Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

Copyright (c) 2018, Oracle. All rights reserved.

FAQ: Using Consigned Inventory / Consumption Advice / Vendor Managed Inventory (VMI) (Doc ID
406390.1)

In this Document

Goal
Solution
1: OVERVIEW
1.1 What is Consigned Inventory From Supplier?
1.2 What is Consigned Inventory to Customers?

2. DEMO
2.1: Full Demonstration
2.2: Common Consignment Steps

3: Helpful Documents / Patches

3.1(a): Helpful Documents from Oracle Development:
3.1(b): Critical Consignment Patches
3.1(c) Other patches
3.1(d) Enhancement Requests
3.2(a): Resubmit a stuck consumption transaction?
3.2(b): Consumption advice does not work...
3.3 Analyzer

4: Transfer to Consigned:
4.1: How does one perform 'Transfer to Consigned' when consumption transaction was generated implicitly?
4.2: Transfer to Consigned Enhancement
4.4: When is Transfer to Consigned Available?
4.4: SQL to review Transfer to Regular Used for Transfer to Consigned?

5: Can one view the owner party in the subinventory transfer form?
6: How does one manage consigned inventory with locators?
7: Consigned Setup
7.1: What are the setup steps required for using Consigned Inventory?
7.2: What Setup Required for Consigned Orders in Purchasing?
7.3: What setup should Suppliers perform for consigned inventory?

8: How do I specify the owning party during Miscellaneous Transactions?

a. Using the Miscellaneous Transaction form
b. Using the Open Interface
9: Inter-Org Transfer Loses Owning Party / Transfer to Regular

10: Other Common Errors:

10.1: Error: This supplier site combination must have a valid Approved Supplier List.
10.2: Purchase Price Variance (PPV) Report errors with ORA-01476
10.3: Error: There must be a Valid Blanket Purchase Agreement in effect
10.4: Error: APP-FND-01030: Value longer than 20 characters

1 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

11: Onhand Shows Zero (0) Attempting to use Consigned Inventory

12: Drill Down in Material Workbench Displays the Wrong Quantity
13: Using Consigned Inventory With OPM?
14: Helpful SQL
14.1: Review consumption transaction status via SQL?
15: Pricing / Value
15.1: Can I update the blanket price for a consigned line item?
15.2: How can I use retroactive price update for consigned shipments?
15.3: Can price breaks be used for Consigned Stock?
15.4: Does retroactive pricing update Standard POs used for receiving consigned stock?
15.5: Finding Price / Value of Consigned Stock?
16: What is Misc issue / Misc Receipt of Consigned Stock?
Misc receipt of Consigned Stock:
Misc issue of Consigned Stock:
Relating Issue and Transfer
17: What is Consumption Rules Setup used for?
18: How does FIFO rules apply for consigned stock?
19: Sometimes, consumption transactions refer to a different source blanket. Why does this happen?
20: How do we back-out erroneous misc. receipt of consigned stock?
21: Is Cycle counting supported for Consigned Inventory?
22: Consumption advice shipments are split date-wise for local blankets?
23: Why is no PPV generated when I perform subinventory transfer from an expense subinventory to an asset subinventory?
24: Performance
25. Handling unwanted releases?
26. Is the "Transfer to Consigned" Transaction type supported when performing transactions using MSCA?
27: Consumption Flow/Diagrams
27.0 New Column PO_LINE_ID
27.1: What is the general consignment flow and flags?
27.2: Table MTL_ONHAND_QUANTITIES_DETAIL vs. view MTL_ONHAND_QUANTITIES?
References

APPLIES TO:

Oracle Inventory Management - Version 11.5.10.2 and later

Information in this document applies to any platform.
FORM:INVCNSUP.FMB - Consigned/VMI Consumption
FORM:POXSCASL.FMB - Define Approved Supplier List
FORM:POXSTASL.FMB - Setup Approved Supplier List
FORM:POXSVASL.FMB - Summary Approved Supplier List

GOAL

Here are some common questions or tips about Consigned Inventory. Also see Note 2048039.1 - EBS Inventory Consignment Analyzer.

SOLUTION

1: OVERVIEW

IMPORTANT: This note focuses on "Consigned Inventory From Supplier". For details on "Consigned Inventory to Customers", see Note

2 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

391582.1 - Obtain Information On Consignment Orders

1.1 What is Consigned Inventory From Supplier?

From the "Consigned inventory from supplier" User's Guide:

Consigned inventory from supplier exists when inventory is in the possession of one
party (a dealer, agent, distributor, and so on), but remains the property of another party
(such as the manufacturer or primary contractor) by mutual agreement. Consigned
inventory from Supplier refers to one type of consigned inventory practice where you
receive and maintain goods belonging to one or more of your suppliers. Both suppliers
and customers benefit through a consigned inventory strategy:

Suppliers can compete on the basis of availability and delivery when finished goods are at the customer site, particularly when lead
times are lengthy.
Holding material on consignment reduces the lead time for items that might be required to fill sales orders.
Customers experience increased inventory turns thus, reducing funds invested in inventory. Financial resources are free until
customer commitments are ensured, or items are used in production.

1.2 What is Consigned Inventory to Customers?

Consigned VMI with Customers Is defined as the process that allows you to manage inventory at your customer sites (monitoring of
on-hand, as well as the replenishment), and to operate a consigned inventory (pay-on-use) scenario where the material ownership remains
with you until it is consumed by the customer. Traditionally, this process is highly laborious and transactional oriented and provides little
visibility into the customer inventory and demand position. It is prone to stock outs and increased expediting costs. What you want to do is
move to a more automated planning and execution process.

The 'to customer' functionality was introduced in 11.5.10. For details on "Consigned Inventory to Customers", see Note 391582.1 - Obtain
Information On Consignment Orders

3 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

2. DEMO

2.1: Full Demonstration

There is a nice brief demonstration in Note 1083776.1.

Here is a full demonstration created by Oracle Development in flash-wave format. It should be run in your browser after you download the
file.

2.2: Common Consignment Steps

Here are some other demonstrations for Consigned Inventory. Currently these are .exe files for Windows machines only:
a. Miscellaneous Receipt for Consigned Inventory
b. Transfer to Regular
c. Viewing Consigned Inventory

3: Helpful Documents / Patches

3.1(a): Helpful Documents from Oracle Development:

These are some helpful documents provided by Oracle Development to Oracle Support for diagnosing problems as well as to help better
understand consignment. Providing them here for reference by support and customers :

a. Consigned Notes - Review of Consignment Functionality

b. Consigned Support Diagnostics - Review of Common Consignment Issues
c. Consigned Bug Logging - Things to provide when logging a consignment SR/Bug

3.1(b): Critical Consignment Patches

Ensure that you already have the critical consignment patches: Patch 5036673 for 11.5.9 and Patch 5200436 for 11.5.10.

Patch 5036673 (for 11.5.9) includes the following files:

invcons.odf 115.7.11590.3
INVRCADB.pls 115.22.11590.31
INVVTPSB.pls 115.12.11590.14
b4649230.sql 115.4

You could use commands like the following to check your version:

grep '$Header' $INV_TOP/patch/115/odf/invcons.odf

grep '$Header' $INV_TOP/patch/115/sql/INVRCADB.pls
grep '$Header' $INV_TOP/patch/115/sql/INVVTPSB.pls
grep '$Header' $INV_TOP/patch/115/sql/b4649230.sql

Patch 5200436 (for 11.5.10) includes the following files:

invcons.odf 115.13.115100.3
INVMCTUPG.sql 115.1
INVRCADB.pls 115.55.115100.29
INVVTPSB.pls 115.22.115100.4

You could use commands like the following to check your version:

grep '$Header' $INV_TOP/patch/115/odf/invcons.odf

4 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

grep '$Header' $INV_TOP/patch/115/sql/INVMCTUPG.sql

grep '$Header' $INV_TOP/patch/115/sql/INVRCADB.pls
grep '$Header' $INV_TOP/patch/115/sql/INVVTPSB.pls

3.1(c) Other patches

There have been a number of other patches released for consignment on 11.5.10 since the initial critical patch. The easiest way to stay up
to date is to stay on the latest inventory rollup (INV RUP). The rollups are continually improving the inventory and consignment modules
fixing issues, preventing data corruption, helping performance, etc. See the latest Rollups in Note 726226.1.

