Consuming goods from a Deferred Indent Stock (DIS) inventory contract

Charge the customer’s consumed quantity

This process must be run when the customer wants to use the supplier-owned goods. The customer calls off the supplier-owned goods that have been consumed. This can be done using one of the following alternatives:

the CMI process (i.e. Charge consumption option on inventory contract line level)
Or
via manual creation of sales orders and sales order lines and linking the DIS-contract to the manually created sales order.

Either way, a charge consumption order (sales order) will be created. No stock will be updated.

Via the Charge consumption CMI process

Select the Work with inventory contracts menu item.
Highlight the DIS-contract and click the Lines option to drill down to the inventory contract line level.
Highlight the applicable line and click the Charge consumption option.
You access the Work with inventory contracts, Create charge consumption order panel. Enter the quantity that the customer has consumed. You can choose to maintain the sales order after creation by setting the Maintain order flag to YES. Click OK to create the charge consumption (sales) order and return to the Work with inventory contracts, Lines panel. The inventory contract is automatically linked to the sales order line. Note: If anything on the sales order is erroneous, you will access Work with orders in error mode (Header or Line level) after you click OK, where you will have to correct the errors and then click OK to create the sales order.

(Or) Via manual creation of sales orders and sales order lines

Note: It is recommended to use the sales order type that has been set up for DIS-contracts. If you choose to use a different sales order type, it must be defined to not update stock on hand and it is recommended that the Invoice is the only document to print.

You can choose from the following to link the sales order line to the DIS-contract during sales order entry:

Manually link the inventory contract on the Create new panel, the sales order header, alternatively on the sales order line. For the sales order line location, you can do this on the Order line, Main info panel, or on the Customer and item info, Line entry panel when creating a new sales order line using full entry mode (i.e. you clicked the Cust info function key on the Order lines panel). When such a reference is defined, the entered lines are validated against the inventory contract and the warehouse is retrieved from the inventory contract.
A setting on the Inventory contract header controls the possibility to combine sales order lines (i.e. lines connected to an inventory contract and others not connected to an inventory contract) on a sales order when you define the contract number on the sales order header.

If the Off-contract sales flag is set to YES, and the warehouse for the non-contract item is included and activated in your sourcing policy, a warning will be issued, (denoting that the item is not found on the inventory contract and that normal sourcing will take place), but you will be able to add sales order lines for non-contract items to the sales order as well as items from other inventory contracts.

If the Off-contract sales flag is set to NO, an error message will be issued and it will not be possible to add a sales order line for a non-contract item to the sales order. It will also not be possible to add a sales order line for items from other inventory contracts. However, if this flag is set to NO and if the inventory contract is only defined on line level, it will still be possible to mix lines for this inventory contract together with non-contract items and/or items from other inventory contracts.
Use the Inventory contract availability program. Click the Inventory contr availability program function on the Order lines panel. All contract lines with an available quantity for a specific inventory contract will be listed. The inventory contract can either be the contract which was referred to (on the Create new panel) when the sales order was created, or another inventory contract which can be defined on this panel. You can leave the quantity as is or enter the applicable quantity for the line and then select the line to create the sales order line.
If a sourcing policy was set up in your system, and it contains the warehouse used for DIS-contracts, and auto-sourcing is configured, it will never automatically link to a DIS-contract within the auto-sourcing. If you want to link the sales order line to the DIS-contract, you have to create the sales order line using full entry mode, (i.e. click the Cust info function key on the Order lines panel to access the Customer and item info, Line entry panel), and manually link the DIS-contract in the Inv contract field.

Select the Work with sales order menu item.
On the Work with sales orders, Header view panel click the Add option.
Create your sales order and link the inventory contract to the line as per one of the choices above.
On the Work with sales orders, Order lines panel, complete the mandatory information and click OK to create the item. The inventory contract is linked to the sales order line. Assuming you connected the recommended sales order type on the manually created order, the status of the sales order will be set to 45 (i.e. the line is ready to be invoiced).

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

The following posts have been created:

Order line created

Order line closed (if the entire contracted quantity was consumed)

For these posts, the following is also listed:

– The date it was created/closed)

– The time it was created/closed

– Type of order (S for sales order)

– Sales order number

– Sales order type for the sales order that was set up for this CMI process and/or Inventory contract type. The order type dictates the remaining steps in this Charge consumption procedure. (Follow the remaining steps below).

