Thanks to Lowes Project from Capgemini. Learn from this project peoplesoft Inventory and costing module prepared ppt by own after lowes project.

1. Peoplesoft Inventory and Costing 9.1
Senthil kumar Janakiraman
Peoplesoft Functional Consultant
email Id: Senthil-kumar.janakiraman@capgemini.com
Together. Free your energies

2. Peoplesoft Inventory and Costing 9.1
• Overview of Inventory & Costing
• Workflow
• Configuration Setups
• Transaction Flow
• Reports

3. Overview of Inventory & Costing
Inventory:-
PeopleSoft Inventory enables you to
Increase your Reduce your
Inventory Accuracy Carrying Costs
Customer Service Levels Labour Costs
Inventory Write-offs
PeopleSoft Inventory helps you make faster, more accurate decisions, which is
critical in today's complex global inventory environments.
Costing:-
PeopleSoft Cost Management supports a variety of inventory costing methods
that enable you to effectively Track Costs in Production as well as in your Finished
goods supply chain. It also enables you to easily perform Revaluations, Analyze
manufacturing performance and Perform Cost Simulations.

4. Peoplesoft Inventory Features
 Define inventory business units independent of your general ledger.
 Use a multilevel storage structure to provide flexibility and simplify transaction processing.
 Provide ability to drive inventory balances negative and reconcile discrepancies.
Stock and Location Replenishment :-
• You need to know when your supply items are getting low. With powerful
automation capabilities and intuitive data screens, it’s easy to replenish materials
with PeopleSoft Inventory.
You can:
 Generate a replenishment requisition based on current stocking levels, economic
order quantity (EOQ), and reorder point.
 Use flexible, ad-hoc requisitioning for backorder management.
 Track reorder points based on multiple criteria.

5. Peoplesoft Costing Management Features
• Item Costing:-
Cost Management provides full item costing functionality.
- Add costs in addition to material, labor, machine, and conversion.
- Calculate additional costs based on percentage of material costs, percentage of total costs, or amount per unit.
- Establish transfer prices or mark-up percentages for items transferred at different costs to other business units.
• Landed Costs: –
To track the complete cost of an item, you can include the landed cost charges in the item’s cost. Landed cost charges can
include expenses such as freight, insurance, duty, and handling.
- Specify the calculation and allocation method for each charge define at landed cost charges for items.
- Create cost templates specify item, item category, vendor, vendor location, ship-to ID, and purchasing business unit.
- Directly associate, in PeopleSoft Purchasing, cost templates and individual charges with a purchase order header or purchase order
schedule
• Support of Multiple Costing Methods :–
- Support the need for financial, governmental, and management reporting, you can maintain multiple cost books within a
PeopleSoft Inventory business unit in those environments where you buy and sell inventory with no manufacturing.
- Items in each cost book, you define a profile, consisting of a receipt cost method, a cost flow, and a deplete cost method, to
value inventory transactions involving those items.
- Costing approach you choose can be independent of how the inventory is physically moved. Methods are Non-cost,
Standard, FIFO actual, LIFO actual, By specific lot ID and By specific serial ID, Perpetual weighted average, Periodic weighted average
and Retroactive perpetual average.
• Inventory Accounting :-
Define the accounting entries for each transaction, transferring from one location to another location, Create Costed
Transaction records for all inventory BU’s and IntraUnit processing to create balancing entries for transfers between Chartfields within the
same BU.

6. Inventory Workflow
Sales Processing Invoicing
Sales Return
Processing
Inventory Control
INVENTORY
Purchasing Return
Processing
Purchasing Processing
Receiving and Billing

