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:

• Identify inventory on a particular purchase order receipt that exceeds the maximum aging date without being consumed.

• Extend the aging date by number of days or date on items received on individual or multiple purchase orders.

• 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

• Receipt date is the date recorded in Purchase Order Receipts (5.13.1) or PO Shipper Receipt (5.13.20).

• Maximum aging days is taken from the consignment purchase order line data in Purchase Order Maintenance (5.7) or Supplier Scheduled Order Maintenance (5.5.1.13).

The calculated maximum aging date for each shipment is shown in various aging reports.

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.

Use Aging Inventory Report by Part (5.18.16) to identify consigned inventory by item number.

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.

Aging Inventory Update (5.18.13), Cross Reference Details and Max Age Date Frames

Values default from receipt data. You can update the following fields in the Max Age Date frame:

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.

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.

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.