Consignment Inventory

DS1007

Consignment Inventory

Problem Definition

ACME Co makes generator powered lighting units used on construction sites. Each unit is lot numbered, and there is a quantity of 1 for each lot number (the lot numbers are effectively serial numbers). The units are sent out on consignment, but ACME Co still owns the equipment until it is sold.

They need to be able to:

  • Create a transaction (Consignment Order) that records movement of inventory from main inventory to “Consignment”
  • Record the customer/address receiving the inventory
  • Have Sales enter a Consignment Order, and Shipping fulfill it (i.e. select specific Lot Numbers)
  • Track Lot Numbers of inventory in consignment

Reporting

  • Which Consignment Orders have turned into sales
  • Which Consignment Orders are still open
  • Where each Lot Number of inventory is currently located
  • Consignment Inventory by Customer

Design Features

Overview

The majority of ACME Co’s requirements can be met through the In-Transit Transfer (ITT) transaction. The process is described below.

Creating a Consignment Order

When the TO SITE is set to the Consignment Site, special functionality will be activated to support Consignment. The new functionality will provide the ability to lookup a Customer, and Customer Address, and return that information to the Address fields on the right hand side of the window. See Consignment Orders below for more detail.

Sales will enter the Item(s) to be transferred to the Consignment site.

Sales will print the ITT Picking Ticket to send to the Shipping department.

Shipping will lookup the ITT document, fill in the Qty Picked, select specific Lot Numbers, and “Ship” the ITT. See Consignment Shipping for more detail.

Selling Consignment Inventory

Selling Consignment Inventory will begin by creating a regular Sales Order.

The Default Site ID must be set to the Consignment Site. This will activate the new functionality described below (see Consignment Sales Order below), which will ensure that only inventory on consignment to the selected Customer can be sold to that customer.

Returning Consignment Inventory

See Consignment Returns below for more detail. A new window will be created that will allow a user to select Items and Lot Numbers to return. It will create a regular inventory transfer, add the inventory to the transfer, and post it.

Setup

Navigation: Tools >> Setup >> Sales >> Consignment

Field Function
Consignment Site Enter the Site ID of the Consignment Site

The Consignment Site is used in the In Transit Transfer window, and Sales Transaction Entry, to identify when the special consignment functionality should be enabled.

Consignment Orders

Navigation: Transactions >> Inventory >> In Transit Transfer Entry

When the TO SITE is set to the Consignment Site, it will activate “consignment order” enhancements on this window.

The Tracking Reference field label will be changed to “Customer Number”. The field will only allow entry of valid Customer Numbers.

CTRL+Z will open the Customer Lookup window. Selecting a Customer Number will return it to the Tracking Reference field, and fill the Customer Name field. Likewise, if a Customer Number if typed into the field, when the cursor leaves the field the entered value will be validated to ensure it is a valid Customer Number, and if so, the Customer Name will be populated.

The Address fields will fill with the Customer’s primary Ship To Address.

CTRL+Q will open the Customer Address Lookup window. A valid Customer Number must already exist in the Tracking Reference field. Selecting a Customer Address will populate the Address fields.

Sales will enter the Item(s) to be transferred to the Consignment site. Qty Picked normally defaults to the Qty Ordered, but with the Consignment Enhancement enabled, it will default to zero. Shipping will fill in Qty Picked.

See Consignment Shipping below for more detail.

When Sales is done entering the Consignment Order, they will print the Picking Ticket:

This report can be modified as needed to ACME Co’s requirements. Modifying the Picking Ticket is not included in this estimate.

Consignment Shipping

A SmartList will be created for Shipping that shows new ITTs that need to be picked and shipped. They will select documents from the SmartList, which will open the document in the ITT Entry window.

Shipping will enter the Qty Picked and make Lot Number selections. They will click the SHIP button to “post” the transaction. Clicking the SHIP button performs the inventory transfer, moving the selected inventory into the Consignment location.

Creating this SmartList is not included in the estimate.

See Assumptions/Requirements for required GP setup.

Consignment Sales

Navigation: Transaction >> Sales >> Sales Transaction Entry

Selling Consignment Inventory will begin by creating a regular Sales Order.

The Default Site ID must be set to the Consignment Site. This will activate the new functionality which will ensure that only inventory on consignment to the selected Customer can be sold to that customer.

  • The Item Lookup will show only Items on consignment to that customer
  • The Item Number field will only allow Item Numbers to be entered that are on consignment to the customer. This applies to Sales Transaction Entry, and Sales Item Detail Entry.
  • The Sales Lot Number Entry window will only show/allow Lot Number on consignment for that customer. This applies to the Lot Number field, Lot Number Lookup, and the “Available Lots” scrolling window.

See Assumptions/Requirements for required GP setup.

When a specific Lot Number is added to an Order, a link between the Sales Line and the Consignment Lot will be recorded in the SVC_Transfer_Line_Serial_Lot_HIST table (SVC30702). The Sales Order Number will be stored in the Call Number field, and the Sales Line in the Equipment Line field. This will allow:

  • Linking a consignment Lot Number to the Sales Order on which it was sold (or is allocated to be sold)
  • Reporting on which consignment inventory is available to be sold

If the Order is deleted or voided, or inventory unallocated, the changes will be updated in the SVC30702 table. Aside from the special functionality described above, entering a Sales Order will behave like any other Sales Order.

Consignment Returns

A SmartList will be created that shows “unsold” consignment inventory. It will contain the Customer Number, Customer Name, Item Number, Lot Number, and Transaction Date of the Consignment Order (ITT) which put the unit into consignment.

From the SmartList the user will be able to double-click on a line, which will open the Consignment Return Entry window:

Note: the SmartList is used to locate an ITT which placed the inventory into consignment. Selecting a line does not auto-select the inventory in the Consignment Return Entry window.

The process of marking inventory for return is:

  • Click on an Item Number in the left-hand scrolling window to select the item.
  • The Lots window will fill with Lot number that have not been sold (or are not allocated to an unposted sales order).
  • Mark one or more Lot Number.
  • Change Item Numbers, if needed, and repeat the process.
  • Enter the Return To Site (this is the main inventory location)
  • Click POST

Clicking POST will ask the user if they are ready to return the inventory. If YES, it will create and post a regular Inventory Transfer with the selected inventory, transferring it from the Consignment Site into the selected Return To Site.

When a Lot Number is added to the Inventory Transfer, a link between the IV Transfer Line and the Consignment Lot will be recorded in the SVC_Transfer_Line_Serial_Lot_HIST table (SVC30702). The IV Transfer Number will be stored in the Call Number field, and the Line Number in the Equipment Line field. This will allow:

  • Linking a consignment Lot Number to the Transfer on which it was returned to inventory
  • Reporting on which consignment inventory is available. Any Lots in SVC30702 what have a document number recorded in the Call Number field have either been sold or returned to stock.