To set up consignment items

  1. Access Item Master (IC11.1). Complete item setup, and on the Main tab, select Yes in the Consignment field. Consignment items are not counted as part of owned inventory. This value defaults to the Item Location record.

    - or -

    Access Item Location (IC12.1). Complete the location-specific item setup, and on the Main tab, select Yes in the Consignment field. At this location, the item is defined as a consignment item.

  2. If you set up the consignment item at a location, you need to set some additional options.

    • On the Miscellaneous tab, select the consignment buyer that you previously defined using Buyer (PO04.1), if you want to create purchase orders for consignment items only.

    • On the Reorder tab, select D (Difference Quantity) in the Reorder Quantity Code as the method of determining the reorder quantity. Selecting Difference Quantity means that the application orders the difference between the available quantity and a specified reorder point. In the Reorder Point field, type the stock quantity that was agreed upon by both parties.

    • On the Source tab, select Yes in the Automatic Purchasing field. The consignment item is to be ordered automatically for this location. Click the Replenishment button and add the primary replenishment vendor.

  3. Set up your general ledger categories by location using General Ledger Category (IC04.1).

    • The Inventory and Receipts accounts must be the same (optionally, the Inventory, Receipts, and Adjustment accounts should all be the same).

    • The Inventory account should be set up as an individual asset account, as there are credit balances sometimes.

    • The Physical Inventory Variance account should be set up as a consignment loss account (expense).

  4. Enter a receipt transaction for the initial inventory balance and cost using Receipts (IC20.1).