This document describes the setup when you run Stock Ownership on its own. (If you plan on running Stock Ownership together with DC1 Contract Managed Inventory (CMI), see Setting up the basic data and warehouses for DC1 Contract Managed Inventory (CMI) and Setting up and initializing the inventory contracts for DC1 Contract Managed Inventory (CMI).)
The main purpose with the Stock Ownership functionality is to control the ownership of your internal stock; regardless of whether you have one internal owner (e.g., one sales department) of the items in your standard stock at your warehouse site or several internal owners (e.g., several sales departments). You set everything up in one DC1 company, and differentiate the physical storage of the goods and the financials/ownership information. This differentiation is done per warehouse that you must set up in the system. Depending on the number of internal owners, the types of warehouses that have to be set up differ. If you have one internal owner, a warehouse that is classified as a “normal” warehouse must be set up. If you have several internal owners, you must set up as many “logical” warehouses as required per owner and one warehouse that is classified as “physical”.
All routines that deal with orders, availability (i.e. quantities) and finance are handled by the logical and normal warehouses. All routines that deal with warehouses, dispatching and reception are handled by the physical and normal warehouses. Whenever quantities are updated for a logical warehouse, the quantities will also be updated for the physical warehouse.
The majority of the setup is done for your warehouses. If you have several internal owners of the items in your standard stock and you allocate your stock into locations in your physical warehouse, you can set the system up to handle the owner of the location in different ways. Likewise, how you choose to apportion any stock take differences (gains or losses) among several owners is also something that can be set up.
What this document contains:
- Differentiating your warehouses
- Location handling for several internal owners
- Handling stock take differences for several internal owners
- Setting up the basic data
- Setting up the warehouses
- Setup – One internal owner of your standard stock
- Setup – Several internal owners of standard stock with no owner per location
- Setup – Several internal owners of standard stock with owner per location, but no owner restriction
- Setup – Several internal owners of standard stock with owner per location, but with owner restriction
- Change the warehouse ownership
Differentiating your warehouses
When the Stock Ownership functionality is activated, the Whs characteristic flag becomes available in the Warehouse table. The type of warehouse is determined by this Whs characteristic setting. The following user-defined settings are available for use when Stock Ownership is activated and run stand-alone (i.e. without DC1 Contract Managed Inventory) in your DC1 system:
| Whs characteristic | Definition |
|---|---|
| If you have one internal owner of your items that are included in your standard stock at your warehouse site, you must set up one Normal warehouse. You must connect a cost centre to this normal warehouse to have some control over the ownership of your items that are part of the standard stock in your warehouse. | |
| 1 | Normal warehouse (The system will run exactly as it has in previous releases, but the cost centre connected to the warehouse will control the ownership. One warehouse = one owner). A normal warehouse (i.e. with Whs characteristic set to 1) can be handled both as physical and logical warehouse. |
| If you have several internal owners of your items that are included in your standard stock at your warehouse site, you must set up as many Trade (Logical) warehouses as required and one Physical warehouse. | |
| 2 | Trade (i.e. Logical warehouse) |
| 9 | Physical warehouse |
Location handling for several owners
When you have several internal owners of the items that are included in your standard stock at your warehouse site, which requires that a physical warehouse is set up, and you use locations in your physical warehouse, you can set the system up as you see fit when it comes to the owner of the locations in your warehouse, choosing from the following three possibilities:
- No owner per location
This is the easiest and most efficient way to run stock ownership, and is the advantage with stock ownership. This kind of setup is applicable when you do not wish to keep track of the location owners and, thus, be able to just place the items in any location. The physical warehouse will hold the total quantity for all logical warehouses that are linked to the physical. You do not want to keep control over which location in the warehouse belongs to which owner. - Owner per location, but no owner restriction
This kind of setup would be applicable if you do not want to mix the owners of goods in locations and you do not care in which location the goods are placed, but you do want everything that is placed in one location to be owned by one owner, regardless of the owner. - Owner per location, with owner restriction
If you want to place stricter control over the owners of your locations, you can set the system up with location owner groups. It will still only be possible to have goods belonging to one owner in one location, but you can control which owner will be allowed to store the items in that location.
Location/internal owner field
The following applies for all three of the above-mentioned possibilities:
There are two Location/int owner fields. One is on Warehouse level only (Work with Warehouses) and the other is on Item/Warehouse level (Work with items, Warehouse Management panel). The field on Item/Warehouse level is normally blank. If that field on Item/Warehouse level is set to YES, this is what will be used for this specific item/warehouse. Hence, if you have set the Location/int owner field to NO on Warehouse level, you can override that setting on Item/Warehouse level by setting the field there to YES. Similarly, it is possible to set that field on Warehouse level to YES, but set the equivalent field on Item/Warehouse level to NO. In this case, this denotes that the specific item/warehouse will not keep control of any owner in the location.
