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MFG/PRO eB2 User Guide Volume 2B: Distribution

1. _ Transfer ownership in this site O Q The value you specify for a site determines the default value for new locations created in the site This default applies both to locations created in Location Maintenance 1 1 18 and any locations created by the system when Automatic Locations is Yes You can modify the default in Location Maintenance as needed The same field exists in Location Maintenance At the location level this field has the following effect No Inventory received into the location retains its consigned status Yes Receiving inventory into the location initiates a transfer of ownership usage To track the ownership change RCT PO and CN ISS transactions occur in addition to the inventory transfer and receipt The supplier can now invoice you for the inventory and GL accounts are updated When the Supplier Consignment Inventory module is not active the Transfer Ownership field is disabled Transfer of ownership occurs automatically when consigned inventory is issued to work orders sales orders or final assembly orders and when unplanned issues occur Ownership transfer is optional only during inventory transfers and receipts Note Distribution order issues are a type of transfer Fig 2 10 Transferring Ownership in Site Maintenance 1 1 13 gt See Using Supplier Consigned Inventory on page 70 FA QAD 64 MFG PRO eB2 User Guide Distribution FAQAD Managing Consigned In
2. Item Number To ABC Class tof x Starting Tag Number 603 99999397 Tags Available Tags include Include Zero Quantity supplier Include Negative Quantity 0 Customer Consigned Exclude P consigned E Supplier Consigned Include P inventory Sort Option 1_ 1 Item Site Location Lot Serial Site Location Item Lot Serial 3 Item Lot Serial Site Location When you exclude consigned inventory any inventory adjustments affect non consigned inventory only If you choose to include consigned inventory or do a count of consigned inventory only the system uses special transactions when adjusting inventory downward These transactions occur in Cycle Count Results Entry 3 14 and Inventory Balance Update 3 16 21 When consigned and non consigned supplier inventory are combined in a location the system checks the value of Use Consigned First in Supplier Consignment Control to determine how to manage adjustments Downward adjustments to supplier consigned inventory create the standard CYC CNT or TAG CNT transaction followed by RCT PO and Supplier Consignment Inventory 79 CN ISS transactions to track the inventory changes and transfer ownership of material The various possibilities are shown in Table 2 3 consigned Option Entered Results Action Transactions Shortage Shortage is reduction CYC CNT or TAG CNT Only consigned of consigned RCT PO CN ISS inventory
3. i Invoice Consumption y TA Consumption Manufacturing 2 v Accounts po qi Optional EDI Transmission Receivable Creating a Sales Order A contract is created between a supplier and a customer that dictates the items to be sold on consignment step 1 in Figure 1 1 The contract is either a discrete sales order or a scheduled sales order It includes clauses on deferring liability The contract may also include a maximum number FA QAD 10 MFG PRO eB2 User Guide Distribution FAQAD of aging days that a customer is permitted to hold items without liability of payment This ensures that inventory will be consumed in a timely manner Allocating and Shipping Inventory Inventory is allocated to the sales order by either general or detail allocations This is standard MFG PRO processing Inventory is packed and shipped to the customer according to the requirement dates times and quantities Traditional shipping documents are generated and advance ship notice ASN information is transferred to the customer as required step 2 in Figure 1 1 The consigned inventory is not yet available to be invoiced and must still be tracked until the customer has consumed it Physically the shipped inventory has left the manufacturing facility The inventory is still tracked as either being in transit or residing at a customer s consignment location step 3 in Figure 1 1 Tracking the Inventory The shipped inventory arrives at
4. Confirm Shipper Process consigned inventory and pending consumption Consume Generate pending invoice _ 1 Unconsume J J Consigned Inventory e Post invoice Pay invoice FAQAD Customer Consignment Inventory 13 Planning and Setup Before using the Customer Consignment Inventory module you must set up different kinds of data e Base data standard to MFG PRO such as items addresses and GL accounts These activities are not discussed in this chapter e Base data specific to the Customer Consignment Inventory module e Control settings that determine defaults and processing options Figure 1 3 illustrates the typical work flow for setting up Customer Consignment Inventory Fig 1 3 ae Customer Caneel onsignment Inventory and a Setup FI configure control settings etup Flow Create inventory locations for consignment and associate appropriate status codes Set up consignment accounts Create control records for specific ship to item control combinations Set up product line and inventory detail accounts Activate Customer Consignment and Configure Control Settings Use Customer Consignment Control 7 18 24 to activate the Customer Consignment Inventory module All values default to Ship To Item Controls Maintenance 7 18 1 where you can modify them for specific combinations of ship to addresses and items Fig 1
5. Order 5010072 Sold To 1000C Ln Format S M Single Sales Order Line Ln Item Number Qty Ordered UM List Price Discount Net Price 2 TT S00 200 0 EA 15 00 0 0 15 00 Consignment g Desc standard clip assemb 4 Loc Site T100 Disc Acct 3900 b See Managing Aged Inventory on page 40 Fig 1 11 Consignment Line Item Pop Up in Sales Order Maintenance FA QAD 26 MFG PRO eB2 User Guide Distribution Set the Consignment detail field to Yes for order lines with consigned items Other items on the sales order remain non consigned The Consignment Order Line Item Data frame lets you optionally update consignment values that apply only to this item Fig 1 12 Consignment Order Line Item Data in Sales Order Order O10072 Sold To 1000C Ln Format S M Single Maintenance Sales Order Line Item Number Qty Ordered UM List Price Discount Net Price TT 500 200 0 EA 15 00 0 0 15 00 Consignment Order Line Item Data Consignment Location 10000 P In Transit Location P Maximum Aging Days 90 Scheduled Order Maintenance To order consigned inventory on a scheduled sales order use Scheduled Order Maintenance 7 3 13 Fig 1 13 Consignment Field in Scheduled Order Ship From T100 Order 5010073 Ip From rder Maintenance Ship To 1000C General Components Header 7 3 13 Order Data Taxable 0 fe FOB Point ESCONDIDO Enter Yes Week Offset a Transport Days 0 00 Include Sat Sun Customer Ref
6. inventory IS Allow Tax Included Discount Tax at Invoice used EC Sales List Discount Tax at Payment 0 EC Process Work Comments 0 Sales Tax Account 2400 P P Sales Tax Absorbed 5950 P CP AP Tax Account 1400 P IP AP Tax Retained 2450 P ee The Accrue Tax at Receipt setting normally determines the tax point for purchased items This can be set to accrue taxes either at receipt or at vouchering b See Using For consigned items the Accrue Tax at Usage setting provides a third a d option to accrue taxes when consigned items are used Items can be used Inventory on in a variety of ways including page 70 e Issue to a work order distribution order sales order repetitive order or configured item final assembly work order e Unplanned issue e Transfer to another location or site If Accrue Tax at Usage is No the system creates tax transactions for consigned items based on the setting of Accrue Tax at Receipt FAQAD Supplier Consignment Inventory 63 Update Settings for Sites and Locations When the Supplier Consignment Inventory module is active you can use the Transfer Ownership field to indicate how consigned inventory should be managed when it is transferred to a specific site Site 10000 Description Entity Default Inventory Status IP Automatic Locations Ownership Database is EMT Supplier JP External Supplier transferred Transfer Variance Acct s030 e ap for locations
7. you send ink cartridge kits with them on consignment In this kind of business scenario the vouchering of the items received from your supplier is delayed until your customer uses the items and you receive the usage information from them To manage this delay shipping the items does not create an ISS SO transaction but a CN SHIP When your customer uses the item the CN USE transaction triggers the RCT PO and CN ISS on the supplier consignment side Supplier Consignment Inventory 73 Using Customer Consignment with Kanban When you use Execute Kanban Transactions 17 22 19 1 to receive and transfer kanban controlled items three types of kanban transactions can occur purchase receipt item movement and production receipt Inventory balances are updated depending on the setting of Impact Inventory in Kanban Master Maintenance 17 22 1 When Impact Inventory is Yes for a kanban card and the items involved are consigned additional consignment transactions also occur Executing a purchase receipt transaction records a CN RCT instead of the standard PO RCT e Executing an item movement transaction creates PO RCT CN ISS transactions if the receiving location is set up for ownership transfer e Executing a production receipt transaction creates PO RCT CN ISS transactions as well as the WO ISS transaction Making Inventory Adjustments Consignment Inventory Adjustment Use Consignment Inventory Adjustment 5 18 21 to manually
8. 45 for quantity available in the consigned location and books the amount as a invoicing details sale Entering a consumed quantity that is more than the available quantity generates a warning message The system reduces CN USE the consumed quantity and shows a negative quantity in the consigned location Important Do not use these three programs to return inventory because they select only available quantity If you have previously consumed all available quantity usage transactions b See Processing will never select the order line because the available quantity is zero 0 ce pene You can correct previous usage data but only if available quantity on page 39 remains FAQAD 34 MFG PRO eB2 User Guide Distribution FAQAD In an EDI environment you can import the customer s consumption information in EDI messages using Document Import 35 1 instead of entering it manually In this case the import gateway triggers consignment usage CN USE and a sales order issue ISS SO transaction If you have already created usage records manually for the same orders the system marks them so that when the customer reports that the inventory is used or consumed in an EDI message the system recognizes that it has already been booked once and it does not book it again GL Effects of Usage Consuming consigned inventory CN USE has the following GL effects e Credits SO Consigned Inventory or SO Consigned In Transit account
9. Consignment Inventory Adjustment 32 44 73 Consignment Inventory by Loc 46 Consignment Inventory by Order 46 80 Consignment Inventory Report 46 80 Consignment Inventory Transfer 29 consignment locations 17 status 17 Consignment Orders field Customer Consignment Control 14 FAQAD 82 MFG PRO eB2 User Guide Distribution purchase orders 68 sales orders 24 scheduled orders 26 Supplier Consignment Control 57 Consignment Usage Export 72 customer consignment 5 48 adjusting inventory 32 aged inventory 40 invoicing inventory 44 managing inventory 19 overview 6 reports 46 returns 39 setup 13 shipping inventory 27 transferring inventory 29 using inventory 33 Customer Consignment Control 13 Customer Sequence Schedules module 38 CYC CNT transaction 79 cycle count customer consigned inventory 42 supplier consigned inventory 77 Cycle Count Results Entry 43 78 Cycle Count Worksheet Print 42 77 E EDI ECommerce export consignment data 72 Enterprise Material Transfer EMT customer consigned inventory 11 supplier consigned inventory 54 Execute Kanban Transactions 73 l Inventory Account Maintenance 17 inventory adjustments customer consigned inventory 32 supplier consigned inventory 73 Inventory Balance Update 43 78 Inventory Detail Report 48 Inventory Status Code Maintenance 17 inventory transfer customer consigned inventory 29 Inventory Usage Create 35 Inventory Usage Report 39 47 Inventory Valuat
10. From here inventory is visible for usage and aging analysis Usage signals from the customer draw from the consignment balance in first in first out FIFO order Creating Inventory Transaction History Every inventory transaction creates a record in inventory transaction history Each record has a unique sequential transaction number and a transaction type Transactions include the following information e Transaction data Inventory data e Cost data e GL transaction data e User ID of the person entering the transaction Customer Consignment Inventory Transaction Types The transaction type code identifies the function used to initiate the inventory change Table 1 2 lists the customer consignment transaction type codes included in inventory history records with a brief description of each type and the programs that create the transactions Menu Program that Creates the Transaction Transaction Type Number Description CN ISSTR CN RCTTR 7 18 7 Consignment Inventory Transfer Transfers inventory between locations at a site Customer Consignment Inventory 21 Transaction Type Menu Number Program that Creates the Transaction Description CN USE 7 18 10 Aging Inventory Update Instead of extending the aging date of consigned inventory enter Yes in the Use field to indicate its consumption Initiates ISS SO and subsequent invoicing 7 18 13 Inventory Usage Create Indicates
11. If you do not define specific product line accounts the system uses the default GL accounts from System Account Control Customer Consignment Inventory 17 Product Line CPL Description auto support Taxable Tax Class Default Sub Account Default Cost Center Override O Override O Consignment Accounts SO Consigned In Transit Acct 9901 P SO Consigned Inventory acct 9902 P SO Consigned Offset Acct 9903 P PO Consigned Inventory atl P PO Consigned Offset act P Optionally use Inventory Account Maintenance 1 2 13 to further define GL accounts designated for consignment By setting up accounts for combinations of product line site and location you can separately track accounts for multiple sites or multiple locations within a site Inventory detail accounts default from Product Line Maintenance Often these are used to associate cost centers with different sites and locations Create Inventory Locations Use Location Maintenance 1 1 18 to create one or more consignment locations that represent areas at customer facilities Assign these locations to ship to addresses or combinations of addresses and items in Ship To Item Controls Maintenance 7 18 1 These values in turn default to orders shipped to the specified address When orders are shipped the system transfers inventory to the location representing the customer Specify an inventory status code that matches the way consigned inventory is viewed by
12. Inventory Batch Update extends aging dates only you cannot use it to transfer ownership Tracking Consigned Inventory During Inventory Counts During cycle count and physical inventory count processes you must determine procedures for managing consigned inventory Typically you exclude customer consigned inventory during a count because it is not physically present at your site Various cycle count and physical inventory programs let you manage customer consigned inventory according to your needs You can count e Only consigned inventory e Only non consigned inventory e Both consigned and non consigned inventory For example you can use consignment fields in Cycle Count Worksheet Print 3 13 to select inventory to count Customer Consignment Inventory 43 Fig 1 28 gt Count Wo Y Tracking Consigned Item Number iP I tory Usi Product Line nventory Using Cycle Count Worksheet Print 3 13 Worksheet PC ENE A Number of Items includes Sort by Item or Site Randomize Selection O customer Customer Consigned Include P Supplier Consigned Exclude P consigned Past Due Only 0 Print Quantity OH 0 2 New Page on Site Include Zero Quantity O inventory New Page on Location O Include Negative Inventory O Print Bar Code Include Phantom Items Output Batch ID oO Similarly when you use Item Tag Create 3 16 1 you can choose to update tags for only consigned only non consigned or both types of inventory Fig 1 29
