Peoplesoft Inventory and Costing 9.1

Senthil kumar Janakiraman

Peoplesoft Functional Consultant

email Id: Senthil-kumar.janakiraman@capgemini.com

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• Overview of Inventory & Costing• Workflow • Configuration Setups• Transaction Flow• Reports

Peoplesoft Inventory and Costing 9.1

Overview of Inventory & Costing

Inventory:-

PeopleSoft Inventory enables you to

PeopleSoft Inventory helps you make faster, more accurate decisions, which is critical in today's complex global inventory environments.

Costing:-

PeopleSoft Cost Management supports a variety of inventory costing methods that enable you to effectively Track Costs in Production as well as in your Finished goods supply chain. It also enables you to easily perform Revaluations, Analyze manufacturing performance and Perform Cost Simulations.

Increase your Reduce your

Inventory Accuracy Carrying Costs

Customer Service Levels Labour Costs

Inventory Write-offs

Define inventory business units independent of your general ledger. Use a multilevel storage structure to provide flexibility and simplify transaction

processing. Provide ability to drive inventory balances negative and reconcile discrepancies.

Stock and Location Replenishment :-• You need to know when your supply items are getting low. With powerful

automation capabilities and intuitive data screens, it’s easy to replenish materials with PeopleSoft Inventory. You can:

Generate a replenishment requisition based on current stocking levels, economic order quantity (EOQ), and reorder point.

Use flexible, ad-hoc requisitioning for backorder management. Track reorder points based on multiple criteria.

Peoplesoft Inventory Features

• Item Costing:-Cost Management provides full item costing functionality.

- Add costs in addition to material, labor, machine, and conversion.- Calculate additional costs based on percentage of material costs, percentage of total costs, or amount per unit.- Establish transfer prices or mark-up percentages for items transferred at different costs to other business units.

• Landed Costs: –To track the complete cost of an item, you can include the landed cost charges in the item’s cost. Landed cost charges

can include expenses such as freight, insurance, duty, and handling. - Specify the calculation and allocation method for each charge define at landed cost charges for items.- Create cost templates specify item, item category, vendor, vendor location, ship-to ID, and purchasing business unit.- Directly associate, in PeopleSoft Purchasing, cost templates and individual charges with a purchase order header or purchase order schedule

• Support of Multiple Costing Methods :– - Support the need for financial, governmental, and management reporting, you can maintain multiple cost books within a

PeopleSoft Inventory business unit in those environments where you buy and sell inventory with no manufacturing. - Items in each cost book, you define a profile, consisting of a receipt cost method, a cost flow, and a deplete cost

method, to value inventory transactions involving those items.- Costing approach you choose can be independent of how the inventory is physically moved. Methods are Non-cost,

Standard, FIFO actual, LIFO actual, By specific lot ID and By specific serial ID, Perpetual weighted average, Periodic weighted average and Retroactive perpetual average.

• Inventory Accounting :- Define the accounting entries for each transaction, transferring from one location to another location, Create Costed

Transaction records for all inventory BU’s and IntraUnit processing to create balancing entries for transfers between Chartfields within the same BU.

Peoplesoft Costing Management Features

Inventory Workflow

INVENTORY

Inventory Control

Purchasing Processing

Sales Processing Invoicing

Sales Return Processing

Purchasing Return Processing

Receiving and Billing

Inventory Integration with Other Modules PeopleSoft Purchasing:- Requisition Created & Send

from Purchasing to Inventory as a Material Stock request if stock is available. If stock is unavailable, you can add the requisition to a PO and dispatch it to a vendor in Purchasing. Items on a PO are received from the vendor in Peoplesoft purchasing, the items can be put away in Peoplesoft Inventory BU using the Putaway processes.

PeopleSoft Payables:- The Landed Cost Extraction process in PeopleSoft Payables can pass cost adjustments to PeopleSoft Cost Management for the stock putaway in PeopleSoft Inventory .

Peoplesoft Order Management:- When PeopleSoft Inventory ships the items, the data is updated on the sales order. PeopleSoft Inventory also sends sales order information to PeopleSoft Billing for invoice creation.

