1. What is the difference between WO close and WO accounting close ?

3
2. What are the different types of transaction types in mfg-pro? 4
3. What is tag count when it is used ? 5
4. Explain the purchase cycle 6
5. What are the different types of Purchase orders 6
6. What is supplier calendar, where can it be used ? 7
7. What is the difference between the WO module and Repetative module. 7
8. Explain the Payment Cycle 8
9. What are the different variances that may occur during the payments? 10
10. What is a schedule order? 10
11. How can u ensure that the supplier is given a schedule on a particular day of the week say only on
Monday? 11
12. Explain GTM why and where it can be used 11
13. What is MRP? What are the different types of MRP? 12
14. What are the primary input for MRP explain in details? 13
15. Can the status of the the material can be changed? 17
16. What are financial transactions passed when u do vouchering and payments? 17
17. What is the difference between transfer variance acct transfer clearing acct, inter-company acct? 18
18. What is CST-ADJ transaction? 18
19. What is the differenece between the Balance Sheet and income statement? 22
20. What are the transaction type and GL implecations in the work order module? 22
21. What is the differnce between ILT and RLT? 23
22. What is meant by work order receipt back-flush? 23
23. What is meant by bulk tag create, tag void ,check cancellation, check void? 23
24. Explain GTM why and where it can be used? 23
25. What are the order modifiers in GTM? 24
26. What are the various amounts involved in GTM or what are the GL implication of the GTM? 25
27. What is the difference between the tax on tax and tax in tax? 25
28. What are the two types of the reverse Tax Calculations? 25
29. What are the financial transaction passes when u do the sales order shipment and invoice post? 26
30. How can u do the sales order return? 26
31. What are the different transactions types codes in accounts receivables? 26
32. What are the transaction types and there GL impact in accounts receivable? 27
33. What is excise? What are the transactions related to excise? 28
34. What is the time fence in planning masters? 28
35. What is the difference between advance repetitive and repetitive production? Similarly what’s the diff
between repetitive and work orders? 29
36. What is the difference between cycle count and physical inventory count? 29
37. Explain the sales order cycle? 29
38. What are firm days, plan days in schedule orders? If the firm days is 3, plan days is 4 then what is
the output if the MRP is run as of 15th july 2003 and there are some orders due till 22nd july 2003? 30
1. What is the difference between WO close and WO accounting close.
2. What are the different types of transaction types in mfg-pro
3. What is tag count when it is used
4. Explain the purchase cycle
5. What is the difference between the WO module and Repetative module.
6. Explain the Payment cycle
7. Explain the Sales Cycle
8. What is a schedule order
9. Explain GTM why and where it can be used
10. How can u ensure that the supplier is given a schedule on a particular day of the week
say only on Monday.
11. What is MRP .What are the different types of MRP
12. Can the status of the the material can be changed
13. What are financial transactions passed when u do vouchering and payments.
14. What are the transaction passed when the payment is made
15. The financial transaction passed when the sales order is updated.
16. What are the primary input for MRP explain in details
17. Explain the WO-Cycle
18. What is the difference between transfer variance acct transfer clearing acct, inter-
company acct.
19. What is the difference between work order and RLT
20. What is CST-ADJ transaction
21. What is the difference between the balance sheet and income statement
22. What are the transaction type and GL implecations in the work order module
23. What are the meaning of transaction type ISS-PREV,RCT-WO,RCT-WO,RJCT-
WO,WO-CLOSE,ISS-SO,RCT-JIT,ISS-DO
24. How can u do sales order return
25. How can I hide the transaction history
26. What is the GL implications when u do the invoice post
27. What is the difference between ILT and RTL
28. What is meant by bulk tag create tag void check cancellation chack void
29. What is meant by work order back-flush
30. What is the output of MRP
31. What is the difference between TAX in TAX and TAX on TAX
32. What is draft , draft maintenance debit note,credit note
33. What are the GL implications when u receive the payments
34. What are the different types of cost methods
35. What is 3 way matching –Physical receipts
36. What is sub contract purchasing
37. What is GTM and how do u set the GTM
38. Where do u define GTM
39. What are the order modifiers in GTM
40. Do MRP takes into account blanket order quantity? No
41. What is the time fence in planning masters ?
42. What is the difference between advance repetitive and repetitive production?
Similarly what’s the diff between repetitive and work orders?
43. What r firm days, plan days in schedule orders? If the firm days is 3, plan days is 4
then what is the output if the MRP is run as of 15th july 2003 and there r some orders
due till 22nd july 2003?
44. What is the difference between cycle count and physical inventory count?
45. What are the different types of the JL entries JV RV and Retro-active entiries
46.

What is time fence in item planning master?

1. What is the difference between WO close and WO accounting close ?

Accounting close, used at period end, clears work in process (WIP) amounts and
calculates and posts variances. Work Order Status must be "C" for processing. Final
Assembly Orders with open sales order lines will not be processed. Sales order lines are
considered open until the quantity shipped is at least equal to the quantity ordered, and
this shipped quantity has been posted via an invoice.

There is one screen. Effective Date must be in the correct General Ledger calendar
period.

This is the last step in the work order life cycle. Work orders are created, released,
components issued, labor feedback entered, and finished items received. After these steps
are completed the work order status changes to [C], closed. The accounting close
considers only closed work orders, going through five steps:

1. It flags any open work order operation as complete and posts the standard labor and
burden based on the work order quantity completed. If no actual hours have been
posted the standard hours are posted as actual hours. Since these operations are closed
at standard, no variances apply.
2. It adjusts the quantity complete at each open operation (or at the following operation)
where insufficient quantities were reported to total the sum of completions and rejects
at work order receipt. If the total rejects reported on receipt were greater than those
reported at the operations, the difference is added to quantity complete at the final
operation.
3. It uses the total quantity received against this work order to calculate Material and
Subcontract Usage variances. If 80 units were received but material was issued for
100 units, the excess material cost is posted to Material Usage Variance.
4. Floor Stock is deducted from WIP. This is the cost of any component items set up in
pppsmt02.p as Issue Policy No.
5. Any amount remaining in WIP is posted to the Method Variance account. Usually
this results from using a different work center for an operation. It may also reflect in-
process losses; labor for working on materials that were rejected.
6. Current costs are updated to reflect the actual cost of labor, burden, and subcontract.

Operation Completion:
o Debits the Work in Process Acct from the work order.
o Credits the Labor Account from the work center department.
o Credits the Burden Account from the work center department.

Floor Stock:
o Debits the Floor Stock Account from the work order.
o Credits the Work in Process Acct from the work order.

Method Variance:
o Debits the Method Variance Acct from the product line of the item.
o Credits the Work in Process Acct from the work order.