13. MFG PRO Fig 2 2 Consignment Unconsume Overview Order inventory PO Return PO Return Receive inventory Negative Negative PO Receipts PO Receipts f PO Receipts H A PO Shipper Receipts PO Shipper Receipts PO Shipper Receipts Process consigned inventory and pending consumption Consume 3 1 Consigned Process voucher Inventory Pay invoice FA QAD 56 MFG PRO eB2 User Guide Distribution Planning and Setup Before using the Supplier Consignment Inventory module you must set up different kinds of data e Base data standard to MFG PRO such as items addresses and general ledger GL accounts These activities are not discussed in this chapter e Base data specific to the Supplier Consignment Inventory module e Supplier consignment control settings that determine defaults and processing options Figure 2 3 illustrates the typical work flow for setting up Supplier Consignment Inventory Fig 2 3 Supplier Consignment Setup Flow Activate Supplier Consignment Inventory and configure control settings Update tax rates Update settings for sites and locations Set up consignment accounts Create control records for specific supplier item combinations Set up product line and purchasing detail accounts Update Control Settings Use Supplier Consignment Control 5 18 24 to activate
14. Maintenance 18 Ship To Item Controls Report 46 80 Site Maintenance transferring ownership 63 SO Consigned In Transit account 16 SO Consigned Inventory account 16 SO Consigned Offset account 16 supplier consignment 49 80 adjusting inventory 73 aged inventory 74 managing 64 ordering items 67 overview 50 receiving inventory 70 reports 79 returns 74 setup 56 using inventory 70 work flow 52 Supplier Consignment Control 56 Supplier Item Controls Maintenance 58 System Account Control Index 83 customer consignment accounts 16 supplier consignment accounts 59 TAG CNT transaction 79 Tax Rate Maintenance 62 Transaction Detail Inquiry 48 transaction types 64 customer consigned 20 supplier consigned 64 Transactions Detail Inquiry 22 66 transfer customer consigned inventory 29 Transfer Ownership field 63 U Usage Create Undo 38 Usage Inquiry 47 Usage Report by Order 47 Usage Report by Order with Seq 47 Vv vouchering supplier consigned inventory 54 Ww work flow customer consignment 9 supplier consignment 52 FA QAD 84 MFG PRO eB2 User Guide Distribution FAQAD
15. Maintenance for the product line site and supplier type if available Otherwise the account from Product Line Maintenance is used e Debits the PO Consigned Offset account defined in Purchasing Account Maintenance for the product line site and supplier type if available Otherwise the account from Product Line Maintenance is used Using Supplier Consigned Inventory The system records the receipt of consigned inventory with a CN RCT transaction instead of a standard RCT PO The RCT PO occurs when items are used causing transfer of ownership from the supplier and making the items available for vouchering Inventory can be consumed at various points in the manufacturing process initiating the transfer of ownership Some examples include the following e Issue to a manufacturing order such as a work order repetitive order flow schedule or final assembly work order e Issue to a sales order e Backflush in a manufacturing process Supplier Consignment Inventory 71 e Manually use in a consignment aging program e Transfer to a location that is defined as initiating an ownership transfer either an inventory transfer or issue to a distribution order For inventory transfers ISS TR and issues to distribution orders ISS DO transfer of ownership depends on the value of the Transfer Ownership field associated with the receiving location When this is Yes usage transactions occur Other types of issues always transfer
16. and 3 6 13 Inventory Valuation Report Shows the value of inventory in a site by product line or item number Includes total value of each item and a grand total for the product line Options to exclude include or show only consignment shipments 1 5 22 and 3 6 14 Inventory Valuation by Location Shows the value of inventory in each location of a site by product line or item number Includes total value at each location and a grand total for the site Options to exclude include or show only consigned inventory 1 5 23 and 3 6 15 Inventory Valuation as of Date Displays the value of all items in a product line as of a user specified date Shows total inventory in each site and a grand total for product line Options to exclude include or show only consignment shipments 1 5 24 and 3 6 16 Inventory Valuation as of by Loc Shows the value of inventory in each location of a site on a user specified date Shows the total value of each location and a grand total for the site Options to exclude include or show only consignment shipments 3 21 1 Transaction Detail Inquiry Displays detailed inventory transaction history records ordered by transaction number Includes transaction types 7 3 14 Scheduled Order Inquiry Shows scheduled sales orders and consignment settings Chapter 2 Supplier Consignment Inventory The Supplier Consignment Inventory module l
17. consumption and initiates ISS SO and subsequent invoicing 7 18 14 Authorization Usage Create Indicates consumption of consigned inventory shipped based on scheduled orders referencing customer authorization Initiates ISS SO and subsequent invoicing 7 18 15 Sequenced Usage Create Indicates consumption of consigned inventory shipped based on scheduled orders referencing customer sequences Initiates ISS SO and subsequent invoicing 7 18 22 Usage Create Undo Reverses the movement of inventory out of a consigned location Reverses GL transactions created at original usage creation CN ADJ 7 18 21 Consignment Inventory Adjustment Adjusts balances of consigned inventory at selected locations Debits SO Consigned Inventory or SO Consigned In Transit accounts and credits the SO Consigned Offset account Negative adjustments credit SO Consigned Inventory and debit SO Consigned Offset accounts FAQAD 22 MFG PRO eB2 User Guide Distribution Fig 1 8 Consigned Inventory Transactions Shown in Transactions Detail Inquiry 3 21 1 FAQAD Menu Transaction Type Number Program that Creates the Transaction Description CN SHIP 7 9 5 Pre Shipper Shipper Confirm Ships inventory to a consigned location 7 9 15 Sales Order Shipment Ships inventory to a consigned location 7 9 21 Shipper Unconfirm Unconfirms an inventory shipment to a consigned l
18. depending on the location where the consigned inventory resides These accounts are defined in Inventory Account Maintenance 1 2 13 e Debits the SO Consigned Offset account Issuing the items as a sale ISS SO has the following GL effects e Credits the Inventory account defined in Inventory Account Maintenance 1 2 13 for the product line shipment site and location e Debits the COGS Material COGS Burden COGS Labor COGS Overhead and COGS Subcontract accounts defined in Sales Account Maintenance 1 2 17 for the product line shipment site sales channel and customer type Note If Sum LL Costs Into Matl Cost is Yes in Inventory Control 3 24 all lower level manufacturing costs are posted to the COGS Material account GL transactions are stored in the unposted transaction table until they are posted Review unposted transactions with Unposted Transaction Inquiry 25 13 13 Review and delete transactions created in modules other than GL with GL Transaction Delete Archive 36 23 2 The GL reference begins with IC Customer Consignment Inventory 35 Inventory Usage Create Use Inventory Usage Create 7 18 13 to manually enter consumption data for sales orders and scheduled orders that do not reference a shipping authorization number or a sequence number Fig 1 20 Le Inventory Usage ship to IP Create 7 18 13 Sold To 1000 c __ P Site Customer Item PO Number Sales Order Item Consume All O Sort By or
19. for transfer CN ISSTR CN RCTTR For example this program lets you move only in transit inventory to a consigned location If you need to move inventory from one location to another use this program to retain the consigned status of the inventory Use this program when you receive an acknowledgment that the consigned inventory has arrived at the customer facility For example you can use this program when you need to manually show an inventory transfer from a third party distribution warehouse to a customer facility A transfer represents the movement not use of inventory It reduces inventory quantity for items at a designated site and location and increases it at another Fig 1 15 ment Inventory Transfer Consignment a Inventory Transfer Sold To 1000c P 718 7 Ship To P Item Number IP ToL ___ P order P tol P Ship Date B mwl E Transfer Location 1P In Transit Only O ww Enter criteria for selecting consigned inventory to transfer You must enter either a ship to or sold to address You can enter a range of sites items customer POs sales orders and ship dates Transfer Location Enter the new location where you want to transfer the in transit or consigned inventory This value sets the default for all items selected for transfer You can change this for individual records as needed FA QAD 30 MFG PRO eB2 User Guide Distribution Fig 1 16 Cross Reference and From Location Details Fra
20. in inventory history records with a brief description of each type and some of the programs that create the transactions Any Supplier Consignment Inventory 65 other programs that create similar transactions ISS SO ISS WO RCT TR ISS UNP for consigned inventory would also create the special consigned transactions Menu Program that Creates the Transaction Transaction Type Number Description CN RCT 5 13 1 Purchase Order Receipts 5 5 5 11 PO Shipper Receipt 5 13 20 Receives consigned inventory into a location Credits PO Consigned Inventory debits PO Consigned Offset CN ADJ 5 18 21 Consignment Inventory Adjustment Adjusts locations quantities and other details of consigned inventory Debits or credits PO Consigned Inventory account and credits or debits PO Consigned Offset account CN ADJ RCT PO 5 18 13 Aging Inventory Update Adjusts balances of consigned inventory Instead of extending the aging date of consigned inventory enter Yes in the Use field to indicate consumption Initiates receipt transactions and subsequent vouchering ISS TR RCT TR 3 4 1 Transfer Single Item RCT PO CN ISS 3 4 2 Transfer Multiple Item 3 4 3 Transfer with Lot Serial Change 3 4 4 Batchload Transfer with Lot Serial Change Moves inventory from one location to another Note Consignment transactions occur only if Transfer Ownership is Yes for the receiving location ISS DO 12 17 21 Distribution Order Processing RCT PO CN ISS 1
21. instructions on navigating the MFG PRO Windows and character environments refer to User Guide Volume 1 Introduction For information on using MFG PRO refer to the User Guides For technical details refer to Entity Diagrams and Database Definitions For information on using features that let MFG PRO work with external applications see the External Interface Guides Each book in this set describes a separate interface such as the Warehousing application program interface API and Q LinQ the tool set for building and using data exchange tools To view documents online in PDF format see the Documents on CD and Supplemental Documents on CD The CD ROM media includes complete instructions for loading the documents on a Windows network server and making them accessible to client computers Note MFG PRO installation guides are not included on a CD Printed copies are packaged with your software Electronic copies of the latest versions are available on the QAD Web site About This Guide 3 Online Help MFG PRO has an extensive online help system Help is available for most fields found on a screen Procedure help is available for most programs that update the database Most inquiries reports and browses do not have procedure help For information on using the help system in the different MFG PRO environments refer to User Guide Volume 1 Introduction and User Guide QAD Desktop QAD Web Site QAD s Web site provides a wide v
22. modify consigned inventory information such as quantities and locations Consignment Inventory Adjustment Item Number 10 15001 Lot Serial Control Description NOMAD TM SOLAR POWEF COOLING SYSTEM Quantity 5 0 Site 15000 Unit of Measure EA Location 200 Conversion 1 0000 Lot Serial Reference Multi Entry O Unit Cost 141 16688 Total Qty 5 0 Order Po1069 Total Cost ne Receiver RC1033 Remarks Effective Date 08 29 2002 HA b See User Guide Volume 3 Manufacturing Fig 2 15 Consignment Inventory Adjustment 5 18 21 FAQAD 74 MFG PRO eB2 User Guide Distribution b See Tracking Consigned Inventory During Inventory Counts on page 77 FAQAD Purchase order and line number are required The system validates that the items on the order line were consigned A warning displays if there are no consigned items in the location specified You might use this program after doing a physical inventory to indicate that surplus items are consigned Adjustment generates records of type CN ADJ to record consignment adjustment which has the following GL effects For a positive quantity adjustment e Debits the PO Consigned Inventory account e Credits the PO Consigned Offset account For a negative quantity adjustment e Credits the PO Consigned Inventory account e Debits the PO Consigned Offset account Processing Returns Rejects and Corrections Consigned inventory is returned to the supp
23. numbers can be provided by the customer including a customer job number or customer reference number Sort By Specify the sequence in which information is to display e Authorization and item e Customer PO and item e Item and authorization e Shipper and item Sequenced Usage Create Use Sequenced Usage Create 7 18 15 to manually consume inventory on scheduled orders that include sequence data The sequence number is typically provided by the customer when you import schedules using EDI ECommerce FAQAD 38 MFG PRO eB2 User Guide Distribution Note Customer sequence numbers are available only if you use the Customer Sequence Schedules module in the PRO PLUS package Fig 1 24 Sequenced Usage Create 7 18 15 Ship To 1000C General Components Sold To site JP Customer Item p Sales order P Item Number TT 500 P Customer jobs sid Customer Sequences OOOO O Customer Reference 2 Consume All 7 Sort By jobseq Cust Job and Sequence O Q Sort By Specify the sequence in which information is to display e Customer job and sequence e Customer item and PO e PO and customer reference e PO and customer item Usage Create Undo Ifyou make a mistake when entering consumption data use Usage Create Undo 7 18 22 to reverse a transaction This program creates the same transactions as Inventory Usage Create but with negative quantities Fig 1 25 Usage Create Undo 7 18 22 Ship To 1000C General Component
