Setting up and initializing the inventory contracts for DC1 Contract Managed Inventory (CMI)

General information

Duration of the inventory contracts

There is substantial flexibility when deciding the duration of inventory contracts. The following possibilities exist:

Running contract without a contract quantity on the contract line(s)

This is applicable for all types of contracts except the CBS-, WBS-, and DIS inventory contracts. This gives you the possibility to have a running agreement with your customer or supplier without a contract quantity limit and time period. You can create one contract and add contract lines as the need becomes apparent.

Time related contract with quantity limited contract line(s)

This is applicable when you decide that you will accept such an agreement with your customer or supplier for a limited time period, and for a limited number of items.

If the CMI-MULT function is activated in the Function control file, you will be able to run multiple receptions during the initialization process of all applicable contracts (CDS-, SCS-, Logistic SCS-, WCS-, and WDS), for the same contract line, as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.

Quantity limited contract line(s), but no time related contract

This is applicable when you decide that you will accept such an agreement with your customer or supplier without any time period restriction, but only for a limited number of items.

If you choose to not have a running contract without a contract quantity limit (for the applicable types of contracts), the time span for how long the Inventory contract is valid is determined by the following:

The contract quantity on the inventory contract line denoting that you want a quantity limit for the contract. (A contract quantity must be defined for a CBS-, WBS-, and DIS inventory contract but is an optional entry for the other types of contracts.) If an inventory contract was not set up to be valid within a specific date range, the contract line will be closed (i.e. cannot be used on any orders) as soon as the contract quantity is consumed (e.g., you have sold the quantity). You can always create a new line for the same item with a new quantity.
(Optional) Specific date range on the contract header and/or contract line. The end date is the controlling date for the sale of the goods. You can leave the start/end control fields blank on each level; or define them only on the contract header; or only on contract line. If you define them in both places, the dates on the contract line must be within the dates on the header. If the quantity is consumed before the end date is reached, the contract line will be closed. If the end date is reached before the quantity is consumed the contract line will be closed. If the latter occurs, you will have to make some decisions about what to do with the left-over stock, depending on the type of contract.
Example: If, for a Supplier Consignment Stock (SCS) contract, the end date was reached before the contracted quantity on the contract line was sold, you have three possibilities from which to choose when determining what to do with the remaining externally owned stock in your physical warehouse:

Extend the end date
Take over the ownership
Send it back to the supplier

Linking contract keys to restrict sales from the inventory contract

Customers are mandatory to define for the following inventory contract types since the inventory is either owned by the customer, located at a customer, or reserved for a specific customer:

Customer Deposit Stock (CDS) at wholesaler
Wholesaler Consignment Stock (WCS) at customer
Customer Buffer Stock (CBS) at wholesaler
Deferred Indent Stock (DIS) at customer

For the following inventory contract types, defining a customer is optional:

Supplier Consignment Stock (SCS) at wholesaler
Supplier Consignment Stock (SCS) at wholesaler – Logistic handling only
Wholesaler Deposit Stock (WDS) at supplier
Wholesaler Buffer Stock (WBS) at supplier

For any of the inventory contract types where customer is optional, you may define a customer, or link a contract key from the Work with DIS control keys file, or leave both fields blank. What you choose to do will have the following impact:

Define a customer	Link a contract key	No customer or contract key
If a customer is defined for any of these types of inventory contracts, the contracted inventory will be allocated specifically to this customer, meaning the stock only can be sold or dispatched to this customer.	This allows you to restrict sales from the inventory contract to a number of customer groups, buying groups, etc. You define the key values for the contract key by clicking the Contract key values function key. Changing contract key is possible even if orders have been created. However changing the contract key will not have any effect on already created orders.	If neither customer nor contract key is defined the inventory is available for all customers, meaning the stock can be sold or dispatched to all customers.

Sales and purchase order related default values

Default values can be set up on both inventory contract header level and inventory contract line level (per line) which will be used for the orders that are created from the inventory contract. If no defaults are set up, the conditions from the customer/supplier file will be used on the orders.

Statuses

All inventory contracts and inventory contract lines receive a status denoting the progress. The system automatically updates the status.

