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E1: 42: Inventory Commitment Preference Basic and Advanced Profiles (P40306/P4210/P42101/R42520/R42565/R42530/R40211Z/R42997/P4071/P4072) (Doc ID 1641298.1)
Modified: 02-Feb-2023 Type: BULLETIN

In this Document

Purpose
Scope
Details
Availability Checking is Required
Line Types and the Inventory Commitment Preference
Affect of Partial Shipments and Backorders Settings
Grade and Potency
Percent to Fill
Future Committed Orders
Substitute Items
Other Quantity 1 and 2
Item and Customer Groups
Basic Preference Setup (Menu G4231)
Preference Definition
Preference Hierarchy
Example: Sales Order Entry (P4210/P42101), Menu G4211
Advanced Preference Schedule (P4070) Sequencing
Advanced Preference Setup (Menus G4222 and G40311)
Preference Hierarchy (P40073/Menu G4222)
Advanced Preference Definition (P4071/Menu G40311)
Advanced Preference Detail (P4072/Menu G40311)
Additional Information
Frequently Asked Questions
Question 1: With the inventory commitment advanced preference setup, but no item branch record setup for the header branch for a specific item, Sales Order Entry (P4210 and P42101) issues the error Item Branch Record Does Not
Exist (0294). Is an item branch record required on the header branch if the branch plant is a sales office and does not stock inventory?
Question 2: When a new order type (S1) is setup with BB line type and the inventory commitment preference, a Status Flow Not Setup (0425) Error is returned and the preference item branch record is not retrieved. When the SO
order type is used with the BB line type the error does not occur.
Question 3: Does the Inventory Commitment Preference work with W Line type orders where a Work Order is created to manufacture the item?
Question 4: Does the Inventory Commitment preference have the ability on a multiple item order to evaluate all the lines on the order against each preference branch to see if any one branch can fill every order line so that only one
transportation shipment is sent for the order?
Question 5: Can the inventory commitment preference be applied on an existing committed order?
Question 6: Why doesn't the preference branch get selected when the Sales Order Entry (P4210) version has the a branch plant populated in Defaults Tab Option #12 (Default Branch Plant)?
Question 7: Can the advanced Inventory Commitment preference be set to record to the Preference Adjustment History table, F40741?
Question 8: Is it possible to designate a backorder branch?
Question 9: How is the Inventory Commitment Preference processed against the Basic Preferences defined in R40400 (Preference Processing Options)?
References

APPLIES TO:

JD Edwards EnterpriseOne Sales Order Management - Version XE and later

JD Edwards EnterpriseOne Sales Order Processing - Version XE and later
Information in this document applies to any platform.

PURPOSE

Overview

The Inventory Commitment preference enables a single Sales Order line to be automatically committed from a different branch than the header branch, or be committed across several branches. This will increase the chances that an order will
be completely filled, and gives users greater flexibility to commit from locations that make sense in their business.

Businesses using the Inter-branch process usually enter Sales Orders in a Branch/Plant that is a sales office and may not carry any inventory. They use Inventory Commitment Preferences during the Sales Order Entry process to resolve the
sourcing Branch/Plant. The intention is to ship the order from the sourced Branch/Plant. This is a common business model where many sales Branch/Plants source their orders from one or more distribution centers. The sourcing may take place
from multiple Branch/Plants, based on the preference setup and availability at the sourced Branch/Plants.

Use the Sequence Number field to tell the system which Branch/Plant you want to try to pull inventory from first, second, and so on. When the Route Code, Mode of Transportation, and Carrier Number fields are populated, these values will be
used to populate the Sales Order Detail (F4211) records. If using a Carrier (33) or Mode of Transport (34) Transportation preference for these values, the information populated in the Inventory Commitment preference will be ignored.

SCOPE

DETAILS

Availability Checking is Required

The Inventory Commitment preference requires availability checking. The preference uses availability checking to select one or more branch plants to supply inventory for a sales order from a prioritized list of branch plants without regard to the
header branch plant.

Line Types and the Inventory Commitment Preference

Work Order, Direct Ship and Non-Stock line types that do not perform availability checking are not supported by the Inventory Commitment Preference.

