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Subject:

FAQ: Using Consigned Inventory / Consumption Advise / Vendor Managed Inventory (VMI)

  Doc ID: Note:406390.1 Type: HOWTO  Last Revision Date: 06-SEP-2008 Status: PUBLISHED

In this Document

  Goal  Solution     1: DEMO     1.1: Full Demonstration     1.2: Common Consignment Steps            2: Helpful Documents / Patches     2.1: Helpful Documents from Oracle Development:     2.2: Critical Consignment Patches     2.3 Enhancement Requests              3: Consumption Issues     3.1: Resubmit a stuck consumption transaction?     3.2: Consumption advise does not work...      3.3 Sample Diagnostic           4: Transfer to Consigned:     4.1: How does one perform 'Transfer to Consigned' when consumption transaction was generated implicitly?      4.2: Transfer to Consigned Enhancement     4.4: When is Transfer to Consigned Available?     4.4: SQL to review Transfer to Regular Used for Transfer to Consigned?          5: Can one view the owner party in the subinventory transfer form?      6: How does one manage consigned inventory with locators?     7: Consigned Setup     7.1: What are the setup steps required for using Consigned Inventory?      7.2: What Setup Required for Consigned Orders in Purchasing?      7.3: What setup should Suppliers perform for consigned inventory?           8: How do I specify the owning party on the Miscellaneous Transaction form?      9: Inter-Org Transfer Loses Owning Party / Transfer to Regular                10: Other Common Errors:      10.1: Error: This supplier site combination must have a valid Approved Supplier List.

     10.2: Purchase Price Variance (PPV) Report errors with ORA-01476     10.3: Error: There must be a Valid Blanket Purchase Agreement in effect      10.4: Error: APP-FND-01030: Value longer than 20 characters     11: Onhand Shows Zero (0) Attempting to use Consigned Inventory     12: Drill Down in Material Workbench Displays the Wrong Quantity     13: Using Consigned Inventory With OPM?      14: Helpful SQL     14.1: Review consumption transaction status   via SQL?      15: Can I update the blanket price for a consigned line item?      16: How can I use retroactive price update for consigned shipments?     17: Can price breaks be used for Consigned Stock?     18: Does retroactive pricing update Standard POs used for receiving consigned stock?     19: What is Misc issue / Misc Receipt of Consigned Stock?     20: What is Consumption Rules Setup used for?     21: How does FIFO rules apply for consigned stock?     22: Sometimes, consumption transactions refer to a different source blanket. Why does this happen?     23: How do we back-out erroneous misc. receipt of consigned stock?     24: Is Cycle counting supported for Consigned Inventory?     25: Consumption advice shipments are split date-wise for local blankets?     26: Why is no PPV generated when I perform subinventory transfer from an expense subinventory to an asset subinventory?     27: Performance     28. Handling unwanted releases?                29: Consumption Flow/Diagrams     29.1: What is the general consignment flow and flags?         References

Applies to:

Oracle Inventory Management - Version: 11.5.9 to 12.0Information in this document applies to any platform.FORM:INVCNSUP.FMB - Consigned/VMI ConsumptionFORM:POXSCASL.FMB - Define Approved Supplier ListFORM:POXSTASL.FMB - Setup Approved Supplier ListFORM:POXSVASL.FMB - Summary Approved Supplier List

Goal

Here are some common questions or tips about Consigned Inventory.

Solution

1: DEMO

1.1: Full Demonstration

Here is a full demonstration created by Oracle Development in flash-wave format.  It should be run in your browser after you download the file.

1.2: Common Consignment Steps

Here are some other demonstrations for Consigned Inventory.  Currently these are .exe files for Windows machines only:a. Miscellaneous Receipt for Consigned Inventory b. Transfer to Regularc. Viewing Consigned Inventory

 

2: Helpful Documents / Patches

2.1: Helpful Documents from Oracle Development:

These are some helpful documents provided by Oracle Development to Oracle Support for diagnosing problems as well as to help better understand consignment.  Providing them here for reference by support and customers -- Goal is to integrate these points better into this document so this is work in process / under construction :

a. Consigned Notes - Review of Consignment Functionalityb. Consigned Support Diagnostics - Review of Common Consignment Issuesc. Consigned Bug Logging - Things to provide when logging a consignment SR/Bug

 

 

2.2: Critical Consignment Patches

Ensure that you already have the critical consignment patches: Patch 5036673 for 11.5.9 and Patch 5200436 for 11.5.10.