Status	Description
Inventory contract
N (New)	The inventory contract is new but no order for any line has been created. The inventory contract will immediately receive this status as soon as it is created, even if it is not activated.
O (Open)	Order has been created for at least one of the lines on the contract.
C (Closed)	The inventory contract is closed which means that orders can no longer be created. The inventory contract header receives this status when all lines for the contract are closed. A line is set to closed when the entire contracted quantity is consumed.
Inventory contract line
Status	Description
N (New)	The inventory contract line is new but no order for the line has been created yet. The inventory contract line will immediately receive this status as soon as it is created, even if the inventory contract itself has not been activated.
O (Open)	Order has been created for the line on the contract. Note: You can manually open a line.
C (Closed)	The inventory contract line is closed which means that orders can no longer be created for this line. The inventory contract line receives this status when the entire contracted quantity for the line has been consumed. Note: You can manually close a line if no quantities on purchase or sales order exist.

Every action that is performed for an inventory contract and inventory contract line is logged and can be viewed via a Log file. On header level, the log file displays the status progression for the inventory contract. On line level, the log file displays the status progression for the line as well as the actions taken/achieved for the inventory contract line.

Availability control and auto-sourcing

The different inventory contract types are sourced and driven in different ways. The following is a brief explanation of the sourcing for each inventory contract type.

Inventory types	How they are sourced
Customer’s deposit stock at wholesaler (CDS)	Almost normal sourcing. A specific warehouse (or several warehouses) is defined in the system for this kind of contracted stock. The warehouse code can be used in the sourcing policy according to current DC1 standard functionality which means that you can decide the rules for sourcing of this kind of stock, e.g. placing a CDS early or late in the auto sourcing logic.
Supplier’s consignment stock at wholesaler (SCS)	The following applies for both “normal” SCS contract handling and Logistic SCS contract handling. Almost normal sourcing. A specific warehouse (or several warehouses) is defined in the system for this kind of contracted stock. The warehouse code can be used in the sourcing policy according to current DC1 standard functionality which means that you can decide the rules for sourcing of this kind of stock, e.g. placing an SCS early or late in the auto sourcing logic.
Wholesaler’s consignment stock at customer (WCS)	Auto-sourcing can be used if the WCS-warehouse is included in the sourcing policy. The sourcing program will not search for a WCS-contract unless the warehouse is included in the sourcing policy. By using the sourcing policy you can decide if this automatic sourcing shall take place and also control in which sequence this alternative for sourcing shall be applied.
Wholesaler’s deposit stock at supplier (WDS)	Almost normal sourcing. A specific warehouse (or several warehouses) is defined in the system for this kind of contracted stock. The warehouse code can be used in the sourcing policy according to current DC1 standard functionality which means that you can decide the rules for sourcing of this kind of stock, e.g. placing a WDS early or late in the auto sourcing logic.
Customer’s buffer stock at wholesaler (CBS)	Normal sales order but considering buffer stock. Availability check will check for buffer stock reserved for the customer before normal sourcing and availability check.
Wholesaler’s buffer stock at supplier (WBS)	Almost normal BtB. This inventory contract type is processed more or less exactly as a normal BtB sales order. There are a few differences, primarily regarding the logic for updating after the sourcing logic, e.g. update on the inventory contract and regarding check of valid customers (contract key values).
Deferred indent stock at customer (DIS)	By using a specific sales order type and by referring to the inventory contract the consumption of stock can be entered. This is done by entering normal sales order lines. It means that the contract is not retrieved in the auto-sourcing routine, it is instead retrieved by the manually entered contract.

Creating sales orders for items managed by inventory contracts

There are five different ways to create the sales orders for items that are managed by (applicable) inventory contracts. It will never be possible to create a sales order line for a CMI-related warehouse, without linking the sales order line to an inventory contract. If auto-sourcing is configured in your DC1 system, the fifth alternative uses auto-sourcing.

