Managing Consigned Inventory
Key management functions of the Supplier Consignment Inventory module are to:
• Manage inventory quantities.
• Provide inventory valuation and update GL accounts.
• Defer AP transactions until consumption.
When you activate the Supplier Consignment Inventory module and begin receiving inventory, the system automatically tracks consigned inventory ownership, quantities, age, use, receiver matching, 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.