Ordinarily, clients populate the line type S in the processing options of Sales Order Entry (P4210) which will ensure that availability checking is performed on every item branch record that is listed in the preference.

If the Line Type is not populated in the Sales Order Entry (P4210) processing options, the Inventory Commitment Preference will look at the Item Branch record for the HEADER branch plant to select the line type that will be used for
availability checking.

The program is not designed to look at the line type on each individual preference branch and determine whether or not availability checking is appropriate. The assumption is if you are using the inventory commitment preference then you
want to check availability on every detail branch regardless of the line type.

So for example if the item branch record for the header branch plant uses an S line type but the preference branch uses a W line type and there is no inventory in the preference branch, the system will perform availability checking and place
the W line type line on backorder.

Affect of Partial Shipments and Backorders Settings

Backorder = N, Partial Ship = Y - Ship available and cancel remainder. After all branches have been checked, any remaining quantity will be canceled.

Backorder = N, Partial Ship = N - Cancel if not enough available. After all branches have been checked, cancel order quantity.

Backorder = Y, Partial Ship = Y - Ship available and backorder remainder. After all branches have been checked, any remaining quantity will be backordered to the Header Branch/Plant if the release is prior to 8.12.

Backorder = Y, Partial Ship = N - Backorder the entire line if there is not enough available. After all branches have been checked, backorder the order quantity to the Header Branch/Plant if the release is prior to 8.12.

Note: Beginning in 8.12, functionality changed to look first at the preference for a preference branch with 0 % to fill and will assign the backorder to the first 0% to fill branch listed in the preference. If there is no 0% to fill branch in the
preference the Header Branch/Plant will be entered on the detail line for the backorder.

Grade and Potency

The availability checking works together with the Grade and Potency fields. The availability routine will not use any grades/potencies that are not within the range. In addition, the "days before expire" in the Grade and Potency preference
profile will determine if the expiration date is within the customer's allowable days. The availability will then truly be the quantity of the grades/potencies they allow and within an acceptable expiration period.

Percent to Fill

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The Percent (%) to Fill in the Inventory Commitment preference is used to designate the percentage of an order quantity that must be filled in order to ship the available quantity from that branch.

If the minimum percent to fill is equal to 0 in any branch plant, the program will stop availability checking and backorder to the first 0 percent to fill branch.

No branch plants after the first 0 percent to fill branch will be evaluated.

If none of the branches have a record with 0% to fill, then the header branch will be assigned to the backordered line. This functionality is available beginning with EnterpriseOne 9.1 and with the ESUs for the following bugs in prior releases:

8.11 SP1 Bug 11043036

8.12 Bug 10965998
9.0 Bug 10967865

If 100% to fill is used, the entire quantity must be shippable from only one branch. This prevents shipping from multiple branches, but still searches a list of branches. If no branch can fill the entire order, the order is backordered to the header
branch plant.

1% to 99% - if the branch can fill the percentage it ships the available and carries the remainder to the next branch and its percentage is checked. Each branch is still checked to see if the entire quantity can be shipped. If none of the
branches can fill the entire order, the remaining quantity is backordered to the header branch plant. If a different branch plant needs to be designated for the backorder, setup a 0% to fill branch. The sequence of the 0% to fill line is a key on
how the system will backorder. It is recommended you manipulate the order sequence to get the desired results.

Example: Order quantity of 500 each

Minimum Order
% to
Preference Available Quantity Result
Fill
Available

HOU 100 50% 250 No, skip branch

ATL 400 80% 400 Yes, ship 400

yes, ship 96 backorder

95 (95% of
SF 96 95% 4 to Header
remaining 100)
Branch/Plant

The Inventory Commitment preference will use the Sequence Number field to determine the order to check for filling quantities.

Future Committed Orders

When Branch Commitment Days are less than 999 in the Branch Plant Constants (P41001) and a Sales Order is entered with a Scheduled Pick Date that exceeds the Branch Commitment Days, availability checking is bypassed. Normally, the
Inventory Commitment Preference uses Availability Checking to determine what branch to assign to fill the order.

