and for it to run, the current date must be greater than the next
period end date associated with the manufacturer.
IC153 generates an interface file in one of two formats, EDI or printed format.
The report lists the distribution location, ship-to location, and item information
in separate sections. The distribution location section includes the product
origin, identifiers, and description. The ship-to location section includes the
product destination, identifiers, and address. Finally, the item section includes
manufacturer items IDs, quantity, price, unit of measure, transaction date,
and transaction ID.

Before you start Before running IC153, you must have defined
manufacturer item numbers, ship-to facilities, and manufacturer relationships.

STEPS To run the product transfer and resale report


1. Access Product Transfer, Resale Report (IC153).
2. Consider the following fields.
Output Type Required. Determine the output type of the report
(EDI or Print). If you select EDI, the report is
transmitted to the manufacturer electronically
using the EDI 867 transaction set. For more
information, see the Lawson EDI Standard and
EDI Professional for Supply Chain Management
User Guide.
Item Group Required. Select the item group to report on (the
manufacturer is defined under an item group).
You set up item groups using Corporate Item
Group (IC00.1).
Manufacturer ID Select the manufacturer ID that you set up
using Manufacturer Relationship Management
(IC34.1). If left blank, this field reports on all
manufacturers.
Distribution Select the company to be reported on. Your
Company selection limits the origin to a single distribution
center.
Distribution Select the inventory or requesting location to be
Location reported on. Your selection limits the origin to a
single distribution center.
Ship To Facility Select the ship to facility to be reported on. You
define ship to facilities using Ship to Facility
(IC33.1). Your selection limits the destination to
a single ship to facility.
Override Period Enter the date that overrides the next period end
End Date date.

264 Appendix E Product Transfer and Resale Inventory Control User Guide
Report (867)
Update Next Decide whether the report is to update the next
Period End Date period end date for the manufacturer (default is
Yes).
Select No if you chose an output type of Print.

3. Define the job and select the parameters that you want to report on and
submit the EDI or print job. Refer to the Lawson EDI for Supply Chain
Management Trading Partner List and the Lawson EDI Standard and
EDI Professional for Supply Chain Management User Guide for setup
requirements.

Inventory Control User Guide Appendix E Product Transfer and Resale 265
Report (867)
266 Appendix E Product Transfer and Resale Inventory Control User Guide
Report (867)
Appendix F

Verifying Your Inventory Quantity Data

Use this appendix to understand the concepts involved in data verification


and learn how to verify your inventory quantity data from the Inventory Control
application.

Inventory Control User Guide Appendix F Verifying Your Inventory 267


Quantity Data
Concepts in this Appendix
The following concepts provide background and conceptual information for
the procedures within this appendix.
TIP To skip directly • "What Is the Data Verification Toolset?" on page 269
to the procedures, see
"Procedures in this • "What Are the Prerequisites for Running These Programs?" on page
Appendix" on page 281. 269
• "In What Order Do I Run the Data Verification Toolset?" on page 270
• "What CSV Files are Created by Update Programs?" on page 275
• "What Database Files Are Updated by Update Programs?" on page
278

268 Appendix F Verifying Your Inventory Inventory Control User Guide


Quantity Data
What Is the Data Verification Toolset?
The Data Verification Toolset programs provide a way for you to ensure
that your inventory quantity data is consistent and accurate. These
programs are designed for Inventory Control customers. The programs scan
database records in the Warehouse application to determine if incomplete or
inconsistent records exist. Consequently, they help you to verify the accuracy
of the inventory quantities within Lawson Distribution Management.
There are many reasons why inconsistencies may exist, including software
problems, system crashes, power surges, and interfaces from other systems.
You can use these programs to report on and update any inconsistencies
found, and get the source documents (requisitions, customer orders, purchase
orders, intransit receipts, and work orders) in sync with their respective
demand and shipment files.
These programs make sure that your stock on hand and stock-on-hand
detail are in sync. They do not handle issues with available stock, costs,
or inventory valuation.
If you have one of the following situations, you need these programs:
• Purchase orders and requisitions with no open lines that will not close.
• You cannot process shipments because of missing demand records.
• Stock is reported as allocated but there are no open document lines to
support the demand.
• Stock is on hand but none is available to be allocated.
• Stock on hand detail quantity is out of sync with the item location quantity.
Two kinds of programs are available in the Data Verification Toolset, report
and update programs. You need to review the information on the reports and
verify that the information to be updated is correct. The report programs let
you see if a need exists to install and run the update programs.
Update programs actually correct data. They are powerful programs and
require certain expertise and training before being run.

IMPORTANT It is required that the person running update programs have


IT/IS experience and must not run them without help from someone with
Lawson Distribution Management knowledge.

What Are the Prerequisites for Running These Programs?


Before running any of the update programs, you need to complete the
following prerequisites:
• Read this entire document before running any of the update programs.
You must have a clear understanding of what these programs will do to
your data. Failure to do so could produce undesirable results.
• Ensure that you have the latest version of the Data Verification Toolset
programs before starting.
• Run the report programs before attempting to run the update programs.

Inventory Control User Guide Appendix F Verifying Your Inventory 269


Quantity Data
• Allocate source documents and close all requisitions that are ready to be
closed.
• Contact your Lawson account manager when you are ready to run the
update programs. You must sign a contract addendum and complete
Lawson University training (or complete training with a Lawson certified
on-site consultant) before you receive the CD key that allows you to install
the update programs. Without completing these tasks, you have access
to the report programs only.
• These programs must be run in single-user mode.
• Lawson recommends that you run these programs in report mode
periodically during non-peak activity hours. Also, if you run these
programs while activity is occurring on the application, false errors may
be reported. You need to run these programs again to verify the error.
• Lawson recommends that you run the Data Verification Toolset programs
in a test environment first, due to potentially long run times.
The programs can take a few hours or a few days to run, depending on
how much data you have in your system. The more data you have,
the longer it takes for the Data Verification Toolset programs to finish
a thorough record check. When you run the Data Verification Toolset
programs, it is critical that you do not run any other application programs
that interact with the Warehouse application data.
Before running the update programs, you must create a complete backup
of your application data. Then, run the report programs and carefully
review the report for any inconsistent records. You can correct the data
manually or run the update programs in Update mode, to correct the data.
Contact the Global Support Center (GSC) if you have questions about
the report data.
• You need to complete all four phases of the programs before continuing
other application activities.

IMPORTANT If you separate the phases in order to run other system


activities, you may interfere with data in the Warehouse application. If
this occurs, you must repeat the Phase Two (Document Integrity Check)
programs to ensure that all record data is consistent with the demand file.

• Phase One programs (that report on or purge orphan records) can be


run concurrently. All other Data Verification Toolset programs must be
run non-concurrently.