24. or at consumption e Create a purchase order or scheduled order with both non consigned and consigned items e Manually adjust consigned inventory if needed e Include or exclude consigned inventory during physical inventory or cycle count e Export EDI transmissions to inform suppliers of item usage or create records to send manually e Retain visibility of consigned inventory information including its location status age and order details e Manage and update aging dates e Generate reports and inquiries that sort and display details according to your needs e Identify unconsumed inventory that exceeds its maximum aging date e Compare inventory received with inventory consumed Supplier Consignment Programs Table 2 1 lists programs included in Supplier Consignment Inventory Table 2 1 Menu Number Description Program Name Supplier Consignment 5 18 Supplier Consignment Inventory Inventory Programs 5 18 1 Supplier Item Controls Maintenance pocnydmt p 5 18 2 Supplier Item Controls Browse pobr014 p 5 18 6 Consignment Inventory Report ppptrp10 p 5 18 7 Consignment Inventory By Order pocnrp01 p 5 18 8 Consignment Usage Report pocnrp02 p 5 18 9 Consignment Usage Summary Report pocnrp03 p 5 18 10 Consignment Usage Export Report pocnrp04 p 5 18 13 Aging Inventory Update pocnaimt p FAQAD 52 MFG PRO eB2 User Guide Distribution Menu Number Description Program Name 5 18 14 Aging Inventory Batch Update poc
25. present at your site Various cycle count and physical inventory programs let you manage supplier consigned inventory according to your needs You can count e Only consigned inventory e Only non consigned inventory e Both consigned and non consigned inventory For example you can use consignment fields in Cycle Count Worksheet Print 3 13 to select inventory to count gt See Using Supplier Consigned Inventory on page 70 gt See User Guide Volume 6 Master Data for cycle and physical count procedures FA QAD 78 MFG PRO eB2 User Guide Distribution Fig 2 18 Tracking Consigned Inventory Using Cycle Count Worksheet Print 3 13 Fig 2 19 Tracking Consigned Inventory Using Item Tag Create 3 16 1 AQAD Cycle Count W Prod Line P Item Type P site 1P a Last Count ae E ABC Class _ Worksheet Number of Items 99999999 albe el includes Sort by Item or Site ltem Randomize Selection supplier Customer Consigned Exclude 1P Supplier Consigned lInclude P consi Past Due Only Print Quantity OH 7 gned New Page on Site Include Zero Quantity 0 inventory New Page on Location 0 Print Bar Code Include Negative Quantity 0 Include Phantom Items 0 Output Batch ID O Q Similarly when you use Item Tag Create 3 16 1 you can choose to update tags for only consigned only non consigned or both types of inventory To Location To Product Line To
26. required An extension automatically updates each shipment You can also optionally record inventory usage with this program In this case the same inventory and GL transactions occur as in other usage programs gt See GL Effects of Usage on page 34 Fig 1 27 Aging Inventory Update 7 18 10 Cross Reference Details Order Line S010072 1 010072 2 010072 3 Age Date New Date 09 07 2002 11 06 2002 02 04 2003 Max Age Date 09 07 2002 New Date 10 07 02 010072 1 Qty 1 500 0 Days 0 FAQAD 42 MFG PRO eB2 User Guide Distribution See Using Customer Consigned Inventory on page 33 b See User Guide Volume 6 Master Data for cycle and physical count procedures FAQAD The values in Aging Inventory Update default from shipment data You can update these fields in the Max Age Date frame Use Enter Yes to designate this inventory as used Entering Yes generates a shipment transaction ISS SO The system debits the Cost of Goods Sold COGS accounts and credits the Inventory account New Date Enter the new maximum age date you want to assign to this inventory unless you enter the number of days you want to add to the age date Days If New Date is blank enter the number of days you want to add to the maximum age date The system automatically calculates the new date Use Aging Inventory Batch Update 7 18 11 to revise aging dates for a group of sales orders Aging
27. specify a supplier item on an order line the system converts it to the internal item before looking for defaults defined with this program Set Up Consignment Accounts Use three programs to identify accounts for tracking supplier consignment inventory e System Account Control 36 1 e Product Line Maintenance 1 2 1 e Purchasing Account Maintenance 1 2 5 Create accounts first in Account Code Maintenance 25 3 13 Use System Account Control to set up defaults Codes entered in System Account Control default to Product Line Maintenance Product Line Maintenance accounts default to Purchasing Account Maintenance Note One of the Consignment Inventory modules must be activated to access the Consignment Accounts frame AQAD 60 MFG PRO eB2 User Guide Distribution Fig 2 6 System Account Control 36 1 gt See Set Up Consignment Accounts on page 15 FAQAD Service Accounts Service Labor 6550 Service Overhead 6491 Service Expense 7400 Expense Due 7410 Service Returns 5053 Deferred Revenue 3000 Accrued Revenue 3000 Consignment Accounts Supplier SO Consigned In Transit Acct P Consignment SO Consigned Inventory Acct P Inventory 5O Consigned offset aal P PO Consigned Inventory acct h102 P module fields L po Consigned Offset Acct l1511_ P PO Consigned Inventory Acct Enter the GL account sub account and cost center codes used to track consigned inventory that has been received by
28. the quantity consumed No A replenishment line is not added to the required ship schedule New schedules are determined by using Required Ship Schedule Update 7 5 3 You can indicate for each line whether it is consigned If it is the Consignment Order Line Item Data frame displays for input of line item values This contains the same fields as those illustrated in Figure 1 14 Shipping Consigned Inventory In standard MFG PRO inventory is allocated reserved to a sales order either by general or detail allocations Shipping consigned inventory uses the same process as shipping See User Guide non consigned inventory Inventory is allocated to an order either by eas general or detail allocations Shippers can be created or standard sales FAQAD 28 MFG PRO eB2 User Guide Distribution See Processing Returns Rejects and Corrections on page 39 FAQAD order shipments can be used The difference between shipping consigned and non consigned inventory is in the booking of transaction history and accounting Non consigned items are shipped to the customer using the traditional ISS SO inventory transaction Shipping an order updates the quantity available to invoice In contrast you own consigned inventory until the customer notifies you that it is consumed To defer the transfer of ownership the shipment is considered an inventory transfer and uses consigned transaction types Instead of an ISS SO a c
29. 1 7 18 22 7 18 24 Aging Inventory Report by Part Aging Inventory by Order with Sequence Inventory Usage Report Authorization Usage Report Sequenced Usage Report Usage Report by Order Usage Report by Order with Sequence Consignment Inventory Transfer Aging Inventory Update Aging Inventory Batch Update Inventory Usage Create Authorization Usage Create Sequenced Usage Create Usage Inquiry Authorization Usage Inquiry Sequenced Usage Inquiry Consignment Inventory Adjustment Usage Create Undo Customer Consignment Control socnairl p socnrp07 p socnrp04 p socnrp09 p socnrp08 p socnrp02 p socnrp10 p socnxfer p socnaimt p socnaiup p socnuac p socnuac3 p socnuacs p socnuiq p socnuaiq2 p socnusiq p socnadj p socnundo p socncpm p Customer Consignment Inventory 9 Customer Consignment Inventory Business Work Flow Figure 1 1 shows the complete consignment inventory work flow beginning with the contract and ending with accounts receivable Fig 1 1 Consignment as RE 4 Inventory Business N N Flow Ne DY Inventory Contract Distribution E aa Warehouse A O P i nventory Warehouse O i i as ey ae erorraree mem triers 4 Delivery HD Mor oo ooo Sniping n In Transi NSA SAET eaey i Os e E EEEE N a H Inventory Ne Ri SA O D a N D lt
30. 2 17 22 Distribution Order Shipments Note Consignment transactions occur only if Transfer Ownership is Yes for the receiving location ISS WO 16 10 Work Order Component Issue RCT PO CN ISS 16 12 Work Order Receipt Backflush 16 19 Work Order Operation Backflush 17 21 7 Flow Schedule Receipts 17 22 19 1 Execute Kanban Transactions 18 22 13 Backflush Transaction Table 2 2 Consignment Transaction Types FAQAD 66 MFG PRO eB2 User Guide Distribution Menu Program that Creates the Transaction Transaction Type Number Description ISS SO 7 9 5 Pre Shipper Shipper Confirm RCT PO CN ISS LOT Pre Shipper Shipper Auto Confirm 7 9 15 Sales Order Shipments 11 11 6 Material Order Shipments ISS FAS 8 13 Sales Order Release to Work Order RCT PO CN ISS ISS UNP 3 7 Issues Unplanned RCT PO CN ISS CN ISS Credits PO Consigned Offset debits PO Consigned Inventory Reviewing Transaction History Use Transactions Detail Inquiry 3 21 1 to display detailed inventory transaction history records sorted by transaction number Enter the transaction number to display all the information about that transaction Figure 2 11 shows the details about transaction 2072 Fig 2 11 Consigned t iiti Invento ae Trans 2072 Output terminal P Shown in Transactions Detail Trans 2072 Order 1001 RC1085 Inquiry 3 21 1 Associated _ Trans Type CN RCT Revision 0 i Date 09 04 2002 Item Number TT 500 tran
31. 4 Customer Consignment Using Consignment Inventory Control 7 1 8 24 Consignment Orders 7 Consignment Location 1000c P In Transit Location 1P Maximum Aging Days la5 Automatic Replenishment O FA QAD 14 MFG PRO eB2 User Guide Distribution FAQAD Using Consignment Inventory Use this field to activate the Customer Consignment Inventory module The default is No No Standard sales order programs display The system bypasses all consignment screens Yes The Customer Consignment Inventory module is active You can use Customer Consignment Inventory programs Once you have activated the module created consigned items or performed transactions entering No to deactivate the module displays a warning message Unless all consigned items are consumed the system warns you that non invoiced consigned items exist and prompts you to confirm your action Consignment Orders Specify the default value for the Consignment Orders field in the header of new sales and scheduled orders No Enter No if the majority of shipments are standard sales orders Yes The Consignment Orders field on the header of all new sales orders and scheduled orders is Yes This is turn sets the Consignment field on the order line to Yes by default In either case you can combine lines for both consigned and non consigned inventory on one order The value defined here is used on new orders only if the system does not find a more spec
32. Fax 805 684 1890 http www qad com Contents About THIS GUIGE 2 2 o566cdrscdseccdsdushicesdess decueeseesa 1 Other MFG PRO Documentation 00 0 cece eee eee 2 Online Help 223 oct eener oot hese etd kao OE oki ete bin cha kein 3 QAD WebSite neesate Sivan ld Alisa Sah bls Betis Gah ats Apa Reh whic deh wre Ae 3 CONVENUONS 64 nits Hind daa iced etn tae eed hea Ra E tae bade t 4 Chapter1 Customer Consignment Inventory 5 Overview of Customer Consignment Inventory 00 0 0 e eee 6 Customer Consignment Programs 0 00 e cece eee eee 7 Customer Consignment Inventory Business Work Flow 0 005 9 Creating a Sales Order 2 ketenes 9 Allocating and Shipping Inventory 2 0 eee eee 10 Tracking the Inventory 20 0c ce cece eee n nee 10 Consuming the Inventory 0 cece enn ene 10 Invoicing the Inventory 0 0 cece cette nee 11 Using Customer Consignment Inventory with EMT 11 Consignment Process Summary 00000 cece eee neces 12 Planning and Setup eocen eeren eR baleen ih ha ele hea seek han elke 13 Activate Customer Consignment and Configure Control Settings 13 Set Up Consignment Accounts 000 cee eee eens 15 Set Up Product Line and Inventory Detail Accounts 16 Create Inventory Locations 0 cece cece ees 17 Specify Inventory Status Codes 0 0 anann 17 Create Cont
33. Industry specific QAD SOLUTIONS Manufacturing Applications MFG PRO eB2 User Guide Volume 2B Distribution Customer Consignment Inventory Supplier Consignment Inventory FAYQAD 78 0581A MFG PRO eB2 September 2002 This document contains proprietary information that is protected by copyright No part of this document may be reproduced translated or modified without the prior written consent of QAD Inc The information contained in this document is subject to change without notice QAD Inc provides this material as is and makes no warranty of any kind expressed or implied including but not limited to the implied warranties of merchantability and fitness for a particular purpose QAD Inc shall not be liable for errors contained herein or for incidental or consequential damages including lost profits in connection with the furnishing performance or use of this material whether based on warranty contract or other legal theory MFG PRO is a registered trademark of QAD Inc QAD QAD eQ and the QAD logo are trademarks of QAD Inc Designations used by other companies to distinguish their products are often claimed as trademarks In this document the product names appear in initial capital or all capital letters Contact the appropriate companies for more information regarding trademarks and registration Copyright 2002 by QAD Inc 78 0581A QAD Inc 6450 Via Real Carpinteria California 93013 Phone 805 684 6614
34. Is Customer Item O to create Cumulative Print Invoice History consigned Consignment 7 EDI Invoice History scheduled Bill To 10000 P Print Pack List Auto Inv Post 4 Comments orders Import Export AR site Ti00 P Sequenced 0 Chane 1P Dynamic Unpeg 0 Ship to Cum Req Cum z Entered By mat Currency USD Enter the ship from and ship to information that apply to the entire scheduled order FAQAD Customer Consignment Inventory 27 The Consignment field in the Order Data frame functions the same way as the field in Sales Order Maintenance Fig 1 14 Consignment Order Data Frame in Ship From T100 Order 5010073 Scheduled Order Ship To 1000C General Components Maintenance Header Consignment Order Data Consignment Location 1 Automatic Replenishment la In Transit Location p Maximum Aging Days 2o O Q The first three fields in the Consignment Order Data frame function the b See Sales Order same way as those fields in Sales Order Maintenance Automatic a on Replenishment is an additional field that applies only to scheduled orders l Automatic Replenishment Indicate whether a planned replacement line is automatically added to the active required ship schedule based on the last quantity consumed Yes A replenishment order is automatically generated when consigned items are consumed The replenishment line is added to the next open date on the schedule for a quantity matching
35. Reference Item Number Order Line Receiver Age Date New Date Details and Max TT 500 P01070 RC1086 10 19 2002 Age Date Frames TT 500C P01070 2 RC1086 12 03 2002 TT 500L Po1070 3 RC1086 09 19 2002 Max Age Date TT 500C Po1070 2 RC1086 12 03 2002 Quantity 1 500 0 Use New Date 02 01 2003 Days 0 O Q FAQAD Supplier Consignment Inventory 77 Values default from receipt data You can update the following fields in the Max Age Date frame Use Enter Yes to designate this inventory as used Entering Yes generates transaction history records of type CN ADJ to record the transfer of consigned inventory and RCT PO to record receipt from the supplier New Date Enter the new maximum age date you want to assign to this inventory unless you enter the number of calendar days you want to add to the age date Days If New Date is blank enter the number of calendar days you want to add to the maximum age date The system automatically calculates the new date Use Aging Inventory Batch Update 5 18 14 to revise aging dates for items received on multiple purchase orders When you extend the aging date the system automatically updates the age date on each PO receipt Tracking Consigned Inventory During Inventory Counts During cycle count and physical inventory count processes you must determine procedures for managing consigned inventory Typically you include supplier consigned inventory during a count because it is physically
