With this type of inventory contract the goods are owned by you but physically stored at the customer’s warehouse site.
If a Wholesaler Consignment Stock (WCS) inventory contract has been set up and initialized in your system, all sales, movements, and returns for items managed by this type of contract must be done from and/or connected to the inventory contract depending on the procedure you want to perform. For such a contract the following can be performed:
- Sell the goods and charge the consumption of the consumed (i.e. sold) quantity
- Move the goods from the customer’s warehouse site (set up in your system) to your own warehouse site
- Return the goods and ownership to the supplier
Sell the goods and charge the consumption of the consumed (i.e. sold) quantity
Sales, meaning that the customer calls off your wholesaler-owned goods that have been consumed (i.e. sold), for a WCS-contract line can take place on a “normal” sales order. But it is more likely that you would create a special charge consumption order from the CMI-process (see below) or by linking to the WCS-contract when the sales order is manually created.
When you want to sell the goods that are stored at your customer’s site you must charge the consumption of the consumed quantities. You can do it using one of the following two alternatives:
- the CMI process (i.e. Charge consumption option on inventory contract line level)
Or
- by manually creating the sales order (and sales order lines) and linking the WCS-contract to the sales order.
- Via the Charge consumption CMI process
- Select the Work with inventory contracts menu item.
- Highlight the WCS-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. Keep the quantity as is, or change to that applicable. 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. The status of the sales order will be set to 45 (i.e. the line is ready to be invoiced).
- (Or) Via manual creation of sales orders and sales order lines
- 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.
- Enter a warehouse manually during sales order entry. When a sales order is created, it is possible to enter a default “From warehouse”. It is also possible to manually enter a warehouse on the sales order line panel. If the defaulted or entered warehouse is a WCS-warehouse, a search will take place to find the inventory contract automatically. This will be done even if auto-sourcing is not on for the sales order.
- If a sourcing policy was set up in your system, and it contains the warehouse used for WCS inventory contracts, and auto-sourcing is configured, you do not need to make a reference to the inventory contract during sales order entry. As a result of the auto-sourcing, the sales order line will be sourced using this inventory contract.
- Select the Work with sales orders menu item.
- On the Work with sales orders, Header view panel, add a sales order.
- 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).
- Print the invoice, either via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item.
Note: It is recommended to use the sales order type that has been set up for WCS-contracts. If you choose to use a different sales order type, it must be defined to 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 WCS inventory contract during sales order entry:
| 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:
Order line created If you consumed (i.e. sold) the entire quantity for the line, the following post has also been created: Contract line was closed For those posts, the following is also listed: – The date it was created – The time it was created – Type of order (in this case 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 procedure below). |
On hand has been reduced by the quantity you sold. If you sold the entire quantity, this field will be blank.
Consumed has been updated with the quantity you sold. Disp not invoiced has been updated with the quantity that you sold but has not yet been invoiced. Available has been reduced by the quantity that you sold. If there is still a quantity remaining to be sold, it will be listed. |
For the WCS-warehouse:
Net on hand and Available quantities have decreased. |
For the WCS-warehouse:
Available and On hand quantities have decreased. |
| 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 created – The time it was created – Type of order (in this case S for sales order) – Sales order number – Sales order type for the sales order. |
Disp not invoiced has been reduced by the quantity that you invoiced. |
Move the goods from the customer’s warehouse site to your own warehouse site
This CMI process can be run when you want to move the goods from the customer’s warehouse site (that is set up in your system for this inventory contract type) to one of your own warehouse sites (either a normal or trade warehouse that is set up in your system). Since they are goods that are moved between two of your own warehouses (set up in your system), normal IRO orders will be created.
- Select the Work with inventory contracts menu item.
- Highlight the WCS-contract and click the Lines option to drill down to the inventory contract line level.
- Highlight the applicable line and click the Transfer in-house option.