Peoplesoft Billing:- From PeopleSoft Order Management, can be passed from PeopleSoft Inventory to PeopleSoft Billing for invoice creation, or detailed pricing can be passed using miscellaneous charge codes, including discounts, surcharges, freight, taxes, and value-added tax (VAT).

Peoplesoft Cost Management:- Landed Cost Extraction Process in Peoplesoft Payables can pass cost adjustments to Peoplesoft cost management. Calculates the cost and creates the accounting entries to record Putaways, shipments, adjustments and other material movements.

PeopleSoft Project Costing:- Creating a material stock request, you can enter information to be used by PeopleSoft Project Costing

Peoplesoft General Ledger:- Accounting entries recording the activity in Peoplesoft inventory are retrieved from Cost Management create Journal entries that are posted in the GL Business Unit.

PeoplesoftInventory

Quality

PurchasingSupply Planning

Order MgmtProduct

Configuror

Engineering

Promotations Mgmt

Demand Planning

ProjectsInv PolicyPlanning

Billing Projects

CommitmentControl

General Ledger

Cost Management

Manufacturing

eProcurement

MaintenanceManagement

Configuration Setups

- Inventory Business Unit Set Ups

- Inventory Structure Tables Set Ups

- Putaway Options Set Ups

Inventory Business Unit Definition

Inventory Business Unit Options

Business Unit Options – Shipping Options, Replenishment Options, Revenue and Billing Defaults, RMA Defaults and Estimated Shipment Definition.

Inventory Business Unit Counters

Inventory Business Unit Books

Note: - Associate the cost book with a PeopleSoft Inventory business unit, ledger, and ledger group.

Inventory Structure Tables Set Ups

• Storage Location Types• Inventory Status Types• Item Storage codes• Return Type codes• Item Packaging Codes• Backlog Reason codes• Hold Codes• Transfer Attributes Defaults• Storage Rules

Inventory Structure Tables setup

Putaway Setups

Define Units of Measures

Define Freights Carriers

Define Category Codes and Category Sets

Define Catalog Groups

Define Suppliers Suppliers

Newyork Paris India

Define Buyers

Define Items

Common Configuration Setups for Inventory & Costing :-

UOM Class UOM UOM Code Base UOM

Quantity Each EA Yes

Quantity Box BX No

Quantity Gram GR No

Weight Kilogram KG No

Quantity Dozen DZ No

DHLDHL

Buyer Category Ship to

Larry Hardware Paris

Raman Software India

Inventory and Costing Transaction Flow

Step-1 Creation of Online Purchase Order

Step-2 Creation of Goods Receipt Note

Step-3 Inventory Putaway Process

Step-4 Creation on PO – Receipt Voucher

Step-5 Land Cost Extract Process

Step-6 Generate Costing Transactions and Creating Accounting Entries

Step-7 Review the Cost Item Balance

Step-8 Creating Adjustment Inventory Transaction – Interunit Transfer

- Decrease Inventory Adjustment

- Increase Inventory Adjustment

Step-1 Creation of Online Purchase Order

Navigation Path: Purchasing -> Purchase Order-> Add/Update PO’s

* After Save PO Bottom it become generates PO ID & PO status became Approved from Open

* Click on Dispatch Button it will run Dispatch Process

PO Status : Dispatched

Run PO Dispatch Process - PODISP

Step-2 Creation of Goods Receipt Note

Navigation Path: Purchasing Receipts Add/update Receipts

Process Receipts :-

Select Application Process Name: Receiver Interface Push .

Receipt Push Inventory.

After getting PO_RECVPUCH Process then review the Receipt Status : Moved

Receipt has been processed by RECVPUSH, which creates the Landed Cost Transactions for New Receipts, and may Interface them to PeopleSoft Asset Management, PeopleSoft Inventory, or PeopleSoft Manufacturing.

