## Working with Issues, Material Movement, and Kanbans

This chapter provides overviews of issues, material movement, and kanbans and inventory issue and discusses how to:

- Issue material by preflushing

- Issue material manually

- Record component scrap

### Understanding Issues, Material Movement, and Kanbans

Regardless of whether you use work orders or rate schedules for an item that you produce, you must send the required materials to the shop floor for production. You must also deduct the quantities that are issued to the shop floor from inventory through an issue transaction. Along with issue transactions, you can use a visual system such as: kanban processing to alleviate paperwork.

The JD Edwards EnterpriseOne Shop Floor Management and JD Edwards EnterpriseOne Manufacturing Accounting systems use issue transactions to determine the actual quantities of materials that are used in the production process according to the parts list for the work order or rate schedule.

This table identifies integration features with other JD Edwards EnterpriseOne systems:

System | Integration features
JD Edwards EnterpriseOne Inventory Management | The JD Edwards EnterpriseOne Inventory Management system enables you to track materials between inventory or storage locations and the shop floor. You can manage inventory issues and commitments, complete orders, and track order quantities throughout the production process. The system enables you to issue material in two different units of measure, if dual units of measure are defined for the item in the Item Master program (P4101). When the item that you are issuing is a lot-controlled item, and the effective date of the lot is greater than the current date, the system issues a warning.
JD Edwards EnterpriseOne Warehouse Management | The JD Edwards EnterpriseOne Warehouse Management system enables you to originate picking requests through the JD Edwards EnterpriseOne Manufacturing systems, which further enhances the automated method of tracking inventory movement within a warehouse.

See Also

Processing Kanban Transactions by Item

### Understanding Inventory Issue

You do not have to generate an issue transaction at the same time that inventory is physically moved. The JD Edwards EnterpriseOne Shop Floor Management system enables you to select the point in the production process during which you generate issue transactions. In other words, you can select when you want the inventory records to reflect the issue of materials to the work order or rate schedule.

For example, for a short production cycle, you might want to simultaneously deduct the issued inventory and receive the completed product into inventory when you report full completions for the work order or rate schedule. For longer production cycles, you might need to generate issue transactions at various operations within the routing instructions to minimize the discrepancies between materials that are actually on the shop floor and materials that the JD Edwards EnterpriseOne Inventory Management system lists as being on the shop floor.

You can select any of these methods to issue inventory:

Method | Description
Manual issues | The system deducts materials from inventory when you enter the issue transactions on the Inventory Issue Revisions form.
Preflush | The system automatically deducts materials from inventory when you run the Order Processing program (R31410).
Backflush | The system deducts materials from inventory when you report items on the work order or rate schedule as complete. Backflush can occur when you report partial completions throughout the production process or when you report full completions at the last operation of the routing instructions. When the parts list includes lot-controlled items, the system first issues the parts list lines with lot numbers because those quantities are already hard-committed. When these quantities are not sufficient, the system searches for additional lots at the work center location and issues material from those lots based on the commitment method.
Super Backflush | The system automatically deducts materials from inventory during operations that are defined as pay points throughout the routing instructions. Super backflush enables you to simultaneously backflush materials and labor hours and to report items as complete.

Some issue methods enable you to issue materials without displaying the Inventory Issue Revisions form. Other methods display the issue transaction for review before the system records it.

You can perform partial issues by setting up the work order or rate schedule and issuing a backflush daily. For example, if the rate for the week is 10,000, and the daily backflush is 2,000, you can perform a partial issue of 2,000 for five days. On the fifth day, the rate schedule is completed.

The default transaction date for issue transactions is the current system date. You can enter a different date. If you issue too much of one item, the system displays a warning message. You can either adjust the issue quantity or accept the issue.

Inventory is issued from the location at which it is committed. You can change the commitment location for an item. The Inventory Issues program (P31113) correctly relieves these commitments. If you are issuing a grade- or potency-controlled item from a lot, and the lot grade or potency rating is not within the desired range, the system displays a warning message.