- You access the Work with inventory contracts, Create transfer to in-house order panel. Enter the To warehouse where you want to move the goods (must be either a normal or trade warehouse). If the internal customer/supplier information for the WCS-warehouse has been set up in the system, the Customer number (i.e. the internal customer) for the WCS-warehouse (i.e. the “To” warehouse) is defaulted. Keep the quantity as is or change to that applicable. You can choose to maintain the IRO sales order after creation by setting the Maintain order flag to YES. Click OK to create the IRO 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 IRO sales order. The corresponding IRO purchase order will automatically be created if the PO type is defined for direct printout of purchase order. Otherwise it has to be created from the Create IRO purchase order menu item.
- Print the sales order confirmation document via the Order confirmation option on the Work with sales orders, Header view panel if the sales order type was defined to print this document. Otherwise go to the next step (Print the pick list).
- Print the pick list, either via the Pick list option on the Work with sales orders, Header view panel or via the Print pick list menu item.
- Confirm the pick list for the WCS-warehouse. (See About pick list confirmation for instructions regarding the two different routines that can be used to confirm the picking. The Work with pickings program is described below.)
- Select the Work with pickings menu item.
- You access the Work with pickings, Pickings 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 your WCS-warehouse.
- What you choose to do next depends on the situation. It could be that not everything is ready to be confirmed, requiring you to change the line quantity, or you can perform a full dispatch. Perhaps you need to define the zone/location from where to pick the goods. See Work with picking for more information about the tasks available.
- Print the transport note for the IRO sales order via the Print transport notes menu item if the sales order type was defined to print this document. Otherwise go to the next step (Print the reception note).
- Print the reception note for the IRO purchase order 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.
- Confirm the reception from the internal supplier for the Physical warehouse (to which your Logical (Trade) warehouse is connected) OR the normal warehouse. (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.
- You access the Work with receptions, Reception 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 Physical warehouse (to which your logical (Trade) warehouse is connected) OR the normal warehouse, click the Select warehouse function key to change it to the applicable 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.
- Print the invoice for the IRO sales order, either via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item.
| 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 posts have been created:
Order line created (for the IRO sales order) Order line created (for the IRO purchase order) For each of these posts, the following is also listed: – The date it was created – The time it was created – Type of order (S for IRO sales order, and P for IRO purchase order) – IRO sales order number – IRO sales order type for the IRO sales order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this Transfer to in-house procedure. (Follow the remaining steps below). – IRO Purchase order number – IRO Purchase order type for the IRO purchase order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this Transfer to in-house procedure. (Follow the remaining steps below). |
On purchase order with the quantity on the IRO purchase order line for the WCS-warehouse. | For the Supplying warehouse, (i.e. the logical (Trade) warehouse or normal warehouse from which you are moving the goods):
Reservation quantity has increased and Available quantity has decreased. For the Physical warehouse (this is only updated if it is connected to a Trade warehouse): Reservation quantity has increased and Available quantity has decreased. For the WCS-warehouse: On order and Available quantities have increased. This is done when the IRO purchase order is created. |
For the Supplying warehouse, (i.e. the logical (Trade) warehouse or normal warehouse from which you are moving the goods):
Available quantity has decreased and Reserved quantity has increased. For the Physical warehouse (this is only updated if it is connected to a Trade warehouse): Available quantity has decreased and Reserved quantity has increased. For the WCS-warehouse: On order quantity has increased. |
| 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:
Order line picked (for the IRO sales order) For the above post, the following is also listed: The date it was created The time it was created Type of order (in this case, S for IRO sales order) IRO sales order number IRO sales order type for the IRO sales order. |
On hand has decreased with the quantity that you picked on the IRO sales order line for the WCS-warehouse.
