SC339 Umoja Local Inventory Goods Movement. Umoja Local Inventory Goods Movement Version

Transcription

1 SC339 Umoja Local Inventory Goods Movement Umoja Local Inventory Goods Movement Version 13.7 Copyright Last Modified: United 27-April-2015 Nations 1

2 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 2

3 Introduction Please share with us: Your Name Your Section/Unit # Years with the UN Interesting Fact About Yourself 3

4 Ground Rules Please consider the following guidelines during the training session: Turn your cell phone to silent mode. Please step out of the class to take any important phone call Please do not access your or the Internet outside of breaks Participate fully in the training session and respect each other s contribution Reference of transactional steps covered in this course are included in the User Guide. Ensure to review it to learn how to perform the transactions Breaks are included at the discretion of the trainer X X No Phones Do Not Access Participate Ask Questions User Guide Breaks 4

5 Course Overview The purpose of the Umoja Local Inventory Goods Movement course is to explain the steps to issue or transfer inventory without shipment in the Umoja system. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data & Coding Block Overview Umoja Logistics Overview: Non-PK Course Duration: 4.5 hours* * The duration does not include hands-on and practice. 5

6 Course Objectives After completing this course, you will be able to: List the key roles and responsibilities in the Local Inventory Goods Movement process Create and approve a reservation Execute a goods transfer Execute a goods issue Execute several exception processes Execute the Umoja Local Inventory Goods Movement Reports 6

7 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 7

8 Module 1 Objectives After completing this module, you will be able to: Explain Inventory Management Describe the key Supply Chain Master Data Explain the high-level Local Inventory Goods Movement process 8

9 Key Terminology Key Term Batch Management Functional Location Material Master Plant Reservation Description Management of batches, or homogenous partial quantities of a material or product A functional location represents a physical location (e.g. building, floor or room) where equipment can be installed and maintained. A Master Data record that contains all the information about the materials that UN procures, stores and ships. Specifically within Logistics, the Material Master incorporates valuation, batch management, serialization/barcode printing and quality inspection. The location where materials are produced, purchased, stored, inventoried, shipped, received and valuated or from which services are provided A system document created by Requisitioners that are used to identify the demand for a specific material at a storage location 9

10 Key Terminology Key Term Serialization Storage Location Description The process by which each equipment received is assigned a unique number A storage location reflects inventory owned by a particular Funds Center in a plant. It also reflects geographical locations that fall within the same plant. 10

11 Roles & Responsibilities The following Umoja Enterprise roles are involved in the Local Inventory Goods Movement process: Requisitioner Create Purchase Requisitions (Shopping Carts) for goods or services, as needed Create reservations for local inventory goods movement Inventory Senior User Approve Stock Reservations for issue/transfer Approve Stock Transport Orders for Shipment Initiate Physical Inventory Counts Conduct Goods Transfer across Plants and Scrapping 11

12 Roles & Responsibilities The following Umoja Enterprise roles are involved in the Local Inventory Goods Movement process: Inventory User Create Reservations (function extended to other users) Create Stock Transport Orders Conduct Goods Issue based on approved Reservations Conduct transfer between locations of the same fund center Update Inventory counts in the system 12

13 Definition of Operational Inventory for Umoja Inventory in Stock All IPSAS reportable Financial Inventory All items centrally managed in a UN Warehouse Structure All items kept in Stock by specific offices for: - Delivery of Services to other UN entities (for e.g., facilities unit stocking building materials for provision of maintenance for buildings) or, - Distribution to other entities (for e.g., IT equipment delivered by IT units to other departments/offices) Inventory in Umoja will be used in the future for planning purposes, management of safety stocks, reorder points etc. 13

14 Definition of Operational Inventory for Umoja Inventory in Transition In addition to the above, items that do not follow the Operational Inventory definition above might be reflected as Inventory for a period of time before being issued for consumption for the following reasons: - Items under Inspection: all items that require Quality Inspection prior to acceptance - Items in Transit: all items that are received into the UN Supply Chain prior to delivery 14

15 Definition of Operational Inventory for Umoja Financial Inventory Financial Inventories are inventory items whose valuation is to be reflected on Financial Statements as per the latest IPSAS 12 Policy Framework Guidelines Valuation of these inventories is determined based on IPSAS reporting and is reflected on FI statements starting January 2014 Umoja will adopt the Valuation Methodology used for IPSAS reporting for Financial Inventories at the time of go live Post SAP go live valuation will be based on Moving Average Price 15

16 Local Inventory Goods Movement Review When a Requisitioner requests goods locally (that is, without shipment), a reservation must be created to specify the movement. The Requisitioner will distinguish whether the goods are for stock (reservation against another storage location) or for immediate use (e.g., reservation against a Cost Center and project). Once the reservation is approved, the goods will be issued or transferred appropriately. The system stock levels and financial postings are updated accordingly. 16

17 Logistics Execution Processes Vendor Virtual GR (Inbound) Port Physical GR (Inbound) Physical GR (Inbound) Plant A Goods Issue to STO/Outbound Delivery (Outbound) Physical GR (Inbound) Plant B Storage Location 1a Storage Location 1b Storage Location 2 Storage Location 3 Goods Transfer Goods Issue Inventory Counting & Controlling Warehouse UN1 Work/Sales Order Cost Center Project Project 17

18 Supply Chain Master Data The Material Master Data is related to two other Supply Chain Master Data elements: Equipment Master Data and Asset Master Data. Material Master All materials in Logistics Execution are procured using the Material Master Record and managed in Inventory. How much do I buy? Where do I have in stock? What can I issue? What can I transport? Equipment Master Asset Master Materials that must be tracked, installed, maintained, operated, and managed are defined as equipment and tracked using an Equipment Master Record for that item. What is due for maintenance? Where/with whom is the equipment? Fixed Assets are UN materials that have a financial value above the IPSAS thresholds and are tracked using an Asset Master Record for that item. What is the depreciation expense for the period? Per IPSAS, equipment over IPSAS threshold are also considered fixed assets and would have both an Equipment Master and Asset Master Record for that item. 18

19 Requesting Updates to Master Data Within Umoja, Transactional Users can only display Master Data (with a few exceptions). When a Transactional User requests the creation or update of a Master Data element, a request form needs to be filled out with all the required information. The forms can be found on iseek through the following path: UNHQ iseek> Umoja> Master Data Maintenance. These forms will be submitted to umoja-mdm@un.org and automatically redirected to the correct Reviewer, Approver and Data Maintainer in the Data Governance process. 19

20 Supply Chain Master Data Specifically within Logistics, the Material Master impacts Inventory Management in the following ways: Valuation Batch management Serialization/barcode printing Quality inspection 20

21 Split Valuation In Umoja, the below two material types are subject to Split Valuation : Spare Parts Equipment/related supplies Both Material types will have split valuation for new and old items. New items in the inventory will be valued at moving average price; whereas, old items in the inventory will be priced at zero (0). Any goods received in Umoja will have the new valuation price automatically populated based on the PO price. However, when equipment is brought back to the inventory, IPSAS requires that the valuation of the equipment is set to the old valuation, that is zero (0). 21

22 Batch Management Items that require Batch Management, for example, medical supplies and ammunition, are defined at the Material Master level. These items include special characteristics, such as shelf life and expiration date. Batch Management affects all movements in Umoja: Inbound Goods Material is assigned to a batch upon receipt (or defined by the user) Expiration date and allowed shelf life are checked based on batch requirements Outbound Goods An expired batch cannot be issued for consumption System will automatically choose batches with least available life for issuance 22