36. Surplus Surplus is non CYC CNT or TAG CNT consigned Shortage Depends on value of If Yes Include consigned Use Consigned First CyC_CNT or TAG CNT and non consigned in Supplier RCT PO CN ISS Consignment Control If No CYC CNT or TAG CNT Surplus Surplus is non CYC CNT or TAG CNT consigned Shortage Shortage is reduction CYC CNT or TAG CNT Exclude consigned of non consigned Surplus Surplus is non CYC CNT or TAG CNT Use Consignment Inventory Adjustment 5 18 21 to associate the surplus non consigned inventory to a consignment order if needed Reporting Consignment Inventory Data The system automatically collects consigned inventory data during transactions The Supplier Consignment Inventory module provides several reports for collecting locating tracking and reviewing consigned inventory These reports are designed to clearly show data for consigned and consumed inventory A number of reports let you evaluate accounts and track inventory movement from its initial receipt to ownership transfer or consumption Table 2 4 shows reporting tools available in Supplier Consignment Inventory and a brief explanation of the data that each provides Table 2 3 Balancing Consigned Inventory After Cycle or Physical Counts gt See Using Supplier Consigned Inventory on page 70 FA QAD 80 MFG PRO eB2 User Guide Distribution Consigned inventory data is also shown in many standard MFG PRO in
37. age 27 FAQAD Generating a Usage Export Report Use Consignment Usage Export Report 5 18 10 to notify your supplier about consigned items you have used This is useful if you are not using EDI ECommerce transmissions to communicate usage records When run in update mode the system marks selected records as having been reported These records are not included the next time the report is run Use Consignment Usage Report to see all inventory that has been used regardless of whether it has been reported to the supplier Exporting EDI Files Use Consignment Usage Export 35 4 2 to notify your trading partners defined in EDI ECommerce of inventory transactions RCT PO CN ISS initiating a transfer of ownership Enter ranges of selection criteria for purchase order item number supplier site and transaction usage dates that apply to the records you want to export When your supplier imports this information they can then invoice you for the items used Using Supplier Consignment and Customer Consignment If you have both consignment modules active you can ship items received from a supplier on consignment to one of your customers to be kept on consignment at the customer facility This type of consignment activity is called a pass through Example Your company manufactures printers and ships to large distributors You receive ink cartridges from one of your suppliers on consignment When you ship printers to your distributors
38. ariety of information about the company and its products You can access the Web site at http www qad com For MFG PRO users with a QAD Web account product documentation is available for viewing or downloading at http support qad com documentation You can register fora QAD Web account by accessing the Web site and clicking the Accounts link at the top of the screen Your customer ID number is required Access to certain areas is dependent on the type of agreement you have with QAD Most user documentation is available in two formats e Portable document format PDF PDF files can be downloaded from the QAD Web site to your computer You can view them with the free Adobe Acrobat Reader A link for downloading this program is also available on the QAD Web site e HTML You can view user documentation through your Web browser The documents include search tools for easily locating topics of interest Features also include an online solution database to help MFG PRO users answer questions about setting up and using the product Additionally the QAD Web site has information about training classes and other services that can help you learn about MFG PRO FA QAD 4 MFG PRO eB2 User Guide Distribution Conventions MFG PRO is available in several interfaces Desktop Web browser Windows and character To standardize presentation the documentation uses the following conventions e MFG PRO screen captures show the Desk
39. by the customer and refers to their payment number Date Enter the date the customer consumed the inventory When you press Go the system displays consigned inventory that matches your selection criteria Ship To Sold To 1000C General Components Consignment Selection Item Number Order Qty On Hand UM Usage Qty Location i 5010072 200 0 EA o0 1000C 5010072 2 500 0 EA 0 0 1000C 5010072 100 0 EA 0 0 1000C O Consignment Details Item TT 500 Site T100 Location 1000C Order S010072 Consumed Qty 0 0 UM EA PO Number Lot Serial Customer Item TT 500 Ref Multi Entry O Customer Consignment Inventory 37 In the Consignment Selection frame select items and quantities you want to designate as consumed You can select multiple items In the Consignment Details frame specify the quantity lot serial number and reference number Authorization Usage Create Use Authorization Usage Create 7 18 14 to manually consume See User Guide consigned inventory on scheduled orders that are referenced by their ees 7 customer shipping authorization number This number is typically Management provided by the customer when you import schedules using EDI ECommerce Fig 1 23 on e agn Authorization m Usage Create Ship To P 7 18 14 Sold To 100000 _ 1P Site Customer Item Purchase Order Sales Order Item Number Authorization Consume Al O Sort By itemauth Item amp Authorization Other authorization
40. ce Labor 6550 Service Overhead 6491 Service Expense 7400 Expense Due 7410 Service Returns 5053 Deferred Revenue 3000 Accrued Revenue 3000 Customer Consignment Accounts Consignment T S0 Consigned In Transit Acct 9901__ P GS Ls so consigned inventory Acct 9902 1P LP Inventory module 7 L so Consigned offset Acct 9903 P 4 P fields Po Consigned Inventory Acct P Oo P C P PO Consigned Offset acot 1P Lp n oo SO Consigned In Transit Acct Enter the general ledger GL account sub account and cost center codes used to track consigned inventory that is in transit to the customer SO Consigned Inventory Acct Enter the GL account sub account and cost center codes used to track consigned inventory that has been shipped and resides at the customer facility SO Consigned Offset Acct Enter the GL account sub account and cost center codes used to track deferred receivable amounts for consigned shipments The SO Consigned Inventory and SO Consigned Offset accounts are updated simultaneously to record consigned activity and do not affect the balance sheet The Inventory account is not updated until inventory is used by the customer The remaining account fields in this frame are used by the Supplier Consignment Inventory module Set Up Product Line and Inventory Detail Accounts Use Product Line Maintenance 1 2 1 to tailor consignment accounts for items that belong to a particular product line
41. complete the update FAQAD 32 MFG PRO eB2 User Guide Distribution gt See User Guide Volume 7 Release Management for information Fig 1 19 Consignment Inventory Adjustment 7 18 21 b See Tracking Consigned Inventory During Inventory Counts on page 42 FAQAD Imported EDI Messages When inventory arrives at the customer receiving dock some customers send an acknowledgment of receipt in electronic data interchange EDI format Using Document Import 35 1 to import an acknowledgment message has the same effect as manually transferring the consigned inventory It signals the movement of inventory from the in transit location to the consignment location identified on the sales order line No transfer of ownership occurs while the inventory is in transit or when it is received Consignment Inventory Adjustment Use Consignment Inventory Adjustment 7 18 21 to manually modify consigned inventory information such as quantities and locations Adjustment generates records of type CN ADJ to record consignment adjustment Order and line are required The system validates that the items on the order line were consigned A warning displays if non consigned items exist in the location specified Item Number TT 500C Lot Serial Control UM EA Description multifunction clip Quantity 150 site T100 P Unit of Measure EA P Location 1000c P Conversion 1 0000 Lot Serial o P Reference P Multi Entr
42. ditem Sales Order and Item Ship To This is a required field unless you enter a Sold To Enter the ship to address of the record you want to update Sold To This is a required field unless you enter a Ship To Enter the sold to address of the record you want to update Consume All Enter Yes or No to indicate whether you want to consume all the shipments that are listed If you enter Yes all items in the selection results are marked for processing Sort By Specify the sequence in which information is to display e Customer item and PO Item and sales order e PO and customer item e Sales order and item FA QAD 36 MFG PRO eB2 User Guide Distribution Fig 1 21 Customer Usage Data Frame in Inventory Usage Create Fig 1 22 Consignment Selection and Details Frames in Inventory Usage Create AQAD The Customer Usage Data frame displays Ship To Sold To 1000C Site T100 To T100 General Components Customer Item To PO Number To Sales Order To Item To Consume Al O Sort By orditem Sales Order and Item Customer Usage Data Customer Usage Reference o y O Self Bill Authorization SSS o Customer Usage Reference Enter the customer usage reference number assigned to this transaction This number is typically provided by the customer when using EDI Self Bill Authorization Enter the self billing authorization number assigned to this transaction This number is typically provided
43. e Tracking Consigned oon A Inventory Using Product Line P l Item Tag Create Item Number P 3 16 1 ABC Class Tags exclude Staring Tao Nombor Ee 99999400 Tags Available customer Include Negative Quantity consigned ges cones EEEE i upplier Consigned Exclude inventory Sort Option 1 1 Item Site Location Lot Serial 2 Site Location Item Lot Serial Item Lot Serial Site Location When you exclude consigned inventory or include it with non consigned inventory any adjustments required by the count affect non consigned inventory only If you choose to count consigned inventory only the system uses special transactions when adjusting inventory downward These transactions occur in Cycle Count Results Entry 3 14 and Inventory Balance Update 3 16 21 Downward adjustments to customer consigned inventory create the standard count transaction CYC CNT or TAG CNT and a CN CNT transaction The CN CNT transaction is used to reverse the inventory effects of the standard transaction This is followed by an ISS SO and FA QAD 44 MFG PRO eB2 User Guide Distribution Table 1 3 Balancing Consigned Inventory After Cycle or Physical Counts See Consignment Inventory Adjustment on page 32 See Set Up Consignment Accounts on page 15 FAQAD CN USE to track the inventory changes and transfer ownership of the material Whenever the system updates consigned inventory appropria
44. either case you can combine lines for both consigned and non consigned inventory on one order Note The value defined here is used on new orders only if the system does not find a more specific match in Supplier Item Controls Maintenance Maximum Aging Days Enter the maximum number of days b See Managing consigned inventory is allowed to reside at your facility ia The default value is 0 zero which indicates no scheduled aging deadline exists FA QAD 58 MFG PRO eB2 User Guide Distribution b See User Guide Volume 6 Master Data for details Fig 2 5 Supplier Item Controls Maintenance 5 18 1 FAQAD Use Consigned First When a location contains both consigned and non consigned inventory this field determines which inventory is processed first No Use non consigned inventory first Yes Use consigned inventory first Default Let the system select inventory based on the picking logic specified in Inventory Control Transfer Ownership Specify Issue Backflush Transfer of ownership consumption is allowed only at the time items are issued or backflushed No other value is currently supported Create Control Records for Specific Supplier Item Combinations Use Supplier Item Controls Maintenance 5 18 1 to define specific default values for suppliers or for combinations of suppliers and items The values entered here override the settings in Supplier Consignment Control only for the specified supplie
45. equired ship schedule based on the last quantity consumed This option is for scheduled orders only Yes A replenishment order is automatically generated when items are consumed The replenishment line is added to the next open date on the schedule for a quantity matching the quantity consumed No A replenishment line is not added to the required ship schedule New schedules are determined by using Required Ship Schedule Update 7 5 3 Set Up Consignment Accounts Use three programs to identify accounts used to track customer consignment inventory e System Account Control 36 1 e Product Line Maintenance 1 2 1 e Inventory Account Maintenance 1 2 13 Create accounts first in Account Code Maintenance 25 3 13 Use System Account Control to set up defaults Codes entered in System Account Control default to Product Line Maintenance Product Line Maintenance accounts default to Inventory Account Maintenance 1 2 13 Note One ofthe Consignment Inventory modules must be active to See page 13 access the Consignment Accounts frame FAQAD 16 MFG PRO eB2 User Guide Distribution Fig 1 5 System Account Control 36 1 Tip If you want to reflect the shipment of consigned inventory in your Inventory account set the offset account to the Inventory account gt See Invoicing Consigned Shipments on page 44 See Set Up Consignment Accounts on page 59 FAQAD Service Accounts Servi
46. es in the Supplier 5 18 2 Consignment Inventory Module 5 18 6 5 18 7 5 18 8 5 18 9 5 18 10 5 18 15 5 18 16 Aging Inventory by Part Displays inventory quantities and aging dates by item number FAQAD Numerics 1 2 5 61 5 13 1 70 5 18 1 58 5 18 13 76 5 18 14 77 5 18 15 75 5 18 16 76 5 18 21 73 5 18 24 56 7 18 1 18 7 18 4 7 40 7 18 7 29 7 18 10 41 7 18 11 42 7 18 13 35 7 18 14 37 7 18 15 37 7 18 21 32 7 18 22 38 7 18 24 13 17 22 19 1 73 35 4 2 72 A accounts customer consignment 15 product line customer consignment 16 supplier consignment 60 supplier consignment 59 Accrue Tax at Receipt 62 Accrue Tax at Usage field 62 adjustments customer consigned inventory 32 supplier consigned inventory 73 aged inventory customer consignment 40 Index supplier consignment 74 Aging Inv by Order with Seq 47 Aging Inventory Batch Update 42 77 Aging Inventory by Order with Sequence 41 Aging Inventory by Part 47 80 Aging Inventory Report by Order 40 47 75 80 Aging Inventory Report by Part 41 76 Aging Inventory Update 41 76 Authorization Usage Create 37 Authorization Usage Inquiry 47 Authorization Usage Report 47 Auto Invoice field 45 automatic replenishment 27 B batch numbers 39 Cc CN ADJ 21 32 65 CN CNT 22 43 CN ISS 65 CN ISSTR CN RCTTR 20 29 CN RCT 65 CN SHIP 22 28 CN USE 21 34 65 Consignment by Order with Sequence 46 consignment control settings customer 13 supplier 56
47. ets you plan order receive stock track and report supplier consigned inventory using an automated system that reconciles inventories between suppliers and customers Vouchering and accounts payable AP transactions are deferred until the inventory is used Customer use includes transfer shipping manufacturing or distribution to its own customers This chapter describes how to set up and manage consigned inventory It also gives an overview of the reporting tools available for reviewing and tracking consignment activity Overview of Supplier Consignment Inventory 50 Planning and Setup 56 Managing Consigned Inventory 64 Reporting Consignment Inventory Data 79 50 MFG PRO eB2 User Guide Distribution FAQAD Overview of Supplier Consignment Inventory The Supplier Consignment Inventory module lets you plan order receive stock track and report supplier consigned material while at the same time deferring vouchering and accounts payable AP transactions A company using consigned inventory pays for only what they use not for what they receive The module extends the purchase order process by providing new transactions to receive material and identify it as consigned These transactions also delay the standard AP process until material is consumed but allow the consigned items to be visible for planning When items are consumed such as in a manufacturing process the receiver becomes available for vouchering When consump
