Box 1: Planned

If a vendor can no longer deliver the raw materials for the energy drinks due to supply chain issues, the costs for using an alternative vendor to source the raw materials should be used to determine the impact on profits.

Planned costs

A costing version can contain a set of planned cost records about items and manufacturing processes. A costing version that contains planned costs is often used to support cost calculation simulations, such as simulations of the effect that cost changes to purchased materials or manufacturing processes has on the calculated costs of manufactured items. The item cost records for planned costs can also be used to support an actual cost inventory model by providing the initial values for item costs. These values include the calculation of planned costs for manufactured items.

Box 2: Standard

The profitability for nutritional supplements manufacturing processes needs to be expressed in terms of the cost categories for routing operations and the calculation formulas for manufacturing overheads.

Standard costs

A costing version can support a standard cost inventory model for items, where the costing version contains a set of standard cost records about items and manufacturing processes. Cost data about manufacturing processes is expressed in terms of the cost categories for routing operations and the calculation formulas for manufacturing overheads.

Apparel items will not be upgraded to the new costing method until after the go-live date due to resourcing and implementation limitations from the apparel team.

The inventory close process settles issue transactions to receipt transactions, based on the inventory valuation method that is selected in the item’s item model group. As part of the settlement process, you can specify that the general ledger should be updated, so that it reflects the adjustments that have been made. However, until inventory close or recalculation has been run, issue transactions are posted at the calculated running average cost price.

After inventory close, you can no longer post in periods that are before the inventory closing date that you set, unless you reverse a completed inventory close process. For example, if inventory close is run for the period that ends on January 31, you can ' t post transactions that have a date that is earlier than January 31.

One process the inbound processes from manufacturing.

Two outbound processed, one for nutritional supplements and one energy drinks.

Note: Creation of any quality processes for products inbound to the warehouse, from the production line, or outbound from the warehouse to consumers should be automatically created to facilitate execution.

• Testing requirements:

◦ Requirement 1: 100 percent of all nutritional supplements and 50 percent of all energy drinks must be tested when production orders are completed. After a product is in testing, 100 percent of all tests must be completed.

◦ Requirement 2: 75 percent of all nutritional supplements and energy drinks should be tested against their required tests during an outbound process.

Box 1: Product dimension

There are five product dimensions: color, configuration, size, style, and version.

Box 2: Product variant

Product variants are also referred to as items. An item is a tangible product, which isn ' t the same as a service.

A product variant can be generated based on the product dimension values.

Example

A company sells denim jeans. The item, Jeans, uses the color and size product dimensions. The jeans are sold in three different colors and six different sizes. The colors are blue, black, and brown. The sizes are XS, S, M, L, XL, and XXL. Not all sizes are available in all three colors. If all combinations were available, there would be 18 different types of jeans. However, in this example, only the following nine product variant combinations are produced.

Box 3: Tracking dimension

Scenario: If products in the warehouse must be blocked from transactions for a specific reason, such as a health and safety review, warehouse users should be able to block the products quickly from the ERP system.

Note: Customers are categorized into four pricing tiers (A, B, C, and D) based on sales volume over the past 12 months.

Promotional fund and Trade allowance agreement

A trade allowance agreement is an incentive program where pay-for-performance monetary rewards are offered to customers that achieve specific volume targets and/or behavioral goals. Promotional funds are budgeted expenditures. In that way, the promotional campaigns can be captured.