Below is a summary of helpful fixes between the critical patch and more recent patches on 11.5.10:

Patch 5200436 - 11.5.10: Consigned Inv consolidated bugfix patch -- CORRUPT CONSUMPTION ADVICE RELEASES CREATED
INVRCADB.pls 115.55.115100.30
* This is the patch listed as critical. It also included a number of performance fixes in earlier releases like the following patches:
Patch 5107164 - 11.5.10: Consigned Inventory performance patch
INVRCADB.pls 115.55.115100.24
Patch 5113003 - GBL : 11.5.10 CU FOR CONSIGNED INVENTORY
INVRCADB.pls 115.55.115100.28

Patch 5367157 - DROP UPGRADE SCRIPT FROM 5107164 FOR BETTER PERFORMANCE
INVRCADB.pls 115.55.115100.30

Patch 5506999 - TRACKING BUG FOR PERFORMANCE ISSUE RELATED TO 5092489

INVRCADB.pls 115.55.115100.33

Patch 5659866 - CONSOLIDATED PATCH FOR CREATE CONSUMPTION ADVICE PERFORMANCE ISSUE
INVRCADB.pls 115.55.115100.35

Patch 6945480 - NO NEW RELEASES ARE GETTING CREATED FOR CREATE CONSUMPTION ADVISE
INVRCADB.pls 115.55.115100.38
* At the time of this note edit in February 2010, this was the highest one-off consumption advice patch.

Patch 9063156 - Oracle Inventory and Receiving (PO): Release 11.5.10, Rollup Patch 18
INVRCADB.pls 115.55.115100.44
* This was the latest rollup patch when this note was last edited in February 2010.
It has a number of releases above 38 related to consumption but no one-offs available.

3.1(d) Enhancement Requests

Here are some commonly referenced enhancement requests (ERs) related to consigned inventory or consumption advice. Note that an
enhancement request is tracked as a low-level bug. Therefore, you can query these enhancements via the bug tracking system.

Bug 5156251 - Allow implicit transfer back to consigned

* This was implemented in R12.2.2 and higher. No backward ports are available for earlier releases.
* See Note 1938948.1.

Bug 6845969 - Allow Transactions To Issue Out Non-Consigned Material Only

Bug 6845983 - Subinventory Transfer Specifying Owning Party For Consigned Transactions

Bug 6842739 - Resubmit Consumption Transactions Via Form

Bug 6845989 - Allow flag consumption transactions to cancel with reason

Bug 12971726 - Allow Create Consumption Advice If Consumed Before PO Cancelled

Bug 6510841 - Seeded Consignment Workflow For Shipping Inventory From Supplier

Bug 3877988 - Printed Consumption Advise for Manual Communication to Suppliers

5 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

Bug 7241511 - Show Request/Log From Consumption Worker (INVCTXCW) in Inventory

** This was implemented in 11.5.10 INV RUP 11 and higher. See Note 726226.1 for details on the
rollups (RUPs).
If you do NOT have the fix, you can ask your system admin to look for all recently completed requests
for "Create consumption advise worker". Or use this SQL:
select request_id, PROGRAM_SHORT_NAME, STATUS_CODE, PRIORITY
from fnd_conc_req_summary_v c
where REQUEST_DATE > sysdate - 10
and PROGRAM_SHORT_NAME = 'INVCTXCW';

Bug 6795450 - Consignment Transactions In Error With Code INV_SUP_CONS_NO_BPO_EXISTS

** This was implemented in 11.5.10 INV RUP 16 and higher. See Note 726226.1 for details on the
rollups (RUPs).

Bug 7672084 - Cycle Counting For Consigned Stock

Bug 9201771 - Allow consigned items to be interfaced using the open interface
(MTL_TRANSACTIONS_INTERFACE) -- OWNING_ORGANIZATION_ID is NOT honored
** This appears to work fine on 11.5.10+. Tested on INV RUP 16. Developers updated Bug 22899940 that
it may work but not supported. Use this feature carefully and validate all data.

Bug 18741905 - ER: RTV (RETURN TO VENDOR) DIRECTLY VIA MOBILE HANDHELD DEVICE FROM WMS ORG

3.2(a): Resubmit a stuck consumption transaction?

The application does not provide a method at this time for resubmitting stuck consumption transactions. An enhancement request (ER) Bug
6842739 was logged requesting the functionality. Until then, users must resubmit transactions using SQL. The following identifies if
transactions are stuck and provides SQL to resubmit:

a. Check for stuck transactions by looking at batch_id and the consumption processed flag:

Select count (*) from mtl_consumption_transactions

Where nvl (batch_id, -1) <> -1
And consumption_processed_flag in ('N','E');

b. If count is greater then ZERO, do the following to resubmit the transactions:

Update mtl_consumption_transactions
Set batch_id = NULL
Where batch_id is NOT NULL
And consumption_processed_flag in ('N','E');
COMMIT;

3.2(b): Consumption advice does not work...

"Create consumption advice" is the name of a concurrent program that generates Purchase Orders or Purchase Order Releases so that a
supplier can bill for used material. This also helps suppliers know what inventory needs to be replenished. See Chapter 3 (especially page
3-4) of the "Consigned Inventory From Supplier Process Guide" for an explanation of the program and process.

There are a few notes and bugs related to the consumption advice program completing but not generating purchase orders or releases --
Here are some Notes that might be helpful:

Note 404609.1 Create Consumption Advice Program Not Creating Releases For Payment
Note 394123.1 Transactions in MTL_CONSUMPTION_TRANSACTIONS with INV_SUP_CONS_NO_BPO_EXISTS
Note 308875.1 Create Consumption Advice For Consignment Not Working
Note 312724.1 and <> How to Print the Consumption Advise Report?
Note 333027.1 11i INVRCADB Invoices Not Being Created For Consignment Inventory <> FAQ: Using Consigned Inventory / Consumption

6 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

Advise /Vendor Managed Inventory (VMI)

Note 1087599.1 Vision Demo - How To Consume Consigned Inventory (Consumption Advise)

Here are some common situations and helpful SQL used to check for the issues:

a. Check for NULL transaction_source_id :

Select count (*) from mtl_consumption_transactions mct, mtl_material_transactions mmt

Where mct.transaction_id = mmt.transaction_id
And mct.consumption_processed_flag in ('N','E')
And mmt.transaction_source_id is NULL;

If Count is greater then ZERO, 'Create Consumption Advice' will fail. See Note 452970.1 for a root-cause patch and Note 438935.1 for a
datafix.

b. Check for INVALID blankets:

Check if the blankets are valid at the time 'Create Consumption Advice' is run. By design, the blankets MUST BE OPEN/ACTIVE when
Create Consumption is run.

You have to check the validity at:

. The blanket header / line level
. Expiry dates set if any at the line level and in the 'Terms' of the blanket
. Purchase Order 'Control' Options.

The "Create Consumption Advice Worker" will show an "****INVALID LINE" error for invalid blankets.

c. Check the billing cycle

Check the billing cycle in the approved supplier list. The 'Consumption Advice' will NOT be created unless the billing cycle has been
elapsed. To check the billing cycle, you could review the Approved Supplier List (ASL) via the Purchasing (PO) forms using PO >
Suppliers > Approved Supplier List. If the billing cycle has not passed, regardless of how many times 'Create consumption' is run, the
transactions will not be picked up. People often miss looking at the billing cycle so think that consumption advice is broken as it does not
generate releases. Actually, they had setup the application to only bill every 30 days for example and that is why nothing is generated.
Here is an example query as well that we were working on to help look for stuck transactions where the billing cycle has not yet passed.
You could modify it to limit by item (mmt.inventory_item_id) if there are too many results.