2. What are the different types of transaction types in mfg-pro?

Following are the transaction types in mfg/pro transaction types assigned by the system:

CST-ADJ - Cost Adjustment

CYC-CNT - Cycle Count Adjustment
CYC-ERR - Cycle Count Error
CYC-RCNT - Cycle Count Recount
ISS-CHL/RCT-CHL - Change Inventory Detail
ISS-DO - Distribution Order Shipment
ISS-FAS –Configured Item component issue
ISS-GIT - Distribution Order Receipt
ISS-PRV - Purchase Return to Supplier
ISS-RV - Inventory Return to Supplier
ISS-SO - Sales Order Shipment
ISS-TR/RCT-TR - Inventory Transfer
ISS-UNP/RCT-UNP - Unplanned Issue/Receipt
ISS-WO/RCT-WO - Work Order Issue/Receipt
ORD-SO - Sales Order Booking
RCT-DO - Distribution Order Receipt
RCT-GIT - Distribution Order Shipment
RCT-PO - Purchase Order Receipt
RCT-RS - Inventory Return to Stock
RCT-SOR - Inventory Sales Order Return
RJCT-WO - Work Order Reject
TAG-CNT - Physical Inventory Update
WIP-ADJ Work in Process Adjustment

3. What is tag count when it is used?

Physical inventory counts- i.e. tag count is used to update quantity on hand--record and
compare actual counts for an item with the system quantity on hand.
There is no effect. Inventory balances are not changed until the Inventory Balance Update
is run. There is no effect. No GL transactions are created until the Inventory Balance
Update is run.

A complete physical inventory usually involves several steps:

o Delete/archive previous physical inventory tags

o Freeze inventory balances
o Create and print count tags (or before freeze)
o Enter initial tag counts
o Review results and enter recounts if necessary
 o Void unused tags
o Update inventory balances

The transaction type is TAG-CNT. Following GL transactions takes place

o Debits (Credits) the Inventory Acct defined in Inventory Account Maintenance for
the product line, site, and location.

o Credits (Debits) the Inventory Discrepancy Acct defined in Inventory Account

Maintenance for the product line, site, and location.

4. Explain the purchase cycle

A purchase order (PO) is a response to a demand for materials -- a requisition or
an MRP action message. It says that you expect to receive certain items on certain due
dates from a certain supplier, and that you have agreed to pay for those items according
to the terms and prices specified.
POs can be entered manually or created by processing a release against an
existing blanket order. They control and monitor the progress and cost of purchasing
activities.
No financial activity takes place until a purchased item is received (or returned),
when MFG/PRO creates this General Ledger entry for inventory items:
Debit Inventory (Total GL Cost)
Debit PO Price Variance (Total GL - Ovh - PO Cost)
Credit Applied Overhead (Ovh Cost)
Credit PO Receipts Accrual (PO Cost)
These accounts are accessed based on the product line of the purchased item -- not
the Purchases Acct on the PO. If the line received is taxable and the tax is not
recoverable, the tax amount is included in the calculation of the PO Cost. If the tax
amount is recoverable, then it is debited to the recoverable tax account. (In both cases the
PO Receipts the tax amount is included in the PO Receipts Accrual.)

Following explains the purchase order cycle

Return
Requestion

Purchase order
Receipt Invoice

Blanket Order
Supplier Schedule

5. What are the different types of Purchase orders

There are three types of the purchase orders that MFG/PRO supports
1. Discrete Purchase order
2. Blanket purchase order
3. Supplier Schedule

Discrete Purchase Order: These are used for single transaction with the supplier where
there is no assumption that the further transaction will occur. Purchase order contains a
single delivery dates for the line items .MRP considers this as the supply.

Blanket Purchase Order: These are used for multiple deliveries of stock items where
ongoing relationship with the supplier is assumed but there is no exact delivery dates are
yet to be determined. Quantity and the due date can be entered upon the time when the
blanket order become the purchase order Receipts can not be made against the blanket
order, MRP does not consider the blanket orders.

Supplier Schedule: Supplier Schedule is an agreement with the supplier that guarantees
a specified order level. Supplier schedules specifies that date and even hours of the
delivery. A scheduled order is like a purchase order -- it communicates demand to a
supplier and receipts are processed against it -- but each line item has multiple due dates
and order quantities. Scheduled orders are entered manually; line item Schedules can be
generated using information you enter here.

6. What is supplier calendar, where can it be used?

Supplier calendars are used by Schedule Update from MRP to calculate shipment
dates, back-scheduling requirements if the initial due date is not a workday for the
supplier.
The hours on the second screen, Operating Day Hour Exceptions, are reference
only -- the supplier closes down one shift, so you must pick up a shipment from them
before 5:00 p.m. MRP calculations are not affected by supplier calendar hours, however.
Use the third screen, Non-Operating Days, to define exceptions to the normal
calendar: holidays or scheduled shutdowns.
Maintain supplier calendars for those suppliers from whom you pick up
shipments; otherwise suppliers calculate their own shipping schedules.

7. What is the difference between the WO module and Repetitive module?

Work order module

What is a work order?

A work order is a authorization to produce a specific qty of an item on a specific date. A
work order may represent a manufacturing production order, a repetitive schedule or
sequenced production line.
A work order life cycle consists of
1. Create a work order or approve MRP planned orders
2. Modify work order bill or routing
3. Release and print work order
4. Check for the work order components
5. Issue work order components and optionally record labor in shop floor control
6. Receive work order
7. Perform work order accounting close.
8. Delete/Archive obsolete work orders

Difference between Work order and repetitive

Work Order Repetitive
Plant Organisation Variable by Product Fixed by assembly line
Amount of WIP High Low
Time to manufacture High Low
Type of production Discrete Continuous

Work Order Type

Following are the type of work order
a. Standard
b. Rework
c. Final Assembly
d. Expense

Rework: These are used for repair, re-processing or completion of non-conforming

items. A rework order has the parent item as the only component and no routings. After
creating are work order u can modify its bill or routings by adding components
Final Assembly orders: These orders are used to manufacture the configured product
these are indicated by the Pur/Mfg code of the configured item. FAS orders are generated
when a sales order for a configured item is released to manufacturing using the sales
order release to work order 18.13.A FAS order uses a standard routing but its BOM
contains only item specified in the sales order configuration.
Expense Work Order: Expense work orders are used for non-inventory jobs. These
work orders have no Bill or routing. But one can attach these manually as needed.

8. Explain the Payment Cycle

For the inventory item that we buy for manufacturing the starting point for the payment
cycle is the purchase order. On receipts the receiving department issues a receiver to
confirm the item they have received. The supplier sends the invoice to confirm the
liability to pay for the items under the conditions specified on the purchase order. A
voucher is then created to confirm that the item that you have received are the items that
you originally ordered. The voucher references the purchase order and the invoice. The
system retrieves the receivers associated with the purchase order so that you can record
the invoice lines against them. If the invoiced items and the quantities match the receiver
the receiver is closed. If any variance is there then the system flags the warning. You can
record voucher as unconfirmed when the invoice come at that time you can confirm the
voucher.

Payment processing:
Vouchers are then selected for payments. Once the vouchers are selected the payments
are made by printing checks, recording manual checks etc. The payment register is
printed as the record of the payment made. After payment the supplier payment is
decreased but the payment is not immediately flagged as closed. Both the payment and
the original voucher remain in the system until the payment is cleared by the bank. If the
payment is not done for any reason the check is voided and then system automatically
Re-open the voucher for the payment.

