Consignment Inventory

Kinetic ERP
1

I will be sending parts X, Y, and Z to Supplier A on consignment.
Supplier A will use these parts to manufacture Part C.
Supplier A will then send Part C to me, and I will receive it into inventory. how parts X, Y, and Z are transacted out of the system when they are consumed by the supplier to create Part C.

2

Sounds like a SUB type of operation with those parts as materials for the subcontract operation.

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3

Do these steps make sense?

  1. Create a consignment warehouse/bin.
  2. Create a job for Part C.
  3. Add materials X, Y, and Z from the consignment warehouse.
  4. Issue materials to the job.
  5. In the job, create a subcontract operation for Supplier A.
  6. Create a subcontract purchase order (PO).
  7. Receive Part C into inventory.
4

6.5 Receive Subcontract PO to Job

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5

Oh, sounds like you are only being charged for labor. I had found a way to ship out components to a supplier with a PO for the labor and then receive the finished parts back in. I’ll try to dig up that memory, but it was 9 years ago.

6

Well, not sure if this is the way I did it 9 years ago, but this is how I would do it today.

I would cut a PO to the Supplier for the charge that will be incurred for the assembly they are doing. Then I would do a Miscellaneous Shipment referencing the PO to send out the components. I would then receive against the PO to get the finished goods in inventory. If they did not use all of the components, I would do Miscellaneous Receipt to get the components back in inventory.

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7

Subcontract?

If not, how would one track the cost to that job?

8

I could be reading the OP wrong, but I took it as labor only, no Job.

I worked at a place that bought their own circuit board components but had them stuffed at a supplier. We would ship out the parts and were only getting charged for the labor.

9

Very close, @Mark_Wonsil is correct, you would need to receive that Subcontracted Assembly/Usage in for the labor/subcontract for that job operation. This might be the only op and FINAL OP with auto receipt to inventory (of the appropriate bin), or you could have them inspected (OP) before final receipt to inventory (again to the appropriate bin).

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10

And I would create a Supplier warehouse with a bin for that supplier. When you ship parts, do a STK-STK transfer. I would issue the parts (X, Y, and Z) used to that job from that supplier bin. Occasionally, have the supplier report pieces remaining to cover unreported scrap.

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