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 present at your site.

For example, you can use consignment fields in Cycle Count Worksheet Print (3.13.1) to select inventory to count.

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.

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 (3.13.2) and Inventory Balance Update (3.16.21).

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 CN-ISS transactions to track the inventory changes and transfer ownership of material.

The various possibilities are shown in Balancing Consigned Inventory After Cycle or Physical Counts.

Use Consignment Inventory Adjustment (5.18.25.21) to associate the surplus (non-consigned) inventory to a consignment order, if needed.

See Using Supplier Consigned Inventory.