1. HTW Berlin FB3, International Business, 4. Semester Seminar Teaching SoSe 2010 Information Management II Warehouse Management and Inventory Dr. Irina Stobbe – STeam Science Software Sustainability

2. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 2 Outline  Warehouse structure  Aspects of handling with inventory  Physical inventory and adjustments  Transferring items from w. to w.  Inventory reporting

3. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 3 General Warehouse Processes Purchase- Order Selling Order Put- away Receipt PickShipment Main processes Production- Order Put- away Receive items Pick components ….. TransferAdjustment Supporting processes,

4. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 4 Main Warehouse Management Tasks  Setting up and manage warehouse related master data  Control and adjust inventory  Configure and execute the receipt process  Configure and execute intern warehouse processes  Configure and execute shipment process  Setting up item tracking

5. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 5 Possible functional design of a Warehouse Picking bin Receipt Shipment Production bin Cross-dock bin Put-away bin Wrapping Storage (midterm) Preparation Backfilling bin See Luscszak/Singer Dynamics NAV 2009, MSPress 2009

6. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 6 Setting up Warehouse  Define location code for each warehouse  Define bins in your warehouse to specify the location of individual items precisely.  Add the fields for location management to the item and transfer forms (Show column)  Mandatory Location Codes: If place a check mark in Location Mandatory field on the General tab in the Inventory Setup window,  never leave the Location Code field empty when posting item journal or sales/purchase lines

7. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 7 Extended text for an item Extended Texts in Item Cards:  Texts describe the item on a sales or purchase document.  Item Card  Item  Extended Texts  More than one line is possible, and in different languages  See preview of purchase order (  function  insert extended texts)

8. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 8 Setting up item tracking: Serial /Lot Numbers  Regards to TRACEBILITY: Definition:  Traceability is the ability to chronologically interrelate uniquely identifiable entities in a way that is verifiable.  Traceability is the ability to verify the history, location, or application of an item by means of documented recorded identification. (ASME)  Set flags for tracing each item per SN or Lot-Number  all Numbers will be included in postings for shipping and receiving

9. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 9 Item Availability  Checking the availability by periods and/or locations and variants  Shows the quantity of the item that is inbound, outbound or in inventory on a specific day or period  Shows the kind of process where the item is involved: Gross Requirements, Scheduled Receipt, Planned Order Receipt, Projected Availability Balance, Planned Order Released

10. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 10 Item Availability  Checking the availability by periods and/or locations and variants  Shows the quantity of the item that is inbound, outbound or in inventory on a specific day or period  Shows the kind of process where the item is involved: Gross Requirements, Scheduled Receipt, Planned Order Receipt, Projected Availability Balance, Planned Order Released Gross Requirement This is sum of the total demand for the item. The total demand consists of independent demand (from sales orders, service orders and transfer orders) and dependent demand (production order components from planned, firm planned and released production orders, and requisition and planning worksheets). Scheduled Receipt This is the sum of items from replenishment orders. This includes firm planned and released production orders, purchase orders and transfer orders. Planned Order Receipt This is the sum of items from replenishment order proposals. This includes planned production orders, planning worksheets and requisition worksheets. Projected Available Balance This is the calculated available inventory. Planned Order Releases This is the sum of items from replenishment order proposals (planned production orders, planning worksheets and requisition worksheets) calculated according to the starting date (in the planning worksheet and production order) or the order date (in the requisition worksheet).This sum is not included in the projected available inventory. However, it indicates which quantities should be converted from planned to scheduled receipts.

11. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 11 Physical Inventory  Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business.  The ERP system NAV contains tables for supporting the counting of physical items on each location bin and for adjusting the counted items with the calculated ones.

12. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 12 Adjustment of Items in a Warehouse  adjust inventory in connection with purchases, sales, and positive and negative adjustments.  Posting updates only the inventory accounts (financial accounts will be changed in additional posting if it is requested)  Item Journal: Batch job template to prepare the posting  Purchase  value on unit price  Sale  value on unit cost  Pos. Adjustment  value on unit cost  Neg. Adjustment  value on unit cost

13. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 13 Inventory in Transfers  Where to find an item that is not in bins but in transfers?  create In-Transit Locations – so much as it is useful  Create Transfer Routes - from x to y by Shipping Agents Code (DHL, FEDEX, UPS, OwnExp…) Shipping Agent Service Code (STD, NEXT DAY) Location List (Code) Create In-Transit Locations Create Transfer Routes Transfer Routes Matrix

14. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 14 Transfers  Transfers between two locations  Create the Transfer Order from the transfer-from or the transfer-to location  Shipping: Post the Transfer Order with „Ship“  Receiving: Change Status to Released  Post the Transfer Order with „Receive“ Location and In- Transit List (Code) Create Transfer Order transfer-from location Item Card: Location Code BLUE Item Card: Location Code RED Shipping Item Item Card: Location Code OWN LOG. Receiving Item Item in Transit Item in Loc. RED Item in Loc. BLUE transfer-to location

15. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 15 Unit Prices and Discounts  Last direct cost: Price, used in the last time (in LCY)  Line Discounts: If you buy more than a minimum units, so there are discounts possible: each rule = one line  Invoice discounts are only per vendor.  If only a small number of items  service charge.

16. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 16 Bills-of-Material (BoMs)  Sales BoM describes a list of materials to be sold together  Sales BoM differs from production BoM

17. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 17 Reports (1)  Item Statistics window  Item  Statistics  Select different filters  Time filter: Periods  Type Filter: Net Change, Balance at Date  Lines: Profit or Cost Calculation, Item Charge Specification  Columns: Location or Periods  Date Period calculated  Item(s)  Locations  Variants  Calculate per unit or Sum  Export to Word or Excel Select reports Print or export reports Report required Reports finished

18. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 18 Reports (2)  Item Entry Statistics Window  Item  Statistics  Entry Statistics  Recently posted receipts, sales, purchases, positive and negative adjustments, shipments  To be posted: last and next purchase receipts and sales shipments  Item Turnover Window  Item  Statistics  Turnover  Sales and purchases if the item by value and quantity for the period indicated to the left  Net Change or Balance at Date

19. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 19 Reports (3)  Item Ledger Entries Window  Item  Entries  Ledger Entries  All of the item‘s movement in and out of inventory due to purchases, sales, production, inventory adjustments, transfers and more

20. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 20 Inventory Reports (4)  Inventory Picking List  List of items, that needs to be picked (for shipment)  Inventory Put-away List  List of items that need to be removed from a certain location or transported to a storage area  Inventory Cost and Price List  Direct unit cost, last direct cost, unit price, profit percentage, and profit  Inventory – Availability  Inventory – Customer Sales  Inventory Order Details  Inventory – Sales Statistics –All reports can be exported to Excel or Word directly (XML) Select reports Print or export reports Report required Reports finished

21. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 21 Student‘s presentation / Labs  Items in a Warehouse  Step 1: Creating an item  Step 2: Purchasing an item  Step 2a: Putting away in to a warehouse  Step 3: Producing an item  Step 4: Transferring items from w. to w.  Step 5: Selling an item  Step 5a: Picking an order  Step 6. Archiving an item entry P W W S&M W FM S, P, W M S&M Sales & Marketing, P Purchase, M Manufacturing, W Warehousing, FM Financial Management

22. International Business, Information Management 2 ©Dr. Irina Stobbe, HTW Berlin, SS 2010 22 Test your knowledge  Which processes contribute to the turnover of the enterprise (select all that apply)  Sales  Purchase  Adjustment  Transfer  Which process steps in a sales process are related to the warehouse management? (Select all that supply)  Receipt of item  Shipping of item  Pick the items  Put-away the item  Payment of invoice