Use this activity to indicate use of the consignment stock feature. You will also specify whether or not you will be using the V.M.I feature.
Having consignment stock means that you have access to products which are still owned by the supplier. You will not be charged until the products are used or sold, i.e., moved out from the consignment stock. This functionality is used preferably when the relationship between the customer and supplier is close and the consumption of material is frequent.
To use the consignment stock handling function, you must change the option in the Ownership field to Consignment.
If you do not wish to create purchase requisitions from all demands of the consignment handled part, the V.M.I (Vendor Managed Inventory) check box in the Misc Part Info tab, Inventory Part window, should be selected. This option specifies whether the responsibility for the refill process regarding consignment stocks is handled by your company or by the supplier, i.e., this option indicates whether the system should automatically create purchase requisitions.
When Consignment is indicated in the Ownership field, it tells the system that the receipt is managed as consignment stock handled when receiving these parts from this specific supplier.
When the V.M.I check box is selected on the inventory part, the system does not create any purchase requisitions for the demands. That is, the vendor knows the inventory balance of the part and sends you the needed parts without notification from you. All the sources of automatically created requisitions such as MRP, order point runs, and customer order are affected. If the check box is disabled, the responsibility for the refill is yours, i.e., your system creates purchase requisitions and/or purchase orders. Since this option is placed on the inventory part, this indicates that the handling of the part is done this way, regardless of the suppliers from whom you are buying.
Supplier for Purchase Part, Supplier for Purchase Parts, Inventory Part
Supplier for Purchase Part, Supplier for Purchase Part/General, Supplier for Purchase Parts, Inventory Part, Inventory Part/Misc Part Info
You have the option to specify use of Vendor Managed Inventory.