Easy OnBoarding Consignment Receiving Easy OnBoarding Course Overview

Easy On-Boarding Consignment Receiving

Easy On-Boarding Course Overview • Introduction to Consignment Receiving • Business Overview • Processing Consignment Receipts 2

Easy On-Boarding What Is Consignment Inventory? • Inventories, generally of finished goods, that are in the possession of customers. . . but remain the property of the manufacturer by agreement with those in possession. • The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. • APICS Dictionary (Twelfth Edition, 2008) 3

Easy On-Boarding Why Consignment Inventory? • • • Pay only for what’s been used Decrease Inventory investment Less Inventory obsolescence More supplier responsiveness Suppliers manage their own inventory 4

Easy On-Boarding Life Cycle 1 Stockroom Contract Consigned Inventory Receiving Inventory 2 Supplier 6 a Pay to No Inventory 3 $ Check Transfer Yes 5 Voucher Picking Shipping 4 6 b Manufacturing Invoices Accounts Payable Record Usage Distribution 5

Easy On-Boarding Life Cycle Flowchart Sign Contract Supplier Ships Order Incoming Inspection Inventory in Stockroom Receive ASN Receive Shipment Material Transfer Work Order Issue Picking Record Usage A Sales Order Select Only One of Four Options Distribution Order 6

Easy On-Boarding Life Cycle Flowchart (cont. ) A Invoicing Notify Supplier by Paper Notify Supplier by EDI Voucher Select Only One of Two Options ERS Payment 7

Easy On-Boarding Consignment Users QAD EA SE Establish Contract Receive/Inspect Receiving Stockroom Manufacturing Materials Manager Transfer Issue Backflush Consignment Transactions capture account bookings Buyer Reporting Voucher Usage A/P 8

Easy On-Boarding Purchase Order Maintenance 10

Easy On-Boarding Scheduled Order Maintenance 11

Business Overview 12

Easy On-Boarding Business Overview • • • Receive normally Defer ownership of material Defer voucher and A/P activity Satisfy MRP requirements Manage Consignment Inventory accounts Recognize “usage” - Multiple points of usage (Issue, Transfer) - Create audit trail - Trigger Voucher, ERS 13