Understanding Internally Owned Shipments

You create internally owned orders when you want to retain the ownership of the inventory. Internally owned shipments can include orders for consigned inventory or VMI with consignment.

When you ship consigned inventory or internally owned VMI to a customer's location, you must record the items, quantities, agreements, and any additional customer-specific information that is related to the internally owned shipment.

You can create internally owned shipment orders by using the JD Edwards Sales Order Management system. To create an internally owned shipment order in JD Edwards EnterpriseOne, you use the Sales Order Entry program (P42101).

JD Edwards EnterpriseOne supports sales orders that consist of internally owned shipments and other order types. The same sales order can have regular sales lines, customer owned VMI order lines, and internally owned shipment lines. Internally owned shipment lines in sales orders do not have any price attached to them. At the time of creating an internally owned shipment order, inventory is not sold to the customer but only shipped to the customer's location. Inventory is considered sold only when the customer reports consumption.

The following illustration describes internally owned shipment process flow in JD Edwards EnterpriseOne: