Customer Consignment in QAD’s Adaptive ERP

Posted on: March 3, 2022 | By: David Kwo | QAD Manufacturing, QAD Business Process

Summary

QAD provides out-of-the-box functionality to manage Customer consignment inventory that integrates all aspects of the process including shipping, tracking consigned inventory, usage reporting, and deferred billing until usage. This blog discusses the setups of the Customer Consignment module and subsequent transaction processing.

Customer Consignment Setups

The following setup is required when using the Customer Consignment module

  1. Enable the module through the Customer Consignment Control file. You can also set the default settings for Consignment Orders, Consignment Location, and In-Transit Location for tracking consigned inventory.
  2. Define locations to track consigned inventory through standard Location Maintenance. It is important that the Status be non-nettable and non-available. Note: it is typical to assign the location code to match the Customer ship-to number.
  3. For each Ship-to and Item combination that is under a consignment agreement, create a record using the Ship-To / Item Control function. For the combination, you can also define the customer-specific IN-Transit and Consignment tracking location.

Customer Consignment Processing

  1. Create a Sales Order and flag the line as consigned. This will default from the Ship-To / Item Control record but can also be manually updated. The following frames will appear when consignment is enabled.
  2. Ship the Sales Order using standard QAD shipping functions. On a consigned order, the material is transferred to the In-transit location and no pending invoice is generated.
  3. When the material arrives at the Customer, perform a Consignment Inventory Transfer to move the inventory from In-Transit to the customer ship-to’s consignment Location.
  4. When the Customer uses the material, report the usage through Inventory Usage Create. This will deduct the inventory from the consignment Location and generate the Pending Invoice.

Read more about managing customer profiles and accounts in QAD:

Using QAD to Manage Customer Forecast

Leveraging Customer Sequence Schedules in QAD

 

Next Steps

If you are interested in learning more Customer 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.



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