48. g an automated system that reconciles inventories between suppliers and customers Invoicing and AR transactions are deferred until the inventory is used by the customer This chapter describes how to set up and manage consigned inventory It also gives an overview of the reporting tools available for reviewing and tracking consignment activity Overview of Customer Consignment Inventory 6 Customer Consignment Inventory Business Work Flow 9 Planning and Setup 13 Managing Consigned Inventory 19 Invoicing Consigned Shipments 44 Reporting Consignment Inventory Data 46 6 MFG PRO eB2 User Guide Distribution FAQAD Overview of Customer Consignment Inventory The Customer Consignment Inventory module lets you plan order ship track and report customer consigned inventory The module extends the sales order process by providing transactions to ship inventory and identify it as in transit or consigned These transactions also delay the standard accounts receivable AR booking process until inventory is consumed When the customer notifies the supplier of usage standard invoice transactions occur Customer Consignment Inventory lets suppliers continue to track inventory even after it has been shipped and while it resides at the customer facility This method requires the customer to notify the supplier that inventory has been used which completes the transfer of ownership Using consigned inventory eliminates the need for the sup
49. he consignment purchase order line data in Purchase Order Maintenance 5 7 or Scheduled Order Maintenance 5 5 1 13 The calculated maximum aging date for each shipment is shown in various aging reports Identifying Aged Inventory Use Aging Inventory Report by Order 5 18 15 to determine how long unused inventory has been consigned for ranges of PO or scheduled order numbers You can make daily weekly or monthly determinations for six periods such as six calendar weeks AQAD 76 MFG PRO eB2 User Guide Distribution Fig 2 16 Aging Inventory Report by Order 5 18 15 Start Date 08 08 2002 Sold To 10000_ 1P Ship To 1P Ship From 1P Item Number o o P PONumber IP Sales order P Interval Week P Intervals Per Column Details O Output PAGE Batch ID O Q Use Aging Inventory Report by Part 5 18 16 to identify consigned inventory by item number Extending the Aging Date Use Aging Inventory Update 5 18 13 to extend the allowed time of consignment by setting a new aging date or adding days to the existing date You can extend the maximum aging date as many times as required An extension automatically updates each purchase order receipt Enter selection criteria in the first frame The system displays matching order lines in the Cross Reference Details frame Select a record for update and modify it as required in the Max Age Date frame Fig 2 17 Aging Inventory Update 5 18 13 Cross Reference Details Cross
50. ific match in Ship To Item Controls Maintenance Consignment Location Enter the location representing consigned inventory that resides at a customer facility In Transit Location Optionally enter the location that represents consigned inventory that is in transit between you and your customer When you enter a value for a consigned location but not for an in transit location inventory ready for shipping is transferred from the inventory location directly to the location representing the customer facility When you enter an in transit value inventory is transferred from the inventory stocking location to the in transit location Enter only valid locations set up in Location Maintenance 1 1 18 Customer Consignment Inventory 15 Important Assign in transit and consignment locations an inventory status code with Nettable set to No Otherwise MRP considers items in these locations as available to net against open requirements This understates real demand Do not use locations defined for customer reserved inventory since this may prevent shipping from occurring Maximum Aging Days Enter the maximum number of days b See Managing consigned inventory is allowed to be in transit to a customer facility aero aad or remain there after shipment The default value is 0 zero which indicates there is no scheduled aging deadline Automatic Replenishment Indicate whether a planned replacement line is automatically added to the active r
51. igned inventory items sorted by site and location 7 18 4 3 Consignment Inventory by Order Displays selected consigned inventory shipments sorted by sales order Can display with or without quantities and sorted by 1 Ship from customer ship to order item PO or 2 Ship from item customer ship to order PO 7 18 4 4 Consignment by Order with Displays selected consigned inventory Sequence shipments by sales order and customer sequence Can display with or without shipment ID and quantities and sorted by 1 Ship from customer ship to order item PO or 2 Ship from item customer ship to order PO Customer Consignment Inventory 47 Menu Report Function Purpose 7 18 4 7 Aging Inventory Report by Order Displays inventory quantities and aging dates by sales order 7 18 4 8 Aging Inventory by Part Displays inventory quantities and aging dates by item number 7 18 4 9 Aging Inv by Order with Seq Displays inventory quantities and aging dates by scheduled order with sequence numbers 7 18 4 13 Inventory Usage Report Displays inventory usage by selected criteria including ship from sold to ship to item PO SO date used ID batch number and customer reference 7 18 4 14 Authorization Usage Report Displays inventory usage by selected criteria and shipping authorization 7 18 4 15 Sequenced Usage Report Displays inven
52. ion as of by Loc 48 Inventory Valuation as of Date 48 Inventory Valuation by Location 48 Inventory Valuation Report 48 invoicing customer consigned inventory 44 FAQAD Item Tag Create 43 78 K kanban transactions item movement 73 production receipt 73 purchase receipt 73 L Location Maintenance consignment locations 17 transferring ownership 63 M maximum aging date calculation customer 40 calculation supplier 75 maximum aging days Customer Consignment Control 15 purchase order 69 sales order 25 Supplier Consignment Control 57 menu customer consignment 7 supplier consignment 51 P physical inventory customer consigned inventory 43 supplier consigned inventory 77 PO Shipper Receipts 70 Pre Shipper Shipper Confirm 28 39 Product Line Maintenance customer consignment accounts 16 supplier consignment accounts 60 Purchase Order Maintenance supplier consignment 67 Purchase Order Receipts 70 Purchasing Account Maintenance 61 R replenishment automatic 27 reports customer consignment 46 supplier consignment 79 S Sales Order Maintenance Consignment field 24 customer consignment fields 24 Sales Order Shipments 28 39 Scheduled Order Inquiry 48 Scheduled Order Maintenance customer consignment fields 26 self billing consigned inventory 45 Sequenced Usage Create 37 Sequenced Usage Inquiry 47 Sequenced Usage Report 47 Shipper Unconfirm 39 shipping customer consigned inventory 27 Ship To Item Controls
53. its destination either the customer s receiving dock or a distribution warehouse in close proximity to the customer step 4 in Figure 1 1 When the customer receives the inventory and notifies the supplier of its receipt the inventory is then transferred from in transit to consignment Likewise when an external warehouse sends inventory to the customer it sends the supplier the information to move the inventory from its in transit location to its consignment location Consuming the Inventory The consigned inventory is eventually issued from stock backflushed or otherwise consumed by the customer step 5 in Figure 1 1 This consumption activity triggers the transfer of ownership and must be logged for the customer to relay the information to the supplier Customer Consignment Inventory 11 Invoicing the Inventory The customer relates the consumption activity to the supplier which makes the consumed inventory available to be invoiced step 6 in Figure 1 1 Once the invoice is generated standard invoice printing and posting are performed using accounts receivable AR functions step 7 in Figure 1 1 Either the invoice is sent to the customer or payments are received for consumed inventory using the optional PRO PLUS self billing functions Inventory records are automatically updated and can be used to verify transactions in a variety of ways to define inventory balances and locations Using Customer Consignment Inventory
54. iving process step 2 in Figure 2 1 The inventory is immediately nettable to MRP and available for allocation according to the inventory status of the stock location Cumulative receipt quantities are automatically updated for scheduled purchase orders Because the consigned inventory is not yet available for vouchering any voucher process selecting open receipts bypasses receipts of consigned inventory until it is consumed Only shipping related charges trailer and freight can be vouchered at the time of receipt Consuming the Inventory The consigned inventory is eventually consumed by the customer step 3 in Figure 2 1 Consumption occurs in the following ways e Issues to a manufacturing order such as a work order repetitive order See Using or flow schedule Supplier Consigned e Unplanned issues Inventory on page 70 e Issues to a configured item final assembly order e Transfers to another location within a site Shipment of consigned parts sales order shipments or shipper confirm e Manual consumption of aged inventory FAQAD 54 MFG PRO eB2 User Guide Distribution b See User Guide Volume 4A Financials for details on AP processing gt See User Guide Volume 2A Distribution for information on EMT FAQAD Consumption activity is logged step 4 in Figure 2 1 for audit purposes and for batch processing When reported to the supplier step 5 in Figure 2 1 it triggers the transfer of liabi
55. lier using standard MFG PRO programs e Purchase Order Returns 5 13 7 e Purchase Order Receipts 5 13 1 e PO Shipper Receipt 5 13 20 with a negative line item quantity No transfer of ownership occurs during inventory returns since the supplier already owns the material Managing Aged Inventory In the Supplier Consignment Inventory module you can track inventory by receipt date or by how long it has been in a consignment location By assigning maximum aging days to the purchase order line you can e Identify inventory on a particular purchase order receipt that exceeds the maximum aging date without being consumed Supplier Consignment Inventory 75 e Extend the aging date by number of days or date on items received on individual or multiple purchase orders e Transfer ownership of the consigned inventory from a supplier to yourself When you have not consumed or returned consigned inventory by the maximum aging date ownership can be transferred to you The transfer of ownership does not occur automatically however allowing you and your supplier to negotiate a compromise Note The aging date is separate from the expiration date To determine the date that maximum aging occurs the system uses the following calculation receipt date maximum aging days maximum aging date e Receipt date is the date recorded in Purchase Order Receipts 5 13 1 or PO Shipper Receipt 5 13 20 e Maximum aging days is taken from t
56. lity Consumption can be reported manually or using EDI ECommerce Once the inventory is consumed the receiver is available for vouchering but only for the amount consumed This can be a partial amount and may not always be the total amount on the receiver The system tracks how much of the receiver is available for vouchering A cumulative quantity is kept to track the total material consumed on the contract Vouchering the Inventory Vouchers are created either manually using functions in Accounts Payable AP or automatically by Evaluated Receipts Settlement ERS Both distinguish between receipt of consigned inventory that has been consumed and receipt of consigned inventory that has not been consumed for example when only a portion of an order has been consumed Because vouchering follows standard MFG PRO processing it is not discussed in this chapter Using Supplier Consignment Inventory with EMT Enterprise Material Transfer EMT lets you translate sales orders into purchase orders automatically and transmit those purchase orders to secondary business units SBU electronically using EDI ECommerce By definition the system creates all lines of EMT purchase orders as non consigned You cannot change the consignment setting on these system maintained orders Supplier Consignment Inventory 55 Consignment Process Summary Figure 2 2 shows the sequence in which the Supplier Consignment Inventory module processes data within
57. me maximum aging days maximum aging date e Shipment date is the date of shipping transactions created in Sales Order Shipments 7 9 15 or Pre Shipper Shipper Confirm 7 9 5 e Transit time is taken from Delivery Transit Time Maintenance 2 16 1 e Maximum aging days is taken from the consignment sales order line data 7 1 1 The calculated maximum aging date for each shipment is shown in various aging reports Identifying Aged Inventory Use Aging Inventory Report by Order 7 18 4 7 to determine how long unused inventory on specific orders has been consigned You can make daily weekly or monthly determinations for six financial periods for example six calendar weeks Start Date 08 08 2002 Sold To 1000c 1P Ship To IP Ship From A rs 4 Item Number o o P Customer Consignment Inventory 41 Fig 1 26 Aging Inventory Report by Order 7 18 4 7 Sales order P Interval Week P Intervals Per Column ff Details O Output PAGE Batch ID O Q Use Aging Inventory Report by Part 7 18 4 8 to identify consigned inventory by item number Use Aging Inventory by Order with Sequence 7 18 4 9 to identify consigned quantities on scheduled orders that include sequence numbers Extending the Aging Date Use Aging Inventory Update 7 18 10 to extend the allowed time of consignment by setting a new aging date or adding days to the existing date You can extend the maximum aging date as many times as
58. mes in Consignment Inventory Transfer Fig 1 17 From and To Location Details in Consignment Inventory Transfer AQAD If this location does not exist at the site containing the transfer from location the system creates it automatically or displays an error message depending on the setting of Automatic Locations at the current site If this is No for the site the location must be predefined using Location Maintenance Sold To 1000C Ship To ID 1 Item TT 500C Quantity 2 500 0 Cust PO S010072 zl Cross Reference Details Ship Date 08 08 2002 08 08 2002 08 08 2002 Order Line S010072 2 5010072 From Location Details Ship To 1000C Site T100 Lot Serial New Location Order 5010072 Location 1000C Ref Inventory Status N N N The system displays cross reference and from location details for the records that match your selection criteria Choose the record you want to modify You can specify a new location quantity to transfer and GL effective date in the To Location Details frame Sold To 1000C Ship To ID 1 Item TT 500C Quantity 2 500 0 Cust PO New Location TrLoc P From Location Details Ship To 1000C Site T100 Lot Serial Order 5010072 1 Location 1000C Ref Inventory Status N N N To Location Details Lot Serial Ref Inventory Status Customer Consignment Inventory 31 New Location Enter the new location where you want to transfer the in transit o
