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Procurement Cloud
Consigned Inventory
by PTT

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Consigned Inventory
Consigned Inventory : Process Flow
Buyer Supplier
Consignment Agreement Between Buyer
and Seller

Consignment Order Sent to

Supplier

Consigned Inventory Received by

Buyer

Consumption Advice Sent to

Supplier

Invoice Sent to Buyer

Payment Sent to Supplier

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Consigned Inventory
Consigned Inventory : Process Flow and Order Lifecycle
Consignment Order
Create Lifecycle
Buyer Create
Consignment
Consignment Order
Agreement
PO

Supplier Get Supplier Review Invoice and Finance ASN

Acknowledgement Create ASN Payments

Warehouse Inventory Receipt TRX RCV

and Put away

Create
Transfer to Owned Consumption
Advice

Process Invoice and

Finance Payment

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Consigned Inventory
Consigned Inventory : Supplier Collaboration
Supplier Inventory Manager job role to manage supplier consigned inventory in Supplier Portal
• Visibility to on-hand quantities, aging, and consigned inventory transactions

Supplier Inventory Manager

Supplier
Portal

Review Consumption Review Consigned Review Consigned

Advices Inventory Inventory Transactions

Supplier Portal Consigned Inventory Tasks

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Consigned Inventory
Consigned Inventory : Consumption Advice
Communicate usage of consigned inventory to the supplier.
• Multiple communication methods (supplier portal, email, print)
• Flexible reporting periods (daily, weekly, monthly)

Consumption Advice
Multiple Supplier Communication
Sent to Supplier
Methods

Supplier Portal Email Print

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Consigned Inventory
Consigned Inventory Business Case
Business Case
✓ Allied corporation a distributor follows a laid out process for high value equipment to pay
for products as per demand of end customer
Create a Consignment ✓ Allied Corporation enters into a consignment arrangement with a Medical Supplies
Agreement company
✓ The agreement includes specific consignment terms like agreed value, billing cycle date,
pay on use, ageing onset and ageing period days
✓ A consignment order is referenced to the agreement for a material replenishment request
Create a ✓ Based on advanced shipment notice provided by Supplier material is received into stores
Consignment of Allied Corporation
Order(Associated with ✓ Consigned Consumption transaction is initiated to fulfill customer demand
agreement) ✓ Finance Clerk matches consumption advice to a payables invoice to clear supplier
payments

Receive consigned Transfer Ownership Match invoice and

Material into from consigned to Pay as per
Warehouse Owned consumption advice

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Consigned Inventory
Consigned Inventory – Process Steps
Process Steps

✓ Create a Consignment Agreement based on the required items and terms of the consignment arrangement

✓ Create a consigned order for an item which gets sourced against consignment agreement

✓ Supplier creates an Advanced Shipment Notice(ASN) in Supplier Portal

✓ Warehouse Personal receives consigned material against ASN

✓ Warehouse Personal performs put away transaction of consigned stock into inventory ( ownership of material remains
with supplier)

✓ Initiate transfer to owned to change the ownership of material from Supplier to buying organization upon material
consumption

✓ Run Create consumption advice to report the consigned material consumed within a period to supplier

✓ Financial Analyst matches the consumption advice to an invoice and settle payments for the consumed material

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Consigned Inventory
Consigned Inventory –Setups
Configuration

✓ Manage Document Styles setup should be done for consignment order and consignment agreement with consignment terms enabled

✓ Create a Blanket Purchase Agreement to setup or review consignment terms including aging onset point, aging period days,
consumption advice frequency and consumption advice summary

✓ Consignment terms (pay on use flag) could be setup at supplier site level to default terms in the agreement(Optional)

✓ Items configured in Product Hub as Inventory and purchased flags enabled

✓ Manage Cost Profiles to define cost profile of type consigned and assign items in default cost profile task or item cost profile

✓ Purchasing related configurations

✓ Manage Consumption Rules to managed ownership changes from consigned to non consigned

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Consigned Inventory
Consigned Inventory : Benefits
Consigned Inventory from supplier offers benefits for Buyer and Supplier

• Reduce working capital

Buyer • Reduce stock write-offs
• Reduce lead time

• Increase sales
Supplier • Reduce lead time
• Strengthen customer relationships

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Consigned Inventory
Consigned Inventory –Reports
Report Name Description

Consumption Advice Report Report to communicate consumption of consigned inventory to

supplier.

Physical Inventory Missing Tag Listing Report Listing of physical inventory missing tags including consigned
inventory owning party.

Physical Inventory Tag Listing Report Listing of physical inventory tags including consigned inventory
owning party.

Physical Inventory Tags Report Listing of physical inventory tags including consigned inventory
owning party.

Cycle Count Listing Report Listing of cycle counts including consigned inventory owning party.

Asset Inventory Valuation Report Consigned inventory and its value for audit and management
decision purposes.

Payable Matching Detail Report Matching details report shows the Invoice details that are
matched to consumption advice.

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Procurement Cloud
Useful Resources

➢ Oracle Documentation
➢ Cloud Customer Connect
➢ Oracle Cloud Applications
➢ Procurement Release Readiness
➢ Procurement Certification Details | 1Z0-1065-20

➢ PTT Workshop Schedules – List of all Workshops (Partner Trainings)

Support Note ID’s

• Fusion Procurement Master Content (Doc ID 2572812.2)
• Oracle Procurement Cloud and Fusion Procurement - Listing Of All White Papers (Doc ID 2177707.1)

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Consigned Inventory
New Features (23 B -23 C)

Complete list of features at Oracle Cloud Release Readiness

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ORACLE