When you issue inventory, the system performs these updates:

- Relieves inventory

- Updates the Item Location File table (F41021)

- Writes records to the Item Ledger File table (F4111)

- Updates the Production Cost table (F3102)

- Updates unaccounted units in the Work Order Parts List table (F3111)

- Writes general ledger transaction in the Account Ledger table (F0911)

You can issue materials without recording a completion to a work order. You can also record component quantities that are scrapped and the reason for the scrap.

Note. If you have repeated items in the bill of material, verify that the operation sequence numbers for those lines are unique for the bill of material.
If you are using the JD Edwards EnterpriseOne Warehouse Management system and issuing materials to a work order, the system does not issue any part that has a status of In Warehouse. Before the system can issue the part, you need to update its status to Out of Warehouse by pick confirmation through a pick list. A pick list is a document that specifies to warehouse personnel what inventory to pick up per work order and where the inventory is located. The system generates the pick list when you run the Order Processing program.

See Also

Inventory Issue Transactions

Confirming Pick Suggestions Interactively

### Issuing Material by Preflushing

This section provides an overview of preflushing and discusses how to run the Order Processing program.

#### Understanding Preflushing

Preflushing is the act of using the Order Processing program (R31410) to enter issue transactions for all material that is required for a work order when you process the work order. Materials include those that are not required until the last operation in the routing instructions, which could occur weeks or months in the future. These items are issued at the start date of the work order when you use the Order Processing program.

Important! You should not use the preflushing method unless the manufacturing cycle time is short enough to ensure that materials are physically moved to the shop floor within the same day that the issue transaction is recorded. If the cycle time is longer than a day, a discrepancy appears in the inventory records because the materials have been deducted from inventory records, but not physically removed from inventory stock.

You can set a processing option to issue only preflush items. If you leave this processing option blank, the system preflushes any item that is associated with the work order, regardless of the issue code of the item.

#### Prerequisite

Set the issue type code on the parts list.

#### Running the Order Processing Program

From the Daily Order Preparation - Discrete menu (G3111), select Order Processing.

### Issuing Material Manually

This section provides an overview of the manual issue of material and discusses how to:

- Set processing options for the Work Order Inventory Issues program (P31113).

- Issue material from a single location.

- Issue material from multiple locations.

#### Understanding the Manual Issue of Material

You can use the Inventory Issues program (P31113) to manually issue material that is associated with a work order. When you issue material, you can select to have the system automatically adjust the issue quantity by the parent item's shrink or yield factor. You can also use this program to change the commitments that the system recorded. When you change commitments, the system displays an error message if the quantities do not add up to the total quantity that is required. It also adjusts the available balance for any location in which you changed the quantity committed.

If you are working with a large parts list and do not need to issue all component quantities at the same time, the system provides you with filter fields to display only those component records for which you want to perform issues. You can filter the parts list by operation sequence, requested dates, component item numbers, and component line numbers. If you issue items that have a secondary unit of measure, the issue line must state the issue quantity in both the primary and secondary unit of measure.

If you did not assign serial numbers to any of the assemblies on the work order at order entry, you can assign them during the inventory issue process.

You can access the Select Multiple Locations program (P42053) from the Inventory Issue Revision form if you need to issue material from locations that are different from the locations that appear on the Inventory Issue Revisions form.

#### Forms Used to Issue Material Manually

Form Name | FormID | Navigation | Usage
Inventory Issue Revisions | W31113A | Daily Order Preparation - Discrete (G3111), Inventory Issues. Locate a branch/plant and work order on the Work With Work Order Inventory Issue form, select the work order and click Select. | Issue material from a single location.
Select Multiple Locations | W42053B | Locate and select an item on the Inventory Issue Revisions form, and then select Multi-Location from the Row menu. | Issue material from multiple locations.

#### Setting Processing Options for the Work Order Inventory Issues Program (P31113)

Processing options enable you to specify the default processing for programs and reports.