In What Order Do I Run the Data Verification Toolset?


You run the Data Verification Toolset programs in four phases. To ensure
accurate reports, you need to run all four phases when verifying your data.
The following paragraphs describe what these phases are and list the order in
which the programs are to be run. For the most accurate reporting results, the
phases should be run in sequential order.

270 Appendix F Verifying Your Inventory Inventory Control User Guide


Quantity Data
You should run the Data Verification Toolset programs any time that you
suspect an error exists in the Warehouse application database.
The four phases are:
NOTE The Phase One • Phase One (Orphan Record Check). In this phase, the programs
programs can be run check for orphan records. Orphan records are missing some required
concurrently.
components, such as a header record missing some of its detail lines,
or detail lines that are missing a closed header. For example, the WH
Orphan Record Check - Report Only (WH420) program checks that every
shipment line detail record belongs to an existing shipment line record,
and that each shipment line belongs to an existing shipment record.
NOTE You can run • Phase Two (Document Integrity Check). This phase makes sure that all
Phase One programs records for each source document are in sync. The Document Integrity
alone, if you suspect
programs check closed headers and detail lines in the external systems
orphan records exist.
However, if you proceed to ensure that the detail lines of each record correspond to its header
to run Phase Two, you information. For example, if a customer order record is closed, none of
must also run Phase the customer order line records can be in an Open status.
Three and Phase Four.
• Phase Three (Warehouse and Inventory Control Integrity Check). You
can run Phase Three after successfully completing Phase One and Phase
Two. Phase Three ensures that the Inventory Control and Warehouse
application database files are in sync with the external documents that
created them. For example, this phase checks that the demand record for
a requisition line is in the same status and for the same quantity.
• Phase Four (Warehouse and Inventory Control Detail Integrity Check).
This phase makes sure that the records within the Inventory Control and
Warehouse applications are in sync. For example, this phase checks that
the stock-on-hand quantity for a serial-number tracked item is backed up
by the same number of serial numbers. This phase also checks the sum
of the quantities (in all of the bins for a specific item) to ensure that the
sum matches the stock-on-hand quantity for that item.

Report Programs
The following table describes which report programs belong to each of the
four phases, and what each program does. These programs are report only;
the actual correcting of data does not occur until you run the update programs.
These report programs must be run first, and in the order listed.

Inventory Control User Guide Appendix F Verifying Your Inventory 271


Quantity Data
Phase Associated programs
Phase One (Orphan • RQ Orphan Check - Report Only (RQ420).
Record Check) This program purges orphan records within
the Requisitions application.
• OE Orphan Check - Report Only (OE420).
This program purges orphan records within
the Order Entry application.
• WO Orphan Check - Report Only (WO420).
This program purges orphan records within
the Production Order application.
• PO Orphan Check - Report Only (PO420).
This program purges orphan records within
the Purchase Order application.
• WH Orphan Check - Report Only (WH420).
This program purges orphan records within
the Warehouse application.
Phase Two (Document • RQ Document Integrity Check - Report
Integrity Check) Only (RQ421). This program ensures that
any open lines have an open header and
a corresponding demand record within the
Requisitions application.
• OE Document Integrity Check - Report
Only (OE421). This program ensures that
any open lines have an open header and
a corresponding demand record within the
Order Entry application.
• WO Document Integrity Check - Report
Only (WO421). This program ensures that
any open lines have an open header and
a corresponding demand record within the
Production Order application.
• PO Document Integrity Check - Report
Only (PO). This program ensures that any
open lines have an open header and a
corresponding demand record within the
Purchase Order application.
• IT Document Integrity Check - Report Only
(WH421). This program ensures that any
open lines have an open header and a
corresponding demand record within the
Warehouse application.
WH421 also ensures that a demand record
exists for the pre-released document header
record when the transaction type is IT (Issue
Transfer).

272 Appendix F Verifying Your Inventory Inventory Control User Guide


Quantity Data
Phase Associated programs
Phase Three • WH-IC Integrity Check - Report Only
(Warehouse and (WH422). This program ensures that the
Inventory Control inventory and warehouse files are in sync
Integrity Check) with the open documents.
Phase Four • WH-IC Detail Integrity Check (WH423).
(Warehouse and For UNIX and Windows, this program
Inventory Control Detail ensures consistencies within the ITEMLOC,
Integrity Check) ITSERIAL, and SOHDETAIL files based on
data within the WODETAIL, WHSHLDTL, and
WHDEMNDDTL files.
• WH-IC Detail Integrity Check - Report and
Update (WH433). For System i, this program
ensures consistencies within the DBICITL,
DBICSER, and DBICSDT files based on data
within the DBWOWOD, DBWHWHD, and
DBWHWDD files.

Update Programs
The following table describes which update programs belong to each of
the four phases, and what each program does. Update programs correct
your data (when run in Update mode), and should not be run until you have
reviewed the report results. These update programs must be run in the
order listed.
Phase Associated programs
Phase One (Orphan • RQ Orphan Record Check (RQ430). This
Record Check) program purges orphan records within the
Requisitions application.
• OE Orphan Check - Report and Update
(OE430). This program purges orphan
records within the Order Entry application.
• WO Orphan Check - Report and Update
(WO430). This program purges orphan
records within the Production Order
application.
• PO Orphan Record Check (PO430). This
program purges orphan records within the
Purchase Order application.
• WH Orphan Check - Report and Update
(WH430). This program purges orphan
records within the Warehouse application.
You must run WH Orphan Check - Report
and Update (WH430) after the other orphan
check programs have completed.

Inventory Control User Guide Appendix F Verifying Your Inventory 273


Quantity Data
Phase Associated programs
Phase Two (Document • RQ Document Integrity Check (RQ431). This
Integrity Check) program ensures that any open lines have an
open header and a corresponding demand
record within the Requisitions application.
• OE Document Integrity Check - Report
Only (OE431). This program ensures that
any open lines have an open header and
a corresponding demand record within the
Order Entry application.
• WO Document Integrity Check - Report and
Update (WO431). This program ensures that
any open lines have an open header and
a corresponding demand record within the
Production Order application.
• PO Document Integrity Check (PO431). This
program ensures that any open lines have an
open header and a corresponding demand
record within the Purchase Order application.
• IT Document Integrity Check - Report and
Update (WH431). This program ensures that
any open lines have an open header and
a corresponding demand record within the
Warehouse application.
WH421 also ensures that a demand record
exists for the pre-released document header
record when the transaction type is IT (Issue
Transfer).
Phase Three • WH-IC Integrity Check - Report and Update
(Warehouse and (WH432). This program ensures that the
Inventory Control Warehouse and Inventory Control application
Integrity Check) database files are in sync with the open
documents.
Phase Four • WH-IC Detail Integrity Check - Report and
(Warehouse and Update (WH433). For UNIX and Windows,
Inventory Control Detail this program ensures consistencies within
Integrity Check) the ITEMLOC, ITSERIAL, and SOHDETAIL
files based on data within the WODETAIL,
WHSHLDTL, and WHDEMNDDTL files.
• WH-IC Detail Integrity Check - Report and
Update (WH433). For System i, this program
ensures consistencies within the DBICITL,
DBICSER, and DBICSDT files based on data
within the DBWOWOD, DBWHWHD, and
DBWHWDD files.