59. n also specify the maximum aging date for the line Figure 2 14 illustrates the Consignment field for a PO line Purchase Order Maintenance wwe Purchase Order 1001 Supplier 00100 Ln Format S Mi single Site Req Item Number Qty Ordered UM Unit Cost 10000 RQ10017 TT 500 50 0 EA 0 70 Qty Received 0 0 CRT Int 0 00 Consignment Qty To Rel 0 0 oo O Q Single Lot O Project Location Need Date 07 30 2002 Type Revision Sales Job Taxable 0 Status Fixed Price Inspect Req O Cmmts O Supplier Item UM Conversion 1 0000 Manufacturer Stock UM Qty 50 0 Description standard clip assembly Update Avg Last Cost Extended Net Cost 35 00 Fig 2 14 Consignment Line Item Frame in Purchase Order Maintenance FA QAD 70 MFG PRO eB2 User Guide Distribution gt See Using Supplier Consigned Inventory on page 70 FAQAD Receiving Consigned Inventory You can receive items purchased on consignment using either e Purchase Order Receipts 5 13 1 e PO Shipper Receipts 5 13 20 Instead of a standard RCT PO which makes the purchase order available for vouchering a CN RCT transaction records the receipt of consigned inventory The RCT PO occurs when items are used causing transfer of ownership from the supplier and making the items available for vouchering Receiving consigned items creates the following GL transactions e Credits the PO Consigned Inventory account defined in Purchasing Account
60. n be imported using EDI ECommerce The import self billing E gateway accepts a customer supplied payment authorization that can be referenced by a subsequent self bill payment This helps AR reconcile the payment with the actual usage record FAQAD 46 MFG PRO eB2 User Guide Distribution Table 1 4 Reports and Inquiries in the Customer Consignment Inventory Module FAQAD Reporting Consignment Inventory Data The system automatically collects consignment inventory data during transactions The Customer Consignment Inventory module provides several reports for collecting locating tracking and reviewing consigned inventory These reports are designed to clearly show consigned and shipped inventory data Consigned inventory data is shown in many standard MFG PRO reports also A number of reports and inquiries let you evaluate accounts and track inventory movement from its initial stocking location to customer consumption Table 1 4 shows reporting tools available in Customer Consignment Inventory and a brief explanation of the data that each provides Menu Report Function Purpose 7 18 2 Ship To Item Controls Report Displays defaults defined for consigned inventory items and customer ship to address or a range of customer ship to addresses 7 18 4 1 Consignment Inventory Report Displays consigned inventory items selected by inventory attributes 7 18 4 2 Consignment Inventory by Loc Displays selected cons
61. naiup p 5 18 15 Aging Inventory Report by Order pocnairp p 5 18 16 Aging Inventory Report by Part pocnairl p 5 18 21 Consignment Inventory Adjustment pocnadj p 5 18 24 Supplier Consignment Control pocnspm p Supplier Consignment Inventory Business Work Flow Figure 2 1 shows the complete consignment inventory work flow beginning with the contract and ending with accounts payable Fig 2 1 Consignment Inventory Business Flow Stockroom Contract nB j 10 3 TAN onsigned Inventory Receiving H Inventory Inventory Supplier Check C N l Voucher Invoices Accounts Payable lt Consumption Optional EDI Transmission Log Distribution FAQAD Supplier Consignment Inventory 53 Creating a Purchase Order A contract is created between a customer and a supplier that dictates the items to be sold on consignment step 1 in Figure 2 1 The contract is either a standard purchase order a blanket purchase order or a scheduled purchase order It includes clauses on deferring liability The contract may also include a maximum number of aging days that a customer is permitted to hold items without liability of payment This ensures that inventory will be consumed in a timely manner Receiving Inventory As consigned inventory arrives it is handled by the standard rece
62. ne Maintenance 1 2 1 Customer Consignment Inventory 45 When an inventory quantity is transferred to a predefined in transit or consignment location only shipment related costs are posted to the corresponding in transit account or to the consigned inventory account of the ship from location Once a usage transaction CN USE ISS SO occurs a standard invoice for the consumed inventory is available to be printed posted and sent to the customer The system generates invoice numbers If shipment related charges have previously been printed and posted only inventory charges and taxes are shown on the invoice at this time Effect of Automatic Invoicing When you want the system to automatically print and post an invoice upon processing consumption data set Auto Invoice to Yes in Container Shipper Control 7 9 24 or Customer Schedules Control 7 3 24 You can automatically post an invoice without shipment related charges in Inventory Usage Create 7 18 13 Authorization Usage Create 7 18 14 or Sequenced Usage Create 7 18 15 These use the auto invoice settings in Container Shipper Control When Auto Invoice is No you must use the standard print and post invoice programs Use Unposted Transaction Register 25 13 14 to verify GL transactions Self Billing Some customers use self bills instead of invoices Self bills are mapped See User Guide to open invoices and compared oe for detail Self bill documents ca
63. neral Components General Components 23242 E Hoover 23242 E Hoover Chicago Chicago United States of America United States of America Enter Yes if Salesperson uli Freight List 1P Consignment 7 items are Multiple Frt Min Wat Consume Forecast 7 consigned Commission 1 0 00 Freight Terms P Detail Allocations Calculate Freight 1 Allocate Days 10 Display Weights 7 Comments 0 Import Export 4 oO Consignment Enter Yes if items on this sales order are consigned This value defaults from Ship To Item Controls Maintenance if used If not used the value defaults from Customer Consignment Control Enter No if the most items on this sales order are non consigned You can designate individual items as consigned in the Consignment Order Line Item Data frame that displays later during order entry Figure 1 10 shows the Consignment Order Data frame that displays when Consignment is set to Yes Order 5010072 Sold To 1000C Bill To 1000C Ship To 1000C Ship To General Components General Components 23242 E Hoover 23242 E Hoover Chicago Chicago United States of America United States of America Consignment Order Data Consignment Location 1a00c P In Transit Location 1P Maximum Aging Days l45 Customer Consignment Inventory 25 Consignment Location Enter the location representing consigned inventory that resides at the customer facility This value defaults from Ship To Item Controls Maintenance if u
64. ocation A negative amount creates a customer credit CN CNT 3 14 Cycle Count Results Entry Makes adjustments to consigned inventory balances 3 16 21 Inventory Balance Update Changes consigned inventory balances Updates tags Reviewing Transaction History Use Transactions Detail Inquiry 3 21 1 to display detailed inventory transaction history records sorted by transaction number Enter the transaction number to display all the information about that transaction Figure 1 8 shows the details about transaction 1930 Transaction 1930 Numbers of Tran Nbr 1930 i Trans Type CN SHIP associated Date 08 08 2002 transactions Time 11 31 Effective Date 08 08 2002 Remarks 1929 User ID mat Program resois p Currency USD Qty Change 0 0 Shipper Number 40000015 Ship Date 08 08 2002 Output terminal P Order 5010072 402292 Revision Item Number TT 640 Description specialty wire clip Unit of Measure EA Address 1000C Name General Components Sales Job S010072 Ship Type Price 1 00 Inv Mov Customer Consignment Inventory 23 When consigned inventory is used multiple inventory transactions are processed and corresponding transaction history records created For the consigned transaction the system records the number of the standard transaction initiating it in the Remarks field In Figure 1 8 the number 1929 in the Remarks field reflects the standard RCT TR transaction
65. om this supplier are non consigned When you specify Yes in the header Consign field a Supplier Consignment frame displays illustrated in Figure 2 13 Scheduled orders and blanket orders are processed the same way using similar fields and frames Fig 2 13 Consignment Frame in Purchase Order Maintenance 5 7 Purchase Order 1001 Supplier Swift Transport 2100 Hueneme Road Port Hueneme United States of America Supplier Consignment Maximum Aging Days 10_ AQAD Supplier 00100 Ship To Quality Products Inc Manufacturing Division One World Way San Diego United States of America Ship To 10000 Supplier Consignment Inventory 69 Maximum Aging Days Optionally enter the maximum number of days consigned inventory on this order is allowed to reside at your facility Enter 0 zero to indicate that no scheduled aging deadline exists The system automatically adds the number of days entered here to the receipt date to determine the maximum aging date The calculated date is used by reports to determine how long inventory has been at your facility You can extend the maximum aging date as many times as required using Aging Inventory Update 5 18 13 or Aging Inventory Batch Update 5 18 14 An extension automatically updates each receipt Regardless of what you enter on the header you are prompted during line item entry to specify whether the particular line is consigned If you specify Yes you ca
66. ons 58 Set Up Consignment Accounts 0 0 00 c cece eee 59 Update Tax Rates i hes4 eeddeia eld thw bebe hedewbae gies ie 62 Update Settings for Sites and Locations 2 0 005 63 Managing Consigned Inventory 00 cece eee eee eee eae 64 Creating Inventory Transaction History 2 0e ee eae 64 Ordering Consigned Inventory 0 0 c cece eee eee eee 67 Receiving Consigned Inventory 0 0 cee eee eee eens 70 Using Supplier Consigned Inventory 0 00002 ee eee 70 Making Inventory Adjustments 00 0000 cece eee 73 Processing Returns Rejects and Corrections 0000 74 Managing Aged Inventory 2 0 cee eee eee ee 74 Tracking Consigned Inventory During Inventory Counts 77 FAQAD Contents v FA QAD vi MFG PRO eB2 User Guide Distribution FAQAD About This ocumentati 2 MFG PRO eB2 User Guide Distribution FAQAD This guide covers the features of two modules used to manage consignment inventory for customers and suppliers Other MFG PRO Documentation For an overview of new features and software updates see the Release Bulletin For software installation instructions refer to the appropriate installation guide for your system For conversion information refer to the Conversion Guide For instructions on navigating and using the QAD Desktop interface see User Guide QAD Desktop For
67. onsigned shipment generates the following transactions e ISS TR for transfers out of the stocking location e RCT TR for transfers into the consigned location e CN SHIP for consigned shipments As shipments are made the system transfers specified quantities updates the sales order and increases cumulative shipped quantities thereby reducing MRP requirements and increasing the corresponding physical inventory accounts Because the system updates cumulative quantities at the time of shipment it ensures that your customer schedule correctly represents what has been shipped If your company uses standard allocations and shipping use Sales Order Shipments 7 9 15 to process shipments against open sales orders These can be positive or negative amounts If your company uses shippers use Picklist Pre Shipper Automatic 7 9 1 to create a picklist that selects and ships inventory When needed you can edit the order line details before items are added to a picklist pre shipper Use Pre Shipper Shipper Confirm 7 9 5 to generate shipment transactions The system optionally generates an electronic ASN that can be exported to the customer using EDI ECommerce Customer Consignment Inventory 29 Making Inventory Transfers and Adjustments You can make inventory transfers either manually or through importing EDI ECommerce transactions Consignment Inventory Transfer Use Consignment Inventory Transfer 7 18 7 to manually select inventory
68. ownership These include ISS SO ISS WO ISS FAS ISS UNP The value of Use Consigned First in Supplier Consignment Control determines how the system processes inventory when consigned and non consigned items are located together GL Effects of Usage Issuing items with an ownership transfer updates the following consignment accounts e Debits the PO Consigned Inventory account defined in Purchasing Account Maintenance for the product line site and supplier type e Credits the PO Consigned Offset account defined in Purchasing Account Maintenance for the product line site and supplier type In addition transactions are created for all of the accounts normally updated during a PO receipt Once a usage transaction RCT PO CN ISS occurs the quantity associated with the receiver is available to be vouchered Vouchering of receipts for consigned items occurs in the same way as standard items Reaveraging of costs takes place when consigned inventory is consumed Notifying Suppliers of Usage You can use two methods to notify your suppliers that you have used consigned inventory e Generate a report to send to them e Use EDI Ecommerce to export usage data gt See Update Settings for Sites and Locations on page 63 gt See Use Consigned First on page 58 FAQAD 72 MFG PRO eB2 User Guide Distribution b See User Guide Volume 7 Release Management gt See Shipping Consigned Inventory on p
69. plier to buy back the excess sent to the customer or remaining at the end of the consignment period Because the supplier still owns the inventory any excess is simply returned Using key features of Customer Consignment Inventory you can e Create consigned inventory inventory offset and in transit accounts at the system level for product lines or for combinations of sites and product lines e Retain ownership of consigned inventory by deferring invoice and AR transactions until the inventory is used by the customer e Track consigned inventory automatically by defining inventory locations for items that are in transit and items received by a customer e Maintain visibility of consigned inventory from shipment through consumption even while it is in transit or at a customer facility e Set up consignment defaults at the system level for the majority of your sales orders and scheduled orders and tailor defaults for individual ship to addresses and items e Separate shipping and billing functions to accurately determine inventory value Customer Consignment Inventory 7 e Create and ship sales orders that include both non consigned and consigned items e Automatically replenish inventory as it is used by adding a new line to the current release of a scheduled order e Manually adjust inventory transfers if needed e Include or exclude consigned items during physical inventory or cycle count e Import EDI transmissions
70. ply to this ship to only You must enter a valid address with a list type of customer or ship to Item Number Optionally enter an item number to use as part of the unique identifier for this control record This item number represents the consigned item being shipped to the customer When you enter an item number this control record applies to sales order lines for this item only Items must be previously defined in Item Master Maintenance 1 4 1 The default is blank When left blank this control record applies to all items for the associated ship to without a specific control record Managing Consigned Inventory Key management functions of the Customer Consignment Inventory module are to e Manage inventory quantities e Provide inventory valuation and update accounts e Defer AR transactions until consumption When you activate the Customer Consignment Inventory module and begin shipping MFG PRO automatically tracks consigned inventory ownership location quantities age use invoicing and payment It does this by first identifying which sales order lines are consignment lines The system then treats the shipment of consignment line items as an internal transfer of inventory to a predefined MFG PRO location FAQAD 20 MFG PRO eB2 User Guide Distribution Table 1 2 Consignment Transaction Types FAQAD The inventory within this location references the shipper ID in the sales order line if shippers are used
