Basic concepts • Prerequisites : Introduction to Navision 4.0 • Duration : 2 full days • Documentation : – PWP TRADE Navision 4.0 (can be required upon request) – Training Manuals – Basic chapters I • Trade overview (Navision Install, Business Principles) • Sales Order Management • Sales Prices and Discounts • Customer Service Features • Purchase Order Management • Requisition Management • Item charges • Order promising (ATP,CTP) • Return Management • Analysis and Reporting Basic chapters II • Inventory overview (revision of the basic knowledge from Introduction course) • Setting up Inventory • Availability and Reservation • Setting up Order Tracking • Multiple Location (responsibility centers) • Location Transfers • Warehousing – basic principles • Item Tracking • Terminology • Conclusion Sales Order Management Chapter 2 – page 11 • Overview • Setting up Sales Management • Managing Sales Transactions, including : – blanket orders – sales orders – drop shipment – item reservation – document status – order posting Sales and Receivable Setup I Sales and Receivable Setup II Sales and Receivable Setup III – Customer has set credit 100 LCY (first screen) or 20 000 LCY – the second screen Sales and Receivable Setup IV Setting Up Customers- Ship-to Addresses Setting Up Customers • Reservation Rules • Posting Groups • Sales People • Location • Payment Condition • Combine Shipment • Bill –to- Customer Number • Customer Discount Group Combined Shipment batch job Blanket Orders I Represents a framework for long-term agreement between the company and the customer. Buying large quantities that are to be delivered in several smaller shipments over a certain period of time …. see page 21 Drop shipment I Drop Shipments A drop shipment is the shipment of an item or a consignment of items from one of the company’s vendors directly to one of their customers. Drop shipments are relevant in situations where a company wants to avoid actual handling of the order, such as stocking and delivering, but still wants to fulfill the customer’s order request and include the transaction in a calculation of cost of goods sold and profit. To ensure the efficient handling of drop shipped orders in the program, companies can benefit from using the facilities offered by the Drop Shipments granule. In addition to facilitating a process that involves many tasks and people, the program also ensures the correct inventory value and item cost calculation. The latter becomes particularly important as, even though the sales and purchase transactions of the drop shipment are registered in the program as any other regular order, the drop shipped items do not physically enter the company’s inventory. Handling of a drop shipment can be illustrated as follows: Drop shipment II – diagram (page 28) Drop shipment III – list of actions Drop shipment IV - scenario (Special order no included- only Page 29 explanation) Drop shipment V- scenario Item Reservation Item Reservation – from the Current Line.….. Item Reservation Sales Prices and Discounts Chapter 3 – page 44 • Overview • Sales Prices • Line and Invoice Discounts Type of discounts • Another sales price (ASP) - other than standard Unit Price (UP) on the Invoice tab of the Item card • Line discount in % - can be applied either on ASP or UP • Quantity discount – change of the ASP or UP absolutely or in % in case, when the quantity (sold or purchased) is grater than limit called Minimum Quantity – this is the trigger to start discount calculation • Invoice discounts • Validity of the allocated (assigned) discounts is determined by the dates FROM and TO : see on-line in Navision, quantities or goodwill of the salesperson. • To whom you can assign a discount ? Customer, Customer Price Group, Customer Discount Group, Campaign or to nobody !!!! Customer Price Group setting BEST PRICE Creating Sales Prices for a Campaign I - page 53 Setting up the price for given products (Items) and the name of the campaign : Maintaining Sales Prices – page 54 (quite new) Sales Price Worksheet : similar way you work in a Excel : To fill data in a worksheet automatically the user (you) must run one of the following batch jobs : Suggest Sales Price on Worksheet Suggest Item Price on Worksheet Invoice Discounts – page 66 Customer Service Fetures Chapter 4 – page 71 • Overview • Item Substitution • Item Cross Reference • Nonstock Items: Item Substitutions I Item Substitutions II Item Cross Reference Item Cross Reference Entries Sales Order – using Cross Reference Nonstock Item – setting up Nonstock Item Creating Item from the „Virtual Stock“ Importing Vendor Catalogs as Nonstock Item Scenario 4 – page 85 Scenario 4 : Creation of the Purchase Order (creation algorithm is described in Drop Shipment section of this course) Purchase Order for Nonstock Item Purchase Order Management Chapter 5 – page 92 • Overview • Setting Up Purchases • Managing Purchase Transaction • Purchase Prices and Discounts Overview Granules – page 92 • Purchase Order Management • Alternative Order Addresses • Alternative Vendors • Salespeople/Purchaser • Purchase Line Pricing • Purchase Line Discounting Setting Up Purchases Addendum – VAT correction I Type of VAT must