Warehouse management by customer - procedure

The steps involved in the Warehouse management by customer scenario are identical to those of the Full VMI scenario, except for Step 5, Supplier issues stock for customer, and Step 6, Invoicing. These steps are outlined below. For the other steps of this scenario, refer to Full VMI - procedure.

Step 5. Customer issues stock

  1. The customer issues stock for consumption.

  2. The supplier and the customer register the issue in the VMI warehouse in their ERP systems.

    In the customer's ERP system, a payable receipt and a consumption record are created. The consumption record is stored in the Consigned Consumptions (whwmd2551m000) session and linked to the purchase order and the receipt for which the consumed goods were originally received in the warehouse. For more information, refer to Consumption records.

    In the supplier's ERP system, a consumption record is created in the Inventory Consumptions (tdsls4140m000) session, either electronically after a BOD message from the customer or manually. This consumption record reduces the inventory levels in the administrative warehouse and handles the invoicing in the Invoicing module for the supplier. LN links the consumption record to the originating sales order to the customer. For more information, refer to Inventory consumption handling.

Step 6. Invoicing

  1. In the Process Inventory Consumptions (tdsls4290m000) session, the supplier processes the consumption record to create an invoice line linked to the originating sales order line. The invoicing lines are shown in the Sales Order Invoice Lines (tdsls4106m100) session.

    If during the process no originating sales order line is found that can be linked to the consumption record, LN generates a sales order of type Consignment Invoicing to create invoicing lines.

  2. Either the supplier or the customer initiates the billing process. If the supplier triggers the invoicing:

    1. In the Invoicing Batch session, the supplier creates an invoicing batch.
    2. In the Compose/Print/Post Invoices (cisli2200m000) session, the supplier creates the invoice. As a result, LN processes the originating sales orders.

  3. Alternatively, the customer employs a self-billing process to make aggregated payments at fixed intervals, such as once a month. For more information, refer to Self billing or the online Help of the Financials package.

Invoicing initiated by the customer or the supplier applies to all VMI scenarios.