23 Serial Number Creation/Barcode Printing All trackable material requires a serial number to be assigned at the point of Goods Receipt. The serialization requirement is set at the Material Master level. Serial numbers will always be system generated to identify unique equipment. For vendor provided or internally generated barcodes, there is a location on the Equipment Master to manually input that information. System generated numbers ensure consistency of application globally and enable receipt at international origin locations where there is no actual R&I. It also enables the business to print Umoja serial numbers on standard bar code labels. 23

24 Quality Inspection Inspection in Umoja ECC will be required only for goods undergoing a Physical Receipt. If an inspection is required based on Material Master requirements, the Quality Inspection destination is automatically selected during the Goods Receipt transaction. When these goods are posted, the Inspection Lot is automatically generated in Umoja ECC. The goods are placed in the Quality Stock. Invoice is blocked until inspection is cleared. If the inspection fails, the goods can be returned to the vendor. For goods that are received using the Virtual Goods Receipt process, where the good still requires a quality inspection, inspection is performed during receipt at the final location. 24

25 Logistical Structure within Umoja A plant is the location where materials are produced, purchased, stored, inventoried, shipped, received and valuated or from which services are provided. A storage location reflects the inventory owned by a particular Funds Center in a plant. It also reflects the geographical locations that fall within the same plant. One Funds Center can therefore have multiple storage locations However, no two Funds Center can share the same storage location Materials in inventory are managed in storage locations Plant PLANTS: Peacekeeping Mission, Special Political Mission UNHQ OAHs (UNON, UNOG, UNOV, etc) Entities (UNEP, UN-HABITAT, etc) Storage Location Material Material Material Material Storage Location Material Material Material Material STORAGE LOCATIONS: Plant-specific physical location Site where goods are physically received and/or stored Site where fund center controls inventory SAU for PK mission Organizational Unit at HQ/OAHs (i.e. Section) 25

26 Storage Location Types There are two types of storage locations: Transit Storage Locations (Virtual Goods Receipt & Transit Locations) Transit locations have been created to indicate where goods are geographically located prior to arrival to final destination. They support the Virtual Goods Receipt process and have no financial derivation (no correspondence to Funds Center). Stocking Storage Locations (ex. Medical Section, Facilities Management, etc.) Material/Inventory is physically stocked and managed at these storage locations Linked to one Funds Center/Plant, reflecting ownership and deriving financial postings Note: For technical reasons, fixed assets always require receipt into a storage location (even when they are not procured for inventory/stock and are procured for consumption/immediate use). Accordingly, a specific storage location (A000) is available for this purpose in each plant. 26

27 Storage Location Types Manufacture Delivery Point Origin Transit Storage Location (can be any location outside of UN control) United Nations UN Transit Storage Location (specific geographic location that needs to be entered at Goods Receipt) 27

28 Budget Relevant Goods Issue When goods are issued from a storage location, the movement can be budget relevant or non-budget relevant. For instance, a Goods Issue to a different Cost Center would be budget relevant. Other factors, such as a Service Level Agreement (SLA), may determine budget relevance. Goods Issue (Budget relevant) Requesting entity is responsible for funding the goods. Budget: Receiving fund is impacted when posting Accounting: Inventory Account is credited, and Expense Account is debited Inventory value will be reduced by the same amount Goods Issue (Non-budget relevant) Sending entity is responsible for funding the goods. Budget: No budgetary impact when posting Accounting: Inventory Account is credited, and Expense Account is debited Inventory value will be reduced by the same amount 28

29 Putting it Together Goods Issue Checklist When performing a goods issue, the Requisitioner and Inventory Senior User needs to consider the following items: Requisitioner Inventory Senior User Who is requesting the goods Requisitioner What is being requested Material, Quantity and others. Where do the goods need to be delivered Requesting Entity Who is paying Requesting Entity (budget-relevant) Sending Entity (non budget-relevant) Where are the goods issued from (Sending Entity) Local Plant Create Shopping Cart to Procure Inventory Obtain from Another Plant 29

30 Goods Issue (Requisitioner) When a Requisitioner needs goods: Requisitioner Check the Stock Requirement List Scenario 1 Scenario 2 There is NO stock in the system There is stock in the system Requisitioner Create Shopping Cart Requisitioner Create Reservation for Local Plant/Storage Location Procurement Steps Approval Process (next slide) Inbound Coord/Receiving User Goods Issue Inventory User Goods Issue 30

31 Local Inventory Goods Movement Process Steps Requisitioner Inventory Senior User Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer The Requisitioner follows a logical process to determine whether the goods are available or if a new requisition has to be raised. The Stock Requirement List is a report used to ascertain the availability of inventory at the required plant, on the required date. If the goods are available in the system, the Requisitioner can create a reservation. If the stock is not available, the Requisitioner raises a shopping cart and follows the normal procurement steps. 31

32 Local Inventory Goods Movement Process Steps Requisitioner Inventory Senior User Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer In order to process a local inventory goods movement, the Requisitioner must first create a reservation. It can be used to issue or transfer goods. A reservation indicates the key elements to enable fulfillment of the requirement including the relevant account and financial related information for the goods issue, the related movement required, the requirement date, the respective materials and from which location they are being requested. 32

33 Local Inventory Goods Movement Process Steps Requisitioner Inventory Senior User Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer The Inventory Senior User needs to check the open reservations and verify the availability of the required items with the Stock Requirement List. At this point, the Inventory Senior User has the following choices: Issue goods from local plant/storage locations Create a Shopping Cart to procure the goods (discussed in the Requisitioning course) Obtain goods from another plant by creating a Stock Transport Order (STO), (discussed in the Stock Transport and Delivery course) 33

34 Local Inventory Goods Movement Process Steps Requisitioner Inventory Senior User Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer After the availability has been confirmed, the Inventory Senior User approves the reservation before the goods are issued. During the approval process, the Inventory Senior User has the capacity to change the requirements indicated in the reservation. 34

35 Local Inventory Goods Movement Process Steps Requisitioner Inventory Senior User Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer Now, one of the following can occur: 1. Goods Issue: Goods issue occurs when the goods are issued out of inventory and consumed upon issue (must be from a storage location, unrestricted stock) so that the inventory is adjusted and financial accounts are updated with the inventory move, recording an expense against the receiving object (Cost Center, Project, etc.) 2. Goods Transfer: Goods transfer occurs when transferring materials from one storage location to another co-located location (no shipment). This has no financial implications and always requires a reservation. Transfer of goods is only allowed in a plant between locations under the same Fund/Funds Center and Functional Area (the same budget owner) A Goods Issue/Transfer slip will be generated in both the cases. Note: An exception case is a transfer between plants. In Umoja, this can be addressed with ad-hoc inventory postings (e.g., plants are co-located) or it may involve the use of a Stock Transport Order (e.g., when there is the need to track the shipment of goods). The Inventory Senior User is responsible for determining the more appropriate process. 35

36 Goods Issue and Goods Transfer The following diagram describes Goods Issue and Goods Transfer process. Storage Location (Unrestricted) Must be from a Storage Location and Unrestricted Stock Goods Issue Work Order (Consumption) Cost Center (Consumption) Project (Consumption) STO/Outbound Delivery* (Plant to Plant) Goods Transfer Goods are transferred between Storage Locations within the same plant Storage Location 1A (Same Fund/Fund Center) Stock Types Storage Location 1B (Same Fund/Fund Center) Goods are transferred between Stock Types within the same plant* Unrestricted Quality Stock Types Unrestricted Quality *Note: This section is discussed in detail in the Stock Transport and Delivery Job Aid. Blocked Blocked *This cannot be requested through the Reservation process 36

