Has anyone been able to accomplish consignment inventory in E10? If so how did you do it?
The past posts I have found are over 15 years old.
I found that it was trouble but here goes:
I established a warehouse called Consignment with Bins for each customer. You could also establish a Warehouse for each customer with one bin. Using the former allows you to view the consignment for a specific customer if you wish. DO NOT
tag the bins as supplier or customer bins. That will screw you up.
- Ship any parts to the customer using a Miscellaneous shipper. This gives you paperwork for traceability.
2 Bin Transfer those parts to the appropriate bin if inventory or receive to inventory straight into the bins from manufacturing.
Q: How will you be notified that the material has been consumed?
-
When consumed, create a customer packing slip with the items consumed.
-
Invoice to customer.
Rinse and Repeat.
You will need to reconcile (cycle count) the inventory periodically. I suggest getting an inventory report from the customer monthly.
Make sure you keep all of your transfer paperwork in order to reconcile.
Charlie Smith
CRS Consulting Svcs
(860) 919-1708
1 Like
Are you saying if you donât own the Supplier or Customer managed inventory modules do not tag the bins or have you found the Epicor solution not satisfactory?
Mark W.
For consignment inventory, correct.
What is the âEpicor Solutionâ?
Would anything different need to be done if we are consigning for a supplier? Where the supplier would bill us based on what material is used sitting in our warehouse.
Supplier Managed Inventory. Itâs not an expensive module. Thereâs also an associated Customer Managed Inventory module as well. From Help:
Supplier-Owned Purchase Orders
The purchase order being received is for inventory you are typically purchasing and storing on consignment from a supplier. When you receive supplier-managed purchase orders, the following processing takes place:
â˘When you receive a supplier-managed purchase order, it must be received into a bi designated as Supplier-Owned in the Type field in Warehouse Bin Maintenance (for the warehouse in which the purchase order is being received). The supplier code associated with the bin must match the supplier code on the purchase order. If they do not match, an error code is displayed and you cannot proceed with the purchase order receipt until you select an appropriate warehouse bin.
â˘In the case of line side bins where the Supplier will monitor the quantity levels on daily or weekly basis, the end user will need to manually key in the recorded quantities.
â˘At the time of receipt, the Epicor application updates the purchase order release/line items and on-hand quantities for the managed inventory. For example, if 25 units are received fora supplier-managed purchase order quantity of 50, the Epicor application increases the on-hand quantity by 25, and updates the purchase order release/line item, identifying that 25 out of 50 units have been received to-date.
â˘It also updates the on-hand quantity in the supplier-managed bin to which the purchase order is being received. It sets the purchase price for the receipt to zero, regardless of the prices entered on the purchase order being received.
â˘Upon completion of the receipt, the Epicor application creates a transaction with a type of SMI-STK (Supplier Owned Inventory - Stock), which is similar to the standard PUR-STK transaction, but identifies the put away transaction as supplier-managed. It also identifies the supplier associated with the received inventory.
â˘The Epicor application tracks the resulting inventory with a Supplier ownership attribute that determines the pricing, taxes, duties, landed costs and currency treatments that should be applied. This affects all inventory transactions, costing,valuations, financial and tax reporting.
It performs no updates to the accounts payable or to the financial ledgers at the time of receipt. It only updates ledgers when the received supplier-managed inventory is actually consumed.
I have not looked at the Supplier Managed or Customer Managed modules, so I have no opinion on them. The process I used (and outlined) did not include those modules.
Charlie
BTW, Supplier managed is parts consigned to you that you have not paid for yet and Customer Managed are parts that have been paid for that you have not shipped as yet.
Charlie
@Mark_Wonsil
Hi Mark,
How does ap invoice entry work?
We expect to get an invoice from the supplier when the parts are consumed. This appears to be a partial invoicing situation.
For your example, the supplier stocked a tool cabinet with 25 pieces. We receive those against the supplier managed PO.
During the month, we consume 10 tools. Supplier comes back, makes note of what we consumed and sends an invoice for 10 tools. We match the invoice against the receipt of 25, but its only a partial.
Does that sound correct?
Thanks,
Erik
Hi Erik,
It looks like once the material is issued to the job, a receipt is then created. This gives AP a receipt line to pull when invoicing.
Hope this helps.
Thanks,
Courtney
What about parts (a robot) that the Customer has purchased and sent to our plant to have programmed and integrated with the rest of the system we are building for them and which we will install at their plant?
We didnât purchase so didnât want to receive against the job as no PO, the programming is a job. But shipping, etc. We are keeping manual paperwork right now.
Weâve got a similar situation in our processes. So far the manual paperwork is the only way weâve found to keep up with the items. We have thought about generating some $0 POs (part on the fly as a material on the job) so there would be a trail from the customer sending us the parts, but we havenât had time to look into it yet.
I donât like doing things without the paperwork. It always creates variances to proper procedures.
I see two ways to handle situations where a customer sends you something that needs work.
- create a zero dollar PO - Receive it to the job. this tracks the receipt, and where it was put.
- create an RMA - (Yes, an RMA)⌠tell the customer to send the item to you using the RMA number. When it arrives, you âinspectâ it⌠once inspected, you disposition it to the job that will consume it. Again, this tracks the transaction and allows you to put information about the part as it arrives.
3 Likes
In the 9 release, apparently there was a module called Customer Managed Inventory that is designed to track inventory that belongs to a customer. This inventory is not included in your inventory value and is located in a bin specified for that customer. There is no separate menu option for this, it is incorporated into the other modules. When entering a PO, the Type has a drop Down and you can select Customer Manager. When you add a bin, you can indicate that it is a Customer Managed bin and indicate who the customer is whose parts are in that bin. Customer Managed Bins do not affect your Inventory Value.
In the Epicor University area, look for Epicor ERP
Inventory Management - Specialized Processing Course 10.2.70
E10/Kinetic as well. The number one user issue while trying to set up the customer managed PO is looking for the customer while creating a PO.
You need to create a supplier which is the same name as your customer. In customer Maintenance, in the new menu select âadd managed supplierâ. This will keep everything linked up and working properly. Any material you receive from any of the customerâs managed suppliers can be put into one of those customerâs bins. There are many business cases where a customer may want material drop-shipped to you. This is how to track it and consume it cleanlyâŚ
I havenât been able to figure out how to set inspection required for parts that are considered CMI. I have set the part class to inspection required and I have also set the supplier (also customer) up as inspection required but when I create a CMI PO it leaves that box unchecked and unable to edit.
Does anyone know if the system will allow CMI parts to go through incoming inspection like every other part?