Here is the sample query:

select distinct paa.ASL_ID, paa.last_billing_date, paa.consigned_billing_cycle
from apps.po_asl_attributes paa
where paa.last_billing_date + paa.consigned_billing_cycle < sysdate
and paa.asl_id IN (
select pad.asl_id
from apps.po_asl_documents pad,
apps.po_lines_all pol,
apps.mtl_consumption_transactions mct,
apps.mtl_material_transactions mmt
where pad.document_header_id = mmt.transaction_source_id
and pad.document_line_id = pol.po_line_id
and pol.item_id = mmt.inventory_item_id
and mct.consumption_processed_flag IN ('E','N')
and mct.transaction_id = mmt.transaction_id
and mmt.organization_id = &EnterYourOrgID);

* If the billing cycle has not yet passed, you might see something like the following in the "Create consumption advice worker" log file
with Inventory Debug enabled: "INV_CONSUMPTION_ADVICE_PROC: Consumption Txn Worker(l_elapsed)1". This means billing cycle
days did not pass yet. It is followed by "<< Delete Record where the record is purged from the batch." The developers explain this
message indicates: "If the billing date for the current asl entry has not elapsed yet then the associated change of ownership transactions
held in MTL_CONSUMPTION_TRANSACTIONS should not be processed yet. The current record slipped into this loop for that reason and
should therefore be deleted from the current batch."

* Also see Note 2068566.1 - Create Consumption Advise Runs But Does Not Process Anything, Check Billling Cycle Days

d. Check for NULL blanket_price:

Select count (*) from mtl_consumption_transactions

7 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

Where consumption_processed_flag in ('N','E')

And blanket_price is NULL;

A script will have to be run to populate the blanket price(b4649230.sql). Create consumption Advice will fail for NULL blanket prices. See
Note 401787.1 for details on the script. If you already have the patch that provides the script, you could rerun the script to correct the
data. If you have the patch, but continue to have this issue occur, log a service request for assistance.

e. Check for PO Auto Create failure:

If the log file contains INV_SUP_CONS_AUTO_CREATE_FAIL, see Note 601692.1 checking if you have a global Approved Supplier List
(ASL), and if so ensuring you have the right patch level. If the issue remains, log an SR to get assistance as we may need to log a bug
with Purchasing (502) for Auto Create Failure.

f. Duplicate Releases Created

If you have this issue, you are likely on a very old version of the Consigned files. Please confirm you have patch 5200436 (for 11.5.10)
and 5036673 (for 11.5.9)

In order to retrieve the duplicate releases, the following query will have to be run:
SELECT DISTINCT por.po_release_id
FROM po_releases_all por, po_line_locations_all poll
WHERE por.po_release_id = poll.po_release_id
AND poll.shipment_type = 'BLANKET'
And por.consigned_consumption_flag = 'Y'
AND por.po_release_id NOT IN
(Select DISTINCT consumption_release_id
FROM MTL_CONSUMPTION_TRANSACTIONS
Where consumption_release_id is NOT NULL);

Often you can remove duplicates via the forms. See the sections below "Handling unwanted releases?". We also have scripts to cancel
the duplicates. Log an Service Request to get help from Oracle Support if you cannot accomplish this via the form. They will likely first
have you run invgcacl.pls followed by invgposf.sql

g. Consigned Stock Not Issued

Check if regular stock and consigned stock are co-mingled for the same item in a given subinventory. Should this be the case, the stock
is always issued on FIFO basis. This may be the reason why regular stock may be issued ahead of Consigned stock.

h. Ownership Transfer Not Occuring For Consigned Stock: Invalid Blanket

1. Check if any of the blanket or any of the lines in the blanket is closed.
2. Check the expiration date on the lines
3. Check the End Date on the TERMS page in the blanket
4. Item Revision (if any) must exist on the blanket
5. If there is no blanket number specified on the ASL, ensure that the profile PO%Automatic Document Sourcing is set to 'Yes'. This
would pick up the latest blanket.
6. Ensure that vendor product number is less than 10 characters if patch 3223055 is not applied

i. Subinventory Transfer Not Triggering Consumption:

Check the Consumption/VMI Rules setup: By default, a subinventory transfer carried the 'Consigned Stock' status to the destination
subinventory in subinventory transfers.

If explicit rules have been setup (using the Consigned / VMI Rules setup form), the consumption will be triggered and the destination
subinventory would have regular stock.

j. Accrual Reconciliation Failure / Missing Po_Distribution_Id In MTL_CONSUMPTION_TRANSACTIONS

PO_DISTRITIBUTION_ID is automatically populated when 'Create Consumption Advice' is run. However, for customers who have not
applied patch 5200436, the Accrual Reconciliation process may fail. So, please ask the customers to apply 5200436.
Note: This fix is available only for 11.5.10

* For R12.1.3, see Note 1503175.1.

8 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

k. Consumption Advice Is Splitting Shipments On A Daily Basis For Local Blankets

Check the Profile option: "INV: Summarize Consumption By Need By Date". By default, the value is NULL. If set to Yes, the shipments in
a release will be grouped according to the transaction dates.
Note: This profile option does NOT affect consumptions referring to global blankets.

l. INV_CONS_SUP_INVALID_BPO (or other versions INV_CONS_SUP_E_INVALID_BPO and INV_CONS_SUP_A_INVALID_BPO)

Description: Standard application text for the error codes: Ensure that the blanket agreement is approved. The agreement and the
relevant purchase order lines must have future effectivity end dates and open status. Cannot release this item using the blanket
agreement.
Suggestion: As stated by the error description, the first thing to check is the blanke.t Make sure it is open, approved, has the correct
effective date, item, approved supplier list, etc. The patch 6766266 and patch 6945480 were recommended in the past for this issue on
11.5.10 via Bug.7249870. The patch 6945480 provides INVRCADB.pls 115.55.115100.38

m. INV_CONS_SUP_NO_BPO_EXISTS
There must be a Valid Blanket Purchase Agreement in effect for the item you wish to transact.
* For R11i - See Note 342366.1.
* Otherwise, validate the blanket is still open - See Note 375282.1.

3.3 Analyzer

See Note 2048039.1 - EBS Inventory Consignment Analyzer.

4: Transfer to Consigned:

The ability to transfer material back to consigned has changed over the releases. Three big changes happened via enhancement requests in
R12.2 with the addition of Implicit material to be transferred back in R12.2.2, automated transfer for WIP Issue Returns via R12.2.4, and the
addition of previous consumed material to still be returned in R12.2.5.

In R12.2.5 and higher:

Like R12.2.2, the user can transfer back to consigned for both Implicit and Explicit consumption transactions. In addition with
additional setup, the user can transfer to consigned even after consumption advise has occurred. See Note 2375360.1 for details.

In R12.2.2 through R12.2.4:

The user can transfer back to consigned both implicit and explicit consumption transactions. In R12.2.4, there was a feature added to
also automatically transfer back for WIP Issue Returns with some additional setup. See Note 1938948.1 for details.

In R11i through R12.1:

If the consumption advice has been created, or consumption transaction have been generated implicitly, you cannot perform a
Transfer to consigned transactions. To perform an RTV transaction:
Create a miscellaneous issue out of the regular stock area, and a miscellaneous receipt into the consigned stock area.
Create a manual credit memo and match it to the appropriate consumption advice.

4.1: How does one perform 'Transfer to Consigned' when consumption transaction was generated implicitly?

Although there are limitations as discussed in section 4, the normal process to return material to consigned is with a transfer to consigned
transaction follows:

1. Navigation: Inventory > Transactions > Consigned Transactions

2. Enter type as Transfer to Consigned
3. Click transaction lines button.
4. Use the LOV for "Owning Party" or "Consumption Transactions"

In R11i through R12.1.x: The short answer is that "Transfer to Consigned" is not available at this time for implicit "Transfer to Regular"
transactions. From a business point of view, this means that if you accidentally used inventory from a vendor, you cannot simply transfer it
back via a "Transfer to Consigned". You might expect 'Transfer to Consigned' to work for implicit consumption transactions. When you take
the following steps, there are no transactions available. Due to this issue, unable to handle/process returns for over receipts of consigned
inventory.