Patch 5036673 (for 11.5.9) includes the following files:invcons.odf 115.7.11590.3INVRCADB.pls 115.22.11590.31

INVVTPSB.pls 115.12.11590.14b4649230.sql 115.4

You could use commands like the following to check your version:

grep '$Header' $INV_TOP/patch/115/odf/invcons.odfgrep '$Header' $INV_TOP/patch/115/sql/INVRCADB.plsgrep '$Header' $INV_TOP/patch/115/sql/INVVTPSB.plsgrep '$Header' $INV_TOP/patch/115/sql/b4649230.sql

Patch 5200436 (for 11.5.10) includes the following files:invcons.odf 115.13.115100.3INVMCTUPG.sql 115.1INVRCADB.pls 115.55.115100.29INVVTPSB.pls 115.22.115100.4

You could use commands like the following to check your version:grep '$Header' $INV_TOP/patch/115/odf/invcons.odfgrep '$Header' $INV_TOP/patch/115/sql/INVMCTUPG.sqlgrep '$Header' $INV_TOP/patch/115/sql/INVRCADB.plsgrep '$Header' $INV_TOP/patch/115/sql/INVVTPSB.pls

 

2.3 Enhancement Requests

Here are some commonly referenced enhancement requests (ERs) related to consigned inventory or consumption advise.  Note that an enhancement request is tracked as a low-level

bug. Therefore, you can query these enhancements via the bug tracking system.

Bug Number DescriptionBug 5156251 Allow implicit transfer back to consigned

Bug 6845969 Allow Transactions To Issue Out Non-Consigned Material Only

Bug 6845983 Subinventory Transfer Specifying Owning Party For Consigned Transactions

Bug 6842739 Resubmit Consumption Transactions Via Form

Bug 6845989 Allow flag consumption transactions to cancel with reason

Bug 6510841 Seeded Consignment Workflow For Shipping Inventory From Supplier

Bug 3877988 Printed Consumption Advise for Manual Communication to Suppliers

Bug 7241511 Show Request/Log From Consumption Worker (INVCTXCW) in Inventory - This was implemented in 11.5.10 INV RUP 11 and higher. See Note 726226.1 for details on the rollups (RUPs).

 

 

 

  

3: Consumption Issues

3.1: Resubmit a stuck consumption transaction?

The application does not provide a method at this time for resubmitting stuck consumption transactions. An enhancement request (ER) Bug 6842739 was logged requesting the functionality. Until then, users must resubmit transactions using SQL. The following identifies if transactions are stuck and provides SQL to resubmit:

a. Check for stuck transactions by looking at batch_id and the consumption processed flag:

Select count (*) from mtl_consumption_transactionsWhere nvl (batch_id, -1) <> -1And consumption_processed_flag in ('N','E');

b. If count is greater then ZERO, do the following to resubmit the transactions: Update mtl_consumption_transactionsSet batch_id = NULLWhere batch_id is NOT NULLAnd consumption_processed_flag in ('N','E');COMMIT;

 

3.2: 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 Payment Note 394123.1 Transactions in MTL_CONSUMPTION_TRANSACTIONS with INV_SUP_CONS_NO_BPO_EXISTS Note 308875.1 Create Consumption Advice For Consignment Not Working Note 312724.1 and <376051.1> How to Print the Consumption Advise Report? Note 333027.1 11i INVRCADB Invoices Not Being Created For Consignment Inventory 

Here are some common situations and helpful SQL used to check for the issues:

a. Check for NULL transaction_source_id :

Select count (*) from mtl_consumption_transactions mct, mtl_material_transactions mmt Where mct.transaction_id = mmt.transaction_id And consumption_processed_flag in ('N','E') And transaction_source_id is NULL;

If Count is greater then ZERO, 'Create Consumption Advice' will fail.  See Note 452970.1 for a root-cause patch and Note 438935.1 for a datafix.

b. Check for INVALID blankets:

Check if the blankets are valid at the time 'Create Consumption Advice' is run. By design, the blankets MUST BE OPEN/ACTIVE when Create Consumption is run.