37 Learning Checkpoint 1 In order to process a local inventory goods movement, the Requisitioner must first create a. Fill in the blank with the correct option. A. Purchase Requisition B. Goods Issue C. Goods Receipt D. Reservation 37

38 Learning Checkpoint 1 In order to process a local inventory goods movement, the Requisitioner must first create a. Fill in the blank with the correct option. A. Purchase Requisition B. Goods Issue C. Goods Receipt D. Reservation Option D is the correct answer. In order to process a local inventory goods movement, the Requisitioner must first create a reservation. 38

39 Learning Checkpoint 2 occurs when transferring materials from one storage location to another co-located location (no shipment). Select the correct option A. Goods Issue B. Goods Transfer C. Reservation Approval 39

40 Learning Checkpoint 2 occurs when transferring materials from one storage location to another co-located location (no shipment). Select the correct option A. Goods Issue B. Goods Transfer C. Reservation Approval Option B is the correct answer. 40

41 Module 1 Summary The key points covered in this module are listed below: Local Inventory Goods Movement involves the issue or transfer of inventory without shipment The Material Master Data is related to two other Supply Chain Master Data elements: Equipment Master Data and Asset Master Data The Local Inventory Goods Movement processes involve the following: checking stock requirement list, creating a reservation, checking stock requirement list, approving a reservation, processing a goods issue or goods transfer 41

42 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 42

43 Module 2 Objectives After completing this module, you will be able to: Monitor the Stock Availability through the available reports Create a reservation Approve a reservation 43

44 Reservation Management Overview Reservations are used to identify the demand for a specific material at a storage location for a required date. Reservations inform the Inventory Senior User of the requirements of the requesting departments. The Inventory Senior User can then act upon the request and provide the goods to the requesting department. The requesting office will distinguish whether the goods are for immediate use (goods issue) or for inventory (goods transfer) by selecting the required type of posting. 44

45 Reservation Management Overview When a reservation is entered, the following events occur in the system: The system creates a reservation document, which serves as proof of the request Reserved stock is increased by the reserved quantity 45

46 Reservation Management Overview Reservations need to specify the following: The type of movement (e.g. Goods issue or Goods Transfers) The Requirement Date for the goods The materials, quantities and location from which they are requested The relevant account assignment for the requestor (e.g. Cost Center, WBS, etc.) An indication to the approver on the requestor s budget, by selecting the relevant movement type (budget relevant/statistical) The name of the requestor (so approver can follow up with the responsible party in case there is an issue with the reservation) as well any other relevant reference, e.g., Service Level Agreement number as/if applicable 46

47 Manual Reservation Creation: Selection of the Posting Type During the reservation creation the user will select: 1. The goods movement type (e.g. Goods Issue or Transfer) 2. The accounting object (e.g. Cost Center or WBSE) 3. The type of budget relevance (e.g. Statistical / Real) Note: Depending on the menu selection, the system will derive the correct Movement Type which will influence also the accounting treatment of the goods movement. 47

48 Structure of a Reservation Reservation Header Base date Check against calendar Movement type Account assignment Entered by Item 2 1 st Item 2 nd Item.. Items Material Quantity Plant/storage loc. What? How much? Where? By setting the indicator Movement Allowed the Inventory Senior User approves the manually created reservations. Reqmts date Movement allowed When? 48

49 Inventory Management: Reservation Flow Creation of a Reservation Automatic requirement generation Requirement created by Requisitioner Orders Manually Work Orders Sales Orders Inventory Senior User Unrestricted Stock Reserved Stock Increases Issue Stock Approve Reservation 49

50 Reservation Monitoring, Review and Approval The Inventory Senior User is responsible for monitoring, reviewing and approving reservation. Once the reservation is approved, the inventory user can perform the required inventory posting with reference to the reservation. In order to monitor the open reservations, the Inventory Senior User can execute the Reservation List report, selecting the Open Requisition still to be approved In order to review the reservation it is possible to access the reservation details from the Reservation List report; the Inventory Senior user will review and check completeness and correctness of the details entered in the reservation The Inventory Senior user will check whether the inventory items are in available in stock for the required date/quantity If the reservation can be satisfied, the Inventory Senior user will approve the reservation so that the inventory user can perform the next steps in the system Monitoring Open Reservations Review Reservation Details Check Stock Requirement List Approve Reservation 50

51 Umoja ECC Stock Type A stock type defines the system state that classifies goods. Stock types used in Umoja are Unrestricted Stock, In Transit Stock, Blocked Stock and Quality Stock. Unrestricted Stock In Transit Stock Material available for use upon receipt This stock type allows full financial posting and invoice processing at goods receipt This stock can be issued and transferred without restrictions Material in transit to receiving location Material has already been withdrawn from storage at the issuing plant, but has not yet arrived at the receiving plant It is included in the valuated stock of the receiving plant 51

52 Umoja ECC Stock Type A stock type defines the system state that classifies goods. Stock types used in Umoja are Unrestricted Stock, In Transit Stock, Blocked Stock and Quality Stock. Quality Stock In Blocked Transit Stock Material requires inspection following receipt This stock type allows full financial posting at goods receipt Invoice processing is blocked until inspection results are recorded in the system Goods that pass inspection are moved to Unrestricted Stock Goods that do not pass inspection are returned to the vendor Cannot be issued out Material not available for use upon receipt Used when goods are clearly damaged or have different specifications from the PO Upon receipt of such goods UN will not accept ownership until resolution is reached with vendor This stock type blocks full financial posting,invoice processing, and issuance 52

53 Reserved Stock Available Stock Inventory Management: Availability of Stock Storage Location PO Delivery Current Stock (Unrestricted) Available Stock PO Delivery Quantity Outbound Delivery Current Stock (Unrestricted) Reservation 1 Reservation 2 Reserved Stock (Reservations, Outbound Deliveries) Safety Stock Will be activated with MRP (Material Requirement Planning) in Umoja Extension Safety Stock 53

54 Reservation Scenario: Goods Issue to Cost Center Goods Issue to Cost Center EXAMPLE: A Requisitioner from the United Nations Headquarters Medical Support Division is requesting medical supplies for consumption. The requesting office is charging this goods issue to Cost Center The goods requested are: Material (Hepatitis B Vaccine), which requires batch management Note: This Cost Center is an example only. The processes described in the next slides are carried out. 54

55 Reservation Management Process Steps Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer The Requisitioner runs the Stock Availability Summary report (T-code ZLE_STCK_OVRVW), checks his or her local plant and sees that available goods are located in Plant US00 (UNHQ) and the Storage Location is 7500 (Medical). To Check the Stock Availability Summary report, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 2 for the detailed steps. 55

56 Reservation Management Process Steps Check Stock Requirement List Create Reservation Highlights of the Stock Availability Summary report (ZLE_STCK_OVVRW): Check Open Reservations and Stock Requirement List The report provides the available stock for the selected material at report execution date (Total on Hand) and at requirement date (Available to Promise). It can be executed for multiple materials, plants and storage locations. Approve Reservation Goods Issue or Goods Transfer 56

57 Reservation Management Process Steps Check Stock Requirement List Create Reservation Highlights of the Stock Overview report (MMBE): Check Open Reservations and Stock Requirement List The report provides the available stock at the execution date for the selected material. The report shows all different stock types and can be executed for a single material, multiple plants, storage locations and batches. Possible to display the inbound and outbound transactions from the report. Approve Reservation Goods Issue or Goods Transfer 57

58 Reservation Management Process Steps Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer The Requisitioner executes T-code ZMMMB21 to create a Reservation in Umoja. The reservation is created indicating the required information. If needed, a manual reservation can be changed or deleted via the same transaction. The Requestor should change or delete only a reservation that is not yet approved and issued. The Inventory Senior User, during the reservation review and approval, may change some details in the reservation in order to satisfy it; an example would be changing the storage location or the requirement date. If a reservation cannot be satisfied it can be deleted. To create a reservation, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 2 for the detailed steps. 58