The first alternative is when customer call off’s or charge consumptions are created from the Work with inventory contracts routine. With this alternative the sales order line has already been provided with a warehouse from which to source from the inventory contract. Auto-sourcing is not applicable.
The second alternative is when a reference is made to the inventory contract on the sales order header, alternatively on the sales order line during sales order entry. When such a reference is defined, the entered lines are validated against the inventory contract and the warehouse is retrieved from the inventory contract. Auto-sourcing is not applicable.
The third alternative is by using the Inventory contract availability program during sales order entry. The panel can be accessed via the Inventory contr availability program function on the Order lines panel. All contract lines with an available quantity for a specific inventory contract will be listed. The inventory contract can either be the contract which was referred to when the sales order was created, or another inventory contract which can be defined on this panel. It will be possible to select lines and enter quantities for these lines, giving the user an easy and user-friendly way to create sales order lines that are to be linked to a specific inventory contract. Auto-sourcing is not applicable.
The fourth alternative is by entering a warehouse manually during sales order entry. When a sales order is created, it is possible to enter a default “From warehouse”. It is also possible to manually enter a warehouse on the sales order line panel. If the defaulted or entered warehouse is a CMI-related warehouse (i.e. a warehouse with warehouse characteristics code equal to 3, 4, 5 or 6), a search will take place to find an inventory contract automatically. This will be done even if auto-sourcing is not on for the sales order.
The fifth alternative is when no reference against the inventory contract is made during sales order entry. Items are entered and if auto-sourcing is configured to be processed it will be processed. As a result of the auto-sourcing, the sales order line may be sourced using an inventory contract.

Auto-assign setting on inventory contract lines

There are three ways to connect inventory contracts to a manually entered sales order line. Depending on the Auto-assign setting for each inventory contract line in the inventory contract, the inventory contract can automatically be linked (i.e. assigned) or you will have to manually link the inventory contract on sales order line level.

Ways to connect	Auto-assign setting
1. Enter (link) the Inventory contract on the Create new panel when adding a sales order.	The Auto-assign setting is not relevant. This alternative works like a CMI process. It will automatically find the inventory contract line with the available quantity regardless of the Auto-assign setting for the inventory contract line. What inventory contract line it finds is dependent on the ICFULLQT (Inv contract line, Full qty) function setting in the Function control file. When the system tries to find an inventory contract line that the sales order line can be linked to, it will first always try to find the contract line that has the closest end date (based on order date) and secondly has the oldest reception date (e.g. if several lines exist that have no end date defined). If the first contract line that is found holds an available quantity that is higher or equal to the order quantity, the sales order line will be linked to the found contract line. But if the available quantity on the contract line is less than the ordered quantity, the next step will depend on the status of the ICFULLQT function control setting. If the ICFULLQT function control is not active, no further search will take place. The sales order line will not be linked to any contract line. A message will notify the user that if the quantity is reduced, the sales order line will be linked to the found contract line. If the ICFULLQT function control is active, the system will continue to search for valid contract lines and select the first one that is found that has an available quantity that is higher or equal to the ordered quantity. If no contract line is found with an available quantity higher than the ordered quantity, the same message will appear as if ICFULLQT is not active.
2. Enter the warehouse and item that is defined for the inventory contract when creating the sales order line.	If you enter a CMI-related warehouse, the system has to find an inventory contract. The system will only automatically find an inventory contract line, and retrieve the chosen inventory contract ID to the Inventory contract field on the Work with sales orders, Order line, Main info panel, if a valid contract line with enough available quantity and with Auto-assign set to YES is found. Otherwise an error will be displayed for that field. It will be possible to select the window prompt for that field. If a valid contract line is found (irrespective of the Auto-assign setting and available quantity) it will be possible to select the line in the prompted window. If the Auto-assign setting is NO, the line will be assigned because you have selected the line by choice; it is no longer automatically assigned. If you try to select a contract line with available quantity less than ordered quantity, a message will be displayed that you have to reduce the quantity in order to be allowed to select this contract line. The ICFULLQT functionality is also applied in this situation if you have more than one contract line for the item in the warehouse.
3. If your system is set up to use the sourcing policy functionality, and the system finds that it can use the warehouse for the inventory contract, the applicable inventory contract will be linked to the line and retrieved to the Inventory contract field on the Work with sales orders, Order line, Main info panel.	If the auto-sourcing finds a contract line with Auto-assign set to NO, it will try to find another warehouse for which the sales order line can be created. If it does, the line is created but a message will be displayed denoting that an inventory contract line with Auto-assign = N was found during sourcing. The user can then go to the detail panel and select the contract line via the window prompt in the Inventory contract field. Note: If the user does not blank out the warehouse before using the window prompt in the Inventory contract field, an error message will be displayed for that field denoting that a contract was not found. This is because the old warehouse still remains on the line and is used in the search for a valid contract line. To avoid receiving this error message, it is recommended that the warehouse is blanked out before selecting the new contract line. The same will take place if the found contract line did not have enough available quantity. If the sourcing cannot find any other warehouse for which the line can be created, a message will be displayed informing the user that Auto-assign is N, or that the available quantity is less than ordered. The ICFULLQT functionality is also applied in this situation if you have more than one contract line for the item in the warehouse.