You have to check the validity at: . The blanket header / line level . Expiry dates set if any at the line level and in the 'Terms' of the blanket . Purcahse Order 'Control' Options.

The "Create Consumption Advice Worker" will show an "****INVALID LINE" error for invalid blankets.

c. Check the billing cycle Check the billing cycle in the approved supplier list. The 'Consumption Advice' will NOT be created unless the billing cyle has been elapsed.  To check the billing cycle, you could review the Approved Supplier List (ASL) via the Purchasing (PO) forms using PO > Suppliers > Approved Supplier List. If the billing cycle has not passed, regardless of how many times 'Create consumption' is run, the transactions will not be picked up. People often miss looking at the billing cycle so think that consumption advise is broken as it does not generate releases. Actually, they had setup the application to only bill every 30 days for example and that is why nothing is generated. Here is an example query as well that we were working on to help look for stuck transactions where the billing cycle has not yet passed. You could modify it to limit by item (mmt.inventory_item_id) if there are too many results.

Here is the sample query:select distinct paa.ASL_ID, paa.last_billing_date, paa.consigned_billing_cyclefrom apps.po_asl_attributes paawhere paa.last_billing_date + paa.consigned_billing_cycle < sysdateand paa.asl_id IN (select pad.asl_id

from apps.po_asl_documents pad, apps.po_lines_all pol,apps.mtl_consumption_transactions mct, apps.mtl_material_transactions mmtwhere pad.document_header_id = mmt.transaction_source_idand pad.document_line_id = pol.po_line_idand pol.item_id = mmt.inventory_item_idand mct.consumption_processed_flag IN ('E','N')and mct.transaction_id = mmt.transaction_idand mmt.organization_id = &EnterYourOrgID);

d. Check for NULL blanket_price: Select count (*) from mtl_consumption_transactions Where consumption_processed_flag in ('N','E') And blanket_price is NULL;

A script will have to be run to populate the blanket price(b4649230.sql). Create consumption Advice will fail for NULL blanket prices. See Note 401787.1 for details on the script. If you already have the patch that provides the script, you could rerun the script to correct the data. If you have the patch, but continue to have this issue occur, log a service request for assistance.

e. Check for PO Auto Create failure: If the log file contains INV_SUP_CONS_AUTO_CREATE_FAIL, see Note 601692.1 checking if you have a global Approved Supplier List (ASL), and if so ensuring you have the right patch level.  If the issue remains, log an SR to get assistance as we may need to log a bug with Purchasing (502) for Auto Create Failure.

f. Duplicate Releases Created If you have this issue, you are likely on a very old version of the Consigned files. Please confirm you have patch 5200436 (for 11.5.10) and 5036673 (for 11.5.9)

In order to retrieve the duplicate releases, the following query will have to be run: SELECT DISTINCT por.po_release_id FROM po_releases_all por, po_line_locations_all poll WHERE por.po_release_id = poll.po_release_id AND poll.shipment_type = 'BLANKET' And por.consigned_consumption_flag = 'Y' AND por.po_release_id NOT IN (Select DISTINCT consumption_release_id FROM MTL_CONSUMPTION_TRANSACTIONS Where consumption_release_id is NOT NULL);

Often you can remove duplicates via the forms.  See the sections below "Handling unwanted releases?".  We also have scripts to cancel the duplicates. Log an Service Request to get help from Oracle Support if you cannot accomplish this via the form. They will likely first have you run invgcacl.pls followed by invgposf.sql

g. Consigned Stock Not Issued Check if regular stock and consigned stock are co-mingled for the same item in a given subinventory. Should this be the case, the stock is always issued on FIFO basis. This may be the reason why regular stock may be issued ahead of Consigned stock.

h. Ownership Transfer Not Occuring For Consigned Stock: Invalid Blanket

1. Check if any of the blanket or any of the lines in the blanket is closed. 2. Check the expiration date on the lines 3. Check the End Date on the TERMS page in the blanket 4. Item Revision (if any) must exist on the blanket 5. If there is no blanket number specified on the ASL, ensure that the profile PO%Automatic Document Sourcing is set to 'Yes'. This would pick up the latest blanket.

