warehouse management process-documantation-main draft-20150520

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1. Master data management...............................................................................................................2
1.1. Data management...................................................................................................................2
1.1.1. Business partner...............................................................................................................3
1.1.2. Product............................................................................................................................4
1.1.3. Price applications.............................................................................................................4
1.2. Financial configuration.............................................................................................................4
1.2.1. Accounting information on the business partner................................................................5
1.2.2. Payment methods............................................................................................................5
1.2.3. Financial accounts............................................................................................................5
1.2.4. Payment terms.................................................................................................................5
1.3. Alerts......................................................................................................................................6
2. Inventory accuracy..........................................................................................................................7
2.1. Warehouse and storage bins....................................................................................................7
2.2. Product valuation....................................................................................................................7
2.3. Physical inventory....................................................................................................................8
2.4. Goods movements...................................................................................................................9
2.5. Traceability ...........................................................................................................................10
3. Returns.........................................................................................................................................11
3.1.1. Return to vendor............................................................................................................11
3.1.2. Return from Customer....................................................................................................12
4. Asset management .......................................................................................................................13
5. Reports.........................................................................................................................................14
5.1.1. Product movements report.............................................................................................14
5.1.2. Material transaction report.............................................................................................15

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5.1.3. Traceability report..........................................................................................................15
5.2. Stock report..........................................................................................................................16
5.2.1. Valued stock report........................................................................................................16
1. Master data management
1.1. Data management
 Data Management: Business Partners, Products, Price Applications
 Financial ConfigurationForAdvancedPayablesAndReceivables(Apr)
 AlertManagement
The following elements are part of master data management:
 Business partners (customers, vendor/creditors, employees)
 Products
 Price applications
 Data import
Master data manages a company's information (products, customer, vendors, etc) and isa
fundamental aspect for guaranteeing the coherence and tracking of processes. Master data isthe
core source of information forthe company and for the openbravo ERP. Theyare used throughout the
entire application. Maintaining exclusive coding, avoidingduplications and sharing relevant
information among all areas of the company are some
Of the challenges. Openbravo ERP helps companies toorganize and centralize key company
data, facilitating the smooth flow of information among all areas implicated indifferent
company processes.
As indicated inthe role section, there are two methods tomake records unavailable inthe
system:
 Delete the record
 De-activate the record
De-activated records:
 Not available forselection inscreens, but available forreports
There are two reasons for de-activating but not deleting records:
 The system requires the record foraudit purposes
 The record is referenced byother records. For example, business partners cannotbe

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Deleted if there are existing documents (orders, invoices, etc.) Forthis business partner. In
this case, the business partner isde-activated preventing this record from beingused in
future entries.
1.1.1. Businesspartner
A business partner takes part inthe daily operations of the business, either asa customer,
vendor, employee, openbravo user, sales person, etc. Business partners define all parties with
whom the company interacts. The same business partner could be a customer, a vendor, an
employee, etc. Each type of business partner has a varying requirement fornecessary
information. The values are entered inthe customer, vendor/creditor and employee tabs.
Some examples of information common toall business partners include the following:
 Commercial name
 Description
 Tax id
 URL
 Etc
This information isstored on the general tab of the business partner:
Business partners are grouped into categories. Several categories are bydefault setup inthe
business partner category screen, for example:
 Customer

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 Supplier (vendor)
 Employee
1.1.2. Product
Products are items orservices purchased from a vendor and/or sold to customers. All items used
in price lists and orders need tobe identified and setup inthe application.
1.1.3. Price applications
In this section we will describe the several different pricing strategies that openbravo ERP
Provides:
 Price list
 Price list schema
Price list
The price list contains products with their prices. With a price list, users will know whatprice to
charge to which business partners atall times. Through the pricing set upit is also possible to
apply discounts forproducts.
Only one price list can be assigned to each vendor/customer
Price listschema
A price list schema isused to make bulk changes to a price list. The filter tomake changes can be
based on:
 Product
 Product category
1.2. Financial configuration
Certain configurations are required forthe advanced payables and receivables functionality in
finance.
 Accounting information onthe business partner
 Payment methods
 Financial accounts
 Payment terms

