Hi,
I wonder whether vendor managed inventory(VMI) is possible to be handled in AX 2012. The key of VMI is no physical value before it is used but it has to be in inventory on-hand.
Does anyone know how it can be managed in AX 2012?
Please, let us know about it.
Thank you.
Hi Adam,
I guess you are referring to consignment stock wherein vendor will purt stock in your warehouse but there shouldnot be any inventory or financial transaction. If that is so, then this feature is not available in AX. You need to customize it as per requirement.
Pranav…
We are using consignment inventory and it was a customization.
What we did was create a warehouse at each site called consignment. Material is released from a Purchase agreement with a price of $0.00. The material is then received into the consignment warehouse at $0.00. We then set up a trade agreement for the actual value of the goods the vendor will charge us.
When the goods are used, the Consignment PO is reversed for the qty used (-1), another line is added to the PO so we can received the offsetting qty (+1) to the regular inventory warehouse. Using this example, it’s possible to have the same product on consignment as well as in regular stock. All this happens instantaneously and seamlessly from the users perspective.
Our consumption algorithm checks the consignment inventory first, if it doesn’t find a positive value, then tries the regular warehouse. For month end, we created a custom report that aggregates the consignment usage by PO
Hope this helps.
We are using consignment inventory and it was a customization.
What we did was create a warehouse at each site called consignment. Material is released from a Purchase agreement with a price of $0.00. The material is then received into the consignment warehouse at $0.00. We then set up a trade agreement for the actual value of the goods the vendor will charge us.
When the goods are used, the Consignment PO is reversed for the qty used (-1), another line is added to the PO so we can received the offsetting qty (+1) to the regular inventory warehouse. Using this example, it’s possible to have the same product on consignment as well as in regular stock. All this happens instantaneously and seamlessly from the users perspective.
Our consumption algorithm checks the consignment inventory first, if it doesn’t find a positive value, then tries the regular warehouse. For month end, we created a custom report that aggregates the consignment usage by PO
Hope this helps.
John Worona CSCMP
Hi John,
Are you using master planning?
For the consumption algorithm, have you customized anything?
Pranav…