6. Ensure that vendor product number is less than 10 characters if patch 3223055 is not applied

i. Subinventory Transfer Not Triggering Consumption: Check the Consumption/VMI Rules setup: By default, a subinventory transfer carried the 'Consigned Stock' status to the destination subinventory in subinventory transfers.

If explicit rules have been setup (using the Consigned / VMI Rules setup form), the consumption will be triggered and the destination subinventory would have regular stock.

j. Accrual Reconcialiation Failure / Missing Po_Distribution_Id In MTL_CONSUMPTION_TRANSACTIONS PO_DISTRITIBUTION_ID is automatiacally populated when 'Create Consumption Advice' is run. However, for customers who have not applied patch 5200436, the Accrual Reconcialiation process may fail. So, please ask the customers to appy 5200436. Note: This fix is available only for 11.5.10

k. Consumption Advice Is Splitting Shipments On A Daily Basis For Local Blankets

Check the Profile option: "INV: Summarize Consumption By Need By Date". By default, the value is NULL. If set to Yes, the shipments in a release will be grouped according to the transaction dates. Note: This profile option does NOT affect consumptions referring to global blankets.

l. INV_CONS_SUP_INVALID_BPO (or other versions INV_CONS_SUP_E_INVALID_BPO and INV_CONS_SUP_A_INVALID_BPO) Description: Standard application text for the error codes: Ensure that the blanket agreement is approved. The agreement and the relevant purchase order lines must have future effectivity end dates and open status. Cannot release this item using the blanket agreement.Suggestion:  As stated by the error description, the first thing to check is the blanke.t  Make sure it is open, approved, has the correct effective date, item, approved supplier list, etc. The Patch 6766266 and Patch 6945480 were recommended in the past for this issue on 11.5.10 via Bug 7249870. The Patch 6945480 provides INVRCADB.pls 115.55.115100.38

 

3.3 Sample Diagnostic

The following diagnostic is still being developed.

Here is an updated version of the diagnostic:  Consignment Diagnostic - NEW VERSION ! The output is the same but this version skips the check for batch id so returns all consignment records waiting to process even if the batch id is -1 or NULL which signifies the record was not picked up yet.  This was required because many customers were finding the batch id remained NULL, but the record resulted in error during consumption advise.

Here is an Older version - Consignment Diagnostic

This version checks for the batch id to be NOT NULL. Often this was not returning data. If the new version above returns too many rows, you can try this version to limit the results.

Here is the sample output: Sample Output .

 

 

 

4: Transfer to Consigned:

4.1: 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 are 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 happen.

- 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 whenan Implicit Consumption is done. Only when you do a 'Transfer to regular' transaction (Explicit Consumption) to changethe ownership from Supplier you will be able to return this to the supplier using 'Transfer toconsigned'

- As a workaround, when you need to move the Items back to the supplierin case of a Implicit consumption, you can use the following limited option.You can do a Misc issue of the Item from the subinventory. Using Folder / Show fieldchoose 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 Party againas 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 Stock at 12$and the Standard Cost of the Item is 10$, then the implicit consumption will result in a 2$ PPV.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 364738.11. 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 Consigned Transactions window.b. Only 'Transfer to regular' entered manually are called Explicit consumptions all other createdby the system are implicitconsumptions.c. In case of Miscellaneous issue, the ownership transfer is created by the system and is stillimplicit 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 to Vendorsection.f. Support for 'Transfer to consigned' for implicit transactions is a known issue and we alreadyhave 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.

2. The following workarounds are available:a. Manually transfer to regular instead of performing an explicit consumption transaction.b. Correct mistakes in transfers via miscellaneous issues from the owning organization andmiscellaneous receipt into the supplier organization.

4.2: Transfer to Consigned Enhancement

Please monitor for Enhancement Request (ER) Bug 5156251 that focuses on the suggestion

requesting that implicit transfers also allow "Transfer to Consigned".

