Models Overview

Models are defined as any number of individually stocked items that, when sold collectively, make up a unique inventory item. You stock the Components and assemble the Model only when new orders are entered. It is never expected that a Model will have any Quantity On Hand.

A product record is created in Maintain Inventory Master (IM13) for the Model and for each of the Component items.

• The Model header record must be coded Product Type 'MO' in IM13.

• The Component product records may be coded any of the following product types:
  • PP - Purchased Products
  • WO - Work Order
  • AI - Assortment Item

Once the Model and Component products have been created, Model Maintenance (IM29) is used to identify the Components and Sub-Assemblies that are required to build the Model.

Sub-Assemblies are 'Groups' of Component products that can be used to build the Model. When using Sub-Assemblies, a multi-level model may have up to 3 "levels" of Components:

1. Level 1 - specifies mandatory or optional Components and/or Model Groups (Sub-Assemblies).
2. Level 2 - specifies mandatory or optional Components within a Model Group (Sub-Assembly) or specifies another Group within this Group.
3. Level 3 - specifies Components within a Level 2 Group.

When a Component is assigned to a Model, it can be configured in the following ways:

• As a mandatory Component, including the quantity required to build the Model.
• As an optional Component, with a minimum and maximum number of 'repeats' allowed when the Model is being built during Order Entry.
• To contribute to the final selling price of the Model by adding an Upcharge dollar amount to the base-selling price of the Model.
• To print, or not to print, as a sub-detail line on orders, quotes and invoices.

When a Sub-Assembly is assigned to a Model, it can be configured in the following ways:

• It may contain mandatory or optional Components.

• The minimum and maximum number of selections that can be made from the list of optional Components in the Sub-assembly is specified. For example, a Sub-Assembly offers a selection of terminals that may be added to a computer system and only one may be selected when building the model in Order Entry.

• It may contain another Sub-Assembly. Three 'levels' are allowed within a single Model.

The component items may be Serial or Lot controlled from point of receipt but the Model header may only be Serial controlled from the point of invoicing (because Models are never stocked). A Model may not be flagged for Lot control (because Lot controlled products are always controlled from point of receipt).

In Enter Orders/Quotes (OE30), orders are entered against the Model product code. Upon update of the Model detail line, the 'Select Component' window opens:

• If the Model is defined with only mandatory Components in Level 1, then those Components are displayed and the operator simply hits the OK button to continue. If there are optional components in Level 1, then the operator must select the component to include it.

• If there is a Sub-Assembly, then the components inside the Sub-Assembly are listed.
  • If there are optional components inside the Sub-Assembly, then the operator is prompted to make the desired selection(s) up to the maximum allowed.

  • If there are only mandatory Components inside the Sub-Assembly, then the Components are listed and the operator simply hits the OK button to continue.

Upon completion of the Component section, the Components are automatically listed as order detail lines with the B/O and To Ship quantities based on their availability. If the Model cannot be filled because Components are not available, the B/O quantity will also be recorded on the Model detail line. Note: You do not have access to the B/O and To Ship quantities for the Component detail lines; they are assigned as a by-product of whatever is in stock.

The components are optionally printed on the quote/picking slip and on the customer invoice.

Models cannot be transferred from one warehouse to another; the individual components must be transferred.

Models may be ordered from an e-Commerce web site, however Sub-Assemblies within the Model may contain Component products only (i.e. may not contain another Sub-Assembly). This limitation is to ensure that the Model is simple enough for display and manipulation on an e-Commerce web site.

Notes for Order Management

• Model headers cannot be guaranteed because models are never stocked. Only the components of a model can be guaranteed.

Notes for Packing Station

• For full details on models in Packing Station (PS30/Carton Detail), click here.

Pricing, Costing and Stock Updates

• Demand Units are updated for the model header and components. For future orders, Demand Units are updated when the future order is released.

• The Selling Price is always extracted using the model product code but may increase if upcharges are assigned to any components (in IM29).

• The Cost of the model is equal to the sum of the cost of the components. If an override cost is entered for the model on the order detail line, then that is the cost used.

• Sale of a model always relieves inventory for the component products; the inventory movement record is written against the component products.

Display Product Availability

• On Res, on B/O, Avail updated for model header and components.

• IC45/R3-Set Explosion can be used to check component availability for a model that has all fixed components but if there are sub-assemblies, then the Test function in Model Maintenance (IM29) must be used to simulate building a model. Availability is displayed for all components, fixed or selected from within sub-assemblies. The Selling Price, accumulated Cost and GM% for the model are also displyed upon completion of the test build.

Demand and Sales Statistics

• Units booked (demand) and units sold are updated for the Model product code and for each of the components used to build the Model. Sales dollars and cost of sales are updated for the Model product only.

G/L Interface

• The sales and cost of sales GL control accounts are extracted using the GL code from the Model product record (in IM13). The inventory control account is extracted using the GL code from the component product record (in IM13).

Recoding Inventory Models

• For complete details on recoding inventory models, click here.