274 Appendix F Verifying Your Inventory Inventory Control User Guide


Quantity Data
What CSV Files are Created by Update Programs?
The update programs create Comma-Separated Value (CSV) files. They are
created during Phase One.
CSV files serve several purposes. They
• Serve as an audit file and contain all of the records that were purged
from the database.
• Let you view and perform additional analysis on the purged records (can
be read by many PC software programs, including spreadsheets).
• Provide an historical record. If necessary, you can rebuild database
records from the contents of a CSV file.
You can find these CSV files in the following directory.
For UNIX, the directory is:
$LAWDIR/productline/work
For Windows, the directory is:
%LAWDIR%\productline\work
For System i, the directory is:
LAWDIR/productline/work
The following table lists the CSV files that are created by each of the update
programs.
Update program CSV file names
RQ Orphan Record For UNIX/Windows:
Check (RQ430) • RQ430/COCOMP.process-id
• RQ430/REQLINE.process-id
• RQ430/WHDEMNDDTL.process-id
• RQ430/MMDIST.process-id
• RQ430/RQLINEDTL.process-id
• RQ430/WHDEMAND.process-id
• RQ430/POINTERFAC.process-id
• RQ430/REQHEADER.process-id
For System i:
• RQ430/DBWHCKT.process-id
• RQ430/DBRQRLN.process-id
• RQ430/DBWHWDD.process-id
• RQ430/DBPOMMD.process-id
• RQ430/DBRQRQD.process-id
• RQ430/DBWHWDM.process-id
• RQ430/DBPOPIF.process-id
• RQ430/DBRQRQH.process-id

Inventory Control User Guide Appendix F Verifying Your Inventory 275


Quantity Data
Update program CSV file names
OE Orphan Check - For UNIX/Windows:
Report and Update • OE430/COCOMP.process-id
(OE430)
• OE430/COLINE.process-id
• OE430/COLINEUOM.process-id
• OE430/COMISC.process-id
• OE430/OEORDCMNT.process-id
• OE430/WHDEMAND.process-id
• OE430/WHDEMNDDTL.process-id
For System i:
• OE430/DBWHCKT.process-id
• OE430/DBOECOL.process-id
• OE430/DBOECOU.process-id
• OE430/DBOECMC.process-id
• OE430/DBOEOOC.process-id
• OE430/DBWHWDM.process-id
• OE430/DBWHWDD.process-id
WO Orphan Check - For UNIX/Windows:
Report and Update • WO430/WHDEMAND.process-id
(WO430)
• WO430/WHDEMNDDTL.process-id
• WO430/WOBRDN.process-id
• WO430/WOBYPROD.process-id
• WO430/WODETAIL.process-id
• WO430/WOITEM.process-id
For System i:
• WO430/DBWHWDM.process-id
• WO430/DBWHWDD.process-id
• WO430/DBWOWBN.process-id
• WO430/DBWOWOB.process-id
• WO430/DBWOWOD.process-id
• WO430/DBWOWOI.process-id

276 Appendix F Verifying Your Inventory Inventory Control User Guide


Quantity Data
Update program CSV file names
PO Orphan Record For UNIX/Windows:
Check (PO430) • PO430/ICTRANSDTL.process-id
• PO430/PURCHORDER.process-id
• PO430/PORECEIVE.process-id
• PO430/WHDEMAND.process-id
• PO430/MMDIST.process-id
• PO430/POLINE.process-id
• PO430/PORECLINE.process-id
• PO430/POAOCDTL.process-id
• PO430/POAOCSPRD.process-id
• PO430/MMUAVAL.process-id
• PO430/POAUDIT.process-id
• PO430/PORECADJHD.process-id
• PO430/PORECADJLN.process-id
• PO430/POLINEPVT.process-id
• PO430/POLINESRC.process-id
• PO430/POMESSAGE.process-id
• PO430/POTRANSDTL.process-id
• PO430/PORETURNHD.process-id
• PO430/PORETURNLN.process-id
• PO430/RECAOCDTL.process-id
• PO430/POPLIUF.process-id
For System i:
• PO430/DBICICD.process-id
• PO430/DBPOPCR.process-id
• PO430/DBPOPOR.process-id
• PO430/DBWHWDM.process-id
• PO430/DBPOMMD.process-id
• PO430/DBPOMMD.process-id
• PO430/DBPOPRL.process-id
• PO430/DBPOPAO.process-id
• PO430/DBPOPSP.process-id
• PO430/DBPOMUA.process-id
• PO430/DBPOPAU.process-id
• PO430/DBPOPJH.process-id
• PO430/DBPOPJL.process-id
• PO430/DBPOPLP.process-id
• PO430/POLINESRC.process-id
• PO430/DBPOPOM.process-id
• PO430/DBPOPOT.process-id
• PO430/DBPOPTH.process-id
Inventory Control User Guide Appendix F Verifying Your Inventory
• PO430/DBPOPTL.process-id 277
Quantity Data
• PO430/DBPOREC.process-id
• PO430/DBPOUFN.process-id
Update program CSV file names
WH Orphan Check - For UNIX/Windows:
Report and Update • WH430/WHDEMNDDTL.process-id
(WH430)
• WH430/WHSHIPCOMP.process-id
• WH430/WHSHIPLINE.process-id
• WH430/WHSHLAUD.process-id
• WH430/WHSHLDTL.process-id
• WH430/COCOMP.process-id
• WH430/WHDEMAND.process-id
For System i:
• WH430/DBWHWDD.process-id
• WH430/DBWHWHC.process-id
• WH430/DBWHWHL.process-id
• WH430/DBWHWHA.process-id
• WH430/DBWHWHD.process-id
• WH430/DBWHCKT.process-id
• WH430/DBWHWDM.process-id

What Database Files Are Updated by Update Programs?


