Consignment (not owned) inventory

Receipts

Usually, you receive consignment inventory based on a purchase order of type consignment replenishment. You can specify the purchase order type in the Purchase Order Types (tdpur0194m000) session. If the received inventory concerns consignment inventory, a consignment inventory line with status Received is created in the Warehouse - Item - Consignment Inventory and Usage (whwmd2550m000) session.

Note

As an exception, you can also receive items in a warehouse as consignment inventory by creating a warehouse order with order origin Purchase (Manual) and the Consignment check box in the Warehousing Orders (whinh2100m000) details session selected.

Consignment inventory is almost always stored in a warehouse of type Consignment (Not Owned). Consignment inventory can also be stored in a warehouse of type Normal.

Issues

The value of the Ownership Issue Priority check box determines which type of inventory is issued first. If consignment inventory is issued, LN creates:

  • A purchase order of type consignment payment in the Purchase Orders (tdpur4100m000) session. Afterwards the purchase order is processed in the Process Purchase Orders (tdpur4223m000) session. As a result, Financials is instructed to pay for the used goods. In Accounts Payable, an invoice must be created manually and matched with the purchase order of type consignment payment.
  • A consignment inventory line with the Processed status in the Warehouse - Item - Consignment Inventory and Usage (whwmd2550m000) session.

If a shipment procedure is linked to the warehousing order type, LN determines whether and how much consignment inventory is concerned with the issue, when the shipment line is confirmed. If the confirmed shipment line contains quantity not shipped, and if the Automatic Adjustment of Quantity Not Shipped check box in the Shipment Lines (whinh4131m000) session is cleared, LN does not determine wether and how much of the not shipped quantity concerns consignment inventory. If the confirmed shipment line contains quantity not shipped and the Automatic Adjustment of Quantity Not Shipped check box in the Shipment Lines (whinh4131m000) session is selected, LN generates an adjustment order and determines whether and how much of the not shipped items on the adjustment order concern consignment inventory.

If no shipment procedure is linked to the warehousing order type, and the last specified activity in the warehousing order type's outbound advice procedure is:

  • The Picking List (whinh4525m100) session, LN determines whether and how much of the picked items concern consignment inventory if you indicate that picking can take place for a picking list.
  • The Warehouse Inspections (whinh3122m000) session, LN determines whether and how much of the approved items concern consignment inventory if you approve the inspected items during outbound inspection. If you reject inspected items during outbound inspection, LN generates an adjustment order and determines whether and how much of the rejected items on the adjustment order concern consignment inventory.
Return consignment not-owned inventory

To return consignment not-owned inventory, you must create a purchase order of type consignment replenishment with a negative quantity. If the purchase order is released to Warehousing, and you generate an outbound advice for this order, LN creates a consignment inventory line with the Allocated status in the Warehouse - Item - Consignment Inventory and Usage (whwmd2550m000) session.

If you return consignment inventory and the items are issued, LN does the following:

  • Changes the status of the consignment inventory line from Allocated to Processed.
  • Does not create a purchase order of type Consignment Payment.

However, if the last activity to be carried out for the warehousing order's order type is:

  • Warehouse Inspections (whinh3122m000) and you reject items, LN reduces the quantity on the allocated consignment inventory line. If the entire quantity of the allocated consignment inventory line is rejected, LN deletes this line. LN also creates an adjustment order for the rejected items.
  • Freeze/Confirm Shipments/Loads (whinh4275m000) and the confirmed shipment line contains quantity not shipped, LN reduces the quantity on the allocated consignment inventory line. If the entire quantity of the allocated consignment inventory line is not shipped, LN deletes this line. If the Automatic Adjustment of Quantity Not Shipped check box in the Shipment Lines (whinh4131m000) session is selected, LN also creates an adjustment order for the not shipped items.

Because the rejected or not shipped items are not returned to the supplier, you must pay for these items. Therefore, LN creates for the rejected items or not shipped items:

  • A purchase order of type consignment payment in the Purchase Orders (tdpur4100m000) session.
  • A consignment inventory line with the Processed status in the Warehousing Orders History (whinh2550m000) session.

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