71. r When new orders are created for a specific supplier the system looks for the most specific record first to determine the defaults to use Orders previously entered into the system remain unchanged Supplier 5017000 Mission Bay Distributors Item Number 10 15000 NOMAD TM COOLING SYS Consignment Orders 4 Maximum Aging Days 30 O Q The settings in this program apply either to the supplier alone or to the supplier item number combination specified in the header frame Only the supplier is required Supplier Enter the supplier address code that uniquely identifies this control record This address represents the company that supplies consigned items You must enter a valid address code with a list type of supplier This is a required field Associated control values apply to this supplier only Supplier Consignment Inventory 59 Item Number Optionally enter an item number to use as part of the unique identifier for this control record This item number represents the consigned item being received into inventory When you enter an item number this control record applies to purchase order lines for this item only Items must be previously defined in Item Master Maintenance 1 4 1 Leave this value blank to indicate that this control record applies to all items from this supplier without a specific control record Note Do not specify a supplier item defined with Supplier Item Maintenance 1 19 in this field When you
72. r consigned inventory This field defaults from the first frame if you specified a transfer location Quantity Enter the quantity of the item to be transferred to the new location Effective Date Enter the GL effective date for this transaction The default is the system date The effective date determines when this transaction affects GL balances If Verify GL Accounts is Yes in System Account Control the system checks that the transaction effective date is within an open fiscal period Fig 1 18 Status Conflict l Message in Sold To 1000C Consignment Ship To Inventory Transfer From Location Details ID 1 Ship To 1000C Order 5010072 i Item TT 500C Site T100 Location 1000C Quantity 2 500 0 Lot Serial Ref Cust PO Inventory Status N N N To Location Details New Location TTLOC Lot Serial Ref Quantity 2 500 0 Inventory Status Effective 08 08 2002 Status conflict Use to status When the inventory status of the items being transferred differs from the default inventory status at the transfer to location the system prompts you to change the inventory status of the transferred items e Respond Yes to have the items automatically assume the default inventory status of the transfer to location e Respond No to have items retain their current inventory status When you have finished specifying details press End A summary frame displays the items about to be transferred When prompted enter Yes to
73. rol Records for Specific Ship To Item Combinations 18 iv MFG PRO eB2 User Guide Distribution Managing Consigned Inventory 0 cece eee eens 19 Creating Inventory Transaction History 000s ee eue 20 Ordering Consigned Inventory 000s 23 Shipping Consigned Inventory 0 2 0 cece eee eee eee 27 Making Inventory Transfers and Adjustments 4 29 Using Customer Consigned Inventory 0 00 cece eens 33 Processing Returns Rejects and Corrections 00000 39 Managing Aged Inventory 0 00 cee eee eee 40 Tracking Consigned Inventory During Inventory Counts 42 Invoicing Consigned Shipments 0 00 ce cece eee eee 44 Effect of Automatic Invoicing 0 cee eens 45 Self Billing 6c os eae auiss Siete Gdn Reema Re ee eae aOR Gan RES 45 Reporting Consignment Inventory Data 00 0 eee eee eee 46 Chapter 2 Supplier Consignment Inventory 49 Overview of Supplier Consignment Inventory 0 00002 ee eee 50 Supplier Consignment Programs 002 e cee ee eens 51 Supplier Consignment Inventory Business Work Flow 52 Consignment Process Summary 0 00 ee cece eee eee 55 Planning and Setup jing sen ced eee Cag Pen ee ee dated ted deen ee 56 Update Control Settings 0 0 0 ec ete ees 56 Create Control Records for Specific Supplier Item Combinati
74. s Sold To 1000C General Components Batch 1 Item Number Location Lot Serial GL Ref Quantity TT 500C 1 000 0 Is all information correct The system assigned batch number is required FAQAD Customer Consignment Inventory 39 All batch numbers are assigned by the system when consigned inventory usage is processed either by importing EDI data or manually A batch number is assigned to each execution of an inventory transaction A complete record of batch numbers is maintained in the system You can view batch numbers by running any of the consignment usage reports such as Inventory Usage Report 7 18 4 13 Processing Returns Rejects and Corrections Because consigned inventory is not invoiced until consumed returns to stock need to occur without processing a credit invoice Excess consigned inventory returns or rejects are processed using either Sales Order Shipment 7 9 15 Shipper Unconfirm 7 9 21 or Pre Shipper Shipper Confirm 7 9 5 Use Pre Shipper Shipper Confirm or Shipper Unconfirm to process the return of inventory in the following cases e From a consigned location to an in transit location e From an in transit location to stock e From a consigned location to stock Use Sales Order Shipments 7 9 15 to create a sales order for e Correction negative quantity e Return to stores of consigned inventory e Customer credit The system prompts you to select one of the above choices Important The overis
75. sactions Time 10 48 Description standard clip assembly Effective 09 04 2002 UM ea Remarks Consigned Address 00100 User ID mat Name Swift Transport Program poporc p Sales Job Currency USD Ship Type Qty Change 50 0 Price 0 70 Shipper Number Inv Mov Ship Date 09 04 2002 When consigned inventory is used multiple inventory transactions are processed and corresponding transaction history records created For the consigned transaction the system records the number of the standard transaction initiating it in the Remarks field FAQAD Supplier Consignment Inventory 67 In Figure 2 11 the Remarks field reflects the standard RCT PO transaction that initiated the consignment CN ISS transaction For transaction 2072 the Remarks field contains the word Consigned to indicate the type of inventory involved in the transaction Ordering Consigned Inventory When the Supplier Consignment Inventory module is active additional frames and fields display for user input during order entry in e Blanket Order Maintenance 5 3 1 e Scheduled Order Maintenance 5 5 1 13 e Purchase Order Maintenance 5 7 In all three programs MFG PRO uses a hierarchical approach to retrieve previously entered default data that applies to specific suppliers and items e When entering a new order the system uses default values for the supplier defined in Supplier Item Controls Maintenance If a record does not exist for the supplier and a blank i
76. sed If not used the value defaults from Customer Consignment Control In Transit Location Optionally enter the location that represents consigned inventory that is in transit between you and your customer When you enter a value for a consignment location but not for an in transit location inventory ready for shipping is transferred from the inventory location directly to the consignment location When you enter an in transit value inventory is transferred from the stock inventory location to the in transit location Enter only valid locations set up in Location Maintenance The in transit location defaults from Ship To Item Controls Maintenance if used If not used the value defaults from Customer Consignment Control Important Assign in transit locations an inventory status code with Nettable set to No Otherwise MRP will consider supply in that location twice once for the scheduled receipt and again for the nettable quantity in the location Maximum Aging Days Optionally enter the maximum number of days consigned inventory is allowed to reside at or be in transit to the customer facility Enter 0 zero if there is no deadline This value defaults from Ship To Item Controls Maintenance if used If not used the value defaults from Customer Consignment Control When you need to enter a sales order with only a few consigned items proceed through the sales order screens to the sales order line frames as shown in Figure 1 11
77. set aceiasi P Optionally use Purchasing Account Maintenance 1 2 5 to further define GL accounts designated for consignment By setting up accounts for combinations of product line site and supplier type you can separately track accounts for multiple sites and types of suppliers Set Up Purchasing Detail Accounts Purchasing detail accounts default from Product Line Maintenance Often these are used to associate cost centers with different sites and supplier locations Fig 2 8 Consignment Accounts in Product Line 1500 AUTOMOTIVE PRODUCTS Purchasing Site 10000 San Diego Main Plant Account Supplier Type Maintenance Default Sub Account Override O 1 2 5 FA QAD 62 MFG PRO eB2 User Guide Distribution Update Tax Rates When the Supplier Consignment Inventory module is active you have an additional option for determining when the system creates GL transactions for tax amounts on consigned purchases The tax point is determined by settings defined for the tax rate in effect in Tax Rate Maintenance 2 13 13 1 Fig 2 9 Setting Tax Accrual in Tax Rate Maintenance Tax Type CA SLS Tax Code 13 Item Tax Class RSN Description 2 13 13 1 Tax Usage 5 S MFG Tax Rate Effective 09 01 2002 Tax By Line Tax Base Min Taxable 0 00 Max Taxable 999 999 999 999 99 Taxes accrue Percent Recoverable 0 00 Expiration Date when Tax Method a1 P Accrue Tax at Receipt 0 F Update Tax Allowed Accrue Tax at Usage
78. sue inventory status code must be Yes to allow a negative quantity If overissue is No the system does not allow an update If your company uses pre shippers use Shipper Unconfirm or Pre Shipper Shipper Confirm to unconfirm a shipper A negative amount creates a customer credit Unconfirm reverses the entire shipment and transfers the quantity from consignment back to the stock location FAQAD 40 MFG PRO eB2 User Guide Distribution gt See User Guide Volume 6 Master Data for details FAQAD Managing Aged Inventory In the Customer Consignment Inventory module you can track inventory by ship date or by how long it has been in a consignment location By assigning maximum aging days to the sales order line you can e Identify inventory that exceeds the set number of days without being consumed e Extend the aging date on individual or multiple orders e Consume oldest shipments first e Consume shipments by sequence number authorization cross reference or lot serial number When the consigned inventory has not been consumed by the customer and has not been returned ownership can be transferred to the customer The transfer of ownership does not occur automatically however allowing the supplier and customer to negotiate a compromise Note The aging date is separate from the expiration date To determine the date that maximum aging occurs the system uses the following calculation shipment date transit ti
79. te updates are also made to corresponding consignment accounts The various possibilities are shown in Table 1 3 Option Entered Results Action Transactions Shortage Shortage is reduction CYC CNT or TAG CNT Only consigned of consigned CN CNT inventory ISS SO CN USE Surplus Surplus is non CYC CNT or TAG CNT consigned Shortage Shortage is reduction CYC CNT or TAG CNT Include consigned of non consigned and non consigned inventory Surplus Surplus is non CYC CNT or TAG CNT consigned Shortage Shortage is reduction CYC CNT or TAG CNT Exclude consigned of non consigned inventory Surplus Surplus is non CYC CNT or TAG CNT consigned Use Consignment Inventory Adjustment 7 18 21 to associate the surplus non consigned inventory to a consignment order if needed Invoicing Consigned Shipments Using the Customer Consignment Inventory module invoicing is deferred until some or all of the shipped inventory has been consumed by the customer An invoice is not created until the customer acknowledges consumption Until consumption GL transactions occur to track the value of inventory during the time it is held in consignment status The system uses the customer consigned inventory accounts In Transit Consigned or Offset specified in Inventory Account Maintenance 1 2 13 If not available there the system uses the customer consignment accounts specified in Product Li
80. tem the system uses defaults defined in Supplier Consignment Control e At the purchase order line the system first uses defaults defined in Supplier Item Controls Maintenance for the order supplier and line item If a record does not exist values default from the order header Purchase Order Maintenance Specify Yes in the Consign field in the purchase order header to indicate that the order includes consigned items Note Scheduled orders and blanket orders are processed the same way using similar fields and frames They are not illustrated here FA QAD 68 MFG PRO eB2 User Guide Distribution Fig 2 12 Consign Field in Purchase Order Maintenance 5 7 Purchase Order lViainten Purchase Order 1001 Supplier Swift Transport 2100 Hueneme Road Port Hueneme United States of America Order Date 07 31 2002 Price Tbl Due Date Disc Tbl h Ln Disc Bill To ite Contract Contact Remarks Supplier 00100 Ship To 10000 Ship To Quality Products Inc Manufacturing Division One World Way San Diego United States of America Confirming 4 Currency USD Taxable Cop Fixed Price 4 Credit Terms IP Entered By mkr Reqey IP Comments Imp Exp Z Language US Consign Z O Set Consign field to Yes for consigned orders Consign Enter Yes if most items on this purchase order are received from the supplier as consigned inventory Enter No if most items purchased fr
81. that initiated the consignment CN SHIP transaction For transaction 1929 the Remarks field contains the word Consigned to indicate the type of inventory involved in the transaction Ordering Consigned Inventory When the Customer Consignment Inventory module is active additional fields and frames display for user input during order entry in e Sales Order Maintenance 7 1 1 e Scheduled Order Maintenance 7 3 13 In both sales order and scheduled order programs MFG PRO uses a hierarchical approach to retrieve previously entered default data that applies to specific customers and items e When entering a new order the system uses default values for the ship to address defined in Ship To Item Controls Maintenance If a record does not exist for the ship to address and a blank item the system uses defaults defined in Customer Consignment Control e At the sales order line the system first uses defaults defined in Ship to Item Controls Maintenance for the order ship to and line item If a record does not exist values default from the order header FAQAD 24 MFG PRO eB2 User Guide Distribution Fig 1 9 Consignment Field in Sales Order Maintenance Header 7 1 1 Fig 1 10 Consignment Order Data Frame in Sales Order Maintenance Header AQAD Sales Order Maintenance Figure 1 9 shows the Consignment field in the sales order header Order 5010072 Sold To 1000C Bill To 1000C Ship To 1000C Sold To Ship To Ge