Edits

These processing options control default values for the Inventory Issues program-- for example, the default document type for inventory issues-- as well as the status beyond which the system cannot issue inventory and the lot hold codes that still enable you to issue inventory to a lot. You can also determine whether an error message is displayed when an issue causes the on-hand quantity to become negative.

1. Document Type | Specify the default document type that the system enters when issuing inventory. Enter a value from user-defined code (UDC) table 00/DT (Document Type) that identifies the origin and purpose of the document.
2. Work Order Status Code | Specify the default status code for the issued material on the work order header. Enter a value from UDC 00/SS (Work Order Status) that identifies the status of the work order that the system uses when a material issue has been performed. If you leave this field blank, the system does not update the work order header status code.
3. Material Status Code | Specify the default material status code that the system uses on the work order header. Enter a value from UDC 31/MS (Material Status) that identifies the status of the material to use when the system issues material. If you leave this field blank, the system does not enter a material status code.
4. Work Order Status Code Limit | Specify the default status code that the system assigns to the work order header, at or beyond which the system cannot issue material.
5. Negative Quantity on Hand | Specify whether the system displays an error message when the material issued sets the on-hand quantity to a negative amount. Values are: 1: Displays an error message for negative on-hand quantities. Blank: Does not display an error message for negative on-hand quantities.
6. Item Sales History | Specify whether the system updates the Item Sales History table (F4115) when you issue material. Values are: 1: Updates. Blank: Does not update.
7. Unplanned Issues | Specify whether the system processes unplanned issues. Values are: 1: Processes. Blank: Does not process.
8. Purchase Order Document Type | Specify the default document type of the purchase order associated with the simultaneous issue and receipt of material. Enter a value from UDC 00/DT (Document Type) that identifies the document type that the system uses when searching for an open purchase order. If you leave this processing option blank, the system uses OP as the document type.
9. Enter Allowed Lot Status Group to validate | Specify the lot group. The lot group is the name of a user-defined list of allowed non-blank lot status codes. Entering a lot group name enables this application to process lots whose lot status code is defined within the specified lot group name.

Display

These processing options control the display of values in the Inventory Issue program. For example, you can specify that the system only display components with valid issue type codes, and that the issue quantity is displayed with shrink or yield already applied.

1. Issue Type Code | Specify whether the system displays all components or only components with a valid issue type code. Values are: 1: Displays only components with valid issue type codes. Blank: Displays components of all issue type codes.
2. Lot Number | Specify whether the system protects the Lot Number field from entry. Values are: 1: Does not allow you to enter a value in the Lot Number field. Blank: Allows you to enter a value in the Lot Number field.
3. Issue Material For | Specify whether the system enters the recommended issued quantity for all components with a valid issue type code. The system uses the value from the Issue Material For field on the Work With Work Order Inventory Issue form. The system issues only items with an issue quantity. Values are: 1: Automatically enters the quantity. Blank: Does not enter the quantity.
4. Apply Shrink to Issue Quantity | Specify a code that controls whether the system applies a parent item's shrink factor to the recommended issue quantity of a component item. Values are: 1: Applies the shrink factor. Blank: Does not apply the shrink factor.
5. Apply Yield to Issue Quantity | Specify whether the system applies operation scrap percentage to the recommended issue quantity of a component item. Values are: 1: Applies the operation scrap percent. Blank: Does not apply the operation scrap percent.
6. Select All Lines for Issue on Entry | Specify whether the system processes unviewed records after you click OK. The detail area displays components one page at a time. Click OK before scrolling down to view and process all records. Values are: Blank: Process unviewed records. 1: Do not process unviewed records.
7. Display Only Open Lines | Specify whether the system displays only open lines or all lines in the detail area. A line is considered open if it has not been closed by choosing Close Line from the row menu. A line is also considered open if the order quantity is greater than the issued quantity. Values are: Blank: All lines. 1: Open lines.

