Understanding Shipment Confirmation and Shipping Documents Confirming Order Shipments and Generating Shipping Documents by Ayman Refat - March 13, 2018March 13, 20180 Understanding Shipment Confirmation and Shipping Documents Concept After warehouse personnel pick the items for an order, you must verify that the item and shipping information is correct before shipping the order. When you run the ship confirmation process, the system can perform other processes for your order. The processes include updating the on-hand inventory or improving inventory accuracy with load and delivery confirmation. You can also ensure the accuracy of your order by entering serial number information or confirming test results for shipped items during ship confirmation. Shipping documents: • Provide delivery personnel with a means of comparing what they are supposed to deliver with what they are transporting. • Function as a receipt because they contain signature lines for both the delivery person and the customer. Procedure In this topic, you will learn how to update on-hand inventory through shipment confirmation and the uses for shipping documents. Step Action After printing pick slips, confirming the shipment of the customer’s order is the next step in the sales order business process. Use the Shipment Confirmation program (P4205) to: • Verify that the inventory left the warehouse. • Validate the location from which the item was picked. • Verify the quantity, item, and shipping information before shipping the order. • Ship on-hold items that have an allowed lot status. Step Action When you ship confirm an order, you can perform additional tasks or processes for your order. This diagram illustrates the various tasks that you can perform during shipment confirmation: • Assign serial number. • Add miscellaneous charges. • Reduce on-hand inventory. • Change location in warehouse. • Change quantity. • Use advanced status codes. • Backorder or cancel lines. • Change commitments. You can ensure the accuracy of your order by entering serial number information or confirming test results for shipped items during ship confirmation. You can enter miscellaneous charges, such as packing or handling fees. Although you cannot add inventory items to a sales order during shipment confirmation, you can add amounts for nonstock items, such as handling charges and freight, depending on the processing option settings. You can subtract on-hand quantity from inventory during shipment confirmation. The system creates a record in the Item Ledger table (F4111) with the sales order as the document number and the order type as the document type. During sales update, the system overwrites the record with the invoice number and type, GL date, and batch number. To relieve the on-hand quantity for an item during shipment confirmation, you must add the order types to user-defined code (UDC) table 40/IU. You can adjust the location from which an item is shipped. Changing the location can be necessary to keep accurate inventory records. If the shipment quantity is less than the order quantity, you can adjust the shipment quantity on the sales order. When you confirm an order, the system advances the order to the next status and updates the statuses in the Sales Detail table (F4211). For example, the system advances an order with a status of 540 to 560 after you confirm shipment. After the system updates statuses in the F4211 table, you cannot reverse ship confirm for an item because the system considers the item shipped. If you do not have enough inventory to fill a quantity of items, the system processes the order depending on: • Whether the processing options for the P4205 program are set to backorder, cancel, or ship available items. • Whether the customer billing instructions allow backorders. Step Action The Shipment Confirmation program (P4205) contains multiple tabs for processing options. The tabs contain processing options that define and control how the P4205 program functions. The Defaults tab processing options specify default values, such as the document type, that the P4205 program uses when other values are not entered for the transaction. The Edits tab processing options specify whether the system verifies availability before confirming the order detail line and whether you can change the quantity. The Display tab processing options specify whether the system displays certain types of sales order information or allows you to enter additional lines during confirmation. The Selection tab processing options specify the criteria that the system uses to select order detail lines for confirmation. The Process tab processing options specify whether the P4205 program enables you to: • Override order information, such as the line type and ship to address. • Relieve on-hand quantity. The Versions tab processing options specify the version that the system uses when you confirm an order detail line. If you leave a processing option blank, the system uses version ZJDE0001. The Freight tab processing options specify whether the system retrieves freight information and whether you can override the freight and carrier information. Step Action The Ship Confirm Batch Application program (R42500) enables you to confirm multiple shipments at one time. When you confirm shipments for orders in batch mode, the system retrieves all orders at the status that you specify in the processing options of the R42500 program. The system does not process orders with these criteria: • Orders currently on hold. • Orders previously processed for ship confirmation. • Orders with a future committed quantity greater than zero. • Orders being processed in the JD Edwards EnterpriseOne Warehouse Management system. Step Action You can run the R42500 program in proof or final mode. When you run the R42500 program in proof mode, the system: • Does not advance the status of the orders or update the database. • Sends any electronic error messages to the Work Center. You can correct errors in the Sales Order Entry programs (P42101 and P4210) and resubmit the order for confirmation. Step Action You print shipping documents after you confirm the shipment of the sales orders. Printing shipping documents is an optional step in the sales order process. You can, however, set up order activity rules to include the Print Shipping Documents status code (570). Shipping documents: • Provide delivery personnel with a means of comparing what they are supposed to deliver with what they are transporting. • Function as a receipt because they contain signature lines for both the delivery person and the customer. Step Action Shipping documents, such as bills of lading and delivery notes, accompany the order to its destination. A bill of lading lists information about the sales order. The document can include: • Item description, quantity, weight, and volume. • Customer address and price. • Shipping instructions, total weight, and total volume. • Signature lines for the driver and the customer. You print delivery notes to provide delivery personnel additional information about the order, such as: • Specific directions to the delivery destination. • Special hours that the customer accepts deliveries. Delivery notes are helpful when a company uses its own vehicle for deliveries instead of external vehicles. You can provide delivery notes to a customer only if the customer’s billing instructions allow delivery notes. In summary, when you confirm shipments, you can verify sales order information, enter additional information, such as packing or handling fees, and determine when the inventory leaves the warehouse. Printing shipping documents, such as bill of lading and delivery notes, is an optional step in the sales order process. End of Procedure.