Reservations has decreased with the quantity that you picked on the IRO sales order line for the WCS-warehouse. Consumed has increased with the quantity that you picked on the IRO sales order line for the WCS-warehouse. |
For the Supplying warehouse, (i.e. the logical (Trade) warehouse or normal warehouse from which you are moving the goods):
Net on hand and Reservation quantities have decreased. For the Physical warehouse (this is only updated if it is connected to a Trade warehouse): Net on hand and Reservation quantities have decreased. |
For the Supplying warehouse, (i.e. the logical (Trade) warehouse or normal warehouse from which you are moving the goods):
On hand and Reserved quantities have decreased. For the Physical warehouse (this is only updated if it is connected to a Trade warehouse): On hand and Reserved quantities have decreased. |
| 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:
Order line received (for the IRO purchase order) For the above post, the following is also listed: – The date it was created – The time it was created – Type of order (in this case, P for IRO purchase order) – IRO purchase order number – IRO purchase order type for the IRO purchase order. |
On hand with the quantity that you received on the IRO purchase order line for the WCS-warehouse.
Available with the quantity that you received on the IRO purchase order line for the WCS-warehouse. |
For the WCS-warehouse:
Net on hand quantity has increased and On order quantity has decreased. For the available quantity, the same quantity is available as described in the previous updates. |
For the WCS-warehouse:
On hand quantity has increased and On order quantity has decreased. |
Return the goods and ownership to the supplier
This process can be run when you decide that you no longer want to own the goods that are located at the customer’s warehouse site (the WCS-warehouse set up in your system for the inventory contract type). You want to send them back to the supplier, and give back the ownership to the supplier. A “normal” return order is created. The exception is that you do not have any goods that have to physically be returned from your own WCS-warehouse. But the reception routine has to run for the return order (unless the order type for the return order is defined for immediate return), to be able to get the correct update for the logical WCS-warehouse.
- Select the Work with inventory contracts menu item.
- Highlight the WCS-contract and click the Lines option to drill down to the inventory contract line level.
- Highlight the line and click the Return to supplier option.
- You access the Work with inventory contracts, Create return to supplier order panel. Enter the supplier to whom you are returning the goods (i.e. that you want to take back the goods and be the owner). 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 and return to the Work with inventory contracts, Lines panel. The 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.
- 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 (if the order type used for the return order is not set up with an immediate return). This must be done for your WCS-warehouse even though you will not physically receive the goods on the line. (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.
- You access 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 your WCS-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.
| 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:
Order line created For this post, the following is also listed: – The date it was created – The time it was created – Type of order (in this case P for purchase order) – Purchase order number for the return purchase order – Purchase order type for the return purchase order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this Return to supplier procedure. (Follow the remaining steps below). |
Available has decreased with the quantity that you are returning for the WCS-warehouse.
On return order with the quantity on the return purchase order line for the WCS-warehouse. |
For the WCS-warehouse:
Available quantity has decreased. |
For the WCS-warehouse:
Available quantity has decreased and Reserved quantity has increased. |
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.
| 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:
Order line received If you consumed (i.e. returned) the entire quantity for the inventory contract line, the following post has also been created: Contract line was closed For those posts, the following is also listed: – The date it was created – The time it was created – Type of order (in this case P for purchase order) – Purchase order number for the return purchase order – Purchase order type for the return purchase order. |
Available has decreased with the quantity that you returned.
On return order has decreased with the quantity that you returned. Consumed has increased with the quantity that you returned. |
For the WCS-warehouse:
Available quantity has decreased. |
For the WCS-warehouse:
Available, On hand and Reserved quantities have decreased. |
Related topics
- About consuming goods from Contract Managed Inventory (CMI)
- Consuming goods from a Customer Deposit Stock (CDS) inventory contract
- Consuming goods from a Supplier Consignment Stock (SCS) inventory contract
- Consuming goods from a Logistic Supplier Consignment Stock (SCS) inventory contract
- Consuming goods from a Wholesaler Deposit Stock (WDS) inventory contract
- Consuming goods from a Customer Buffer Stock (CBS) inventory contract
- Consuming goods from a Wholesaler Buffer Stock (WBS) inventory contract
- Consuming goods from a Deferred Indent Stock (DIS) inventory contract
- About Contract Managed Inventory (CMI)