That you might have expected to work follow:

1. Navigation: Inventory > Transactions > Consigned Transactions

9 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

2. Enter type as Transfer to Consigned

3. Click transaction lines button.
4. Try to use the LOV for "Owning Party" or "Consumption Transactions"
5. No list of values are returned.
** Transferring back to "Consigned" is not supported for implicit transfers to regular.

From NOTE: 258630.1:

- If the change of ownership from the Supplier has taken place via 'Implicit Consumption' viz. Move
Order Transaction, or Back flush etc, then this problem will happen.

- For Implicit Consumption the Transaction Type 'Transfer to Consigned' will not work.
This is because the link for the originating Transaction for consigned Receipt is lost when
an Implicit Consumption is done. Only when you do a 'Transfer to regular' transaction (Explicit Consumption) to change
the ownership from Supplier you will be able to return this to the supplier using 'Transfer to
consigned'

- As a workaround, when you need to move the Items back to the supplier
in case of a Implicit consumption, you can use the following limited option.
You can do a Misc issue of the Item from the subinventory. Using Folder / Show field
choose the Owning Party as the Supplier, and in the Account choose 'AP Accrual Account'
Then Subsequently you can use a Misc receipt to with Owning Party again
as the supplier to increase the Consigned Inventory Stock.

- This Workaround does not apply if there exists a Purchasing Price Variance.
(Suppose in a standard Costing Organization you receive the Items to Consigned Stock at 12$
and the Standard Cost of the Item is 10$, then the implicit consumption will result in a 2$ PPV.
However, when you do a misc Issue it will be done at 10$ - standard cost. This will result in an
unbalance of 2$).

From NOTE: 364738.1

1. The "Transfer to Consigned" does not work because of the following:
a. Transfer to consigned transaction is currently supported only for 'Transfer to regular'
transactions entered manually using Consigned Transactions window.
b. Only 'Transfer to regular' entered manually are called Explicit consumptions all other created
by the system are implicit
consumptions.
c. In case of Miscellaneous issue, the ownership transfer is created by the system and is still
implicit though the owning party might have been specified.
d. The documentation text might have created the confusion and will modified.
e. More details exist in section 4-6 of the Consignment User's Guide under the Return to Vendor
section.
f. Support for 'Transfer to consigned' for implicit transactions is a known issue and we already
have an ER to address that, but as of now the support is only for 'Transfer to Regular'
transactions entered manually using the Consigned Transactions window.

2. The following workarounds are available:

a. Manually transfer to regular instead of performing an explicit consumption transaction.
b. Correct mistakes in transfers via miscellaneous issues from the owning organization and
miscellaneous receipt into the supplier organization.

4.2: Transfer to Consigned Enhancement

Transfer to consigned for implicit transactions was added in R12.2.2 and higher via Enhancement Request (ER) Bug 5156251. The
bug focused on the suggestion requesting that implicit transfers also allow "Transfer to Consigned".

* This was implemented in R12.2.2 and higher. No backward ports are available for earlier releases.
* See Note 1938948.1.

There was an additional enhancement added in R12.2.4 that allows to automatically transfer back implicit WIP Issue consumption
when the user performs a WIP Issue Return. See Note 1938948.1 for details.

There was another enhancement implemented in R12.2.5 and higher that allows to transfer to consigned even after consumption
advise has occurred. See Note 2375360.1 for details.

4.4: When is Transfer to Consigned Available?

10 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

The ability to transfer to consigned has changed over the releases. The most robust features are in r12.2.5 and higher.

In R12.2.5 and higher: Like R12.2.2, the user can transfer back to consigned for both Implicit and Explicit consumption transactions. In
addition with additional setup, the user can transfer to consigned even after consumption advise has occurred. See Note 2375360.1 for
details.

In R12.2.2 through R12.2.4: The user can transfer back to consigned both implicit and explicit consumption transactions. In R12.2.4, there
was a feature added to also automatically transfer back for WIP Issue Returns with some additional setup. See Note 1938948.1 for details.

In R11i through R12.1.3: After Patch 4890407 with the transaction form INVTTMTX 115.239.115100.22 or higher, the list of available
consignment transactions is limited to those transactions that have a source code of EXPLICIT. Before this patch, the
'TRANSACTION_BATCH_SEQ' in MTL_MATERIAL_TRANSACTIONS was used to differentiate between IMPLICIT and EXPLICIT consumption
transactions. This was causing issues in "Return to Vendor" Transactions for mobile transactions. The query for the List of Values is
something like the following:

SELECT mmt.*
FROM MTL_MATERIAL_TRANSACTIONS mmt , MTL_CONSUMPTION_TXN_TEMP mctt
WHERE mmt.transaction_id=mctt.transaction_id
AND mmt.transaction_type_id=74
AND mmt.source_code = 'EXPLICIT'
AND nvl(mctt.net_qty,0) > 0

4.4: SQL to review Transfer to Regular Used for Transfer to Consigned?

You can track what transaction was responsible for a transfer to consigned using the parent id. To perform a transfer to consigned, one
must have at transfer to regular. Upon saving the transfer to consigned, the related transfer to regular transaction is recorded in the new
transaction's parent transaction id column. The following SQL returns the transfer to regular transaction responsible for the transfer to
consigned. It prompts for the transaction id of the transfer to consigned as &EnterTransactionID.

select * from mtl_material_transactions mmt

where mmt.transaction_id IN (
select mct.parent_transaction_id
from mtl_consumption_transactions mct
where mct.transaction_id = &EnterTransactionID)

5: Can one view the owner party in the subinventory transfer form?

No, see more details in NOTE: 344337.1 Issue With Inventory Movement From Consigned Subinventory.
Here is a snippet:

Current behavior is that for subinventory transfers there is no owning party access on the form.
In other words the system does not distinguish between consigned and non-consigned stock when
performing a subinventory transfer. the system does consumption on the basis of FIFO.

This question was addressed in bug 4246717 and Bug 4128396 - TRANSFER TO REGULAR NOT DECREMENTED CORRECTLY.

Suggested workaround:
In the subinventory where both consigned and non-consigned stock will be maintained, create 2
locators: one that will be designated for consigned quantities only, and one that will be
designated for non-consigned quantities only. Thereafter when receiving or transferring stock out
of that subinventory, be sure to specify the correct locator to pull from, based on whether
consigned or non-consigned stock is to be transacted. When consuming consigned stock, use the
'Transfer to Regular' option, specifying the non-consigned locator into which the consumed stock
will be put.

11 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

Correcting Comingled Inventory

Comingled inventory would occur when you have both regular (owned) inventory and consigned (supplier-owned) inventory in the same
location (like the same subinventory when not using locators).

Also see Note 1346145.1 that includes a video on sorting out mixed inventory.

A. If the regular stock has the oldest receipt date, you can simply subinventory transfer.
The oldest stock thru FIFO goes first, so it can be transferred to another subinventory. You can review the receipt date by querying against
the MTL_ONHAND_QUANTITIES_DETAIL table looking at the DATE_RECEIVED and ORIG_DATE_RECEIVED columns. Original date received
is only used when the profile option "INV: FIFO for Original Receipt Date" is set to track original receipt date.

B. If the consigned stock has the oldest receipt date, you have to trick the system so that the receipt flag is reset on the consigned
inventory. This will make the regular / owned stock have the oldest receipt date and let you do the transaction like in #1. To trick the
system, take the following steps:

Let's say you have 20 in consigned and 19 in regular comingled into the same subinventory.
a. Perform 'Transfer to regular' of the consigned stock - let's say 20
b. Now transfer the 20 back thru 'Transfer to Consigned.'
* This reset the receipt date on the consigned inventory to the NEWEST.
c. Now you can perform a subinventory transfer of the 19. The FIFO rules will ensure that the regular stock is now used.

6: How does one manage consigned inventory with locators?

For example, do we transfer the inventory to company owned when we need to use it?

