Inventory in MSD

Created by Rohit M M M Chavan, Modified on Mon, 14 Aug, 2023 at 1:26 PM by Rohit M M M Chavan

Detailed FAQ Document with SS can be found accessed by clicking here

1. How inventory gets enabled in OMS or MSD ?

Ans - It depends on the Product type associated with the product selected in SO or PO

If product type “Item” is selected, it enables the inventory in MSD365
If Product type “Service” is selected, it disables the inventory in MSD365

2. What are all the BUs that have inventory tracking currently ?

Ans - In V0 of ERP implementation at zetwerk, below BUs are tracking inventory on MSD.

General Fabrication - Only Downstream
Railways - Only Downstream
Only NAB - Solar

3. What are basics of inventory tracking?

Ans- Please check below basics of Inventory tracking

a. What to be tracked ?

Product. Product is pulled from the item Master captures multiple features for each product : HSN , Unique Code , Storage dimensions, UOM etc

b. How much is the inventory ?

Qty + Value - Weighted Average (WAV) - Method for inventory valuation at CN(Batch Number) + Product level

c. Where is the product lying?

Warehouse mapped to particular site.

4. What are all important things to be considered from an inventory point of view ?

Ans-

Product type - Item / Service
Site - In our case, site is always the BU
Warehouse - Warehouse can be of multiple types. The basic thing to keep in mind is that warehouse in PO should be the location where the actual inventory is lying
Journal is being used, remember that the batch is the CN number
BOM journal - This triggers the consumption of RM into SFG or FG and is automatically sent from Ziso to MSD365 whenever the last stage is updated for a supplier
Transfer orders - To be used when inter-state movement is there. Access only with the Business Finance team. Always use “Stock transfer” under transfer type

5. What are all the thumb rules for choosing a warehouse ?

Ans -

Warehouses not present in the dropdown are to be added via freshdesk portal - MDM team is the SPOC for adding warehouses
For SO: BU warehouse
For PO:

MSC - DD: DD warehouse

MSC - NDD: Vendor or BU warehouse

Upstream: Vendor or BU warehouse

Downstream: Vendor or BU warehouse

6. How to perform a GRN in OMS <> MSD ?

Ans -

a. Under order list, find the OD and go to “Documents”

b. On the right hand side of the screen, “Create GRN” option will be visible. Under that, the user gets two options

i. New GRN

ii. Update/Cancel GRN

c. On clicking this, the user will be redirected to MSD screen which shows all POs

d. The user has to do Ctrl + V, the OD number gets pasted and click enter

e. Click on the OD and by default the user will be in Receive screen

f. Under Receive > Generate > Product receipt for performing the GRN

g. A new screen will open asking the user to enter the “Product receipt” number. Eg. The user can provide a vendor bill number or a unique number. This will be stored as GRN number

h. Scroll down to update the quantity under “Lines”

i. Upon updating the quantity, the user has to post the GRN. Check the “OMS qty” and ensure that the quantity of GRN doesn’t exceed the OMS qty

j. This action completes the GRN cycle.

7. Under ZW - Custom Fields in the Product receipt journal, what options are available under “Product receipt status”?

a. Posted: When the GRN is posted successfully

b. Corrected: When a posted GRN is corrected.

i. Updation of quantity

ii. Updation of warehouse. This can be done through registration process*

*The option of updating the warehouse to be avoided. If the warehouse is selected properly at PO creation, the user can avoid this step.

iii. Under correction screen, the user can’t change the GRN number

c. Canceled: When a posted GRN is canceled

i. The user can’t reverse the canceled GRN once it’s posted

ii. Post cancellation, the user can use the same GRN number for performing another GRN

8. What all options are available when a wrong GRN is performed ?

Ans - Below options are available-

Correct GRN
Cancel GRN
Do a transfer Journal - Not recommended

9. What is the difference between a stock transfer and a transfer journal ?

Ans - The difference is as below-

a. Stock Transfer:

i. This action on MSD creates a document (e-invoice) which means it has tax implications

ii. This document is mandatory from taxation point of view

b. Transfer Journal:

i. This action on MSD moves the system inventory from one warehouse/Batch number to another warehouse/Batch number

ii. This action doesn’t have any tax implications

10. When to do a stock transfer?

Ans - On two scenarios, stock transfer is applicable-

a. Physical transfer of goods from one state to another

Eg: If ZW owned material is shifted from one state to another state. This material should be sold between ZW GSTs. Meaning if an RM is transported from ZW-Wardha factory to ZW-TamilNadu factory, stock transfer has to be done and e-invoice document should be printed and sent along with the vehicle.

