Time-based ownership change

If the ownership change for consigned goods is time based according to the contract drawn up between the supplier and the customer, the ownership of the inventory changes:

  • After receipt, according to legal requirements.
  • After receipt, as specified in the contract drawn up between the supplier and the customer.
  • After the latest transaction. The ownership changes after a number of days in which no receipts or issues have taken place. This applies if the basic ownership rule is consigned, and no receipts or issues (consumptions) have taken place in a particular period specified in the contract.

The Time-based Ownership Change after Receipt and Time-based Ownership Change after last Transaction fields of the Logistics Terms and Conditions (tctrm1140m000) session determine whether the inventory ownership change for a (combination of) item, warehouse, or business partner is after the last receipt or after the last transaction.

To register time-based ownership changes, LN uses inventory ownership change orders.

Inventory ownership change orders

To change the ownership of consigned inventory for which the ownership change is time based, you must generate inventory ownership change orders. You can generate inventory ownership change orders in the Generate Time Based Ownership Change Orders (whinh1200m100) session. This session can run automatically at specified intervals.

The resulting change orders, change order lines, and, if applicable, line handling details are displayed in the following sessions:

  • Inventory Ownership Change Orders (whinh1100m000)
  • Inventory Ownership Change Order Lines (whinh1110m000)
  • Inventory Ownership Change Order - Inventory Movement (whinh1115m000)
  • Handling Unit Process for Inventory Change Orders (whinh1113m000)

In the Inventory Ownership Change Orders (whinh1100m000) session, you can also create individual change orders.

To make the ownership changes effective and initiate invoicing, you must process the change orders. You can process individual change orders in the Inventory Ownership Change Orders (whinh1100m000) session, or by batch in the Process Inventory Ownership Change Orders (whinh1200m000) session.

To generate inventory ownership change orders

To generate inventory ownership change orders, LN proceeds as follows:

  1. From the Consigned Receipts (whwmd2550m000) session, select receipts whose owner, warehouse, and item match the selection ranges entered in the Generate Time Based Ownership Change Orders (whinh1200m100) session.

  2. For matching receipts for which the ownership change is after the latest transaction, see To determine the ownership change date after latest transaction. If the ownership change is after the latest receipt, check if:

    • The Ownership Transfer Date is present.
    • The Ownership Transfer Date is before the Transaction Date.
    • The status is lower than Processed.
    • The ownership is Consigned.
    • The owner is identical to the buy-from business partner.

  3. For matching receipts, create inventory ownership change orders for received quantities not allocated to an outbound order for which outbound advice is present.

    If outbound advice is present, LN creates no change order. The ownership of these quantities changes when the shipment created for the outbound order is confirmed. In such cases, the ownership change process is in fact Consumption-based ownership change.

  4. For the newly created change orders:

    • If the ownership registration level in the warehouse is Location, Physical Item, or Physical Item and Location, you must allow the user to specify the destination location of the items and adjust the handling unit structure if it contains items belonging to various owners. To do this, create a change order handling line in the Inventory Ownership Change Order - Inventory Movement (whinh1115m000) session.
    • Create a consumption record in the Consigned Consumptions (whwmd2551m000) session. This record is identical to the change order. The Consumption Type of Order field and the Consumption Order field refer to the change order. The status of the consumption record is Allocated.
    • If the Directly Process Created Orders check box is selected, To process inventory ownership change orders.
    .
To determine the ownership change date after latest transaction

To determine the ownership change date if the ownership change is after the latest transaction according to the terms and conditions, LN proceeds as follows:

  1. For each receipt, from the receipt and consumption dates, select the latest receipt or consumption date.
  2. To the receipt or consumption date found, add the period specified in the Period field of the Logistics Terms and Conditions (tctrm1140m000) session.
  3. If the resulting date is on or before the date specified in the Up to Date field, generate an inventory ownership change order.

For the remainder of the procedure, see To generate inventory ownership change orders, from step 3 onwards.

To process inventory ownership change orders

You can process individual change orders in the Inventory Ownership Change Orders (whinh1100m000) session, or by batch in the Process Inventory Ownership Change Orders (whinh1200m000) session.

To process individual change orders, in the Inventory Ownership Change Orders (whinh1100m000) session, select the change orders you want to process and, from the appropriate menu, select Process.

To process change orders by batch, in the Process Inventory Ownership Change Orders (whinh1200m000) session, use the selection range fields to select the change orders to be processed, and click Process.

To process inventory ownership change orders, LN proceeds as follows:

  1. Change the ownership for the selected change orders.
  2. Update the consumption record in the Consigned Consumptions (whwmd2551m000) session. The status changes from Allocated to Used.
  3. Create a purchase payable receipt to initiate payment of the items.
  4. Create integration transaction in Financials.

  5. If the ownership registration level in the warehouse is Location, Physical Item, or Physical Item and Location:

    • Change the owner on the handling unit and split the handling unit if specified by the user in the Inventory Ownership Change Order - Inventory Movement (whinh1115m000) session.
    • Print handling unit labels if specified on the Process Inventory Ownership Change Orders (whinh1200m000) session.
    • Generate and process easy inventory movements to move the items or handling units to not-owned destination locations, as specified by the user in the Inventory Ownership Change Order Lines (whinh1110m000) session.
    • In the from-location and the destination location, adjust the item quantities.
Note

If internal and external payment relations are present, you must run the Process Inventory Ownership Change Orders (whinh1200m000) session several times to process all change orders within the selection range.

For example, the following payment relations of type Pay on Use are present between:

  • External business partner A and the internal business partner of purchase office B.
  • Purchase office B and consignment warehouse C.

According to the terms and conditions, the ownership change for business partner A is 10 days after receipt.

If 200 item X from business partner A is received in consignment warehouse C, two receipts are generated in the Consigned Receipts (whwmd2550m000) session:

ReceiptItemQtyOwnerBuy-from business partnerReceipt dateOwnership change dateDestination owner
1X200Business partner ABP AMarch 12March 22Purchase office B
2X200Business partner AInternal BP of purchase office BMarch 12March 22Warehouse C

 

When the change orders are processed on March 22nd, the change order for receipt 1 is processed. The change order for receipt 2 cannot be processed, because ownership change is not allowed if the buy-from business partner and the owner are not identical.

After the change order for receipt 1 is processed, purchase office B has become the owner. As a result, for receipt 2, the owner is now the internal business partner of purchase office B, and therefore the owner and the buy-from business partner are identical. The next time you process the change orders for the same selection range, the change order for receipt 2 is included.

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