4.4: When is Transfer to Consigned Available?

After Patch 4890407 with the transaction form INVTTMTX 115.239.115100.22 or higher, the list of available consignment transactions is limited to those transactions that have a source code of EXPLICIT. Before this patch, the 'TRANSACTION_BATCH_SEQ' in MTL_MATERIAL_TRANSACTIONS was used to differentiate between IMPLICIT and EXPLICIT consumption transactions. This was causing issues in "Return to Vendor" Transactions for mobile transactions. The query for the List of Values is something like the following:

 

SELECT mmt.*FROM MTL_MATERIAL_TRANSACTIONS mmt , MTL_CONSUMPTION_TXN_TEMP mcttWHERE mmt.transaction_id=mctt.transaction_id AND mmt.transaction_type_id=74 AND mmt.source_code = 'EXPLICIT'AND nvl(mctt.net_qty,0) > 0

 

4.4: SQL to review Transfer to Regular Used for Transfer to Consigned?

You can track what transaction was responsible for a transfer to consigned using the parent id.  To perform a transfer to consigned, one must have at transfer to regular.  Upon saving the

transfer to consigned, the related transfer to regular transaction is recorded in the new transaction's parent transaction id column. The following SQL returns the transfer to regular transaction responsible for the transfer to consigned. It prompts for the transaction id of the transfer to consigned as &EnterTransactionID.

 

select * from mtl_material_transactions mmtwhere mmt.transaction_id IN (select mct.parent_transaction_id from mtl_consumption_transactions mctwhere mct.transaction_id = &EnterTransactionID)

 

5: 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 the form.

In other words the system does not distinguish between consigned and non-consigned stock whenperforming a subinventory transfer. the system does consumption on the basis of FIFO.

This question was addressed in Bug 4246717 and Bug 4128396 - TRANSFER TO REGULAR NOT DECREMENTED CORRECTLY.

Suggested workaround:In the subinventory where both consigned and non-consigned stock will be maintained, create 2locators: one that will be designated for consigned quantities only, and one that will bedesignated for non-consigned quantities only. Thereafter when receiving or transferring stock outof that subinventory, be sure to specify the correct locator to pull from, based on whetherconsigned or non-consigned stock is to be transacted. When consuming consigned stock, use the'Transfer to Regular' option, specifying the non-consigned locator into which the consumed stockwill be put.

Correcting Comingled InventoryComingled inventory would occur when you have both regular (owned) inventory and consigned (supplier-owned) inventory in the same location (like the same subinventory when not using locators).

A. If the regular stock has the oldest receipt date, you can simply subinventory transfer.The oldest stock thru FIFO goes first, so it can be transferred to another subinventory. You can review the receipt date by querying against the MTL_ONHAND_QUANTITIES_DETAIL table looking at the DATE_RECEIVED and ORIG_DATE_RECEIVED columns. Original date received is only used when the profile

option "INV: FIFO for Original Receipt Date" is set to track original receipt date.

B. If the consigned stock has the oldest receipt date, you have to trick the system so that the receipt flag is reset on the consigned inventory. This will make the regular / owned stock have the oldest receipt date and let you do the transaction like in #1. To trick the system, take the following steps:

Let's say you have 20 in consigned and 19 in regular comingled into the same subinventory.a. Perform 'Transfer to regular' of the consigned stock - let's say 20b. Now transfer the 20 back thru 'Transfer to Consigned.'* This reset the receipt date on the consigned inventory to the NEWEST.c. Now you can perform a subinventory transfer of the 19. The FIFO rules will ensure that the regular stock is now used. 

6: How does one manage consigned inventory with locators?

For example, do we transfer the inventory to company owned when we need to use it?

The point about using a separate locator is so that your users will know when they are going toconsigned inventory or when they are using inhouse inventory. Depending on how you are using theapplication and what types of transactions, you should not have to manually transfer fromconsigned. 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 applicationshould determine where to get the inventory. For miscellaneous issues from the consigned locator,

the transfer to regular will occur and the inventory will be issued. The same can be setup forsubinventory transfer from the consigned locator. For the transfer to regular to be automated,you would use the "Consignment Setup" screen. This is in Setup > Transactions > Consigned/VMIConsumption.