be Full. This option use in the case, when the amount which you would like to book is only VAT amount. This might be useful when created correction entry in order to correct an error having reason in bad calculation of the VAT. The feature may be used if you receive an invoice from a vendor who calculated VAT incorrectly. Will be explained during Financial Course Number 8384A Chapter VAT and Intrastat, clause VAT Correction on Page 66 Addendum – VAT correction II (sempre però tifosi ) Setting Up Exact Cost Reversing Setting Up Alternative Vendors Planning flexibility field : page 100 Purchase Prices and Discounts (page 101) Purchase and Payables setup window Purchase Prices Line Discounts Requisition Management Chapter 6 – page 111 • Overview • Requisition Management Setup • The Requisition Worksheet • Additional Worksheet Features Requisition summary Requisition worksheet Other important parameters setup : page 115 - 116 Basic setup I – Safety Stock and Reorder Point (part one) Safety Stock – : the protection against fluctuation of the demand. If Inventory < Availability = Projected Available Balance= Inventory + Scheduled Receipts (released purchase orders) + Planned Receipts (see requisition worksheet or Availability by period) – Gross Requirement), will drop below this level (Safety Stock level), than we will get a suggestion of the quantity equal to the variance (difference) of the current state of Inventory and Safety Stock Level . Reorder Point - : if the Inventory drops below this level, than when starting batch planning job in requisition worksheet or planning window, which supply you, according to the setup of modifiers, a REPLENISHMENT. You must have realistically setup Lead Time Calculation, Safety Lead Time and Reorder Quantity. If those fields are not setup, you will get a suggestion so, that the replenishment will be just to the level of the reorder point itself. The important modifiers are also Minimum Order Quantity and Maximum Order Quantity - see next slide Basic Setup II – Reorder Point (part two) In this field, you can enter a quantity of stock that sets the inventory level below which you must replenish the item. You can equate the reorder point quantity to anticipated demand during the replenishment lead time. The Reorder Point field plays the following role in the planning calculations when the reorder point>projected available balance>safety stock quantity The program will create an order proposal that is forward scheduled from the date of the requirement that caused the deficit in the projected available balance. The order proposal quantity will, at the minimum, bring the projected available balance up to the level that is specified by the Reorder Point field. The final order proposal quantity may be further adjusted due to additional requirements within the Reorder Cycle, the effects of the reordering policy, and the quantity modifier fields: Minimum Order Quantity, Maximum Order Quantity and Order Multiple. If you leave the field blank, the program sets the reorder point quantity for the item to zero. Note that the field is disabled when you select the reordering policy options of Order and Lot-for-Lot. Basic Setup III – Maximum Inventory In this field, you can enter a quantity that you want to use as a maximum inventory level. When calculating order proposal quantities, the program will then use maximum inventory minus the actual quantity available at the time of the order. Note that depending on the current inventory at the time, this may result in order proposal quantities that cause the projected available balance to exceed the maximum inventory that you define. This field is used only with the reordering policy Maximum Qty. It is disabled for all other reordering policy options. Note that for optimal results, you should set up this field so that maximum inventory > reorder point > safety stock. Basic Setup IV – Minimum Order Quantity In this field, you can specify a minimum allowable quantity for an item order proposal. Once the program has detected the need for replenishment and adjusted the lot size to meet the specified reordering policy, it will increase the quantity, if necessary, to meet the minimum order quantity that you define for the item. This field is intended to be used with a make-to-stock manufacturing policy Basic Setup V – Maximum Order Quantity Basic Setup VI – Minimum Order Quantity In this field, you can specify a minimum allowable quantity for an item order proposal. Once the program has detected the need for replenishment and adjusted the lot size to meet the specified reordering policy, it will increase the quantity, if necessary, to meet the minimum order quantity that you define for the item. This field is intended to be used with a make-to-stock manufacturing policy Action Messages – page 119 • Change Quantity • Reschedule • Reschedule and Change Quantity • New Comment 1 : Replenishment methods can be visible in the filed Replenishment policy (for Purchase, Manufacturing or Transfers) Comment 2 : see page 121 : Drop Shipment Lines- vendor delivers goods directly to the customer – see button Functions – Drop Shipment Planning Worksheet Lines Item Charge