The point about using a separate locator is so that your users will know when they are going to
consigned inventory or when they are using inhouse inventory. Depending on how you are using the
application and what types of transactions, you should not have to manually transfer from
consigned. You should just simply use the inventory in the consigned locator.

You should be able to use the inventory from the locator via normal processing. The application
should determine where to get the inventory. For miscellaneous issues from the consigned locator,
the transfer to regular will occur and the inventory will be issued. The same can be setup for
subinventory transfer from the consigned locator. For the transfer to regular to be automated,
you would use the "Consignment Setup" screen. This is in Setup > Transactions > Consigned/VMI
Consumption.

See some test cases listed above outlining how the transfer to regular and the use of consigned
inventory can be automated.

7: Consigned Setup

7.1: What are the setup steps required for using Consigned Inventory?

See Section B of the "Consigned Inventory User's Guide". This walks through the following steps:
Step 1 Set Up Organizations
Step 2 Set Up Oracle Inventory Items
Step 3 Set Up Oracle Approved Supplier List and Supplier Sites
Step 4 Set Up Profile Options
Step 5 Numbering Options
Step 6 Set Up Oracle Purchasing Blanket Purchase Agreement
Step 7 Define Consumption Rules (optional)
Step 8 Set Up Pay Options in Oracle Payables
Step 9 Set Up Oracle Workflows

See the demonstrations above in FAQ point #1.

Also see Note 405518.1.

7.2: What Setup Required for Consigned Orders in Purchasing?

12 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

See Note 428100.1.

7.3: What setup should Suppliers perform for consigned inventory?

The consignment functionality provides warehouses purchasing consigned inventory with features to track and even allow suppliers to
review inventory usage. But what if the supplier has implemented the Oracle Applications? Will they have features within Consignment? A
supplier using the Oracle Applications internally will need to ship inventory but not bill the customer until confirmation is received that the
inventory was consumed.

In R11i you have to modify the Order Management workflow to handle this custom billing process. This is the basic approach to take in
R11i:
1) Use the shipping feature of trip stop planning. In case of FOB point being customer destination then
perform the ship confirm but do not close the trip and defer the inventory interface.
This way the inventory is still held in the Inv org. Once the goods are received, update the "Trip" and allow inventory interface (COGS) and
AR invoicing.
2) Map COGS account to Intransit account. Control the Invoicing process by workflow wait activity before fulfillment if its fixed days based.
Use an extension to systematically revert and book actual COGS once the line is invoiced.
3) Alternatively use invoice hold in the above case.
4) Consider using the deferred revenue accounting with sl no-2.

In R12 we have a new feature called Deferred Revenue Recognition which handles the scenario. It also takes into consideration when
the COGS account is updated.

8: How do I specify the owning party during Miscellaneous Transactions?

Note: The owning party is limited to suppliers. You can not specify the inventory warehouse as a owning party on the miscellaneous
transaction form. This is a known limitation.

a. Using the Miscellaneous Transaction form

To specify the owning party on the miscellaneous transaction form, one must use the folder tools and add the column "OWNING PARTY".
This column IS NOT available for all types of transactions, for example, not available in Account Alias transactions. After adding the column,
one can enter the specific owning party for the inventory being used. For example, you might want to explicitly pick the owning party for a
miscellaneous issue. To do this, you would take the following steps:

Navigate to Inventory > Transactions > Miscellaneous Transactions

Enter the transaction header information, for example, Miscellaneous Issue
Press the Transaction Lines button
Enter the item
The cursor moves to the next field, Subinventory.
Choose Folder > Show Field from the top Menu
Select Owning Party
Press Ok
The owning party field now displays
The combination of Supplier and Supplier Site are selected in this field
The value is validated against available selections

b. Using the Open Interface

Note: Developers updated Bug 22899940 that it may work but not supported. Use this feature carefully and validate all data. The ER /
Bug 9201771 indicates that consignment transactions cannot be done passing in the owning organization as it is ignored. A number of
support engineers have tested this on 11.5.10 and higher. It worked fine.

Below are details of the test and example SQL:

You can use the inventory interface for loading consigned inventory into your warehouse as a miscellaneous Receipt of consigned items.
Specially required if you are migrating data due to an initial installation. You can use the following script as example for which you have to
perform the changes accordingly to your specific needs. After successful process, the Material Workbench form will show the consigned item
with the quantity 1 in a subinventory. Enter variables that match your environment for inventory item subinventory, inventory organization
and supplier site id.

13 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

Here is the insert:

INSERT INTO mtl_transactions_interface

(transaction_interface_id, transaction_uom, transaction_date,
source_code, source_line_id, source_header_id, process_flag,
transaction_mode, lock_flag, last_update_date, last_updated_by,
creation_date, created_by, inventory_item_id, subinventory_code,
organization_id, transaction_quantity, transaction_type_id,
owning_organization_id, owning_tp_type
)
VALUES (mtl_material_transactions_s.NEXTVAL, 'Ea', SYSDATE,
'Miscellaneous Receipt', -1, -1, 1,
3, 2, SYSDATE, 1318,
SYSDATE, 1318, '&EnterItemID', '&EnterSubinventory',
'&EnterINVOrgID', 1, 42,
'&EnterSupplierSiteID', 1
);

Example parameters:
EnterItemID: 317990
EnterSubinventoryCode: FGI
EnterSupplierSiteID: 1414
(In Vision, 1414 is the supplier site id of Corp HQ from Vendor ID 600 / 3M Health Care)

You might use SQL like the following to help identify the supplier site (VENDOR_SITE_ID):

SELECT VENDOR_SITE_ID,
VENDOR_SITE_CODE,
ADDRESS_LINE1,
CITY,
STATE,
COUNTRY
FROM PO_VENDOR_SITES_ALL
WHERE VENDOR_SITE_CODE LIKE UPPER('%&SUPPLIER_SITE%');

Or you can use SQL like this that looks at the supplier and supplier site:

Select b.Vendor_Site_Id USE_THIS_ID, a.vendor_id, a.segment1, a.vendor_name, b.VENDOR_SITE_CODE,

b.Vendor_Site_Id, b.Vendor_Site_Code, b.Address_Line1, b.City, b.State, b.Country
FROM PO_VENDOR_SITES_ALL b, PO_VENDORS a
Where a.vendor_name Like Upper('%&SUPPLIER_NAME%')
and B.Vendor_Site_Code Like Upper('%&SUPPLIER_SITE%')
and a.vendor_id = b.vendor_id;

c. Using Interface For Transfer to Consigned

The transaction open interface also can be used to transfer material to regular and consigned. In this SQL example, you see a transfer to
consigned type id 75. It is important to note that the transaction source id (transaction_source_id) should be transaction_id of transfer to
regular (transaction_type_id 74) with negative quantity. Please refer to the following sample. This code is not being provided as supported
code but as a sample for using the interface.

Here is an example SQL for vendor site 3M and M1 in a vision environment using a consigned item id 1013970 in subinventory finished
goods (FGI) transferring a quantity of -11 back to consigned where 29208828 was the original transfer to regular transaction id that
decremented inventory:

INSERT
INTO mtl_transactions_interface
(
transaction_interface_id,
transaction_uom,
transaction_date,
source_code,
source_line_id,
source_header_id,
process_flag,
transaction_mode,
lock_flag,
last_update_date,
last_updated_by,

14 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

creation_date,
created_by,
inventory_item_id,
subinventory_code,
organization_id,
transaction_quantity,
transaction_type_id,
TRANSACTION_ACTION_ID ,
TRANSACTION_SOURCE_TYPE_ID ,
owning_organization_id ,
owning_tp_type ,
XFR_OWNING_ORGANIZATION_ID ,
transfer_owning_tp_type ,
TRANSACTION_SOURCE_ID
)
VALUES
(
mtl_material_transactions_s.NEXTVAL, -- transaction_interface_id
'Ea', -- transaction_uom
SYSDATE, -- transaction_date
'JBP To Consigned', -- source_code
-1, -- source_line_id
-1, -- source_header_id
1, -- process_flag / 1 = yes
3, -- transaction_mode / 3 = background
2, -- lock_flag / 2 = no
SYSDATE, -- last_update_date
1318, -- last_updated_by
SYSDATE, -- creation_date
1318, -- created_by
'1013970', -- inventory_item_id
'FGI', -- subinventory_code
'207', -- organization
-11, -- quantity
75, -- transfer to consigned
13, -- txn source type 'to regular' 1 ,
6, -- Action id,
207, -- owning inventory org
2, -- not consigned
1414, -- 'EnterSupplierSiteID' --xfr_owning_organization_id, vendor_site_id
1, --transfer_owning_tp_type,
29208828 -- TRANSACTION_SOURCE_ID --the transaction_source_id should be transaction_id of transfer to regular
which quantity is negative.
);

9: Inter-Org Transfer Loses Owning Party / Transfer to Regular

An Internal Organization Transfer (Inter-Org Transfer / Inter Org Transfer) results in the onhand quantity no longer belonging to the
consigned party. Effectively, the inter-org transfer loses the Owning Party and takes the destination organization as the new owner. If you
look at the transactions after the inter-org transfer, you will see that the system does an implicit consumption Transfering to the onhand
quantity to Regular in the source organization before doing the transfer.

