Understanding Consumption Reporting for Outbound Inventory

Reporting consumption is an integral part of the JD Edwards EnterpriseOne Outbound Inventory Management system. When your customer reports consumption of consigned inventory or VMI with consignment, you take decisions to generate billing and replenishment orders, and update the quantity levels at your customer's location.

Because the supplier is responsible to maintain inventory at the customer's location, they take all replenishment decisions as suggested by the customer or demand. Based on the replenishment method you set up, you can replenish outbound inventory based on a one-to-one or reorder point.

When you report consumption, the system:

• Updates inventory levels at the customer's location

• Generates quantity suggestions for you to take informed decisions on replenishment

• Subtracts the consumed quantity from on-hand quantity available at customer's location

• Generates billing orders for the consumed quantity

You can report consumption by specifying item and location, or by specifying the item, location and lot. The system also enables you to override the default price for billing and default quantity for replenishments that the system displays in the application. When you override the default quantity or price, you can send the overrides for approval to an agreement manager.

You use the Report Outbound Inventory Consumption application (P42I03) to report outbound inventory consumption. You use the same application to override the default suggested quantity for replenishment and default price for billing.