Enter/Confirm Voucher

Select Automactic or
Manual Payment Record Manual checks

Print Payment
Selcetion register

Print Automatic
Check

Print Payment Register

Reconcile Checks Void Checks

Payment Selection Automatic 28.9.4

Payment Selection Manual 28.9.5
Payment Selection Register 28.9.6: List all the vouchers selected for the payment and
total payment for each supplier, currency and bank’s. Voucher remain selected until they
are paid
Payment Automatic Check 28.9.9 Generates the payment for both the printed checks and
the ETF
Payment Manual Check 28.9.10:
Check Void Maintenance 28.9.15 to redo the Payments which is incorrect
Check Cancellation Maintenance 28.9.13 is used to cancel the check it flag the check or
the draft as cancelled i.e. closed and creates the GL transaction crediting cash and
debiting payment in processing acct.

GL transaction:
All the transaction except the unconfirmed vouchers are created as the GL entries.

Confirmed voucher
Inventory/sub contract item DR PO reciepts
PO Price variance
Unreliased Exchange Loss
Sales Tax
CR Accounts Payable
Unreliased Exchange Loss

Memo(Non inventory) DR Purchases

Sales Tax
CR Accounts payable

Miscellaneous (Non-AP) DR Purchases

CR Accounts payable

Payments
DR Accounts payable
Realized Exchange Gain

CR Cash
Ap discount
Realized Exchange Gain

9. What are the different variances that may occur during the payments?
Following are the different variances that occur during the payments
Purchase Price Variance : It is the difference between the unit cost on the PO and the GL
cost in the item master excluding GL this level overhead.
((po unit cost – (GL unit costs – overhead)) * PO qty received.

AP Rate Variance: It is the difference between the unit cost on the purchase order and the
invoice.
(Invoice unit cost – PO unit cost) * PO qty received
AP Usage Variance : It is the difference between the Qty on the PO and qty on the
invoice which occur if u close a receiver with qty still open or with a invoice quantity
greater than the po receipt qty.
(Invoice Qty – PO receipt qty) * PO qty received.

10. What is a schedule order?

Supplier schedules give suppliers long-term visibility into your master production
schedule, used when you have frequent requirements for the same item. With this
visibility, suppliers can cover your current requests and prepare for upcoming
requirements.
A scheduled order is like a purchase order -- it communicates demand to a supplier and
receipts are processed against it -- but each line item has multiple due dates and order
quantities. Scheduled orders are entered manually; line item schedules can be generated
using information you enter here.
Once you enter a Purchase Order and Supplier, there are five screens (frames). The first
contains shipping and credit information, printing and transmitting information (i.e., EDI,
Fax) for the whole order; the next four contain line item information -- item-site, line
item details, schedule details, and optional comments.
When the schedule is generated, bucketing is done based on the Schedule Days, Schedule
Weeks, and Schedule Months fields. When different time periods are used, the values
may interact. Specific rules govern how these values are used:

o Weekly bucketing always begins on Monday. If daily and weekly bucketing have
been specified and the days do not end on Sunday, daily bucketing may extend beyond
the Schedule Days defined. For example, Schedule Days is set to 3. If this causes the
schedule days to end on Thursday of a week, the actual daily buckets on the schedule will
be six to allow the week to start on Monday.

o Monthly bucketing begins on the first Monday of the month. If weekly and monthly
bucketing have been specified and the schedule weeks do not end on the last Sunday of
the month, weekly bucketing may extend beyond the schedule weeks defined. For
example, Schedule Weeks is set to 2. If this causes the schedule weeks to end on the
next-to-last Sunday of the month, the actual weekly buckets on the schedule will be
three.

11. How can u ensure that the supplier is given a schedule on a particular day of the
week say only on Monday?
We can use the supplier calendar to make sure that for this particular supplier the
schedules are made on one specific day of the week.
Supplier Calendar Maintenance defines a supplier's standard work week and defines
exceptions to the normal calendar, such as scheduled shutdown periods.
Supplier calendars are used by Schedule Update from MRP to calculate shipment dates,
back-scheduling requirements if the initial due date is not a work day for the supplier.

12. Explain GTM why and where it can be used

13. What is MRP? What are the different types of MRP?
Material Requirements Planning (MRP) is the means for balancing supply and demand
for purchased and manufactured items in a time-phased manner. It uses the master
schedule and all other sources of demand and supply to calculate gross requirements and
projected on-hand inventory, schedule and plan orders, and produce action messages for
managing the materials plan.
It reviews all sources of demand -- forecasts, sales orders, inter site orders, component
requirements from manufacturing, production forecasts, and safety stock requirements --
and all sources of supply -- net table quantity on hand, purchase orders, inter site
requests, and manufacturing orders. (MRP does not recognize unconfirmed sales orders,
blanket purchase orders, non-net table inventory, and component requirements from
batch firm planned orders.)
The primary output of MRP is planned orders and action messages. These are generated
whenever MRP detects an imbalance of supply and demand. If supply exceeds demand,
MRP automatically reschedules or cancels planned orders and produces messages to "De-
expedite" or "Cancel" open replenishment orders. If demand exceeds supply MRP
reschedules or creates planned orders and produces messages to "Expedite" or "Create"
replenishment orders.
Following are three different types of MRP
1. Net Change Material Plan
2. Regenerative Material Plan
3. Selective Materials Plan

Net Change Materials Plan and Regenerate Materials Plan items based on low-level code,
generating requirements at the top level first, then down through the structure one level at
a time. In contrast, Selective Materials Plan plans only the items selected, passing down
gross requirements to the next unselected level, but not replanning orders.
Selective MRP runs as Net Change (mrp_req = Yes) or as Regenerative (mrp_req = No).
You can also select based on the Item Number, Buyer/Planner, Prod Line, Group, Item
Type, Supplier, and Pur/Mfg.

14. What is the primary input for MRP explain in details?

Following are the input for the MRP
1. Schedule order or POs.
2. Supplier Shares of Business
3. Item Site Planning Data
4. Forecast or FG Requirement

Schedule Order or POs.: The supplier schedule order should be created using the supplier
schedule order maintenance .This is the rate part of the PO.
Supplier Share of Business: This is to be defined before running the MRP.MPR takes this
input while allocating the planned orders to the supplier based on this.
Item Site Planning Data:

Master schedule
This flag is set to Yes for master scheduled items. These items may be planned separately
using Selective Materials Plan. This allows you to develop the master schedule for
independent demand items and then plan dependent demand items. The master schedule
reports and the Master Schedule Order Inquiry will display only items that are master
scheduled.
Planned Orders
Indicates whether Material Requirements Planning (MRP) should create planned orders
for this item. Planned orders are orders with a suggested order quantity and due date
calculated by MRP to meet planned future demand. The Plan Orders flag operates in
combination with the Order Policy. If Order Policy is [blank], MRP does not plan this
item, regardless of the Plan Orders flag. No requirements or action messages are
generated. If the Order Policy is not blank and the Plan Orders flag is set to Yes, then
MRP plans the item. Whenever a net requirement exists, MRP creates a planned order to
fill it. The quantity and due date of the order are determined by the order policy, lead
time, and order modifiers. If the Order Policy is not blank and the Plan Orders flag is set
to No, then MRP plans the item but does not create
 planned orders. Only action messages are created, suggesting what orders should be
placed. You enter these orders manually.

