Consigned Inventory Flow

1) Blanket established for Consignment pricing

2) Approved Supplier List Attributes
Sourcing Tab: Type= Blanket
Number= Blanket PO
Line = Blanket line number.
Inventory Tab: Consignment checkbox checked
Billing Cycle days = 0
3) Setup/Transactions/Consigned/VMI Consumption (not required)
Consigned is checked
Transaction Type = Sub-Inventory Transfer
Organization= V1
Owning Party = Parag/HYDERABAD
From Subinventory = Al-store
To Subinventory = Stores
4) Create Consign Standard Purchase Order
created a standard po# 10508
Item = Cons
Vendor = Parag
Vendor site = HYDERABAD
Ship to organization = V1
Quantity = 10
Consigned_Flag on po.po_line_locations_all set to Y
Closed_code = ‘CLOSED FOR INVOICING’

created a standard po# 10509

Item = Cons
Vendor = Parag
Vendor site = HYDERABAD
Ship to organization = V1
Quantity = 15
Consigned_Flag on po.po_line_locations_all set to Y
 Closed_code = ‘CLOSED FOR INVOICING’

Select closed_code, consigned_flag, po_header_id

From po_line_locations_all
Where po_header_id in (select po_header_id
From po_headers_all where segment1 in ('10508', '10509'));

CLOSED_CODE C
------------------------------ -
CLOSED FOR INVOICE Y
CLOSED FOR INVOICE Y
5) Receiving Standard Purchase Order:
receive and deliver the po# 10508 with quantity = 10
Subinventory = AL-store
receipt# 8063

receive and deliver the po# 10509 with quantity = 15

Subinventory = AL-store
receipt# 8064

select transaction_id, transaction_type, transaction_date, quantity

from rcv_transactions
where po_header_id in (45503, 45504);

TRANSACTION_ID TRANSACTION_TYPE TRANSACTION_DAT QUANTITY

-------------- ------------------------- --------------- ----------
680059 RECEIVE 02-JUN-06 10
680060 DELIVER 02-JUN-06 10
680061 RECEIVE 02-JUN-06 15
680062 DELIVER 02-JUN-06 15

select transaction_id, rcv_transaction_id, attribute1

from mtl_material_transactions
where rcv_transaction_id in (680060, 680062);

TRANSACTION_ID RCV_TRANSACTION_ID
-------------- ------------------
11621602 680060
11621606 680062

Select closed_code, consigned_flag

From po_line_locations_all
Where po_header_id in (select po_header_id
From po_headers_all where segment1 in ('10508', '10509'));

CLOSED_CODE C
------------------------------ -
CLOSED Y
CLOSED Y
6) Check Onhand Availability:
/OnHand, Availability form
Subinventory = AL-store
Item = Cons
click Find
it shows Owning Party = Parag-HYDERABAD (supplier) with quantity = 25
(includes both standard Purchase Orders)
7) Transfer to Regular:
Transactions/Consigned Transactions
Enter:
Transfer to Regular
Item = Cons
Subinventory = Al-Store
Quantity = 25
Reference = '10508 and 10509'
save it.

I can choose less qty and also more qty against multiple standard POs.
I can also use desc FF to assign the PO number which might be used
to link the standard PO number with Consumption Advice.
SELECT MCT.TRANSACTION_ID,
MMT.INVENTORY_ITEM_ID,
MMT.ORGANIZATION_ID,
MMT.RCV_TRANSACTION_ID,
MMT.TRANSACTION_TYPE_ID,
ABS(MMT.TRANSACTION_QUANTITY) OUTBOUND_QUANTITY,
CONSUMPTION_RELEASE_ID,
Substr(MMT.TRANSACTION_REFERENCE,1,15) REFERENCE,
MMT.OWNING_ORGANIZATION_ID,
MMT.OWNING_TP_TYPE,
PVS.VENDOR_ID,
PVS.VENDOR_SITE_ID,
MMT.TRANSACTION_SOURCE_ID
FROM MTL_MATERIAL_TRANSACTIONS MMT,
MTL_CONSUMPTION_TRANSACTIONS MCT,
MTL_TRANSACTION_TYPES MTT,
MTL_SYSTEM_ITEMS_VL MSI,
HR_ORGANIZATION_UNITS_V HOU,
PO_VENDORS POV,
PO_VENDOR_SITES_ALL PVS
WHERE MMT.INVENTORY_ITEM_ID = MSI.INVENTORY_ITEM_ID AND
MMT.ORGANIZATION_ID = MSI.ORGANIZATION_ID AND
MMT.TRANSACTION_TYPE_ID = MTT.TRANSACTION_TYPE_ID AND
MMT.ORGANIZATION_ID = HOU.ORGANIZATION_ID (+) AND
MMT.TRANSACTION_TYPE_ID in (74, 75) AND
MMT.TRANSACTION_ID = MCT.TRANSACTION_ID AND
(PVS.VENDOR_SITE_ID = MMT.OWNING_ORGANIZATION_ID OR
PVS.VENDOR_SITE_ID = MMT.XFR_OWNING_ORGANIZATION_ID) AND
POV.VENDOR_ID = PVS.VENDOR_ID AND
MMT.INVENTORY_ITEM_ID = 54822 AND
TRUNC(MMT.CREATION_DATE) = '02-JUN-2006' ;

