Consigned Inventory Process

The process of consigned inventory follows steps between the buyer and seller. You start
with a consignment agreement and end with paying the supplier. The following figure shows
the steps of the consigned inventory process flow.
 Consigned Inventory Process

There is a separate tab Consignment Terms on the agreement that stores the consigned inventory
related terms. The terms and an explanation of their functionality are listed below.

 Aging Onset Point: Event point when the aging period starts. Values include Receipt,
Shipment and None
 Aging Period Days: Number of days before aging period expires.
 Consumption Advice Frequency: Period for which the consumption advice is generated.
Values include Daily, Weekly and Monthly.
 Billing Cycle Closing Date: Date when the billing cycle closes.
 Consumption Advice Summary: Level of granularity at which the consumption advice is
created. Values include All Organizations, Organization, Organization and Item and
Organization, Item and Transaction Date
 Consigned Inventory Process

Add Items which you wanted to be consigned

Consignment Order
Important! Select the Purchase Order Style: Consignment Order
 Consigned Inventory Process

Check the agreement, you can see, how much amount has been released

Consignment Receipt
The receipt process for consigned inventory is identical to non-consigned inventory. The
consigned inventory receipt will include a Consignment Line indicator. This checkbox is a
visual indictor to the user that the receipt line is for consigned inventory.

Consigned Inventory On-Hand Quantity

The Manage Item Quantities UI will enable you to view owing party details associated with the
consigned inventory. The tab Consigned Details allows you to the Owning Party, Owning Party
Site, and Quantity for the consigned inventory.
 Consigned Inventory Process

Transfer to Owned
The Create Transfer to Owned Transaction UI enables you to transfer consigned inventory to
owned inventory. This UI is used to explicitly transfer consigned inventory to owned inventory.
 Consigned Inventory Process

Review Completed Transactions

The Review Completed Transactions UI will enable you to search for consigned related
transactions. There are two specific consigned inventory related transactions.
 Transfer to Owned – Transaction that transfers consigned inventory to owned inventory.
 Transfer to Consigned – Transaction that transfers owned inventory to consigned
inventory.

Create Consumption Advice

The Create Consumption Advice scheduled process is used to report the consumption of
consigned inventory to the supplier. The consumption advice is generated periodically based on
the consumption advice frequency defined on the consignment agreement.
The Create Consumption Advice scheduled process parameters and an explanation of their
functionality are listed below.
 Supplier: Creates consumption advice for a specific supplier.
 Supplier Site: Creates consumption advice for a specific supplier site.
 Display Lots and Serial Numbers: IndicPeriod for which the consumption advice is
generated. Values include Daily, Weekly and Monthly.
 Group by Transaction Type: Date when the billing cycle closes.
 Create Consumption Advice Report: Indicates if the consumption advice report should be
created automatically.
Important! The consumption advice will not be generated until the billing period specified on the
Consignment Agreement has passed
 Consigned Inventory Process

Review Consumption Advice

 Consigned Inventory Process

Create Invoice
The Payable Create Invoice UI has been extended to allow invoices to be matched against a
consumption advice.