Order Policy
Order Policy determines the number of planned orders and their order quantity. Order
policies may be:
[POQ] Period Order Quantity: A planned order is created to cover the requirements for a
specified number of calendar days, as specified in Order Period.
[FOQ] Fixed Order Quantity: Planned orders are created with the order quantity
specified in the Order Qty field. If the value for Min Ord is greater than Order Qty,
planned orders are created with the order quantity specified in the Min Ord field instead.
Order Qty must be greater than zero (even if Min Ord is greater than zero) for creating
planned orders.
[LFL] Lot for Lot: A separate MRP planned order is created to satisfy each net
requirement. If there are many sources of demand, MRP creates many planned orders.
[OTO] One Time Only: A single order is created with an order quantity of one. This
would not be used for inventory items, but could be used to plan project activities and
milestone events that happen only once.
Any other non-blank value is processed as [LFL].

Order Qty
The normal order quantity for this item or base process. If this item has an Order Policy
of [FOQ], then all MRP planned orders are created with this order quantity.

Order Period
The number of calendar days to cover by one MRP planned order. This field operates
only if the Order Policy is set to [POQ], Period Order Quantity. Then, MRP looks ahead
this number of days when calculating net requirements. One planned order is created to
cover the requirement for this period.

Safety Stock
The quantity of this item to be maintained in inventory as protection against fluctuation
in demand and/or supply. MRP processing considers safety stock a requirement, and
schedules planned orders to cover this requirement. As soon as quantity on hand falls
below the safety stock quantity, MRP plans an order.

Safety Time
The number of working days early that MRP plans to receive orders for this item, as a
hedge against late deliveries. MRP schedules planned orders to be received this many
days early. First it calculates the actual need date, then subtracts the number of days
safety time.

Re-order point
The inventory level at which this item should be reordered. The Reorder Report lists the
inventory quantity on hand, and flags any items below their reorder point or safety stock
levels. You need to manually record an order for this item.
PUR/MFG
Purchase/manufacture code controls how the system explodes
forecasts, plans and creates orders, and calculates costs for
that item. Code options include the following.

[P] Purchased: The item is normally purchased. MRP uses the purchasing and
inspection lead time to calculate planned order release dates. MRP and cost calculations
don't explode purchased assemblies, even if a product structure exists. Any
routing/process operations are ignored. It is possible to manufacture an item designated
as purchased. The product structure and routing are accessed if a work order is created
for the item.
[D] DRP: The item is usually supplied internally from another site. DRP uses the source
network identified for the item to determine which supply site(s) to generate requirements
for. It uses the transport lead time and shipping schedules to calculate the date when this
order must be shipped from the other site. Any routing or BOM codes entered for a DRP
are for reference only. Cost calculations don't explode DRP items.

[M] Manufactured: The item is normally manufactured. MRP uses the manufacturing
lead time to calculate planned order release dates. It is possible to purchase a
manufactured item.

[R] Routable: A special type of manufactured item, made only when needed by an upper
level assembly. A work order for the routable item is created automatically when a work
order for the routable item's parent is released. The work order number is the same but
the lot ID is different, allowing the two orders to be tracked separately but the costs
accumulated.

[C] Configured: The item is configured to order. When a sales quote or order is entered,
the system prompts the operator to select from a list of configuration options. Valid
options are defined in Product Configuration Maintenance.

[F] Family: A special type of item used for planning. It is never actually made or
stocked. For multilevel master scheduling, family items are set up with a planning bill.
The Operations Plan module uses family items to group end items for family-level
planning. You can change a family item to a non-family item only if it isn't yet included
in a family hierarchy. You can always change a non-family item to a family item.
MFG/PRO populates both kinds of changes to all
item-site records for the item. However, once you include an item in operations
planning, you can no longer update its item-site Pur/Mfg code directly.
[L] Line manufactured: A special type of item manufactured repetitively on a single or
on multiple production lines. MRP planned orders for items flagged with this code can
be approved for production using Planned Repetitive Schedule Approval.

Manufacturing Lead Time

The normal or average number of working days it takes to manufacture this item,
including the time to process paperwork, issue components, inspect the finished product,
and receive it into stock.

Purchase Lead Time

The normal or average number of calendar days it takes to complete a purchasing cycle
for this item, from the date the need for a purchase is recognized to the date the item is
received. It does not include inspection time. For items with Pur/Mfg code = [P], MRP
uses the purchasing lead time along with any inspection lead time to determine the
suggested release date for planned orders. When a purchase requisition is entered
manually, these times are used to calculated the release date or due date.

Inspection Lead Time

The normal or average number of working days needed to inspect this item after it is
received.

Cum Lead Time

This field is calculated using the Cumulative Lead Time Roll-Up function. It is the
longest possible length of time it would take to have this item/product available if you
started today with no components in stock. The system looks at the manufacturing lead
time of this item and its subassemblies, and the purchasing lead time of the raw
materials to determine the critical path.

BOM/Formula
A code identifying the product structure, formula, and/or Co-Product/By-Product
structure normally used to manufacture this item. For Co-Products/By-Products, this is
the base process code. BOM code operates only for manufactured items. It accesses the
components to calculate product cost, and plan for material requirements.

Issue Policy
A code indicating whether this item should be issued on work order picklists.
Yes: this item is issued to work orders. Requirements print on the work order picklist
and the Work Order Component Issue (or Receipt-Backflush) function records the
number of items issued.

No: this item is not issued to work orders. Requirements print on a different section of
the work order picklist under the heading "Floor Stock". They are never issued to the
work order. These are expense or bulk issue items that may or may not be planned by
MRP. When a Work Order (or Cumulative
Order) is processed by the Accounting Close, the cost of any floor stock items is
debited to WIP and credited to the Floor Stock account specified on the order.

Phantom
The phantom flag indicates whether this item is normally stocked or simply put together
as part of a higher level assembly.
 Phantom = Yes identifies this item and its product structure as a phantom. These are
often used for transient assemblies or intermediate products--ones that are not (and often
cannot) be received into stock but instead go directly into the next higher assembly or
product.

Min order qty

The minimum quantity of this item to be ordered on a single order.

Max order qty

The max quantity of this item to be ordered on a single order.

Order Multiple
The multiple in which orders for this item are placed. Order multiple is used only when
Order Policy is [POQ] or [LFL].Then MRP uses it to determine the quantity of planned
orders. The net requirement is rounded up to a multiple of this number: if the order
multiple is 50 and the net requirement is 432, MRP creates a planned order for 450.

15. Can the status of the material be changed? What transaction will be created?
Yes, the status of the material can be changed by using the Item detail maintenance 3.1
A complete audit trail of all inventory transactions is maintained in transaction history
(tr_hist). These can be reviewed using Transactions Detail Inquiry. Each transaction is
identified by a transaction number and a transaction type. The two transaction types, ISS-
CHL and RCT-CHL, maintain records of the original attributes and the new attributes
respectively.

16. What are financial transactions passed when u do vouchering and payments?
GL transaction :
All the transaction except the unconfirmed vouchers are created as the GL entries.

