Re: Consignment Purchase Orders

Daniel Warthold

From: "Milt Habeck" <mhabeck@xxxxxxxxxx>
Reply-To: SSA's BPCS ERP System <bpcs-l@xxxxxxxxxxxx>
To: "BPCS user community" <BPCS-L@xxxxxxxxxxxx>
Subject: [BPCS-L] Consignment Purchase Orders
Date: Thu, 1 Mar 2007 09:22:23 -0600

Hi ...

This is intriguiging.

So, do you process a receipt transaction and then hold the consignment items in BPCS inventory with a zero inventory value? Are the consignment inventory

counts held in BPCS?

Do shipments from Clover to the ultimate customers generate revenue for
Clover in the form of some sort of per-unit handling fee rather than the
typical sales less COSales = gross profit revenue cycle? Said another way,
is your A/R collected from the owner of the consignment inventory rather
than the enterprises that receive shipments of the inventory from your
warehouse? If these guesses are correct, then it seems as if the owner of
the inventory cuts an invoice to its customer once you tell that enterprise
that a shipment has departed from your door.

If you do process a BPCS receipt transaction, I'm curious how you get the
inventory removed from BPCS when you ship it.

All these questions prove that I'm in the dark about your business process
... but the point that keeps popping into my head is that you may not be
doing yourself any favors by processing the purchase orders in BPCS. Why
can't the owner of the consignment inventory cut POs that are drop shipped
to you? They would have to have some sort of PO on their system anyway if
they wanted to 3-way match before paying their supplier.

If you can't convince the consignment inventory owner to cut his own POs,
then maybe you need a blanket PO processed outside of BPCS and manage
releases against the PO using a Kanban signal.

En pocas palabras, don't let the business process owner at Clover convince
you that this is a BPCS software problem.

Peace to you,

Milt Habeck
President
Unbeaten Path
www.upisox.com

North American  (262) 681-3525
International (888) 874-8008








From: frank.shaw@xxxxxxxxxxxx
To: bpcs-l@xxxxxxxxxxxx
Sent: Thursday, March 01, 2007 4:22 AM
Subject: [BPCS-L] Consignment Purchase Orders


We require a method whereby we can place a purchase order for stock items
for which we expect receipt of stock but that is where the chain of events
stop.
No creditors invoice will ever be captured against these orders as these
stock items are managed on behalf of a third party and they only get paid
once the stock is sold.
At month end we programmatically perform the following on both HPH and
HPO:
change the status in both HPH and HPO to '3'.
make the qty received and qty costed the same as qty ordered.

The purchasing month end then purges these records.

We would manage this workaround easier if volumes weren't so large but we
literally have thousands monthly.

Any ideas/input/feedback would be welcomed.

Kind regards,

Frank Shaw
Clover Information Services
Tel: +27 11 758 5380
Mobile: +27 82 451 0256
Fax: +27 11 758 5300
Email: frank.shaw@xxxxxxxxxxxx


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