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Overview of Business Documents Used in Consignment Processes
In Consignment Processes, the buyer must inform the seller when the event that triggers transfer of ownership occurs. The most common triggering event is the consumption of the inventory, either by using that inventory to product product, transferring the inventory from one location to another, or selling the inventory. See Inventory Activity and Transfer of Ownership for more information.
Either for the consumption of consigned inventory, or the consumption of non-consigned inventory, there is no one "transfer-of-ownership" business document. Any of several business documents may be used, and which is used depends on the consignment and/or replenishment scenario - which related business processes are associated with the inventory consumption.
Example 1: If inventory is consigned to a retailer, reseller or distributor, the consumption (sale to a consumer) will be reported in a sales report. If Inventory Model 2 or Inventory Model 3 is already being used, adding another field or two may be sufficient for reporting data required for reporting transfer-of-ownership.
Example 2: If inventory is consigned to a manufacturer who is going to use it to build product, consumption may be reported by adding a field or two to the inventory report in Inventory Model 1.
Example 3: If inventory is consumed in a supplier-managed inventory program, the consumption may be reported via an inventory report in Inventory Model 1 or as part of an the Consumption Schedule (Forecast Model 3) used to transport other SMI data.
Alternatively, it may be that the seller needs transfer-of-ownership events reported separately, and/or with different timing than the "base" business message. In this case, a different message may be used for reporting the transfer-of-ownership event, or a different "flavor" of the an existing business message may be used.
Example: The seller receives data on inventory levels in the consignment warehouse once a week, but wants billable consumption reported daily. One type or flavor of an inventory report message may be used for the weekly transmission, and another type or flavor of an inventory report used daily to report billable consumption.
For additional information, see the Component Models:
See also Sales Reporting Scenarios and Financial Scenarios.
Last updated 04 January 2003