Consigned Inventory in Internal Transfers

Supplier consigned inventory can be transferred from one inventory organization to another without an ownership change.

Sometimes supplier consigned inventory may be transferred across inventory organizations belonging to different profit center business units. An internal transfer financial orchestration flow may be defined between these business units. In such cases, the financial orchestration tasks are generated at the time of consumption of the supplier consigned inventory in the destination organization.

If the transfer to owned transaction is generated in an organization different from the receiver organization, the application checks if a financial orchestration flow exists between the profit center business units. The business units include the inventory organization where the goods were received and the inventory organization where goods were consumed. If a financial orchestration flow exists, financial orchestration tasks are generated for the internal transfer. If the transferred consigned inventory belongs to a global procurement PO, then the tasks for both the global procurement and the internal transfer are triggered at the time of consumption. The shipment and receipt transactions of the internal transfer of supplier consigned inventory are ignored.