Consigned Inventory

Consignment inventory is a supply chain management strategy in which you store goods in a business unit without paying the supplier until after the goods are consumed. The Consignment Inventory feature, which enables you to implement this strategy across an entire enterprise, integrates a variety of functions within PeopleSoft Purchasing, Inventory, Production Management, Cost Management, and Payables.

In PeopleSoft Payables, the Voucher Build process creates voucher record sets for consigned items that have been consumed and costed. It does this by:

• Extracting data from the Depletion Accounting Entry table (CM_DEPLETE).

• Selecting rows for which the Voucher Build status is T (to be vouchered) or E (error).

• Processing these rows according to the processing option that is set for supplier location (using the Consign Voucher field on the Supplier Information - Procurement Options page at the supplier location level.

Processing options are:

Term	Definition
Auto	The Voucher Build process automatically creates vouchers (assuming that no Voucher Build errors occurred).
Manual	The Voucher Build process sets the status of affected data on the Depletion Accounting Entry table to N (never to be vouchered). The Voucher Build process does not process these vouchers because, in the case of rows with a Voucher Build status of M (manual), usage reports are provided to the supplier, and the invoice is not finalized until an invoice is received from the supplier.
Stage	The Voucher Build process creates vouchers and places them in the quick invoice entry tables for further user review.

When the Voucher Build process finishes processing a row in the Depletion Accounting Entry table by creating or staging a voucher, the process updates the status of that row to V (vouchered). If an error occurs during processing, the Voucher Build process changes the status to E.

Voucher details come from these sources:

• The price is extracted from the purchase order, or the receipt if no purchase order exists.

• Distribution information is extracted from the distribution lines on the receipt.

• Order detail is extracted from the IN_DEMAND table.

Other voucher data that is extracted from the purchase order or receipt includes:

• Unit of measure (UOM) and UOM conversion rate.

  Note:

  The Depletion Accounting Entry table stores data in the item's standard UOM; the Voucher Build process converts this to the receipt supplier's UOM.

• Invoice ID from the packing slip number that is referenced on the original receiver.

• Supplier and supplier location.

• PeopleSoft Payables business unit.

The CM_ACTUAL_COST table identifies the receipt with the depleted transaction. For the same receiver line or distribution, it is summed for one voucher or distribution line.

The Voucher Build process assigns voucher IDs for each voucher based on the next voucher ID that is available from the PeopleSoft Payables business unit. The process uses the packing slip number on the receiver as the invoice ID. To prevent duplicate invoice IDs, the process increments the ERS_INV_SEQ number field by one each time a packing slip is used as the invoice ID.

Voucher Build pre-edit errors for Consigned Inventory vouchers are logged on the Consigned Inventory Voucher Exceptions page.