This is a known issue logged in Enhancement Request Bug 5555142. The issue is very critical to many customers. Unfortunately, it is not
something the product does yet (as of the time this note was written). You can review and vote on the related idea #2073 on the Logistics
Community - Title: NV:Support Inter Org Transfer of Consigned Inventory.

10: Other Common Errors:

10.1: Error: This supplier site combination must have a valid Approved Supplier List.

If you receive the error, "This supplier site combination must have a valid Approved Supplier List", ensure the item has an approved supplier
listed. See Note 406392.1 for details on the error and the related setup.

15 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

10.2: Purchase Price Variance (PPV) Report errors with ORA-01476

See note 293403.1 that discusses the datafix as well as Note 552072.1 that has an explanation of the cause and details on how to avoid
future occurrences of data issues.

10.3: Error: There must be a Valid Blanket Purchase Agreement in effect

Confirm your setup per Section B of the "Consigned Inventory From Supplier Process Guide".

* For R11i - See Note 342366.1.

* Otherwise, validate the blanket is still open - See Note 375282.1.

10.4: Error: APP-FND-01030: Value longer than 20 characters

Full error: APP-FND-01030: Value xyz is longer than its maximum length of 20 characters. See Note 559326.1.

11: Onhand Shows Zero (0) Attempting to use Consigned Inventory

During a transfer to regular, if the Onhand quantity shows zero (0), you might check out Note 273958.1.

12: Drill Down in Material Workbench Displays the Wrong Quantity

If the drill down in Material Workbench (INVMATWB.fmb) displays the wrong quantity for consigned inventory, see Note 306397.1.

13: Using Consigned Inventory With OPM?

If you are using Process Manufacturing (OPM), you might be wondering if you can use Consigned Inventory. As of 11.5.10, this was not
supported. See Note 404597.1.

14: Helpful SQL

14.1: Review consumption transaction status via SQL?

One can view the status of consumption via the Material Transactions form available via Inventory > Transactions Material Transactions.
After querying the transaction, one can goto the Consumption Advice tab and look at the From Owning Party, status of the consumption,
and any associated errors.

One can view the similar data via SQL. The consumption table (MTL_CONSUMPTION_TRANSACTIONS) stores the status of consumption
transactions by transaction id. The following SQL would look at a specific transaction id and view the process status and error explanation.

SELECT DECODE(CONSUMPTION_PROCESSED_FLAG,'Y', 'Created', 'E', 'Error','Pending'), ERROR_EXPLANATION

FROM MTL_CONSUMPTION_TRANSACTIONS

WHERE TRANSACTION_ID = &EnterYourTransactionID

15: Pricing / Value

16 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

15.1: Can I update the blanket price for a consigned line item?

You can update the blanket price on a blanket agreement for a consigned line item. Without using retroactive pricing, the price on the
created consumption advices will NOT be changed. For new transactions (transfer to regular txns), the new blanket price would be stamped
to consumption (MTL_CONSUMPTION_TRANSACTIONS) table.

15.2: How can I use retroactive price update for consigned shipments?

The process of applying retroactive price updates to purchasing documents for consigned material is same as that for regular material.
Consumption advices are retroactively update only when the profile - "PO: Allow Retroactive Pricing of Po" is set to "ALL RELEASES". You
can execute retroactive price updates either from the PO Approval screen or by submitting the Retroactive Price Update concurrent program.
When using the PO Approval screen to make retroactive price updates, enable the "Apply Retroactive Price Update to Existing PO/Releases"
check box.

Note: Retroactive price update only applies to the consumption advice. Consumption transactions, for which consumption advices have
not been created, will not be affected by retroactive price updates. Also note that "Agreed Amount" limit defined in Blanket Purchase
Agreement is not imposed when the price of the consumption advice is updated retroactively.

15.3: Can price breaks be used for Consigned Stock?

Yes, price breaks are used for giving discounts based on the quantity.

15.4: Does retroactive pricing update Standard POs used for receiving consigned stock?

The standard POs for receiving consigned stock have no reference to the blanket. So, retroactive pricing does NOT have any impact on
these standard POs.

15.5: Finding Price / Value of Consigned Stock?

Open purchase order summary form and query for PO by checking the View releases check box and see that the shipment shows price.

16: What is Misc issue / Misc Receipt of Consigned Stock?

Misc receipt of Consigned Stock:

When consigned stock is received thru' a Misc receipt (by specifying the owning party), the supplier is still the owner of the stock. No
accounting entries are hit.

Misc issue of Consigned Stock:

On performing a 'Misc issue' of consigned stock, an implicit consumption (ownership transfer) of consigned stock is triggered. So, the
material is transferred from the supplier to the Inventory organization first and then, the misc issue transaction is triggered. Accounting
entries will be hit. So, the behaviour you see is the expected behaviour.

Any transaction other than a 'Consigned Transaction' (explicit consumption) - for instance WIP issue, SO issue, InterOrg transfer (of
consigned stock)- will result in implicit consumption.

Note: Misc receipt of consigned stock is from a supplier and material is received into an inventory organization. Misc issue of consigned
stock is from the inventory organization and material is issued out of the inventory organization. Misc issue of Consigned stock DOES
NOT return material back to the supplier; ownership transfer transactions are triggered when a misc. issue of consigned stock is
performed.

17 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

Relating Issue and Transfer

You can see the transfer to regular that occurred due to a miscellaneous issue by comparing the transaction_batch_id. If material was
transferred to regular from consignment for the miscellaneous issue, then the batch will be the same for the three transactions (1) transfer
from consigned, 2) transfer to regular, 3) miscellaneous issue). Here is an example SQL to review the values of a specific item:

select TRANSACTION_BATCH_ID, TRANSACTION_SET_ID, transaction_type_id, owning_organization_id,

transaction_quantity, c.*
from mtl_material_transactions c
where inventory_item_id = &EnterItemID
and creation_date > sysdate - 1;

17: What is Consumption Rules Setup used for?

By default, transfer transactions within an INV org, such as subinventory transfers, do NOT create ownership transfer transactions. However,
if we want to force consumption, we can set it as a rule in the Consumption Rules setup form.

18: How does FIFO rules apply for consigned stock?

FIFO rules apply to consigned stock in the same way they apply to regular stock. Please note that when consigned and regular stock of
items are co-mingled in the same subinventory, FIFO rules decide which stock will be issued first.

19: Sometimes, consumption transactions refer to a different source blanket. Why does this happen?

Check the profile option PO: Automatic Document Sourcing. If set to Yes, the latest blanket available for the item/supplier/site combination
is always used irrespective of the blanket specified in the ASL

20: How do we back-out erroneous misc. receipt of consigned stock?

Consigned/VMI receipt transaction is the same as Misc. Receipt transaction for receiving consigned stock (by specifying the owning party).

Receiving consigned stock through Misc receipt is NOT a normal scenario (though it is supported). We do NOT support return of consigned
stock (to the supplier) received through Misc receipt.