Chapter 7 – page 132 • Overview • Setting up Item Charges • Purchase Item Charges • Sales Item Charges •Purchase and Sales Allowances Inventoriable and non-inventoriable cost Setting Up Item Charges (Financial Management, Inventory, Setup) Scenario 1 – Purchase and addition cost on two documents • Purchase order 1 • Posting – F11 • Purchase order 2 • Item Charges on the Purchase Order Line and cost allocation according to the type of the document and method of allocation (amount or uniform allocation) – Item Charge Assignment • Posting – F11 • Examination of the Entries Statistics – F9 Non-inventoriable Costs Statistics after cost allocation 2 different documents Order Promising Chapter 8 – page 141 • Overview • Promising Orders to Customers • Estimating Purchase Order Receipt • Estimating Transfer Order Receipt Overview Available to Promise (further only ATP) Capable to Promise (further only CTP) ATP – based on the inventory reservation system – performing the availability check (calculation of the date of delivery ) CTP – based on WHAT IF scenarios. Earliest date that item will be available If no items that can be available, no inbound orders- purchase, transfer , return, production – calculate Earliest date, create Order lines, and reserve the inventory. Maybe integrated to the production scheduling, transfer and purchase Subject of this section • To setup program Navision in such a manner, that it can be used to calculate delivery dates according to the set parameters and net and gross requirements • Such a setup of Navision can help salesman to increase throughput considerably Definitions I Requested Delivery Date: The date that the customer has asked for the order to be delivered at their address. This date must be entered manually in order to affect the date calculation. Promised Delivery Date: The date that the company has promised the order to be delivered at the customer’s address. This date must be entered manually in order to affect the date calculation. Planned Delivery Date: The date that the company has planned for the order to be delivered at the customer’s address. This date is calculated by the program. If a requested delivery date exists, the planned delivery date will be the same. Definitions II Planned Shipment Date: The date on which the picking process is finished, and the items are shipped from the warehouse. This date is calculated by the program. Shipment Date: The date on which an item must be available in inventory. The picking process can start on this date. This date is calculated by the program. Outbound Warehouse Handling Time: The time it takes to pick, pack, and label the items of an order. Shipping Time: The time between the items being shipped from the warehouse to being delivered at the customer's address. Definitions III Definitions IV Calculation priorities (addendum) Shipping Time Setup Outbound Warehouse Handling TIme Setup Order Promising Setup Scenarios (examples) I • Customer has sent an order without specification of RDD (Requested Delivery Date) – available inventory (calculated form Inventory entries) are available in the time window in which the order belongs to. (see scenario 1 on the page 149) – Inventory Items are not available – (see scenario on the page 150 : stockout warning message) Scenario 1 Scenario 2 – general version Scenario 2 – more specific version Availability (from the footer button from Sales Lines) Scenario 3 • Sales Order • Requested Delivery Date i required by customer • Location Blue (Czech Modry, Germany Blau) • Observe carefully fields Plan DD, Plan SD and SD in the Sales Lines • Backward calculation – Navision verifies, if item is available for required delivery (in time and in quantity) and calculates SD (Shipping Date) • Plan DD is not changed (influenced) • Points 6 a 7 on the page 153 are not mentioned for the sake of simplicity (use for self study) Scenario 4 -1 • Customer 20000, Item = 70200, Quantity = 30, REQ DD= 28.1.01, Location =Zelený (Freen, Grun) • Salesman is checking , if according to the inventory level and time setting the requested term of delivery is realistic • Sales Order is created and we will get a message : „Stockout Warning Message“ where our answer will be YES=ANO=Ja Scenario 4-2 • Sales Order- button Order- Order Promising • Navision will copy information to REQ DD a Original Shipment Date • Button Calculate : Capable to Promise= CTP (chosen for 4-2) Promising Sales Order Delivery in Other Situation (8326AY-08.pdf ) Estimating Purchase Order Receipt (page 160) Self study : definitions on the page 160 – attention to similarity with the term used on the Sales side !!! Order Date (when the vendor was asked to deliver) Planned Receipt Date (calculated and expected date ) Setting up • Description on the pages 163 and 164 • Students will follow scenarios 7 - 11 (if asked and necessary) • Attention to the mote on the page 169 Returns Management Chapter 9 – page 176, 8362a_9.pdf • Overview •Setting up Returns Management •Managing Returns from Customers •Managing Returns to Vendorsipt Overview Basic – Setup Setup of Return Reason Codes (RRC) Tasks connected to Return Orders on the Sales Side –external processes Tasks connected