b. Virtual transfer of goods from one state warehouse to another warehouse

Eg: If RM is procured under OD-KA and the delivery location is MH or TN or CT, then GRN should be done in KA virtual warehouse first. Then a stock transfer has to be performed from virtual KA warehouse to MH or TN or CT warehouse

11. Who has access for doing a stock transfer?

Ans - Only Business Finance users have access for stock transfer in MSD. Since tax implications are there, the access is restricted to finance users only.

12. For a downstream project, how many stock transfers to be done ?

Ans - On two instances, stock transfer to be done

When transferring RM from virtual Warehouse to factory warehouse
When transferring FG from factory warehouse to virtual before generating customer invoice

13. When to do a transfer Journal ?

Ans - On two scenarios, transfer journal is applicable

a. Movement within a single factory. Eg. Wardha conversion warehouse to Wardha offcut warehouse or scrap warehouse. It is recommended to move the offcuts to offcut warehouse post completion of a CN/project. This will help in giving visibility to the users on the inventory available

b. From one vendor location to another vendor within the same state. Here, DC & e-waybill will be generated in OMS. But the stock movement should happen in MSD via transfer journal. Without this step, BOM journal trigger will fail in MSD

14. Who has access to perform a transfer journal ?

Ans - Only Delivery team users have access to the transfer journal in MSD. Since tax implications are there for stock transfers, the access is restricted to finance users only

15. Scenarios for shifting a RM from one project/CN to another project/CN?

Ans - There are two scenarios wherein we can shift RM from one CN to another

If an RM is received at one location and GRN is posted. Later, due to internal decision like capacity or non-performance of the vendor, the user can move the material from one CN to another
If an RM used under one CN is consumed for producing an FG and generates an offcut in this process. This offcut to be used for another CN

16. How to shift the RM from one CN/project to another CN/project?

Ans - Solution in this case is Inventory Adjustment Journal (IAJ)

Through IAJ, one can shift the RM from one CN to another CN following the below steps

Eg: RM to be moved from CN123 to CN234

Find the RM code to be shifted, add it in the line
Enter the qty with a (-) sign with batch number as CN123 + add financial dimensions (Project: CN123)
Add line with the same RM code
Enter the qty with a (+) sign with batch number as CN234 and price as per CN123 + add financial dimensions (Project: CN234)

17. How to import excel in Transfer order and transfer journal ?

Ans -

Format for transfer order: Transfer Order Template

Format for transfer journal: Transfer Journal Template

Instructions for filling the templates are mentioned in the google sheet.
Pls refer to the same and fill in the details. If any field is incorrectly filled or missed, MSD will throw error mentioning the line number
Transfer order: Field “Price Type” is important and HSN/SAC to be properly selected along with “Tax Rate Type” for that particular HSN/SAC

18. Scenarios for doing Inventory adjustment Journal (IAJ)

Ans -

The below scenarios to be handled with IAJ

Shifting an RM from one project/CN to another project/CN
Using Financial dimensions, movement can be done from one project to another project
Passing adjustment entries at a RM level post physical verification
To account for any inventory mismatch like missed/stolen materials, accounting burning loss

NOTE: IAJ access will be available only for BUSINESS FINANCE

19. How can MSD365 help in inputting steps required for completing a transaction ?

Ans - MSD365 has a feature for providing users with step by step instructions on how to complete a transaction. This is done through task recorder (.axtr files). For each inventory related transaction on MSD, we will be sharing the .axtr files. Based on the transaction performed, the user can select the .axtr file and start playing it under “Play recording as guide” option

.axtr files can be found in the link below:

https://drive.google.com/drive/folders/1hy9FT4CFj6jbQOMNbYv4ldUWrXYNHbp6

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