The recommended approach this case (data entry mistakes while receiving consigned stock through misc. receipts (cons/VMI receipt in
mobile)) is to consume the stock, finally close the created consumption advice (so that it is not invoiced) and manually make the accounting
entry reversals. We agree that it is a cumbersome procedure, but nonetheless, the safest way to back-out the consigned stock.
Also, it is strongly recommended that the customer receive consigned stock through PO receipts so that corrections can be adjusted through
RTV transactions. PO receipt is the standard way of receiving consigned stock.

If the customer performs a Cons/VMI issue (same as misc. issue), the stock will NOT be backed out; instead the stock will be consumed (i.e
ownership transfer transactions are triggered) and so, the stock liability is transferred to the INV. organization.

21: Is Cycle counting supported for Consigned Inventory?

NO, unfortunately there is no straightforward support for making cycle counting or physical counting of consigned inventory. When you do
misc. issue we do not know whether it is due to wrong misc. receipt entry or a true issue of stock, we always consume the consigned stock.
The only way is to use workaround in such cases of data entry mistakes. Manually make accounting adjustments to reverse the entries
created at Misc. issue and also finally close the consumption advice that is create due to this so as not to invoice the same.

** We logged ER / Bug 7672084 - Cycle Counting For Consigned Stock

22: Consumption advice shipments are split date-wise for local blankets?

Please check the profile option: INV: Summarize consumption releases by Need By Date
If this profile option is set to 'Yes', a shipment line will be created for an item based on the consumption date (which is what is happening
for the customer). If set to 'No' (or NULL), all the consumption transactions for a particular item will be grouped into a single shipment. '
The default value for this profile is 'No' or NULL.

Note: The above profile option is applicable ONLY for local blankets. For global blankets, irrespective of the value of this profile, a single

18 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

shipment will be created for each day for an item.

23: Why is no PPV generated when I perform subinventory transfer from an expense subinventory to an asset subinventory?

While doing the subinventory transfer from expense subinventory to asset subinventory, an implicit consumption (if consumption rules have
been setup for this subinventory transfer) is triggered first in the expense subinventory before it is transferred to the asset subinventory,
since this ownership transfer transaction takes place in expense subinventory, it is expensed at PO price and hence there would not be any
PPV. This is the expected behaviour.

24: Performance

On R11i - See the consumption advice consolidated Patch 5659866.

25. Handling unwanted releases?

(How to avoid, cancel, or stop paying a vendor for material that you accidentally used if you already ran create consumption advice and the
processed flag is Yes?)

You can handle unwanted releases or duplicate releases without a datafix. Set the releases to "Finally Close" within the purchasing forms:
1. Navigate to Purchasing > Po summary form
2. Query the Releases / Consumption Advices from Po summary form
3. Go to Tools > Control
4. Select "Finally Close".

Note that we also have scripts to cancel the duplicates. Log an Service Request to get help from Oracle Support if you cannot accomplish
this via the form. They will likely first have you run invgcacl.pls followed by invgposf.sql

26. Is the "Transfer to Consigned" Transaction type supported when performing transactions using MSCA?

No, the "Transfer to Consigned" transaction type is not supported. Mobile has "Transfer to Regular" but not "Transfer to Consigned". Mobile
also allows for receiving and issue consigned material. "Return to Vendor" is another type of transaction NOT available on mobile.

You might be looking for it in mobile by using say the WMS responsibility,
Navigation: Warehouse-->Inventory--->Transfer-->
See "Transfer to Regular" but not "Transfer to Consigned".

You may want to also perform "Transfer to Consigned" transactions but it is not available... The "Transfer to Consigned" transaction type is
not supported via Mobile Web apps (MWA/MSCA). There are other transaction types that are not supported in MWA as well. Development

19 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

states the business logic/reason is that transaction types that involve a physical move are supported. Also, supported transactions are those
that can be performed by a lower level clerical person. Transactions that are not physical moves or may involve a higher level clerical person
with increased responsibility would not be included. This is the case with Transfer to Regular which is does not involve a physical move and
may have a higher financial impact.

27: Consumption Flow/Diagrams

27.0 New Column PO_LINE_ID

The MTL_CONSUMPTION_TRANSACTIONS table received a new column po_line_id to better track the line used to create the consumption.
Earlier, the consumption program would pick the first line that it found. The fix came for R12.1 and R12.0:

Release Patch Filename File Version

* R11i * Patch 12568433 (or INV RUP 14 invcons.odf 115.13.115100.6
and higher)
R12.0.x Patch 11900144:R12.INV.A invcons.odf 120.4.12000000.3

R12.1.x Patch 11900144:R12.INV.B invcons.odf 120.5.12010000.3

* Note: The R11i fix was Bug 7534112 but a one-off was not specifically released for the issue. Another small one-offf exists with the
same files: Patch 12568433 so that is the patch suggested here. The R11i fix was included in INV RUP14 (Patch 8403245 and higher).
See Note 726226.1 for the latest R11i RUP fix.

27.1: What is the general consignment flow and flags?

This illustration attempts to show the flow of consigned inventory. Inventory flows from the supplier into the warehouse, however, the
inventory is still owned by the supplier. After the inventory is consumed, the inventory is now owned by 'your warehouse'. If the inventory
is consumed automatically, this is considered 'implicit consumption'. If the inventory is consumed via a transfer to regular transaction, it is
an 'explicit consumption'.

Here is another view of the flow:

20 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

This illustration attempts to show the flags used for consignment in the onhand quantity table -- The OWNING_TP_TYPE and
OWNING_ORGANIZATION_ID columns flag consignment onhand quantity in MTL_ONHAND_QUANTITITES_DETAIL. This also notes that
VMI uses PLANNING_ORG_TYPE and PLANNING_ORGANIZATION_ID :

The following diagram attempts to show the flow of data through the tables. Information is received into onhand quanties owned by the
supplier then decremented with a transfer to regular so it is owned by the warehouse. The consumption advice is run to create notifications
to the supplier for inventory used.

21 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

There is also a nice diagram in Note 1093731.1.

27.2: Table MTL_ONHAND_QUANTITIES_DETAIL vs. view MTL_ONHAND_QUANTITIES?

Why do the records in MTL_ONHAND_QUANTITIES_DETAIL differ when comparing it to the MTL_ONHAND_QUANTITIES view?
MTL_ONHAND_QUANTITIES is a view in the database. You will notice that the where clause in this view (see below) restricts 'is_consigned'
= 2 which is not consigned inventory and owned by the company. This is as designed when development switched
MTL_ONHAND_QUANTITIES from a table to a view in a previous release, sometime prior to 11.5.9. mtl_onhand_quantities will never show
any information that is consigned. This is the reason you may see a difference when comparing information between the
mtl_onhand_quantities view and the MTL_ONHAND_QUANTITIES_DETAIL table. At the time you move your inventory item from consigned
inventory to regular inventory, the MTL_ONHAND_QUANTITIES_DETAIL table should then match. If you are designing any custom code you
should be aware of the is_consigned where clause on mtl_onhand_quantities. Here is the view definition:

CREATE OR REPLACE FORCE VIEW "APPS"."MTL_ONHAND_QUANTITIES"

("INVENTORY_ITEM_ID", "ORGANIZATION_ID", "DATE_RECEIVED", "LAST_UPDATE_DATE", "LAST_UPDATED_BY",
"CREATION_DATE", "CREATED_BY", "LAST_UPDATE_LOGIN", "TRANSACTION_QUANTITY", "SUBINVENTORY_CODE",
"REVISION", "LOCATOR_ID", "CREATE_TRANSACTION_ID", "UPDATE_TRANSACTION_ID",
"LOT_NUMBER", "ORIG_DATE_RECEIVED",
"COST_GROUP_ID", "CONTAINERIZED_FLAG", "PROJECT_ID", "TASK_ID") AS
SELECT moqd.INVENTORY_ITEM_ID inventory_item_id ,
moqd.ORGANIZATION_ID organization_id, moqd.DATE_RECEIVED date_received,
moqd.LAST_UPDATE_DATE last_update_date, moqd.LAST_UPDATED_BY last_updated_by,
moqd.CREATION_DATE creation_date, moqd.CREATED_BY created_by,
moqd.LAST_UPDATE_LOGIN last_update_login,
moqd.PRIMARY_TRANSACTION_QUANTITY TRANSACTION_QUANTITY ,
moqd.SUBINVENTORY_CODE subinventory_code,

