Shipment

Hello! Today the Sales Manager confirms the sales order and starts the shipment process.

As you may remember, in the previous training lesson, we have created the sales order with two lines.

Confirmation

The Sales Manager calls the Customer and agrees the order details. Since all order details are correct, the Sales Manager prints the Confirmation document.

The Sales Manager goes to Accounts receivable > Common Forms > Sales order details. The Sales order form opens. The Sales Manager clicks Posting > Confirmation menu button. The Posting confirmation form opens. Then, the Sales Manager selects the Print confirmation check box and clicks the OK button. The Confirmation document is printed.

Confirmation document

The Sales Manager sends this document to the Customer. This document is a guarantee that the Sales Manager and the Customer have cut a deal.

Before starting the shipment process, let’s check what inventory transaction is generated when a sales order line is created.

In the line area of the Sales order form, click the Inventory > Transactions menu button. The Transactions form opens.

Inventory transactions. Issue status is OnOrder

The Transactions form contains a lot of information, but we will keep track of the quantity, dimension, and status of transactions.

The On order issue status means that the item is ordered for pick.

Let’s view all dimensions in the Transactions form. Click Inventory > Dimensions display > select all check boxes (theSave setup check box also) > click OK.

The following information appears:

Inventory transactions

The Location dimension is set to Out_01. That is because when we create a sales line, default values are taken from the warehouse setup: Inventory management > Setup > Inventory breakdown > Warehouses > set cursor to warehouse 22 > click Warehouse management tab > Default issue location field.

Default issue location can be set up for each item under Inventory management > Common Forms > Item details > find the Bottle item > Setup button > Warehouse items button > Locations tab > Default issue location field.

Create Output Order

First of all the Sales Manager creates warehouse orders. Warehouse orders are created from sales lines. In Axapta, a warehouse order has the following types: output order, transport order, and a pick order. For the shipment process, the output order is required. Remember that an output order is a kind of a warehouse order.

To create an output order, the Sales Manager performs the following steps:

1. In the Sales order form, the Sales Manager selects the first line and clicks Inventory > Output orders button.
   

   Sales order form, Output orders button
2. The Create inventory order form appears. The Sales Manager clicks OK.
   

   Create inventory order form
3. The Output order form appears. This form contains an output order that has been generated.
   

   Output order form

The Transactions button shows the output order lines. For example, order lines can contain the following information – 400 bottles loaded, 300 bottles picked,… etc. If we click this button, the empty Inventory order transaction form opens.

If we look at the inventory transaction (clicking Inventory > Transactions), we will find that nothing is changed – Issue status is On order.

Create the output order for the Can item yourselves.

Now, the Sales Manager finishes his or her work.

Create shipment

The Shipment Manager must register an empty truck in the system. But, unfortunately Axapta doesn’t have the ability to manage trucks. Instead of this the shipment is used.

The Shipment Manager creates one shipment:

1. Go to Inventory management > Shipments. The Shipment form opens.
2. Create a new line by pressing CTRL + N.
3. The Create shipment wizard opens. Click the Next button.
4. On the following Identification page, select the shipment template. In our demo data, we have only one shipment template “100_all”. Select it. A shipment template can be set up under Inventory management > Setup >Distribution > Shipment templates. A shipment template contains the following major information: outbound dock (only an output order moved to this dock is taken into account), reservation principle (how an item will be reserved before a pick-up process).
5. Click Next.
6. On the Configuration page, all the information is filled in by default. Click Next.
7. The Inventory order page contains the information about orders that can be assigned to the shipment. The Shipment Manager can delete an order form the grid.
   

   Create shipment wizard
   Click Next.
8. On the Ready page, the Shipment Manager clicks the Finish button.

The new shipment is created and the two output orders generated from our sales order are assigned to this shipment

Shipment form. Registered status.

If we click the Show lines button, the output order lines will be shown. Be aware that it is not the output order but the output order lines. These lines were generated during the shipment creation process.

We can return to the Sales order form and click Inventory > Output orders > Transactions. The Inventory order transaction form now contains the following information:

Inventory order transaction form. Handling status is Registered

We will look at the Handling status field. The Registered status means that the output order line is created and assigned to the shipment.

The inventory transaction status remains OnOrdered.

Prepare for Picking. Reservation

The Warehouse Worker will transfer the items to the outbound location on the pallet, so the requested output order quantity is divided to parts that will fit the pallet capacity.

