ORACLE EBS R12-How much does the consignment function know

Source: Internet
Author: User

The supply of materials by consignment is a way for manufacturing to achieve zero inventory management. Put things in my place, when not, things or suppliers, when used, press the "installed" quantity to pay. This business model, for the increasingly fierce competition in the home appliance industry, is very important. Stock is zero, inventory occupies zero capital, inventory turnover rate of 100%, the enterprise's cash can flow faster, this should be the wish of all enterprises.
Founded in 92, the formal use of Oracle 10.7 ERP system in 98, when the company is still small, no consignment business, there is no supplier willing to engage in consignment, for the supply side, the material is shipped, I hope to receive payment, who is not willing to bear the funds accounted for and the money to recover the risk of life. About 2000 years ago, the company achieved a small portion of the consignment supply of materials. However, since the 10.7 version of the ERP system does not enable the consignment function, then the consignment is only a compromise way, when the order storage is "receive-test-accept" mode, the first step as consignment warehousing, only when the real "installed" after the two steps to confirm the storage, in order to differentiate the consignment business. Of course, this kind of compromise, for inventory management and accounting, there are drawbacks. Later, through the development of peripheral systems, procurement platform, Phase I, two projects, consignment orders transferred to the procurement platform for management, "installed" in the first storage and then out of the library, to solve the inventory management and accounting impact, but the impact of planning work is highlighted, because it is the peripheral system management, This part of the inventory data cannot be extracted when the ERP system runs the plan.
The management of consignment materials is a key business content of ERP system upgrade. By upgrading to the ERP R12 version, the previous stages of the problem are circumvented, the real implementation of consignment material warehousing does not produce accounting information, inventory can be managed by suppliers, consignment inventory into the operation of the MRP, the three point of the most important management purposes, at the same time, the operation has brought unprecedented cumbersome.
(i) Basic functions of consignment procurement
1. Consignment materials must maintain a list of approved suppliers and be associated with the latest and valid blanket purchase agreement and its line number. That is, with the consignment feature enabled, the blanket protocol feature must be enabled. In fact, whether to enable the blanket agreement to manage the purchase price is not the focus of the problem, mainly for the parts of the manufacturing industry, most of the material purchase price changes one months, the maintenance package of the workload is very heavy, we have to develop a package of protocol import function.
2. Enable the function of sending and selling. While maintaining the list of approved suppliers, check the inventory delivery function, otherwise, the consignment business process is still not open.
3. The line price of the package agreement shall be understood as the agreed price, and the segment price will be the actual settlement price. When the enterprise and the supplier cannot determine the settlement price in time, it is tentatively estimated as the agreement price, which is the logic of the price value when the consignment material carries on the related transaction processing (two times development implementation).
4, the consignment purchase order release, with the ordinary purchase order of the same way, but the consignment of the purchase order of the delivery function is checked, otherwise, is the ordinary purchase order.
(ii) consignment inventory Basic functions
1, consignment material according to consignment order warehousing, does not produce accounting information. When viewing consignment inventory, you can see the owning party--different suppliers.
2, the use of consignment materials, the first transfer from the consignment warehouse to the company's inventory, and then send the inventory transaction processing, this operation is to transfer the client (supplier) inventory to the trustee (the Enterprise), which is a dominant transfer of ownership. You can also set the transfer of ownership to an implicit transfer of ownership, whereby the system automatically transfers ownership when the consignment item is transferred from the consignment inventory to the company's inventory.
3, the standard consignment function, do not allow returns. This point for domestic enterprises, seems to be very strong, mainly because the domestic market competition mechanism is not sound, is not a fair competition, the supply and demand sides are not in an equal position. In order to meet the actual business needs, we have again developed two times, that is, before the creation of a reduction notification, can be reversed, that is, transferred from the company's sub-Library to the supplier sub-Library (consignment subpackage). Of course, when a return has occurred after the creation of a reduction notification, it can only be processed by means of a replacement or miscellaneous.
4, consignment purchase order price, no practical significance. When a consignment item is used for owner transfer, the inventory value and accrued liability amount are calculated according to the blanket agreement associated with the approved vendor list for the item. This value logic is also the time to run a blanket agreement to create a reduction notification.
(iii) Consignment business settlement
1, the consignment vendor's invoice settlement parameters must be set to the purchase order, the matching option is also a double item.
2, before the consignment business settlement, must run the creation of a reduction notice, the purpose of this operation is to issue a blanket agreement, so that the financial settlement can be issued by the record to match the accrued liability details.
3, due to the consignment of inventory business carried out two times, therefore, there is a part of the consignment material ownership transfer of the loss can not be successful. Mainly because of the opening of the return function, in the reduction of the time, it is necessary to consider the number of return parts. When the number of items to be used is less than or equal to the return quantity, the reduction of the picking portion remains pending.
4. The quantity of the consignment material to be matched is taken from the issue of the blanket agreement, and the price is based on the date of issuance to match the price of the vendor's blanket agreement segment date (two development).
According to the above, it is not difficult to see that the standard consignment function of R12 system can not be popularized in domestic manufacturing industry. In order to apply this consignment function, we optimized the business process, and carried out a number of two development, only to be able to operate. Of course, the relevant supplier name and its location of the normative management is not within. All in all, before enabling Oracle's consignment function, carefully weigh this function for the development of enterprises, can bring substantial benefits, and speed up the business process to bring about the benefits of more than the benefit of the company's development.

ORACLE EBS R12-How much does the consignment function know

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