22 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

moqd.REVISION revision, moqd.LOCATOR_ID locator_id,

moqd.CREATE_TRANSACTION_ID create_transaction_id,
moqd.UPDATE_TRANSACTION_ID update_transaction_id,
moqd.LOT_NUMBER lot_number, moqd.ORIG_DATE_RECEIVED orig_date_received,
moqd.COST_GROUP_ID cost_group_id, moqd.CONTAINERIZED_FLAG containerized_flag,
moqd.PROJECT_ID project_id, moqd.TASK_ID task_id FROM
MTL_ONHAND_QUANTITIES_DETAIL moqd WHERE moqd.IS_CONSIGNED = 2;

REFERENCES

NOTE:1083776.1 - INV Webinar Series: Consignment Overview / Introduction

NOTE:293403.1 - Purchase Price Variance Report Runs Into Error
BUG:5555142 - INTER-ORGANIZATION TRANSFER TRANSACTION TRIGGERING CONSUMPTION
NOTE:406390.1 - FAQ: Using Consigned Inventory / Consumption Advice / Vendor Managed Inventory (VMI)
NOTE:405573.1 - For A Lot Controlled Consigned Item No Material Lot Number Records Are Created For Implicit Consumption
NOTE:401787.1 - Performance Issue With Create Consumption Advice
NOTE:1503175.1 - Datafix: Po_Distribution_Id Is Null, Consignment Flagged With Wrong Release Id, Not Really Paid
NOTE:342366.1 - Transfer Consigned to Regular Errors: There Must Be A Valid Blanket Blanket Purchase Agreement
BUG:6510841 - SEEDED CONSIGNMENT WORKFLOW FOR SHIPPING INVENTORY FROM SUPPLIER
NOTE:428100.1 - What Are The Steps Required To Setup And Transact Consigned Orders in Purchasing ?
BUG:6845969 - ALLOW TRANSACTIONS TO ISSUE OUT NON-CONSIGNED MATERIAL ONLY OR FIRST
NOTE:391582.1 - How To Place A Consignment Order; Ship the Order and Not Decrement Inventory And Not Invoice Until Sold
NOTE:306397.1 - Drill Down in Material Workbench (INVMATWB.fmb) Displays the Wrong Quantity For Consigned Inventory
NOTE:365454.1 - Cannot Transfer To Consigned Inventory
NOTE:283488.1 - Asl Attribute 'Consigned From Supplier' Validated At Item Master Level
NOTE:344337.1 - Issue With Inventory Movement From Consigned Subinventory
NOTE:216050.1 - White Paper: Using Vendor Managed Inventory (VMI) in Oracle Applications
NOTE:601692.1 - Create Consumption Advice for Global ASL Does Not Generate A Blanket Release
NOTE:566984.1 - Create Consumption Program (INVRCADB) Is Creating Invalid Releases
NOTE:406392.1 - Receive Error: Transaction Failed: This Supplier Site/Item Combination Must Have Approved Supplier
BUG:4246717 - TRANSFER TO REGULAR NOT DECREMENTED CORRECTLY
NOTE:308875.1 - 11i - Create Consumption Advice For Consignment Not Working
NOTE:273958.1 - Onhand Zero for Regular Stock Consigned Transaction for Revision Control Item
NOTE:1093731.1 - What is Consignment Flow Of Data? Is There a Consignment Process Model / Consignment Data Model?
NOTE:405518.1 - Vision Demo: VMI to ASCP Planning to iSupplier Portal - Building And Displaying Schedules
BUG:9201771 - CONSIGNED ITEMS, MTL_TRANSACTIONS_INTERFACE AND OWNING_ORGANIZATION_ID.
BUG:7249870 - CREATE CONSUMPTION ADVICE FOR CONSIGNMENT NOT WORKING
NOTE:438935.1 - Datafix To Stamp the TRANSACTION_SOURCE_ID on Consigned Inventory Transactions When It Is Null
NOTE:376051.1 - Unable to Send Manual Consumption Advise for Release POXPRPOP Does Not Print The Release
BUG:3877988 - PRINT CONSUMPTION ADVICES REPORT FOR CONSIGNED ITEMS NOT AVAILABLE
BUG:4128396 - CANNOT TRANSFER ITEM IF THERE SUPPLIER CONSIGNED ITEM AT THE SAME SUBINVENTORY
BUG:6795450 - CONSIGNMENT ERROR INV_SUP_CONS_NO_BPO_EXISTS BUT PO WAS ACTIVE AT CONSUMPTION
NOTE:1938948.1 - New R12.2.x Feature / Enhancement Request Implemented: Consumption To Consigned For Implicit Consumption
BUG:12971726 - ER: ALLOW CREATE CONSUMPTION ADVICE IF CONSUMED BEFORE PO CANCELLED
NOTE:552072.1 - ORA-01476 In Purchase Price Variance Report (POXRCPPV)
NOTE:1087599.1 - Vision Demo - How To Consume Consigned Inventory (Consumption Advice)
NOTE:333027.1 - 11i INVRCADB Invoices Not Being Created For Consignment Inventory
BUG:5156251 - WHEN CREATING TXR TO CONSIGNED TXN, NO LOV FOR CONSUMPTION TXN FRM-41830
NOTE:364738.1 - Cannot Transfer Back To Consigned For Implicit Consumption, Consigned Transaction Has No Lov For Consumption
Transaction (FRM-41830)
NOTE:559326.1 - Create Consumption Advice Request Error APP-FND-01030
BUG:7672084 - CYCLE COUNTING FOR CONSIGNED STOCK
NOTE:404597.1 - Setup Vendor Consigned Inventory With Process Manufacturing (OPM)? No...
BUG:6842739 - RESUBMIT STUCK/ERROR MTL_CONSUMPTION_TRANSACTION VIA FORM, NOT SQL
NOTE:258630.1 - No Lov Of Owning Party When Perform The Transfer To Consign Transaction
NOTE:312724.1 - How to Print the Consumption Advise Report?
NOTE:404609.1 - Create Consumption Advice Program not Creating Releases for Payment
NOTE:2048039.1 - EBS Inventory Consignment Analyzer
NOTE:367843.1 - Open Purchasing Document Exists With Consigned Or Vmi Shipments And You Cannot Merge
BUG:6845983 - SUBINVENTORY TRANSFER SPECIFYING OWNING PARTY FOR CONSIGNED TRANSACTIONS
NOTE:394123.1 - Transactions in MTL_CONSUMPTION_TRANSACTIONS with INV_SUP_CONS_NO_BPO_EXISTS
NOTE:452970.1 - Find NULL TRANSACTION_SOURCE_ID (Or Other Inventory Columns)
NOTE:726226.1 - INV/WMS/RCV Family Patch Release History / Patchsets / RUPs
BUG:6845989 - ALLOW FLAG CONSUMPTION TRANSACTIONS TO CANCEL WITH REASON
BUG:7534112 - CONSUMPTION ADVICE BLANKET RELEASE LINE NUMBER REFERENCE IS INCORRECT

23 of 24 30-May-18 2:29 PM
Document 406390.1 https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-stat...

BUG:7241511 - DO NOT SEE REQUEST/LOG FROM CONSUMPTION WORKER (INVCTXCW)

NOTE:1346145.1 - How To Sort Out Consignment Commingling / Commingled Inventory (Comingling/Comingled)? [Video]
NOTE:2375360.1 - How to Enable Consignment Returns to Consigned Flow After Consumption? How to Set Parameter of
CONS_INV_RTN_DAYS for Functionality Consignment Returns after Consumption?
Didn't find what you are looking for?

24 of 24 30-May-18 2:29 PM