ITF Overview

03-February-2005

Unisys Extract to CISCBS

OM S&T Order

CIS/CBS

ITF File

Upon Shipment from CIS/CBS

ERP/INV

Shippable flag

Must be 99-904

Purchasable flag

MODES OF RECEIPT

DIRECT - US ONLY, PO receipt is automatic and done by the system. This is because orders are shipped directly to the customers in US from manufacturing. STANDARD International. PO is receipted manually. The pick, pack and ship confirm are done manually at the appropriate time.

The mode is specified by default on the inventory org DFF and on the PO header DFF.

Custom Po receipt form

Tables involved in ITF Processing

URCV_INTRANSIT_HEADERS URCV_INTRANSIT_LINES Tables linked by ci_number and ci_date columns Tables loaded from file by sql loader Validation process validates the file data and populates key columns in tables like org_id,order_line_id,po_line_location_id

Operation_status column values

After ITF file is imported, the processed_flag is null and the operation_status=P After validation, the processed_flag is null and operation_status is R (if valid), E (if in error), Z (is ismad/softsys orders) or I (for insertions) After PO receipt, the processed_flag is null and operation_status is C this means that the po lines are in the interface table it does not mean that the po is receipted. After reservation, processed_flag is R (if okay), U (if in error) and operation_status remains at C After ship confirm, processed_flag is S (if okay),E (if in error) and operation_status remains at C.

Modules involved in ITF Processing

USTDINVITFLOAD - shells script to load file into custom tables. It also calls the validation routine as part of the shell script. USTDPOIFTPP.spp.obj this is the validation routine called by the shell script above. USTDPOSNTRECEIVE.sql this program performs the automatic receipt for the DIRECT receipts. USTDPORCV.fmb PO receipt form for STANDARD receipts. USTDPOOPER.fmb PO operations form for handling quantity mismatches USTDPOFIN.fmb PO financials form for resolving financial mismatches USTDPOITF_CTRL.sql Inbound transaction control report USTDINVINTRS.sql In-transit report

Inventory in Transit Unisys SNT Products will be distributed from Manufacturing in US to various sites worldwide. Oracle Purchase Orders will be automatically created when Requisition Import is run for customer orders demanding Unisys SNT products. The Purchase Orders for S&T products will use supplier UNISYS MFG. POs will flow to CBS/CIS in order to be fulfilled.

The inter-company invoice created when the S&T items are shipped to the subsidiary has to be booked by the subsidiary as an Inter-company Payable in the same month the invoice is issued.
Even if the purchased products have not yet been received, the Inter-company Payable has to be booked. When this happens, the inventory is in-transit. That is, the AP invoice has been booked but the product has not been received.

ITF File The detail making up the Inter-company Invoice is called the ITF file. It includes among other things: Quantity Style Cost in Local Currency or USD Reserve (US only) when previously used and depreciated equipment is shipped on an order. Freight and Shipping charges Oracle PO Number Oracle PO Line Number Commercial Invoice Number (Intl) / Bill of Lading Number (U.S.) The ITF file with Unisys SNT Hardware and Software products will be interfaced into Oracle in order to be received into Inventory.

Unisys ITF Inbound Transactions Control Report A Unisys report called the Unisys ITF Inbound Transactions Control Report can be used to validate the ITF files received. The report should represent the value of the debits to the Inventory-in-Transit account. This should also be the same amount that is booked as the debit to the Inventory-in-Transit account from the WIA transactions for S&T products. From Inventory Responsibility, run Unisys ITF Inbound Transactions Control Report. Start Date: <dd-mmm-yyyy> End Date: <dd-mmm-yyyy> ( Program will default todays date as the End Date but it can be overwritten. Detail: Yes or No. If Yes is entered, more detail information will be shown at the end of the report.

Unisys In-Transit Forms and Reports

When product is shipped from manufacturing to marketing in the ITF file, the quantities ordered and the prices charged may not be the same as on the PO that was issued to manufacturing. This results in quantity and price variances that have to be resolved.
Resolving quantity variances is the responsibility of Order Management/Order Fulfillment. Price variances require an adjusting entry to be made by Accounting. Two Unisys forms and two Unisys reports have been developed to help identify quantity and price variances, and to provide a process for clearing these variances. Forms: Unisys In-Transit Operations Form Unisys In-Transit Financials Form Reports: Unisys Inventory In-Transit Report Unisys ITF Inbound Transactions Control Report

Unisys In-Transit Operations Form This form is used by Order Management/Order Fulfillment for identifying and taking action on quantity variances.

Query on PO Number field to call up the Purchase Order that needs to be reviewed or actioned. Note: Only when there is a quantity mismatch on any or all line items between the ITF file and PO, can the PO be queried. All line items on a PO will be displayed even if there is only one line that is mismatched and requires action. There are 2 sets of columns on the form: ITF and Purchase Order. (The Ticket Number and Action columns will be explained later in this document.)

ITF Columns Total - The total quantity for an item on the ITF file. Unreceipted - The quantity that has not yet been receipted into inventory. Received - The quantity that has been received into inventory. Unit Price - The price per unit billed by manufacturing. This value is always displayed in local currency. If the ITF file is billed in another currency, the amount is converted to local currency at the current months exchange rate.

Purchase Order Columns Line Number - The line number as entered on the PO. Item Number - The item number (style) that is on the PO line. Unreceipted Quantity - The open quantity on the PO line. Open means the quantity that has not been receipted yet. This is not the total quantity on the PO line. For example: If the PO line has a quantity of 10 and 7 have been receipted, the form will show an open quantity of 3. Received Quantity - The quantity that has been received against the PO line. Note: The total of this column and the previous column will be the total quantity that was entered when the PO was issued. Currency - The currency of the PO. This may or may not be the local currency of the subsidiary. Unit Price - The price per unit on the PO line. This amount is always shown in local currency. If the PO is in another currency, the unit price is converted to local currency at the PO exchange rate. Price Variance - The difference between the ITF unit price and the PO unit price, multiplied by the quantity received on the PO.

