Transaction codes#
These codes provide you with insights into asset ownership and valuation at your company’s premises. They’re also used to create a fixed asset from inventory and dispose of it later. In short, they’re essential to managing receipts, shipments, and transfers of items in the system.
Setup#
Codes#
To specify a code:
- Choose the Search icon, enter Transaction Codes, and then choose the related link.
- On the ribbon, choose New, and then fill in the fields as described in the following table.
| Field | Description |
|---|---|
| Code | Specify a code for the transaction. The code must be unique. |
| Description | Specify a description for the transaction. |
| Valuation Type | Specify how the system should calculate the value of an item that was posted to inventory with the help of this transaction code. Valued Classifies the item as a current asset (which is regularly bought or sold). Variable Indicates that the item is stored by you but still owned by a vendor until consumed or taken out of inventory for other purposes. Value entries for the item are therefore calculated on removal, not earlier. Not Valued Marks the item as a fixed asset or third-party property (provided for the purpose of repair or reuse). In either case, the item is not owned by you. |
| Ownership Type | Specify who owns the item. This information is then copied to MRP, that is, to requisition and planning worksheets (unless the item is a fixed asset). You can choose Fixed Assets, Third-Party Property, or Current Assets here (with the last being the default option) to have FA and TPP fields filled in automatically on stockkeeping unit cards, for example. The option selected in this field also determines the kind of inventory (such as Item or TPP Inventory) shown on SKUs. |
| FA Transaction Code | Specify a transaction type in this field if the item is a capital asset. |
| Default Inbound Code | Specify the default code that will be used when a warehouse receipt is posted. Note The code must be set to Valued. |
| Movement Hierarchy | Shows if a movement hierarchy is available for the transaction code. You can choose Movement Hierarchy on the ribbon to view and edit a hierarchy. |
| Pos. Adjmt. If Capitalized | Turn on this toggle if receipt of an item can only be posted following capitalization. |
| No Transact. Code Change | With the toggle turned on, the transaction code cannot be changed. |
Movement hierarchies#
A movement hierarchy is used to specify how items will be taken out of inventory as part of a transaction and if the transaction code that you entered on the related sales order should be converted following shipment.
- Choose the Search icon, enter Transaction Codes, and then choose the related link.
- Select a code, and then choose Movement Hierarchy on the ribbon.
- Fill in the fields as described in the following table.
| Field | Description |
|---|---|
| Transaction Code | Shows the transaction that the hierarchy will be created for. |
| Hierarchy Code | Together with the Transaction Code, uniquely identifies the record in the hierarchy. Note We recommend that you specify a meaningful abbreviation in this field so that the user can recognize each transaction immediately. |
| Description | Enter a description for the hierarchy. |
| Hierarchy No. | Specify the order in which you want to process multiple hierarchies set up for a transaction code. The number in this field is used to determine the inventory (that is, stock adjustment code) that will be picked for shipments from the warehouse. |
| Movement Type | Specify if items are sold as part of a sales order or transferred to a customer’s warehouse. |
| Ignore Whse. Shipments | Turn on this toggle if you do not want the system to use a hierarchy automatically to ship from a warehouse. |
| Stock Adjmt. Code | Enter a code that will be used to offset item removal from inventory (for sales orders). Note This field must be filled in. |
| New Transaction Code | For transfers Items are removed from inventory by using the stock adjustment code and are immediately posted to a customer warehouse with the code in this field, creating transfer entries in the process. Note The new code must correspond to the stock adjustment code when it comes to the valuation type. In short, a transaction code of type Not Valued cannot be used together with a stock adjustment code of type Valued or Variable, as item ownership cannot change hands through a transfer. For sales The stock adjustment code is used to sell an item from a warehouse (=negative adjustment). Receipt (=positive adjustment) is then posted to the customer’s warehouse based on the code in this field. Note Leave the field blank if you do not want to use a new transaction code for sales transactions. |
Note
Movement hierarchies can be entered only on sales orders; all other records and documents use ‘standard’ transaction codes.
