Receiving Consignment Stock

SUGGESTED

Hi, 

We have a supplier who will ship us certain amounts of inventory for us to hold as consignment. Sometimes, they request that we use the material to produce a finished good for them. We're wondering if there is a better way to handle this than what we're doing now: 

  1. Issue PO for Product "Raw Material-Consignment" at 0$
  2. Receive the material into stock when it arrives physically
  3. If we need to consume the material, we misc. issue the "Raw Material-Consignment" stock out,
  4. Then, we create a PO at the actual price amount for the material cost, and receive in the actual product number "Raw Material" which is listed on our BOMs
  5. The material can then be consumed as normal

I worry about the traceability and multiple product numbers being in play with the current strategy. 

Any help is appreciated. 

Thank you. 

  • 0
    SUGGESTED

    Try creating a 'consignment' site for the product and receive into that site at zero value (product site to allow cost at nil value). When it needs to be consumed, intersite transfer into the required site (where it is costed) at required price via intersite Po. 

  • 0
    SUGGESTED

    I'd like to suggest using a dock location to handle consignment stock:
    1- You raise the PO on the RAW material product code (with the actual price)
    2- You receive the Raw material on the actual stock site but on a dock location.
       * You can change the auto journal to exclude this dock location from the stock interface posting -> hence this stock has no value if this is not officially yours yet
       * It possible to set Dock location stock cannot be used nor allocated. Yet, it would be considered as stock available when using reordering point and MRP
    3- Before the consumption, you run the storage plan to place the exact quantity you need into a 'normal' location. From now on the stock and purchase flow are standard ones.
    Note: the best is that after the storage plan, the receipt transaction is updated with the new location which enable the posting of this stock into your accounting!