Using the In-Transit Operations Form There are various reasons why a quantity difference can exist between the ITF File and the PO. ITF quantity is less than the total PO quantity: This would represent a partial shipment and there would be an Open PO Quantity showing on the form. When the remaining PO quantity is shipped on a new ITF file, the quantity variance should be 0. ITF quantity is equal to total PO quantity but greater than PO receipted quantity: This would indicate that the quantity shipped on the ITF file has not been receipted yet. The reason for not receipting the total ITF quantity may be a timing difference. The ITF quantity is created when manufacturing ships products, but if the products have not been received into the subsidiary, then there will be a difference. (Note: Because the U.S. uses automatic receipting, there is no timing difference between shipment and receipt. As a result this condition should not happen in the U.S.) When the products are finally receipted into the subsidiary inventory, the variance should be 0. This kind of variance can also happen if the product has been lost during shipment or if the ITF file is overstated and the product was never shipped by manufacturing.

ITF Quantity is greater then the total PO quantity:

When manufacturing ships quantities that are greater than what it on the PO, these over-shipments or insertions will show up on the InTransit form with the PO Line Number blank since they cannot be matched to an existing line. Resolving this variance requires the use of the Action Flag and Ticket Number columns on the form.
Note: When a Return to Vendor is done, the PO Received quantity is reduced. This will cause a variance between the ITF quantity and the PO Received quantity. For the U.S. only, when the credit ITF file from manufacturing is received, the ITF quantity will be reduced as well and the variance should no longer exist.

Using the Action Flag and Ticket Number Fields on Operations Form
When the quantity shipped by manufacturing on the ITF file is greater than the quantity ordered on the PO the following actions must be taken: Check the Action box on the line item that has the over-shipment or insertion. A message will be displayed with a ticket number. This is a sequential number assigned whenever the Action box is checked. Make a note of the ticket number, order number and PO number. Close the form and go into Order Management. Call up the sales order. Go to a new line on the order and enter the style number and quantity to be added. At the far right hand column, open the Descriptive Flexfield and enter the ticket number into the SNT_ITEM_INSERTION_TOKENS field. You can choose the ticket number from the drop down list. Add the price override if necessary. Requisition is created when the automatic process runs periodically Requisition has to be approved When adding the item to a PO, add it as a new line item on the existing PO associated with the order. A new PO should not be created.

Before ITF is received

ITF Received Quantity is 0. This means the PO has not been receipted

No PO Receipt has been done, so the full quantities on the PO are displayed.

No Price Variance because no PO Receipts have been done.

Partial receipt of first ITF shipment PO receipting has been done

ITF Received Quantity shows the amount receipted on the PO. ITF Unreceipted Quantity is now 0.

The PO Unreceipted Quantity is the total PO quantity less the receipted quantity.

There is an In-Transit Price Variance because the ITF prices are different than the PO prices.

Second partial shipment for PO PO receipting has not been done

Total Quantity includes both ITF partial shipments.

ITF Received quantity shows only the PO receipts from the first shipment.

ITF Unit Price is an average of all the ITF prices for a PO line item.

PO Receipted quantity still shows only the receipts from the 1st shipment. The 2nd shipment has not been receipted yet.

Second partial shipment PO receipting has been done.

Both ITF shipments have been receipted by PO. ITF Unreceipted quantity is now 0. ITF Unit Price is an average of ITF prices from fist 2 shipments.

PO Unreceipted quantity is the remaining yet to be received after 2 partial shipments.

In-Transit Price Variance is total price variance from the two partial shipments.

Third ITF shipment with overshipment

Two items have been overshipped. Since they exceed the PO quantity, these overshipments (insertions) do not reference a PO line.

Action the overshipment

Checking the Action Box on an overshipped line will assign a Ticket Number to the line. This is the Ticket Number that needs to be entered in the DFF on the sales order when the line is added to the order.

Unisys In-Transit Financials Form Inventory Accounting uses this form for identifying and taking action on price variances. Under certain conditions, it is used to take action on quantity variances

Using the Action Flag on Financials Form When there is a unit price difference between the ITF file from manufacturing and the unit price on the PO, the resulting difference will end up in the Inventory In-Transit account on the GL. This will happen even if the quantities on the ITF file and PO match. These variances have to be written-off using the following process. Variances can be determined by running the Unisys INV In-Transit Report. From the report identify variances by PO where there is a quantity match but a residual price variance. Query the PO on the Financials Form. Check the Action box on the PO line items that has the price variance. Do this for every PO where the price variance is being written-off. Total up the value of the Price Variances on the line items actioned from either the report or the form. Book an entry to the GL to reverse the Inventory In-Transit amount with the offset to the Invoice Variance account.

First shipment PO receipting done.

PO Quantity Receipted matches the ITF quantity shipped.

There is no In-Transit Quantity Variance but there is a Price Variance between the ITF price and the PO price.

Other considerations If there are quantity variances on the PO line, do not check the Action box until after consultation with Order Management/Order Fulfillment. Checking the Action box on the Financials form will prevent Order Management/Order Fulfillment from taking any action on the Operations form. If it is concluded that the quantity variance cannot be cleared by Order Management/Order Fulfillment, then Inventory Accounting has to take the action to write-off the quantity variance. The Action box cannot be checked on items where the quantities and prices match. This is because no action is required. The Action box cannot be checked on items if it has already been checked. If you check the Action box but did not intend to, close the form without saving the screen. Once the form is saved after checking the Action box, the box cannot be un-checked.