Consumption Rules

Consumption rules enable you to specify when the consumption of consigned inventory (ownership change) occurs. You define consumption rules on the Manage Consumption Rules page based on attributes such as transaction type, item, from organization, to organization and more.

For example, you can specify subinventory transfer, interorganization transfer, or internal material transfer transactions to trigger ownership changes.

If you create a rule with a higher level of granularity and another rule with a lower level of granularity, the rule that is created at the highest level of granularity (which is wider in coverage) applies during transactions.

Note: Interorganization transfers trigger consumption (ownership change) by default. If you want the material to remain consigned, you must set up a consumption rule to specify that consumption does not occur with interorganization transfers.

Example

This example depicts a consumption rule defined to trigger an ownership change for a transaction type of subinventory transfer. The following table shows the consumption rule setup which carries attributes such as transaction type, inventory organization, owning party, from subinventory, to subinventory, and item.

Transaction Type	Inventory Organization	Owning Party	From Subinventory	To Subinventory	Item
Subinventory transfer	M1-Supplier	Allied Supplier	FGI	Stores	CM6000