to Return Orders on the Sales Side – internal processes Scenario 1 - 1 • Sales order for 5 pcs of 70011 to the Customer 10000 and post it ( F11) • Return Order (RO) – Functions – Copy Document – copy of the lines from the chosen posted (booked) invoice • Complement of the Reason code (see BLAU) • Complement of the external document to the Return Order header and post Item Ledger Entries and GL Entries after posted Return order and posted credit memo Scenario 1-2 (repeate again SO, 5 pcs, 70011, and so on…) • If we have Exact Cost Reversing Mandatory Field = Yes, than the copy of the posted – shipped line will be automatically applied with the Return Order Line • Client would like to change 70011 (Glastur) with wooden door (Holztur) 70010 • Apply entries with Return Order (RO) line using Appl From Entry field – use F6 please • Put another line to RO with 70010 and quantity will be minus • Add compensation 5 % - another line – Charge Items and calculate directly on the line 5 % of the 7010 unit price - in Excel =a*b, in Navision only a*b. • And Allocate Charges – standard function RO after data entry Move negative lines Move Negative Lines Posted credit memo Item Ledger Entries and posted shipment for wooden door (holztur) Scenario 2 : Sale – Repair – Sequence of Activities Purchase Item Ledger Entries after Purchase Sales of the 2 products to the customer 10000 Sales Order and Item tracking lines (serial numbers assignment) Item Ledger Entries after Sale of 2 products 10000 from the non assigned Location code Return Order Create Related Documents …… Ledger after all actions Analysis Reports • Overview •Analysis Reports •Analysis and Dimensions •Sales and Purchase Budgets Analysis Reports • The user can create and modify reports without asking services from NSC • Reports are based on posted entries • Entries original from Sales, Purchase, Inventory movement (inventory adjustments) and transfers • Analytical report is composed out of objects , which you want to analyze out (lines) and its analytical parameters determining how those object will by analyze Sales or Purchase Analytical Reports I Analytical Reports II Analytical Reports III – Analysis Columns template Creation of the analytical report Consecution • Setting up line template • Setting up column template • Name of the report and choosing templates for lines and columns Templates for lines (for the columns we will use predefined template Sales) Analysis view card Analysis I Analysis II – filter for US area Analyzed values from where are taken Sales Amount Cost Amount Non-Inventoriable Amount ( Quantity Unit Cost Standard Cost Indirect Cost Unit Price Item Ledger Entry Item Ledger Entry Item Ledger Entry Item Ledger Entry Item Card Item Card Item Card Item Card Column Template for Sales I Column Template for Sales II Another analysis Inventory Management – overview – Quantity on hand Item by Location Projected Availability I Item availability by period Reservation system (PO –SO) Reservation system (PO –SO) Sales Order – Purchase Order - Reservation Entries Order Tracking (Page 18 course 8390A) Order Tracking Scenario 2-1 How to do it ….. Reordering policy = Fixed Order Quantity Item = 80205 see Order Tracing Policy and set up option 3 (tracking and messages) Location Code = Blue Sales Order 100 pcs Navigation pane- Purchase- Planning – Requisition worksheet Function – Calculate Plan (do not forget Starting and Ending date) See Order Tracking Functions- Carry out Action Messages Try to see Order Tracking from PO Order Tracking Scenario 2-2 Order Tracking Scenario 2-3 Order Tracking Scenario 2-4 Multiple Location - overview Setting up a Company with Multiple Locations I Setting up a Company with Multiple Locations II Setting up a Company with Multiple Locations III Locations vs. Responsibility Centers Must be physical locations. Customers and vendors can be linked to locations. Specifically used for handling inventory. Do not have to be physical locations. Help to limit data access for users when linked to User IDs. Can be used to direct inventory handling or to handle customer/vendor relationships. Setting up a Company with Multiple Locations IV Location transfers Setting Up Transfer Routes Transfer Order 1 Transfer Order 2 Requisition Management Chapter 6 – page 111 • Overview • Requisition Management Setup • The Requisition Worksheet • Additional Worksheet Features Summary of the requisition functionality Warehouse Management Course 8390A – Chapter 5 • Overview • Bins - setup • Warehouse Receipt and Put Away • Warehousing – basic principles setting up locations Bins Scenario 1 – Receiving a Put Away from the Purchase Order 70 unit of LS-120 and 80 units of LS-150 from Vendor 10000 to Silver Warehouse Warehouse Entries (Warehouse Registers) Scenario 2 : Receive and Put Away with a Warehouse Receipt Document Scenario 2 : Receive and Put Away with a Warehouse Receipt Document Creating Put Away : Location must be setup as follows : Put Away Lines Warehouse Put Away Registered Put Away Picking I Picking II Picking III Picking IV Shipment I Shipment II Shipment III – warehouse entries Shipment II Warehouse Management (WHM) I Shipment (WHM = Warehouse Management)