Re: Consignment Inventory -- BPCS-L

We are also 405 CD We have supplier owned inventory mixed in with OUR inventory. We use a particular item class to designate that it is consignment inventory, and we store it at zero cost. I grant you that GAAP might not agree because it really does have value, and it is in our building and grounds. I think there may be an insurance liability to be able to show the value of what we have in our possession, even though not taxable. With our approach the inventory is indistinguishable from other inventory needed by MRP shop orders erc. The only distraction is reports showing inventory with zero cost may need adjustment to recognize that item class is A-Ok as zero, and in fact correct any that get costed in error. We use warehouses for 4 categories of inventory: Raw Material storage; Ready for Shipping; WIP; awaiting QC decision.

- Al Macintyre http://www.ryze.com/go/Al9Mac Find BPCS Documentation Suppliers http://radio.weblogs.com/0107846/stories/2002/11/08/bpcsDocSources.html BPCS/400 Computer Janitor at http://www.globalwiretechnologies.com/

, you wrote:

Dear All,
We are in the process of moving to a consignment type of inventory except
the supplier will manage the inventory levels and insure supply and we do
not own it until we use it.

We are on 405cd and believe we need to set up a separate warehouse to keep
off the general ledger and show as inventory.

We want to be able to allocate from either shop orders or MRP, our problem
is how to transfer the inventory to stock to withdraw from and pay
invoices as per our contract and do in with the least of manual input form
operations, purchasing, planning financial personnel.
Any information as to type of setup and transactions to do this would be
greatly appreciated.

Our goal is to expand this for bulk tank liquid products as well as non
liquid products


Thanks
Teunis

Teunis Eversen Jr C.P.M.
Corporate Purchasing Manager

SIKA Corporation
201 Polito Ave
Lyndhurst, NJ 07071

phone 201-933-8800 ext 4310
fax 201-933-9379

e-mail: eversen.teunis@xxxxxxxxxxxxx

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