In Axapta, we can set up the pallet capacity per item. Unfortunately, if an item is received in different units, we can’t set up the pallet capacity for items in a specific unit. For example, a pallet 42*42 contains 50 boxes of cakes containing 100 cakes each which equals to the total amount of 5000 cakes, but the same pallet may contain 1 package of cake containing 6000 cakes.

In this training, we will not set up the pallet capacity for items. It means that all pallet types can include all quantities of Bottle and Can items.

The pallets and physical dimensions of items are set up under Inventory management > Common Forms > Itemdetails > find Bottle item > Setup tab > Warehouse management field group.

Axapta defines a picking location automatically. The available quantity on location is taken into account. But in what sequence the location will be searched?

In our demo data, picking locations are searched in the following sequence:

1. Bulk locations that contain full pallets with required items. A full pallet will be transferred from a bulk location to the outbound location.
2. Default (or primary) item picking location. This is set up under Inventory management > Common Forms >Item details > find necessary item> Setup button > Warehouse items > find necessary dimension combination > Locations tab > Picking location setup field group > Picking location field.
   Note: For the Bottle item, it is the 01-03-01-1 location, for the Can item, it is also the 01-03-01-1 location.
3. All picking locations
4. All bulk locations
5. Inbound locations
6. Outbound locations

When a full pallet is found in a bulk location, a pallet transport from this bulk location to the outbound location is created. This type of picking is called a direct picking or an output transport.

If an item to be shipped is stored on different pallets located in different locations or in primary picking location, a picking route is created. A picking route contains picking lines with the information about picking locations and quantity available to pick. The Warehouse Worker uses a picking route to fill one pallet and transport it to the outbound location.

When the Warehouse Worker goes to the picking location, the system must guarantee that the necessary item quantity will be available (not picked by another employee). So, when a picking location is found, the planned picked quantity is reserved. The reserved quantity can’t be taken from the location for other purpose.

In Axapta, the sequence in which a picking location is searched is called “shipment reservation sequence” because during the reservation process, a picking location is searched and the quantity is reserved. Shipment reservation sequence is set up in the shipment template and is transferred to the shipment when it created.

The shipment reservation sequence is attached to the template under Inventory management > Setup > Distribution> Shipment templates > General tab > Reservation field group > Sequence ID field.

The shipment reservation sequence is set up under Inventory management > Setup > Distribution >Shipmentreservation sequences (it contains the setup for sequence combination per warehouse).

The shipment reservation combination is set up under Inventory management > Setup > Distribution >Shipmentreservation combinations.

Shipment reservation combinations form

We can see that a shipment reservation combination presented in the form is the same as we discuss.

The Shipment Manager starts the reservation for the shipment:

1. Go to Inventory management > Shipments > find created shipment
2. Functions button > Reserve now button.

Axapta automatically performs the following operations:

1. Divide the output order line to match the pallet capacity (if necessary).
2. Define the picking location for each output order line.
3. Create picking routes and output transport and refill the transport if necessary.
4. Reserve the picked quantity in the location.

A few words about refill transport. A refill transport is a pallet transport that has been created to refill a default item picking location from a bulk location. A refill transport is created when the minimum picking location quantity is reached. The purpose of this is to keep the default item picking location with the on-hand inventory. The minimum picking location quantity is set up under Inventory management > Common Forms > Item details > find necessary item> Setupbutton > Warehouse items > find necessary dimension combination > Locations tab > Picking location setup field group > Required minimum field.

Let’s check and analyze the result of the reservation process.

Go to the Shipment form. The form has the following view,

Shipment form. Reserved status.

The Shipment status (the Status field) is Reserved, it means that all lines (the output order lines) are reserved. Click theShow lines button to make sure.

Shipment lines form. Reserved checkbox.

Note: that the shipment lines have the Registered status and the Route field is filled in.

The status of picking routes (the Pick field in the Shipment form) is Registered. It means that picking routes are created. Registered picking routes can be viewed in the Picking list registration form located under Inventory management >Periodic > Picking list registration or by clicking Inquiry > Picking routes button in the Shipment form. In our case, we have only one 005478_116 picking route.

The status of output transports (the Pallet transport field in the Shipment form) is empty. It means that no output transport is created for this shipment.

