Consumption Handling

Consumptions 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.

• Consignment

  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.

• Inventory consumption handling

  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.