INVENTORY - Digital Concourse

SCM and EFM Integration
Russ Haywood
Product Manager

AGENDA
INTEGRATION OVERVIEW
FLOW OF DATA FROM SCM TO EFM
KEYS TO SUCCESS
SETUP
PROCESSING
TRANSACTION FORMS
POSTING PROGRAMS
TROUBLESHOOTING
WRAP-UP
QUESTION & ANSWER

Infor Lawson Finance and Procurement
SUPPLY CHAIN
MANAGEMENT
ENTERPRISE
FINANCIAL
MANAGEMENT
Requisitions Purchasing Inventory
Accounts
Payable
General
Ledger
Master Data
Integrated
Data
Financial
Integrity
Process
Controls
Budget
Checking
Buyer
Messages
Matching
Asset
Integration
Vendor
Performance
Reconciliation
Drill to
Answers
Collaborate
Audit Trail
User
Experience
Workflow
3
Copyright © 2011 Infor. All rights reserved.

SCM & EFM INTEGRATION
General
Ledger
Asset Mgmt
Budgeting
Strategic
Ledger
Project
Accounting
AP, CB &
Terms
Currency &
Tax
SCM
Continuous
Control
Monitoring

FLOW OF DATA FROM SCM TO EFM
Requisitions
• Asset Management
• Budgeting
• Project Accounting
• General Ledger
Purchase
Order
• Accounts Payable
• Asset Management
• Budgeting
• Project Accounting
• General Ledger
Inventory
Control &
Warehouse
• Billing
• Budgeting
• Project Accounting
• General Ledger

INTEGRATION KEYS TO SUCCESS
Setup
1
Processing
4
2
Troubleshooting
3
Timely Review Reports &
Postings

SETUP – INVENTORY CONTROL
There are four forms within the Inventory Control
application that contain General Ledger and Project &
Activity defaults. They include:
Inventory Control Location Defaults (IC02.1)
Item Master Issue Account (IC11.1)
Inventory Control General Ledger Categories (IC04.1)
Reason Codes (IC17.1)

SETUP – IC LOCATION (IC02.1)
You must define the Inventory Control Location Returns and Inspection account defaults
for each IC Location (IC02.1)
All fields must be populated, even if you will not be using the functionality

RETURNS SUSPENSE
Clearing account for inventory item vendor returns
Vendor Return: Credit Memo:
DR Returns Suspense DR AP Vendor Liability
CR Inventory CR Returns Suspense

RETURNS SUSPENSE – Caution!
Monitor the balance of this account using the Vendor Return Status Report
(PO231) – sum of inventory only items “Waiting for Vendor Action”

INSPECTION HOLD
Clearing account for inventory item inspections
Receipt:
Inspection:
DR Inspection Hold
DR Inventory or Scrap
CR RNI
CR Inspection Hold

FREIGHT
Default for Freight on Vendor Returns (all item types)
Can be overridden on the Vendor Return

HANDLING
Default for Handling on Vendor Returns (all item types)
Can be overridden on the Vendor Return

SCRAP
Multipurpose:
Reject inventory item upon inspection
on a VR
DR Scrap
CR Inspection Hold
Cancel inventory item
DR Scrap
CR Returns Suspense

SETUP – ITEM MASTER ISSUE ACCOUNT
(IC11.1)
Default expense account enter on the Accounts tab
Optional

SETUP – IC GENERAL LEDGER CATEGORY
(IC04.1)
Required for each IC Location under which items will be built
Assigned to item location records on the Item Location (IC12.1) form
All fields must be populated, even if you will not be using the functionality. The
only exception is the Issue Accounting Unit.

INVENTORY
ALL transactions for an inventory tracked items post to this
account
Cannot be changed on any inventory item transaction
Asset Accounting Unit / Account

INVENTORY – Caution!
ALL transactions for an inventory tracked items post to this
account
Cannot be changed on any inventory item transaction
Asset Accounting Unit / Account
NEVER key the inventory account defined here direct
on any SCM transaction form!

RECEIPTS
Used for non-purchase order receipts entered on the IC
Receipt (IC20) form
This account can be overridden at transaction entry time
IC Receipt (IC20):
DR Inventory
CR Receipts Offset
Income Statement / Expense Account or a Balance Sheet
– depending on how you use IC Receipts (IC20) form

RECEIPTS – Caution!
Used for non-purchase order receipts entered on the IC
Receipt (IC20) form
This account can be overridden at transaction entry time
IC Receipt (IC20):
DR Inventory
CR Receipts Offset
Income Statement / Expense Account or a Balance Sheet
– depending on how you use IC Receipts (IC20) form
Should not be the Inventory Account – unless
Consignment

ISSUES
This account will default on requisitions, purchase orders,
pars and direct issues
This account can be overridden at transaction entry time
The Accounting Unit is optional based on IC Location
setup.
Issue Stock:
DR Issues
CR Inventory
Return (Negative Issue):
DR Inventory
CR Issues
Income Statement / Expense Account

ADJUSTMENT
Used for inventory item adjustments entered on the
Adjustment (IC24) form
This account can be overridden at transaction entry time.
Increase Inventory:
DR Inventory
CR Adjustment
Decrease Inventory:
DR Adjustment
CR Inventory
Income Statement / Expense Account

COST VARIANCE
Used to record inventory items approved at a price that
differs from the price at the time of receipt that are no
longer in inventory
Used to record the variance from Standard Code for a
Standard Cost Valuation inventories
Used with the Standard Cost costing method or with the
Average Cost costing method if the inventory quantity
goes negative
CANNOT be changed at transaction time entry

INTRANSIT
Used for intransit transfers entered on the Intransit Transfer
(IC22) and the Intransit Receipt (IC23) form
Also used for intransit transfers processed through the
requisition process
Temporary holding account when inventory items are being
transferred from one inventory location to another using the
“Intransit Transfer” option
CANNOT be overridden at transaction time
Transfer from Location A to Location B using Intransit option:
DR Intransit for Location B
CR Inventory for Location A
Intransit Receipt at Location B:
DR Inventory for Location B
CR Intransit for Location B
Balance Sheet / Asset Account

PHYSICAL INVENTORY VARIANCE
Used for physical inventories and cycle counts when the
Update Variance program (IC175) is run in update mode
Used to post the difference between the system stock on hand
quantity at the time of the freeze and the entered count
Note: This account CANNOT be overridden at transaction time
Increase Inventory:
DR Inventory
CR Physical Inventory Variance
Decrease Inventory:
DR Adjustment
CR Physical Inventory Variance
Income Statement / Expense Account

ADD-ON COST
Used during the Intransit Transfer Receiving (IC23)
process. The user can add a handling or transportation
charge to the received unit cost of the intransit items.
Can be overridden at transaction time entry
This is NOT the Purchase Order Add-On Cost
Intransit Transfer Receiving with Add-On Cost:
DR Inventory Account Receiving Location
CR Add On Cost Receiving Location
Income Statement / Expense Account

SHRINKAGE
Used only by Order Entry for return of catch weight items
Any variance between the original issue/shipped catch
weight quantity and the return quantity will post to this
account
Income Statement / Expense Account

SETUP – REASON CODES (IC17.1)
Used for Reporting and Overriding the default account on IC
transactions
Optional: If built, you must assign a default account number

SETUP – REQUISITION
There is one form within the Requisition application that
contains General Ledger and Project & Activity defaults:
Requesting Location (RQ01.1)

SETUP – REQUESTING LOCATION (RQ01.1)
You have the option of assigning a default accounting unit, account and/or sub-account
to each Requesting Location on the Requesting Location (RQ01.1) form.
Will default on requisitions, purchase orders and inventory issues based on the default
hierarchy for your release level.

SETUP – REQUESTING LOCATION (RQ01.1)
You have the option of assigning a default Activity and Account Category each
Requesting Location on the Requesting Location (RQ01.1) form.
Will default on requisitions, purchase orders and inventory issues based on the default
hierarchy for your release level.

SETUP – PURCHASING
There are two forms within the Purchasing application that
contains General Ledger and Project & Activity defaults:
Procurement Templates (PO15.1)
Vendor Agreement (PO25.x)

SETUP – PROCUREMENT TEMPLATES
(PO15.1)
You have the option of assigning a default distribution company, accounting unit,
account and/or sub-account to each line on a Procurement Template (PO15.1) form.
Will default on requisitions and purchase orders based on the default hierarchy for your
release level.

SETUP – PROCUREMENT TEMPLATES
(PO15.1)
You have the option of assigning a default distribution company, accounting unit,
account and/or sub-account to each line on a Procurement Template (PO15.1) form.
Will default on requisitions and purchase orders based on the default hierarchy for your
release level.