Versions

These processing options control which version the system uses when you call these programs from the Inventory Issues program:

1. Shortage Maintenance (P3118) | Specify the version that the system uses when you select the row exit to the Shortage Maintenance program (P3118) from the Inventory Issue Revisions form. If you leave this processing option blank, the system uses the ZJDE0001 version of the Shortage Maintenance program. Versions control how the Shortage Maintenance program displays information. Therefore, you might need to set the processing option to a specific version to meet the business need.
2. Open Purchase Orders (P3160W) | Specify the version that the system uses when you select the row exit to the Purchase Order Inquiry program (P4310) from the Inventory Issue Revisions form. If you leave this processing option blank, the system uses the ZJDE0001 version of the Purchase Order Inquiry program. Versions control how the Purchase Order Inquiry program displays information. Therefore, you might need to set the processing option to a specific version to meet the business need.
3. PO Receipts (P4312) | Specify the version that the system uses when you select the row exit to the Purchase Order Receipts program (P4312) from the Inventory Issue Revisions form. If you leave this processing option blank, the program uses the ZJDE0008 version of the Purchase Order Receipts program. Versions control how the Purchase Order Receipts program displays information. Therefore, you might need to set the processing option to a specific version to meet the business need.
4. Movement and Disposition (P43250) | Specify the version that the system uses when you select the row exit to the Receipt Routing Movement and Disposition program (P43250) from the Inventory Issue Revisions form. If you leave this processing option blank, the program uses the ZJDE0002 version of the Receipt Routing Movement and Disposition program. Versions control how the Receipt Routing Movement and Disposition program displays information. Therefore, you might need to set the processing option to a specific version to meet the business need.

Equipment Management

This processing option controls whether the system automatically enters the work order number into the subledger field of the journal entry when processing maintenance orders.

1. Work Order Number | Specify whether the system enters the work order number in the subledger field of the journal entry when the system processes a maintenance work order. Values are: 1: Automatically enters the work order number in the subledger field. Blank: Does not enter the work order number in the subledger field.

Interoperability

These processing options control the default transaction type for inventory issue and work order transactions, as well as whether the system writes a before image for the work order header.

1. Inventory Issue Transaction Type | Specify the transaction type that the system uses for export processing. Enter a value from UDC 00/TT (Transaction Type) that identifies the type of transaction for the work order. If you leave this processing option blank, the system does not use export processing.
2. Work Order Transaction Type | Specify the default transaction type for the work order header that the system uses when processing export transactions. If you leave this processing option blank, the system does not perform export processing.
3. Work Order Header Before Image | Specify whether the system writes the before image for the work order header. Values are: Blank: Does not include the image. 1: Includes the image. 2: Does not include the image.

#### Issuing Material from a Single Location

Access the Inventory Issue Revisions form.

To issue material from a single location:

1. If you do not want to issue material for all component quantities at once, select the Filters tab, complete any of the these fields and options, and click Find:

   - Requested Date - From

   - Requested Date - Through

   - From Op Seq

   - Through Op Seq

   - Component Item No

   - Skip To Component Line Number

   - Display All Lines

   - Display Only Open Lines

2. Review the these fields:

   - Mt St

   - Quantity Ordered

   - Component Branch

   - Secondary Qty Ordered

   - Location

   - Lot Serial Number

   - Expired Date

   - Lot Effective Date

3. Select the Basic Information tab and complete the Issue Material For/UOM field:

   Use this field to enter the quantity of the parent item that indicates how many sets of parts are needed. If you are issuing a partial parent item quantity, enter this quantity and click Find. The detail area displays the partial quantity to be issued. The Qty (Quantity) Ordered field in the detail area indicates the quantity of each component that the system deducts from inventory.

