Hi,
I found there is a concept called Non-stocked product in AX 2012, does it mean that AX 2012 support the consignment stock scenarios?
Thanks
Can you explain your business scenerio in detail ?
Hello, i never saw a scenario added so please allow me to add mine:
A large commercial printer in Dallas buys paper in bulk directly from a paper mill in Oregon. The mill delivers the paper on consignment but does not invoice the printer until the paper is consumed. Consumption needs to be reported weekly and the paper is invoiced at $50 per CWT. The printer wants to track real-time movement on the inventory, but no value or cost should be posted until it is consumed. The paper is received at the warehouse 500,000 pounds at a time. The paper arrives in individual serialized rolls in varying weights of approximately 5000 lbs. The printer uses approximately 12 rolls per week. Due to mill lead times, a new order needs to be placed when the inventory level falls below 250,000 pounds.
Thank you.
Consignment stock is nothing to do with non-stock requirements in essence. In teh mill example you cannot avoid value or cost being processed, but you can segregate it, you essentially sub-divide it by warehouse - you then report on outbound transactions from this warehouse to report back to teh supplier the usage, you also report stock valuation solely on this and periodically journal the value out to reflect your owned inventory, but having it segregated and costed means you are covered for insurance purposes if the warehouse is flooded/destroyed by an asteroid etc. which is also a requirement.
Do not try and prevent the whole costing process of AX - you manage and report the stock around the requirement.
Consignment stock feature is not available in AX. You need to customize it.
In one of the retail implementation we did so. We added an option of consignment stock on the stores. When the stock was received, we received it through Consignment stock form. The consignment stock had physical and financial negative inventory checked.
Consignment stock was sold through POS. Now when the statement(Stores Sales) was posted, we had other customization. At the same time PO was created for that item and it was received also. This was possible because only one vendor supplied that item.
The above scenario was simple but consignment stock can have many complexities. Some clients ask for all the features of consignment stock like sales, transfer, journals etc for consignment stock also w/o affecting inventtrans.
Pranav…
Thank you Adam,
You explained it well. Now I know…AND understand.
Shawn Kellis
Hi Pranav,
we are also currently looking into how we can handle consignment stock in AX.
I would really appreciate if you can help me on this and share information in details on my email id ax2012user@gmail.com
Thanks In Advance