In Sales Order Entry (P4210) Preference Tab Option #2 (Inventory Commitment Preference) can be set to a value of 2 (Activate Inventory Commitment Preference for all orders). When this setting is used, the system performs inventory
commitment preference for all orders, regardless of the commitment window of the header branch/plant. Since availability checking is bypassed, the preference cannot assign the branch based upon available inventory so instead is assigns the
first preference branch where the commitment days are exceeded.

The example below illustrates how this works:

Create a Version of SO Entry (P4210) with Preference Tab Option #2 (Inventory Commitment Preference) set to 2 (Activate Inventory Commitment Preference for all orders).

In the Branch Plant Constants, set Branch Commitment days to 7 on Branch 10 and 20 but to 999 on Branch 30.

Receive inventory only to Branch 30. Branch 10 and 20 have NO inventory.

Setup the Inventory Commitment Preference for the Item

Branch 30 is the preferred branch. This branch does not have future committed orders.
Branch 10 is the next branch. Orders > 7 days in the future are future committed.
Branch 20 is the next branch. Orders > 7 days in the future are future committed.

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Create a new order with 20 in the header and a requested date more than 7 days in the future.

Enter 10 Units of the item with Branch 20 in the header and do not specify the Branch Plant on the line.

When the line is edited, Branch 10 is assigned to the order detail. Header Branch 20 is NOT assigned to the Future Committed Line.

Substitute Items

Substitute Items can be used as an alternate source of supply for an item that is out of stock. If the regular item has no inventory available in any branch plant, the substitute item logic will kick in. Initially, the substitute item will be selected
based upon the header branch plant, but the user can clear the branch plant after the substitute item is selected and this will allow the inventory commitment preference to search for other branches that may have the substitute item in stock.
If the regular item has inventory in a different preference branch than the header branch, the preference branch will be selected and the substitute logic will not get called.

Other Quantity 1 and 2

When Sales Order Entry (P4210) Commitment tab processing option #2 (Commit to Quantity 1 or 2) is set to 1 and the Inventory Commitment Preference is activated with a 1 or 2 in Preferences Tab Option #2 (Inventory Commitment
Preference), Sales Order Entry will not retrieve the branch plant using the Inventory Commitment Preference. Other Quantity 1 and 2 processing options in P4210 are only intended to be used with Blanket and Quote Orders which do not
commit inventory quantities and do not affect inventory availability for sales orders.

Item and Customer Groups

When an item and/or customer group is used, note the following requirements for category codes:

Item: the appropriate category code(s) must be populated in the Item Branch table (F4102) for the Header branch being used in the sales order; at the time the preference is resolved, E1 only has access to this information in order to evaluate
the preference - it does not know which detail branch will be selected based on the preference criteria.

Customer: the appropriate category code(s) must be set at Customer Master level; it is not needed in the Address book record (F0101).

Basic Preference Setup (Menu G4231)

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Preference Definition

From Preference Master (P40070), inquire on Inventory Commitment (Pref Type 06) and take Row Exit to Hierarchy (P40073).

Note: In this example, Enable Quantity was not activated.

Preference Hierarchy

Verify that the hierarchy is set up as desired.

To set up the preference, in Preference Master (P40070) take the Row Exit to Profiles. On the Inventory Commitment Profiles (P40306) screen click Add (+) to add a new inventory commitment preference profile. Before setting up the profile,
the desired hierarchy must be selected.

In this example, the preference is set up for a specific item and customer. The Branch Plant, Percent To Fill and Preference Status options are required, along with the Sequence Number if multiple branches are set up. Optional fields are Mode
of Transport, Route Code and Carrier. If these are set up, they will populate the Sales Order Detail File (F4211) for an order created with this preference applied.

Set the Sales Order Entry (P4210) Preference Tab, Option #2 (Inventory Commitment Preference) to either 1 or 2.

Example: Sales Order Entry (P4210/P42101), Menu G4211

Item Availability (P41202) – this item has product shipped from and stored in 3 different warehouses.

Using either P4210 or P42101, enter a sales order for Branch/Plant 30, quantity of 125. At least 50% of that quantity is not available in Branch 30 therefore the Inventory Commitment preference has assigned Detail Branch/Plant as 10.

