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Sales Orders - How to Manage Stock & Kit SO Lines

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Overview

Inventory requirements driven by Sales Order Lines added for Kit or Stock Products (or Stock-This-Time Sales Order Lines, originally added for Configured Products) may be satisfied directly from the Sales Order Entry by generating Direct Purchases (which may be set up for drop-shipping) or can be handled by MRP, for those Inventory items that have a Planning Policy.

Stock Pic
Application

Stock Sales Order Lines can be automatically linked to Purchase Order Lines when the user firms said Sales Order Line if the Product is configured to auto-create Direct Purchases. This provides a 1-to-1 relationship between the Sales and Purchase Order Line and visibility for users when accessing either of these records.

Alternatively, it is possible to create this Direct Purchase from Sales Order Header manually, which would still provide the same 1-to-1 relationship. Or, if inventory is already available, the SO Line can be fulfilled directly from it without the need to create a Direct Purchase.

Key setup options specific to Stock/Kit Sales Order Lines

SO Control > Order Processing Tab

  • Direct Purchase Feature Active:  This indicates whether the Direct Purchase feature is active, which allows for the inventory components of Kit Products or Stock Products on SO Lines to be purchased directly from the Sales Order with an option to be drop shipped to the customer.

  • Inter-System Direct Purchasing Active:  When checked, Inter-System Purchase Order/Sales Order functionality is available for use. This feature allows purchases/sales between Divisions (which could belong to different companies) and can accommodate the creation of a second Sales Order in supplying Division/Company for Direct Sales Purchases. For details, see Inter Company Direct Purchase.


Product

  • Product Master > Direct Purchasing Tab

    • Auto Create Purchase Order Line:  When the Direct Purchasing Feature is active (set on SO Control record) and this field is checked, a Purchase Order Line will be automatically generated for this Product (applies only to 'Stock' Products or purchased components of 'Kit' Products) when added to Sales Order.

    • Auto PO-Drop-Ship to Customer Address:  When Direct Purchasing Feature is active (set on SO Control record), and this field is checked, Purchase Order Lines added from a Sales Order Line will have their Ship-To Address set to Sales Order Line's Ship-To Address.

    • Auto PO-Use Item Vendor PO header:  When Direct Purchasing Feature is active (set on SO Control record), and this field is checked, if a Purchase Order is referenced on the field Direct Purchase Order from Item Vendor Master record for the given Inventory Item and Primary Vendor, a Purchase Order Line will be added to the Purchase Order referenced.

  • Product Master > Inventory Tab

    • Price From Components (Kit and Config):  When checked, the Price is rolled-up from Sales Order Line Components (Material, Labor & Non-Inventory) as to calculate Sales Order Line's Unit Price. Checking this setting will also disable user edits of the field Unit Price on Sales Order Lines, ignore the Price Discount Logic, and set the Price Source as Components Roll-Up (ROL). As denoted in the label, it only applies to Kit and Configured Product Types.

    • Prevent Alloc. & Pick Before PO Receipt:  When checked, if the Sales Order Line is associated with a Purchase Order Line (Direct Purchase), Allocations and Line Issues are prevented on SO Fulfillment unless the related Purchase Order Line has enough quantity received. Applies only to Stock or Stock-This-Time Sales Order Lines.


NOTE image.png  NOTE  When the custom setting 'Direct_PO_Bypass_SOPick_Validation' is set to true, the system bypasses the 'Prevent Alloc & Pick Before PO Receipt' flag and allows allocation/picking of Direct Purchase Sales Order Line, even if there is an insufficient quantity received on the associated Purchase Order Line.
 

  • Inventory Item (Only for Stock Products): This is the Inventory Item Master that will be linked to the Sales Order Line, and for which the Sales Order Inventory Demands and resulting Purchase Order Line is created (if using Direct Purchases), upon Sales Order Line firm.


Inventory Item Master

  • Source:  Indicates the source of the item in the given Division. Selections are: Manufactured (made in-house), Purchased (obtained from a Vendor), or Subcontract (produced by a Vendor using Items supplied from in-house inventory).

