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1: How does one perform 'Transfer to Consigned' when consumption

transaction was generated implicitly?
The short answer is that "Transfer to Consigned" is NOT AVAILABLE at this time for
implicit "Transfer to Regular" transactions. From a business point of view, this means
that if you accidentally used inventory from a vendor, you cannot simply transfer it
back via a "Transfer to Consigned". You might expect 'Transfer to Consigned' to work
for implicit consumption transactions. When you take the following steps, there are
no transactions available. Due to this issue, unable to handle/process returns for
over receipts of consigned inventory.
That you might have expected to work follow:
1. Navigation: Inventory > Transactions > Consigned Transactions
2. Enter type as Transfer to Consigned
3. Click transaction lines button.
4. Try to use the LOV for "Owning Party" or "Consumption Transactions"
5. No list of values is returned.
** Transferring back to "Consigned" is not supported for implicit transfers to regular.
From Note 258630.1:
If the change of ownership from the Supplier has taken place via 'Implicit
Consumption' viz. Move Order Transaction, or Back flush etc, then this problem will
For Implicit Consumption the Transaction Type 'Transfer to Consigned' will not work.
This is because the link for the originating Transaction for consigned Receipt is lost
when Implicit Consumption is done. Only when you do a 'Transfer to regular'
transaction (Explicit Consumption) to change the ownership from Supplier you will be
able to return this to the supplier using Transfer to Consigned
As a workaround, when you need to move the Items back to the supplier in case of an
implicit consumption, you can use the following limited option. You can do a Misc
issue of the Item from the subinventory. Using Folder / Show field choose the Owning
Party as the Supplier, and in the Account choose 'AP Accrual Account' Then
Subsequently you can use a Misc receipt to with Owning part again as the supplier to
increase the Consigned Inventory stock.
This Workaround does not apply if there exists a Purchasing Price Variance.
(Suppose in a standard Costing Organization you receive the Items to Consigned
and the Standard Cost of the Item is 10$, then the implicit consumption will result in

However, when you do a misc Issue it will be done at 10$ - standard cost. This will
result in an unbalance of 2$
From Note 364738.1
The "Transfer to Consigned" does not work because of the following:
a. Transfer to consigned transaction is currently supported only for 'Transfer to
regular' transactions entered manually using Consgined transactions window.
b. Only 'Transfer to regular' entered manually are called Explicit consumptions all
other created by the system are implicit consumptions
c. In case of miscellaneous issue, the ownership transfer is created by the system
and is still implicit though the owning party might have been specified.
d. The documentation text might have created the confusion and will modified.
e. More details exist in section 4-6 of the Consignment User's Guide under the Return
f. Support for 'Transfer to consigned' for implicit transactions is a known issue and we
have an ER to address that, but as of now the support is only for 'Transfer to Regular'
transactions entered manually using the Consigned Transactions window.
The following workarounds are available:
a. Manually transfer to regular instead of performing an explicit consumption
b. Correct mistakes in transfers via miscellaneous issues from the owning
organization and miscellaneous receipt into the supplier organization.
Please monitor for Enhancement Request (ER) Bug 5156251 that focuses on this
issue requesting that implicit transfers also allow, "Transfer to Consigned".

2: Can one view the owner party in the subinventory transfer form?
No, see more details in Note 344337.1 Issue With Inventory Movement From
Consigned Subinventory. Here is a snippet:
Current behavior is that for subinventory transfers there is no owning party access on
In other words the system does not distinguish between consigned and nonconsigned stock when performing a subinventory transfer. The system does
This question was addressed in Bug 4246717 and Bug 4128396 - TRANSFER TO
Suggested Workaround:
In the subinventory where both consigned and non-consigned stock will be
locators: one that will be designated for consigned quantities only, and one that will
designated for non-consigned quantities only. Thereafter when receiving or
of that subinventory, be sure to specify the correct locator to pull from, based on
consigned or non-consigned stock is to be transacted. When consuming consigned

'Transfer to Regular' option, specifying the non-consigned locator into which the
will be put.
3: How does one manage consigned inventory with locators?
For example, do we transfer the inventory to company owned when we need to use
The point about using a separate locator is so that your users will know when they
consigned inventory or when they are using inhouse inventory. Depending on how
application and what types of transactions, you should not have to manually transfer
consigned. You should just simply use the inventory in the consigned locator.
You should be able to use the inventory from the locator via normal processing. The
should determine where to get the inventory. For miscellaneous issues from the
the transfer to regular will occur and the inventory will be issued. The same can be
subinventory transfer from the consigned locator. For the transfer to regular to be
you would use the "Consignment Setup" screen. This is in Setup > Transactions >
See some test cases listed above outlining how the transfer to regular and the use of
inventory can be automated.

