Consignment Processing by Using Purchase Orders

The following is an overview of how you can process excise-exempt consignments by using a purchase order:

1. Use the Inventory Transfers program (P4113) to create the transfer from your location to the subcontractor's location.

   You must create the transfer using a document type of IT.

2. Use the Purchase Orders program (P4310) to create the purchase order that you use for the subcontract process.

   For example, you would need a purchase order to process a payment for the labor costs charged by the subcontractor.

3. Use the Work With Consignment program to create the consignment and associate the purchase order to the consignment.

   In the processing options, specify IT as the stock transfer type.

   The system creates the consignment and assigns it a status of 100.

4. Run the Print 57F(4) Challan program (R75I3906) to print the challan.

   You can set processing options and data selection to print a challan for a specific consignment or to print a list of multiple consignments.

   Note: The system changes the status of the consignment to 200, which indicates that the materials have been sent to the subcontractor.

5. Use the PO Receipts program (P4312) to enter information about your receipt of the goods from the subcontractor.

6. Use the Work With Consignment program to enter receipt information and indicate that the materials for a specific consignment were received back from the subcontractor. The system changes the status of the consignment to 300.

7. Use the Print 57F4 Register program (R75I3907) to print a report showing the items sent and received.