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Advanced Preference Schedule (P4070) Sequencing

The present design of Advanced Preference (Releases 8.9 and forward) regarding the sequencing within the Preference Schedule is to follow the order listed below. It is not coded to consider the sequence order specified in Preference Schedule
(P4070):

1. Delivery Date (03)

2. Order Detail Defaults (02)
3. Print Message (04)
4. Commission Code (21)
5. Sales Price Based On Date (18)
6. Advanced Lot (23)
7. Fulfillment Entry (41)
8. Internal Sales Order Tax Date (46)
9. Grade and Potency (25)
10. Inventory Commitment (05) - will be resolved during sales order commitment processing
11. Next Order Status (24)
12. Gross Profit Margin Target (19)

If the Inventory Commitment Processing Option is activated within the Sales Order Entry (P4210) Processing Option Preference tab, then the system will only resolve Order Preparation Days preference (22) & Delivery Date preference (03)
again after the Inventory Commitment preference is resolved during the commitment processing time. All the other listed preferences will be resolved during the sales order detail grid tab down process (i.e., F4211 Edit Line Process).

Advanced Preference Setup (Menus G4222 and G40311)

Preference Hierarchy (P40073/Menu G4222)

Verify that preference hierarchy is set up as desired.

Advanced Preference Definition (P4071/Menu G40311)

Add the Inventory Commitment preference name, selecting Preference Hierarchy to be used and Advanced Preference Type.

Advanced Preference Detail (P4072/Menu G40311)

When adding the preference detail, the user will first need to select an option from the Preference Hierarchy defined in the Advanced Preference Definition (P4071).

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Add Item, Customer, From Level, UOM and effective dates.

Add detail by taking Row Exit to Pref Details

Advanced Preference Schedule (P4070/Menu G40311)

Add Advanced Preference Schedule with preference set up in previous steps

Additional Information

Sales Order Entry (P4210) processing option #2 on the Preference tab controls the use of the Inventory Commitment preference. Processing option #1 on the Preference tab does not affect the Inventory Commitment preference, nor do you
need a version of Preference Selection for this preference.

When an order is entered, the first commitment preference branch that is actually used is defaulted into the Detail Branch/Plant field (MCU).

If a branch is manually entered in the Detail Branch/Plant that is different from the Header Branch/Plant, the branch entered by the user manually will be used and the Inventory Commitment preference will not change it. Therefore, no
Inventory Commitment preference will affect this order.

If both a basic and advanced preference exist, the advanced preference will be resolved first and the basic preference will not be considered.

Note: The Inventory Commitment preference does not function with non-stock items, kits, configured items, direct ship orders, or W line type.

Frequently Asked Questions

Question 1: With the inventory commitment advanced preference setup, but no item branch record setup for the header branch for a specific item, Sales Order Entry (P4210 and P42101) issues the error Item Branch Record
Does Not Exist (0294). Is an item branch record required on the header branch if the branch plant is a sales office and does not stock inventory?

Answer 1: Yes. You must setup an item branch record even if the branch does not stock inventory. If the item branch record does not exist for the header branch, the Inventory Commit preference will issue the error Item Branch Record Does
Not Exist (0294) and prevent the transaction.

Question 2: When a new order type (S1) is setup with BB line type and the inventory commitment preference, a Status Flow Not Setup (0425) Error is returned and the preference item branch record is not retrieved. When the
SO order type is used with the BB line type the error does not occur.

Answer 2: Sales Order Entry (P4210) checks the line type from the header warehouse (S) to verify if the order activity rules were set up for the order type S1 with the line type S before it attempts to retrieve the preference item branch
record. If this check passes, then the Inventory Commitment Preference logic will retrieve the item branch record according to the preference and default in the line type from the item branch (F4102). If the validation fails, the Order Status
Flow error is issued.

To resolve the issue please execute the following steps:

1. Setup simple order activity rules for the S1 order type S line type.
2. Retest sales order entry for the S1 order type with the Inventory Commitment Preference activated entering the item, but leaving branch plant and line type blank.
3. The preference branch and the line type from the item branch (BB) is pulled into the line with no errors.

