CONSIGNED INVENTORY

CONSIGNED INVENTORY
1) Create an item “Cons 1” in Inventory Master with the following attributes.
a) Apply template purchased item for enabling it in the functional area inventory and
purchasing to facilitate stockable, transactable and purchasable.
b) Enable “use approved supplier” and give a list price of 1.
c) Go to the “General Planning” tabbed region and scroll down to “Vendor Managed” Block
and enable the attribute “Consigned” and save.
2) Assign the item to your organization, say “M1”.
3) Define consumption transaction rules ([N]=> Setup=> transactions=> Consigned/VMI Consumption) Enable Consigned and SI transfer as transaction type. The weight value allows you to set the processing order. For example, if three transactions satisfy the transaction criteria, the system processes the transaction with the highest weight. Give a value of 1. “From S1” must be an expense Sub Inv. Materials from vendor will be received into this S1. “To S1” must be asset S1. [A S1 can be made as expense sub inv. By unchecking the “Asset Sub Inventory” check box in the SI definition form].
4) Go to PO Resp. and create a supplier “sup_con1” with Supplier as type in the classification tabbed region.
5) Create a site “S1” with all address filled (necessary for sending the cheques to the supplier) and contact person details in the contacts tabbed region. Ensure Pay and Purchasing are only enabled in the general tabbed region.
6) Go to “Purchasing” tabbed region, “self billing” block in the site. Select “Use” for pay on and “Consumption Advise” for Invoice Summary Level fields.
7) Create an ASL for item “cons1” with sup_con1 as a direct approved supplier under Record details. Ensure Global is selected as yes.
8) Create a BPA for Cons1 with the approved supplier sup_con1. Do not mention anything in “Pay on” in terms button. Adapt the best practices for this powerful document BPA even though we use it as a mere setup for consigned inventory [i.e. Effective dates in terms button, cumulative pricing in agreement tabbed region, (pur officer’s efficiency) and allow price override in price reference tabbed region to meet Indian scenario.
9) Under the attributes button of the ASL for our item cons1, mention the BPA number under source documents and enable “consigned from supplier” and zero days as billing cycle.
10) The setups are complete which can be tested by making a release for this BPA. When you fill the line number, the system will pop up a message indicating that you cannot create releases for the consigned material. This “Successful failure” to create a release indicates that you have made the setups properly.
11) Create a SPO for 100 quantities with our approved supplier for our consigned item. Receipt routing must be “Direct Delivery” and Std. and Ins. Routings are not applicable as the material will be received at the supplier’s consigned sub inventory and it will be his property till we transfer the items to regular.
12) Receive it at the expense SI mentioned in step 3. The location field is not mandatory (normally for a direct receipt) as it a consigned material.
13) Check the qty under On-Hand availability and ensure that the owning party is Cons_sup1 site s1.
14) Make a consigned transaction for say 45 [Nav: Transactions- Consigned transactions] with a transaction type as “Transfer to Regular” from the owning party (sup_con1-S1). This will automatically trigger the S1 transfer from his expense S1 to our asset S1 as mentioned in the consigned setups. I could not check this functionality in our Oracle instance as the profile option “INV: Allow Expense to Asset Transfer” is set to “NO” and it is un-updatable under all levels – site, application, responsibility and user. Please check. This profile setup requires Audit clearance at your client’s location as this transaction increases the asset value of your org.
15) Check again the on hand quantity under on hand availability. The line would have got split into two indicating both our material and the party’s material.
16) Run the concurrent “create consumption advice” (if this not available under your resp. add it under your request group in sys admin.) for our supplier sup_con1 site S1 for our item con1 in org M1.
17) Run the concurrent Pay on Receipt Auto Invoice (again add it your request group) with a transaction source of “ERS_AND_USE” for our inventory receipt number. This will take the data from the “Consumption Advice” and populate the interface tables of payables. Pay on receipt will also automatically spawn the child concurrent “Payables Open Interface Import” for pulling the data from the interface table to the Base table of Payables.
18) Switch resp to Payables and enquire the creation of unvalidated, distributed Invoice [Nav: Invioces=> Inquiry=> Invoices] for our supplier. Check the balance owed to him also [a button in the bottom of the inquiry form].
19) Validate the Invoice and create accounting [creation of liability owed to the supplier]. Check for funds available in the bank and make a full payment from our internal bank in our payment document and make final accounting. This will facilitate passing of the accounting entries to Cash Management for re-conciliation and manual adjustments, if necessary before posting to General Ledger.

PO::Document Types

Document Types

Document Types is used to define access, security, and control specifications for all Purchasing documents. You cannot enter new document types but you can enter new document subtypes only for RFQs and quotations. Purchase Agreement, Purchase Order, Quotation, Release, Request for Quotation, and Requisition are all the documents types available.
Navigation: Purchasing Responsibility=> Setup=> Purchasing=> Document Types

Owner Can Approve to indicate that document preparers can approve their own documents. This field is not applicable when the Document Type is Quotation or RFQ.
Approver Can Modify to indicate that document approvers can modify documents. This field is not applicable when the Document Type is Quotation or RFQ.