59 Reservation Management Process Steps Check Stock Requirement List Create Reservation Highlights of using T-code ZMMMB21 to create reservation: 1 To select the movement type, click the Movement Type menu 2 Select the Consumption menu item 3 Select the required type of movement Check Open Reservations and Stock Requirement List Approve Reservation 1 Goods Issue or Goods Transfer Once the type of goods movement is selected, the user shall select the account assignment element and the type of budget relevance (e.g. Cost Center, Statistical Posting). 2 3 Note: The correct movement type will be defaulted based on the above selections. 59

60 Reservation Management Process Steps Check Stock Requirement List On the Create Reservation: New Items screen, populate the following fields: Fund of requesting office Cost Center / WBS or Order (depending on the previous selection) Goods Recipient as Requestor Name Required material number Quantity of requested item Issuing storage location Create Reservation Check Open Reservations and Stock Requirement List Enter the batch if the system prompts you to do so, e.g. NEW_SUPP or NEW_SPARES Text: e.g., the Service Level Agreement (SLA) number, as/if applicable, or any other information / clarification on the required goods Approve Reservation Goods Issue or Goods Transfer 60

61 Goods Issue Movement Types Examples of different Statistical goods issue movement types are given below. Storage Location (Unrestricted) Work Order Cost Center Project STO/Outbound Delivery 61

62 Goods Issue Movement Types Statistical and Real This table shows the different goods issue movement types and financial implications: Movement Type Description Financial Implication Stat. ZK1 - Real Goods Issue to Cost Center Budget: Budget-relevant transactions impact receiving Funds Center budget; Non-budget relevant has no impact Accounting: Receiving Cost Center will carry the expense of the goods Inventory value and quantity will be reduced 202 ZK2 Reversal of GI to Cost Center All financial postings are reversed 221 Stat. ZW1 - Real Goods Issue to Project Budget: Impacts Project budget if budget-relevant Accounting: Impacts Project account specified by WBS element Inventory value and quantity will be reduced 222 ZK2 Reversal of GI to Project All financial postings are reversed 261 Stat. ZO1 Real Goods Issue to Work Order Budget: Impacts Work Order budget if budgetrelevant Accounting: Impacts Cost Object of the Work Order Inventory value and quantity will be reduced 262 ZO2 Reversal of GI to Work Order All financial postings are reversed 62

63 Reservation Management Process Steps Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer The Inventory Senior user checks the open reservations awaiting approvals and the availability of stock of the required materials. To check the open reservations and Stock Requirement List, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 2 for the detailed steps 63

64 Issuance of Inventory under Umoja Cost Recovery Policy Background Excerpts from Umoja Cost Recovery OPPBA Memorandum December 2014 All funds provided to UN Secretariat Service Providers, other than those allocated through the normal and usually assessed budgetary regime, fall under the rubric of cost recovery All recoveries that qualifies as Cost Recovery will be recorded as revenue in Umoja, because offsets to expenditure are not permissible with the implementation of IPSAS. The conversion of revenue into allotments in Umoja will depend on whether such revenue will be considered spendable or nonspendable System controls require that each fund and grant must have adequate cash available before a payment can be made Therefore service acquisition and provision requires improved cost planning, cash flow projection and service level agreements 64

65 Issuance of Inventory under Umoja Cost Recovery Policy Recording issuance of inventory in the context of Umoja Cost Recovery policy There is a distinction between: General Fund inventory (e.g. inventory procured with 10UNA fund) Cost Recovery inventory (e.g. inventory procured with 10RCR fund) Issuance of General Fund inventory Statistical Posting Reservation + Goods Issue to indicate inventory owner budget (e.g. Cost Center / General Fund) as account assignment; reservation to indicate the requestor in the Goods Recipient field. Issuance of Cost Recovery inventory included in a Service Level Agreement Statistical Posting Reservation + Goods Issue to indicate inventory owner budget (e.g. Cost Center / General Fund) as account assignment; reservation to indicate the requestor in the Goods Recipient field. Issuance of Cost Recovery inventory for ad-hoc requests to other requesting offices Budget relevant posting Reservation + Goods Issue to indicate requestor budget (e.g. Cost Center / General Fund) as account assignment and the requestor in the Goods Recipient field. 65

66 Reservation Management Process Steps Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List The Reservations List (T-code MB25) provides details of the reservations and their status. Approve Reservation Goods Issue or Goods Transfer It is possible to select the reservations based on multiple different criteria, including their status (e.g. Open) or on other criteria, such as requested material, requirement date, plant, cost center, etc. From the displayed list it is possible to position the cursor on a specific reservation, double click and access directly the reservation s details. 66

67 Reservation Management Process Steps Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer Approved reservations book stock and the system calculates the Available Stock (or Available to Promise stock) accordingly. To approve a reservation, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 2 for the detailed steps. 67

68 Reservation Management Process Steps Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer Reservations need to be approved before a goods transfer or issue can be executed. 2 The Inventory Senior user reviews/approves the Reservation: 1 Click the material. Check the text and Recipient fields are as expected 2 It is possible to check the stock level by selecting a material and clicking the Environment menu; then select Stock Overview menu item 3 Select the M check box to approve the Reservation (Goods Issue can be performed) Note: The Final Issue (FI) check box can be selected to prevent further goods issue against this reservation. 68

69 Reservation Management Process Steps Check Stock Requirement List Create Reservation Check Open Reservations and Stock Requirement List Approve Reservation Goods Issue or Goods Transfer Next, the goods will be issued or transferred. This process is described in the following two modules. 69

70 Simulation Activities Throughout this training, users will have the opportunity to conduct activities in the form of simulations. Simulations are interactive recordings of the Umoja system used to help facilitate a hands-on learning experience. The simulation links are provided on the corresponding activity slides. Users can access simulations in three different modes: Show me: Users view a video of an entire transaction being conducted Let s do it together: Users will be prompted to input data at key points during the transaction (recommended) Try it: Users can complete an entire transaction on their own, with no additional instructions provided 70

71 Activity 1 Transaction Name: Execute Stock Availability Report Transaction Code: ZLE_STCK_OVRVW Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 71

72 Activity 2 Transaction Name: Create Manual Reservation with Approval Transaction Code: ZMMMB21 Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 72

73 Activity 3 Transaction Name: Approve Reservation Transaction Code: MB22 Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 73

74 Learning Checkpoint 1 The reservation does not indicate: Select the correct option. A. The requested material B. The required quantity C. The Inventory Senior User D. The requirement date 74

75 Learning Checkpoint 1 The reservation does not indicate: Select the correct option. A. The requested material B. The required quantity C. The Inventory Senior User D. The requirement date Option C is the correct answer. The Inventory Senior User is NOT indicated in the reservation. Material, quantity and date are indicated in the reservation. 75

76 Module 2 Summary The key points covered in this module are listed below: The stock levels are reviewed in the system prior to create a reservation Reservations are used to identify the demand for a specific material at a storage location Reservations need to be approved before a goods transfer or issue can be executed against them 76

77 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 77

78 Module 3 Objectives After completing this module, you will be able to: Explain the situations under which a Goods Issue process can be executed Explain the Goods Issue process 78