4: What are the setup steps required for using Consigned Inventory?
See Section B of the "Consigned Inventory User's Guide". This walks through the
following steps:
Step 1: Set up Organizations
Step 2: Set up Oracle Inventory Items
Step 3: Set up Oracle Approved Supplier List and Supplier Sites
Step 4: Set up Profile Options
Step 5: Set up numbering options
Step 6: Set up Oracle Purchasing Blanket Purchase Agreement.
Step 7: Define Consumption Rules (optional)
Step 8: Set up Pay Options in Oracle Payables
Step 9: Set up Oracle Workflows
5: How do I specify the owning party on the Miscellaneous Transaction
To specify the owning party on the miscellaneous transaction form, once must use
the folder tools and add the column "OWNING PARTY". After adding the column, one
can enter the specific owning party for the inventory being used. For example, you

might want to explicitly pick the owning party for a miscellaneous issue. To do this,
you would take the following steps:
Navigate to Inventory>Transaction>Miscellaneous Transactions
Enter the transaction header information, for example, Miscellaneous Issue
Press the Transaction Lines button
Enter the item. The cursor moves to the next field, Subinventory
Choose Folder>Show Field from the top Menu.
Select Owning Party. Press OK.
The owning party field is now displayued.
The combination of the supplier/supplier site is selected in this field.

6: Inter-Org Transfer Loses Owning Party / Transfer to Regular

An Inter-Org Transfer results in the onhand quantity no longer belonging to the
consigned party. Effectively, the inter-org transfer loses the Owning Party and takes
the destination organization as the new owner. If you look at the transactions after
the inter-org transfer, you will see that the system does an implicit consumption
Transfering to the onhand quantity to Regular in the source organization before doing
the transfer.
This is a known issue logged in Enhancement Request Bug 5555142. The issue is
very critical to many customers. Unfortunately, it is not something the product does
yet (as of the time this note was written).
7: Error: This supplier site combination must have a valid Approved
Supplier List.
If you receive the error, "This supplier site combination must have a valid Approved
Supplier List", ensure the item has an approved supplier listed. See Note 406392.1
for details on the error and the related setup.
8: Consumption advise does not work...
The "consumption advise" is the name of a concurrent program that generates
Purchase Orders or Purchase Order Releases so that a supplier can bill for used
material. This also helps suppliers know what inventory needs to be replenished.
See Chapter 3 (especially page 3-4) of the "Consigned Inventory From Supplier
Process Guide" for an explanation of the program and process.
There are a few notes and bugs related to the consumption advise program
completing but not generating purchase orders or releases -- Here are some Notes
that might be helpful:
Note 404609.1 Create Consumption Advice Program Not Creating Releases For
Note 308875.1 Create Consumption Advice for Consignment Not working
Note 312724.1 How to print Consumption Advise Report
Note 333027.1 11i INVRCADB Invoices Not Being Created For Consigned Inventory

9: Error: There must be a Valid Blanket Purchase Agreement in effect

Confirm your setup per Section B of the "Consigned Inventory From Supplier Process
Guide". Also see Note 342366.1.

10: Onhand Shows Zero (0) attempting to use Consigned Inventory

During a transfer to regular, if the Onhand quantity shows zero (0), you might check
out Note 273958.1.

11: Drill Down in Material Workbench Displays the Wrong Quantity

If the drill down in Material Workbench (INVMATWB.fmb) displays the wrong quantity
for consigned inventory, see Note 306397.1.

12: Can Consigned Inventory be used with OPM?

If you are using Process Manufacturing (OPM), you might be wondering if you can use
Consigned Inventory. As of 11.5.10, this was not supported. See Note 404597.1.
13: Review consumption transaction status via SQL?
One can view the status of consumption via the Material Transactions form available
via Inventory > Transactions Material Transactions. After querying the transaction,
one can goto the Consumption Advise tab and look at the From Owning Party, status
of the consumption, and any associated errors.
(MTL_CONSUMPTION_TRANSACTIONS) stores the status of consumption transactions
by transaction id. The following SQL would look at a specific transaction id and view
the process status and error explanation.
'Error','Pending'), ERROR_EXPLANATION
WHERE TRANSACTION_ID = &EnterYourTransactionId



14. Can I update the blanket price for a consigned line item?
You can update the blanket price on a blanket agreement for a consigned line item.
Without using retroactive pricing, the price on the created consumption advices will
NOT be changed. For new transactions (transfer to regular txns), the new blanket
price would be stamped to consumption (MTL_CONSUMPTION_TRANSACTIONS) table.
15. How can I use retroactive price update for consigned shipments?
The process of applying retroactive price updates to purchasing documents for
consigned material is same as that for regular material. Consumption advices are
retroactively update only when the profile PO: Allow Retroactive Pricing of Pos is set
to ALL RELEASES. You can execute retroactive price updates either from the PO
Approval screen or by submitting the Retroactive Price Update concurrent program.