Ways to connect

Auto-assign setting

1. Enter (link) the Inventory contract on the Create new panel when adding a sales order.

The Auto-assign setting is not relevant. This alternative works like a CMI process. It will automatically find the inventory contract line with the available quantity regardless of the Auto-assign setting for the inventory contract line. What inventory contract line it finds is dependent on the ICFULLQT (Inv contract line, Full qty) function setting in the Function control file.

When the system tries to find an inventory contract line that the sales order line can be linked to, it will first always try to find the contract line that has the closest end date (based on order date) and secondly has the oldest reception date (e.g. if several lines exist that have no end date defined). If the first contract line that is found holds an available quantity that is higher or equal to the order quantity, the sales order line will be linked to the found contract line. But if the available quantity on the contract line is less than the ordered quantity, the next step will depend on the status of the ICFULLQT function control setting.

If the ICFULLQT function control is not active, no further search will take place. The sales order line will not be linked to any contract line. A message will notify the user that if the quantity is reduced, the sales order line will be linked to the found contract line.
If the ICFULLQT function control is active, the system will continue to search for valid contract lines and select the first one that is found that has an available quantity that is higher or equal to the ordered quantity. If no contract line is found with an available quantity higher than the ordered quantity, the same message will appear as if ICFULLQT is not active.

2. Enter the warehouse and item that is defined for the inventory contract when creating the sales order line.

If you enter a CMI-related warehouse, the system has to find an inventory contract. The system will only automatically find an inventory contract line, and retrieve the chosen inventory contract ID to the Inventory contract field on the Work with sales orders, Order line, Main info panel, if a valid contract line with enough available quantity and with Auto-assign set to YES is found. Otherwise an error will be displayed for that field. It will be possible to select the window prompt for that field. If a valid contract line is found (irrespective of the Auto-assign setting and available quantity) it will be possible to select the line in the prompted window. If the Auto-assign setting is NO, the line will be assigned because you have selected the line by choice; it is no longer automatically assigned. If you try to select a contract line with available quantity less than ordered quantity, a message will be displayed that you have to reduce the quantity in order to be allowed to select this contract line. The ICFULLQT functionality is also applied in this situation if you have more than one contract line for the item in the warehouse.

3. If your system is set up to use the sourcing policy functionality, and the system finds that it can use the warehouse for the inventory contract, the applicable inventory contract will be linked to the line and retrieved to the Inventory contract field on the Work with sales orders, Order line, Main info panel.

If the auto-sourcing finds a contract line with Auto-assign set to NO, it will try to find another warehouse for which the sales order line can be created. If it does, the line is created but a message will be displayed denoting that an inventory contract line with Auto-assign = N was found during sourcing. The user can then go to the detail panel and select the contract line via the window prompt in the Inventory contract field. Note: If the user does not blank out the warehouse before using the window prompt in the Inventory contract field, an error message will be displayed for that field denoting that a contract was not found. This is because the old warehouse still remains on the line and is used in the search for a valid contract line. To avoid receiving this error message, it is recommended that the warehouse is blanked out before selecting the new contract line.

The same will take place if the found contract line did not have enough available quantity.

If the sourcing cannot find any other warehouse for which the line can be created, a message will be displayed informing the user that Auto-assign is N, or that the available quantity is less than ordered. The ICFULLQT functionality is also applied in this situation if you have more than one contract line for the item in the warehouse.

Decrease the quantity on an inventory contract line

What program you use to decrease the quantity on a contract line depends on the inventory contract type.

