Create And Authorize Material Request

This page allows you to create and authorize the material request transaction. Tell me more

• Select the “Create And Authorize Material Request” link under the “Material Request” Business Component

The “Create And Authorize Material Request” page appears.

The system displays the following:

• Enter the following:

Note: If numbering type is manual, then transaction number must not be left blank. Ensure that transaction number is unique for the transaction type in the login OU.

Note: The system checks whether the warehouse is of “Capital” type. If the warehouse is a non-capital warehouse, then capitalized items must not be allowed. Else, the system displays an error message. Providing Proposal No for Capital Warehouse is restricted.

• Enter the following:

Note: If the value of the system parameter “Prevent transactions during period closing” is set as “Yes”, the system does not allow the transaction if the closing period is active.  

Note:  Issue tolerance quantity is calculated as the product of issue tolerance (+%) and authorized quantity. The maximum quantity allowed for issue must not be greater than the sum of authorized quantity and tolerance quantity.

Note: Material Request created based on a proposal id does not require A/c Usage since the account code will be derived based on the CWIP (Capital Work in Progress Account) mapped to the Asset class of the Proposal. Inventory issue can be raised referring the MR which in turn can be fetched as a Capital document in "Asset Capitalization" for capitalizing the items.

• Enter the following in the “Default Entries” group box:

Note: The system checks the value of system parameter “Analysis/Sub Analysis code Applicable”. If this parameter is set “Yes”, then the system checks if the account code is having only one analysis/sub analysis code mapped to it. If so, then the system sets the status of the transaction as “Authorized”. The system saves the account code mapped to the analysis and sub analysis code. If the account code is mapped to more than one analysis/sub analysis code, then the system does not perform the check for allocation and authorization profile.

• Enter the following in the “Item Information” multiline:

Note: If the item code is of type “Kit”, then all the items that comprise the kit must be allowed in the warehouse and must be in “Active” status. The items that form part of the kit must not be variant enabled. If the stock status of the item code forming the kit is not allowed in the warehouse, then the system displays an error message.

• Enter the following in the “Item Information” multiline:

Note: Fractions can be entered, only if the UOM has been set to “Allow fractions” in the “Create UOM” activity of the “Unit of Measurement Administration” business component. If the stock UOM and transaction UOM are different for a particular item/variant, the system checks whether item dependent or and independent conversion exists between stock UOM and transaction UOM for the item/variant. Else, the system displays an error message.

Note: If the item is serially controlled, the system converts the transaction UOM to stock UOM to calculate quantity. The system retrieves the conversion factor between transaction and stock UOM. If quantity obtained in stock UOM results in fractions, the system displays an error message.

Note: If the Material Request type is “Capital”, then items whose stock status is “Inward/Outward Consignment” must not be allowed.

Note: The system checks the “Time Model” component to determine whether the need date is a working day date or not. If the need date in the header is not a working day, the system checks the parameter defined in the Time Model to see if the need date can be shifted earlier/later than the need date. If allowed, the system retrieves the earlier/later working date from the Time Model.

Note: If the allocation method is “None” or any method other than “Manual”, then lot number, sub-lot number, starting and ending serial numbers must be left blank. Else, the system displays an error message. If the item is neither lot nor serial controlled, then allocation method must not be chosen as “Manual”, “Expiry Date”, “LIFO” or “FIFO”. If the allocation method is “Manual” and if the item is lot or serial controlled, then lot/sub-lot numbers or serial numbers must be entered correspondingly System supports Partial Allocation also.(If requested stock is more than stock present in Lot A ,then system  partially allocates stock present in Lot B  to complete requested quantity)

Note: If the item is lot controlled and if the system parameter “Prevent transactions during quarantine of Lots” or “Prevent transactions during hold of expired lots” is set as “Yes”, the system displays an error message if either the quarantine check process or hold expired process is in operation. If the system parameter “Issue of Expired Lots” is set as “No”, then the system checks the “Lot Management” component to see whether there are any items beyond the expiry date of the lot. If the allocation method is “Manual” and the item/variant is lot controlled, the system checks whether the lot has been quarantined or held. If so, the system displays an error message.

Note: If the need date of the item comprising the kit is more than or equal to the sum of the system date and reservation horizon for the item, then the system displays an error message.

• Check the “Select” column in the multiline to select the transaction for viewing item details, lot information, serial number information, specifying financial information, attaching notes, modifying material request, inquiring warehouse stock, free stock information, EAD information, viewing item substitutes, inquiring disposition, and viewing warehouse information.

• Click the “Create Material Request” pushbutton to create the material request transaction.

The system displays a success message. The system sets the status of the transaction as “Draft” on successful validation of the details entered in the main page. If the analysis/sub analysis code is not applicable, then the system sets the status of the transaction as “Active”.

•  Click the “Create & Authorize Material Request” pushbutton to create and authorize the material request transaction.

The system displays a success message. The system sets the status of the transaction as “Authorized” if no analysis/sub analysis code is applicable.

The system sets the status of the transaction as “Authorized” if the parameter “Analysis/Sub Analysis code Applicable” is set “Yes” and account code is having only one analysis/sub analysis code mapped to it. Else, the system sets the status as “Draft”.

The system checks the value of the system parameter “Authorization Profile required for Material Request”. This check is performed only for Material Requests of “General” type. If it is set as “No”, the system checks whether the login ID of the user possesses the permission for authorization.

If the value of the system parameter “Authorization Profile required for Material Request” is set as “Yes”, the system calculates the document value as the product of required quantity and standard cost. The system compares this value with the value permitted for the login ID of the user as specified in the “Authorization Profile Setup”.   The system sets the status of the transaction as “Authorized” if the following conditions are satisfied:

The system parameter “Analysis/Sub Analysis Code Applicable” is set as “No”.

