Logic for Consigned Inventory Receipt and Quantity Adjustments on the Manage Item Quantities Page

Let's look at the consigned inventory receipt and quantity adjustment logic when performing these two scenarios on the Manage Item Quantities page:

• Miscellaneous issue and receipt against a consigned inventory item

• Ownership transfer and Transfer to Consigned transaction with receipt reference

Transfer to Owned

For Transfer to Owned transactions, the application associates the Transfer to Owned quantity against the receipts in the order in which the receipts were received. The application starts with the oldest receipt first and uses FIFO (first in, first out) logic.

Transfer to Consigned

For Transfer to Consigned Transactions, the application associates the Transfer to Consigned quantity to the most recent Transfer to Owned transactions using the LIFO (last in, last out) logic. The application chooses the consuming transactions. Lot or serial numbers are used to identify the consuming transactions. If material isn't lot or serial controlled, LIFO (not FIFO) is used to default the most recent consumption transaction to restore the consigned attributes (reference documents, owning party, and dates). You can't transfer more than the original quantity consumed. Therefore, these transfers point to the Transfer to Owned transactions to help with tracking the consumed and consigned quantities.