Work with inventory routine	Work with inventory contracts routine
The following contract line quantities correspond to an actual stock on hand quantity in your warehouse. These quantities have to match each other, meaning the total contract line quantity for all contract lines within a contract has to be the same as the stock on hand quantity for the “contract” warehouse in the Warehouse balance enquiry. If you want to decrease the quantity for such a contract line, you have to use this routine to decrease the quantity using an inventory transaction. CDS contract line SCS contract line Logistic SCS contract line WCS contract line WDS contract line If you configured the CMIQTYDECR (Quantity on CMI contract decreased) alert, it will be triggered when a contract line quantity is decreased on an inventory transaction.	You can decrease the quantity on a contract line from this routine for the following contract lines since the quantities do not correspond to a stock on hand quantity in your warehouse: WBS contract line DIS contract line CBS contract line – this quantity corresponds to a temporary reservation, which also will be updated if you change the quantity on the CBS contract line. This can be done for a contract line that has not been initialized as well as for one that has been initialized (with status O). If you want to decrease the quantity for a contract line that has been initialized, you cannot decrease it below the consumed + on purchase order quantity.

Work with inventory routine

Work with inventory contracts routine

The following contract line quantities correspond to an actual stock on hand quantity in your warehouse. These quantities have to match each other, meaning the total contract line quantity for all contract lines within a contract has to be the same as the stock on hand quantity for the “contract” warehouse in the Warehouse balance enquiry. If you want to decrease the quantity for such a contract line, you have to use this routine to decrease the quantity using an inventory transaction.

CDS contract line
SCS contract line
Logistic SCS contract line
WCS contract line
WDS contract line

If you configured the CMIQTYDECR (Quantity on CMI contract decreased) alert, it will be triggered when a contract line quantity is decreased on an inventory transaction.

You can decrease the quantity on a contract line from this routine for the following contract lines since the quantities do not correspond to a stock on hand quantity in your warehouse:

WBS contract line
DIS contract line
CBS contract line – this quantity corresponds to a temporary reservation, which also will be updated if you change the quantity on the CBS contract line.

This can be done for a contract line that has not been initialized as well as for one that has been initialized (with status O). If you want to decrease the quantity for a contract line that has been initialized, you cannot decrease it below the consumed + on purchase order quantity.

Consuming from an inventory contract line

The consumption of goods managed by an inventory contract can mean different things. For example:

selling the items
purchasing the items for your own replenishment or for an ownership takeover
re-purchasing goods that you sold
transferring the goods in-house
performing an action after the contract has stopped to consume the remaining quantity on the contract. The action could, e.g., be taking back a quantity that the customer owns, sending it back to the supplier.

There are different ways of selling the items depending on the inventory contract type. It can be via a call off or a charge consumption (triggered by a CMI process), or via actual sales (manually creating the sales order and sales order lines). All purchase related activities are triggered by a CMI process. See About consuming goods from Contract Managed Inventory (CMI) for the links to the specific instructions per inventory contract type.

The contract quantity for the item on every inventory contract line is the controlling quantity. For every action that you perform the quantity is consumed. As you consume the goods, the consumed quantity is tracked and updated on the line. When the consumed quantity matches the contract quantity the line will automatically be closed. To re-open a line you can increase the contract quantity for a CBS-, WBS-, and DIS-contract. For the other types of inventory contracts it depends if the CMI-MULT (CMI Multiple reception) function is activated in the Function control file.

CMI-MULT (CMI Multiple reception) not activated	CMI-MULT (CMI Multiple reception) activated
If this function is not activated in the Function control file, and a contract quantity is defined for the contract line, it makes no sense to increase the contract quantity for the other types of contracts since you must run a CMI process (or link the inventory contract to a manually created order for some of the types of inventory contracts) to initialize the line for these contracts. Regardless, since initialization can only take place once for each line (when this function control is not activated), you will not be able to run another initialization for that increased quantity. Likewise, if a contract quantity was not defined for the contract line you will only be able to perform a “supply” once to initialize the line. Hence, for the CDS-, SCS-, Logistic SCS-, WCS-, and WDS contracts, you should create a new line.	If this function is activated in the Function control file, and a contract quantity is defined for the contract line, you can receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You can also increase the contracted quantity when needed and then perform a “supply” to initialize that increased quantity. Hence, for the CDS-, SCS-, Logistic SCS-, WCS-, and WDS contracts you can increase the contracted quantity on the line when needed. If a contract quantity was not defined for the contract line you will be able to constantly supply the line as needed.

