Consuming goods from a Customer Buffer Stock (CBS) inventory contract

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With this type of inventory contract the goods are owned by you and located at your warehouse site. The purpose of a CBS inventory contract is to promise a specific customer that you will reserve a certain buffer for a specific item.

If a Customer Buffer Stock (CBS) inventory contract has been set up and initialized in your system you can sell the goods from this buffer stock. There are no designated CMI processes for this type of inventory contract. You must use the Sales order entry routine to sell the goods. As soon as a sales order line is created for this customer with an item that is defined on an inventory contract, the sales order line will automatically be linked to the inventory contract line. Then the inventory contract line will be updated together with the corresponding temporary reservation (i.e. the Reservations quantity on the inventory contract line will be updated with the corresponding quantity on the sales order line).

You can choose from the following to link the sales order line to the CBS inventory contract during sales order entry:

Manually link the inventory contract on the Create new panel, the sales order header, alternatively on the sales order line. For the sales order line location, you can do this on the Order line, Main info panel, or on the Customer and item info, Line entry panel when creating a new sales order line using full entry mode (i.e. you clicked the Cust info function key on the Order lines panel). When such a reference is defined, the entered lines are validated against the inventory contract and the warehouse is retrieved from the inventory contract.
A setting on the Inventory contract header controls the possibility to combine sales order lines (i.e. lines connected to an inventory contract and others not connected to an inventory contract) on a sales order when you define the contract number on the sales order header.

If the Off-contract sales flag is set to YES, and the warehouse for the non-contract item is included and activated in your sourcing policy, a warning will be issued, (denoting that the item is not found on the inventory contract and that normal sourcing will take place), but you will be able to add sales order lines for non-contract items to the sales order as well as items from other inventory contracts.

If the Off-contract sales flag is set to NO, an error message will be issued and it will not be possible to add a sales order line for a non-contract item to the sales order. It will also not be possible to add a sales order line for items from other inventory contracts. However, if this flag is set to NO and if the inventory contract is only defined on line level, it will still be possible to mix lines for this inventory contract together with non-contract items and/or items from other inventory contracts.
Use the Inventory contract availability program. Click the Inventory contr availability program function on the Order lines panel. All contract lines with an available quantity for a specific inventory contract will be listed. The inventory contract can either be the contract which was referred to (on the Create new panel) when the sales order was created, or another inventory contract which can be defined on this panel. You can leave the quantity as is or enter the applicable quantity for the line and then select the line to create the sales order line.
If a sourcing policy was set up in your system, and it contains the warehouse used for CBS inventory contracts, and auto-sourcing is configured, you do not need to make a reference to the inventory contract during sales order entry. As a result of the auto-sourcing, the sales order line will be sourced using this inventory contract.

Select the Work with sales orders menu item.
On the Work with sales orders, Header view panel, add a sales order.
Create your sales order and link the inventory contract to the line as per one of the choices above.
On the Work with sales orders, Order lines panel, complete the mandatory information and click OK to create the item. The inventory contract is linked to the sales order line.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

The following posts have been created:

Order line created

Contract line was opened for the first sales order line that is linked to the contract

For these posts, the following is also listed:

– The date it was created

– The time it was created

– Type of order (S for sales order)

– Sales order number

– Sales order type for the sales order that was set up for this inventory contract type. The order type dictates the remaining steps in the sales order cycle. (Follow the remaining steps below).

Available quantity has been reduced by the quantity that is to be dispatched.

Reservations quantity has been booked with the quantity on the sales order line.

Print the sales order confirmation document via the Order confirmation option on the Work with sales orders, Header view panel if the sales order type was defined to print this document. Otherwise go to the next step (Print the pick list).
Print the pick list, either via the Pick list option on the Work with sales orders, Header view panel or via the Print pick list menu item if the sales order type was defined to print this document. Otherwise go to the step for Print the transport note.
Confirm the pick list for the Physical warehouse to which your CBS-warehouse is connected (if you used such a warehouse), or the normal warehouse (if you used such a warehouse). (See About pick list confirmation for instructions regarding the two different routines that can be used to confirm the picking. The Work with pickings program is described below.)

Select the Work with pickings menu item.
You access the Work with pickings, Pickings view panel. The warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your Physical warehouse that is connected to your CBS-warehouse (if you used such a warehouse), or the normal warehouse (if you used such a warehouse), click the Select warehouse function key to change it to your Physical warehouse or your normal warehouse.
What you choose to do next depends on the situation. It could be that not everything is ready to be confirmed, requiring you to change the line quantity, or you can perform a full dispatch. Perhaps you need to define the zone/location from where to pick the goods. See Work with picking for more information about the tasks available.

Catch weight handling
If the order line was flagged for Catch weight handling, you will access the Work with pickings, Catch weights panel where you must enter the catch weight quantity for the order line. (See About catch weight handling for price units) The Quantity to add field displays the quantity that must be reported. Multiple catch weights can be entered for one order line, allowing you to have a separate weight for each individual item. All catch weights are then accumulated to be the price unit quantity for the order line and will also be used to re-calculate the order line value. As you report the quantity, the quantity in the Quantity to add decreases and the quantity in the Total actual qty and Total CW quantity fields increases. If a variance limit percentage range was set up for the item/sales unit that is under catch weight handling, and the entered catch weight quantity exceeds the variance range limit that is set up, you will access the Override allowed CW variance panel where you must enter your signature ID and the security code for the signature to accept the exceeding quantity and continue with catch weight entry. When the entire quantity has been reported, click the Confirm catch weight function key to confirm the entered catch weight quantity(ies). A validation will be performed to check that catch weight has been entered for the entire quantity.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created:

Order line picked

For this post, the following is also listed:

– The date it was created

– The time it was created

– Type of order (S for sales order)

– Sales order number

– Sales order type for the sales order

On hand quantity has been reduced by the quantity picked.

Reservations quantity has been reduced by the quantity picked on the sales order line.

Consumed quantity has been booked with the quantity picked. If the consumed quantity is equal to the contract quantity the line will be closed and no more sales can take place.

Disp not invoiced quantity has been booked with the dispatched quantity that has not yet been invoiced.

For the CBS-warehouse, or the normal warehouse (in which case the physical warehouse will not be updated):

Net on hand and Reservation quantities have decreased.

For the Physical warehouse
(only updated if it is connected to the CBS-warehouse):

Net on hand and Reservation quantities have decreased.

For the CBS-warehouse, or the normal warehouse (in which case the physical warehouse will not be updated):

On hand and Reserved quantities have decreased.

For the Physical warehouse
(only updated if it is connected to the CBS-warehouse):

On hand and Reserved quantities have decreased.

Print the transport note via the Print transport notes menu item if the sales order type was defined to print this document. Otherwise go to the next step (Print the invoice).
Print the invoice, either via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item. When the invoice has been printed, the following log file post will be created for the inventory contract line: Order line invoiced. The Disp not invoiced quantity on the inventory contract line details will also be reduced with the quantity invoiced.