Confirmed voucher
Inventory/sub contract item DR PO reciepts
PO Price variance
Unreliased Exchange Loss
Sales Tax
CR Accounts Payable
Unreliased Exchange Loss

Memo(Non inventory) DR Purchases

Sales Tax
CR Accounts payable

Miscellaneous (Non-AP) DR Purchases

CR Accounts payable
Payments
DR Accounts payable
Realized Exchange Gain

CR Cash
Ap discount
Realized Exchange Gain

17. What is the difference between transfer variance acct transfer clearing acct,
inter-company acct?
Transfer Variance Acct
This is the account which is normally used to track cost variances on inventory transfers
between two sites.
All inventory activity occurs at a primary site (entity) that is the site at which the order is
processed. However, it is possible to ship, receive, or issue the inventory from a different
site. This other site may have different costs. When this happens, a variance occurs since
the original site may have expected to pay more (or less) for the item. This variance is
posted to the Transfer Variance account. If the two sites are in different entities an Inter
company transaction may also be posted.
Transfer Clearing Acct
This is the account that is used to track transfers within a site (change of location or lot
reference) or between sites in the same entity. If this account is left blank (in inventory
control file), the product line "Purchases" account is used.
Inter Company Acct.
The general ledger account code tracking inter company transfers.
This is only used when processing information for more than one company (entity) in one
database. When a transaction is processed referencing more than one entity, the system
automatically creates the required inter company balancing entries.

For a purchase order that is entered at site 1000 (entity 1000) but the goods are received
at site 2000 (entity 2000), the normal general ledger entry created by the receipt is:
Debit Inventory (site 2000 entity 2000)
Credit PO Receipts (site 1000 entity 1000)

Although this entry balances, it does not balance within an individual entity. Instead, the
system creates two balancing entries:
Debit Inventory (site 2000 entity 2000)
Credit Inter Company (site 2000 entity 2000)
Debit Inter Company (site 1000 entity 1000)
Credit PO Receipts (site 1000 entity 1000)
18. What is CST-ADJ transaction?
When ever the cost of the item is changed the system passes a CST-ADJ for doing the
cost adjustments.
CST-ADJ transaction is passed when the cost of an item is changed and when a material
is transferred from one site to another site. It is also passed when doing the PO receipts if
u r using the average costing method.
ISS-UNP
o Debits the Cost of Production for the product line of the
item. You can change this.

o Credits the Inventory Acct defined in Inventory Account

Maintenance for the product line, site, and location.
RCT-UNP
o Debits the Inventory Acct defined in Inventory Account
Maintenance for the product line, site, and location.
o Credits the Purchases Acct for the product line of the
item. You can change this.
RCT-SOR.( Sales order Returns)
o Debits the Inventory Acct defined in Inventory Account
Maintenance for the product line, site, and location.
o Credits the General Ledger account code for sales
returns. Use the Cr Acct field to change this.

Receipt Backward Exploded

(Issues) \b Debits the Work in Process Acct for the
product line of the item. This may be changed. \b
Credits the Inventory Acct defined in Inventory Account
Maintenance for the product line, site, and location.

(Receipts) \b Debits the Inventory Acct defined in

Inventory Account Maintenance for the product line, site,
and location. \b Credits the Work in Process Acct for
the product line of the item. This may be changed.

(Variance) \b Debits the Work in Process Acct for the

product line of the item. \b Credits the Method Variance
Acct for the product line of the item.

RCT-PO (Po receipt OR PO Shipper Receipt)

Inventory Receipts

o Debits the Inventory Acct defined in Inventory Account

Maintenance for product line, site, and location.
 o Debits (or Credits) the PO Price Var Acct for the product
line.

o Credits the PO Receipts Acct for the product line of the

item.

o Credits the Overhead Appl Acct for the product line to

apply the fixed overhead portion of GL cost prior to
calculating variance.

ISS-WO(Issue work order)

Component Issue:

o Debits the Work in Process Acct from the work order.

o Credits the Inventory Acct defined in Inventory Account

Maintenance for the product line, issue site, and issue
location.

RCT-WO(Receipt Work order)

Inventory Receipts: (apply 'this level' overhead amount)

o Debits the Work in Process Acct from the work order.

o Credits the Overhead Appl Acct for the product line of

the item.

(receive the finished item)

o Debits the Inventory Acct defined in Inventory Account

Maintenance for the product line, receiving site, and
receiving location.

o Credits the Work in Process Acct from the work order.

Rejects:

o Debits the Scrap Acct defined in Inventory Account

Maintenance for the product line and receiving site.

o Credits the Work in Process Acct from the work order.

 When inventory transactions affect more than one site, the system automatically
generates the appropriate inter company balancing entries. When the two sites are in
different entities, it generates a balancing Debit/Credit to the Intercompany Account.
When the two sites are in the same entity, it generates a balancing Debit/Credit to the
Transfer Clearing Account. This is required to note differences in cost between the two
sites. Both of these accounts are defined in Inventory Control File.
If Post variances at SFC is set to No, labor and burden variances are calculated at Work
Order Receipt. Usage variances are calculated on earned hours -- the hours it should
have taken to complete the quantity reported complete. Rate variances are calculated as
the difference between the employee pay rate and the standard rate for the work center
where the labor was reported.

Labor Variances:

o Debits/Credits the Work in Process Acct from the work

order.

o Credits/Debits the Labor Usage Variance and the Labor

Rate Variance for the Department.

Burden Variances:

o Debits/Credits the Work in Process Acct from the work

order.

o Credits/Debits the Burden Usage Variance and the Burden

Rate Variance for the Department.

If you are using average costs for current costs or GL costs, then those costs are not
updated for co-products from a joint
work order set unless you close the work order set.

RCT-TR and ISS-TR

Transfer - Single Item generates two transactions: ISS-TR and RCT-TR.
o Debits the Inventory Acct defined in Inventory Account
Maintenance for the product line at the TO site and
location.

o Credits the Inventory Acct defined in Inventory Account

Maintenance for the product line at the FROM site and
location.

When inventory transactions affect more than one site, the system automatically
generates the appropriate inter-company balancing entries. When the two sites are in
different entities, it generates a balancing Debit/Credit to the Inter-company Account.
When the two sites are in the same entity, it generates a balancing Debit/Credit to the
Transfer Clearing Account. This is required to note differences in cost between the two
sites. Both of these accounts are defined in Inventory Control File.

The transaction type is TAG-CNT.

o Debits (Credits) the Inventory Acct defined in Inventory
Account Maintenance for the product line, site, and
location.

o Credits (Debits) the Inv Discrep Acct defined in

Inventory Account Maintenance for the product line, site,
and location.

Mfg/Pro Option - Material Transfer – Single Item ( 3.4.1)

Transaction type
ISS-TR - Issues to Transfer
Financial Impact
Dr. Transfer Clearance A/c
Cr. Inventory A/c
Transaction Type
RCT-TR - Receipts Transfer
Financial Impact
Dr. Inventory A/c
Cr. Transfer Clearance A/c
Transaction Type

ISS-DO - Issues against Distribution Order

Financial Impact
Dr. Inter Company A/c ( From Inventory control
File)
Cr. Inventory A/c

Transaction Type

CST-TR - Cost Transfer to other site

Financial Impact Dr. Transfer Variance A/c ( From Site

maintenance )
Cr. Inter Company A/c

19. What is the difference between the Balance Sheet and income statement?
Any company’s financial information is required to be complied in two statements which
are balance sheet and the income statement. The balance sheet provides summary of
company’s resources, liability and equity at any given point of time. The income
statements shows profit or loss for a given time period.