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1.2.1. Accounting informationon the businesspartner
When the general ledger gets added tothe client ororganization, the default accounting
information should include the accounts that will appear onbusiness partners inthe customer
and/or vendor section:
1.2.2. Payment methods
In order to process financial documents, the payment methods with information related to
accounts receivables and payables must be configured. For each payment method, suchpaying
by check, cash or wire transfer, itis defined inthe payment method whether itwill be used for
paying vendors (payment out) orwhether customers will use this method topay to us (payment
in). Furthermore the accounts that will be used forposting into the general ledger atdifferent
points inthe process will be defined. Payment methods can be assigned to the business partner,
in the customer and/or vendor tabs.
Also, the details of these configurations are explained inthe financial account to
Reconciliations section.
1.2.3. Financial accounts
Financial accounts are set up to handle the flow of money inthe application. For each bank
account or cashbook, a financial account is created. On the financial account we can view the
balance of the account and the transactions related toa certain account. On the
Financial account it is indicated whether itisof the type bank or not. For each financial
account, the payments methods that are used forthe particular account are assigned. The
financial account isused to keep track of all the transactions related toaccounts payables
and receivables. Inthe financial account, bank statements can be imported and
reconciliations of bank and cash transactions take place inthis screen. Financial accountscan
be assigned tothe business partner, inthe customer and/or vendor tabs.
Also, the details of these configurations are explained inthe financial account to
Reconciliations section.
1.2.4. Payment terms
Payment terms determine the due date forpayments inaccounts receivables and payables. A
short explanation isgiven inthe master data management - business partner, inthisdocument.

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1.3. Alerts
 Alerts are notifications about critical orimportant situations within the ERP on
an individual user level.
 Errors in the application dictionary (atable without asummary key column)
 Errors in master data (business partner without anaddress)
 Notifications about critical situations (overdue payments)
 Informative alerts
 Each alert rule can have one or more recipients
 Logged in, the user only sees hisown alert messages.
 The user then has the option of commenting and/or closing the issue.
The process of alerting can be divided into:
 Alert definition - defining and activating alert rules
 Validation - the background process loops through all active alert rules ona scheduled
basis
 Notification - the user sees the alert icon with the number of awaiting alert messages
Notification
The important part for the user isthe validation, the actual management of the alert. Whenan
alert is detected forthe current logged-in user, the alert indication atthe top of the screen
indicated the number of awaiting alerts:
Clicking onthis alert link takes the user tothe alert management screen or the user can directly
go to that screen with the quick launch. Inthe alert management screen the usercan see the
details of the alert, make comments and indicate whether the issue isfixed:

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2. Inventoryaccuracy
Warehouse management deals with processes such asgoods receipts, goods shipments,
physical inventory, inventory valuation, tracking and movement of goods.
In this chapter we are going to see:
 How to create warehouses and storage bins
 How to execute aphysical inventory
 How to move inventory inand around the warehouse
 How to create and modify the value of the inventory
 How to trace the inventory throughout the company
 The reports that are available
2.1. Warehouseandstorage bins
The warehouse represents the physical location of your stock and is the third level of organization
below client and organization. To define the exact location of stock, warehouses are divided into
storage bins.
2.2. Product valuation
One of the most important components of warehouse management isthe valuation of the
goods stored. This way we can find out how much our inventory isworth.
There are two standard methods defined inalgorithms tokeep track of cost:
1. Standard (fixed) cost
2. Average cost

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Standard cost is added manually inthe [costing] tab of the product screen. Average costis
calculated by the system using the costing algorithm. All transactions for a product trigger a
calculation. Cost iscalculated once per transaction. Each transaction type has its own default
method to get the cost, which can be overridden bythe algorithm. For example, the default
calculation for cost after a goods receipt is:
Cost calculated based on the related purchase order price, not including taxes.
Exceptions
 If the price of the related order ischanged afterwards there isno adjustment done on
the calculated cost. This cost difference isconsidered when the purchase invoice
With the new price isprocessed. Aswould be considered aprice change that happens
only inthe invoice.
 If there isnot related order ituses the newer of the following 3values:
Last purchase order price of the receipt's vendor forthe product.
 V Purchase price list of the product.
 Default cost of the product.
For the initial stock creation using aphysical inventory, the purchase price list unit price isused.
Standard cost
The cost isstored for a date range in the [costing] tab of the product. This cost isused for all
transactions during that time.
Average cost
The cost of the products iscalculated by the application. The manually kicked off process used to
calculate the average cost is generate average cost process, which isused if the background
process is not scheduled.
Average cost process:
 For each transaction the application reviews the current stock and the new received
stock on that receipt date.
 If you have a receipt inDecember 2nd, 2010 the process will calculate the stock level
on that date (not including the quantity of the receipt). And that stock level will we
valuated with the previously calculated cost.
2.3. Physical inventory
The physical inventory isthe activity tophysically count individual items inthe warehouse ata
particular point in time and to update their inventory count inthe system. A physical inventory
can be executed based ona count list populated bythe system based onthe
Filters entered bythe user or on a manually entered count list.