7. Inventory Integration with Other Modules
PeopleSoft Purchasing:- Requisition Created & Send from
Product Supply
Configuror
Order Mgmt
Planning
Purchasing eProcurement Purchasing to Inventory as a Material Stock request if stock is available. If
stock is unavailable, you can add the requisition to a PO and dispatch it to
a vendor in Purchasing. Items on a PO are received from the vendor in
Peoplesoft purchasing, the items can be put away in Peoplesoft Inventory
BU using the Putaway processes.
Maintenance Manufacturing PeopleSoft Payables:- The Landed Cost Extraction process in
Management
PeopleSoft Payables can pass cost adjustments to PeopleSoft Cost
Management for the stock putaway in PeopleSoft Inventory .
Cost
Peoplesoft Order Management:- When PeopleSoft Inventory ships
Engineering
Management the items, the data is updated on the sales order. PeopleSoft Inventory also
sends sales order information to PeopleSoft Billing for invoice creation.
Peoplesoft Billing:- From PeopleSoft Order Management, can be
Promotations
Peoplesoft passed from PeopleSoft Inventory to PeopleSoft Billing for invoice creation,
Mgmt or detailed pricing can be passed using miscellaneous charge codes,
Inventory General Ledger
including discounts, surcharges, freight, taxes, and value-added tax (VAT).
Peoplesoft Cost Management:- Landed Cost Extraction Process in
Demand Peoplesoft Payables can pass cost adjustments to Peoplesoft cost
Planning
management. Calculates the cost and creates the accounting entries to
Commitment
Control record Putaways, shipments, adjustments and other material movements.
PeopleSoft Project Costing:- Creating a material stock request, you
Quality can enter information to be used by PeopleSoft Project Costing
Peoplesoft General Ledger:- Accounting entries recording the
activity in Peoplesoft inventory are retrieved from Cost Management create
Journal entries that are posted in the GL Business Unit.
Inv Policy
Projects Billing Projects
Planning

8. Configuration Setups
- Inventory Business Unit Set Ups
- Inventory Structure Tables Set Ups
- Putaway Options Set Ups

9. Inventory Business Unit Definition

10. Inventory Business Unit Options

11. Business Unit Options – Shipping Options, Replenishment Options, Revenue and Billing Defaults, RMA
Defaults and Estimated Shipment Definition.

12. Inventory Business Unit Counters

13. Inventory Business Unit Books
Note: - Associate the cost book with a PeopleSoft Inventory business unit, ledger, and ledger group.

14. Inventory Structure Tables Set Ups
• Storage Location Types
• Inventory Status Types
• Item Storage codes
• Return Type codes
• Item Packaging Codes
• Backlog Reason codes
• Hold Codes
• Transfer Attributes Defaults
• Storage Rules

15. Inventory Structure Tables setup

16. Putaway Setups

18. Common Configuration Setups for Inventory & Costing :-
Define Units of Measures
UOM Class UOM UOM Code Base UOM
Quantity Each EA Yes
Quantity Box BX No
Quantity Gram GR No
Weight Kilogram KG No
Quantity Dozen DZ No
 Define Freights Carriers DHL
 Define Category Codes and Category Sets
 Define Catalog Groups
 Define Suppliers
Suppliers
Newyork Paris India
 Define Buyers
Buyer Category Ship to
Larry Hardware Paris
Raman Software India
 Define Items

19. Inventory and Costing Transaction Flow
Step-1 Creation of Online Purchase Order
Step-2 Creation of Goods Receipt Note
Step-3 Inventory Putaway Process
Step-4 Creation on PO – Receipt Voucher
Step-5 Land Cost Extract Process
Step-6 Generate Costing Transactions and Creating Accounting Entries
Step-7 Review the Cost Item Balance
Step-8 Creating Adjustment Inventory Transaction – Interunit Transfer
- Decrease Inventory Adjustment
- Increase Inventory Adjustment

20. Step-1 Creation of Online Purchase Order
Navigation Path: Purchasing -> Purchase Order-> Add/Update PO’s
* After Save PO Bottom it become generates PO ID & PO status became Approved from Open
* Click on Dispatch Button it will run Dispatch Process

21. Run PO Dispatch Process - PODISP
PO Status : Dispatched

22. Step-2 Creation of Goods Receipt Note
Navigation Path: Purchasing  Receipts  Add/update Receipts

23. Process Receipts :-
Select Application Process Name:
Receiver Interface Push .
Receipt Push Inventory.

24. After getting PO_RECVPUCH Process then review the Receipt Status : Moved
Receipt has been processed by RECVPUSH, which creates the Landed Cost
Transactions for New Receipts, and may Interface them to PeopleSoft Asset Management,
PeopleSoft Inventory, or PeopleSoft Manufacturing.