20. What is the transaction type and GL implications in the work order module?
There are three types of transaction that may occur during the WO cycles
ISS-WO, RCT-WO or RJCT-WO

ISS-WO Dr. WIP acct

Cr Inventory for RM/PM

RCT-WO Dr Inventory for FG

Cr WIP Acct

RJCT-WO Dr Scrap Acct

Cr WIP Acct

21. What is the difference between ILT and RLT?

ILT is used for the inter location transfer of material where as the RLT is used for the
Production of the FG.

22. What is meant by work order receipt back-flush?

In a work order cycle the components can be issued using the 16.10 work order
component issue or the work order receipt back-flush 16.12 functions. The work order
receipt back-flush combines the function if the work order component issue and work
order receipts.

23. What is meant by bulk tag create, tag void, check cancellation, check void?
In a physical inventory, bulk tags are extras--blanks used if you find other items or lose a
tag. The bulk tag are similar to the other tags except that the item information on the bulk
tag is blank
Before the count is complete the tag must be counted or voided. Using the tag void status
update the tags must be voided only the voided tags can be deleted from the system.
Check cancellation is the final step in the accounts payable it debits the cash and credit
the AP Acct.
Check void opens the voucher for re-processing if any error is occurred in doing the
payments

24. Explain GTM why and where it can be used?

GTM supports multinationals enterprises in calculating taxes in business transaction.
GTM can process the taxes between countries easily.
GTM supports large number of the tax rates and tax types each associated with the
number of customer’s suppliers and items and the amount subject to the tax.
GTM is widely used because it offers the following features in Mfg/Pro.
GTM also supports the following situation and conditions

Taxes based on geographical locations, effective date range, tax class, item usage or the
nature of the compay bussiness.
Tax exemptions
Taxation by line item or order total
Taxation based on the percentage of the item amount.
Trailer charges with multiple tax classes.
Luxury taxes for an item greater then a specified amt.
Clapped taxes that can not be exceeded a maximum amt.
Taxes that include other tax amt.
Purchases taxes recoverable against the taxes collected on sales
Ability to override the system calculated tax amount during the transaction entry.
Reverse calculation of the tax amount from the line items and the trailer charges that
already include tax
Taxes that your company absorbs rather than passes on to the customer
Remittance of the purchase taxes directly to the government than to the supplier
Exclusion of the credit term discount from tax amounts
Ability to generate the Ledger entry for purchase taxes for the receipt of goods or the
supplier invoice

25. What are the order modifiers in GTM?

Following are the order modifiers in GTM
a) Tax Zone: Tax zone identify the geographical regions subjected to same set of tax
types and levels of tax reporting. All customer supplier company address belong to a
tax zone. Tax zones are based on some herarcal structures i.e. higher level zone
before the lower level zone.
b) Tax type : These are defined as the various types of the taxes that are applicable. For
eg. LST,CST, EXCISE etc.
c) Tax Usage: It is defined as the code which is used to identify the group of customer
supplier or items subject ot a special taxasation on a specific transaction
d) Tax Environment: It is defined as the set of tax types that applies to a combination
of ship from and ship to tax zones and optionally a customer and supplier tax class.
e) Tax Base: Tax base Code that describes an amount subject to tax. A tax base
normally represents the portion of sales price that is taxable. When you assign a tax
base to a tax rate, any tax types assigned to the tax base become part of the taxable
base on transactions that use that tax rate.
 Tax base is required whenever the tax is based on percentage of the item amount. A
tax base is also required when the tax is based on the items amount plus the
previously calculated tax amount. This is known as tax-on tax
f) Tax Rate: Tax rate records specify how the system calculates and posts tax amounts
for each tax type, depending on the transaction tax environment.
During the tax calculation, the tax rate record specifies:
o The percentage used to calculate tax.
o Amount of the tax that is recoverable (if any).
o GL accounts for posting tax amounts.
o The program used to calculate tax amounts (tax method).
o Minimum/maximum line item/trailer charge amounts subject
to the tax.
o Whether tax is calculated by line or order total.
o Whether this tax can be included in the line price (on
tax-included items) or is always added separately to the
order.
o Whether you can manually override system-calculated tax
amounts on the transaction.

26. What are the various amounts involved in GTM or what is the GL implication
of the GTM?
GTM calculates the taxes for each tax rates. Depending upon the tax rates tax amounts
are listed in the table.

Sales Tax
A liability credited for sales tax payable. It is updated by invoice post (7.13.4) and AR
DR/CR memo maintenance (27.1)
Sales Tax Absorbed
A liability credited when the company absorbs tax instead of charging to the customer.
For e.g. your company gives item to a customer but u still pay tax on it even though the
sales price is zero. It is updated by invoice post (7.13.4) and AR DR/CR memo
maintenance (27.1)
Recoverable Tax
An asset debited for recoverable amount or liability when treated as contra account to
sale tax payable. It is updated by the purchase order receipt (5.13.1), PO shipper receipts
(5.13.20) and Confirmed AP voucher (28.1, 28.6, and 28.7)
Retained Tax
A liability credited when you with hold tax on purchase and remit it directly to
government instead of to the supplier. It is updated by the purchase order receipt (5.13.1),
PO shipper receipts (5.13.20) and Confirmed AP voucher (28.1, 28.6 and 28.7)

27. What is the difference between the tax on tax and tax in tax?
Tax base is required whenever the tax is based on percentage of the item amount. A tax
base is also required when the tax is based on the items amount plus the previously
calculated tax amount. This is known as tax-on tax.
Tax included Flag in tax rate maintenance identifies whether the tax-rate reverse
calculates the taxes from the line item and the trailer charge amounts for the supplier and
customer for whom the tax included flag is yes. GTM reverse calculate the tax based on
the tax rates percentage and tax method. For e.g. A line item of 100 rupees including the
tax is the amount for which amt + the tax = 100 RS. This is known as the Tax in Tax

28. What are the two types of the reverse Tax Calculations?
GTM supports two kind of reverse Tax Calculation i.e. Tax in Tax
1) For tax method 01
Tax Amount = Tax Rate * (item Price/1 + Tax Rate)
0.10 * (100.00/1.10)
0.10 * 90.90 = 9.09
Tax base = Item Price – Tax amount
100.00-9.09 = 90.91
2) For tax method 11
Tax Amount = item price * tax rate
= 100 * 0.10
Tax base = Item Price – Tax amount
100.00-10 = 90.00

29. What are the financial transaction passes when u do the sales order shipment
and invoice post?

Sales order Shipment Dr Cost of Goods

Cr Inventory

Invoice Post Dr. Accounts Receivable

Cr Sales
Taxes and other charges

30. How can u do the sales order return?

The sales order retune depends upon whether the sales order involved is open or closed ,
whether the line item involved in open or close. We can use the sale order shipment to
record the returns as follows
If the sales order and the line item both are open at the time of return then
a. Enter the line item for the item being returned
b. Enter the quantity returned as the negative amount
c. Enter the location where the item was restocked
If the sales order is open but the line item is closed then
a. Add a new line item as the returned material
b. Add the line item as the negative amount to the original open sales order. Mfg/Pro
Process the returns as the negative receipts
If the sales order is closed at the time of the return
a. Create a new sales order to receive the item
b. Enter the qty as the negative amount
c. Reference the original closed sales order in the comments area of the new sales order

The system creates credit invoices for the returns to stock. A credit invoice credits a
customers account for the amount of any returned material plus the applicable taxes.