The update programs also update the database files. The following table lists
each program and the database files affected.
Update program Database files affected
RQ Orphan Record Check For UNIX and Windows: COCOMP,
(RQ430) MMDIST, REQHEADER, REQLINE,
RQLINEDTL, WHDEMAND,
WHDEMNDDTL, ACCOMMIT,
ACCOMMITX, GLCOMMIT,
GLCOMMITX, and POINTERFAC
For System i: DBWHCKT, DBPOMMD,
DBRQRQH, DBRQRLN, DBRQRQD,
DBWHWDM, DBWHWDD, DBACMIT,
DBACMIX, DBGLGOT, DBGLGOX, and
DBPOPIF
OE Orphan Check - Report and For UNIX and Windows: COCOMP,
Update (OE430) COLINE, COLINEUOM, COMISC,
OEORDCMNT, WHDEMAND, and
WHDEMNDDTL
For System i: DBWHCKT, DBOECOL,
DBOECOU, DBOECMC, DBOEOOC,
DBWHWDM, and DBWHWDD

278 Appendix F Verifying Your Inventory Inventory Control User Guide


Quantity Data
Update program Database files affected
WO Orphan Check - Report and For UNIX and Windows: WHDEMAND,
Update (WO430) WHDEMNDDTL, WOBRDN,
WOBYPROD, WODETAIL, and
WOITEM
For System i: DBWHWDM, DBWHWDD,
DBWOWBN, DBWOWOB, DBWOWOD,
and DBWOWOI
PO Orphan Record Check For UNIX and Windows: MMDIST,
(PO430) POAOCDTL, POAOCSPRD, POLINE,
PORECEIVE, PORECLINE,
PURCHORDER, WHDEMAND,
ACCOMMIT, ACCOMMITX,
GLCOMMIT, GLCOMMITX,
MMUAVAL, POAUDIT, POLINEPVT,
POLINESRC, POMESSAGE, POPLIUF,
PORECADJHD, PORECADJLN,
PORETURNHD, PORETURNLN,
POTRANSDTL, and RECAOCDTL
For System i: DBPOMMD, DBPOPAO,
DBPOPSP, DBPOPLI, DBPOPOR,
DBPOPRL, DBPOPCR, DBWHWDM,
DBACMIT, DBACMIX, DBGLGOT,
DBGLGOX, DBPOMUA, DBPOPAU,
DBPOPLP, DBPOPLS, DBPOPOM,
DBPOUFN, DBPOPJH, DBPOPJL,
DBPOPTH, DBPOPTL, DBPOPOT, and
DBPOREC
WH Orphan Check - Report and For UNIX and Windows:
Update (WH430) WHDEMNDDTL, WHSHIPCOMP,
WHSHIPLINE, WHSHLAUD,
WHSHLDTL, COCOMP, WHDEMAND,
and WHSHIPMENT
For System i: DBWHWDD, DBWHWHC,
DBWHWHL, DBWHWHA, DBWHWHD,
DBWHCKT, DBWHWDM, and
DBWHWHS
RQ Document Integrity Check For UNIX and Windows: REQHEADER,
(RQ431) REQLINE, WHDEMAND, and
WHDEMNDHDR
For System i: DBRQRQH, DBRQRLN,
DBWHWDM, and DBWHWDH
OE Document Integrity Check - For UNIX and Windows: CUSTORDER,
Report and Update (OE431) WHDEMAND, WHDEMNDHDR, and
COLINE
For System i: DBOECOR, DBWHWDM,
DBWHWDH, and DBOECOL

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Quantity Data
Update program Database files affected
WO Document Integrity Check - For UNIX and Windows: WHDEMAND,
Report and Update (WO431) WHDEMNDDTL, and WHDEMNDHDR
For System i: DBWHWDM, DBWHWDD,
and DBWHWDH
PO Document Integrity Check For UNIX and Windows:
(PO431) PURCHORDER, WHDEMAND,
and POLINE
For System i: DBPOPCR, DBWHWDM,
and DBPOPLI
IT Document Integrity Check - For UNIX and Windows: WHDEMAND
Report and Update (WH431)
For System i: DBWHWDM
WH-IC Integrity Check - Report For UNIX and Windows: COLINE,
and Update (WH432) CUSTORDER, ITEMLOC,
REQHEADER, REQLINE,
WHDEMAND, WHDEMNDDTL,
WHSHIPLINE, and WHSHLDTL
For System i: DBOECOL, DBOECOR,
DBICITL, DBRQRQH, DBRQRLN,
DBWHWDM, DBWHWDD, DBWHWHL,
and DBWHWHD
WH-IC Detail Integrity Check - For UNIX and Windows: ITEMLOC,
Report and Update (WH433) ITSERIAL, SOHDETAIL, WHSHIPLINE,
WHSHLDTL, and WHDEMNDDTL
For System i: DBICITL, DBICSER,
DBICSDT, DBWHWHL, DBWHWHD,
and DBWHWDD

280 Appendix F Verifying Your Inventory Inventory Control User Guide


Quantity Data
Procedures in this Appendix
The procedures in this appendix explain the Data Verification Toolset process
and how to run the report and update programs to verify your inventory
quantity data.
• "Preparing Source Documents" on page 281
• "Checking for Orphan Records" on page 281
• "Running the Document Integrity Check" on page 284
• "Understanding Inventory Valuation" on page 288
• "Running the WH and IC Integrity Check" on page 289
• "Running the Warehouse Detail Integrity Check" on page 290
• "Performing a Physical Inventory" on page 290
• "Viewing Progress Messages" on page 291
• "Printing an Audit Trail History" on page 291
• "Understanding Record Statuses" on page 293

Preparing Source Documents


The Data Verification Toolset programs require that you run batch reports
before you update the application database. In order to run batch reports, you
must prepare the source documents for batch allocation.

NOTE If you only run Phase One (Orphan Record Check), it is not necessary
to allocate source documents.

STEPS To allocate source documents in batch mode


• Run Batch Allocation (WH110) to allocate inventory for released
documents for all inventory locations. WH110 updates the allocated and
backordered quantities for specific documents.

Checking for Orphan Records


In Phase One, you run report programs to check for orphan records. Review
the results of running these programs to decide whether you have a need for
the update programs.

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Quantity Data
Need More Details? Check out the following concepts:
• "What Is the Data Verification Toolset?" on page 269
• "In What Order Do I Run the Data Verification Toolset?" on page
270

STEPS To check for orphan records in Requisitions


1. Check for orphan records. Complete either step 1a or b.
a. Use the report programs only and the Requisitions application, run
RQ Orphan Check - Report Only (RQ420).
- or -
b. Use the update programs and the Requisitions application, run RQ
Orphan Record Check (RQ430). In the Update Option field, select
Report Only.
Details on the CSV files created are found elsewhere in this user
guide. For more information, see "What CSV Files are Created by
Update Programs?" on page 275.
2. Review the results to determine the correct method of making repairs.
You can make repairs manually or (if you have the update programs),
rerun RQ Orphan Record Check (RQ430) in Update mode.
If you made repairs manually, run RQ Orphan Record Check (RQ430)
in Report mode again to be sure that the errors are corrected. Then,
run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

STEPS To check for orphan records in Order Entry


1. Check for orphan records. Complete either step 1a or b.
a. Use the report programs only and the Order Entry application, run OE
Orphan Check - Report Only (OE420).
- or -
b. Use the update programs and the Order Entry application, run OE
Orphan Check - Report and Update (OE430). In the Update Option
field, select No Update (Just Report).
Details on the CSV files created are found elsewhere in this user
guide. For more information, see "What CSV Files are Created by
Update Programs?" on page 275.
2. Review the results to determine the correct method of making repairs.
You can make repairs manually or (if you have the update programs),
rerun OE Orphan Check - Report and Update (OE430) in Update mode.
If you made repairs manually, run OE Orphan Record Check (OE430) in
Report mode again to be sure that the errors are corrected. Then, run the
program in Update mode.