See some test cases listed above outlining how the transfer to regular and the use of consignedinventory can be automated.

 

7: Consigned Setup

7.1: 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 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

See the demonstrations above in FAQ point #1.

Also see Note 405518.1. 

 

7.2: What Setup Required for Consigned Orders in Purchasing?

See Note 428100.1.

7.3: What setup should Suppliers perform for consigned inventory?

The consignment functionality provides warehouses purchasing consigned inventory with features to track and even allow suppliers to review inventory usage.  But what if the supplier has implemented the Oracle Applications?  Will they have features within Consignment?  A supplier using the Oracle Applications internally will need to ship inventory but not bill the customer until confirmation is received that the inventory was consumed. 

In R11i you have to modify the Order Management workflow to handle this custom billing process.  This is the basic approach to take in R11i: 1) Use the shipping feature of trip stop planning. In case of FOB point being customer destination then perform the ship confirm but do not close the trip and defer the inventory interface. This way the inventory is still held in the Inv org. Once the goods are received, update the "Trip" and allow inventory interface (COGS) and AR invoicing. 2) Map COGS account to Intransit account. Control the Invoicing process by workflow wait activity before fulfillment if its fixed days based. Use an extension to systematically revert and book actual COGS once the line is invoiced. 3) Alternatively use invoice hold in the above case. 4) Consider using the defererred revenue accounting with sl no-2. 

In R12 we have a new feature called Deferred Revenue Recognition which handles the

scenario. It also takes into consideration when the COGS account is updated. 

 

8: How do I specify the owning party on the Miscellaneous Transaction form?

To specify the owning party on the miscellaneous transaction form, one must use the folder tools and add the column "OWNING PARTY". This column IS NOT available for all types of transactions, for example, not available in Account Alias transactions. 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 > Transactions > Miscellaneous TransactionsEnter the transaction header information, for example, Miscellaneous IssuePress the Transaction Lines buttonEnter the itemThe cursor moves to the next field, Subinventory.Choose Folder > Show Field from the top MenuSelect Owning PartyPress OkThe owning party field now displaysThe combination of Supplier and Supplier Site are selected in this fieldThe value is validated against available selections

 

9: 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).

 

   

10: Other Common Errors:

10.1: 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.

 

10.2: Purchase Price Variance (PPV) Report errors with ORA-01476

See Note 293403.1 that discusses the datafix as well as Note 552072.1 that has an explanation of the cause and details on how to avoid future occurrences of data issues. 

 

10.3: 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.

 

10.4: Error: APP-FND-01030: Value longer than 20 characters

Full error: APP-FND-01030: Value xyz is longer than its maximum length of 20 characters. See Note 559326.1.

11: 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.

 

12: 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.

 

13: Using Consigned Inventory 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.

 

14: Helpful SQL

14.1: 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. 

One can view the similar data via SQL.  The consumption table (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.

SELECT DECODE(CONSUMPTION_PROCESSED_FLAG,'Y', 'Created', 'E', 'Error','Pending'), ERROR_EXPLANATION

FROM MTL_CONSUMPTION_TRANSACTIONS WHERE TRANSACTION_ID = &EnterYourTransactionID /

 

15: 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. 

16: 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.

 

17: Can price breaks be used for Consigned Stock?

Yes, price breaks are used for giving discounts based on the quantity.

18: 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.

19: 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 issue 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 Inventory organization 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.

 

20: 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’.

21: 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.

22: 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 blanplier/site combination is always used irrrespective of the blanket specified in the ASL

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

Consigned/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.

24: 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.

25: Consumption advice shipments are split date-wise for local blankets?

Please check the profile option: INV: Summarize consumption releases by Need By DateIf 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.

26: 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.

 

27: Performance

See the consumption advise consolidated Patch 5659866.

