| Inventory consumption handlingIn 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. Note: In this topic, supplier refers to the
supplier or the manufacturer, customer refers to the customer or the
subcontractor, and VMI warehouse refers to the customer's or the
subcontractor's warehouse from which the customer or the subcontractor consumes
goods supplied by the supplier or manufacturer. Consumption master data To record inventory consumptions in the supplier's
administrative warehouse, to update the inventory levels, and initiate
invoicing: -
In the Implemented Software Components (tccom0100s000) session, select: - The VMI (supplier side) check box to maintain consumptions in VMI
environments.
- The Subcontracting with Material Flow and Service Subcontracting with Material Flow check boxes to
maintain consumptions in subcontracting environments.
- In the Terms and Conditions (tctrm1100m000) session, specify terms and conditions for
the relevant business partners, warehouses, and items.
- In the Schedule Terms and Conditions (tctrm1131m000) session, select the External Packing Slip is Mandatory check box if the
consumption line must include an external packing slip for a schedule. If the Duplicate External Packing Slip Allowed check box is
selected for a combination of sold-to business partner, ship-to business
partner, and item, an external packing slip can be used that is already used.
-
To create consumptions for subcontracting scenarios in
the Inventory Consumptions (tdsls4140m000) session, you can set the values in the Method of Inventory Update field of the Logistics Terms and Conditions (tctrm1140m000) session to: - Receipts and Consumptions
- Receipts, Consumptions and Inv. Balance
- Inventory Balance as Consumption
If, for VMI scenarios, you do not specify this optional field, received
quantities are not displayed in the Inventory Consumptions (tdsls4140m000) session; material consumptions are updated through backflushing.
For further information on how to set up the VMI
functionality, see VMI customer role - setup and VMI supplier forecast - setup. For information on subcontracting, see Overview of subcontracting. Consumptions Consumption records are generated or manually
created. They show the received quantities provided by the supplier and the
subsequent consumptions by the customer. A consumption record includes a header and one or more
lines. Consumption header When the VMI warehouse is replenished, LN generates a consumption header. Headers of consumption records
contain the name of the customer, the VMI warehouse, and the aggregated
received and consumed item quantities. You can view and maintain these headers
in the Inventory Consumptions (tdsls4140m000) session. Consumption line(s) - Consumption lines are generated after receiving the
LoadInventoryConsumption Business Object Document (BOD), or you can manually create them based on an
e-mail or phone call from the customer.
After the consumption is specified, it must be processed
to: - Invoice the customer for the consumed quantities, if invoicing
is applicable.
- Decrease the inventory levels of the administrative warehouse.
For more information, refer to Processing consumptions. Note In the customer's LN system, consumptions
are generated in the Consigned Consumptions (whwmd2551m000) and Inventory Consumptions (whina1514m000) sessions. For more information, refer to Consumption records. Prices and discounts Sales order LN determines prices and discounts based on the values of the
originating sales order line, using the consumption or replenishment date. This
calculation is based on the Price Determination Based on parameter setting in the Order Terms and Conditions (tctrm1130m000) session. Sales schedule LN checks the Link Consumption Invoice Lines To field in the Sales Schedule Parameters (tdsls0100s500) session, which can be set to Schedule Header or Schedule Requirement Line. Depending on the value of the Link Consumption Invoice Lines To field, prices and
discounts are retrieved from these lines: Schedule Header The first schedule line of the sales schedule to which the
consumption is linked. Information from successive schedule lines is not
considered. Schedule Requirement Line The schedule line or planned warehouse order line to which
the consumption is linked.
Pay on Use sales order/schedule lines Sales order/schedule lines for which the payment type is Pay on Use and the activity Release to Invoicing is part of the order
procedure, can: - Register consumptions.
- Be invoiced, that is, invoicing lines are created for the
consumption lines to which they are linked.
- Have the Self Billing check box selected.
Note This is applicable in an extended consignment setup, in which
you directly link the invoicing for a consumption of consignment inventory to
the replenishment order or schedule. In a basic consignment setup, in which the order and
schedule procedures are split into a replenishment and invoicing part, these
rules apply: - Invoicing is not available for consignment replenishment
orders, which are sales orders for which the Consignment Replenishment check box is selected in
the Sales Order Types (tdsls0594m000) session.
- Because for consignment replenishment orders Release to Invoicing is not part of the order
procedure, consumptions can be invoiced using a Consignment Invoicing sales order. These are sales
orders for which the Consignment Invoicing check box is selected in
the Sales Order Types (tdsls0594m000) session.
For more information, refer to Consignment in Sales and Procurement. | |