Using Supplier Consignment Locations

Supplier consignment locations are warehouses that store products that are owned by a supplier and which are used to fulfill orders and replenish other locations. The purpose of supplier consignment locations is to track inventory and facilitate transfer of inventory in and out of the location.

To indicate that a location is a supplier consignment location, select the Supplier Consignment Location check box for a shipping location in Location Maintenance. After a supplier consignment location is set up, you can create product/location records for the products that are stored in the location. You also should create bins for the supplier consignment location. If you will be transferring inventory from the supplier consignment location, you also must create a transfer order class with a supplier consignment transfer purchase order class.

After you have set up a supplier consignment location, you can stock the warehouse with inventory, which can later be transferred to your own warehouses, or can be purchased directly by your customers.

Transferring Inventory from a Supplier Consignment Location

To transfer inventory from a supplier consignment location:

1. In Order Entry, enter a transfer order for the products you want to transfer.

2. In Pick Demand Create and Print, create and print pick demands for allocated products on the order. The order status is now In Pick. When you perform this step, accounts receivable and accounts receivable discount accounts are resolved for the order.

3. In Pick Demand Confirm, confirm the pick demand. The order status is now Confirmed. You can also use Pick Demand Cancel to return an order to Open status if necessary.

4. In Confirmed Pick Demand Inventory Adjust, adjust inventory. When you perform this step, all remaining general ledger accounts are resolved for the order. If the accounts resolve correctly, the order status is now Closed, and you can skip to step 6.

Note This process generates a purchase order for the transfer-to location. The purchase order will be receipted by that location.

5. If general ledger accounts do not resolve correctly, correct the accounts in Pick Demand Account Resolution Update. The order status is Bad Accounts until you correct the accounts. Users can be set up in Location Exception Notification Setup to receive an email when an order has this status.

6. In Receiving Entry, receive the transferred products. The purchase order status is now Fully Received.

7. In Inventory Receipt Post, post the receipt.

Selling Products from a Supplier Consignment Location

To sell products from a supplier consignment location:

1. In Order Entry, enter a sales order for the supplier consignment location..

2. In Pick Demand Create and Print, create and print pick demands for allocated products on the order. The order status is now In Pick. You can provide the printed pick demands to the supplier if necessary.

3. In Drop Ship and Special Order Create, create a drop-ship purchase order for the products. If the supplier is an EDI trading partner, an 850 is generated and sent to the supplier.

4. In Container Management and Shipment Management, enter container and shipment information for the drop-ship purchase order products. This step is optional and should only be performed if you are tracking by container and shipment.

5. In Drop Ship Purchase Order Confirmation, confirm and inventory adjust the pick demands created in step 2. If you have unresolved accounts, correct or update the general ledger accounts in Pick Demand Account Resolution Update. Users can be set up in Location Exception Notification Setup to receive an email when an order has this status.

6. In Supplier Consignment Shipment Invoice Create and Print, create the invoice for the order.

7. In Invoice Post, post the customer's invoice. This will set the customer's order and invoice status as Closed and Invoiced, and post to EIS and other history tables. The cost of goods sold for EIS and the history is the Drop Ship Cost of Goods Sold. When you post the invoice, the following general ledger entry is made: