Inventory Functions

Lot control functionality is used to segregate inventory by configuration code.  Assigning a configuration code to a lot links the configuration code to inventory.  With this link, we are able to perform inventory functions by configuration code.  Thus, an item must either be lot controlled or lot assignable to use the configuration code features.

Lot Control Functionality

By assigning a configuration code option to each item in Part Master Maintenance conversation, you can define the way the lot control functionality is used.  The following table lists all valid Configuration Code options and related data.

         All Valid Configuration Code Options and Related Data.

With option 0, configuration codes are not used.

With options 1 and 3, your part is not truly lot controlled but will be using the lot control functionality simply to take advantage of the configuration code features.  Only one lot will be assigned to each configuration code.

With options 2 and 4, your part is truly lot controlled.  A new lot will be assigned for each manufacturing order.  Thus, a configuration code may be tied to many lot numbers.  These options allow 'true lot control' because a new lot number is created each time inventory is created.  Options 2 and 4 allow you to use both the configuration code and the system's lot traceability.

Inventory Reservation

Once a configuration code has been formatted you can look for existing inventory with this configuration code.  You must use lot assignment functionality in order to take advantage of inventory reservation by configuration code.

The Sales Order Entry conversation automatically verifies if inventory is available for the ordered configuration.  If it is available, the Lot Selection screen will appear displaying lots with matching configuration codes.  You can reserve inventory from these lots to the sales order line. 

If you are unable to reserve inventory at order entry time, the batch Automatic Order Release Program will assign inventory to sales order lines automatically once the inventory has been manufactured and received.  This is done by matching the configuration code to a lot number.  Reference File category Y35 provides an option for the immediate reservation of inventory upon receipt.

Manufacturing Configuration

For lot assignable configured items, the Manufacturing Configuration will generate a manufacturing order or requisition for the unreserved sales order quantity only.  If you are able to find existing inventory to fill a portion of the sales order, a manufacturing order or requisition will be generated for the remaining inventory needed.  If the order can be filled entirely from existing stock, no manufacturing order or requisition will be generated.  This reservation only occurs for the end item.

If the configured item is lot controlled but not lot assignable, a manufacturing order or requisition will be generated for the full sales order quantity regardless of the inventory reserved.  This allows "True Lot Control" because a new lot number is generated each time inventory is created

If the configured item is lot controlled but not lot assignable, a manufacturing order or requisition will be generated for the full sales order quantity regardless of the inventory reserved.  If the configuration code option is set to 2 or 4, this will allow true lot control because a new lot number is generated each time that inventory is created.

Configuration code options 1 and 3 provide greater flexibility but options 2 and 4 provide greater control and tracking of inventory.  Use the following scenario to compare and contrast a lot assignable configured item and a lot controlled but not lot assignable (true lot control) item,.  A sales order for ten of item A is entered into the system.

• If item A is a lot assignable item, you have the option of designating which lot or lots to reserve stock from and the quantity from each lot to fulfill the order.
• If item A is a lot controlled but not lot assignable (true lot control) item, you do not have the option of designating a lot or a specific quantity from that lot.  The system will generate a lot number, a manufacturing order, and the quantity that is predetermined for that item.

For manufacturing orders and requisitions at lower levels of the bill of material, the order quantity will be based on the order quantity of the highest level manufacturing order and the quantity per relationships between the parent and child parts.  The configuration code is saved on the manufacturing order or requisition, and on the component requirements for configured components.  When the configured component is issued to a manufacturing order, the lot number must match the component requirement's configuration code.

When a manufacturing order or requisition is completed for a configured item, you can record the receipt into inventory.  At this time a lot number is assigned to the inventory and a cross-reference between the lot and the configuration code is generated in the Configuration Assignment File (EC170M).  You may specify a lot number or leave it blank and have one assigned.  The next sequential lot number is held on Reference File category Y34.