82. the Supplier Consignment Inventory module All values default to Supplier Item Controls Maintenance 5 18 1 where you can modify them for specific combinations of suppliers and items FAQAD Supplier Consignment Inventory 57 Fig 2 4 Suppli Supplier Consignment Control TOSS Conimnets Using Consignment Inventory Control 5 wl 8 24 Consignment Orders 7 Maximum Aging Day Bo Use Consigned Firsi Default to picking order Transfer Ownership Is f Issue Backflush Using Consignment Inventory This is the single place where you can activate the Supplier Consignment Inventory module The default is No No Enter No to display standard purchase order programs The system bypasses all consignment screens Yes The Supplier Consignment Inventory module is active You can use Supplier Consignment Inventory programs Once you have activated the module created consigned items or performed transactions entering No to deactivate the module displays a warning message Unless all consigned items are consumed the system warns you that non invoiced consigned items exist and prompts you to confirm your action Consignment Orders Specify the default value for the Consignment Orders field in the header of new purchase orders scheduled orders and blanket purchase orders No Enter No if most of your inventory transactions are for non consigned items Yes The Consignment Orders field on the header of new orders is Yes In
83. the inventory balance from being negative Restricted Transactions Inventory status codes can prevent particular transactions from occurring For example you can create restricted transactions for consigned inventory to prevent it from being included in acycle count or unplanned issues receipts Create Control Records for Specific Ship To ltem Combinations Use Ship To Item Controls Maintenance 7 18 1 to define specific default values for combinations of ship to addresses and item numbers The values entered here override the settings in Customer Consignment Control When new orders are created for a specific ship to address the system looks for the most specific record first to determine the defaults to use With the exception of Ship To and Item Number field values in Ship To Item Controls Maintenance default from corresponding fields in Customer Consignment Control 7 18 24 Field descriptions in Customer Consignment Control also apply to the fields in this program Customer Consignment Inventory 19 Fig 1 7 Ship To Item Controls Ship To 1000C General Components Maintenance Item Number TT 500C multifunction clip 7 1 8 1 Consignment Orders Consignment Location 1000C OO In Transit Location Maximum Aging Days po_ Automatic Replenishment 0 woe Ship To Enter the customer ship to address that uniquely identifies this control record This is a required field Associated control values ap
84. the system Specify Inventory Status Codes Use Inventory Status Code Maintenance 1 1 1 to create and modify inventory status codes for the locations you plan to use to store consigned inventory It is recommended that you define a status code with the Available Nettable and Overissue fields set to No When you create a Fig 1 6 Consignment Accounts in Product Line Maintenance 1 2 1 Tip If you define locations with the same codes as the corresponding ship to addresses the location is easily identifiable FAQAD 18 MFG PRO eB2 User Guide Distribution b See User Guide Volume 6 Master Data for more information on inventory status codes b See Activate Customer Consignment and Configure Control Settings on page 13 for details FAQAD consigned sales order line and enter a consigned or in transit location the system checks the inventory status code If the status code for the location is available or nettable a warning displays and the system prompts you to continue Available When this is No inventory is not available for allocation to sales orders For inventory residing at a location that represents the customer facility setting available to No prevents the allocation process from selecting that quantity for a different sales order Nettable Setting nettable to No prevents MRP planning logic from including that quantity as inventory on hand Overissue Setting overissue to No prevents
85. tion is reported back to the supplier the supplier can transfer liability for the material in their system and issue an invoice if self billing is not being used Using consigned inventory alleviates the need for the supplier to buy back the excess sent to the customer or remaining at the end of the consignment period Because the supplier still owns the inventory any excess is simply returned Using key features of Supplier Consignment Inventory you can Create PO consigned inventory and inventory offset accounts at the system level for product lines or for combinations of sites and product lines Delay the transfer of ownership of consigned inventory by deferring AP transactions until you use the inventory Determine at the system level whether consigned inventory should be consumed first or only after non consigned inventory is exhausted Set up consignment defaults at the system level for the majority of your purchase orders and supplier scheduled orders and tailor defaults for individual supplier addresses and items Create vouchers for payment of shipping charges immediately while delaying vouchering for material until it is actually used Supplier Consignment Inventory 51 e Indicate for selected sites and locations that inventory transfers should initiate a change in ownership e Determine the tax point for consigned inventory based on settings in the associated tax rate The tax point can be at receipt at vouchering
86. to generate consumption records automatically or manually create records as needed e Easily reverse transactions when you have excess rejected or returned inventory e Improve accuracy of consigned inventory information including its location status age and order details e Generate reports and inquiries that sort and display details according to your needs e Identify unconsumed inventory that exceeds its maximum aging date e Compare inventory shipped with inventory consumed e Compare inventory shipped and consumed with inventory paid for Customer Consignment Programs Table 1 1 lists programs included in Customer Consignment Inventory Table 1 1 Menu Number Description Program Name Customer A Consignment 7 18 Customer Consignment Inventory Inventory Programs 7 18 1 Ship To Item Controls Maintenance socnstmt p 7 18 2 Ship To Item Controls Report socnstrp p 7 18 4 Consignment Reports Menu 7 18 4 1 Consignment Inventory Report ppptrp10 p 7 18 4 2 Consignment Inventory by Location iclorp02 p 7 18 4 3 Consignment Inventory by Order socnrp01 p 7 18 4 4 Consignment by Order with Sequence socnrp06 p 7 18 4 7 Aging Inventory Report by Order socnairp p FAQAD 8 MFG PRO eB2 User Guide Distribution FAQAD Menu Number Description Program Name 7 18 4 8 7 18 4 9 7 18 4 13 7 18 4 14 7 18 4 15 7 18 4 16 7 18 4 17 7 18 7 7 18 10 7 18 11 7 18 13 7 18 14 7 18 15 7 18 16 7 18 17 7 18 18 7 18 2
87. top interface e References to keyboard commands are generic For example choose Go refers to e The forward arrow in Desktop e F2 in the Windows interface e Fl in the character interface In the character and Windows interfaces the Progress status line at the bottom of a program window lists the main Ul specific keyboard commands used in that program In Desktop alternate commands are listed in the right click context menu For complete keyboard command summaries for each MFG PRO interface refer to the appropriate chapters of User Guide Volume 1 Introduction and User Guide QAD Desktop This document uses the text or typographic conventions listed in the following table If you see It means monospaced text A command or file name italicized monospaced text A variable name for a value you enter as part of an operating system command for example YourCDROMDir indented command line A long command that you enter as one line although it appears in the text as two lines Note Alerts the reader to exceptions or special conditions Important Alerts the reader to critical information Warning Used in situations where you can overwrite or corrupt data unless you follow the instructions FAQAD Chapter 1 Customer Consignment Inventory The Customer Consignment Inventory module lets you plan order ship track and report customer consigned inventory usin
88. tory usage by selected criteria and schedules order sequence number 7 18 4 16 Usage Report by Order Displays inventory usage by selected criteria including batch number and sales order sorted by 1 Ship from customer ship to order item PO or 2 Ship from item customer ship to order PO 7 18 4 17 Usage Report by Order with Seq Displays inventory usage by selected criteria and scheduled order sequence number 7 18 16 Usage Inquiry Displays consumed inventory by batch number Shows sales order line item quantities and other data 7 18 17 Authorization Usage Inquiry Displays consumed inventory by batch and authorization number Shows order line item quantities and other data 7 18 18 Sequenced Usage Inquiry Displays consumed inventory by batch and customer sequence number Shows order line item quantities and other data AQAD 48 MFG PRO eB2 User Guide Distribution Table 1 5 Standard Reports and Inquiries used in Customer Consignment Inventory FAQAD Standard reporting tools available in Customer Consignment Inventory are shown in Table 1 5 followed by an explanation of the data that each tool provides Menu Number Title Function Purpose 3 6 5 Inventory Detail Report Shows inventory availability Detail format shows quantities of consigned items Lists inventory information for site and location 1 5 21
89. ventory Key management functions of the Supplier Consignment Inventory module are to e Manage inventory quantities e Provide inventory valuation and update GL accounts e Defer AP transactions until consumption When you activate the Supplier Consignment Inventory module and begin receiving inventory MFG PRO automatically tracks consigned inventory ownership quantities age use vouchering and payment It does this by first identifying which purchase order lines are consignment lines The system then manages the receipt of consignment line items with special consignment transactions Information associated with consigned receipts is maintained in a cross reference table in addition to the standard inventory information The inventory references the PO line on the receipt These inventory cross reference records are visible for usage and aging analysis Creating Inventory Transaction History Every inventory transaction creates a record in inventory transaction history Each record has a unique sequential transaction number and a transaction type Transactions include the following information e Transaction data e Inventory data e Cost data e GL transaction data e User ID of the person entering the transaction Supplier Consignment Inventory Transaction Types The transaction type code identifies the function used to initiate the inventory change Table 2 2 lists the supplier consignment transaction type codes included
90. ventory reports and inquiries For a list of these reports see Table 1 5 on page 48 in the Customer Consignment Inventory chapter Report Function Purpose Supplier Item Controls Browse Displays data defined for consigned inventory items and suppliers Consignment Inventory Report Displays consigned inventory items of a product line by selected criteria including site location lot serial number ABC class grade assay status expiration date and other details Consignment Inventory by Order Displays selected consigned inventory receipts sorted by PO Displays with or without quantities and is sorted by 1 Site customer supplier item PO 2 Item site supplier PO or 3 PO item Consignment Usage Report Displays detailed inventory usage by selected criteria including PO item supplier site and usage date Is sorted by 1 Site supplier item PO 2 Item site supplier PO or 3 PO item Consignment Usage Summary Report Displays inventory usage by selected criteria including PO item supplier site and date Is sorted by 1 Site supplier item PO 2 Item site supplier PO or 3 PO item Consignment Usage Export Report Displays inventory usage with the option to mark usage records as reported Aging Inventory Report by Order Displays inventory quantities and aging dates by purchase order Table 2 4 Reports and Menu Inquiri
91. with EMT Enterprise Material Transfer EMT lets you translate sales orders into purchase orders automatically and transmit those purchase orders to secondary business units SBU electronically using EDI ECommerce You can use EMT with the Customer Consignment Inventory module regardless of whether items are shipped directly by the SBU or received at your site for shipment All of the invoicing is managed by the site creating the original sales order known in EMT as the primary business unit PBU When the PBU imports an advance ship notice from the SBU or receives the actual items into inventory the items are transferred to the consignment or in transit location rather than being issued out of inventory The actual sales order issue occurs when the customer receiving the items notifies the PBU of usage just like other consigned shipments gt See User Guide Volume 11 PRO PLUS for details on self billing gt See User Guide Volume 2A Distribution for information on EMT FA QAD 12 MFG PRO eB2 User Guide Distribution Consignment Process Summary Figure 1 2 shows the sequence in which the Customer Consignment Inventory module processes data within MFG PRO Fig 1 2 Consignment Overview Order inventory gt _ Allocate inventory Negative SO Shipment Unconfirm Shipper Negative SO Shipment Unconfirm Shipper Pick and ship inventory SO Shipment Fe a
92. y 7 Unit Cost 0 00 Total Qty Order Total Cost Line 0 Remarks Project Dr Acct Effective Date 08 08 2002 Cr Acct oo You might use this program after doing a physical inventory to indicate that surplus items are consigned You can select inventory by serial number reference number sequence number or authorization For example you can debit an in transit account and credit a consigned offset consumption account Customer Consignment Inventory 33 Using Customer Consigned Inventory You can designate inventory as consumed either by transferring ownership using a manual option or by importing EDI ECommerce transactions Three programs let you manually register usage of consigned materials Inventory Usage Create 7 18 13 Authorization Usage Create 7 18 14 or Sequenced Usage Create 7 18 15 Note You can also register inventory usage in Aging Inventory Update See Managing 7 18 10 Aged Inventory on page 40 Use these programs to e Indicate usage of customer consigned inventory e Transfer ownership of inventory to the customer e Issue items on sales orders or scheduled orders and prepare for invoicing e Update GL accounts e Automatically post invoices based on default setup Oldest shipments are consumed first unless you specify inventory selection details such as batch lot serial or reference numbers When you manually designate inventory as used the system reduces the b See page
93. your facility PO Consigned Offset Acct Enter the GL account sub account and cost center codes used to track deferred payable amounts for consigned receipts The PO Consigned Inventory and PO Consigned Offset accounts are updated simultaneously to record consigned activity and do not affect the balance sheet Other accounts are not updated until inventory is used The remaining account fields in this frame are used by the Customer Consignment Inventory module Set Up Product Line Accounts Use Product Line Maintenance 1 2 1 to tailor consignment accounts for items that belong to a particular product line If you do not define specific product line accounts the system uses the default GL accounts from System Account Control Supplier Consignment Inventory 61 Default Cost Center Purchases Acct 5100 PO Receipts Acct 2200 Overhead Appl Acct 6490 PO Price Var Acct 5000 AP Usage Var Acct 5010 AP Rate Var Acct 5020 PO Consigned Inventory Acct 1i02_ _ P PO Consigned Offset accts 1P Consignment Accounts Override 0O 5 g Fig 2 7 Consignment Accounts in Product Line 1500 Product Line Description AUTOMOTIVE PRODUCTS Maintenance Taxable O 1 2 1 Tax Class Default Sub Account Override 0O Default Cost Center Override O Consignment Accounts SO Consigned In Transit Acct P Oo a SO Consigned Inventory Acct P 2 SO Consigned Offset Acct P PO Consigned Inventory Acct a102_ _ P PO Consigned Off

MFG/PRO eB2 User Guide Volume 2B: Distribution

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