FTZ Management: Knowledge Based Articles - Positive Adjustment Processing
Overview
This article is an overview of how positive adjustments are processed in the ONESOURCE Global Trade Foreign Trade Zone Management (FTZ) solution. It details how to identify positive adjustment transactions, how information is assigned to positive adjustment transactions, and what impact they will have on overall FTZ inventory.
Purpose of APPC/APIM Transactions
A positive adjustment (APPC/APIM) transaction is used to process an increase of inventory for a certain part number. This can be as a result of a cycle count, or physical inventory, or to reconcile inventory between an ERP/WMS system and the ONESOURCE Global Trade Foreign Trade Zone Management (FTZ) system.
Example Use Case Within ERP/WMS System
You are counting a part number within the warehouse and expecting to find 100 units on hand. Instead you find that you have 102 units. In order to reconcile inventory balance, you process a positive adjustment of 2 units, to bring the overall total to 102.
Example Use Case Within FTZ System
Another example would be checking your Component Balance Audit Report, or Finished Goods Balance Audit Report, and identifying a delta between your ERP/WMS system and the ONESOURCE Global Trade Foreign Trade Zone Management (FTZ) system. You research and see that we missed an up/positive adjustment that was made in the warehouse the prior day. In order to reconcile and ensure that adjustment is processed, you create a manual positive adjustment via the Receipt Data Input screen within the ONESOURCE Global Trade Foreign Trade Zone Management (FTZ) system.
Transaction Fields
The following fields of are important on a FIFO Positive Adjustment transaction:
- ProductNum – The product number of the positive adjustment
- TxnQty – The total quantity of the positive adjustment
- OrderNumReceipt – This is required for positive adjustments but is open to be user-defined. Often, the format ‘POS-ADJ-YYYYMMDD’ is used in order to easily identify when an adjustment was made
Standard Adjustment Logic – Determining Transaction Details
When a positive adjustment is being processed with a daily FIFO batch, there is standard adjustment logic that will apply changes to the transaction during the Validation workflow. This logic updates according to customs guidelines on how to determine whether an adjustment within a US Foreign Trade Zone should be considered foreign or domestic. When a positive adjustment transaction is received, the standard adjustment logic will review history for that ProductNum to see if it has ever been received in foreign status before and based on that will run the below logic:
If the ProductNum
has been received as foreign
in the past, the system will designate the positive adjustment as foreign, and will clone the below fields from the last received foreign layer:- StatusCode
- Value & Currency Code
- CountryOfOrigin, ManufacturerID & RelationshipFlag
- TransportID is set to ‘UPDATETOFOREIGNVALUE’ to group all positive adjustments together under standard adjustment manifest information (details below)
If the ProductNum
has never been received as foreign
in the past, the system will designate the positive adjustment as Domestic status, will update the below fields as noted:- StatusCode set to ‘D’
- Value & CurrencyCode sourced from ItemMaster
- ManufacturerID & RelationshipFlag pulled from dummy MID (most commonly ‘USDOMREC’)
- CountryOfOrigin set to ‘US’
- TransportID is set to ‘ADJUSTMENT’
It is important to note that the standard adjustment logic will overwrite manual changes to positive adjustment data, to ensure compliance.
Standard Adjustment Logic – Manifest Information for e214 Assignment
When positive adjustments are designated as foreign, they will show to be assigned to the e214 Admission. Since positive adjustments do not have specific manifest information associated (as they are not tied to a specific incoming shipment), there is standard manifest information that will auto-populate on the e214 Assignment screen. Below are details on the data elements used for adjustment manifest information:
e214 Data Elements: Adjusting e214 Data | Description |
|---|---|
Receipt Date | The transaction date of the adjustment. |
Export Date | The transaction date of the adjustment. |
Master Bill of Lading | The adjusted Master Bill of Lading logic is as follows: FFFFADJYYMMDD###
|
IT Number |
|
Manifest Quantity | “1” |
Mode of Transport | Truck (Non-container) |
IT Date | The transaction date of the adjustment. This field can remain blank if the IT Number was left blank. |
IT From Port | “0000”. This field can remain blank if the IT Number was left blank. |
Vessel Name | “ADJ” |
Import Date | The transaction date of the adjustment. |
US Port of Unlading | “0000” |
Frgn Port of Lading | “00000”. If the adjustment contains goods of Canadian origin, select an appropriate Canadian Province of lading. A list of Canadian province codes is provided in the Appendix of this User Guide. |
In-Bond Carrier | “ADJ” |
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