Step-3 Inventory Putaway Process

Navigation Path: Inventory Putaway Stock Correct Staged Errors

Navigation Path: Inventory Putaway Stock Load Staged Items

Note: If review any Items showing errors status mostly the storage Location will be blank or not define. Remedy to define the storage location then system will allow to saving.

Stock room Feedback:-

Navigation Path: Inventory Putaway Stock Stockroom Feedback

Note: After Review and update the actual putaway information based on a putaway plan click on putaway checkbox and click on Top Right Side Putaway Button.

Complete Putaway Process

Navigation Path: Inventory Putaway Stock Complete Putaway

Step-4 Creation on PO – Receipt Voucher

Search from voucher receiver Lookup criteria page enter Receipt No or PO No. and select & click on copy selected lines.

After Enter Invoice no. & Date and save the voucher.

Check Entry status : Postable, Match Status: Ready, Approval Status: Approved and Post Status: Unposted.

Run the Match Process Name: AP_MATCH.

After Match Process Run Status will be change to Matched

Run the Voucher Posting

Review the voucher Post status : Posted

Step-5 Land Cost Extract Process

Step-6 Generate Costing Transactions and Creating Accounting Entries

Journal Generator Process

Inventory Transactions(TRANSATION_INV)

Accounting Entries(CM_ACCTG_LINE)

Journal Entries for the General Ledger

Transaction Costing Process

Accounting Line Creation Process

Cost Accounting Creation Process

Transaction Costing and Accounting Line Creation Process flow:-

Transaction Costing:-

Process Name: Transaction_INV

Inventory system posts inventory transactions into the TRANSACTION_INV table, from there Peoplesoft Cost Management can assign costs to the transactions and create accounting entries.

Accounting Line Creation Process flow:-

Process Name: CM_ACCTG_LINE

The Cost Accounting Creation Process (CM_CSTACTG) is an application engine process.

1. Transaction Costing Process (CM_COSTING). This application engine process picks up these inventory transactions and attaches costs to each transaction based on the item’s cost Profile.

2. Accounting Line Creation Process (CM_ALC). This application engine process picks up the calculated costs, creates the accounting entries, and stores the entries in the CM_ACCTG_LINE table.

Cost flow for Inventory Transactions:-

Navigation Path: Cost Accounting Item Costs Review Costs Item Cost

Step-7 Review the Cost Item Balance :-

Creating Increase / Decrease Inventory Adjustments

- Decrease Inventory Adjustment

- Increase Inventory Adjustment

Navigation Path: Inventory Manage Inventory Adjustments

Step-8 Creating Adjustment Inventory Transaction – Interunit Transfer :-

Process Name: CM_TRANSACTIONS

Navigation Path: Cost Accounting Inventory and Mfg Accounting Create Accounting Entries Cost Accounting Creation

Process Name: CM_CSTACCTGNavigation Path: Cost Accounting Inventory and Mfg Accounting Create Accounting Entries Cost Accounting Creation

Generate Costing Transactions:-

Peoplesoft Delivery Reports:-Inventory Reports:-- Peoplesoft Inventory Storage Locations – Report Id INS2000

- Peoplesoft Inventory Putaway Plan – Report Id INS3500

- Utilization Type Calculation Report – Report Id INS5100

- Slow Moving Inventory – Report Id INS5200

- Negative Balance Report – Report Id INS5300

- Stock Status Report – Report Id INS5400

- Lot Trace Report – Report Id INC5575

- Inventory Value Report – Report Id INS7000

- Inventory Balance Audit – Report Id INS9090

- Consumer Usage Reconciliation – Report Id INS9070

Costing Report :-

-Average Cost Adjustment /PPV – Report Id CMS1000

-Item Cost profiles – Report Id CMS2000

-Overridden Cost Profiles – Report Id CMS2001

-On Hand Value Report – Report Id CMS2010

-Total Purchase Variance – Report Id CMS3010

-Standard Purchase Variance – Report Id CMS3020

How to get Peoplesoft Inventory & Costing Context HelperSenthil Kumar Janakiraman – Functional Consultantemail Id: Senthil-Kumar.janakiraman@capgemini.com

Together. Free your energies