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Quantity Data
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

STEPS To check for orphan records in Production Order


1. Check for orphan records. Complete either step 1a or b.
a. Use the report programs only and the Production Order application,
run WO Orphan Check - Report Only (WO420).
- or -
b. Use the update programs and the Production Order application, run
WO Orphan Check - Report and Update (WO430). In the Update
Option field, select No Update (Just Report).
Details on the CSV files created are found elsewhere in this user
guide. For more information, see "What CSV Files are Created by
Update Programs?" on page 275.
2. Review the results to determine the correct method of making repairs.
You can make repairs manually or (if you have the update programs),
rerun WO Orphan Check - Report and Update (WO430) in Update mode.
If you made repairs manually, run WO Orphan Check - Report and
Update (WO430) in Report mode again to be sure that the errors are
corrected. Then, run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

STEPS To check for orphan records in Purchase Order


1. Check for orphan records. Complete either step 1a or b.
a. Use the report programs only and the Purchase Order application,
run PO Orphan Check - Report Only (PO420).
Indicate whether you interface receipts from a non-Lawson system
that has non-Lawson purchase order numbers.
- or -
b. Use the update programs and the Purchase Order application, run
PO Orphan Record Check (PO430). In the Update Option field,
select Report Only.
Indicate whether you interface receipts from a non-Lawson system
that has non-Lawson purchase order numbers.
For more information, see "What CSV Files are Created by Update
Programs?" on page 275.
2. Review the results to determine the correct method of making repairs.
You can make repairs manually or (if you have the update programs),
rerun PO Orphan Record Check (PO430) in Update mode.
If you made repairs manually, run PO Orphan Record Check (PO430) in
Report mode again to be sure that the errors are corrected. Then, run the
program in Update mode.

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Quantity Data
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

STEPS To check for orphan records in Warehouse


1. Check for orphan records. Complete either step 1a or b.
a. Use the report programs only and the Warehouse application, run
WH Orphan Check - Report Only (WH420).
- or -
b. Use the update programs and the Warehouse application, run WH
Orphan Check - Report and Update (WH430). In the Update field,
select No Update (Just Report).
Details on the CSV files created are found elsewhere in this user
guide. For more information, see "What CSV Files are Created by
Update Programs?" on page 275.
2. Review the results to determine the correct method of making repairs.
You can make repairs manually or (if you have the update programs),
rerun WH Orphan Check - Report and Update (WH430) in Update mode.
If you made repairs manually, run WH Orphan Check - Report and Update
(WH430) in Report mode again to be sure that the errors are corrected.
Then, run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

Running the Document Integrity Check


In Phase Two, you run the document integrity check programs to check closed
headers and detail lines to make sure that the detail lines of each record
correspond to its header information. Also, the Phase Two programs ensure
that any open lines have an open header and a corresponding demand record
within the following applications:
• Requisitions
• Order Entry
• Production Order
• Purchase Order
• Warehouse
If header records are out of sync, running these programs creates missing
demand and demand header records, as necessary.

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Quantity Data
NOTE Most problems
that are discovered Need More Details? Check out the following concepts:
by running the Phase
Two programs can be • "What Is the Data Verification Toolset?" on page 269
automatically repaired. • "In What Order Do I Run the Data Verification Toolset?" on page 270
With the others, you
must manually repair
the problems because
the Phase Two program
does not know how
to best resolve the
problems for your
specific business.

STEPS To run the document integrity check for Requisitions


1. Close the requisitions and requisition lines that completed processing.
For more information, see "Preparing Source Documents" on page 281.
2. Run the document integrity check. Complete either step 2a or b.
a. Use the report programs only and the Requisitions application, run
RQ Document Integrity Check - Report Only (RQ421).
- or -
b. Use the update programs and the Requisitions application, run RQ
Document Integrity Check (RQ431). In the Update Option field, select
Report Only.
3. Review the results to determine the correct method of making repairs.
Any error messages that display indicate the following:
• What the problem is
• Whether the problem can be fixed by running the program (if you
have the update programs)
• What will be fixed to resolve the problem
Make repairs manually or rerun the program in Update mode (if you have
the update programs).
If you made repairs manually, run RQ Document Integrity Check (RQ431)
in Report mode again to be sure that the errors are corrected. Then,
run the program in Update mode.
4. After repairs are made, repeat step 2 to make sure that no errors exist
before going on to the next phase.

STEPS To run the document integrity check for Order Entry


1. Run the document integrity check. Complete either step 1a or b.
a. Use the report programs only and the Order Entry application, run OE
Document Integrity Check - Report Only (OE421).
- or -
b. Use the update programs and the Order Entry application, run OE
Document Integrity Check - Report and Update (OE431). In the
Update field, select No Update (Just Report).
2. Review the results to determine the correct method of making repairs.
Any error messages that display indicate the following:
• What the problem is

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Quantity Data
• Whether the problem can be fixed by running the program (if you
have the update programs)
• What will be fixed to resolve the problem
Make repairs manually or rerun the program in Update mode (if you have
the update programs).
If you made repairs manually, run OE Document Integrity Check - Report
and Update (OE431) in Report mode again to be sure that the errors are
corrected. Then, run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

STEPS To run the document integrity check for Production Order


1. Run the document integrity check. Complete either step 1a or b.
a. Use the report programs only and the Production Order application,
run WO Document Integrity Check - Report Only (WO421).
In the Range of Work Orders field, you can enter a beginning and
ending range of work orders to include in the report (leave blank to
report on all work orders).
- or -
b. Use the update programs and the Production Order application, run
WO Document Integrity Check - Report and Update (WO431). In the
Update field, select No Update (Just Report).
In the Range of Work Orders field, you can enter a beginning and
ending range of work orders to include in the report (leave blank to
report on all work orders).
2. Review the results to determine the correct method of making repairs.
Any error messages that display indicate the following:
• What the problem is
• Whether the problem can be fixed by running the program (if you
have the update programs)
• What will be fixed to resolve the problem
Make repairs manually or rerun the program in Update mode (if you have
the update programs).
If you made repairs manually, run WO Document Integrity Check - Report
and Update (WO431) in Report mode again to be sure that the errors are
corrected. Then, run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