For sales order types#
If you’re working with sales order types, you can specify transaction codes for them as well. They are then used as default codes when you set up lines on an order.
- Choose the Search icon, enter Sales Order Types, and then choose the related link.
- Fill in the fields described in the following table.
| Field | Description |
|---|---|
| Transaction Code | Specify a code for the order type. |
| No Transact. Code Change | Select to prevent changes to the code on sales lines. |
For purchase order types#
You can also specify transaction codes for types of purchase orders. The codes are then used as default codes when you set up lines on an order.
- Choose the Search icon, enter Purchase Order Types, and then choose the related link.
- Fill in the fields described in the following table.
| Field | Description |
|---|---|
| Transaction Code | Specify a code for the order type. |
| No Transact. Code Change | Select to prevent changes to the code on purchase lines. |
On positive adjustment#
Filling in a transaction code is mandatory for positive adjustments to inventory. If no code is entered as part of a transaction, the default code that might have been set up for it is used instead. If none is specified either, you see an error message.
Positive adjustments include:
- Receipts
- Sales returns
- Production orders
- Positive adjustments in item journals
On negative adjustment#
Filling in a transaction code is also mandatory for negative adjustments to inventory. You see an error message if no code has been entered. Negative adjustments include:
- Shipments
- Purchase returns
- Consumption in manufacturing and assembly
- Negative adjustments in item journals
On transfer#
For inventory transfers, filling in a transaction code is mandatory as well. If no code is entered during one of the following transactions, you see an error message:
- Inventory movements specified on transfer orders
- Transfers in transfer journals
On sales orders#
When you edit a sales order, you can use—besides a transaction code—a movement hierarchy to specify the inventory that can be withdrawn for the order.
Entering the transaction code linked to the hierarchy on a document line then fills in the highest-level hierarchy automatically. You can replace the hierarchy with another set up for the specified transaction, if necessary.
You can also delete the hierarchy on a line. It is then no longer used when removing items from a warehouse (only the transaction code on the sales line is).
Note
For picking, the movement type of a hierarchy level must match the type on the sales line. This means that when you pick items for a transfer line, only the hierarchy levels of movement type Transfer are used by the system.
Note
You also need to fill in a hierarchy if you specified a transaction code with one on the sales line but cannot change the code there.
On removal from inventory#
The impact of movement hierarchies varies depending on whether you’re using the warehouse functionality to take items out of inventory.
Remove inventory (no warehouse functions)#
If a sales order is shipped from a location for which no warehouse shipments and picks are set up, you must check available inventory on the sales line yourself and specify the relevant hierarchy for which enough inventory is available. You can run the Inventory Overview action on the Lines FastTab to view current stock levels.
Remove inventory (warehouse functions)#
If you’re using the warehouse functionality, item availability is checked automatically when you create a shipment to pick items for a sales order so that you don’t have to manually change the hierarchy on the order lines.
On code changes#
If you’re using a hierarchy for a shipment that you change the transaction code on, the system will record the change on the item ledger and bin entries set up for the shipment. The item ledger entries are created based on the movement type entered on the relevant sales lines, as illustrated by the following examples.
Example 1 – Transfer
You ship items to your customer’s warehouse by using a movement hierarchy. As part of the transfer, you specify a new transaction code that will be used when the items are received.
The historical data for the shipment can be viewed on the Item Ledger Entries page.
The inventory is then transferred according to the stock adjustment code specified for the hierarchy. However, the transfer entry that is used for the positive inventory adjustment at the destination will already have the new transaction code assigned.
Example 2 – Sale
You move items that will become third-party property at the customer’s warehouse. A hierarchy is used for selling and shipping them.
The historical data for the shipment can be viewed on the Item Ledger Entries page.
The first ledger entry shows the transaction with the customer, including the current asset being valued and removed from the warehouse. The second indicates that the third-party property led to a positive inventory adjustment on receipt at the customer site. It doesn’t contain value entries but tells you where the sold equipment is stored.
On canceling shipments#
For the return of items that you sold, you have two ways of using transaction codes.