The following is reduced with the quantity on the charge consumption sales order:

On hand and Available

The following has been updated:

Disp not invoiced has been updated with the quantity on the charge consumption sales order, but not yet invoiced.

Consumed has been updated with the quantity that has been consumed on the charge consumption sales order.

Print the invoice, either via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item to set the order status to 60 and complete the order.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

The following post has been created:

Order line invoiced

For this post, the following is also listed:

– The date it was invoiced

– The time it was invoiced

– Type of order (S for sales order)

– Sales order number

– Sales order type for the sales order.

The following has been updated:

Disp not invoiced is reduced with the quantity that was invoiced.

Consumed has been updated with the quantity that has been consumed on the charge consumption sales order.

A call off notification must now be run to inform the supplier of the goods the customer has consumed. See Notify the supplier of customer called-off goods below.

Notify the supplier of customer called-off goods

It is mandatory to notify the supplier about the quantity that the customer has called off to you and ended up on charge consumption orders. When a charge consumption order is invoiced, log file records will be created for the inventory contract line that is flagged for supplier notification. You must now run a call off notification. This can be done via one of two ways:

The Call off notification CMI process on inventory contract level. When you use this alternative, the selection fields are filled with the necessary information.
Or
The Create call off notification menu item. When you use this alternative, you must fill in your selections.

Either way, purchase order lines will be created for the total charged consumption. It is possible to create a purchase order line which holds the sum of all invoiced sales order lines, but it is also possible to get one purchase order line for each sales order line. The created purchase order will not update any stock on hand. It will only be used for financial purposes.

Note: If the purchase order type set up in the system for the purchase order that is created during the running of the call off notification is defined with an immediate reception or no document printout for Order, no purchase order printout (i.e. call off notification document) will be printed that can be sent to the supplier. Hence, how you notify the supplier will be up to you (e.g., by email or some other means).

Select either the Call off notification CMI process on inventory contract level for the DIS-contract, or the Create call off notification menu item.
You access the Create call off notification panel. Complete the application selection parameters and click OK.
If any information is missing for the purchase order, you will access the applicable purchase order panel where you must enter the missing information. After clicking OK, one or several purchase orders will be created (depends on how many inventory contract lines were invoiced). The log file for each (applicable) inventory contract line will be updated:

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

The following post has been created:

Call off notification created

For this post, the following is also listed:

– The date it was created

– The time it was created

– Type of order (P for purchase order)

– Purchase order number

– Purchase order type for the purchase order that was set up for this Call off notification procedure. If the purchase order type was set up as an immediate reception or no document printout for Order, no purchase order printout (i.e. call off notification document) will be printed. You will have to notify the supplier in some other way.

If the purchase order type was not set up as an immediate reception continue with the following steps:

Print the purchase order document (i.e. the call off notification document) via the Print order option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
Print the reception note via the Reception note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
Receive the line. This must be done for your Physical warehouse that is connected to your DIS-warehouse (if you used such a warehouse), or normal warehouse (if you used such a warehouse) even though you will not physically receive the goods on the line. You must run through the reception note confirmation to progress the purchase order through the system and close it. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.)

Select the Work with receptions menu item.
On the Work with receptions, Receptions view panel, the warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not the Physical warehouse that is connected to your DIS-warehouse (if you used such a warehouse), or normal warehouse (if you used such a warehouse), click the Select warehouse function key to change it to that warehouse.
What you choose to do next depends on the situation. It could be that not everything was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

Catch weight handling
If the order line was flagged for Catch weight handling, you will access the Work with receptions, Catch weights panel where you must enter the catch weight quantity for the order line. (See About catch weight handling for price units) The Quantity to add field displays the quantity that must be reported. Multiple catch weights can be entered for one order line, allowing you to have a separate weight for each individual item. All catch weights are then accumulated to be the price unit quantity for the order line and will also be used to re-calculate the order line value. As you report the quantity, the quantity in the Quantity to add decreases and the quantity in the Total actual qty and Total CW quantity fields increases. If a variance limit percentage range was set up for the item/purchase unit that is under catch weight handling, and the entered catch weight quantity exceeds the variance range limit that is set up, you will access the Override allowed CW variance panel where you must enter your signature ID and the security code for the signature to accept the exceeding quantity and continue with catch weight entry. When the entire quantity has been reported, click the Confirm catch weight function key to confirm the entered catch weight quantity(ies). A validation will be performed to check that catch weight has been entered for the entire quantity.