TRANSACTION_ID INVENTORY_ITEM_ID ORGANIZATION_ID RCV_TRANSACTION_ID

-------------- ----------------- --------------- ------------------
TRANSACTION_TYPE_ID OUTBOUND_QUANTITY CONSUMPTION_RELEASE_ID
------------------- ----------------- ----------------------
REFERENCE OWNING_ORGANIZATION_ID
--------------------------------------------- ----------------------
OWNING_TP_TYPE VENDOR_ID VENDOR_SITE_ID TRANSACTION_SOURCE_ID
-------------- ---------- -------------- ---------------------
11621612 54822 204
74 25
10508 and 10509 5131
1 21930 5131 33586

it only created one consumption advice for two standard Purchase Orders total
quantities.
8) Create Consumption Advice:
Report/Transactions
Choose Create Consumption Advice
parameters:
Supplier = Parag
Supplier Site = HYDERABAD
Item = Cons
Organization = V1

There is no parameter to choose standard PO number.

SELECT MCT.TRANSACTION_ID,
MMT.INVENTORY_ITEM_ID,
MMT.ORGANIZATION_ID,
MMT.RCV_TRANSACTION_ID,
MMT.TRANSACTION_TYPE_ID,
ABS(MMT.TRANSACTION_QUANTITY) OUTBOUND_QUANTITY,
CONSUMPTION_RELEASE_ID,
Substr(MMT.TRANSACTION_REFERENCE,1,15) REFERENCE,
MMT.OWNING_ORGANIZATION_ID,
MMT.OWNING_TP_TYPE,
PVS.VENDOR_ID,
PVS.VENDOR_SITE_ID,
MMT.TRANSACTION_SOURCE_ID
FROM MTL_MATERIAL_TRANSACTIONS MMT,
MTL_CONSUMPTION_TRANSACTIONS MCT,
MTL_TRANSACTION_TYPES MTT,
MTL_SYSTEM_ITEMS_VL MSI,
HR_ORGANIZATION_UNITS_V HOU,
PO_VENDORS POV,
PO_VENDOR_SITES_ALL PVS
WHERE MMT.INVENTORY_ITEM_ID = MSI.INVENTORY_ITEM_ID AND
MMT.ORGANIZATION_ID = MSI.ORGANIZATION_ID AND
MMT.TRANSACTION_TYPE_ID = MTT.TRANSACTION_TYPE_ID AND
MMT.ORGANIZATION_ID = HOU.ORGANIZATION_ID (+) AND
MMT.TRANSACTION_TYPE_ID in (74, 75) AND
MMT.TRANSACTION_ID = MCT.TRANSACTION_ID AND
(PVS.VENDOR_SITE_ID = MMT.OWNING_ORGANIZATION_ID OR
PVS.VENDOR_SITE_ID = MMT.XFR_OWNING_ORGANIZATION_ID) AND
POV.VENDOR_ID = PVS.VENDOR_ID AND
MMT.INVENTORY_ITEM_ID = 54822 AND
TRUNC(MMT.CREATION_DATE) = '02-JUN-2006' ;

TRANSACTION_ID INVENTORY_ITEM_ID ORGANIZATION_ID RCV_TRANSACTION_ID

-------------- ----------------- --------------- ------------------
TRANSACTION_TYPE_ID OUTBOUND_QUANTITY CONSUMPTION_RELEASE_ID
------------------- ----------------- ----------------------
REFERENCE OWNING_ORGANIZATION_ID
--------------------------------------------- ----------------------
OWNING_TP_TYPE VENDOR_ID VENDOR_SITE_ID TRANSACTION_SOURCE_ID
-------------- ---------- -------------- ---------------------
11621612 54822 204
74 25 43096
10508 and 10509 5131
1 21930 5131 33586
33586

CONSUMPTION_RELEASE_ID = 43096 is created.

only one release is created against two standard POs.
It means Standard Purchase Order and consumption release is not one to one
relation
9) Correction Process

Business Case 1:
When Blanket price is incorrect and goods have not been received.
Required Corrections – Update the PO Blanket Price.

Business Case 2:
When Blanket price is incorrect and goods have been received and are
waiting QC inspection.
Required Corrections –
 Use the Receiving-> Corrections back out the quantity received (Optional,
not required because price is based on Blanket PO).
 Update the price on both the Blanket PO and the Standard PO that was
issued for the release.
 Re-receive the Standard PO and move to QC Inspection (only required if
receipts were backed out).

Business Case 3:
When Blanket price is incorrect and goods have been consumed and
consumption advice has been matched to
Required Corrections -
 Update the PO Blanket with the correct price so future Consumptions will
be created with the correct price.
 Match required credit or debit memo to the Consumption Advice (PO) to
correct the amount to be paid.