Handling Distribution Order—Exercises

Basic Data Setup

Entering User Coordinator Group Information

Purpose: The purpose of this exercise is to enter a prefix and number series for the distribution orders.

Windows:
Sites per User
Coordinator Group

1. Open the Sites per User window.
2. Query for your user ID.
3. Select the default coordinator ID and the default buyer ID from the List of Values.
4. Save the changes.
5. On the Coordinator Group tab, enter the distribution order prefix and distribution order number for the coordinator group connected to your user coordinator.
6. Save the changes.

Enter Site and Inventory Locations

Purpose: The purpose of this exercise is to enter a demand site and a supply site. You should also enter inventory locations on both sites.

Windows:
Site
Sites per User
Inventory Locations

1. Open the Site window.
2. Create XXP as a new supply site and XXD as a new demand site. (Replace XX with your initials.)
3. Enter a picking lead time for each site.
4. Connect the delivery addresses to your sites.
5. Click the Sites per User tab and connect the two sites to your user ID.
6. In the Inventory Locations window, query for the sites XXP and XXD.
7. Enter a picking location (XX-PP1) in the Inventory Locations window on sites XXP and XXD.

General exercise for Enter Sites

Internal Supplier

Purpose: The purpose of this exercise is to enter the internal supplier record.

Windows:
Site/Sales and Procurement

1. Open the Site window.
2. Query for the site you would want to define as internal supplier
3. On the Sales and Procurement tab, right-click and select Create Internal Supplier.
4. Select a template supplier from the List of Values.
5. Enter the new supplier ID and name.
6. Optionally, you can also enter the association number for the supplier.
7. The site's delivery address will automatically be indicated. You can change the address, if desired
8. Click OK to save the entry.

General exercise for Supplier

Internal Customer

Purpose: The purpose of this exercise is to enter the internal customer record.

Windows:
Site/Sales and Procurement

1. Open the Site window.
2. Query for the site you would want to define as internal customer.
3. On the Sales and Procurement tab, right-click and select Create Internal Customer.
4. Select a template customer from the List of Values.
5. Enter the new customer ID and name
6. Optionally, you can also enter the association number and customer reference and click Next.
7. The site's delivery address will automatically be indicated. You can change the address if desired and click Next.
8. Enter the document address for the customer and click Next.
9. Enter miscellaneous information such as payment terms, delivery terms, ship-via, region, district etc. for the customer
10. Click Finish to save the entry.

General exercise for Enter Customer

Purchased Inventory Part

Purpose: The purpose of this exercise is to create the inventory part on both the demand site and supply site.

Windows:
Inventory Part

1. Enter an inventory part with the part number XX-62-117, replacing XX with your initials, and the description Ball Bearing on sites XXD and XXP.
2. Enter your user ID as the planner.
3. Use PCS as the unit of measure.
4. Use 100 USD as the estimated material cost.
5. Enter default locations (arrival, quality assurance, and picking location) for the inventory part.

General exercise for Purchased Inventory Part

Required Data

Entering Distribution Orders

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below. When you have entered the required data, you should have one distribution order available for manual handling, and one distribution order available for as much automatic handling as possible.

Windows:
Distribution Order

1. Open the Distribution Order window.
2. Create a new record (F5) for the distribution order.
3. Enter ALAIN as the requisitioner.
4. Enter XXD as the demand site, and XXP as the supply site (replacing XX with your initials).
5. Enter part number XX-62-117 (replacing XX with your initials), and a quantity of 10.
6. Enter a wanted delivery date two weeks ahead from today's date.
7. Enter NO as the order type.
8. Save (F12). 
9. Duplicate the created distribution order (F6).
10. Enter QO as the order type.
11. Enter a proposed to location. Use an inventory location of the Picking type.
12. Enable automatic receipt by selecting the Automatic Receipt check box.
13. Save (F12).

General exercise for Entering Distribution Orders.

Receive Inventory Parts

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below. When you have entered the required data, you should have parts received in stock, at the XXP supply site .

Windows:
Receive Inventory Part

1. Open the Receive Inventory Part window.
2. Query for the part number XX-62-117 on the site XXP (replacing XX with your initials).
3. Receive 1000 pieces into a picking location.
4. Save.