Question 3: Does the Inventory Commitment Preference work with W Line type orders where a Work Order is created to manufacture the item?

Answer 3: No. Sales order lines entered with W line types will bypass availability checking and cannot execute the Inventory Commitment Preference logic which depends on Availability Checking in order to work properly.

Question 4: Does the Inventory Commitment preference have the ability on a multiple item order to evaluate all the lines on the order against each preference branch to see if any one branch can fill every order line so that
only one transportation shipment is sent for the order?

Answer 4: The answer is no. The Inventory Commitment preference evaluates each order line independently of the others. There is no way with the inventory commitment preference to ensure that all order lines are assigned the same
branch plant and same shipment number.

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Enhancement Bug 17549988 - ENHANCE INVENTORY COMMITMENT PREFERENCE TO FILL ALL LINES FROM ONE BRANCH was entered to request this functionality using the new In-Memory Applications capability for JD Edwards
EnterpriseOne.

Question 5: Can the inventory commitment preference be applied on an existing committed order?

Answer 5: It is possible to apply the inventory commitment preference to a previously committed order using Pick Slip Print (R42520) program. This is accomplished by setting up the Inventory Commitment Standard or Advanced Preference
to list the branch plants in order of preference and then activating the Pick Slip Processing Options as follows:

Process Tab Option #1 (Hard Commit Inventory) is set to 1 (Hard commit inventory)
Process Tab Option #2 (Preference Commit) is set to 1 (Use Preferences to commit)

This is usually done when availability checking has been bypassed during Sales Order Entry (P4210) and the Pick Slip Print (R42520) is used to select the preference branch and also hard commit to the location in the preferred branch that has
the available inventory. In order for this to work it is important to make sure all branch plants listed in the inventory commitment preference have item branch records previously setup for the item in question.

Question 6: Why doesn't the preference branch get selected when the Sales Order Entry (P4210) version has the a branch plant populated in Defaults Tab Option #12 (Default Branch Plant)?

Answer 6: Defaults Tab Option #12 (Default Branch Plant) is an override branch plant for the order detail line. The inventory commitment preference is ignored when this processing option is populated.

Question 7: Can the advanced Inventory Commitment preference be set to record to the Preference Adjustment History table, F40741?

Answer 7: No, in the Adjustment Detail (P4071) application, if the checkbox is set to write to Preference History and the user tries to save the Preference Name record, an error is invoked (Error 45PH – This indicates that only a limited set of
preference types (02, 03, 17, 18, 19, 21, 22, 24 and 25) can be set this way). The listed preferences can write to the (F4074) Pricing History table with the schedule and associated sales order number. The unlisted preferences do not write to
the F4074 or the F40741.

Question 8: Is it possible to designate a backorder branch?

Answer 8: No. The backorder branch will always be the header branch when the percent to fill is greater than 0 or it will always be the first 0 percent to fill branch encountered. It is not possible to designate a particular branch to always be
used for the backorder.

Question 9: How is the Inventory Commitment Preference processed against the Basic Preferences defined in R40400 (Preference Processing Options)?

Answer 9: The Basic Preferences defined in R40400 will be resolved first and afterward the Inventory Commitment Preference gets resolved. See Doc ID 2020357.1.

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REFERENCES

NOTE:625620.1 - E1: 49: Transportation Preferences (P40330/P40331/P40332/P40333/P40334)

NOTE:1641298.1 - E1: 42: Inventory Commitment Preference Basic and Advanced Profiles (P40306/P4210/P42101/R42520/R42565/R42530/R40211Z/R42997/P4071/P4072)
NOTE:647834.1 - E1: 42: Inventory Availability Checking with the Inventory Commitment Preference (P41026/P4210/R42520)
NOTE:1308040.1 - E1: 42: Preference Profiles Overview
NOTE:740966.1 - Advisor Webcast Details
NOTE:1342177.2 - Information Center: JD Edwards EnterpriseOne Sales Product
NOTE:1209344.1 - E1: 49: Advanced Transportation Preferences
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