Customer Consigned Inventory 12 · Create consignment contracts for the customer part number under its associated customer id, and the customer's ship to id that is tied to the consignment

Customer Consigned Inventory 12.0

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Terminology

Consignment definitionPlacing material in the hand of another, but retaining ownership until the goods are sold

CRO = Consignment Replenishment OrderOrder entered to restock inventory levels at the customer location

CUO = Consignment Usage Order Order to record customers actual usage


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System Setting

Order Processing / PricingAllow Consigned Inventory ContractUpdate Actual Usage

Consignment LocationDistributor Location (Source Location on the contract line, if blank then the source location on the contract header)


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Consignment Location ID

Location MaintenanceConsignment tab

Indicates location is for customer consignmentCreate a Location and assign a Customer/Ship to

Ship To MaintenanceThen the system ID updates Ship To records to OE Options tab by entering this Location as the customer’s consignment location


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Job / Contracts

Job/Contract Pricing Maintenance Job/Contract Maintenance

Consignment Contract checkbox


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Job / Contracts

Customer/Ship ToEnter Customer ID/Ship To ID combinationsMultiple Consignment Ship Tos can be entered(standard functionality)

Customer/Ship InfoDisplays the Consignment Location ID associated with Ship To


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Job / Contracts

Consignment Info tabReplenish – As Requested, As Used, Contract Level, how the inventory is replenished at the consigned locationBilling – Usage (Cycle)Default Approved – CRO’s, CUO’s


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Job / Contracts

Combine Multiple CROs on TransferAutomatically Receive TransfersTags: Detail: only able to report usage on whole tags, Partial user will be able to break tagsCost Codes


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Cost Codes

When enabled each order line that is created will be required to have the free form cost code populated.


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Job / Contracts – Line

Ship To Consignment Control Tab

Minimum Qty is the trigger point for CROMaximum Qty is the CRO quantity to maximize consigned stockReorder Qty: Multiples of reorder qty to replenish consigned stockSource Location is the source for Transfer created for CROs


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Job / Contracts – Line

Ship To Consignment Control

Source LocationRequired Determines source on CRO order if Transfer

Default DispositionS – Special purchase -T – Transfer from distributor source location


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Consignment Issues Tab

Maintains a record of all replenishments of the consignment location


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Fast Edit Contracts

Quickly/Easily make changes to contractsRegular and consignment contractsHeader and line item level changesSame validations


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Consignment Replenishment Order (CRO)

Order Processing / Transaction / Consignment Replenishment Orders


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Consignment Replenishment Order

Contract lines Sales location = user’s default sales location

If ‘T’ then:Sourced from the source location on the contract and ship to

the consigned locationIf “S” then the purchase location is the consigned location

Disposition defaults from contract Pricing is informational onlyBE SURE THE ITEM IS DEFINED IN THE CONSIGNMENT LOCATION!!!


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Create transfersTransfer wizard from CRO entryTransfer Requirements/Generation

Print TransferTransfer Shipping

Moves material to consignment locationAutomatically receive transfersPhysical and G/L inventory update under consigned location


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Create PO PO wizard from CRO entryPO Requirements / Generation

SpecialsGenerated against distributor source location

Print PO PO Receiving

Approving PO Receipt updates ‘Qty on Hand’ at consignment location


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Flow of CRO’s

Enter in CRO Entry

Create & print Transfer

CRO Approved

Receive Transfer

ConfirmTransfer shipment

Create & print

Special PO

Supplier ships to

consignment location

Receive PO

Consignment location

Qty. on-hand increases


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CRO Tips & Tricks

RMB to Display Contract ItemsLists contract itemsQuick entry by entering in quantity for line items


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CRO Tips & Tricks

Associated transactions created when approved CRO is saved

If transfer, the transfer via the wizard or transfer requirement is generated

If not enough stock at source location, then PORG requirement created

If PO, the PO via the wizard or PO requirement is generated

No pick tickets, packing lists or invoices are printedNo billing performed


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Consignment Usage Order (CUO)

Order Entry / Consignment Usage Entering consigned contract updates to usage

Only consigned source locationsBypasses credit limit and credit statusEntering the Contract # makes the Consignment Tab available and sets the source location to the consigned location


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Consignment Usage Order

Line items are entered in terms of usageFull allocation onlySource and ship locations equal consignment location


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Flow of CUO

Transactional Flow

Customer invoice

generated

CUO Approved

PrintCustomer invoice

CUO entered in Order

Entry


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System Generated CROs

Consignment Replenishment Order GenerationWhen CUO is saved as approvedBased on contract ‘Replenish’

As Used – creates CRO for usage quantity reportedAs RequestedContract Level – creates CRO for quantity determined by Min, Max, Reorder values on contract


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System Generated CROs

Contract / Ship To Consignment Controlhelps to determine the CRA amounts

Net Stock = Qty Available + Qty in Transit – Qty allocated to CUOs


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CRO and CUO Import

Sales Order ImportImports CROs and CUOs

Scheduled Import Setup Manager (SISM) file prefix indicates type of order

TPCx reads the 850 Sales Order <Purpose Code>Manual import of files need to be saved with prefix

CROs will import regardless of Contract Replenishment methodCUO imports may create CROs upon import


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Reports

Consignment Usage Order (Y/N/Only)Open OrdersSales HistoryProfit Exception ReportWho Bought What

Yes – Consignment usage and non-consignment ordersNo – Non-consignment orders onlyOnly – Consignment usage only


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Consolidated Invoicing

Accounts Receivable Customer / Consolidated InvoicesSystem / Consignment Billing Cycle

Job/Contract MaintenanceConsignment Info set to Cycle

AR > Transaction > Generate Consolidated Invoices


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Alerts

Order / Front Counter alert modificationConsignment replenishment ordersConsignment usage orders


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Converting from Custom to Baseline

Enable Job Pricing in the system settings if not already enabledAssociate a ship to id with a consignment locationEnable job pricing on the customer associated with the ship to/consignment location.


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Script will do the following:

Review all customer part numbers with a consignment option of yes or onlyCreate consignment contracts for the customer part number under its associated customer id, and the customer's ship to id that is tied to the consignment locationReview all customer part numbers item id's inventory supplier by location record, and determine the default disposition assigned to the consignment location, and use the replenishment location associated with it to define it as the source location if the disposition is T. It will then set these values on the ship to consignment control tab in contract maintenance.


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Script cont’d:

Review pricing of customer assigned to the contract, and convert pricing if customer uses pricing pages. For example, if customer uses pricing pages, and pages are defined by supplier using primary supplier cost and a multiplier, then all items added to a contract that use that pricing page type will be set to price by Source, where source = primary supplier cost, and set the multiplier as set on the pricing page. If consignment items exist on a contract already, they will be ignored.


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Suggested Action Plan

Set up Order Processing / Pricing

Enable consignment contracts

Create and assign locations to ship tosCreate consignment Job / Contracts

Determine level of automation

Determine CUO reporting method and cycleCurrent on hand vs usageFrequency of billing

Documents

Customer Consigned Inventory 12 · Create consignment contracts for the customer part number under its associated customer id, and the customer's ship to id that is tied to the consignment