We recently began a Supplier Managed Inventory for Wire, we follow these instruction to the letter and it all works very well:
We follow Mark Wonsil’s instructions to the letter:
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.
But we have a problem that I’m hoping can be solved:
When the line on the PO has been satisfied, the line is closed and we can no longer receive material to that line, as example, we purchase 4000 feet of 10 Ga wire (4 – 1000 foot reels), and have a 4000 foot min on hand quantity, we received the 4 reels from our supplier and the line is complete and is closed. We transfer 1 reel from the SMI to STK leaving the SMI 1000 feet short of the our supplier sees that we took 1000 feet and ships another reel to bring us the the minimum.
Since the line for the 10 Ga wire is closed we can not receive the reel.
Can anyone help?