Consigned Inventory Flow in R12

Consigned Inventory Flow in R12

Setup steps

Step 1) Create an Item "CONSIGNED". Apply Purchasing template. Also tick "Use Approved Supplier" in purchasing tab

Step 2) Create a Blanket Purchase Agreement for this item. Take supplier as "Abbott Laboratories, Inc." and site as "CORP HQ". Make sure pay on "Use" is ticked in Supplier setups

Step 3) Create an ASL for this Item and Supplier combination. On Item-attributes form assign above blanket Agreement and  in Inventory tab tick the Consigned from Supplier.

Step 4) Define Consigned\VMI Consumption rules in inventory. Navigate to Setup>Transactions>Consigned\VMI Consumption. Here take From Sub-inventory as "Stores" and To Sub-inventory as "FGI"

Note : The weight value allows you to set the processing order. For example, if two transactions satisfy the transaction criteria, the system processes the transaction with the highest weight.

Test Case

Step 1) Create a Standard PO and Receive the material. Please keep receipt routing as Direct

You can notice Consigned flag on Shipment line is checked automatically. All consigned PO is always closed for invoicing

Step 2) Now go to iSupplier Portal and create an ASN for this PO 6356

ASN1234

Step 3) Now receive against this ASN

Step 4) You can check that no accounting transactions created yet

Step 5) Check owning party information

Step 6) Now when we require material we can transfer material from Stores to FGI. Transfer 10 qty

Step 7) Check Material transactions

Step 8) Now run Consumption Advise

Step 9) Now check the consumption advise from the po summary form. consumption advice create a release against the BPA we have created in setup steps. Remember the BPA number was 6355.

You can see you can not open the release i.e. you can not modify the consumption advise. also this release is closed for receiving as material is already received

Step 10) Now log in iSupplier to see consumption advice

You can click on consumption advise and see it

Thanks

Mandeep

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