31. What are the different transactions type’s codes in accounts receivables?
The different transaction codes in mfg/pro are
I (invoice)
M (Debit/Credit Memo)
F (Financial Charges)
D (Draft)
P ( Payments)
A (Applied/Unapplied Payments)

In type P there are subtype

Blank Payments applied to the customers receivables
U Payments un-applied such as pre payment for future invloces.
N Non AR payments such as tax refunds

32. What are the transaction types and there GL impact in accounts receivable?
Following are the various functions involved in the accounts receivable system

Shipping Dr. Cost of Goods

Cr Inventory
Invoicing Dr Accounts Receivable
Cr. Sales
Taxes and other charges

DR/CR Memo Dr Accounts Receivable

Cr. User Selected Accounts

Financial Charges Dr. Accounts Receivable

Cr. Sales Finance

Payments Applied Dr. Cash

Sales discount
Realized Exchange Loss
Cr. Accounts Receivable
Realized Exchange Gain
Payments Un-Applied Dr. Cash
Cr. AR Account from Customer Maintenance

Payments Non-AR Dr Cash

Cr. Sales Acct form System Account control File

Apply Un-Applied Dr. User selected Account

Payment
Sales discount
Realized Exchange Loss
Cr. AR account from invoice
Realized Exchange Gain

33. What is excise? What are the transactions related to excise?

Excise is the tax paid to Government for selling the FG. Whenever we receive RM from
the suppliers, we get credit for the excise amount. This amount is usually included in
supplier’s bill. While dispatching FG we can adjust the excise amount against the credit
we have already taken.
There r few types of registers maintained in excise module. Although these are
not compulsory now a days. Part I A register, for RM and PM quantity. Part II A
register is for RM/PM values. Part I C register for capital goods (such as machinery
etc), and Part II C register for capital good value. RG register is for FG quantity. PLA
register for hard cash account.
Now, when any RM/PM/Capital good is received into system, the Part I A gets
added up with the quantity. Part II A gets the credit of modvat (excise). Similarly
cpaital goods entries are passed in Part I C and Part II C register. While dispatching
the FG, the excise amount to be paid is first check from Part II C register, if it is
available then the same is paid from this register. Then Part II A register is checked
for the excise amount. Incase this amount is not present in both these registers, then
the same is paid through PLA(Personal ledger a/c). The PLA has the amount which
we need to pay to Government. Earlier the excise was paid on each and every
dispatches made. Currently the rule has been modified to pay the amount for a period.
The document (RT12) is needed to be submit for the period where it should show all
the receipts made in this period and all the dispatches made in the period. Thus the
modvat entries passed into system and the debits passed into the registers.
1. PO receipts: (For RM/PM) Part I A Part II A
(For Capital goods) Part I C Part II C

2. FG Production: RG

3. FG dispatch: RG Either Part II A or Part II C or PLA amount

4. RM Dispatch: Part I A Either Part II A or Part II C or PLA amount

34. What is the time fence in planning masters?
The number of calendar days inside of which MRP should not automatically make
changes to the plan.When the Plan Orders flag is Yes, MRP calculates net requirements
and automatically creates or adjusts planned orders to satisfy these requirements.
However, sometimes you want to stop MRP from doing this for the near term. If you
want to manually control the schedule for a period of time, perhaps the next two weeks,
set the time fence to 14 days. MRP adds the number of days time fence to the system
date, and does not create any planned orders within this time period. However, MRP will
delete any planned order (either within or without the time fence) if there is no demand
generated for the item. On firm orders, if change is needed, MRP creates an action
message alerting you to what must be done. The message "Time Fence Conflict" is also
created, reminding you why MRP didn't make the change for you.
The value entered in Item Master Maintenance is used as the default for all sites. It may
be changed manually for any site as needed.Time fence is most often used with master
scheduled items.The recommended approach to master scheduling is "computer
assisted". The master schedule is manually maintained within the cumulative lead time
and MRP maintains the plan beyond this cumulative lead time. To use this method, set up
your master scheduled items with Master Schedule = Yes, Plan Orders = Yes, Order
Policy = any option but blank, and Time Fence = cumulative lead time.

35. What is the difference between advance repetitive and repetitive production?
Similarly what’s the diff between repetitive and work orders?
Following are the differences between Advance Repetitive and repetitive
Repetative Advance Repetative
Manufacturing Lead Time are small Manufacturing Lead time are long
Batches do not overlap Batches my overlap
All work in process is complete by the end Continuous processing is in use the lines
of each day are dedicated to one item for days ,weeks
or months
WIP cost are insignificant or constant WIP cost are variable or high
The routing does not include sub-contract Sub-contract operationsa are managed in a
operations release time management

36. What is the difference between cycle count and physical inventory count?
In physical inventory you have to freeze the inventory and do the count whereas in case
of cycle count u can pass the tag count entry with out freezing the inventory.
37. Explain the sales order cycle?
The following figure shows the basic life cycle of the sale order.
Following are the steps needed for the sale order.
1. Create a sales order
2. Confirm the order
4. Allocate the needed inventory
5. Ship the inventory
6. Invoice
7. Post the invoice

Create a Sales Order Process Shipment

Report and modify the

Verify Credits pending invoices

Confirm Sales Order Print Invoices

Allocate inventory
manually / automatically Post Invoices

Print Sales Order and Pick

list

Option
l

38. What are firm days, plan days in schedule orders? If the firm days is 3, plan
days is 4 then what is the output if the MRP is run as of 15th july 2003 and there
are some orders due till 22nd july 2003?

39. What are the price list tables how do u use it.
Use Price List Maintenance to set up the price lists the system uses to determine best
pricing.
In determining best pricing, the system looks for links between customer and item codes.
If no links are found, it uses the default price from the Item Master. Thus, using price lists
allows for multiple discount or promotional pricing schemes.
· Discounts and list prices must be in the same currency as the order currency.
· Quantity breaks associated with price lists are in the price list unit of measure, not the
stocking unit of measure.
· You must specify which customer -- sold-to, bill-to, or ship-to -- is the pricing
customer. By default, if there's an existing customer master record, the ship-to customer
becomes the pricing customer. Otherwise, the sold-to customer is the pricing customer.

Total GL Cost is used to set the minimum selling price, calculated as the sum of GL cost
data elements for the item's default site for this level and lower levels. All elements from
all categories are included. Both purchase and selling prices are for one unit of the item
(using the item unit of measure).

Each item has a base price expressed in base currency. Price lists are used to store other
pricing structures--prices in other currencies, prices or discounts for a certain unit of
measure (a case or full truckload), discounts at different quantity levels, or prices
calculated as a percentage markup over GL cost.
Price lists created in Price List Maintenance are used for purchase orders, return to
supplier (RTS) orders, and RMA receipt line credits. Price lists can also be created in
Price List Maintenance for use by the Forecast Simulation Module in the Detail Forecast
Report.