79 Goods Issue and Goods Transfer The following diagram describes Goods Issue and Goods Transfer process. Storage Location (Unrestricted) Must be from a Storage Location and Unrestricted Stock Goods Issue Work Order (Consumption) Cost Center (Consumption) Project (Consumption) STO/Outbound Delivery* (Plant to Plant) Goods Transfer Goods are transferred between Storage Locations within the same plant Storage Location 1A (Same Fund/Fund Center) Stock Types Storage Location 1B (Same Fund/Fund Center) Goods are transferred between Stock Types within the same plant* Unrestricted Quality Stock Types Unrestricted Quality *Note: This section is discussed in detail in the Stock Transport and Delivery Job Aid. Blocked Blocked *This cannot be requested through the Reservation process 79

80 Goods Issue Overview In this module, we will cover the Goods Issue process against the previously approved reservation. Goods Issue occurs when the goods are issued out of inventory and consumed upon issue, so that the inventory is adjusted and financial accounts are updated with the inventory move, recording at the same time an expense against the receiving object (e.g., Cost Center, Project, Order). The effects on budget depends on the movement type selected in the reservation, i.e.: If the movement type in the reservation is Real, the goods issue will have effect on budget if the movement type in the reservation is Statistical, the goods issue will have no effect on budget Note: Only approved reservations can be issued. Whenever a goods issue is performed without reference to a reservation, the user has to select the correct movement type, e.g., to Cost center, Statistical. 80

81 Goods Issue Overview The key points are as follows: The Goods Issue is performed by the Inventory User. The stock to be issued must be available as unrestricted stock in the Inventory User Plant/Storage Location When the Goods Issue is posted with reference to a reservation, the reservation data are inherited in the goods issue transaction If the Goods Issue is for a reservation, the Inventory User can enter one or multiple reservations to issue at the same time Beside approved reservations, Goods Issue may take place for other reasons, such as sales or donation of inventory items, need to scrap managed items, or in relation to a work order that includes components to be withdrawn from inventory. When the Goods Issue is posted, the Goods Issue Slip is printed 81

82 Goods Issue Overview The T-code for Goods Issue is MIGO. MIGO is the basic transaction used for all inventory movements in Umoja, e.g.: Goods Receipt Goods Issue Goods Transfer Cancellation Display Material Document The different inventory postings are managed through the relevant movement types and reference documents that can be specified in MIGO transaction. To perform a Goods Issue, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 3 for the detailed steps. 82

83 Goods Issue: Highlights Key data entry in MIGO Goods Issue with reference to an approved reservation. 2 1 The Inventory User follows the steps below to perform the Goods Issue: 1 Enter MIGO in the Command field 2 Click the Enter icon. The MIGO initial screen is displayed, 3 Populate the following fields: Select Goods Issue from the first dropdown list Select Reservation from the second drop-down list Enter the reservation number for which the goods are to be posted. It is possible to post the goods issue for multiple reservations at the same time 3 83

84 Goods Issue: Highlights 4 Populate the following fields: - Document Date: The date of the Umoja transaction - Posting Date: The date of the actual goods issue. This must be updated to the actual date on which the goods are issued - Collective Slip checkbox: This checkbox is checked by default. Do not remove the check since this is required in order to print 4 84

85 Goods Issue: Highlights The tabs are as follows: Material tab: Shows the Material ID and Description Quantity tab: Shows the Quantity in Unit of Entry Where tab: Shows the Movement Type, Stock Type, Plant and Storage Location Batch tab: Shows the batch information (only for batch managed items) Account Assignment tab: Shows the financial information Serial Numbers tab: Shows the serial numbers (only for serialized materials) 85

86 Goods Issue Overview Further to issuing goods out of inventory for consumption, this module will also cover the issuing of equipment from stock to be installed at a Functional Location using transaction IE4N. The transaction IE4N Install Equipment to a Functional Location, is used for issuance from stock of individual equipment (only one equipment at the time can be specified). This transaction allows to reference both an approved reservation and a notification. The relevant information is inherited from the reservation and from the notification. The IE4N transaction allows to keep a consistent link between a reservation, a notification and the issuance of the goods. The Equipment master record issued from stock is updated when the IE4N is posted. To perform a Goods Issue, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 3 for the detailed steps. 86

87 Goods Issue: Highlights Key data entry in IE4N with reference to an approved reservation. 2 1 The Inventory User follows the steps below to perform the Goods Issue: 1 Enter IE4N in the Command field 2 Click the Enter icon. The Equipment Installation with Goods Movement screen is displayed 3 Click the Sessn drop-down list 4 Select Equipment Installation with Goods Movement

88 Goods Issue: Highlights 5 Enter the reservation number in the Reservation field and click the Enter icon 6 The reservation referenced per the above parameter will populate the following fields in the same section: Movement Type, Plant and Material 7 The reservation referenced per the above parameter will populate the following fields under the Acct Assgt tab: GL/Account, Fund and Cost Center

89 Goods Issue: Highlights Continue to populate additional fields in the Install Object section: 8 In the Serial Number field, press Enter 9 Click the blue button next to the Status Equipm. Field. From the list of statuses displayed, select Status and click the OK icon

90 Goods Issue: Highlights Under the Installation Location section: In the Top Functional Location field, as selected in the first drop-down list, enter Top Functional Location and press Enter 10 In the InstallDate field, enter the installation date and press Enter Under the Notification tab: In the Notification field, enter Notification Number and press Enter 12 In the Task field, enter Task Group and press Enter 13 Click the Check button on the top of the screen 14 Click the Save button

91 View Material Document A material document is generated with each Goods Movement action performed in Umoja ECC. The user can view the Material Document in the Goods Issue screen (T-code MIGO), Display in reference to Material Document and enter the corresponding Material Document number. The Material Document Display screen has the same fields and tabs as the Goods Issue screen, in addition to a Doc info tab and an Output tab. However, the information cannot be edited. 91

92 Activity 1 Transaction Name: Create Manual Reservation with Approval Transaction Code: ZMMMB21 Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 92

93 Activity 2 Transaction Name: Approve Reservation Transaction Code: MB22 Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 93

94 Activity 3 Transaction Name: Goods Issue Transaction Code: MIGO Link to the uperform simulation: ?mode=EU&originalContext= Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 94

95 Activity 4 Transaction Name: Goods Issue to Reservation with Approval Transaction Code: MIGO Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 95

96 Learning Checkpoint 1 Which of the following T-codes is used to perform a Goods Issue against a reservation? Select the correct option. A. MIGO_TR B. MIGO C. IE02 D. MB22 96

97 Learning Checkpoint 1 Which of the following T-codes is used to perform a Goods Issue against a reservation? Select the correct option. A. MIGO_TR B. MIGO C. IE02 D. MB22 Option B is the correct answer. The T-code MIGO is used to perform a Goods Issue document against a reservation. 97

98 Module 3 Summary The key points covered in this module are listed below: Goods Issue occurs when the goods are issued out of inventory and consumed upon issue (must be from a storage location in the unrestricted stock) The transaction in the Goods Issue process is MIGO 98

99 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 99

100 Module 4 Objectives After completing this module, you will be able to: Explain the situations under which a Goods Transfer process can be executed Explain the Goods Transfer process 100

101 Goods Issue and Goods Transfer The following diagram describes Goods Issue and Goods Transfer process. Storage Location (Unrestricted) Must be from a Storage Location and Unrestricted Stock Goods Issue Work Order (Consumption) Cost Center (Consumption) Project (Consumption) STO/Outbound Delivery* (Plant to Plant) Goods Transfer Goods are transferred between Storage Locations within the same plant Storage Location 1A (Same Fund/Fund Center) Stock Types Storage Location 1B (Same Fund/Fund Center) Goods are transferred between Stock Types within the same plant* Unrestricted Quality Stock Types Unrestricted Quality *Note: This section is discussed in detail in the Stock Transport and Delivery Job Aid. Blocked Blocked *This cannot be requested through the Reservation process 101