Take over the ownership of the supplier-owned goods but keep the stock physically located (externally) at the customer’s warehouse site

This process can be run if it is decided that a quantity shall be owned by you instead of the supplier, but the goods should still be physically kept (externally) at the customer’s warehouse site. Goods that you own that are physically located at the customer’s warehouse require an inventory contract of type WCS. (An existing WCS-contract for the same customer as on the DIS-contract must exist). A new inventory contract line will be added to the WCS-contract when this process is run for the DIS-inventory contract line. A purchase order, which is linked to the WCS-contract, will be created. The purchase order will be used for financial purposes, but must also update stock on hand since the purchased goods have to be received for the WCS-warehouse that is set up in your system.

Select the Work with inventory contracts menu item.
Highlight the DIS-contract and click the Lines option.
Highlight the line and click the Ownership takeover option.
You access the Create ownership takeover (purch) order panel. Keep the quantity as is or change to that applicable. Enter the WCS-contract in the New invent contract field denoting the WCS inventory contract to which the quantity will be transferred. A new inventory contract line will be created for the WCS-contract. The warehouse for the purchase order created will be retrieved from the WCS-contract. You can choose to maintain the purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order. The WCS inventory contract is automatically linked to the purchase order line. Note: If anything on the purchase order is erroneous, you will access the panel where the error exists (Header or Line level) in the Work with purchase orders program after you click OK, where you will have to correct the errors and then click OK to create the purchase order.

For the DIS-contract, click this link to expand and view the information that has been updated:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

The following post has been created:

Ownership takeover

If you transferred the entire remaining quantity for the inventory contract line (i.e. no available quantity exists), the following post has also been created:

Contract line was closed

For these posts, the following is also listed:

– The date it was created

– The time it was created

On hand quantity has decreased with the quantity that was taken over.

Consumed quantity has increased with the quantity that was taken over.

Available has decreased with the quantity that was taken over.

For the WCS inventory contract, a new inventory contract line has been created.

For the WCS-contract, click this link to expand and view the information that has been updated:

Log file for the line (WCS)

(Highlight the line and click the Log file option)

Inventory contract line details (WCS)

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following posts have been created:

Contract line was created

Order line created

For those posts, the following is also listed:

– The date they were created

– The time they were created

– Type of order (in this case P for purchase order)

– Purchase order number for the purchase order

– Purchase order type for the purchase order that was set up for this CMI process and Inventory contract type. The order type dictates the remaining steps in this Ownership takeover procedure. (Follow the remaining steps below).

On purchase order has been updated with the quantity on the order.

For the WCS-warehouse:

Available and On order quantities have increased.

For the WCS-warehouse:

On order quantity has increased.

Print the purchase order document via the Print order option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
Print the reception note via the Reception note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
Receive the line. This must be done for your WCS-warehouse even though you will not physically receive the goods on the line (since they will physically remain at your customer’s site but you own them). You must run through the reception note confirmation to progress the purchase order through the system and close it. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.)

Select the Work with receptions menu item.
On the Work with receptions, Receptions view panel, the warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your WCS-warehouse, click the Select warehouse function key to change it to that warehouse.
What you choose to do next depends on the situation. It could be that you have decided to not take over the ownership of the entire quantity, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

When the reception has been confirmed for the WCS-contract, click this link to expand and view the information that has been updated:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created for the WCS inventory contract line:

Order line received

For this post, the following is also listed:

– The date it was received

– The time it was received

– Type of order (in this case P for purchase order)

– Purchase order number for the purchase order

– Purchase order type for the purchase order.

On purchase order quantity has decreased by the quantity received.

On hand quantity has increased with the quantity received.

Available quantity has increased with the quantity received.

For the WCS-warehouse:

On order quantity has decreased and Net on hand quantity has increased.
Note: For the available quantity, the same quantity is available as described in the previous updates. However, depending on the delivery date for the PO, perhaps not all dates were updated as available. After the reception all dates have been updated as available.

For the WCS-warehouse:

Available and On hand quantities have increased and On order quantity has decreased.

This item and quantity is now available for sale like any other item and quantity that the customer owns and must be done via the WCS-contract. See Consuming goods from a Wholesaler Consignment Stock (WCS) inventory contract for the CMI processes that can be run for this type of contract.

Charge the customer’s consumed quantity

Notify the supplier of customer called-off goods

Take over the ownership of the supplier-owned goods but keep the stock physically located (externally) at the customer’s warehouse site

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