| Inventory Change OrdersYou can use inventory change orders to: - Change the ownership of items
- Allocate the inventory
- Generate cost peg transfers
When the ownership of an item changes, payment is due and
invoicing is initiated. Inventory ownership change orders are used to change the ownership of the
inventory from supplier to customer and vice versa. In traditional, non-VMI
business scenarios, the ownership of an item changes from the supplier to the
customer after the customer has received the item from the supplier. The
customer must pay for the item on receipt of the goods. In various subcontracting scenarios, ownership will not change
during any of the inbound or outbound warehousing processes. In such cases, the
ownership is customer owned. In vendor managed inventory ( VMI)
scenarios, the ownership can be consigned. If the ownership is consigned, the ownership
change is either time based or consumption based. 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.
If the ownership
change is consumption based, according to the contract drawn up between the
supplier and the customer, the ownership of the goods changes from the supplier
to the customer when the customer consumes the items for production or sale.
After the customer becomes the owner, the customer must pay for the goods.
Allocation change orders The allocation change order is the commission that is used to change the allocation of
the inventory. The inventory allocation is changed if an order for which
inventory was allocated is cancelled. To change the allocated-to inventory, the
specification for a particular item quantity in a warehouse must be changed.
The items can be contained in handling units. The cost peg transfer functionality is used to transfer
costs between two different pegs (pegged to unpegged and vice versa) within the
same warehouse. The cost peg transfers do not physically move the inventory but
only transfer the cost of the inventory. You cannot transfer goods across
warehouses. The business partner must be defined for the ship-from peg
and the ship-to peg for cost peg transfers when the ownership of the inventory
is Customer Owned. For cost peg transfers, the ownership can only be Company Owned or Customer Owned. The cost peg transfers cannot be generated automatically during
the generate outbound advice process for the issue of customer owned
materials. Temporary cost peg transfer (borrow/ loan - payback)
functionality enables you to transfer the inventory between the cost pegs
temporarily. In this process, the inventory is borrowed from another peg that
has the same item linked, but with a later demand. The borrowed inventory is
registered with the lending project cost peg even though the inventory is moved
to another project cost peg that has an immediate demand (the inventory is only
borrowed).
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