Cancel on return#
For one, you can create a return order. The transaction codes on the order document must match those entered for the shipment, including in movement hierarchies.
For the correct codes to be selected, the lines of the document must then be linked to the shipment lines. This link is set up automatically when you run the Get Posted Document Lines to Reverse action from the ribbon.
After you have selected the shipment lines that you want to cancel and chosen OK, the system creates cancellation lines on the return and links each item ledger entry that you want to reverse to a cancellation line or the item tracking code on the line. Based on this entry, it then determines the transaction code that will be used on the reversal document. For more information on how transaction codes for cancellation lines are determined, see On Canceling Lines.
Cancel on shipment#
During posting, the shipped items are then automatically marked for application. The application entries are then used to determine the transaction code on each line that should be canceled (see also On Canceling Lines).
On canceling lines#
The transaction code that will be entered on a cancellation line is based on the type of movement that needs to be cancelled.
Movement type blank (Sale)#
The following checks are performed to determine the code:
Link between return order line and application entry
A cancellation line is linked directly to an application entry if the item on the line isn’t tracked. The code specified for the item (that is, application) entry is then filled in on the line as the transaction code and the stock adjustment code.
Note
If a hierarchy is used on the original document line, the receipt entry that might have been specified together with a new transaction code for the customer site will be canceled as well. See also Movement Hierarchies.
Link between tracking code and application entry
If the cancellation line contains a tracked item, the system checks the tracking lines associated with the cancellation line for a link to an application (item) entry. If a link exists, the transaction code that is stored with the item ledger entry is copied as the transaction code and the stock adjustment code to the relevant tracking line.
If no entry is linked to an item tracking line, the default transaction code that is used for positive adjustments is filled in instead.
Note
If a hierarchy is used on the original document line, the receipt entry that might have been specified together with a new transaction code for the customer site will be canceled as well. See also Movement Hierarchies.
No link
If an application entry isn’t linked to the relevant cancellation line (neither on the line itself or via item tracking), the default transaction code used for positive adjustment is specified as the transaction code and the stock adjustment code.
Movement type Transfer#
The following checks are performed to determine the code:
Link between cancellation line and application entry
A cancellation line is linked directly to an application entry if the item on the line isn’t tracked. The code on the related item ledger entry, as specified by the Transfer From field, is then filled in on the line as the transaction code and the stock adjustment code.
Afterward, the system checks whether a hierarchy was used to post the associated shipment and if the transaction codes specified for the Transfer From and Transfer To entries differ.
If they do but were valued in the same way, the code assigned to the Transfer From entry is entered as the new transaction code on the cancellation line. This new code ensures that, for example, items that are transferred to a customer warehouse from current assets and to which the Items to Capitalize transaction code is assigned are linked to the transaction code for current assets again when they’re reversed.
Note
Fixed assets that have been capitalized at a customer location will be reversed using the original transaction code.
Link between item tracking code and application entry
If the cancellation line contains a tracked item, the system checks the tracking lines associated with the cancellation line for a link to the corresponding application (that is, item) entry. If a link exists, the transaction code is determined in the same way as for the direct link between cancellation line and application entry.
No link
If an application entry isn’t linked to the relevant cancellation line (neither on the line itself or via item tracking), the default transaction code used for positive adjustment is specified as the transaction code and the stock adjustment code.
On selecting tracking codes#
When you choose an item tracking code, the system checks if the code matches the transaction code on the document line that is being tracked. If it doesn’t, you see an error message.
Similarly, when you select a tracking code by using the Assist button in the Serial No. or Lot No. field on a page, the system shows on the inventory overview only lines that are available and where the associated transaction code has been entered.
On Serial No. / Lot No. Info Cards#
When you register the movement of an item that requires a lot or serial number, you can see in the Last Transaction Code field, on the related Lot or Serial No. Info Card, the code that was entered for the most recent transaction.
When you post a transaction that includes moving inventory—such as during receipt, shipment, transfer, purchase, or sale—you must fill in a transaction code. The code is then copied to the Lot or Serial No. Info Card that you posted the transaction for.