102 Types of Goods Transfer Goods transfer occurs when transferring materials from one storage location to another co-located location (no shipment) and from one stock type to another stock type. Transfer of goods is only allowed in a plant between locations under the same Fund/Funds Center and Functional Area (the same budget owner). There are no financial implications involved. One-step Used when items are co-located in physical proximity and there is no lag time in delivery. Goods Transfer is immediate in the system. A reservation can be created to plan the transfer. The quantity of the stock transferred is posted immediately from the Unrestricted Stock of the issuing plant to the Unrestricted Stock of the receiving plant The transfer posting is valuated at the valuation price of the material in the issuing plant Two-step Used when there is not physical proximity and there is lag time in delivery. Two movements can be executed to transfer the goods: Movement from issuing location to Transfer Stock in receiving location Movement from Transfer Stock to Unrestricted when goods finally enter the receiving location 102

103 Scenario: Goods Transfer (One-step) Goods Transfer (One-step) EXAMPLE: A Requisitioner from UN Headquarters Medical Supplies Division is requesting medical equipment in the storage location located in medical section. The equipment is currently located in the Medical Storage Location in Central Warehouse (7500) and needs to be transferred to the Medical Supplies Storage Location (8500). Material (cardiotocograph), which is a serialized material Note: The following tasks will not be allowed: Moving stocks to a different Funds Center in the same plant Moving stocks to virtual locations (the user can never move inventory to a Transit Storage Location. The final inventory holding location must always be indicated during goods transfer) 103

104 Goods Transfer Steps The Requisitioner follows the previously detailed steps to check the Stock Requirement List for available goods. In this case the movement type used is 311 (one-step transfer between unrestricted stocks of the storage locations) from Storage Location 7500 to The Inventory Senior User checks the Stock Requirement List and decides to approve the transfer of goods from Storage Location 7500 (shown in the Reserved column) to 8500 (shown in the Rcpt reservation column). To perform a Goods Issue, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 4 for the detailed steps. 104

105 Goods Transfer Movement Types Plant 1 Storage Location 1 Storage Location 2 Unrestricted- Use Stock 311 Unrestricted- Use Stock Stock in Quality Inspection Stock in Quality Inspection Blocked Stock Blocked Stock Transfer Posting Stock to Stock Storage Location to Storage Location: One-step Procedure Note: No financial implications since the Storage Locations are linked to the same Funds Center. 105

106 Goods Transfer Movement Type/Exceptions (One-Step) To summarize, this table shows the different goods transfer movement type/exceptions: Description Financial Implication 311 Movement Type One Step Unrestricted 312 Movement Type Reversal 323 Movement Type One Step Quality to Quality Movement Type Movement Type Reversal One Step Blocked to Blocked No financial implications since locations are linked to the same Funds Center 326 Movement Type Reversal Movement Type Movement Type One Step Blocked to Unrestricted Reversal Note: The only movement that is available through the reservation is 311. The other movements cannot be processed with a reservation. 106

107 Two-Step Stock Transfer To create a Two-step Goods Transfer, the steps are the same as that for One-step Goods Transfer, except the user creates two transfer documents. Again, there are no financial implications since the Storage Locations are linked to the same Funds Center. Plant 1 Storage Location 1 Storage Location Stock in Transfer Unrestricted- Use Stock Unrestricted- Use Stock 107

108 Goods Transfer Movement Type/Exceptions (Two-Step) To summarize, this table shows the different goods transfer movement type/exceptions: Exceptions Description Financial Implication 313 Two Step Unrestricted to Transit 314 Reversal No financial implications since locations are linked to the same Funds Center 315 Two Step Transit to Unrestricted 316 Reversal To perform a Goods Issue, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 4 for the detailed steps. 108

109 Activity 1 Transaction Name: Goods Transfer against Reservation (One-step) Transaction Code: MIGO_TR Link to the uperform simulation: ?mode=EU&originalContext= Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 109

110 Activity 2 Transaction Name: Transfer Posting to Reservation with Approval Transaction Code: MIGO Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 110

111 Learning Checkpoint 1 The quantity of the stock moved with one step transfer is posted from the Unrestricted Stock of the issuing storage location to the Unrestricted Stock of the receiving storage location. Fill in the blank with the correct option. A. After 2 days B. Before 7 days C. Within 24 hours D. Immediately 111

112 Learning Checkpoint 1 The quantity of the stock moved with one step transfer is posted from the Unrestricted Stock of the issuing storage location to the Unrestricted Stock of the receiving storage location. Fill in the blank with the correct option. A. After 2 days B. Before 7 days C. Within 24 hours D. Immediately Option D is the correct answer. The quantity of the stock transferred is posted immediately from the Unrestricted Stock of the issuing storage location to the Unrestricted Stock of the receiving storage location 112

113 Module 4 Summary The key points covered in this module are listed below: Transfer of goods is only allowed in a plant between locations under the same Fund/Funds Center and Functional Area (the same budget owner) There are two scenarios in the Goods Transfer process: Transfer posting with one step and transfer posting with two steps 113

114 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 114

115 Module 5 Objectives After completing this module, you will be able to: Execute the Disposal process Execute the Return to Stock 115

116 Exception Processes In the context of Inventory Management there are several processes that happens on ad-hoc basis; examples would be disposal or returns to stock of used materials: Disposal Bring Used Materials Back to Inventory Disposal of installed equipment In case installed equipment is to be disposed, it may be considered to return it to stock for the period of time required for approving the disposal request and disposal mode (e.g. scrap, sales, or donation). In order to do so, please follow the instructions later in this module: Bringing used materials back to stock. 116

117 Disposal Process The key points are as follows: The Disposal process is frequently recorded in Umoja with a notification that is used to track the request for disposal and is subject to review and approval by, e.g., the Property Survey Board (PSB) This process is also meant to establish the more appropriate disposal method, e.g., sale, donation or disposal The selected Disposal method will be recorded in Umoja with different transactions If the Disposal method consists of scrapping items from stock, the process will take place in Umoja with Inventory Management transactions The Inventory Senior User will notify the Inventory User of the need to execute an approved disposal The notification number can be included in the Goods Issue header text and the signed copy of a printed and signed notification can be attached to the Goods Issue, if required 117

118 Disposal Process Goods in Inventory Below is a disposal process flow for goods in inventory. Note that the disposal notification number should be referenced in the follow on documents (e.g. Goods Issue). Property Survey Board Recommendation Method Cannibalize/ Trade-in/Scrap PM Process Deactivate equipment PM User Create write-off /disposal notification Sale/ Donation Steps are for Equipment Only Inventory User Warehouse transfer to disposal area Physically move goods to disposal area Goods issue to scrap The damaged items are transferred to blocked stock; in this way they will no longer appear as unrestricted available stock Sale and Donation Process 118

119 Disposal Process Sale and Donation Below is the Sale and Donation Disposal Process. It shows the integration across Umoja. PM User Inv. User Goods issue to outbound delivery Deactivate equipment Step is for Equipment Only Procurement Bidding in SRM (if sale) SD User Create sales order Generate pick slip/ outbound delivery Asset Acct. Dispose asset by sale / donation Step is for Fix. Asset Only Tasks performed in Umoja Tasks performed outside Umoja 119

120 Goods Issue to Outbound Delivery In the scenario where the inventory good is disposed of by sale or donation, the bidding process first needs to occur in SRM. Next, a sales order is created for the good and the picking list is automatically generated from the sales order. At the same time, if the equipment is an asset, it is disposed financially by the asset accountant. The Inventory User follows the standard process to perform a goods issue through the Outbound Delivery Monitor. To perform a Goods Issue, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 5 for the detailed steps. 120

121 Scrapping Process and Movement Types Material Stock Postings - 02 Material Document Material Stock Postings - 02 Total Stock: Total Value: Stock Price 100 pc 200 USD 2 USD Scrapping Stock Postings pc Total Stock: Total Value: Stock Price 90 pc 180 USD 2 USD Plant 1 Storage Location 1 Unrestricted- Use Stock Quality Inspection Stock Blocked Stock Postings Stock Account GI 20 Scrapping GI

122 Goods Issue Movement Types This table shows the different goods issue movement types and financial implications: Movement Type Description Financial Implication Z01 Z02 Goods Issue to Scrap from Unrestricted Stock Reversal of Scrap from Unrestricted Stock Goods Issue to Scrap from Quality Stock Reversal of Scrap from Quality Stock Goods Issue to Scrap from Blocked Stock Reversal of Scrap from Blocked Stock Goods Issue Reservation for Equipment Return to Inventory Reversal of GI Reservation for Equipment Return to Inventory The inventory quantity and value is reduced Non budget relevant postings The material and accounting documents created are reversed. The inventory quantity and value is reduced Non budget relevant postings The material and accounting documents created are reversed. The inventory quantity and value is reduced Non budget relevant postings The material and accounting documents created are reversed. No financial implication because the returned items have value zero The material and accounting documents created are reversed. 122

123 Disposal Process - Highlights 1 Enter MIGO in the Command field 2 Select A07 Goods Issue and R10 Other from the two dropdown lists that are displayed 3 Enter 551 in the Movement Type field (withdrawal for scrapping) 4 Click the Enter icon 5 Enter the approved notification number in the Goods Issue to Scrap Header 6 Under the Material tab, enter the required material number 7 Enter the required value in the Valuation Type field 8 Under the Quantity tab, enter the quantity to be disposed in the Quantity field

124 Disposal Process - Highlights 1 Enter the relevant values under the Where tab. The Where tab shows the movement type to be used and the plant and storage location where the material is going to be scrapped from 2 Enter the required value in the Reason for Movement field 3 Enter the Cost Center field 4 Enter the Fund field 2 1 Note: The Fund and Cost Center are normally those of the owner of the inventory that is being scrapped. If the material is serialized and/or batch managed, additional tabs could be available. The values in these tabs have to be maintained: batch number is to be specified in the Batch tab for batch managed materials; serial numbers are to be specified in the Serial Numbers tab for serialised materials

125 Bringing Equipment Back to Inventory Business Process Context This process is relevant for the return to stock of materials that have been used; this may happen on an exception basis (e.g. a staff member returns a printer due to reassignment to a different duty station) or on a more regular basis (e.g. satellite phones that are kept in stock to be assigned to staff members when they are on mission and returned to stock when the mission is terminated). Depending on the scenario, the process can be initiated with a Notification in Umoja, raised by the office where the equipment is installed. The notification number can be then recorded in the subsequent documents as a reference. To perform a Goods Issue, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 5 for the detailed steps. 125

126 Bringing Equipment Back to Inventory Split Valuation Concept: In Umoja some specific types of material masters (Supplies and Equipment, Spare Parts) have been designed to be Split Valuated: these materials are valued either at the Moving Average Price (valuation type NEW_SPARES or NEW_SUPP ) or at Value Zero (valuation type OLD_SPARES or OLD_SUPP) When an item is returned to stock, the valuation type to be specified is always = OLD_SPARED or OLD_SUPP In this way the same material can have two different values in inventory: the new ones have the moving average price and the old (used) ones have value zero 126

127 Bringing Equipment Back to Inventory Below is a process flow for return of used items in inventory. Note that the disposal notification number should be referenced in the follow on documents (e.g. Reservation). Inventory Senior User Reviews / Approve Reservation Inventory User Creates Reservation Execute approved Reservation (MIGO) The valuation type OLD is to be specified in the Reservation The Equipment is returned to Inventory, the value is = 0 because it is used. Requesting Office PM User Create Notf. For Equipment Return The Notification is subject to the required approval process in the requesting office 127

128 Bringing Equipment Back to Inventory - Highlights Key information in Umoja T-code ZMMMB21 - Create Reservation for return of used materials to stock. Specific to Returns Movement Type = Z01 GR used Goods Batch (Valuation Type) = OLD_SUPP Text = Relevant info, such as the Notification number Other required data Quantity to be returned Material to be returned Date of return Fund Cost Center Note: The reservation is approved by the Inventory Senior User and the Inventory User can post the goods movement to return the item in inventory with reference to the reservation. 128

129 Inventory Counting Process The Inventory User and Inventory User are also engaged in the Inventory Counting process. As part of this process, goods movements are used to ensure that the inventory count in the system matches with the physical count. This process is discussed in the SC351 Umoja Inventory Counting and Controlling course. 129

130 Activity 1 Transaction Name: Transfer posting from Unrestricted to Blocked stock Transaction Code: MIGO Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 130

131 Activity 2 Transaction Name: Execute Goods Issue to Scrap Transaction Code: MIGO Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 131

132 Activity 3 Transaction Name: Create Manual Reservation to return used material to stock Transaction Code: ZMMMB21 Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 132

133 Activity 4 Transaction Name: Approve Reservation Transaction Code: MB22 Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 133

134 Activity 5 Transaction Name: Receive used equipment back to stock Transaction Code: MIGO Link to the uperform simulation: ?mode=EU Refer the SC339 Umoja Local Inventory Goods Movement User Guide for more detailed transactional steps. 134

135 Learning Checkpoint 1 In which ways can inventory be disposed?. Fill in the blank with the correct option. A. Sold B. Donated C. Disposed D. All of the above 135

136 Learning Checkpoint 1 In which ways can inventory be disposed? Fill in the blank with the correct option. A. Sold B. Donated C. Disposed D. All of the above Option D is the correct answer. 136

137 Module 5 Summary The key points covered in this module are listed below: There are two Exception processes in Local Inventory Goods Movement: Scrap Material and Bring Equipment Back to Inventory To dispose of equipment that has already been installed, the equipment can be returned to stock until is disposed 137

138 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 138

139 Module 6 Objectives After completing this module, you will be able to: Generate the reports required to check Stock Availability Generate the Stock Overview Report Generate the Reservation List Report 139

140 Reports The transactions help to perform the following processes: Stock Availability: The Requisitioner or Inventory users run the Stock Requirement List to check availability of the goods. Use T-code ZLE_STCK_OVRVW (for a summary) and MD04 for detailed list of inbound and outbound documents Generate the Stock Overview Report: If a user executes the Stock Overview Report using the T-code MMBE, he or she will see the amount of stock in a plant and storage location. The report will show unrestricted stock, reserved stock, blocked stock, etc. Generate the Reservation List Report. Use T-code MB25 To perform a Goods Issue, please refer to the SC339 Umoja Local Inventory Goods Movement User Guide, module 6 for the detailed steps. 140

141 Stock Availability Summary Report Highlights The Requestor runs the Stock Availability Summary Report using the T-Code ZLE_STCK_OVRVW and checks the availability of stock for the required material at the required date. The report can be executed by Inventory User and Inventory Senior User for the same purpose. 1 Populate the following fields on the Selection Screen: Material: multiple materials can be selected. Plant: the plant where the user wants to check whether the requested material is available; multiple plants can be selected. Storage Location: the storage location where the user wants to check whether the requested material is available; multiple storage locations can be selected. Requirement date: this is the date by when the requested material is to be available. 2 Click the Execute icon to run the report