CMI-MULT (CMI Multiple reception) not activated

CMI-MULT (CMI Multiple reception) activated

If this function is not activated in the Function control file, and a contract quantity is defined for the contract line, it makes no sense to increase the contract quantity for the other types of contracts since you must run a CMI process (or link the inventory contract to a manually created order for some of the types of inventory contracts) to initialize the line for these contracts. Regardless, since initialization can only take place once for each line (when this function control is not activated), you will not be able to run another initialization for that increased quantity. Likewise, if a contract quantity was not defined for the contract line you will only be able to perform a “supply” once to initialize the line. Hence, for the CDS-, SCS-, Logistic SCS-, WCS-, and WDS contracts, you should create a new line.

If this function is activated in the Function control file, and a contract quantity is defined for the contract line, you can receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You can also increase the contracted quantity when needed and then perform a “supply” to initialize that increased quantity. Hence, for the CDS-, SCS-, Logistic SCS-, WCS-, and WDS contracts you can increase the contracted quantity on the line when needed. If a contract quantity was not defined for the contract line you will be able to constantly supply the line as needed.

Batch handling

If the CMI-BATH (Batch handling) function is activated in the Function control file, the system will control and validate the matching between an Inventory contract line and a Batch number, i.e. each batch must be attached to a unique Inventory contract line during reception of goods on the line as well as during the picking of a batch on the line. In other words, there will not be any possibility to receive or pick two different inventory contract lines with the same batch number.

If that function is not activated, the system will not control the matching between an Inventory contract line and a Batch number. You will be able to receive/pick items with the same batch more than one time (as new lines) for one inventory contract.

Sales restrictions

You can set up restrictions on the sale of either certain items, or to certain customers for an inventory contract. See Setting up the sales restriction functionality for instructions.

Setting up the inventory contracts

Click the applicable link below to expand and view the setup requirements.

Setup – Inventory contract for Customer Deposit Stock (CDS) at wholesaler

With this type of inventory contract, the goods are owned by the customer but physically located at your warehouse site.

From a financial standpoint, you should gain something, somewhere in order to accept this kind of business deal. The following possibility is an example of how you could recoup the cost that you would bear to enter into such an agreement. It is up to you and the customer to agree about the solution.

Define a sales price on the inventory contract line that is higher than the normal sales price.

Select the Work with inventory contracts menu item.
Click the Add option.
Define the following header information.

The following information is mandatory:

Inventory contract: If an extended number series was set up for inventory contracts in the DIS control file, you can either leave this field blank to let the system automatically assign the number, or manually enter the identity of the inventory contract.

Description: Enter the description of the inventory contract.

Contract type: Enter or select the CDS (Customer deposit stock) panel value.

Customer: Enter the customer for the inventory contract.

Currency: The currency for the customer on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the sales price currency for inventory contract lines and when sales orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Handler: Enter the ID of the handler for the inventory contract. This is normally the person that entered the inventory contract into the system.

Responsible: Enter the ID of the person responsible for the inventory contract. This could be different from the handler.

Warehouse: Enter the CDS-warehouse identity that is set up in DC1 for this type of inventory contract.

Valid for SMS: This field is only displayed if the DC1 Supplier Marketing Support application is active. Indicate if sales order lines that are linked to this inventory contract are to be valid for SMS rebates.

Off-contract sales

The setting in this field controls the possibility to combine sales order lines (i.e. lines connected to an inventory contract and others not connected to an inventory contract) on a sales order when the user defines the contract number on the sales order header.

If this flag is set to YES, and the warehouse for the non-contract item is included and activated in your sourcing policy, a warning will be issued, (denoting that the item is not found on the inventory contract and that normal sourcing will take place), but the user will be able to add sales order lines for non-contract items to the sales order as well as items from other inventory contracts.

If this flag is set to NO, an error message will be issued and it will not be possible to add a sales order line for a non-contract item to the sales order. It will also not be possible to add a sales order line for items from other inventory contracts. However, if this flag is set to NO and if this inventory contract is only defined on line level, it will still be possible to mix lines for this inventory contract together with non-contract items and/or items from other inventory contracts.

The following fields are optional:

Start-end date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract, your choices include:

Enter only a start date denoting from when the inventory contract will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date.

See Duration of the inventory contracts above for more information.

Click the Next button if you want to define sales order related default values for the inventory contract. Otherwise, click OK to update the contract header. The log file for this contract will be updated with the post “Contract was created” along with the date and time it was created, and the user ID who created the contract.