See the following for the specific setup instructions:
- Setup – Several internal owners of standard stock with no owner per location
- Setup – Several internal owners of standard stock with owner per location, but no owner restriction
- Setup – Several internal owners of standard stock with owner per location, but with owner restriction
Handling stock take differences for several internal owners
When you have several internal owners of the items in your standard stock and you perform a stock take for the physical warehouse, and there is a difference between the counted quantity in your physical warehouse compared to what the system states, you need to decide how the difference (gain or loss) is apportioned among the owners (i.e. who should take the loss or gain the extra item that is counted). The Stock/owner flag setting on the physical warehouse denotes how the difference should be apportioned.
- If you set this flag to NO, the system will automatically calculate the difference and disperse the gain or loss to the owner (the logical warehouse) that (in the books) has the highest percentage of total stock in the physical warehouse.
- If you set the flag to YES, you can decide for yourself how much of the gain or loss each owner will take. You will be able to drill down on the logical warehouses in the Work with stock take routine and enter the actual counted quantity per owner.
Example:
Assuming there is 1000 of one item, the person doing the stock take does not know who the owner is. 500 could be owned by CCA (logical whs 1), 300 could be owned by CCB (logical whs 2), 200 could be owned by CCC (logical whs 3).
If the system says that you have 1000 in stock, but you only count 994, then there is a stock take difference. According to the system, CCA owns 50% of the existing items, CCB owns 20% and CCC owns 20%.
If the Stock/owner flag is set to NO on the physical warehouse, the system will automatically calculate and apportion the loss accordingly for this example: CCA will take 50% of the loss (3). CCB will take 30% of the loss (2), and CCC will take 20% of the loss (1).
If the Stock/owner flag is set to YES on the physical warehouse, you decide what percentage of the loss each owner will receive by manually entering the actual counted quantity for each owner.
Stock take/owner field
There are two Stock take owner fields for internal owners that can be defined on the following levels:
- Warehouse level (Work with Warehouses)
- Item/Warehouse level (Work with items, Warehouse Management panel)
The system will search in the following sequence when determining if stock take/owner should be implemented in your physical warehouse for internally owned goods:
- Item/Warehouse level
- Warehouse level
When the system is determining whether or not stock take/owner is active for the current item/warehouse, it will first check the item/warehouse management record for the physical warehouse. If the item/physical warehouse has anything defined in the Stock take/owner field, this value will determine the current situation. If the field is set to NO, stock take/owner is not active. If the field is set to YES, stock take/owner will apply. But if nothing is defined (blank), the system will continue and check the warehouse record. The value from the physical warehouse will be used to determine whether or not stock take/owner will apply.
Setting up the basic data
The following outlines the necessary set up requirements for the stock ownership functionality.
| File/Table | To do |
|---|---|
| Function control file | Activate the STKOWNER (Stock Ownership) function. |
| Work with G/L control file and Work with chart of accounts | Make sure all cost centres that you will connect to normal and logical warehouses are registered. |
| Work with countries | Make sure all countries in which you conduct trade are registered. |
| Work with warehouses | Set up the warehouses as required. See Setting up the warehouses below for general information and the following for the specific set up instructions:
|
| Work with items | For each item, activate the applicable warehouse.
If location owner handling was defined for an activated physical warehouse, and you want to override the Location/int owner setting that was defined for the warehouse, and instead define it per item that is stored in this warehouse, set the Location/int owner field on the Work with items, Warehouse management panel to that applicable (YES or NO). (See Location/internal owner field under Location handling for several owners for more information.) If stock take/owner handling was defined for an activated physical warehouse, and you want to override the Stock take/owner setting that was defined for the physical warehouse, and instead define it per item that is stored in this warehouse, set the Stock take/owner field on the Work with items, Warehouse management panel to that applicable (YES or NO). (See Stock take/owner field under Handling stock take differences for several internal owners for more information.) |
| Work with location classes | This table is not exclusive to Stock Ownership, but when running this functionality in your DC1 company, and you use locations in your physical warehouse, you must define the processes allowed for the location via a location class. The location class must (eventually) be connected to a location.
