| # To determine the stock to be issued To determine from which stock the items listed on an outbound order must be issued, ERP LN checks the following fields: Ownership fields The settings of the ownership fields in the Outbound Order Lines (whinh2120m000) session and the Issue Priority field in the Warehouse - Item (whwmd2110s000) session determine whether company owned, consigned, or customer owned inventory must be picked for an outbound order line. For consigned and customer owned inventory, these fields also determine from which business partner's inventory the goods are picked. For more information, refer to Finding available stock for ownership. Usage at Warehouse Transfer The value of the Usage at Warehouse Transfer field determines whether the item issues are consumptions, in which case the ownership of the issued items changes from the supplier to the customer. For more information, refer to Consumption-based ownership change. Sourcing fields If an item is supplied by more than one supplier, the values of the sourcing fields determine from which business partner's inventory an issue for a consumption is to take place. For more information, refer to Sourcing rules for consumptions. Outbound Method The outbound method determines which inventory must be issued based on the inventory date or the outbound priority defined for the locations of a warehouse, while taking the values of the ownership fields (see first item of this list) into account. Note Committed or allocated stock is exclusively reserved for the orders or business partners relevant to the inventory commitments or allocations concerned. For further information, see Inventory commitment and To specify the minimum and maximum inventory. Inventory from various owners on outbound order line An outbound order line can contain items from various owners. For example, if the issue strategy value is Preferred and the available inventory of the preferred owner is insufficient for a particular outbound order line, inventory from other owners or the own company is issued. Ownership of items listed on outbound order lines is maintained in the Outbound Advice Ownership (whinh4128m000) session. In this session, and in the Shipment Line Ownership (whinh4138m000) session, you can manually adjust the outbound order line or shipment line ownership determined by the field settings mentioned above. Sourcing rules for consumptions Sometimes, various suppliers supply the same item, and the inventory owned by these business partners is stored in the warehouse. To determine from which supplier a consumption is to take place, ERP LN checks the priority, the sourcing percentages, and the cumulative consumption percentages of the business partners supplying the item. In addition, ERP LN checks the issue strategy. Issue strategy determines the use of sourcing percentages If several business partners supply the same item, and the value of the Issue Strategy field on the outbound order line is: Free, the sourcing percentage and the cumulative consumption percentage of the buy-from business partners determine the next business partner from whose inventory items for consumption are issued. Preferred and no inventory owned by the preferred business partner is available, the sourcing and consumption percentages determine the business partner from whose inventory the issue for consumption will take place. Restricted, the sourcing and consumption percentages are not used to determine the business partner. Sourcing and consumption percentages Sourcing priorities and sourcing percentages are based on agreements between the business partners. You can maintain sourcing percentages and sourcing priorities in the Items - Purchase Business Partner (tdipu0110m000) session. For further information, see Sourcing and Using sourcing percentages. In the Consumption Percentages by Business Partner (whinr1135m000) session, you can view actual business partner consumption percentages. As a rule, consumptions are issued from business partners with priority 1 according to the business partners' sourcing percentages in relation with their cumulative consumption percentages. Each issue involves the inventory of only one business partner. When a consumption is due, ERP LN selects the business partner whose sourcing percentage exceeds the actual cumulative consumption percentage the most. This means that their actual consumption is the farthest below the agreed consumption percentage of the business partners involved. Therefore, to increase the actual consumption percentage to meet, or at least approach, the agreed sourcing percentage, this business partner must supply the next consumption. This is described in Select business partner for consumption issue. No stock or insufficient stock owned by selected business partner available If no stock owned by the selected priority 1 business partner is available, ERP LN selects a business partner without applying the sourcing rules. If insufficient stock owned by the selected priority 1 business partner is available, the available stock is issued, and for the remainder, ERP LN allocates inventory owned by other business partners without applying the sourcing rules. Issue by other than priority 1 business partner If none of the priority 1 business partners have sufficient stock for some reason, the customer must be supplied by another, non-priority 1 business partner. This stock must be used up before the regular issues from the priority 1 business partners can resume. Example Because company A's regular priority 1 suppliers are out of stock, company A buys from supplier X. If the regular supplies from the priority 1 business partners are resumed according to the sourcing rules before all of supplier X's stock is consumed, supplier X's stock would never be used up. Related topics Select business partner for consumption issue Consumption-based ownership change Inventory ownership in Warehouse Management |