Oracle EBS Consignment Business Summary

General statement:

• The consignment relationship between the purchaser and the supplier must be clarified through a blanket purchase agreement (BPA), and the various terms of the agreement;
• Identify suppliers of materials and distribution rules through source replenishment rules (Sourcing);
• Define the relationship between the material and the supplier, the supplier location and the BPA through a qualified supplier list (ASL), defining the material to be procured as consignment material to the supplier;
• Purchase consignment materials using standard PO;
• The consignment material before the consumption of any record, but in the inventory can be found in the hand, and participate in the MRP operation, only the asset owner is the supplier; When the consumption occurs automatically according to the BPA Generation BPR (Package release), the BPR does not need to receive, the system automatically shut it off, The system automatically enters the payable invoice according to the BPR, and 2-way matches with the BPR;
• Consignment Business is Oracle by adding "material consumption automatically according to the BPA Generation BPR (Package release), BPR does not need to receive, and automatically close the shipment, and then create a reduction notice to generate the invoice" is its clever, through the smallest development, to achieve the original from the Inv, PO, A natural transition to the AP!

1. System settings
   1. Item: The consignment item cost attribute must be "inventory asset value", "Approved vendor" must be enabled in the purchase attribute, (to be determined at the material level for consignment at the material level);
   2. Supplier: Suppliers who provide consignment materials must maintain the "payment method", "Invoice summary layer" attribute;
   3. SOURCE Supplement Rule (SR):
   4. Blanket purchase Agreement (BPA)
   5. Qualified supplier list (ASL):(can determine whether the material is consigned at the supplier level) qualified vendor line-point properties associated with BPA; Enter Inventory tab, select Supplier delegate, create consignment relationship;

1. Order process
   1. Standard purchase Order
   2. Purchase receipt
   3. Purchase Warehousing
   4. Create consumption: System default sales order issues; WIP issues; Inter_organization transfers; Miscellanous issues; Four kinds of transactions automatically trigger transfer to Regular; In the inventory Setup-transaction processing-reduction settings can be added to define these four kinds of transactions outside the trigger transfer to Regular;
   5. Create a decrement notification: inv--report--Transaction processing--run "Create a decrement notification"

inv--Report--Consignment processing--can view consignment material details and create BPR

1. Generate Invoice: po--report--Run the "' by receiving invoicing ' auto-invoicing program", "' by receiving invoicing ' automatic Invoicing program" After the request is run, the "Payables Management System Open Interface Import" automatically generates a/P invoice;

1. Attention and control points
   1. Item owner
   2. Consignment transaction Processing: Two types of consignment transaction type Transfer to regular real right moved to the purchaser; Transfer to consigned the real right to the supplier;
   3. Returns: three kinds of cases
      1. No consumption after purchase, purchase standard purchase order return;
      2. The non-created BPR is consumed, the reverse process of consuming the transaction is performed first, then the transfer to consigned is executed to move the property to the supplier, and then the standard purchase return process is executed;
      3. The BPR has been consumed and created: miscellaneous (miscellanous issues Consignment of miscellaneous and normal, need to be able to throw the party transfer) transactions from the assets of the miscellaneous, and then miscellaneous into the consignment library, and then execute the standard purchase returns;
   4. Consignment Inventory Platform: can check the consignment materials in hand, the reduction notice, receiving, consumption, and material transaction processing;
   5. Invoice payable: Automatic generation, not manual entry;
   6. Cumulative pricing: Purchase option parameters segment price Type patent must be selected "cumulative"; (po-purchase option setting)
   7. Price traceability (price can be changed): Standard PO and BPA price can be changed, price traceability and accumulative pricing cannot be used simultaneously, price traceability does not support encumbered environments.
      • Presets file Po:allow Retroactive Pricing of Pos must be set to "all releases",
      • The archiving mode for BPA must be approve (po-document type setting)
      • The value must be set for the "retroactive price adjustment account" on the Receive option. (po-receive option setting)

• You must run the request "purchase document traceable Price Update" to bring the changed price to the BPA;
• Invoice must not be generated;

1. Invoice generation should be periodic (one months or a quarter, not suitable for daily or real-time operation), otherwise there is no opportunity to achieve cumulative pricing or price traceability;

From:http://blog.vsharing.com/nicr/a1359214.html

Oracle EBS Consignment Business Summary