Let’s go through the reservation steps to understand why picking is created and an output pallet isn’t created.

Remember that in this training lesson we received 3000 Cans to the 01-03-01-1 primary picking location and 5000 Bottles to the 01-01-02-01 bulk location.

According to the shipment reservation sequence:

1. Reservation program tries to find a full pallet with 200 Cans in bulk locations. We have only one pallet with 3000 Cans in primary picking location. So the Reservation program doesn’t create an output transport and proceeds to the next step.
2. Reservation program tries to find 200 Cans in the primary picking location (i.e. 01-03-01-1). We have this quantity in primary picking locations. Reservation program creates a picking route with one line that contains the information that 200 Cans must be taken from the 01-03-01-1 location and transferred to the Out_01 location. Reserve this quantity in the 01-03-01-1 location.
3. Reservation program tries to find a full pallet with 1000 Bottles in bulk locations. We don’t have a pallet with 1000 Bottles in bulk locations and we only have a pallet with 5000 Bottles in bulk locations. So, the reservation program doesn’t create an output transport and proceeds to the next step.
4. Reservation program tries to find 1000 Bottles in the primary picking location (i.e. 01-03-01-1). We have no Bottles in the primary picking location. But, the reservation combination requirement creates a refill if the primary picking location quantity is below the minimum. We don’t have the setup for the minimum quantity, but, by default, it is set to zero. So, Reservation program creates a refill (pallet transport) from the 01-01-02-1 bulk location to the 01-03-01-1 picking location. The full pallet with 5000 Bottles will be transferred to the picking location. The Reservation program adds a new line to the picking route. Reserves the projected quantity.

We will check our considerations in the next topic.

Picking

The Shipment Manager activates all picking routes and output transports for the shipment. It means that the picking process is started.

In the Shipment form, click Functions > Activate menu button.

Note: The Shipment Manager can activate picking routes or an output transport separately. Under the Functions button menu, the Activate picking and the Activate pallet transports menu buttons are available.

The Shipment form has the following view:

Shipment form. Activated status.

The shipment status is Activated which means that all shipment lines (output order lines) are activated. Check it yourself.

The status of picking routes is Activated. It means that the picking routes can be started.

The Warehouse Worker uses the Pick form. This form contains picking routes of the Activated status. Open this form from Inventory management > Picking routes.

Pick form

The Employee field is filled in automatically. The Warehouse Worker selects the picking routes in the Picking route field. In our case it is 005478_116 picking route. This picking route contains two picking lines.

Pick form. Picking route.

We can check that the result or the Reservation program is the creation of one picking route with two picking lines. Both picking lines have the 01-0-01-1 location as picking location.

We see that the Bottle item can’t be picked from the 01-03-01-1 location but the necessary quantity is reserved. How can this be?! This happens because Axapta can reserve the ordered quantity. During the reservation process, the 01-03-01-1 location is selected as a picking location for Bottles. (This location is a primary picking location for the Bottle item and requires a refill if the on-hand quantity becomes below the minimum). The system calculates that if 1000 items are picked, the on-hand quantity becomes below zero, and thus, the system creates a refill pallet transport. And, it reserves the quantity beforehand. This type of reservation is called a “reserve ordered”.

A refill is a pallet transport, so it can be viewed in the Pallet transport form located under Inventory management >Pallet transports.

To lock the picking route, the Warehouse Worker clicks the Start picking route button.

Then, the Warehouse Worker creates a new pallet that will be used for collecting items. Click the Create picking palletbutton. The Create picking pallet form opens.

Create picking pallet form

This form contains the new pallet name and the pallet type. The pallet type is filled in with the default value. The default pallet type is set up under Inventory management > Setup > Parameters > General tab > Locations field group >Pallet type field.

To finish creating a new pallet, the Warehouse Worker clicks OK.

The Warehouse Worker sees that the Bottle item is not yet in the picking location because the Balance after field contains the value -1000.

The Warehouse Worker takes an empty pallet and goes to the picking location from the second picking line (i.e. the 01-03-01-1 location). When the Warehouse Worker reaches the picking location, she or he picks the necessary quantity.

When the necessary quantity has been picked and put on the pallet, the Warehouse Worker records this into the system. He or she clicks the Approve details button. The Approve line form opens.

Approve line form. Can item.

The warehouse worker clicks the Pick selected button and closes the Approve line form.

