Enterprise Material Transfer Overview

In traditional MRP, customer purchase orders become sales orders, which then become purchase requisitions after MRP is run. Purchase requisitions become purchase orders, and approved purchase orders are transmitted to the supplier. In some cases the supplier must manually reenter the orders. These steps can waste time, especially when the supplier is the company’s own manufacturer or distributor or one with whom the company regularly does business.

You can use Enterprise Material Transfer (EMT) to save time by automating several of these steps—and reducing the wait time between them. With EMT you can:

• Automatically generate purchase orders from sales orders, where appropriate. In the simplest scenario, you can just print the purchase order and mail or fax it to your supplier.

• Automatically export purchase orders using EDI eCommerce. Your supplier then imports the purchase order and converts the PO to its own sales order.

• Automatically generate legal and financial data required for international transactions.

• Modify purchase orders easily. When you update your sales order for an EMT item, the system automatically updates the associated PO. EMT also supports automatic transmission of changes using EDI eCommerce. Suppliers can be changed on individual sales order lines or mass-changed on all existing sales orders. Credit hold status on existing orders can be changed whenever the customer’s credit status changes.

• Allocate items directly in real time at a supplier’s site in a different domain in the current database.

• Optionally deviate from standard system logic in determining intercompany prices, as specified in the supplier/item record.

• Chose one of two delivery options for EMT items: direct delivery from final supplier to end customer, or transshipment to the business unit that created the original sales order.

• Integrate with standard invoicing. When your EMT supplier provides the items, you can follow the same invoicing procedures you would use for any sales order.

• Generate sales order tracking reports. You can view the transmission status of the purchase orders generated by EMT or the shipping status of items ordered from EMT suppliers.

Note: If you use the Service/Support Management (SSM) module, you can also use EMT to support material orders (MOs) for EMT transshipment items. See Material Orders.

Depending on the relationships among the business units involved in EMT transactions, EMT is defined as standard EMT or multilevel EMT. A business unit is any supplier or manufacturer in a supply chain other than the original customer.