When entering an order item, the system looks for a matching price list in the following
order:

1. Currency, price list, item number, unit of measure

2. Currency, price list, item number
3. Currency, price list, product line (item number <blank>)
4. Currency, price list (product line and item number <blank>)

If no match is found, the item base price displays (converted to the currency of the order).

Purchase Orders: Price lists are associated with suppliers in Supplier Maintenance and
provide defaults when purchase orders are created.

Return to Supplier (RTS): These service orders follow the same processing as purchase
orders.

Return Material Authorizations: A credit price list is associated with warranty and
contract types. This price list provides the default in RMA Maintenance and is used for
RMA receipt line credits. (Note that RMA issues are priced using lists set up in the Sales
Order Pricing Menu.)
Only one price structure can be applied to each order--you cannot set up a price list with
base prices in a foreign currency and then access another price list to apply quantity
discounts to those foreign currency prices.

Use price lists to set up fixed prices in other than the base currency. You may want to
enter one set of prices and then use Price List Copy to generate the others.

When creating minimum and/or maximum price ranges for items that also appear on a
discount table having the same name as the price table, you must ensure that the price
range established will encompass the boundaries on the associated discount table, since
the minimum and maximum prices on price tables take precedence over discount table
prices.

Different price structures can be entered for specific units of measure--if you buy a case
(CS) you get a better price than if you buy only one unit (EA).

Total This Level GL Cost and Total GL Cost are display-only fields. Total GL Cost is
used to set the purchase price list, calculated as the sum of GL cost data elements for the
item's default site for this level -- less those elements in the overhead category. The
categories whose elements are included are: material, labor, burden, and subcontract.
Total This Level GL Cost is used to set the minimum selling price, calculated as the sum
of GL cost data elements for the item's default site for this level and lower levels. All
elements from all categories are included. Both purchase and selling prices are for one
unit of the item (using the item unit of measure).

For a detailed description of each of the data fields and their use, see the on-line field
help. For a list of which programs use this data, use the System Cross-Reference
functions.

40. Can we split a work order ? If yes how ? what will happen to its number ?
Splits an existing work order into two, allowing each to be tracked through
manufacturing. You can not split a work order for a joint work order set.
Specify the work order number and ID, the quantity split, and the operation at which the
split took place.
Typically Work Order Split is used after work order release in response to a materials or
capacity shortage. Prior to order release, use Work Order Component Check to check for
shortages, but quality problems or inaccurate inventory balances may still result in a
shortage. Splitting a work order allows part of it to move on.

For joint work order sets, you can rescale the work order quantities for the original joint
work order set and enter a second joint work order set to manage the remaining quantities
using Master Schedule Order Maint.
The result of Work Order Component Check is two work orders with the same work
order number but different IDs. Each ID may have its own bill and routing. A picklist and
route sheet can be printed.
A work order bill is created for the split only if no components had been issued to the
original order. After issue, all components remain attached to the original ID.

A work order routing for the new ID starts from the operation where the split took place.
Completed operations and reported costs remain with the original ID.
Because the split orders have the same number, you can review the Work Order Status
Report and Work Order Cost Report for the whole work order.
This function should be password controlled.

41. What is product structure cost roll up ?

Each manufactured item has a standard product structure, formula, and/or Co-
Product/By-Product structure associated with it (BOM/Formula in Item-Site Planning
Maintenance) that describes the components or base process required to make the item.
For the components there is information for the quantity required, expected scrap
percentage, and the operation where they are required. Purchased components have
material and overhead costs; manufactured components also have labor, burden, and
subcontract costs. Product Structure Cost Roll-Up uses these costs to calculate total cost
by item, and lower level run and setup times.

The system performs the roll-up for items with costs in the specified cost set. Also, the
components of such items will be included, whether or not they have costs in the cost set.
You must specify both a Site and Cost Set. Be aware that this may take some time to
process. You may wish to submit it in batch.
Costs are normally developed for new items as follows:

1. Enter/verify purchased material costs.

2. Enter/verify work center labor and burden rates.
3. Enter routings/processes.
4. Roll up routing costs (current Cost Set).
5. Adjust item burden costs (current Cost Set).
6. Adjust item overhead costs (current Cost Set).
7. Enter product structures/formulas.
8. Roll up product structure costs (current Cost Set).
9. Verify and adjust costs.
10. Copy current costs to GL Cost Set.
11. Revalue WIP and open sales orders.

In MFG/PRO, any item is available at any site. This means that a routing or product
structure roll-up includes every item in the item range you define regardless of which site
you roll-up. In other words, the roll-up may create item costs for items you did not
explicitly define at the site you roll up. These costs, furthermore, may be incomplete
since the item range entered may not include the entire structure at another site. However,
the costs for items not used at a site are not used for any cost transactions, so there is no
business impact. If you want to avoid these cost records altogether, you can maintain item
numbering schemes that isolate specific item ranges to specific sites.
The advantage of having every item available in every site in MFG/PRO is that most
items that share an item number will be identical in any site where they occur. This
assumption significantly reduces data-entry for most multi-site manufacturers. It also
eliminates parallel maintenance of the same item at different sites: changes entered for
the item in the item master record automatically impact all sites. And if an item is
different at one site, you can enter an item-site record or a site-specific routing for that
item at the site where the difference occurs.

Lower level material cost is calculated as the total material cost for each component
multiplied by the quantity per, then multiplied by 1 plus the scrap percentage -- $1 per
unit * 10 qty per *, given 5% scrap. Each lower level cost is calculated this way.

Expected yield losses can be factored into cost calculations using the quantity per
multiplied by the Input Quantity at that operation -- the number of units that must be
started at this operation to yield 1 unit from the last operation. This input quantity is
calculated as 1 divided by the Cumulative Yield %. (Cumulative Yield % is the yield
percentage for that operation multiplied by all subsequent operation yields.)

If operation yield is 90%, 1.11 units are required at an operation to get 1 unit out, and
enough components issued at the operation to make 1.11 units. Yield percentage may be
different at each operation, so be careful what you put in the Op field in Product Structure
Maintenance or Formula Maintenance.

Roll-up calculations only consider operations effective on the specified date.

Co-product Costs: The same co-product may result from more than one base process, but
only the base process specified in the BOM/Formula code of the co-product's item record
determines the co-product's cost at a particular site. Costs for a co-product are calculated
from base process costs, using the cost allocation percentage assigned to the co-product.
Allocation percentages for co-products of the same base process should add up to 100
percent. Each cost element of a co-product is updated with the allocation of its base
process cost element at this level and at lower level. The cost roll-up assumes that by-
product costs are fixed. By-product costs are subtracted from corresponding base process
cost elements (the base process cost isn't actually updated), then this adjusted base
process cost is allocated entirely to co-products. Since costs never go negative, a base
process element cost must be greater than or equal to the corresponding element cost for
a by-product.

Recalculate costs whenever purchase or manufacturing costs, or structures or routings

change. Only roll up a Current Cost Set (or some other non-GL Cost Set). If the changes
are correct, copy these costs to the GL Cost Set.

42. What is backward/Forward scheduling ?

43. What is just in Time
44. Difference between accounting close and work order accounting close.
45. What is the difference between routing and Bom code
46. What is cummilative work order
47.