STEPS To run the document integrity check for Purchase Order


1. Run the document integrity check. Complete either step 1a or b.
a. Use the report programs only and the Purchase Order application,
run PO Document Integrity Check - Report Only (PO421).
- or -

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Quantity Data
b. Use the update programs and the Purchase Order application, run
PO Document Integrity Check (PO431). In the Update Option field,
select Report Only.
2. Review the results to determine the correct method of making repairs.
Any error messages that display indicate the following:
• What the problem is
• Whether the problem can be fixed by running the program (if you
have the update programs)
• What will be fixed to resolve the problem
Make repairs manually or rerun the program in Update mode (if you have
the update programs).
If you made repairs manually, run PO Document Integrity Check (PO431)
in Report mode again to be sure that the errors are corrected. Then,
run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

STEPS To run the document integrity check for Warehouse


1. Run the document integrity check. Complete either step 1a or b.
a. Use the report programs only and the Warehouse application, run IT
Document Integrity Check - Report Only (WH421).
- or -
b. Use the update programs and the Warehouse application, run IT
Document Integrity Check - Report and Update (WH431). In the
Update Option field, select Report Only.
2. Review the results to determine the correct method of making repairs.
Any error messages that display indicate the following:
• What the problem is
• Whether the problem can be fixed by running the program (if you
have the update programs)
• What will be fixed to resolve the problem
Make repairs manually or rerun the program in Update mode (if you have
the update programs).
If you made repairs manually, run IT Document Integrity Check - Report
and Update (WH431) in Report mode again to be sure that the errors are
corrected. Then, run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

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Quantity Data
Understanding Inventory Valuation
Running the Data Verification Toolset programs does not affect your general
ledger. Specifically, the programs do not change the stock on hand value
in the Item Location file. The two inventory valuation reports look at the
stock-on-hand quantity at the item location. The two reports are:
• Inventory Valuation (IC233)
• Period End Valuation (IC234)
These are the reports that you would use to balance your inventory to your
general ledger. After the Data Verification Toolset process is complete,
Lawson recommends that you do a complete physical inventory. For more
information, see "Performing a Physical Inventory" on page 290. The physical
inventory creates the necessary Inventory Transaction records based on
inventory variances, to correctly update the general ledger when you run
General Ledger Interface (IC130).

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Quantity Data
Running the WH and IC Integrity Check
After you complete Phases One and Two (running in Update mode), you are
ready to start Phase Three. By completing this phase, you ensure that the
Warehouse and Inventory Control application database files are in sync with
the open documents.
When you run WH-IC Integrity Check - Report and Update (WH432), the
program uses the Warehouse demand file to synchronize with transactional
count fields on the Item Location file. All demand records for a specific item
location are accumulated and used to update the following quantities on the
Item Location file:
• Allocated
• In-process
• Backordered
• On-order
• Work-in-Process
• Intransit
• Unallocated

STEPS To run the WH and IC integrity check


1. Run the WH and IC integrity check. Complete either step 1a or b.
a. Use the report programs only and the Warehouse application, run
WH-IC Integrity Check - Report Only (WH422).
- or -
b. Use the update programs and the Warehouse application, run WH-IC
Integrity Check - Report and Update (WH432). In the Update field,
select No Update (Just Report).
2. Review the report to determine the correct way to make repairs. You
can make repairs manually or rerun the program in Update mode (if you
have the update programs).
If you made repairs manually, run WH-IC Integrity Check - Report and
Update (WH432) in Report mode again to be sure that the errors are
corrected. Then, run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist
before going on to the next phase.

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Quantity Data
Running the Warehouse Detail Integrity Check
In Phase Four, you make sure that the lot, bin, serial numbers, and multiple
units of measure agree with the records within the Warehouse application
(and also with the external document that created them).

IMPORTANT It is important that you not change the values for bin tracking,
serial numbered tracking, or lot tracking on Item Master (IC11.1) or Item
Location (IC12.1). The accuracy of the Phase Four programs depends on the
value you defined for bin tracking, serial numbered tracking, and lot tracking.
The value determines how the data displays, and may affect how the program
reads (and possibly repairs) the data.

For UNIX and Windows, running the Phase Four programs ensures
consistencies within the ITEMLOC, ITSERIAL, and SOHDETAIL files based
on data within the WODETAIL, WHSHLDTL, and WHDEMNDDTL files.
For System i, running the Phase Four programs ensures consistencies
within the DBICITL, DBICSER, and DBICSDT files based on data within the
DBWOWOD, DBWHWHD, and DBWHWDD files.

STEPS To run the Warehouse detail integrity check


1. Run the Warehouse detail integrity check. Complete either step 1a or b.
a. Use the report programs only and the Warehouse application, run
WH-IC Detail Integrity Check (WH423).
- or -
b. Use the update programs and the Warehouse application, run WH-IC
Detail Integrity Check - Report and Update (WH433). In the Update
field, select No Update (Just Report).
2. Review the report to determine the correct way to make repairs. You
can make repairs manually or rerun the program in Update mode (if you
have the update programs).
If you made repairs manually, run WH-IC Detail Integrity Check - Report
and Update (WH433) in Report mode again to be sure that the errors are
corrected. Then, run the program in Update mode.
3. After repairs are made, repeat step 1 to make sure that no errors exist.

Performing a Physical Inventory


After you have completed all four phases (in Update mode), you must perform
a full physical inventory. In the event that this is not possible, at a minimum
perform a full cycle count of the items discovered as having problems in
Phase Four (WH-IC Detail Integrity Check - Report and Update (WH433).

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Viewing Progress Messages
During the Data Verification Toolset phases, the batch programs dump
progress messages into the examine log every 1000 records. You can view
the progress messages in the examine log while the job is running. This helps
you to see the progress being made while you are running a batch program.

STEPS To view progress messages


1. From within the batch program, choose the Job Scheduler button. You
are transferred to the Active Jobs form.
2. On the Active Jobs form, select the E (Examine Log) form action.
3. Select the job that you want to view.

Printing an Audit Trail History


You can print a history of which Data Verification Toolset programs were
run and what their actions were. Running Data Verification Audit Report
(WH440) can be used to troubleshoot the Data Verification Toolset process
and investigate further. The report gives detailed information on which
database files and fields were changed by running the update programs in
Update mode.

