| Consumption HandlingConsumptions are the warehouse issues of consigned items by or on behalf of the customer. The
customer uses these items for purposes such as sale and production. After the
items are issued, the customer is the owner of the items and must pay the
supplier. You can use consigned inventory, for which inventory ownership and
storage are handled by different parties, and select either a basic or extended
consignment setup. In vendor managed inventory (VMI) and subcontracting environments, consumptions are recorded
to view and maintain consumption data in the supplier's or manufacturer's administrative warehouse. This warehouse mirrors the
customer's or subcontractor's warehouse from which the customer/subcontractor
consumes materials supplied by the supplier/manufacturer. Handling inventory
consumptions includes the creation and processing of these consumptions.
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