Highlight the CDS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel click the Add option to add a new line.
Complete the following fields:

Item: Enter the item for the inventory contract line.

Contract quantity

To initialize a contract line for this type of contract a “supply” needs to be performed. The number of times a quantity can be received for the line, as well as if any quantity can be increased, is determined by a function in the Function control file. This field is an optional entry. You have the following two choices:

1. Enter the contract quantity	2. Leave the field blank
When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	When you leave this field blank it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

1. Enter the contract quantity

2. Leave the field blank

When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

When you leave this field blank it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Contract unit: This is the unit for the contract which can be manually entered here or automatically retrieved after clicking OK. The unit must be valid both as sales and purchase unit for the item. All sales and purchase orders will be created in contract unit. The conversion factor for the unit needs to result in even stock units. All quantities on the contract line will be stored both in stock units and in contracts units. If contract unit is not entered, then the stock unit will be retrieved as the contract unit. Once orders have been created for the inventory contract line it will no longer be possible to change the contract unit.

The following fields are optional and dictate the validity period for the contract line:

Start date
End date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract line, your choices include:

Enter only a start date denoting from when the inventory contract line will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract line will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date for the inventory contract line.

See Duration of the inventory contracts above for more information.

The following fields are automatically set:

Auto-assign: This flag is set to YES by default. When the inventory contract line is selected during the auto-sourcing routine at sales order entry, it is this flag that determines whether or not the sales order line is to be automatically linked to the contract line or if the order handler is to be informed about the existence of the contract line in an information message. Keep this flag set to YES or change it to NO depending on your requirements. See Auto-assign setting on inventory contract lines above for more information.

Warehouse: The warehouse defined on the contract header is defaulted. It is possible to enter another warehouse than the defaulted one.

Click the Next button if you want to define sales price information for the inventory contract line. (Tip: To recoup the cost that you would bear to store this externally owned stock at your warehouse site, and assuming this is agreed upon by you and the customer, click the Next button and define a sales price that is higher than the normal sales price). Otherwise, click OK to update the contract line. The log file for this line will be updated with the post “Contract line was created” along with the date and time it was created. Repeat the instructions from step 5 for all lines you want to add.

You must now activate the inventory contract and then run the Supply deposit CMI process on inventory contract line level, for every contract line, to initialize the contract line and thereby move the goods from the logical (Trade) warehouse to the logical CDS-warehouse set up in your system. The quantity will then be available for sale and/or for running other contract processes. See Activate and initialize the Customer Deposit Stock (CDS) at wholesaler inventory contract below for instructions.

Setup – Inventory contract for Supplier Consignment Stock (SCS) at wholesaler

With this type of inventory contract, the goods are owned by the supplier but located at your (the wholesaler) warehouse site. This type of inventory gives you the possibility to sell the goods to your customers, without having to pay for them in advance. You only pay for them once they have been sold.

Other than the benefit of only paying for the goods once you have sold them, you may want some other kind of incentive to enter into this kind of business deal. There are several possibilities in DC1 allowing you to justify the storage of this externally owned stock at your warehouse site. It is up to you and the supplier to agree about the solution. The following are some examples:

Set up an SMS agreement for the items on your SCS-contracts allowing you to claim SMS rebates from your supplier.
Define a purchase price on the inventory contract line that is lower than the normal purchase price.
You accept some supplier owned items in your warehouse, and the supplier accepts some of your owned items in their warehouse (i.e. you set up and run both SCS- and WDS-contracts).
Set up supplier rebate agreements.

Select the Work with inventory contracts menu item.
Click the Add option.
Define the following header information.

The following information is mandatory:

Inventory contract: If an extended number series was set up for inventory contracts in the DIS control file, you can either leave this field blank to let the system automatically assign the number, or manually enter the identity of the inventory contract.

Description: Enter the description of the inventory contract.

Contract type: Enter or select the SCS (Supplier Consignment Stock) panel value.

Supplier: Enter the supplier for the inventory contract.

Currency: The currency for the supplier on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the purchase price currency for inventory contract lines and when purchase orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Handler: Enter the ID of the handler for the inventory contract. This is normally the person that entered the inventory contract into the system.

Responsible: Enter the ID of the person responsible for the inventory contract. This could be different from the handler.

