Implementation Guidelines

Once Aggregated Inventory has been activated, inventory should be posted to the aggregated location instead of the store locations. If there are open documents in the database, you need to ensure that the outstanding quantity can be received, shipped, and invoiced at the aggregated location instead of the store locations. In addition, the remaining inventory in the store locations must be moved to the aggregated location.

Below, you find detailed descriptions of the steps required to handle open documents and entries. Aggregated Inventory comes with an Assisted Setup designed to guide you through these steps.

Note: You can skip the following steps, if you are implementing Aggregated Inventory in a new database that does not have any documents or posted entries.

Handle Open Purchase Documents

Released and partially posted purchase orders, return orders, invoices, and credit memos must be handled to ensure that outstanding quantities can be received and invoiced at the aggregated location.

Handling Released Documents:
- For documents that have been released but not yet posted, locations are automatically switched from store locations to aggregated location, in accordance with the location setup. This ensures that inventory movements will be posted to the aggregated location after the go-live.
Handling Partially Received Documents:
- Lines with partially received quantities must be split into two:
  - The original line's quantity is updated to reflect the quantity already received. Hence this line becomes fully received at the store location.
  - A new line is created to hold the outstanding quantity, which will be received later at the aggregated location.

By completing this step, you can effectively manage purchase orders, return orders, invoices, and credit memos with Aggregated Inventory, facilitating the inventory management at store and aggregated locations.

Handle Open Sales Documents

Released and partially posted sales orders, return orders, invoices, and credit memos must be handled to ensure that outstanding quantities can be shipped and invoiced at the aggregated location.

Handling Released Documents:
- For documents that have been released but not yet posted, locations are automatically switched from store locations to aggregated location, in accordance with the location setup. This ensures that inventory movements will be posted to the aggregated location after the go-live.
Handling Partially Shipped Documents:
- Lines with partially shipped quantities must be split into two:
  - The original line's quantity is updated to reflect the quantity already shipped. Hence this line becomes fully shipped at the store location.
  - A new line is created to hold the outstanding quantity, which will be shipped later at the aggregated location.

By completing this step, you can effectively manage sales orders, return orders, invoices, and credit memos with Aggregated Inventory, facilitating the inventory management at store and aggregated locations.

Handle Partially Posted Drop Shipments and Special Orders

To ensure that outstanding quantities can be received, shipped, and invoiced at the aggregated location, released and partially posted drop shipments and special orders must be handled. When it comes to drop shipments and special orders, two documents, a purchase order and a sales order need to be handled.

Handling Released Documents:
- For documents that have been released but not yet posted, locations are automatically switched from store locations to aggregated location, in accordance with the location setup. This ensures that inventory movements will be posted to the aggregated location after the go-live.
Handling Partially Received or Shipped Drop Shipments and Special Orders:
- Lines with partially received or shipped quantities must be split into two:
  - The original line's quantity is updated to reflect the quantity already received or shipped. Hence this line becomes fully received or shipped at the store location.
  - A new line is created to hold the outstanding quantity, which will be received or shipped later at the aggregated location. The link between the new purchase and sales line is updated to make sure that standard functionality works correctly.

Handle Open Transfer Orders

To ensure that outstanding quantities can be shipped and received at the aggregated location, below are the steps to handle existing transfer orders.

Handling Released Transfer Orders:
- For transfer orders that have been released but not yet posted, locations are automatically switched from store locations to aggregated location, in accordance with the location setup. This ensures that inventory movements are posted to the aggregated location after the go-live.
Handling Partially Shipped Transfer Orders:
- Quantities on partially shipped lines must be split into two:
  - The original line's quantity is updated to reflect the quantity already shipped. Hence this line becomes fully shipped at the store location.
  - A new line is created to hold the outstanding quantity, which will be shipped later at the aggregated location.
Handling Quantity in-transit:
- It is not possible to split the line or change the location. So the idea here is to fully receive the in-transit line, then make an inventory correction to move the received quantity back to the original transfer-from-location. Next, create a new line to ship this quantity from the original transfer-from-location. As a result, the quantity is in-transit again. But this time, it is ready to be received later at the aggregated location. Here are the steps:
  - The quantity in-transit is fully received at the store location.
  - An inventory correction is posted to move the received quantity from the store location back to the original transfer-from-location.
  - A new line is created and shipped to move this quantity from the original transfer-from-location to the in-transit location.
  - The in-transit quantity is now ready to be received later at the aggregated location.

Handle Open Item Ledger Entries

This is the last step. You have to complete the preceding steps first before starting this one. The purpose of this step is to move the remaining inventory in the store locations to the aggregated location.

Closing Open Positive Item Ledger Entries:
- A negative adjustment is posted to the store location to close the entry.
- A positive adjustment is posted to move the remaining inventory to the aggregated location. Note: The new entry remains open until it is later applied to an inbound entry. However, the cost of the new entry is pulled from the original positive item ledger entry.
Closing Open Negative Item Ledger Entries:
- A positive adjustment is posted to the store location to close the entry.
- A negative adjustment is posted to move the remaining inventory to the aggregated location. Note: The new entry remains open until it is later applied to an inbound entry. The cost from the inbound entry is forwarded to the new entry.

The Adjust Cost – Item Entries and Post Inventory to G/L reports must be executed twice, before and after the posting of corrective inventory adjustments, to ensure accurate inventory cost and value.

You have the option to run the Inventory Valuation report at the end of this step and also at the end of the Master Data Configuration step. You can compare the results between the two runs to verify that the total inventory value has not changed.

Assisted Setup for Aggregated Inventory for LS Central

You can use a designated Assisted Setup to set up and implement Aggregated Inventory in LS Central.

Click the icon, enter Assisted Setup, and select the relevant link.
Find the section for Set up Aggregated Inventory for LS Central in the list.
The first step is Master Data Configuration. During this step, the system asks you to run the Adjust Cost – Item Entries and Post Inventory to G/L reports. You also have the option to run the Inventory Valuation report and save the results for later comparisons.
The second step is Handle Open Purchase Documents. This includes released and partially posted purchase orders, return orders, invoices, and credit memos.
The third step is Handle Open Sales Documents. This includes released and partially posted sales orders, return orders, invoices, and credit memos.
In the next step drop shipments and special orders are handled as described in Handle Partially Posted Drop Shipments and Special Orders.
Next, open transfer orders are handled as described in Handle Open Transfer Orders.
The final step is Handle Open Item Ledger Entries. You must complete the handling of open documents before starting this step.
During this step, the system prompts you to run the Adjust Cost – Item Entries and Post Inventory to G/L reports before and after the posting of corrective inventory adjustments. You also have the option to run the Inventory Valuation report and compare the results with those obtained in the Master Data Configuration step.

After completing these steps, Aggregated Inventory is activated and new inbound and outbound inventory movements are posted to the aggregated location instead of the store locations.