Main Exercise

Purpose: The purpose of this lesson is to learn how to handle distribution orders. The two extremes of handling distribution orders are done in the exercises. First, the complete process is handled manually for one distribution order only. Second, much automation as possible is used to process a distribution order. 
The normal use case is probably somewhere in between these two extremes. For example,

• An automatic distribution order release is scheduled as a background job to be run every night when valid distribution orders are released.
• Reservation and pick lists are also handled as a background job. This is handled by the Create Customer Order Reservations feature, and is based on the order type. (This operation is run every night.)
• The reporting of picking is typically handled manually after the picking has been performed.
• When the reporting of picking is done, the order is delivered instantly with the delivery note printed. This is handled by the order type.
• Arrival registration is done on the demand site when the parts arrive. If the parts are instantly received into a picking location, further handling will not be needed and the distribution order will be closed. If the parts should be inspected, unpacked, or further handled at another time, the distribution order will be in the Arrived status until all the parts are received into the picking location.

Windows:
Distribution Order
Distribution Orders
Automatic Distribution Order Release
Purchase Order Authorization Rule
Purchase Order Authorization
Customer
Handle Blocked Customer Orders

Process a Distribution Order Manually

1. Open the Distribution Order window.
2. Query for your first distribution order.
3. Release the distribution order by right-clicking and then clicking Release. Select the Create New option in the Distribution Order Release dialog box.
4. Refresh the distribution order. 
   The order will receive the Released status after the background job has been performed. 
5. Reserve the distribution order by right-clicking and then clicking Reserve. In the Reserve Customer Order Lines window, right-click and then click Reserve. Enable both parameters and click OK in the Parameters for Reservation dialog box.
6. Refresh the distribution order. 
   The order will receive the Reserved status after the background job has been performed.
7. Create a pick list by right-clicking and then clicking Create Pick List.
8. Refresh the distribution order.
9. When picking is done, report it by right-clicking and then clicking Report Picking. In the Report Picking of  Customer Orders window, right-click and then click Report Picking.
10. Refresh the distribution order. 
    The order will receive the Picked status after the background job has been performed. 
11. Deliver the distribution order by right-clicking and then clicking Deliver.
12. Refresh the distribution order. 
    The order will receive the In Transit status after the background job has been performed. 
13. Receive all the parts into a picking location on the demand site. If the supply and demand sites belong to the same company, right-click and then click Receive from Internal Order Transit. If the supply and demand sites belong to different companies, right-click and then click Receive Order. 
14. After receiving the full quantity, refresh the distribution order. 
    The distribution order will receive the Closed status.

Process a Distribution Order Automatically

1. In the Distribution Orders window, query for the distribution order created earlier with the order type QO. Note that it has the Planned status.
2. In the Automatic Distribution Order Release window, enter the selection criteria (replacing XX with your initials): 

3. Click OK.
4. Refresh the distribution order. 

Note: The order will take the Closed status after the background job has been performed. The automatic distribution order release feature releases the order. The order type (which is set up for non-manual handling) reserves, picks, and delivers the order. The automatic receipt feature receives the order into the proposed location.

Manage Stopped Distribution Orders

1. To stop a distribution order, additional setup is required:
   In the Purchase Order Authorization Rule window, create a rule for your internal supplier. Connect it to a template for which you are the only authorizer. Release the rule. 
2. In the Customer window, query for your internal customer. On the Credit Info tab, enter a credit limit of 10.
3. Enter a new distribution order, and release it using the Create New option.

Note: The order will receive the Stopped status. The reason it was stopped will be available on the Distribution Order/History tab. In this case, purchase authorization is required to get the distribution order released.

4. In the Purchase Order Authorization window, query for the order number and authorize the order.
5. Release the distribution order again. 

Note: If the customer credit limit has not been exceeded, the distribution order will be released. However, the order has been stopped, and the reason is given on the Distribution Order/History tab.

6. In the Handle Blocked Customer Orders window, query for the order number, and release the order. The distribution order will be released and will continue in the flow as normal.