Add the location classes as required and define what process is allowed for the location, by setting one or all of the following to YES:
|
| DIS control file | Make sure the Main warehouse field is defined with a warehouse from the Work with warehouses file that is defined as a normal or trade (logical) warehouse (i.e. Whs characteristic = 1 or 2). |
| Setup/Impact to other functionality when Stock Ownership is activated: | |
| Work with sourcing policies | If you are using the sourcing policy functionality with auto source to source your sales orders, make sure your sourcing policies are defined and the applicable normal or logical warehouse(s) are attached. |
| Work with warehouse zones | Zones can only be added for normal and physical warehouses. |
| Work with transaction types | When the STKOWNER (Stock Ownership) function is activated, cost centre can be used as a valid table for transaction types 901 to 907 and 909 to 919. |
| Landed cost type table | You are only allowed to enter normal or logical warehouses in the To warehouse field for landed cost type details. |
| Work with sales pricing methods | If you use sales pricing methods to price your items, and you plan on using warehouse as one of the pricing keys, the warehouse you connect must be a normal or logical warehouse. |
| Work with sales restrictions | If you plan on using the sales restriction functionality, and you want to define the “From” warehouse as one of your restrictions, the warehouse you connect must be a normal or logical warehouse. |
Setting up the warehouses
The setup differs depending on the number of (internal) owners of the items in your standard stock at your warehouse site and how you want to handle the location ownership in your physical warehouse. The setup procedure is described for each specific scenario.
Setup – One internal owner of your standard stock
If your business has one (internal) owner of the items in your standard stock at your warehouse site, you only need to set up one normal warehouse as follows:
| File | To do |
|---|---|
| Work with warehouses | Add the normal warehouse and complete the following fields required for Stock Ownership on the first detail panel:
Other fields may need to be completed for other functionality that is activated/installed for your DC1 system. Complete as required. Click OK. On the second detail panel, define the print information associated with the documents for this warehouse and (if applicable) package reporting information. Click OK until you exit the file. |
Setup – Several internal owners of standard stock with no owner per location
If your business has several (internal) owners of the items in your standard stock, and the stock is physically located at the same place (same warehouse site), and picking and shipments are handled together, you need to set up as many logical warehouses as you require for the number of internal owners as well as one physical warehouse.
The “no owner per location” is the easiest and most efficient way to run stock ownership, and is the advantage with stock ownership. It is ideal when your company does not wish to keep track of the location owners; the items will just be placed in available locations. The physical warehouse will hold the total quantity for all logical warehouses that are linked to the physical. You do not want to keep control over which location in the warehouse belongs to which owner.
Example:
If you have set up three logical warehouses that share the same physical warehouse, when running the Pick suggestions / Put away suggestions:
- The system will not know exactly who the owner of the goods is, it will just keep track that the owner will have quantity in stock and it is irrelevant where it is located.
- The system will pull from any location where it finds the item, or put the item into any location.
- The Warehouse balance enquiry will tell you how many items belong to each cost centre, but you are not interested in knowing where they are placed.
| File | To do |
|---|---|
| Work with warehouses | You must add the Physical warehouse first since it will be mandatory to connect this physical warehouse to all logical warehouses to be able to create the logical warehouse.
Physical warehouse
Other fields may need to be completed for other functionality that is activated/installed for your DC1 system. Complete as required. Click OK. On the second detail panel, define the print information associated with the documents for this warehouse and (if applicable) package reporting information. Click OK. On the Work with warehouses, Warehouse management panel, complete the following fields:
Click OK to update. Logical warehouse(s)
Other fields may need to be completed for other functionality that is activated/installed for your DC1 system. Complete as required. Click OK. On the second detail panel, define the print information associated with the documents for this warehouse and (if applicable) package reporting information. Click OK until you exit the file. |
Setup – Several internal owners of standard stock with owner per location, but no owner restriction
If your business has several (internal) owners of the items in your standard stock, and the stock is physically located at the same place (same warehouse site), and picking and shipment are handled together, you need to set up as many logical warehouses as you require for the number of owners as well as one physical warehouse.
The “Owner per location, but with no owner restriction” kind of set up would be applicable if you do not want to mix the owners of goods in locations and you are not interested in knowing in which location the goods are placed, but you do want everything that is placed in one location to be owned by one owner, regardless of the owner.
Whenever something is placed into the location, the location will be flagged (i.e. marked) with the owner. As soon as that location becomes empty, the flag will be removed and any owner can place the goods there. This means that any of the cost centres can be the temporary owner of the location. When you run the put away suggestion, the system will know the owner of the goods because the physical warehouse belongs to a logical warehouse (cost centre, i.e. the system will flag the cost centre on the location in which the stock was allocated for this owner). You can view it in the Location enquiry.
| File | To do |
|---|---|
| Work with warehouses | You must add the Physical warehouse first since it will be mandatory to connect this physical warehouse to all logical warehouses to be able to create the logical warehouse.
