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Consigned Inventory Flow

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2010 Oracle Corporation Proprietary and Confidential

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2010 Oracle Corporation Proprietary and Confidential

Safe Harbor Statement

The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decision. The
development, release, and timing of any features or
functionality described for Oracles products remains
at the sole discretion of Oracle.

2010 Oracle Corporation Proprietary and Confidential

<Insert Picture Here>

Consigned Inventory Flow

September 14, 2011
James Phipps and Sean Smotrilla, Oracle Support

Agenda
Overview of Consignment
Flow
Q&A

Agenda
Overview of Consignment
Flow
Q&A

Consigned Inventory From Supplier

Tracking material in your warehouse
Maintain goods ownership with supplier
NOTE: Consigned Inventory to Customers is not covered in this presentation. It is an
inventory tracking method that lets you manage inventory at your customer sites
while maintaining material ownership.

Consigned Inventory From Supplier

Benefits of Consignment
Supplier
1. Does not need to store material
2. Reduced delivery costs, less rush orders, transportation efficiencies
3. Material closer to point of sale

Buyer
1. Reduced lead time
2. Reduced funds invested
3. Easier access to material

Agenda
Overview of Consignment
Flow
Q&A

Agenda
Overview of Consignment
Flow
1. Receive Material
2. Consume Material
3. Run Consumption Advice

Q&A

Overall Flow

Agenda
Overview of Consignment
Flow
1. Receive Material
2. Consume Material
3. Run Consumption Advice

Q&A

Receive Material

Note: Receiving Inventory

Receive Consigned stock into an Inventory Organization
Value of consigned stock will not be accrued to the material
valuation accounts by Costing.

Flag On-hand Quantity

Consigned and VMI flag
Type: Flags the inventory as owned or not
Organization id: Supplier site owning the material

MTL_ONHAND_QUANTITIES_DETAIL

OWNING_TP_TYPE
OWNING_ORGANIZATION_ID
PLANNING_ORG_TYPE
PLANNING_ORGANIZATION_ID

Supplier Relationship

Agenda
Overview of Consignment
Flow
1. Receive Material
2. Consume Material
3. Run Consumption Advice

Q&A

Consume Material

Track Consumption
Consumption is tracked via MTL_CONSUMPTION_TRANSACTIONS.
TRANSACTION_ID: Linked to MTL_MATERIAL_TRANSACTIONS.
CONSUMPTION_PROCESSED_FLAG: Flags the transaction as billed or not.
Values: N, E, Y
BATCH_ID: Needs to be reset to reprocess error transactions

MTL_CONSUMPTION_TRANSACTIONS
TRANSACTION_ID
CONSUMPTION_PROCESSED_FLAG
BATCH_ID
ERROR_CODE
ERROR_EXPLANATION

Stock Conversion
Explicit: Convert consigned stock to regular stock and vice
versa
User-driven process Perform a Transfer to Regular transaction

Implicit: Consume Consigned/VMI stock when it leaves the

Organization or according the Consumption setup.
Automatic process When stock leaves the organization or for specific user-defined
transactions.
Always occurs for Sales/Internal Order Issue, Organization Transfer, Misc./Acct Issue
or WIP Issue.
Can also setup other types like sub-inventory transfer.

(Optional) Consumption Rules

This is an optional setup.

Setup the transactions that will consume inventory implicitly.
Can be conditional by Organization, Sub-Inventory or Item.
Navigation:
Inventory > Setup > Transactions > Consigned/VMI Consumption

Agenda
Overview of Consignment
Flow
1. Receive Material
2. Consume Material
3. Run Consumption Advice

Q&A

Consumption Advice

Consumption Advice
Generates Purchase Orders or Releases for supplier
payment.
The table MTL_CONSUMPTION_TRANSACTIONS flags
transactions as processed or error.
Note that the Consumption Advice WORKER is important for
debugging.

Agenda
Overview of Consignment
Flow
1. Receive Material
2. Consume Material
3. Run Consumption Advice

Q&A

<Insert Picture Here>

Q&A

Continue the discussion

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5. Start a Discussion or comment on an existing thread
The recorded version of this webcast will be available on the Advisor
Webcast Archive in MOS:
Document ID 740964.1
Look under Oracle EBS Community Webcasts > Manufacturing

2009 Oracle Corporation Proprietary and Confidential

Next Webcast
Wednesday October 12th, 2011
1:00 PM Eastern/ 10:00 AM Pacific
Inventory Transactions Overview
Document # 1317020.1

2011 Oracle Corporation Proprietary and Confidential

THANK YOU

2010 Oracle Corporation Proprietary and Confidential

 2009 Oracle Corporation Proprietary and Confidential