Consumption returns

Sometimes, items that were issued for consumption are returned to the warehouse. For example, because the quantity actually used for production was lower than the issued quantity. The items are then returned to the not-owned inventory or the owned inventory. This is based on the effective terms and conditions or settings for specific items stored in specific warehouses.

The not-owned inventory is the customer owned or consigned inventory owned by the supplier from which the items were originally issued.

In the Ownership for Return to Warehouse field of the Order Terms and Conditions (tctrm1130m000) session, you can specify whether, according to the contract, items must be returned to owned or not-owned inventory.

In the Ownership for Return to Warehouse field located in the sessions listed below, you can specify whether specific items stored in specific warehouses must be returned to owned or not-owned inventory if no active terms and conditions apply.

Item - Warehousing (whwmd4600m000)
Items - Warehousing Defaults (whwmd4101s000)
Item Data by Warehouse (whwmd2510m000)
Item - Warehousing (whwmd4500m000)
Item Warehousing Defaults (whwmd4501m000)
Update Active Parameters in Warehouses and Items (whwmd2200m000)

In the Return as field of the Estimated Materials (ticst0101m000) session, for individual production order lines, shop floor engineers can determine whether return items must be stored in owned or not-owned inventory. For example, if a shop floor engineer notices that some of the items issued from the warehouse are damaged, the engineer can decide that these items cannot be returned to the not-owned inventory.

Invoicing consumption returns

If consumed items are returned to not-owned inventory, LN creates a consumption record with a negative value. For example, if a customer issues 200 items and returns 10 items to the not-owned inventory, 190 items are invoiced and a negative consumption of 10 items is created.

Distribute returns among owners

If items are picked from different owners, and some of the items are returned, the returned items are distributed among the owners from whom the items were issued. For example, if a customer issues 190 items from the owned inventory and 10 from not-owned inventory, and returns 10 items, 5 items are returned to the owned inventory and 5 to the not-owned inventory.

LN issues items according to the issue strategy. For more information, refer to To determine the stock to be issued.