Understanding Billing for Internally Owned Shipments

When you create an internally owned shipment order (consigned inventory or VMI with consignment), you bill your customers when they report consumption. When you report consumption using the Report Outbound Inventory Consumption application, the system automatically creates billing orders for the consumed inventory. Depending on the processing option setup, you can override the unit price before generating the billing order.

Note: You can create outbound inventory billing orders for internally owned shipment orders only. For customer owned VMI orders, the customer is billed when you ship inventory to the customer's location.

You use the Generate Outbound Billing Order batch program to create billing orders for consumed inventory.