28. Handling unwanted releases?

You can handle unwanted releases or duplicate releases without a datafix. Set the releases to "Finally Close" within the purchasing forms:Navigate to Purchasing > Po summary form2. Query the Releases / Consumption Advices from Po summary form3. Go to Tools->Control 4. Select "Finally Close".Note that we also have scripts to cancel the duplicates. Log an Service Request to get help from Oracle Support if you cannot accomplish this via the form. They will likely first have you run invgcacl.pls followed by invgposf.sql

   

29: Consumption Flow/Diagrams

29.1: What is the general consignment flow and flags?

This illustration attempts to show the flow of consigned inventory. Inventory flows from the supplier into the warehouse, however, the inventory is still owned by the supplier.  After the inventory is consumed, the inventory is now owned by 'your warehouse'.  If the inventory is

consumed automatically, this is considered 'implicit consumption'.  If the inventory is consumed via a transfer to regular transaction, it is an 'explicit consumption'.

 

This illustration attempts to show the flags used for consignment in the onhand quantity table -- The OWNING_TP_TYPE and OWNING_ORGANIZATION_ID columns flag consignment onhand quantity in MTL_ONHAND_QUANTITITES_DETAIL.  This also notes that VMI uses PLANNING_ORG_TYPE and PLANNING_ORGANIZATION_ID :

The following diagram attempts to show the flow of data through the tables. Information is received into onhand quanties owned by the supplier then decremented with a transfer to regular so it is owned by the warehouse. The consumption advise is run to create notifications to the supplier for inventory used.

 

This note is still under construction...

 

References

Bug 5156251 - WHEN CREATING TXR TO CONSIGNED TXN, NO LOV FOR CONSUMPTION TXN FRM-41830Bug 5555142 - INTER-ORGANIZATION TRANSFER TRANSACTION TRIGGERING CONSUMPTIONBug 6842739 - RESUBMIT STUCK/ERROR MTL_CONSUMPTION_TRANSACTION VIA FORM, NOT SQLBug 7241511 - DO NOT SEE REQUEST/LOG FROM CONSUMPTION WORKER (INVCTXCW)Note 258630.1 - No Lov Of Owning Party When Perform The Transfer To Consign TransactionNote 283488.1 - Asl Attribute 'Consigned From Supplier' Validated At Item Master LevelNote 293403.1 - Purchase Price Variance Report Runs Into ErrorNote 306397.1 - Drill Down in Material Workbench (INVMATWB.fmb) Displays the Wrong Quantity For Consigned InventoryNote 344337.1 - Issue With Inventory Movement From Consigned SubinventoryNote 364738.1 - CONSIGNED TRANSACTION HAS NO LOV FOR CONSUMPT TRANSACTION - FRM-41830Note 365454.1 - Cannot Transfer To Consigned InventoryNote 367843.1 - Open Purchasing Document Exists With Consigned Or Vmi Shipments And You Cannot MergeNote 376051.1 - Unable to Send Manual Consumption Advise for Release POXPRPOP Does Not Print The ReleaseNote 391582.1 - Obtain Information On Consignment Orders

Note 401787.1 - Performance Issue With Create Consumption AdviceNote 405518.1 - What Are The Steps Required To See Vendor Managed Items In iSupplier Portal?Note 405573.1 - For A Lot Controlled Consigned Item No Material Lot Number Records Are Created For Implicit ConsumptionNote 428100.1 - What Are The Steps Required To Setup And Transact Consigned Orders in Purchasing ?Note 438935.1 - Datafix To Stamp the TRANSACTION_SOURCE_ID on Consigned Inventory Transactions When It Is NullNote 559326.1 - Create Consumption Advice Request Error APP-FND-01030Note 566984.1 - Create Consumption Program (INVRCADB) Is Creating Invalid ReleasesNote 601692.1 - Create Consumption Advice for Global ASL Does Not Generate A Blanket ReleaseOracle Inventory Consigned Inventory from Supplier Process Guide (Part No.: B10483-02)SR 7005829.994Note 216050.1 - Using Vendor Managed Inventory (VMI) in Oracle Applications

Keywords

INVCNSUP.FMB ; POXSCASL.FMB ; POXSVASL.FMB ; POXSTASL.FMB ; BLANKET~PURCHASE~AGREEMENT ; CONSIGNED/VMI~CONSUMPTION ; DEFINE~APPROVED~SUPPLIER~LIST ; 

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