Enter Distribution Data

Explanation

This activity is used to define general distribution, inventory, purchasing and order data that will be used in the distribution flows, common to all sites belonging to the same company.  

Prerequisites

A company must have been created with the Create Company Assistant.

System Effects

• As a result of this activity, general distribution, inventory, purchasing and order data will be defined for the company.
• The value of the Tax Code field defined in the Company/Distribution/General tab will be defaulted to the taxable sales part by default. If IFS/Invoice has not been installed the value will also be defaulted to a no part.
• The tax code specified in the Tax Free Code field in the Company/Distribution/General tab will be defaulted to the taxable charge lines of the purchase order in the event of the supplier tax liability being exempt. The value will also be defaulted to a non taxable sales part.
• If the value Receipt into Arrival is selected in the Ownership Transfer Point list in the Company/Distribution/Inventory tab, all inventory parts received into an arrival or quality assurance location will be considered company-owned and inventory postings will be created. If the value Receipt into Inventory is selected in the Ownership Transfer Point list, all inventory parts received into an arrival or quality assurance location will be considered supplier-owned and inventory postings will not be created until the parts are received into stock, e.g., picking, floor stock, shipment, pallet.
• The values you enter in the Introduction Duration Days, Decline Inactivity Days and Expired Inactivity Days fields in the Company/Distribution/Inventory tab are used to classify the parts into different lifecycle stages.
• If the Post Price Differences at Arrival check box in the Company/Distribution/Inventory tab is selected, price differences will be booked both at purchase order arrival, against the purchase price and then later at invoice-matching against the invoiced price. If the Post Price Differences at Arrival check box is cleared, price differences will be calculated at invoice matching.
• If the Check Postings for Receipt of Non-Inventory Purchase Order Lines check box in the Company/Distribution/Purchasing tab is selected, postings will be created upon receipt of non-inventory purchase parts or no parts in the purchasing flow. When matching a supplier invoice, the system will check if postings were created upon receipt and if not, only the M93 postings will be created (i.e. M91 and M92 postings will not be created). This will result in no cost being booked for non-inventory or no parts until the invoice is received and matched.
• If the Notify Supplier of Consignment Consumption check box in the Company/Distribution/Purchasing tab is selected, it indicates that the supplier notification is a mandatory step. That is, when a consignment stock is being consumed, the consumed stock will not appear for invoice matching until a notification to the supplier has been sent.
• The value you select in the Method for Invoicing Prepayment field in the Company/Distribution/Order tab will decide how the invoicing of prepayments will be handled. If Advance Invoice is selected, advance invoices will be created for requiring prepayments, i.e. before receiving the prepayment. If Prepayment Based Invoice is selected (typically used in Poland), invoices will be created after the prepayment has arrived. Note that Prepayment Based Invoice can only be selected for a company whose tax regime is VAT.
• The base value retrieved on the advance invoice will depend on the value selected in the Base For Advance Invoice list in the Company/Distribution/Order tab.
• The value of the Taxable in Customer Order check box in the Company/Distribution/Order tab will be defaulted to a sales part by default.
• The value of the Taxable in Customer Order check box in the Company/Distribution/Order tab will be defaulted to a purchase part by default.
• If the Delay Cost of Sold Goods to Delivery Confirmation check box in the Company/Distribution/Order tab is selected, the cost of goods sold will be posted at delivery confirmation. It must be noted that posting of the cost of goods sold at delivery confirmation will be performed only if the customer order is set to confirm deliveries. If the customer order is not set to perform confirm deliveries,  the cost of goods sold will be posted when goods are shipped. The value of this check box is defaulted to the customer order.
• If the Inter-site Profitability check box in the Company/Distribution/Order tab is selected, inter-site profitability transactions will be created when internal customer orders are delivered to other sites within the same company. 

Window

Company

Related Window Descriptions

Company
Company/Distribution
Company/Distribution/General
Company/Distribution/Inventory
Company/Distribution/Purchasing
Company/Distribution/Order

Procedure

1. In the Company window, query for the relevant company.
2. Select the Distribution tab and then the General tab.
3. If you wish to use a default tax code for a sales part, select an appropriate tax code in the Tax Code field.
4. Enter GS1 basic data if you are using GTIN numbers.
5. On the Inventory tab, if you wish to change intervals for lifecycle stages you can enter new values in the Introduction Duration Days, Decline Inactivity Days and Expired Inactivity Days fields.
6. Optionally, if you wish to book price differences both at purchase order arrival and later at invoice-matching, select the Post Price Differences at Arrival check box.
7. The default value in the Ownership Transfer Point list is set by the company template. You can either use this value or select the relevant value as appropriate.
8. The default values for Units of Measure are set by the company template. You can either use these values or select relevant values as appropriate from the List of Values.
9. On the Purchasing tab, select the Taxable check box if you wish to define a sales part as taxable by default.
10. Optionally, if you wish to create postings for receipts o non-inventory purchase parts or no parts select the Check Postings for Receipt of Non-Inventory Purchase Order Lines check box.
11. Select the Include Charges in Purchase Order Authorization check box if you want the charge amounts to be added to the amount that should be authorized for a purchase order.
12. Select the Use Gross Amount check box if the amount including tax that should be validated.
13. Do not select the Include All Steps in Authorization check box if you want the system to only generate authorization steps until a step with enough authorization limits to authorize the purchase order or requisition line has been reached.
14. Select the Allow Changes to Requisitions check box if changes are allowed to the authorization limit of the applied authorization rule or the used authorization step in the applied authorization routing.
15. Select a value in the Allow Changes to Orders list if changes are allowed to the authorization limit of the applied authorization rule or the used authorization step in the applied authorization routing.
16. Select the Enforce Purchase Order Authorization check box if you require that all purchase orders should be authorized.
17. Select the Allow Manual Update of Authorization Routing check box if you want to allow an authorization routing to be used in a purchase order or a purchase order change order. For example, once the authorization rule is retrieved, it can be manually replaced by a selected authorization routing template.
18. Select the Use Delta Amount for Purchase Order Authorization check box if it should be the difference in amount between two purchase order change orders that should be authorized.
19. Select the Consider PO Max Amount in Change Order Authorization check box if you want the system to do a check against maximum authorized amount on the purchase order when purchase authorization rules are retrieved to a purchase order change order. This check is only performed if the Use Delta Amount for Change Orders check box is selected.
20. On the Order tab, depending on the company template used, the default value will be selected in the Method for Invoicing Prepayment field. You can either use this value or select another from the list.
21. The value Net Amount will be selected by default in the Base For Advance Invoice list. You can either use this value or select another value from the list.
22. Optionally, if you wish to post the cost of goods sold at delivery confirmation select the Delay Cost of Sold Goods to Delivery Confirmation check box.
23. Optionally, if you wish create inter-site profitability transactions select the Inter-site Profitability check box.