Creating Consignment Purchase Orders

The Vendor Consignment Inventory program lets the distributor handle specified products for the vendor. The vendor retains ownership of the products, but the distributor stores and sells the products for the vendor, usually in exchange for a percentage of the sale amount. The system keeps consignment inventory and normal stock inventory separate.

Within Purchasing, you have the option to buy the consigned inventory to replenish stock and eliminate the consignment cost.

For example, Jones Plumbing wants you to handle the consignment of the 600 chrome faucets because they are unable to sell them individually. You find that after two months, you have sold 300 of them. You decide to purchase the rest of the consignment and ship the faucets to the rest of your branches. You create a consignment purchase order, "ordering" the 300 faucets and transferring the faucets to your inventory. You save the cost of freight or vendor charges.

To change consignment inventory from the Product Location Maintenance screen, see Moving Vendor Consignment Inventory.

Consignment Transfers

You can also procure consignment stock from another branch. See Consignment Transfers for more information.

Creating Consignment Purchase Orders

The system keeps consignment inventory separate from regular inventory. When you purchase consignment inventory, there are two steps: creating a consignment purchase order and receiving that purchase order. You have to receive the purchase order to move the consigned inventory to your regular inventory count. See Receiving Consignment Purchase Orders.

Note: If you transfer items on consignment, the transfer is received at the receiving branch as quantity type "S" for Stock and tagged to the consignment vendor.

To create a consignment purchase order:

From the Purch menu, select Purchase Order Entry to display the Purchase Order Entry screen.
In the PrcBr field, enter the branch for which you want to purchase the consigned inventory.
In the Ship-From field, enter the vendor name whose inventory is on consignment and press Enter to display the selection screen.
Select New from the list and press Enter to display the consignment prompt.

Note: The vendor must be a consignment vendor. For more information, see Setting Up Consignments.

At the Is This a Consignment PO? prompt , type Y and press Enter to display the Consignment Shipment screen.

Note: You must have the POE.CONSIGNMENT.ALLOWED authorization key assigned to create a consignment purchase order. If this prompt does not display, check your authorization level.

In the Qty and Product Description fields, enter the amount and description of the consigned inventory you want to buy.
Press Esc to display the Status screen.

The order status is Open.

Press Esc to commit the consignment purchase order.
Press Esc to return to the main menu.