25. Step-3 Inventory Putaway Process
Navigation Path: Inventory  Putaway Stock  Load Staged Items
Navigation Path: Inventory  Putaway Stock  Correct Staged
Errors
Note: If review any Items showing errors status mostly the storage Location will be blank or not define. Remedy to define the storage location then
system will allow to saving.

26. Stock room Feedback:-
Navigation Path: Inventory  Putaway Stock  Stockroom Feedback
Note: After Review and update the actual putaway information based on a putaway plan
click on putaway checkbox and click on Top Right Side Putaway Button.

27. Complete Putaway Process
Navigation Path: Inventory  Putaway Stock  Complete Putaway

28. Step-4 Creation on PO – Receipt Voucher
 Search from voucher receiver Lookup criteria page enter Receipt No or
PO No. and select & click on copy selected lines.
 After Enter Invoice no. & Date and save the voucher.
 Check Entry status : Postable, Match Status: Ready, Approval Status:
Approved and Post Status: Unposted.
 Run the Match Process Name: AP_MATCH.
 After Match Process Run Status will be change to Matched
 Run the Voucher Posting
 Review the voucher Post status : Posted

29. Step-5 Land Cost Extract Process

30. Step-6 Generate Costing Transactions and Creating Accounting Entries

31. Transaction Costing and Accounting Line Creation Process flow:-
Cost flow for Inventory Transactions:-
Inventory Transactions
(TRANSATION_INV) Transaction Costing:-
Process Name: Transaction_INV
Inventory system posts inventory transactions into the
Transaction Costing Process TRANSACTION_INV table, from there Peoplesoft
Cost Management can assign costs to the
Cost Accounting Creation Process transactions and create accounting entries.
Accounting Line Creation
Process Accounting Line Creation Process flow:-
Process Name: CM_ACCTG_LINE
The Cost Accounting Creation Process
Accounting Entries (CM_CSTACTG) is an application engine process.
(CM_ACCTG_LINE) 8. Transaction Costing Process (CM_COSTING). This
application engine process picks up these inventory
transactions and attaches costs to each transaction
based on the item’s cost Profile.
Journal Generator Process 9. Accounting Line Creation Process (CM_ALC). This
application engine process picks up the calculated
costs, creates the accounting entries, and stores the
entries in the CM_ACCTG_LINE table.
Journal Entries
for the General Ledger

32. Step-7 Review the Cost Item Balance :-
Navigation Path: Cost Accounting  Item Costs Review Costs  Item Cost

33. Step-8 Creating Adjustment Inventory Transaction – Interunit Transfer :-
Creating Increase / Decrease Inventory Adjustments
- Decrease Inventory Adjustment
- Increase Inventory Adjustment
Navigation Path: Inventory  Manage Inventory  Adjustments

34. Generate Costing Transactions:-
Process Name: CM_TRANSACTIONS
Navigation Path: Cost Accounting  Inventory and Mfg Accounting Create Accounting Entries  Cost Accounting
Creation
Process Name: CM_CSTACCTG
Navigation Path: Cost Accounting  Inventory and Mfg Accounting Create Accounting Entries  Cost Accounting
Creation

35. Peoplesoft Delivery Reports:-
Inventory Reports:-
- Peoplesoft Inventory Storage Locations – Report Id INS2000
- Peoplesoft Inventory Putaway Plan – Report Id INS3500
- Utilization Type Calculation Report – Report Id INS5100
- Slow Moving Inventory – Report Id INS5200
- Negative Balance Report – Report Id INS5300
- Stock Status Report – Report Id INS5400
- Lot Trace Report – Report Id INC5575
- Inventory Value Report – Report Id INS7000
- Inventory Balance Audit – Report Id INS9090
- Consumer Usage Reconciliation – Report Id INS9070
Costing Report :-
-Average Cost Adjustment /PPV – Report Id CMS1000
-Item Cost profiles – Report Id CMS2000
-Overridden Cost Profiles – Report Id CMS2001
-On Hand Value Report – Report Id CMS2010
-Total Purchase Variance – Report Id CMS3010
-Standard Purchase Variance – Report Id CMS3020

36. How to get Peoplesoft Inventory & Costing Context Helper
Senthil Kumar Janakiraman – Functional Consultant
email Id: Senthil-Kumar.janakiraman@capgemini.com
Together. Free your energies