CONSIGNMENT INVENTORY. Carol Rogers Paxar Corporation. SETUPS. Create the Subinventory. The subinventory is not an Asset Subinventory and not Depreciable. Create the Subinventory.
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The subinventory is not an Asset Subinventory and not Depreciable.
Set the account numbers for the subinventory. The items we are discussing today are finished goods so they are in the finished goods account.
Your purchasing suppliers are created in the Supplies window and they are associated to the items your are buying using the Approved Supplier List and Supplier-Item Attributes windows.
Create the consigned item here and enter the Key Attributes, Business, Supplier, Site and Approval Status.
Use the Record detail tab to indicate if your approved supplier can be a local or global supplier.
A local ASL is used only in the organization in which it was defined. A global ASL may be used in all organizations you specify.
The source documents region is used to associate specific quotations or blanket purchase agreements with the supplier and item combinations.
This enables Purchasing to default source documents automatically. All consigned enable suppliers must have a referenced blanket purchase agreement.
Only blanket purchase agreements may be used as source documents for consigned inventory
Explicit consumption is performed by using the consigned transactions window and performing a transfer to regular transaction. Transfer to Regular transfers ownership from the supplier. Transfer to Consigned transfers the ownership to the supplier.
When goods are consumed, they are valued and accounted at the price that is in effect at consumption time. Sourcing rules determine the appropriate purchasing agreement.
Consigned checkbox is enabled.
Status value is Close for Invoicing.
You can see in the example the owning party is TSC America, the planning parts, source type, and source
Click on the Distribution button on the Material Transaction window and you will see that there is not accounting from the PO Receipt processed
You can query and review consigned inventory and material transaction in Oracle Inventory> Reports> Consigned Inventory.
The Material Workbench window enables you to query on hand balances for inventory items by location, cost group, ownership, supplier, and other inventory characteristics.
In the Query Material Window, you select values to limit your search criteria. Select the Consigned/VMI tabbed region to enter search criteria for inventory designated for consigned.
Consigned On-Hand Quantity Inquiry Window
The On-Hand Items window provides a description of the consigned item and quantity. You can also use this window to view the subinventory in which the consigned item is stocked and also the aging details of the consigned on hand stock.
Consigned Shipments Inquiry Window
Using the Consigned Shipments window, you can view information about the shipment status of consigned purchase orders.
You can view the PO number, the quantity ordered vs the quantity received, status of a particular shipment, and the ship-to location.
Consumption Advice Inquiry Window
In the Consumption Advice window, you can review the consumption advices for a particular consigned PO. You can view the PO number, order date, buyer, status of PO, and the amount of the order.
Material Transaction Inquiry Window
In the Material Transaction inquiry window, you can view detailed information about the transaction status of any consigned item. This window includes the Organization, location name for the consigned item, consigned transaction type, inbound and outbound quantities, the documentation type, and the document source.
Run Create Consumption Advice Report to generate consumption advices.
The consumption transactions, over a period of time, are grouped together for the creation of consumption advice.
The specific duration in days, over which the consumption transactions are combined for billing by the Create Consumption Advice program, is called the billing cycle.
You can set up the billing cycle value and the other consigned attributes in the ASL. The value in the Last Billing Date field specifies the date on which the last Create Consumption Advice program was run.
Run the Pay on Receipt Auto Invoice Report in Payables with the transaction source as Use.
The Pay on Receipt Auto Invoice Report will automatically run the Payable Open Interface.
Notice the Last Billing Date, it has changed to May 15, 2007, indicating the date on which the last Create Consumption Advice program was run.
We created a custom report to show the items sold on consignment. You can run it by Supplier Name of Period Name.
The report lists each item, quantity, price, and total amount for a particular item. The supplier will know what he is being paid and the Payable employees can answer invoice questions.
An accounts payable invoice is created after consumption advice records are generated. When the concurrent program is submitted, it first identifies all eligible change of ownership transactions. Invoice records are created in accounts payables for the line matched with the corresponding purchase order or blanket release.
The Purchase Order Summary window allows you to search for purchase orders Select the Consumption Advice check box and view releases check box , the system returns purchase orders with consumption advice data.
The find Material Transactions window includes additional search criteria.
The Consumption Advice Field is enabled only when the Transaction Type is Transfer To Regular or the Transaction Action is Ownership Transfer. You can also enter the Supplier name to search.
Click on the Consumption Advice Tab to view information.
You can search in the Pending Transactions window for errors by entering Ownership transfer error in the Error Code field. This code limits the search to transactions in Pending status due to failure during consumption of consigned material.
When using Miscellaneous Issue/Receipt, if the item is under consigned control , you can select Owning Party and Planning party from the folder tool, show field.