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Quantity Data
STEPS To print an audit trail history
• Run the Data Verification Audit Report (WH440) to print a history of which
database files and fields were changed. Consider the following fields.
Company Select a company that you defined using
Company (IC01.1). WH440 only reports on audit
records that are assigned to this company.
Location Select an inventory location that you defined
using Location (IC02.1). WH440 only reports on
audit records that are assigned to this location in
Item Location (IC12.1).
To include all locations, leave this field blank.
Be aware that process records (those that tell you
when Data Verification Toolset programs stopped
or started) do not contain location information
and will be omitted if a location is specified.
Report Group Select a report group and the form processes
only those locations assigned to the report group
in Report Group (IC03.1).
Program Select a Data Verification Toolset program to
restrict the report output to records that were
created by the specified program.
File Name Enter a file name to restrict the report output to
records that were added, updated, or deleted in
the database file name specified.
Date Range Enter a date range to audit changes made within
a specific date range.
Report Format Select the report format you want (Process,
Changes, or Details).
Select Process to report only what and when the
Data Verification Toolset programs ran.
Select Changes to also report on which database
files and fields were updated.
Select Details to also report on other record
information for the database fields that were
updated.
Purge Decide whether to purge audit records that are
included in this report (defaults to No).
You cannot use the Program and File Name fields
if you decide to purge audit records.

292 Appendix F Verifying Your Inventory Inventory Control User Guide


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Understanding Record Statuses
Understanding what the valid record statuses are can be helpful in the Data
Verification Toolset process. See the following table for information on the
record statuses that are valid for the database files involved.
CUSTORDER (for UNIX 1 = Unreleased
and Windows)
2 = Released
DBOECOR (for System i)
8 = Canceled
9 = Ready for Purge
COLINE (for UNIX and 0 = Needs Cleanup
Windows)
1 = Unreleased
DBOECOL (for System i)
2 = Released
8 = Canceled
9 = Ready for Delete
REQHEADER (for UNIX 0 = Unreleased
and Windows)
1 = Released
DBRQRQH (for System i)
8 = Rejected
9 = Processed
REQLINE (for UNIX and 0 = Unreleased
Windows)
1 = Released
DBRQRLN (for System i)
8 = Rejected
9 = Processed
WHDEMAND (for UNIX 0 = Unreleased
and Windows)
1 = Released for Processing
DBWHWDM (for System
i)
WHSHIPMENT (for UNIX 0 = Printed
and Windows)
1 = Picked
DBWHWHS (for System
2 = Packed
i)
3 = Shipped
4 = Released
5 = Closed

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Quantity Data
WHSHLAUD (for UNIX 0 = Printed
and Windows)
1 = Picked
DBWHWHA (for System
2 = Packed
i)
3 = Shipped
4 = Released
5 = Closed
WORDER (for UNIX and 1 = Unreleased
Windows)
2 = Released
DBWOWOR (for System
3 = Exploded
i)
4 = In Production
8 = Canceled
9 = Completed

The Purchase Order application database files PURCHORDER and POLINE


do not have a status field. Their status is decided by the fields listed in the
following table.
The Purchase Order application database files DBPOPCR and DBPOPLI
do not have a status field. Their status is decided by the fields listed in the
following table.
PURCHORDER (for RELEASED-FL = Y or N
UNIX and Windows)
ISSUED-FLAG = Y or N
DBPOPCR (for System i)
REVISED-FL = Y or N
CANCELED-FL = Y or N
CLOSED-FL = Y or N
POLINE (for UNIX and RELEASED-FL = Y or N
Windows)
ISSUED-FLAG = Y or N
DBPOPLI (for System i)
REVISED-FL = Y or N
CLOSED-FL = Y or N

294 Appendix F Verifying Your Inventory Inventory Control User Guide


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Appendix G

Documentation Conventions and Support

Documentation conventions
This document uses specific text conventions and visual elements.

Text conventions
This Represents
bold A key name or function key name. For example, Shift is
a key name and Help (F1) is a function key name.
A value or command that you must type exactly as it
appears.
A program or file name.
italics A manual title or form name.
An emphasized word or phrase.
A placeholder for a user-defined value or variable.

Visual elements

Before you start Information that you must know before you attempt the
procedure or process.

IMPORTANT Important information that you must consider when you perform
the procedure.

CAUTION Cautionary information about actions that involve a risk of


possible damage to equipment, data, or software.

WARNING Warning information about actions that involve a risk of


personal injury or irreversible destruction to the data or operating
system.

Inventory Control User Guide Appendix G Documentation Conventions 295


and Support
Product documentation
Lawson offers the following product documentation:
• Online help
• User guides and manuals
• Release notes and installation instructions
To find Lawson documentation, see the user interface or http://
support.lawson.com. To obtain a login password and ID for the Support site,
see your organizations Lawson contact or your Lawson client manager.

Global support center


Lawson Global Support Center (GSC) services are available to all Lawson
customers who are on maintenance support for Lawson products. See the
Global Support Manual for the following information:
• What information to gather before you contact the GSC
• How to contact the GSC
• How the GSC processes your request
• Which services are standard maintenance and which are billable
To find the Global Support Manual, see http://support.lawson.com. To obtain
a login password and ID for the support web site, see your organizations
Lawson contact or your Lawson client manager.

Documentation contact
We welcome your questions or suggestions about Lawson documentation.
Please send comments to documentation@lawson.com.

296 Appendix G Documentation Conventions Inventory Control User Guide


and Support
Index

A loading UNSPSC, 63
understanding NDC codes, 47
Accessories, assigning to make-to-order kits, 226
understanding SKU codes, 47
Accounting unit, 23
understanding UPC codes, 46
Accounts Payable, 24
understanding UPN codes, 47
pay groups, 24
UNSPSC defined, 46
setting up, 28
Comment Types, 35
Allocation Rules, 38
Comments
Associated items
burdens, 229, 232
complimentary items, 90
byproducts, 232
definition of, 90
components, 232
substitute items, 90
finished goods, 232
Associated Items
Complimentary items
setting up, 100
definition of, 90
Audit trail history
Components
printing, 291
attaching comments, 232
Average Costing Method, 37
displaying in kits, 227
example, 225
finished goods, 233
B kinds of, 230
make-to-order kits, 226
Bin Usage Types, 39 replacing and deleting, 228
defining, 56 required and non-required, 226
Bins, 39 viewing availability in make-to-order kits, 227
setting up, 65 Consignment Items
Burdens setting up, 78
adding, 229 understanding, 71
attaching comments, 229, 232 Costing Methods, 37
kinds of, 229 Count Sheet, 108
listing, 230 printing, 113
Byproducts Count Variance, 109
attaching comments, 232 adjusting, 121
example, 231 adjusting count detail, 123
explaining, 128
inquiring on, 119
C randomly adjusting, 125
Currency
Cart or Par Location, 188 code, 21
assigning items, 193 relationship, 21
defining account information, 193 setting up, 26
replenishing, 197 table, 20
setting up, 191
updating item location reorder point, 202
Catch Weight, 108
Chart of accounts, 22 D
Codes Data Verification Toolset
adding UNSPSC, 64 checking for orphan records, 281

