Direct Material Issues Business Rules

The following business rules apply to Material Issues:

• Average cost is not used on direct issues.

• Direct issues use the LIFO (Last In First Out) costing method.

• There is no limit to the number of material charges to a work order.

• Material charges can be deleted or modified on work orders that are ACTIV or CMPLT.

• No material can be charged to work orders that are CANCL, CLOSE, or PENDG.

• The Material issue date and time defaults to the system date and time, but can be changed.

• The Material issue date and time can be backdated.

• The Material issue date and time cannot be set to a future date.

• If you receive notification that the quantity issued exceeds current quantity on hand, you can then select Yes or No. If Yes is selected, the material is charged to the work order and the quantity on hand becomes negative.

• You can charge materials to a work order from a warehouse. This would be a material that was entered into the material master.

• You can charge a non-inventory material to a work order if this option is turned on. This material does not exist in the material master and is added by entering the description, average cost, issue quantity, issue date, and issue time for the item.

• The Required fields for material charge are: Warehouse, Issue Item, Qty Issue, and Issue Date and Issue Time.

• Removing the sequence number from a material charge allows you to select a procedure number.

• The warehouse code is null on the material issue record for direct issues.

• The vendor ID on the material issue is null regardless of what is set on the material receipt.

• The billable type code is set to N on direct issues. The ID type has the module ID of TC and the code of N.

• The issue type code is set to I on direct issues. The ID type has the module ID of IS and the code of I.

• Direct issues are created using the order unit of measure, even if the values for the Order UOM and the Issue UOM fields are different.