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Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 4 · Inventory Organizations and Plants

Organization granularity — how many?

Lesson 32 of 188 · 3 min

One inventory organization per site? Per building? Per legal entity? Per cost centre? There is no default, and the documentation will not tell you. This is a design decision, and it is yours to make and defend. What an organization boundary gives you: separate on-hand balances and separate valuation, a security boundary, a planning boundary, and separate period control. What it costs you, given equal weight deliberately: a full parameter set to configure and maintain, a security grant per role every time, a cost organization relationship, a period to open and close every month forever, and inter-organization transfers instead of simple subinventory moves. That last one is an operational cost that lands on the shop floor every day, not on you once. The decision questions. Do these locations need separately valued inventory? Do they belong to different legal entities? Must staff at one be prevented from transacting at the other?

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In this module: Module 4 · Inventory Organizations and Plants

  1. 1What we are building
  2. 2The decision you cannot undo
  3. 3The organization object model
  4. 4The item master organizationFree preview
  5. 5Organization granularity — how many?
  6. 6Running the facilities design workshop
  7. 7Four worked plant models
  8. 8Creating the item master organization
  9. 9Creating an inventory organization
  10. 10Organization parameters
  11. 11Enabling manufacturing on a plant
  12. 12Subinventory design
  13. 13Locators
  14. 14Inter-organization relationships
  15. 15Proving the structure works
  16. 16What breaks
  17. 17Lab briefing: the Halden Works structure
  18. 18Lab solution walkthrough