Understanding Customer Owned VMI Orders

You create customer owned VMI (VMI without consignment) orders when you transfer the ownership of inventory after shipping it to the customer's location, but want to maintain the inventory at your customer's location.

You can create customer owned VMI orders using the JD Edwards Sales Order Management system. To create a customer owned VMI order in JD Edwards EnterpriseOne, you use the Sales Order Entry program (P42101).

JD Edwards EnterpriseOne supports sales orders that consist of customer owned VMI shipments. The same sales order can have regular sales lines, internally owned shipment order lines, and customer owned VMI order lines. Customer owned VMI order lines in sales orders are like other sales order lines and have prices attached to them. The following graphic describes the business process for customer owned VMI orders:

You can attach free goods with both internally owned shipment and customer owned VMI orders. You can set up and track free goods using JD Edwards EnterpriseOne Advanced Pricing.