Issuing Material From Inventory—Exercises

Basic Data Setup

Inventory Location

Purpose: The purpose of this exercise is to show you how to create an inventory location for the receipt of material into inventory. Material in both the standard and project inventory will be held in this inventory location.

Windows:
Inventory Locations

1. Create the following new inventory location at your site XX01, where XX is your initials.

General exercise for Entering Inventory Location

Required Data

Registering Miscellaneous Demand to Activities

Purpose: The purpose of this exercise is to familiarize you with the data that must be in place before you can perform the exercises below.

1. For activities in your subproject structure, register miscellaneous demand for inventory parts.
2. Register demand both for items that are to be issued from the project inventory (not standard planned) and for items that will be issued from standard inventory (standard planned).
3. Save your changes.

General exercise for Registering Project Demand

Releasing Activities

Purpose: The purpose of this exercise is to familiarize you with the data that must be in place before you can perform the exercises below.

1. Release the activities which have connected miscellaneous demand and for which you want to issue material from inventory.

General exercise for Executing Activities

Purchasing Project Miscellaneous Demand

Purpose: The purpose of this exercise is to familiarize you with the data that must be in place before you can perform the exercises below.

1. For one of your registered miscellaneous demands for inventory parts, create a purchase requisition.
2. Handle this purchase requisition and resulting purchase order.
3. Receive the parts into your project inventory, using your inventory location L1.

General exercise for Purchasing Project Miscellaneous Demand

Receiving Inventory Parts

Purpose: The purpose of this exercise is to familiarize you with the data that must be in place before you can perform the exercises below.

1. Receive inventory parts into your site's standard inventory, using your inventory location L1.

General exercise for Receiving Inventory Parts

Main Exercise

Purpose: The purpose of these exercises is to show you how to issue material from both standard and project inventory to your project.

Windows:
Project Navigator/Demand/Misc.Part
Project Navigator/Activity

Issuing Project Material

1. Open the Project Navigator window. Query for your project.
2. In the Navigator, select an activity with connected miscellaneous demand for which you intend to issue from the project inventory.
3. Click the Demand tab and then click the Misc. Parts tab.
4. Select the desired miscellaneous demand for an inventory part. Check that the Std Planned Item check box is cleared, so that the items will be taken from the project inventory.
5. You can optionally reserve the items. Right-click and click Reserve or Reserve manually.
6. If reserving manually, the Manual Reservation dialog box will appear. On a row with available items, enter the desired quantity to reserve in the Reserve Qty field. Click OK.
7. In the Misc. Parts tab, verify that the value in the Reserved Quantity field is correct.
8. Select the Connections tab. For your miscellaneous demand object, note that the value in the Committed  column is equal to zero.

Note: It is allowed to issue material that has been acquired via another activity than the one to which the demand object is connected, but the activity must be within the same project. In both the Manual Reservation and Issue From Inventory dialog boxes, all available items acquired to one of the project activities will be shown. The value in the Activity Sequence column shows to which activity these items were acquired into the project inventory.

9. Select your miscellaneous demand, right-click and click Issue or Issue manually. If issuing manually, the Issue From Inventory dialog box will appear.
10. In the Quantity Left field, observe the number of items that remains to be issued.
11. On a row with available items, enter the desired quantity to issue in the Issue Quantity field. Click OK.
12. Read the information message that informs you that the parts have been successfully issued. Click OK.

Note: If you are using an executable that contains IFS/Project Reporting, the Create Project Transaction window will appear. Enter a valid report code that has report code type Material and click OK to create a project transaction for this issue. You can also choose to create a project transaction for this issue at a later time. Select the desired miscellaneous demand that you have issued to your project, right-click and then click Create Project Transaction.

13. In the Misc. Parts tab, verify that the values in the Issued Quantity and Issued Date fields are correct.
14. Select the Connections tab. For your miscellaneous demand object, note that the values in the Committed and Used columns are equal to zero. (Used cost is only reported when receiving into project inventory, not when issuing.)

Note: The progress will not be reported for the miscellaneous demand line until the related Purchase Order is in the received status. Once it is in the received state the progress is calculated by dividing the received quantity by the required quantity and then taking the percentage value of it.

Issuing Standard Material

1. Open the Project Navigator window. Query for your project.
2. In the Navigator, select an activity with connected miscellaneous demand for which you intend to issue from standard inventory.
3. Click the Demand tab and then click the Misc. Parts tab.
4. Select the desired miscellaneous demand for an inventory part. Check that the Std Planned Item check box is selected, so that the items will be taken from standard inventory.
5. You can optionally reserve the items, according to steps 5-7 in the above exercise.
6. Select the Connections tab. For your miscellaneous demand object, note the value in the Committed column. This value is based on the current part cost for the reserved items.

Note: In both the Manual Reservation and Issue From Inventory dialog boxes, the available quantity in standard inventory will be shown. The value in the Activity Sequence column will be 0, indicating that the items are found in standard inventory.

7. Issue the items, according to steps 9-13 in the above exercise.
8. Select the Connections tab. For your miscellaneous demand object, note the values in the Committed and Used columns. The value in the Used column is based on the inventory transaction value for the issue of this part. The value in the Committed column has decreased, and reflects the committed cost for the remaining reserved items.
9. Verify that these values update the correct cost elements, based on how you set up the posting control rule M62 and cost element mappings.
10. On the Cost tab, verify that the values in the Committed and Used columns have been updated correctly from the connected objects.

Notes:

The progress will not be reported for the miscellaneous demand line until the related Purchase Order is in the received status. Once it is in the received state the progress is calculated by dividing the received quantity by the required quantity and then taking the percentage value of it.

By issuing material, you have created an inventory transaction. When the corresponding inventory vouchers are updated to IFS/General Ledger, you will be able to retrieve actual costs.

For an example of an activity where standard material has been issued, you can refer to the project P101 and the activity 20010.