Can Change Forward To to indicate that users can change the person the document is forwarded to. This field is not applicable when the Document Type is Quotation or RFQ.

Can Change Forward From to indicate that users can change the name of the document creator. This field is applicable only when the Document Type is Requisition.

Can Change Approval Hierarchy to indicate that approvers can change the approval hierarchy in the Approve Documents window. This field is not applicable when the Document Type is Quotation or RFQ.

Disable to disable a document type. This field is applicable only for user-defined quotations and RFQs.

Security Level informs who are all eligible to access the documents.

Hierarchy - Only the document owner and users above the owner in the defined purchasing security hierarchy may access these documents.
Private - Only the document owner may access these documents.
Public - Any user may access these documents.
Purchasing - Only the document owner and users listed as buyers in the Define Buyers window may access these documents.

Access Level gives restriction to user on these documents.

Full - Users can view, modify, cancel, and final close documents.
Modify - Users can only view and modify documents.
View Only - Users can only view documents.

Forward Method: The following options apply regardless of whether you are using position hierarchies or the employee/supervisor relationship to determine your approval paths. The Forward Method field is not applicable when the Document Type is Quotation or RFQ. Choose one of the following options:
Direct - The default approver is the first person in the preparer's approval path that has sufficient approval authority.
Hierarchy - The default approver is the next person in the preparer's approval path regardless of authority. (Each person in the approval path must take approval action until the person with sufficient approval authority is reached.)

Archive On: The Archive on field is applicable only when the Document Type is Purchase Agreement, Purchase Order, or Release. Choose one of the following options:

Approve - The document is archived upon approval. This option is the default. The Change Order workflow begins only if this option is chosen
Transmission - The document is archived upon transmission. A document transmission action would be printing, faxing, or e-mail.

Default Hierarchy field is not applicable when the Document Type is Quotation or RFQ. Otherwise, when Use Approval Hierarchies is enabled in the Financial Options window, you can enter a position hierarchy from the Position Hierarchy window. This hierarchy then becomes the default in the Approve Documents window.

Approval Workflow: The PO Approval workflow is used for approving purchase orders. The PO Requisition Approval workflow is used for approving requisitions. If you've created a workflow of your own, you can select that for this document. Select the Approval Workflow you want to use for this particular document type, or use the default that is already provided.

Workflow Startup Process: Usually the Workflow Startup Process is the highest-level process in a workflow. The default startup process for the PO Approval workflow is the PO Approval Top Process. The default startup process for the PO Requisition Approval workflow is the Main Requisition Approval Process. If you've created a startup process of your own, you can select that for this document.

Autocreate Workflow: This is applicable for requisitions only, select the Autocreate Workflow you want to use for automatically creating purchase orders or releases from approved requisition lines, or use the default that is provided. The default workflow that comes with Purchasing is the PO Create Documents workflow. If you've created a workflow of your own, you can select that for this document.

Autocreate Workflow Startup Process: This is applicable for requisitions only, select the Autocreate Workflow Startup Process you want to use, or use the default that is already provided.
The highest-level process for the PO Create Documents workflow is the Overall Document Creation / Launch Approval Process. If you've created a startup process of your own, you can select that for this document.

Oracle AppsSCM Post::Document Types::Purchasing::Module

DOCUMENT CONTROL

Document control is options provide by purchasing module through which user can control Purchasing documents as below mentioned actions. You can control documents at Headers, Lines and Shipments and Releases.

Document Control Actions:

• Delete- You can delete any document before saving it. Oracle suggests clear unsaved

data instead of delete.

• Cancel-Terminate existing commitments to buy from suppliers by fully

or partially cancelling your documents.

• Close- Documents will be closed as soon as you finish receiving material.
• Finally Close- If purchasing documents gets paid.
• Freeze- No more modifications are required for this documents.
• Hold- If you want to prevent a document from Printing, Receiving and Invoicing.
• Firm- It will prevent the Purchase documents from unreserved and cancellation.
• Close for Receiving- Purchasing automatically close documents as soon as you finish

receiving.

• Close for Invoicing- Purchasing automatically close documents as soon as you finish Invoicing.

PO->PO Summary->Select particular PO and go to Tools->Control you will get list of actions.

Document Control Statuses:

These are all the statuses available when you perform approval on purchasing documents.

1) Incomplete 2) In-Process 3) Approved 4) Pre-Approved 5) Requires Re-Approval 6) On Hold 7) Frozen 8) Cancelled 9) Rejected 10) Returned 11) Reserved 12) Not Reserved 13) Closed.