Setting Up Consigned Inventory per Item

You can enable consigned inventory for items, which adds a separate set of on-hand, committed, and available quantities, along with costs, for tracking. It also adds separate asset and COGS accounts, which you can assign for consigned quantities of an item.

Important:

If you have existing items prior to enabling the Multi-location Inventory feature, be sure to distribute them before you set up consigned inventory for items. See Distributing Inventory.

To create or update items, see Creating Item Records. On item records of regular, lot, or serialized items, set these required or optional fields for consigned inventory:

1. On the Accounting subtab of an item record, you must check the Allow Vendor Consignment box.

   Note:

   You can't disable the Allow Vendor Consignment box for an item if you have open transactions that contain consigned quantities of the item. For more information, see Disabling Consigned Inventory Management.

2. Optionally, you can assign specific accounts for a consigned item in the following fields:

   Note:

   Vendor Consignment Asset and COGS accounts that you select for an item replace any corresponding default account preferences that you set for all consigned items. Your account updates don't apply to existing transactions. For more information about default accounts, see Setting Default Account Preferences for Consigned Items.

   • Vendor Consignment COGS Account - Select the Cost of Goods Sold expense account that tracks the cost of vendor consigned inventory for an item.

     If you leave this field blank and don't assign a default account preference for all consigned items, the regular COGS account is used.

   • Vendor Consignment Asset Account - Select the asset account that tracks the value of vendor consigned inventory on hand for an item.

     The account you select must be different from the one in the Asset Account field, which is used for non-consigned item quantities.

3. In the Costing Method field, select a costing method for the item.

4. Optionally, you can check the Use Bins box if you want to store and track items in bins.

   For more information, see Consigned Items in Bins.

5. You can enable settings for other features, such as the Add Location option for Advanced Item Location Configuration that you may use.

   Refer to the following topics on item setup for related inventory features:

   • Advanced Item Location Configuration - See Working with Item Location Attributes.

   • Advanced Inventory Management - See Inventory and Assembly Item Support and Lead Time and Safety Stock Per Location.

   • Demand Planning - See Demand Planning on Item Records.

   • Supply Planning - See Setting Supply Planning Parameters and Supply Planning Prerequisites.

   • Supply Allocation - See Setting Up Item Records for Supply Allocation.

   For instructions and other item settings such as costs, pricing, and accounting, see Creating Item Records or Entering Purchasing and Inventory Information on Items.

For information about tracking consigned inventory based on your item record settings, see Tracking Consigned Quantities and Values.

General Notices