Consignment Inventory

Has anyone been able to accomplish consignment inventory in E10? If so how did you do it?

The past posts I have found are over 15 years old.

I found that it was trouble but here goes:

I established a warehouse called Consignment with Bins for each customer. You could also establish a Warehouse for each customer with one bin. Using the former allows you to view the consignment for a specific customer if you wish. DO NOT
tag the bins as supplier or customer bins. That will screw you up.

  1. Ship any parts to the customer using a Miscellaneous shipper. This gives you paperwork for traceability.

2 Bin Transfer those parts to the appropriate bin if inventory or receive to inventory straight into the bins from manufacturing.

Q: How will you be notified that the material has been consumed?

  1. When consumed, create a customer packing slip with the items consumed.

  2. Invoice to customer.

Rinse and Repeat.

You will need to reconcile (cycle count) the inventory periodically. I suggest getting an inventory report from the customer monthly.

Make sure you keep all of your transfer paperwork in order to reconcile.

Charlie Smith

CRS Consulting Svcs

(860) 919-1708

1 Like


Are you saying if you don’t own the Supplier or Customer managed inventory modules do not tag the bins or have you found the Epicor solution not satisfactory?

Mark W.

For consignment inventory, correct.

What is the “Epicor Solution”?

Would anything different need to be done if we are consigning for a supplier? Where the supplier would bill us based on what material is used sitting in our warehouse.

Supplier Managed Inventory. It’s not an expensive module. There’s also an associated Customer Managed Inventory module as well. From Help:

Supplier-Owned Purchase Orders

The purchase order being received is for inventory you are typically purchasing and storing on consignment from a supplier. When you receive supplier-managed purchase orders, the following processing takes place:
•When you receive a supplier-managed purchase order, it must be received into a bi designated as Supplier-Owned in the Type field in Warehouse Bin Maintenance (for the warehouse in which the purchase order is being received). The supplier code associated with the bin must match the supplier code on the purchase order. If they do not match, an error code is displayed and you cannot proceed with the purchase order receipt until you select an appropriate warehouse bin.
•In the case of line side bins where the Supplier will monitor the quantity levels on daily or weekly basis, the end user will need to manually key in the recorded quantities.
•At the time of receipt, the Epicor application updates the purchase order release/line items and on-hand quantities for the managed inventory. For example, if 25 units are received fora supplier-managed purchase order quantity of 50, the Epicor application increases the on-hand quantity by 25, and updates the purchase order release/line item, identifying that 25 out of 50 units have been received to-date.
•It also updates the on-hand quantity in the supplier-managed bin to which the purchase order is being received. It sets the purchase price for the receipt to zero, regardless of the prices entered on the purchase order being received.
•Upon completion of the receipt, the Epicor application creates a transaction with a type of SMI-STK (Supplier Owned Inventory - Stock), which is similar to the standard PUR-STK transaction, but identifies the put away transaction as supplier-managed. It also identifies the supplier associated with the received inventory.
•The Epicor application tracks the resulting inventory with a Supplier ownership attribute that determines the pricing, taxes, duties, landed costs and currency treatments that should be applied. This affects all inventory transactions, costing,valuations, financial and tax reporting.
It performs no updates to the accounts payable or to the financial ledgers at the time of receipt. It only updates ledgers when the received supplier-managed inventory is actually consumed.

I have not looked at the Supplier Managed or Customer Managed modules, so I have no opinion on them. The process I used (and outlined) did not include those modules.


BTW, Supplier managed is parts consigned to you that you have not paid for yet and Customer Managed are parts that have been paid for that you have not shipped as yet.