SETUP – VENDOR AGREEMENT PO25.1)
You have the option of assigning a default distribution company, accounting unit,
account and/or sub-account to each line on a Vendor Agreement (PO15.1) form.
Will default on the service agreement lines. (Optional)

SETUP – SERVICE AGREEMENT LINES (PO25.7 )
You must assign a default distribution company, accounting unit, account and/or subaccount
to each line on a Service Agreement line (PO25.7) form.
(Optional) Assign activity and account category data

SETUP – MATCH COMPANY (MA01.00 )
Required for each Match company
Assigned on the main tab
Assign unique accounts to help with reconciliation

INTEGRATION KEYS TO SUCCESS
1
2
Processing

REQUISITION PROCESSING
IMPACTS GENERAL LEDGER:
Requisition Return (RQ35)
OTHER:
Requisition (RQ10)
Requisition Center (RQC)

COST DEFAULT RULES
Used for defaulting cost
when creating
requisitions and
purchase orders.

INVENTORY CONTROL WAREHOUSE PROCESSING
IMPACTS GENERAL LEDGER:
IC Receipts (IC20)
Issues (IC21)
Transfers (IC22)
Intransit Transfers (IC22)
Intransit Receipts (IC23)
Adjustments (IC24)
Document Release (IC25)
Cost Adjustments (IC28)
Physical Inventory or Cycle Count Process (IC175)
Shipping Feedback (WH32.x Release Action and WH190)
Transaction Interface (IC500)

PURCHASE ORDER PROCESSING
IMPACTS GENERAL LEDGER:
Purchase Order (PO20) – NEW 9.0.1 Archive Receipt
PO Receiving for Inventory Items (PO30)
Vendor Return for Inventory Items (PO31)
Vendor Return cancel/close action for Inventory Items (PO31)
Receiving Adjustment for Inventory Items (PO33)
Inspections for Inventory Items (PO34)
Receiving Approval and Release – Release Action for Inventory Items ONLY (PO35)
PO Receiving File Create for Inventory Items (PO529)
OTHER:
Mass PO Cancel or Delete (PO22.2) – NEW 9.0.1 Cancel commitments

MATCHING PROCESSING
IMPACTS GENERAL LEDGER:
Archive and Write off Receipts (MA180)
Posts written off and archived receipt transactions to the general ledger.
Written off receipts are still available in the match process.
Archived receipts are no longer available in the match process
OTHER:
Match Cancel (MA75)
Use PO Invoice Cancel (MA75.1) to unmatch and reverse Purchase Order
invoices that were matched and the invoices released for payment.
UnMatch Invoice (MA70)
Use Invoice Unmatch (MA70.1) to unmatch invoices and receipts that have
been previously matched in Invoice (AP20), Invoice Reconciliation (MA60), or Auto
Matching (MA126). MA70 reverses all matched invoice and receipts that have not been
posted to the general ledger.

PROCESSING RULES TO REMEMBER
Release transactions
on a timely basis
Never manually key
the inventory account
or any system
account (i.e. RNI) on
any form
Review the following
daily:
Inventory Value (IC46)
IC Daily Transaction
Summary (IC37)
Unreleased Documents
Buyer Messages

INTEGRATION KEYS TO SUCCESS
1
2
3
Timely Review Reports &
Postings

SUPPLY CHAIN MANAGEMENT POSTINGS
The following Supply Chain Management jobs generate
journal entries that are passed to the General Ledger for
posting:
General Ledger Interface (IC130)
Received, Not Invoiced Report (PO135)
Matched, Not Received Report (PO136)
Standard Cost Calculation (PO139)
Close Purchase Order Header (PO190)
Open Receipt Archive (MA180)

INTEGRATION KEYS TO SUCCESS
1
4
Troubleshooting
2
3

TROUBLESHOOTING
Trace the transaction back to the application using the
System Code and Transaction Source Code
Use the Procurement Transaction Interface Appendix in the
Purchase Order or Inventory Control User Guides
Review the application setup and update if applicable

INTEGRATION KEYS TO SUCCESS
Setup
1
Processing
4
2
Troubleshooting
3
Timely Review Reports &
Postings

INTEGRATION KEYS TO SUCCESS
Setup
1
4
Troubleshooting
Happiness
is
SCM + EFM
In Harmony
2
Processing
3
Timely Review Reports &
Postings

Questions?
Russ Haywood Watson
Russ.haywood@infor.com
Colleen Holm
Colleen.holm@infor.com
51
Copyright © 2011 Lawson. All rights reserved.

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Copyright © 2012 Infor. All rights reserved. Confidential. This presentation reflects the direction Infor may take with regard to the products or services
described herein, all of which is subject to change without notice.

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Copyright © 2012 Infor or Lawson. All rights reserved. Confidential. This presentation reflects the direction Infor or Lawson may take with regard to the
products or services described herein, all of which is subject to change without notice.