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Supplier Consignment in QAD’s Adaptive ERP
Posted on: March 11, 2022 | By: David Kwo | QAD Financials, QAD Manufacturing
Summary
QAD provides out-of-the-box functionality to manage Supplier consignment inventory that integrates all aspects of the process including Purchase Orders, receiving, tracking consigned inventory, usage reporting, and deferred voucher and payment until usage.
Supplier Consignment Setups
The following setup is required when using the Supplier Consignment module
1. Enable the module through the Supplier Consignment Control file. You can also set the default settings for Consignment Orders, Aging Days, and whether consigned inventory should be consumed first if co-mingled with non-consigned inventory.
2. For each Supplier and Item combination that is under a consignment agreement, create a record using the Supplier / Item Control function. For the combination, you can define the default for the consignment flag on the PO, the aging days when ownership transfers if the material is not consumed, and the point at which PPV is calculated.
Supplier Consignment Processing
1. Create a Purchase Order and flag the line as consigned. This will default from the Supplier / Item Control record but can also be manually updated. The following frames will appear when consignment is enabled.
2. Receive the Purchase Order using standard QAD receipt functions. On a consigned order, the material is received into inventory, but no payables liability is created and the inventory is not included in the valuation or the balance sheet. A CN-RCT transaction will be seen in the transaction history.
3. When the material is issued out of inventory, QAD will automatically perform the RCT-PO transaction to match the issuance, which also creates the AP liability. This is invisible to the user and requires no input on their part.
In summary, QAD provides the necessary functionality to seamlessly manage Supplier consigned inventory with minimal setup and maintenance.
Read about customer consignment here: Customer Consignment in QAD’s Adaptive ERP
More on Purchase Orders: Using Supplier Schedules to Reduce Purchase Order Volumes
Next Steps
If you are interested in learning more about Supplier Consignment in QAD and/or maximizing the use of your QAD system, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8810.