  • Inventory Item Master > MRP Policies tab

    • Planning Policy: Defines how MRP will plan Items. Values are:

      • No MRP Planning (Not planned by MRP)

      • Days Cover (Group together all demands within the # of days defined)

      • Lot for Lot (Plan a supply for each demand)

      • Reorder Point (Order Policy Qty when On Hand Quantity < Safety Stock)


Item/Vendor Master

  • It is required that an Item/Vendor Master record exists for the Inventory Item Master linked to the SO Inventory Demands to generate Direct Purchases. An Item/Vendor record marked as Primary is required for auto-created direct purchases.


Processing
 

  1. Refer to the information below for the addition of the Sales Order Header and Lines:


User-added image  NOTE  When adding Kit/Stock lines, if the inventory Item is marked as Home Project, Home Project Indicator setting (Inventory Item Master > Misc CC Override tab), then the Sales Order inventory Demand is created for the Home Project instead of the SO Line specific Project. This means that the Inventory requirements and, if configured, the Purchase order Line Project is generated for this Sale Order Inventory Demand project value.
 

The addition of the SO Line for Kit, Stock, or Stock-This-Time Products will also trigger below:

  • Addition of Sales Order Inventory Demand (See Sales Order Line Components), which drives the Inventory Requirements once the Sales Order Line is firmed.

    • Kit SO Lines

      • Sales Order Inventory Demand records are created for valid Inventory-based Product Components for the Kit Product Master.

      • May have one or more Sales Order Inventory Demand. Each of these will generate a Purchase Order Line.

    • Stock and Stock-This-Time SO Lines

      • Sales Order Inventory Demand record is created for the Inventory Item set on Product Master > Inventory tab > Inventory Item field.

      • May only have one Sales Order Inventory Demand, which will generate one Purchase Order Line.

    • Direct Purchase This Time SO Lines

      • A Purchase Order Line record is automatically created when the Sales Order Line is firmed. 

      • The flag 'Direct Purchase This Time' can be updated via inline edit only for the unfirmed Sales order Line referencing the 'Stock' or 'Kit' Product.

  • Addition of Non-Inventory Components (NIC) (also Sales Order Line Components), fetched from Non-Inventory (Service and Miscellaneous) Product Master Product Components Tab.

  1. (Optional) Go to Sales Order Line Components and review the fetched records. Add/Remove (can only add SO Inventory Demands for Kit SO Lines) or Edit as desired.

  • This can only be completed before the Sales Order Line is set to Firmed status.

  1. (Optional) Make any other updates to the Sales Order Line on Sales Order Line Additional Section/Button. Default values are fetched from Product Master and SO Control records.

  2. Firm Sales Order Line  (and Save). 


Options to satisfy SO Inventory Demand
 

  • If Product Master is set for Auto-Create Purchase Order Line:

    • Purchase Order Lines will be auto-created to supply SO Inventory Demands for Firmed Sales Order Lines. The Vendor used for the Purchase Order Header is the Primary Item Vendor for the Purchase Item (that is linked to the SO Inventory Demands for the Sales Order Line).

    • For details, see Direct Purchasing.

  • If Product Master is not set up for Auto-Create Purchase Order Line, but a manual Purchase Order Line is to be added for SO Inventory Demands:

  • To be processed by MRP. If the Inventory Item has a Planning Policy, Inventory Item's Source:

    • Manufactured: MRP will generate Planned Work Order for a quantity according to Planning settings.

    • Purchased: MRP will generate a Purchase Requisition for quantity according to Planning settings.

    • Subcontract:  MRP will generate Purchase Requisition for a quantity according to Planning settings.

  • If Inventory is already Available and sufficient, SO Inventory Demand is satisfied and ready for SO Fulfillment.


SO Fulfillment Inventory Readiness

After the Direct Purchase, Planned Work Order, or Purchase Requisition is processed and the Inventory requirement is satisfied, the user can proceed with Sales Order Fulfillment steps for this Sales Order Line.

SEE ALSO
 

Sales Order Header Creation and Management
Sales Order Line Creation and Management
Purchase Order

Purchase Order Line
Purchase Order Line Details Button

Purchase Requisition
Work Order
Settings
Sales Orders - How to Manage Stock & Kit SO Lines
Sales-Orders-How-to-Manage-Stock-Kit-SO-Lines
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