Physical warehouse
Other fields may need to be completed for other functionality that is activated/installed for your DC1 system. Complete as required. Click OK. On the second detail panel, define the print information associated with the documents for this warehouse and (if applicable) package reporting information. Click OK. On the Work with warehouses, Warehouse management panel, complete the following fields:
Click OK to update. Logical warehouse(s)
Other fields may need to be completed for other functionality that is activated/installed for your DC1 system. Complete as required. Click OK. On the second detail panel, define the print information associated with the documents for this warehouse and (if applicable) package reporting information. Click OK until you exit the file. |
Setup – Several internal owners of standard stock with owner per location, but with owner restriction
If your business has several (internal) owners of your standard stock, and the stock is physically located at the same place, and picking and shipment are handled together, you need to set up as many logical warehouses as you require for the number of owners as well as one physical warehouse.
The “Owner per location, with owner restriction” kind of set up would be applicable if you want to place strict control over the owners of your locations (i.e. you just want to allow some internal owners to keep their stock in a specific location). To achieve this kind of control, location owner groups must be set up and connected to a cost centre in the Work with location owner groups file. It will still only be possible to have goods belonging to 1 owner in 1 location, but you can control which owner is allowed to store the items in that location.
| File | To do |
|---|---|
| Work with warehouses | You must add the Physical warehouse first since it will be mandatory to connect this physical warehouse to all logical warehouses to be able to create the logical warehouse.
Physical warehouse
Other fields may need to be completed for other functionality that is activated/installed for your DC1 system. Complete as required. Click OK. On the second detail panel, define the print information associated with the documents for this warehouse and (if applicable) package reporting information. Click OK. On the Work with warehouses, Warehouse management panel, complete the following fields:
Click OK to update. Logical warehouse(s)
Other fields may need to be completed for other functionality that is activated/installed for your DC1 system. Complete as required. Click OK. On the second detail panel, define the print information associated with the documents for this warehouse and (if applicable) package reporting information. Click OK until you exit the file. |
| Work with location owner groups | Add as many location owner groups as required, defining the group ID and the description. For each location owner group, select the Cost Centres option. On the Work with location owner groups, Cost centres panel, click the Add option and complete the Cost centre field with the applicable cost centre for the group. |
| Work with warehouse locations | For the applicable physical warehouse and locations, complete the Location owner group field and the Location class field. |
Change warehouse owners
Changing warehouse ownership is only allowed when transaction type 901 (“Stock value”) is set up with cost centre as an account dimension.
Warehouse must be a normal warehouse or trade (logical) warehouse.
When a warehouse is connected to at least one item that has stock it is not possible to change the ownership (cost centre) from within the Work with warehouses file.
To change the owner, you access the Change warehouse ownership routine and complete the following fields:
- Warehouse
- Enter the warehouse for which the ownership (cost centre) should be updated.
- New cost centre
- Enter the new cost centre that should be the owner for the entered warehouse.
This function reads all items that are active for the selected warehouse and transfers the stock value and transit stock value to the new selected cost centre.
Quantity on hand
Depending on the Cost per warehouse and Cost type field in the DIS control file, or the override value for cost type on item level, cost price is retrieved from item master file or item warehouse for cost type standard cost and average cost.
For cost type FIFO the cost price is retrieved from the FIFO file according to the quantity on hand.
The retrieved cost price is used to calculate the stock amount in combination with quantity on hand for transfer the cost to the new cost centre.
For cost type serial number costing, all serial numbers in stock are read individually and accounted by serial number.
Created bookkeeping transaction for stock transfer:
| Transaction type | Description | Debit/Credit | Additional info |
|---|---|---|---|
| 901 | Stock value | – | “Old” cost centre |
| 901 | Stock value | + | “New” cost centre |
Transit on hand
Depending on the Cost by warehouse and Cost type fields in the DIS control file, or the override value for cost type on item level, cost price is retrieved from item master file or item warehouse for cost type standard cost and average cost.
The retrieved cost price is used to calculate the stock amount in combination with transit quantity on hand for transfer the cost to the new cost centre.
For cost type FIFO all open sales order lines are read and the cost price is retrieved from the corresponding purchase orders or manufacturing orders unit cost price and accounted by sales order line.
For cost type serial number costing, all serial numbers in transit stock are read individually and accounted by serial number.
Created bookkeeping transaction for stock transfer:
| Transaction type | Description | Debit/Credit | Additional info |
|---|---|---|---|
| 902 | Stock value transit stock | – | “Old” cost centre |
| 902 | Stock value transit stock | + | “New” cost centre |
Open orders
All open sales orders and purchase orders are read for the selected warehouse and the cost centre field is updated to the new entered on selection panel.