When using the PO Approval screen to make retroactive price updates, enable the
Apply Retroactive Price Update to Existing PO/Releases check box.
Note: Retroactive price update only applies to the consumption advice. Consumption

transactions, for which consumption advices have not been created, will not be
affected by retroactive price updates. Also note that Agreed Amount limit defined in
Blanket Purchase Agreement is not imposed when the price of the consumption
advice is updated retroactively.
16. Can price breaks be used for Consigned Stock?
Yes, price breaks are used for giving discounts based on the quantity.

17. Does retroactive pricing update Standard POs used for receiving
consigned stock?
The standard POs for receiving consigned stock have no refernce to the blanket. So,
retroactive pricing does NOT have any impact on these standard POs.
18. What is Misc issue / Misc Receipt of Consigned Stock?
Misc receipt of Consigned Stock:
When consigned stock is received thru' a Misc receipt (by specifying the owning
party), the supplier is still the owner of the stock. No accounting entries are hit.
Misc isssue of Consigned Stock:
On performing a 'Misc issue' of consigned stock, an implicit consumption (ownership
transfer) of consigned stock is triggered. So, the material is transferred from the
supplier to the INV org first and then, the misc issue transaction is triggered.
Accounting entries will be hit. So, the behaviour you see is the expected behaviour.
Any transaction other than a 'Consigned Transaction (explicit consumption) - for
instance WIP issue, SO issue, InterOrg transfer (of consigned stock)- will result in
implicit consumption.
Note: Misc receipt of consigned stock is from a supplier and material is received
into an inventory organization. Misc issue of consigned stock is from the
inventory organization and material is issued out of the inventory organization.
Misc issue of Consigned stock DOES NOT return material back to the supplier;
ownership transfer transactions are triggered when a misc. issue of consigned stock
is performed.
19. What is Consumption Rules Setup used for?
By default, transfer transactions within an INV org, suchs as subinventory transfers,
do NOT create ownership transfer transactions. However, if we want to force
consumption, we can set it as a rule in the Consumption Rules setup form.
20. How does FIFO rules apply for consigned stock?
FIFO rules apply to consigned stock in the same way they apply to regular stock.
Please note that when consigned and regular stock of items are co-mingled in the
same subinventory, FIFO rules decide which stock will be issued first.
21. Sometimes, consumption transactions refer to a different source
blanket. Why does this happen?
Check the profile option PO: Automatic Document Sourcing.
If set to Yes, the latest blanket available for the item/supplier/site combination is
always used irrrespective of the blanket specified in the ASL

22. How do we back-out erroneous misc. receipt of consigned stock?

Cons/VMI receipt transaction is the same as Misc. Receipt transaction for recieving
consigned stock (by specifying the owning party).
Receiving consigned stock through Misc receipt is NOT a normal scenario (though it is
supported). We do NOT support return of consigned stock (to the supplier) received
through Misc receipt.
The recommended approach this case (data entry mistakes while receiving consigned
stock through misc. receipts (cons/VMI receipt in mobile)) is to consume the stock,
finally close the created consumption advice (so that it is not invoiced) and manually
make the accounting entry reversals. We agree that it is a cumbersome procedure,
but nonetheless, the safest way to back-out the consigned stock.
Also, it is strongly recommended that the customer receive consigned stock through
PO receipts so that corrections can be adjusted through RTV transactions. PO receipt
is the standard way of receiving consigned stock.
If the customer performs a Cons/VMI issue (same as misc. issue), the stock will NOT
be backed out; instead the stock will be consumed (i.e ownership transfer
transactions are triggered) and so, the stock liability is transferred to the INV. org.
23. Is Cycle counting supported for Consigned Inventory?
NO, unfortunately there is no straightforward support for making cycle counting or
physical counting of consigned inventory. When you do misc. issue we donot know
whether it is due to wrong misc. receipt entry or a true issue of stock, we always
consume the consigned stock. The only way is to use workaround in such cases of
data entry mistakes. Manually make accounting adjustments to reverse the entries
created at Misc. issue and also finally close the consumption advice that is create due
to this so as not to invoice the same.
24. Consumption advice shipments are split date-wise for local blankets?
Please check the profile option: INV: Summarize consumption releases by Need
By Date
If this profile option is set to 'Yes', a shipment line will be created for an item based
on the consumption date (which is what is happening for the customer). If set to 'No'
(or NULL), all the consumption transactions for a particular item will be grouped into
a single shipment. '
The default value for this profile is 'No' or NULL.
Note: The above profile option is applicable ONLY for local blankets. For global
blankets, irrespective of the value of this profile, a single shipment will be created for
each day for an item.
25. Why is no PPV generated when I perform subinventory transfer from an
expense subinventory to an asset subinventory?
While doing the subinventory transfer from expense subinventory to asset
subinventory, an implicit consumption (if consumption rules have been setup for this
subinventory transfer) is triggered first in the expense subinventory before it is
transferred to the asset subinventory, since this ownership transfer transaction takes
place in expense subinventory, it is expensed at PO price and hence there would not
be any PPV. This is the expected behaviour.