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Reasons why a department would conduct a physical inventory:
 To verify the physical amount, condition and location of inventory items
 To identify, document and add items tothe inventory that are physically onhand and
meet the quality criteria, but that are not currently shown as part of the inventory
 To ensure that legitimately transferred ordisposed items are nolonger appearing inthe
inventory listing
 To identify any missing or damaged items that need tobe located, repaired or
replaced.
The physical inventory screen:
2.4. Goodsmovements
A goods movement isto document the move of products between warehouses orstore bins. The
move isregistered inthe goods movements screen.

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2.5. Traceability
Traceability in the application helps companies isolate the source and extent of safety or quality
control problems. This helps reduce the distribution of unsafe or poor-quality products, which in
turn reduces potentially bad publicity, liability and recalls. The betterand more precise the
tracing inthe application, the faster acompany can identify and
Resolve safety and quality problems.
Companies have the following objectives forusing traceability inthe application:
 Improve supply management
 Facilitate trace back for safety and quality
In order to track which product was supplied bywhich vendor and/or shipped towhich
customer it is necessary that an attribute set isused for that product.

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3. Returns
There are different typesof returns and follow up. The returns that will be reviewed:
 Returnto vendor:Thisflowmanagesvendorreturnsorders,the physical outboundof
returnedmaterials andthe financial settlementforvendorrefunds
 Returnfromcustomer:Thisflowmanagescustomerreturnsorders,the physical inboundof
returnedmaterialsandthe financial settlementforcustomerrefunds
3.1.1. Return to vendor
Two windowstomanage thisflow:
 Return to vendor window:Youcan finditinthe menu Procurementmanagement||
Transactions || Return to Vendor
The Linestab isnot editable,sincethe returnedlinesalwayscome fromreceiptlines,toavoid:
 To see positive valueswhile are negative inthe DB
 Enter linesthatare not linkedtothe original receiptlines
 Editattributes,productsandso havingeitherthe productsorattributesdifferentthanthe
shipmentline
To enternewlinesyouneedtoclickthe button

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3.1.2. Return from Customer
Two windowstomanage thisflow:
 Return from Customerwindow:Youcan finditin the menu Salesmanagement||
Transactions || Return from Customer
Note:Documentcanbe printedandemail
The Linestab isnot editable,sincethe returnedlinesalways come fromshipmentlines,toavoid:
 To see positive valueswhile are negative inthe DB
 Enter linesthatare not linkedtothe original shipmentline
 Editattributes,productsandso havingeitherthe productsorattributesdifferentthanthe
shipmentline
To enternewlinesyouneedtoclickthe button

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4. Assetmanagement
Asset management inopenbravo ERP deals with the fixed assets ina company: long term, tangible
assets held forbusiness use and not expected tobe converted to cash inthe
Current or upcoming fiscal year. Examples are manufacturing equipment, real estate,
furniture, etc.
Part of asset management isthe amortization: the gradually reducing of the value of a limited life or
intangible asset through periodic changes. Openbravo ERP uses alinear type of amortization. This
means that each time period (month, year, depending onthe set up), the value reduces with the
same amount.

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5. Reports
5.1.1. Product movementsreport
An example of the output:

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5.1.2. Material transaction report
Only shows transactions related tobusiness partner. For example:
5.1.3. Traceability report
Only shows products that have attribute set value selected. The report isgrouped by
attribute set value.
For example:

16. 5.2. Stock report
The report shows the stock level, withthe possibility tofilter byproduct, product category and
warehouse location.
5.2.1. Valuedstock report
This report shows the stock for a particular warehouse and the value of the stock, based on
quantity instock multiplied bythe cost of the product. The filter of product
Category can be selected.
Example of the output: