Help
BC:

Question:

Article:

How do other customers handle Line type 2 direct deliveries in M3

Categorized as:

Good afternoon MUGA group!

I would love to hear some insight on how other M3 customers are handling ‘Line Type 2 – Direct Delivery’ in customer orders and work orders. We use this all the time; however, we'd love if this could capture more data when utilized.

M3 doesn’t consider the sale (Customer Orders OIS300) or purchase (Purchase Order PPS200) in item statistics (MMS090) when this line type is used. This is because direct delivery from supplier to  Read more...customer does not affect on-hand item quantity (on-hand balance never changes in MWS068). Our business uses annual usage and item history to help identify safety stock levels and forecasting we should have at each warehouse.

A business example is that we would increase the on-hand safety stock to reduce lead times for WOs and COs. This also impacts us because we could see item usage as ‘very low’ when the item usage is high. From MMS090 (item statistics) and MWS070 (transaction history) we don’t see the same history as we would researching (customer order lines) OIS101 and (purchase order lines) PPS201. This leads to conflicting reporting.

Work arounds that I know of would be to utilize a third-party reporting system that would help account for line type 2 – direct deliveries. Like everyone else, I’d assume we want to keep everything internally in M3 without committing a new project cycle for a third party process and creating custom report logic.

Thank you! Show less...
Delivered Read
Group: *MUGA

Comments (5) (Descending Chronological Order)
There are no comments at this time, be the first to comment

BC:
We are establishing direct shipments utilizing line type 2 orders now. For notifications and reporting we are collecting what M3 can provide and using our external analytics platform (Power BI) to incorporate this new line type two order process into our existing customer and associated production order metrics. Since no real inventory comes through our warehouses we are not concerned of the physical asset value of the inventory. However, we are still working out with out finance team how to  Read more...book the transactions into appropriate accounts. William, on this thread has been a tremendous help for us on setting this up.

Regards,
Lee. Show less...
BC:
Thank you Will and Doyle!

I appreciate hearing your feedback/perspectives. Thank you so much!
BC:
We use line type 2 extensively on COs. We have an external reporting tool to handle our reporting. Like William said, I think it's unlikely you'll find the report that you want within M3 itself. All the data is there, but the way you want to look at it is not part of the M3 functionality.
BC:
Hi Jonathan,
You're right that item statistics only covers inventory transactions, so for direct delivery POs this is insufficient since there is no inventory. In that case, it probably makes sense to use sales statistics or purchase statistics instead to capture the data. That doesn't naturally fit into item statistics for incorporation into things like safety stock or forecast calculations, but if there is no inventory or delivery then it makes sense to exclude it (in many cases).  Read more...At the end of the day though, order statistics and item statistics are different things for different purposes and it makes sense that they wouldn't reconcile 100%, but I think reasons like this are why most M3 customers have external BI tools to manage these kinds of requirements.

Thanks and regards,
Will Show less...
BC:
I realized my screenshots never attached, here is a reference within M3 of what I am referring to.

Thanks all!
Direct Delivery Screenshots.docx

Online