PREPARED BY: SUYOG SHEMBEKAR CONSULTANT

Definition
Concept Case Detailed

& concept

of Master Inventory Org.

steps of definition of IO
(Sub-inventory and Inter-org)

Transactions

 An

organization for which you track inventory transactions and balances, and/or an organization that manufactures or distributes products.
Manufacturing facilities, Warehouses, Distribution Centers, Sales offices. which secure information through IO: Inventory, BOM, WIP, MS/MRP, Capacity, Purchasing Receiving

Example:

Applications

Business Group Legal Entity Operating Unit

Inventory Organization
Sub-Inventory

 Master

IO This IO is used for defining and assigning Items (To other IO)
No transaction happened at this IO

Transacting

IO This organization is particularly used for transacting Items (By definition and nature both the organizations are same)

Master IO in Singapore

Manufacturing Facility in China

Warehouse in India

Milk & Packaged Vegetables Co. Ltd. Milk Department Veg. Department

 This

IO we will define as Master IO

Now we will start defining its other attributes, we will start with defining accounting Option

For locator control we have following four options

Further options can be defined as follows

We will proceed to Costing Information tab of Organization parameters.

We use default Valuation accounts when we define organization parameters. These accounts default when we define sub-inventories and can be overridden.

Inter-org transfer can be of following type

Other accounts which need to be defined

Last thing is defining receiving options for the inventory org. This completes our IO definition

Now we will define two transacting IO i.e. Milk Dept and Veg Dept

Now we will have 2 sub inventories in Milk Dept IO i.e. Milk and Paneer as Stores

Same we will do for Veg dept here we will have subinventories as Paneer and Packveg

We define three Items as Milk, Paneer and Packaged Veg

We have updated the on-hand balance in all Sub-inventories

Similarly for Paneer.

And for Packaged veg.

Now we will do sub-inventory transfer

The updated on-hand balance is.

Now we will first define the shipping network for Inter-org transfer

Finally we will transfer the stock from MD to VD i.e. Paneer (Item)

The net quantity of IO VD Sub-Inv Paneer

The final sub-inventory transfer from Paneer to Pacveg That completes our basic definition as well as basic transactions of IO and Sub-Inventories