The system parameter is at Company Level

If set as “Yes”, the system sets the default value for analysis and sub- analysis codes.

 The system sets the status as the value of the level set for the login ID. For example, if the level of the login ID is L2 and the authorization limit is 4000, the user cannot authorize a document having a value of 5000. In such cases, the system sets the status of the document as "L2". In case the Login ID does not include in the list of authorization profile, then system displays an error message. If the “System parameter at company level”, analysis and sub-analysis is set as NO then on successful authorization the status of the Document is authorized .If set as Yes then further checks have to be done.

• Click the “Print” pushbutton to print the material request transaction.

The system displays the following:

To proceed, carry out the following

• Select the  “View Item Details” link at the bottom of the page to view details of items.

• Select the “ View Lot Details” link at the bottom of the page to view the lot related information.

• Select the “View Serial No. Details” link at the bottom of the page to view the serial number information.

• Select “Financial Information” link at the bottom of the page to specify the financial information for the material request transaction.

• Select “Attach Notes” link at the bottom of the page to attach notes for the material request transaction.

• Select “Edit Material Request” link at the bottom of the page to modify the material request transaction.

• Select “Stock Status Review” link at the bottom of the page to inquire the warehouse information.

• Select “Free Stock Check” link at the bottom of the page to inquire the free stock information.

• Select “Earliest Available Date” link at the bottom of the page to inquire the EAD information.

• Select “View Item Substitutes” link at the bottom of the page to view the item substitutes.

• Select “Disposition Review” link at the bottom of the page to inquire dispositionable stock.

• Select “View Warehouse Details” link at the bottom of the page to view storage information.

Create and Authorize Material Request – An Overview

The material request can be raised to request for material based on a reference document such as a work order, production order or sale order. Requests can be also recorded without a base document. Requests from multiple stores can be combined into a single material request against which an issue can be made. Only items in stock statuses that are defined for the “Material Request” transaction type can be requested for issue. Also, only Items in “Active” status can be requested. If the item is a part of the kit, then the item type must be allowed in the specific warehouse and the item code must be in “Active” status. All item types except non-stockable items such as “Model”, “Service”, “Reference Item” and “Sundry” item types can be requested for issue.

If the Material Request type is “Capital”, then items in consignment stock status will not be allowed for issue. The creation of the material request will post a planned entry(firm entry) in the issue column of the disposition. Material reserved in a particular warehouse must be issued from the same warehouse if the material planning is disposition. In the case of other types of planning such as min-max, reservation of stock is not possible.

Allocation can be made only on the current physical stock and not on the materials that is expected   in future. The difference between allocation and reservation is that to perform allocation, items must be physically available at the stocking points. The allocation methods supported in this page are Min-zone bin, Max-zone bin, Zone-bin priority, Expiry date, LIFO, FIFO and Manual. Max-zone bin rule ensures that request or issue of items happens only from the zone / bin that has maximum stock of the specified item. Min-zone bin rule ensures that request for issue of items happens only from the zone / bin that has minimum stock of the specified item. Zone-bin priority is the priority number associated with the zone / bin for picking items from the warehouse for receipt or issue. Expiry date ensures that the stock with the earliest / latest expiry date is given priority during allocation based on usage for lot controlled items. This type of allocation ensures that the stock is consumed based on their lifetime and prevents their expiry during storage. LIFO method allows hard allocation of materials that were received last into the warehouse. FIFO method allows hard allocation of materials that were received first into the warehouse. Both these methods are applicable only for lot controlled items. Manual method allows the user to specify the zone and bin from which hard allocation has to be made along with the lot and the quantity of stock to be allocated from that specified lot.

If the allocation method is not chosen as “None”, the system checks the free physical stock to assess the amount of stock that can be allocated. The system performs this check irrespective of whether the item is dispositionable or not. If the free physical stock is more than the required quantity, the system allocates the item and sets the stock status of the item as “Allocated”. If the free stock is less than the required quantity, then the system allocates the available free stock and posts a firm demand in disposition for the remaining quantity. However, if the stock status of the item is “Consignment in Supplier”, then the system allocates the free stock if it is greater than the required quantity. Else, the system does not place a demand for future and displays an error message. The system posts the firm entries into disposition only on authorization of the MR document.

If the allocation method is chosen “None” and the item is dispositionable with “Nettable” stock status, the system checks whether the parameter “Free stock check required for Material Request authorization” is set as “Yes”. If so, the system checks the available free stock. The system authorizes the transaction if the free stock is more than the required quantity. Else, the system displays an error message. The system places a firm demand into disposition only if the above parameter is set as “No”. The system places a firm demand for the additional quantity if the item is dispositionable. If the allocation method is “Manual”, the system checks the allocation details for the item/variant from Stock Allocation to determine whether stock can be issued.

If the Material Request is raised with a Proposal No, then Capital Warehouse cannot be provided. When the Proposal no is given then A/c usage need not be provided and the same will be derived as the CWIP account mapped to the Asset Class of the Proposal. During authorization of Material Request,

• The committed amount in the Asset Proposal would be updated with the Material Request Value

• If the MR is short closed, then Proposal would be back updated to the extent of unutilized value in the Committed Amount of the Proposal.

• If the MR is amended, then Proposal would be updated for the Amended value in the Material Request. If the Material Request is amended upwards/downwards after inventory issue then appropriate updation in the asset proposal will happen accordingly.

Material requests can be created and authorized based on the permissions granted to the user. The user must have the requisite authorize permission to authorize the material request transaction. The system sets the status of the transaction as “Active” or “Authorized” depending on whether the transaction is being created or authorized. The system saves the login id of the user and the date on which material request was created. The system sets the status of the transaction as “Authorization Level” if the document value is greater than the maximum value permitted for the login ID of the user.