FTZ Management: Preparation - Product Number Changes Overview - Transactions for PC Parts and IM Parts
This article is an overview of how Product Number changes are handled in the USFTZ module.
Product Number Changes Overview
When operating a Foreign Trade Zone there are times where you need to simply change what a product is called, without the goods moving in or out of the zone. For example, apparel companies may change SKU/Product Nums as seasons change, or, when migrating to a new Enterprise Resource Planning (ERP) system the product naming convention may change.
If this change happens within the ERP, it is important to also change the on-hand inventory within the USFTZ application so that everything continues to tie out correctly and inventory stays in balance between the two systems.
It is also important to transact these changes using specific transaction codes so as not to incur any duty payments, since the goods are not physically moving anywhere within the zone (this is the reason you do not want to make this change using regular adjustment transactions).
When ProductNum changes are processed through FIFO, the application will convert on-hand inventory from one ProductNum to another, so that you are able to now transact against the new v. The layers themselves still stay in tact, since there is no reporting required for simply updating the ProductNum.
Product Number Change Transactions Processing within the USFTZ Module – PC Parts
Transaction Codes
Product Number changes use two transaction codes within the OSGT system:
FTZ TXN CODE | IMPACT ON INVENTORY/IP SIGN/DESCRIPTION |
|---|---|
CPPC | + / + / Positive Product Number Change of a Purchased Component |
CNPC | - / - / Negative Product Number Change of a Purchased Component |
The important thing about ProductNum change Transactions is that they have to come in pairs. A CNPC is created for the product that the ProductNum is changing from (what is currently in inventory), and a CPPC is created for the ProductNum that it is changing to. The TxnQtys should always offset each other for these as shown in Table 1 below.
The ProductNum and AdjProductNum fields on the transaction should always match to the opposite column of the other transaction. i.e. the ProductNum on the CNPC should always be the ADJProductNum on the CPPC and vice versa.
The most important fields on these transactions are listed below.
- ProductNum –
- For aCPPC, this represents the product you are converting inventory into.
- For aCNPC, this is the product you are converting inventory from.
- AdjProductNum
- For aCPPC, this represents the product you are converting inventory from.
- For a CNPC, this is the product you are converting inventory into.
- TxnQty
- This must match between the CPPC and CNPC (the CNPC will have a negative sign in front of the TxnQty, but, the absolute value needs to match between the two transactions.
Table 1 – Setup of ProductNum Change Transactions for PC Parts
TxnCode | ProductNum | ADJProductnum | TxnQty | Physical Movement |
|---|---|---|---|---|
CNPC | ProductA | ProductB | -10 | This is the part that is being converted from |
CPPC | ProductB | ProductA | 10 | This is the part that is being converted to |
Manually Creating Product xNum Changes
There are times that you may need to manually create ProductNum changes, though the general expectation is that if you are sending in automated feeds into the application, the ProductNum changes are sent in those feeds. If you do need to create ProductNum changes manually, follow the below guide:
- If you want to change ProductNums that are in current inventory and replace it with a new ProductNum, you would create the CPPC/CNPC transactions on the FTZ > Preparation > FIFO Processing Correction screen. This is only possible if you are currently processing data through the application. If you have completed processing for the day, or have not yet staged for the day, you do have the option to create in staging via FTZ > Preparation > FIFO Staging Correction.
- You would clickNewin the top right corner as shown in Image 1 below.
- When creating the CPPC and CNPC transaction, fill out the required information (as shown below), click on Default Sources, and then save:
- You can now process the ProductNum changes through your FIFO processing run.
Product Number Change Transactions Processing within the USFTZ Module – IM Parts
Transaction Codes
Product Number changes use work order transactions to convert from one ProductNum to another:
FTZ TXN CODE | IMPACT ON INVENTORY/IP SIGN/DESCRIPTION |
|---|---|
IPIM | - / + / Positive Production Issue of an Inventoried Manufactured Product |
PPIM | + / + / Positive Production of an Inventoried Manufactured Product |
The important thing about ProductNum change Transactions is that they have to come in pairs. An IPIM is created for the product that the ProductNum is changing from (what is currently in inventory), and a PPIM is created for the ProductNum that it is changing to. The TxnQtys should always offset each other for these as shown in Table 2 below.
The most important fields on these transactions are listed below.
- ProductNum –
- For anIPIM, this represents the product you areconverting inventory into.
- For aPPIM, this is the product you areconverting inventory from.
- OrderNumWork
- For aIPIM, this represents the product you areconverting inventory from.
- For aPPIM, this is the product you areconverting inventory into.
- TxnQty
- This must match between the IPIM and PPIM (the CNPC will have a negative sign in front of the TxnQty, but, the absolute value needs to match between the two transactions.
Table 2 – Setup of ProductNum Change Transactions for IM Parts
TxnCode | ProductNum | OrderNumWork | TxnQty | Physical Movement |
|---|---|---|---|---|
IPIM | ProductA | Order number tying the two transactions together | 10 | This is the part that is being converted from |
PPIM | ProductB | Order number tying the two transactions together | 10 | This is the part that is being converted to |
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