Inventory Control User Guide Index 297


creating CSV files, 275
database files affected, 278 G
four phases, 270 General Ledger
kinds of programs, 269 company, 22
order of running programs, 270 setting up, 27
performing a physical inventory, 290 system control, 23
preparing source documents, 281 General Ledger Category
printing audit trail history, 291 defining, 60
purpose, 269 understanding, 41
running the document integrity check, 284 Gross Margin Return on Investment, 184
running Warehouse detail integrity check, 290
running WH and IC integrity check, 289
understanding inventory valuation, 288
understanding record statuses, 293 H
viewing progress messages, 291 Handheld Terminal (HHT), 189
Document ID
understanding, 134
Document integrity check
purpose, 284
running, 284
I
Intransit Receipt, 150
receiving intransit transfers, 154
Inventory Adjustment
E adjusting inventory costs, 164
adjusting inventory quantities, 161
Economic Order Quantity (EOQ) understanding, 160
understanding, 87 Inventory Classes, 44
Error Message defining, 61
out of balance, 134 Inventory Codes
storage code mismatch, 160 defining, 62
Inventory Control Company
defining, 52
F understanding, 36
Inventory Control Period, 182
FIFO (First In, First Out), 37 closing, 183
Fill and Kill, 190 closing under system control, 185
Finished goods listing unreleased documents, 183
attaching comments, 232 releasing unreleased documents, 183
burdens, 229 updating General Ledger transactions, 183
defining, 230 Inventory Location, 39
inquiring, 227 defining, 56
listing, 234 Inventory Replenishment
make codes, 225 Cart or Par Location, 189
replacing and deleting components, 228 exception reporting, 169
understanding, 225 replenishing bins, 176
Fixed Order Point (FOP), 84 replenishing from a vendor, 172
Freeze File, 108 replenishing from another location, 170
creating, 113 replenishing through requisitions, 174
deleting, 130 understanding, 168
Inventory valuation
reports, 288
understanding, 288
Issue, 132

298 Index Inventory Control User Guide


Item
issuing inventory, 135
M
bin-tracked, 39, 84 Make-to-order kits
lot-tracked, 70 assigning accessories, 227
serial number-tracked, 70 defining, 226
Item Forecasting inquiring, 227
defining, 178 listing, 227
understanding, 89, 169 make codes, 225
Item Group replacing and deleting components, 228
defining, 49 viewing component availability, 227
understanding, 34 writing assembly instructions, 227
Item Location, 82 Manufacturer relationships
setting up, 91 defining, 260
Item Master understanding, 260
setting up, 73 Movement class
understanding, 70 definition of, 84
Item Type
inventory, 82
non-stock, 83
service, 83 N
special, 83 National Drug Codes
understanding, 82 understanding, 47
Items
defining item comments, 103
defining kits, 225
mass updating, 100 O
Orphan record check
definition, 270
K purpose, 270
running, 281
Keyword searches
defined, 48
defining, 65
Keyword synonyms, defining, 65
Kits
P
components Par Level, 189
assigning, 226, 230 Patient charge items
replacing and deleting, 228 setting up, 236
finished goods, 230 Patient charges
kinds of, 225 defining manually, 240
make codes, 225 extracting for a patient billing system, 241
make-to-order, 226 implementing, 235
understanding, 225 processing manually, 238
purging, 242
reconciling, 241
Patient Demographic Data
L defining manually, 240
loading HL7 file, 237
LIFO (Last In, First Out), 37 loading Lawson format file, 237
Period End Dates, 38
defining, 54
Periods
scheduling, 233

Inventory Control User Guide Index 299


Physical inventory running the WH and IC integrity check, 289
performing, 290 running Warehouse detail integrity check, 290
Physical Inventory, 106 Requester
cart or par location, 189 understanding, 190
entering count detail, 116 Requesting Location, 132
entering counts, 115 Requisitions
entering item counts, 118 setting up, 28
updating inventory counts, 126
Price class table
setting up, 235
Procurement Group S
understanding, 48 Searches
Product Transfer and Resale Report defining keyword, 65
running, 263 keyword defined, 48
understanding, 259 Select ID
Progress messages defining, 110
viewing, 291 understanding, 106
Project Accounting, 24 Setup
setting up, 28 burdens, 229
Purchase Order finished goods, 230
setting up, 31 make-to-order kits, 226
Shelf Location, 189
Ship To Facilities
R defining, 259
understanding, 259
Reason Code, 109 SKU Codes
Receipt, 150 understanding, 47
receiving inventory, 151 Source documents
Record statuses allocating in batch mode, 281
listing by database file, 293 closing processed requisitions, 281
Reorder Document, 87 Standard Costing Method, 37
Reorder Point, 87 Stock On Hand, 83
Reorder Policy Storage Code, 160
setting up, 84 Storage Codes, 39
understanding, 84 Substitute items
Reorder Quantity definition of, 90
understanding, 87 Supply charge prices
Replenishment calculating, 237
cart or par locations, 197 maintaining, 239
from a vendor, 172 Synonym, defining keyword, 65
from another location, 170 System control, 23
through requisitions, 174
understanding, 168
Replenishment Requesters
understanding, 40 T
Report Group, 40 Tax
defining, 59 setting up, 30
Report programs Time-phased Order (TPO), 84
checking for orphan records, 281 Transaction Interfacing, 134
four phases, 270 Transaction Type, 133
listing by phase, 271 Transfer, 140
purpose, 271 detail, 140
running the document integrity check, 284 direct, 140

300 Index Inventory Control User Guide


intransit, 140 manually repairing records, 284
transferring inventory to another location, 141 prerequisites, 269
transferring inventory within a location, 144 printing audit trail history, 291
Troubleshooting purpose, 273
printing audit trail history, 291 running the document integrity check, 284
viewing progress messages, 291 running the WH and IC integrity check, 289
running Warehouse detail integrity check, 290
UPN Codes

U understanding, 47
User Fields, 47
Unit Cost Defaults, 150
Unit of Measure, 35
multiple, 71
UNSPSC codes
W
adding, 64 Walk Thru, 134
defined, 46 Warehouse
loading, 63 setting up, 30
UPC Codes Warehouse detail integrity check
understanding, 46 purpose, 270, 290
Update programs running, 290
accessing, 270 Warehouse Report Options
checking for orphan records, 281 defining, 56
creating CSV files, 275 WH and IC integrity check
database files affected, 278 purpose, 270, 289
four phases, 270 running, 289
listing by phase, 273 updating quantities on Item Location file, 289

Inventory Control User Guide Index 301