Non-nettable bins

Epicor ERP 10
1

We manufacture parts that get shipped to a customer’s site.

Part shipments to this location are considered consignment inventory.

The inventory remains ours until they pull it from this consignment location. We book revenue after it is pulled.

This seemingly suggests the warehouse bin should NOT be non-nettable, since it is our inventory as it sits in consignment and should be counted as such.

However, the wrinkle is that I don’t want MRP to look at the inventory that sits here as a source of supply because additional, incremental demand for parts that sit in consignment could be forthcoming and regardless of whether consigmment shows inventory on-hand, I want MRP to create additional POs and jobs for the new demand.

So, with these two dueling ideas, should this warehouse bin be nettable or non-nettable?

2

MRP does not consider quantity in non-nettable BINs as supply.

Inventory balances stored in non-nettable bins are not included in on-hand quantities, in MRP calculations, are not considered as a source of supply inventory for fulfillment processing in the Fulfillment Workbench, nor as source of supply inventory for the Replenishment Workbench.

3

I appreciate the response.

I do understand what non-nettable does and does not mean.

I am a little confused on whether in my specific situation this warehouse bin should be set up as nettable or non-nettable.

4

the BEST way to handle consignment inventory is to create a separate SITE to put all this inventory into. You can even automate the replenishment of this site… here are the basic steps:
1. create new “Consignment Site” - depending on if your customers share part numbers, you could either put multiple customers into one site (with a different warehouse per customer) or special consignment per customer (if they use the same part numbers).
2. Min/Max/Safety: in the new site, specify the min/max/safety for each of the parts that you are suppose to keep on hand in the site. Also, specify that the item is a TRANSFER item, and that you transfer it from the main site.
3. Place all your customer orders to be shipped from the Consignment site. This way as the customer reports what they consumed, you simply ship their order, and it reduces your site qty.
4. Replenishment: When MRP runs, it will see the quantity is reduced, and will automatically suggest TRANSFER ORDERS to be created to move inventory to the new site.

2 Likes
5

Appreciate the response Tim.

As of now we are not using the multi-site module.

6

We use same site and set up a separate warehouse with a normal nettable bin. We add the Warehouse to the Part, set the Warehouse Bin to show Replenishment Type - Multiple, pull from the Main Warehouse with a min/max qty. Then up the main part min qty. Since the min qty is set on each whse and the main part, we receive accurate PO suggestions (not a pull form the wrong whse). When a consignment part is used it will create a suggestion to buy more as well.