Now, the picking line with the Can items is displayed on the Picked tab of the Pick form.

Pick form. Picked tab.

The second Warehouse Worker works with a forklift and uses the Pallet transports form. She or he transfers pallets from one location to another one. This form can be accessed by clicking Inventory management > Pallet transports.

Pallet transports form

The second Warehouse Worker performs the following actions:

1. Locks the transport (clicks the Lock transport button).
2. Starts the pick-up pallet (click the Start transport button).
3. Moves the items to the destination location and clicks the Complete transport button.

I ask you perform all the steps that the second Warehouse Worker will do. Note that the second Warehouse Worker transfers the pallet from location 01-01-02-1 to location 01-03-01-1 (our picking location). So, this pallet transport is a refill pallet transport.

When the second Warehouse Worker completes the transportation, the Pick form will contain the following data:

Pick form after refill.

We see that the on-hand inventory in the 01-03-01-1 location is 5000 items, and after we pick 1000 items, it becomes 4000.

The Warehouse Worker can now go to the 01-03-01-1 location and pick the necessary quantity.

The Warehouse Worker performs the same steps as for the picking line with the Can item:

1. Goes to the picking location.
2. Picks the necessary quantity on the pallet.
3. Registers the performed work in the system.
   • Click the Approve details button. The Approve line form opens.
   • Click the Pick selected button.

The Deliver picked items form opens. The Warehouse Worker will use this form after he or she physically transfers the pallet to the outbound dock. (Close this form).

When the Warehouse Worker transfers items to the outbound dock, he or she registers the performed work via theDeliver picked items form.

The Warehouse Worker clicks the Deliver picked items button in the Pick form. The Deliver picked items form opens.

Deliver picked items form.

Note that there is only one line because we have picked two lines onto one pallet. The Warehouse Worker clicks theDeliver items button.

The Warehouse Worker has finished the picking route. Close the Pick form.

Return to the Shipment form and analyze what has changed.

Shipment form. Staged status.

The shipment status is Staged. It means that all shipment lines are already in the outbound dock but are not yet loaded into the truck. If we check the shipment lines (output order lines), we can find that the Handling status is also Staged.

The Pick status is Completed. It means that all pickings are completed.

What about inventory transactions? Let’s check.

Open the Sales order form (Account receivable > Common Forms > Sales Order Details) and find our sales order. In the line area, select the sales line with the Bottle item and click Inventory > Transactions menu button. TheTransactions form opens.

Inventory transactions. Picked status.

We can see that the inventory transaction issue status is changed from On order to Picked. I have forgotten to show you the inventory transactions statuses after we reserve items. After the reservation the inventory transaction issue status for Cans is changed from On order to Reserved physical, for the Bottle item it changes from On order to Reserved ordered. When the refill pallet transport for Bottles is completed, the inventory transaction issue status changes from Reserved ordered to Reserved physical. You can check it yourself if you create a new sales order and perform the same steps. So, an inventory transaction is changed from Reserved physical to Picked.

Loading

Other warehouse workers load the trucks. When the truck has been loaded, the Shipment Manager registers this in the system. In the Shipment form, click the Shipment staging button. The Shipment staging form opens.

Shipment staging form.

The Shipment Manager clicks Functions > Load menu button and closes the form.

The Shipment form has the following information.

Shipment form. Loaded status.

The Shipment status is changed from Staged to Loaded. It means that all shipment lines (output order lines) are loaded into the truck.

Release Shipment

The last step in the shipment process is the paperwork. The Shipment Manager prints the shipment list, gives it to the Truck Driver, and creates a bill of lading.

The Shipment Manager clicks Functions > Send menu button in the Shipment form. The Send shipment form opens.

Send shipment form

The Shipment Manager selects the Crate bill of lading and the Print shipment list check boxes and clicks OK.

The following shipment list is printed.

Shipment list

The Shipment Manager can access the Bill of lading by clicking Inquiry > Bill of lading menu button in the Shipmentform.

The Bill of lading form opens. The Shipment Manager can print the Bill of lading from the form by clicking the Printbutton.

The Shipment form has following view:

Shipment form. Sent status.

We can see that the shipment status is changed from Loaded to Sent. It means that the shipment is finished and the truck is released.

The shipment lines handling status is now Completed.

The Inventory transactions issue status remains Picked.

The Shipment Manager releases the truck.