4. To override the processing option settings for applying the shrink or yield factor of the parent quantity, select the Additional Details tab and select one or both of these options:

   - Inflate Shrink

   - Inflate Yield

5. To complete the issue process, click OK.

   Note. To reverse an issue transaction, change the item quantity that you want to reverse to a negative number. The system decreases the amount in the Quantity Ordered field for the item by the amount of the reversal.
   To close items that you no longer need, select the items and then select Close Line from the Row menu. The system closes the item and changes the information in the Description field to **Line Item is Closed**.
   You can associate components with a specific serialized assembly during inventory issues. If you do not know the assembly number, use the Assign Serial Numbers program (P3105) to review numbers that the system previously assigned to work order assemblies.

#### Issuing Material from Multiple Locations

Access the Select Multiple Locations form.

Quantity | Enter the number of units committed for shipment in the Sales Order Entry program, using either the entered or the primary unit of measure defined for this item. In the JD Edwards EnterpriseOne Manufacturing system and the Work Order Time Entry program, this field can indicate completed or scrapped quantities. The quantity type is determined by the type code entered.
Location | Enter the storage location from which goods will be moved.
Lot / Serial | Enter a number that identifies a lot or a serial number. A lot is a group of items with similar characteristics.
Lot Effective Date | Enter the date on which a lot becomes available. The system uses this date for availability and commitment processing to indicate that the lot is available on or after the date that you specify. You must complete this field when inventory first becomes an on-hand quantity for the lot. If you leave this field blank, the system calculates the effective date of the lot by using the value for Effective Days in the Item Branch File table (F4102) or the current date if the value for Effective Days is zero.

### Recording Component Scrap

This section provides an overview of the recording of component scrap and discusses how to:

- Set processing options for the Component Scrap program (P31116).

- Record component scrap.

#### Understanding the Recording of Component Scrap

You can use the Component Scrap program (P31116) to add scrapped quantities of component items to the Item Ledger File table (F4111) and the Work Order Parts List table (F3111). The Item Ledger File table provides an audit trail of the quantity scrapped and the reason for the scrap transaction.

When you use the Component Scrap program, consider this important information:

- You cannot scrap components unless they have been issued to a work order.

- The total quantity that is scrapped for a component cannot exceed the total quantity that is issued to the work order.

- Negative transactions are enabled unless the transaction quantity causes a negative issue.

- You can enter scrap transactions in any unit of measure. The scrapped quantity is converted to the unit of measure of the parts list and rounded to one whole unit of measure when the system updates the F3111 table.

The system uses the order number information from the Work Order Master File table (F4801) and the component information from the F3111 table.

See Also

Component Scrap

#### Forms Used to Record Component Scrap

Form Name | FormID | Navigation | Usage
Component Scrap Revisions | W31116I | Daily Order Preparation - Discrete (G3111), Component Scrap Locate and select a work order for an item on the Work With Component Scrap form, and click Select. | Record component scrap.

#### Setting Processing Options for the Component Scrap Program (P31116)

Processing options enable you to specify the default processing for programs and reports.

Process

1. Processing Mode | Specify whether the system processes by item number or work order number. Values are: 1: Item number. Blank: Work order number.
2. Component Scrap Status | Specify the Status Code beyond which Component Scrap cannot be made. Blank means no restriction for Component Scrap.

Defaults

2. Transaction Date | Specify the date that an order was entered into the system. This date determines which effective level the system uses for inventory pricing. Leave the processing option blank for the default value of today's date.
3. Reason Code | Specify a value from UDC 31/RC (Reason Code) that indicates the reason for the quantity that was scrapped at this operation.
4. Document Type | Specify a value from UDC 00/DT (Document Type) that identifies the origin and purpose of the transaction. Enter the document type associated with the Component Scrap Transaction.

SN Processing

1. Document Type | Specify the Document Type (UDC table 00/DT) used for Serial Number Issues. Leave blank for the default value of IM (Material Charged to Work Orders).

#### Recording Component Scrap

Access the Component Scrap Revisions form.

Reason Code | Enter a value from UDC 31/RC (Reason Code) that indicates the reason for the quantity that was scrapped at this operation.
Explanation | Enter text that identifies the reason that a transaction occurred.