142 Stock Availability Summary Report Highlights Output list The list displays the stock available for the selected material / plant / storage location / requirement date in the last column Available to Promise. The other columns indicate: 3 Total On Hand: the stock on hand at time when the report is executed including all stock types Unrestricted Use: the unrestricted stock level at time when the report is executed Incoming (Requirement Date): the expected receipts by the requirement date Outgoing (Total): the expected issues by the requirement date 3 142

143 Stock Requirement List Highlights The Inventory Senior User runs the Stock Requirement List using the T-Code MD04 and monitors the inbound movements and outbound movements to verify in details the availability of inventory. The report is part of the Materials Requirement Planning (MRP) system functionality and it is used to plan the replenishment of stock. 1 Populate the following fields on the Selection Screen: Material: Only one material at the time can be selected Plant: The plant where the user wants to check whether the requested material is available; only one plant at the time can be selected 2 Click the Execute icon to run the report 1 Note: The Stock Requirement List Report only displays information for one material. 143

144 Stock Requirement List Highlights Output List: The report indicates the total of stock available for a required material and plant at the time when the report is executed in the column Available Quantity. 3 The other columns indicate: 3 Date: this is the expected delivery date (inbound movements) or issue date (outbound movements) MRP element: this column indicates the type of inbound or outbound movement (e.g. Purchase Order, Inbound Delivery, etc.) MRP element data: this column indicates the number / item number of inbound or outbound movement (e.g. Purchase Order, Inbound Delivery, etc.) Receipt/Reqmt: this column indicates the quantity of inbound or outbound movement (e.g. Purchase Order, Inbound Delivery, etc.) Suppl./Receiving Plant: this is the relevant plant in case of plant to plant transfer movements Iss./Rec. Stor. Loc.: this is the storage location from where the stock is issued (outbound movements) Storage Location: this is the storage location where the stock is / is received 144

145 Stock Overview Report Highlights The user can execute this report using T-Code MMBE to display the overview of current stock level at time of execution for one material. The stock level is displayed in a hierarchical modality, from Company Code through to the plant level down to the selected storage location and batch. The report displays all stock types (e.g. Unrestricted, Blocked, etc.). From the report is possible to display the relevant inbound and outbound transactions. 1 Populate the following fields on the Selection Screen: Material: Only one material at the time can be selected The Plant where the user wants to check the stock levels; multiple plants can be selected The Storage Location where the user wants to check the stock levels; multiple storage locations can be selected Batch: If the material is handled in batches, the user can select one or multiple batches of the material 2 Click the Execute icon to run the report

146 Stock Overview Report Highlights Output List The report indicates the total of stock available for selected material and plant at the time when the report is executed in the column Unrestricted Use. The other columns indicate the stock levels for the relevant stock types (Quality, Blocked, etc.) as well as the stock that has been reserved through reservation, has been ordered, etc. The user can display the detailed documents (e.g. the reservations) by positioning the cursor at the plant level and selecting the menu entry Environment Reservations. 146

147 Reservations List Highlights The Reservation List Report using the T-Code MB25 can be used by the Inventory Senior User to look at all open reservations / reservations needing approval, or by the Requisitioner, for example, to check the status of the reservations that have been submitted to request inventory. The selection screen is subdivided in various sections: Reservation Data Section The Reservation material; multiple materials can be selected The Reservation plant; multiple plants can be selected The Reservation Requirement date, that is the date by when the requested material is to be available; multiple dates can be selected The User Name (Umoja User Id) of the user who created the Reservation The Goods Recipient indicated in the Reservation Account Assignment Section: The user can select specific account assignment data indicated in the reservation, such as Cost Center, WBS elements, etc. to refine the list of reservations 147

148 Reservations List Highlights Scope of the List section Status of the reservations: Open Reservations: If checked, only reservations which haven t yet been completely issued (or received) are displayed Cancellable Reservations: If checked, the reservations for which the related goods movement can be reversed are selected (not relevant for selecting open reservations) Goods Movement Not Possible: This is the indicator set by the Inventory Senior User to approve the reservation. If checked, only the reservation which do not have this indicator ticked are selected Issues: If checked, only reservations related to issuance of goods are selected Receipts: If checked, only reservations related to receipts of goods are selected 148

149 Reservations List Highlights Output List Reservation: This is the reservation number Item: This is the Reservation item number M: This is the indicator of Goods Movements Possible (if = X the Reservation is approved and the movement is possible) D: Flag indicating that the Reservation item is deleted User Name: User that created the Reservation Goods Recipient: Goods Recipient indicated in the Reservation Requirement Date: Requirement Date indicated in the Reservation Mvt: Code of the movement type indicated in the Reservation Movement Type Text: description of the movement type indicated in the reservation Note: Flag M is relevant only for manually created Reservations; automatically created Reservations cannot be approved. 149

150 Material Document Report Using the T-code MB51, the user can generate a list of the material documents (Goods Receipts) that have been posted by material or multiple materials. From the output list, the user can search for and display a particular material document. The user shall indicate: 1 The requested Material; multiple materials can be selected 2 The Storage Location where the user wants to check whether the requested material is available; multiple storage locations can be selected 3 The Vendor; multiple vendors can be selected 4 The Movement Type; multiple movement types can be selected 5 The Posting Date, that is the date when the requested material is to be available; multiple dates can be selected 6 Click the Execute icon to run the report

151 Material Document Report Output list Note: On the report that appears, the user can view the material document generated for each material. 151

152 Warehouse Stock Reports The Warehouse Stock report is generated using T-code MB52. It allows the user to view stock types by Storage, Location and Plant Populate the following fields on the Selection Screen: - The requested Material; multiple materials can be selected - The Plant where the user wants to check whether the requested material is available; multiple plants can be selected 3 Click the Execute icon 152

153 Warehouse Stock Reports Output list The list displays the Warehouse Stocks of Material. 153

154 Learning Checkpoint 1 Which of the following T-codes is used to generate Reservation List? Select the correct option. A. MIGO_TR B. MIGO C. MMBE D. MB25 154

155 Learning Checkpoint 1 Which of the following T-codes is used to generate Reservation List? Select the correct option. A. MIGO_TR B. MIGO C. MMBE D. MB25 Option C is the correct answer. The T-code MB25 is used to generate Reservation List. 155

156 Module 6 Summary The key points covered in this module are listed below: The T-code ZLE_STCK_OVRVW is used to generate the Stock Availability Summary report The T-code MD04 is used to generate the detailed Stock Requirement List The T-code MMBE is used to generate Stock Overview Report The T-code MB25 is used to generate Reservation List Report The T-code MB51 is used to generate Material Document Report The T-code MB52 is used to generated Warehouse Stock Report 156

157 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 157

158 Course Summary The key points covered in this course are listed below: Local Inventory Goods Movement involves the issue or transfer of inventory without shipment The Stock Requirement List highlights the goods available in a storage location The Reservation Management process is used to plan replenishment based on the upcoming requirements The transaction to perform Goods Movements: MIGO There are two scenarios in the Goods Transfer process: Transfer posting with one step and transfer posting with two steps There are two Exception processes in Local Inventory Goods Movement: Disposal and Bring Used Material Back to Inventory There are four reports that can be listed in the course 158

159 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 159

160 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 160

161 Agenda Course Introduction Module 1: Local Inventory Goods Movement Process Overview Module 2: Reservation Management Process Module 3: Goods Issue Process Module 4: Goods Transfer Process Module 5: Exception Processes Module 6: Reports Course Summary Course Assessment Course Survey 161

162 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course survey 5. Click the Submit button once you have completed the course survey 162

163 Congratulations! You have successfully completed the Umoja Local Inventory Goods Movement course. 163