Cost centre: Enter the cost centre to which the inventory contract belongs. When a sales or purchase order is created from the inventory contract, the order will inherit the cost centre from the inventory contract.

Warehouse: Enter the SCS-warehouse identity that is set up in DC1 for this type of inventory contract.

Valid for SMS: This field is only displayed if the DC1 Supplier Marketing Support application is active. Indicate if sales order lines that are linked to this inventory contract are to be valid for SMS rebates.

Off-contract sales

The following fields are optional:

Start-end date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract, your choices include:

Enter only a start date denoting from when the inventory contract will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date.

See Duration of the inventory contracts above for more information.

For this type of inventory contract, the customer is optional. You may define a customer, or link a customer-related contract key from the Work with DIS control keys file, or leave both fields blank. See Linking contract keys to restrict sales from the inventory contract above for more information.

Customer
Contract key

The following field is also optional:

Customer currency: It is possible to enter a customer currency without entering a customer. However, if you want to define sales prices on the SCS-contract lines you have to enter a customer currency.

Click the Next button if you want to define sales order related and/or purchase order related default values for the inventory contract. Otherwise, click OK to update the contract header. The log file for this contract will be updated with the post “Contract was created” along with the date and time it was created, and the user ID who created the contract.

If a customer was not defined on the contract header and you want to define exceptions for customers separately, select the Customer settings option and define the applicable settings, for any of the following, per applicable customer:

Setting

Retrieval during sales order entry

Backlog

The system retrieves the backlog flag in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If the flag is set to YES or NO, it will be used for the order header.
If the flag on customer settings level is not set to YES, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If that flag is set to YES or NO, it will be used for the order header.
If the backlog flag on the contract header is blank, the flag from the sales order type is used.

If no inventory contract is manually entered/linked during sales order creation, the backlog flag from the sales order type is used.

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The system retrieves the terms of payment in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If a terms of payment is entered, it will be used for the order header. If a debtor exists, the settings are checked for the debtor.
If a terms of payment on customer settings level is not defined, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If a terms of payment is defined on that level, it will be used for the order header.
If the terms of payment on the contract header is blank, the setting from the Business partner file (for debtor if one exists) or the sales order type is used.

If no inventory contract is manually entered/linked during sales order creation, the terms of payment from the Business partner file or the sales order type is used.

Credit profile

This setting impacts the credit limit retrieval as well as the total open sales order balance calculation for the customer.

For credit limit retrieval:
The system retrieves the credit profile in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If a credit profile is entered, it will be used for credit limit retrieval.
If a credit profile on customer settings level is not defined, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If a credit profile is defined on that level, it will be used for credit limit retrieval.
If the credit profile on the contract header is blank, the setting from the Business partner file is used for credit limit retrieval.

If no inventory contract is manually entered/linked during sales order creation, the credit profile from the Business partner file is used for credit limit retrieval.

For total open sales order balance calculation:
It works as follows:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel, and a credit profile was found in the Customer settings file, or the contract header, the total balance is calculated for:

all orders with status less than 60 for this customer and assigned to the same contract
and
all invoiced orders for this customer and assigned to the same contract which are waiting in transaction files (not transferred to Financial application)

as follows:

+ Open orders for inventory contract
+ Invoiced not transferred for inventory contract
= Total balance

If no inventory contract is manually entered/linked on the Work with sales orders, Create new panel, or one is entered/linked but no credit profile was found in the Customer settings file, or the contract header, the total open sales order balance calculation differs depending on if the CR-CMIOO (Credit control, incl CMI in Oo) function is activated in the Function control file. If that function is activated, the balance will be totaled for all orders for the customer, including those with an inventory contract defined. If that function is not activated, sales orders for any inventory contract will be excluded from the total open sales order balance calculation.

Highlight the SCS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel click the Add option to add a new line.
Complete the following fields:

Item: Enter the item for the inventory contract line.

Contract quantity

1. Enter the contract quantity	2. Leave the field blank
When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	When you leave this field blank it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

1. Enter the contract quantity

2. Leave the field blank

When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

When you leave this field blank it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Contract unit: This is the unit for the contract which can be manually entered here or automatically retrieved after clicking OK. The unit must be valid both as sales and purchase unit for the item. All sales and purchase orders will be created in contract unit. The conversion factor for the unit needs to result in even stock units. All quantities on the contract line will be stored both in stock units and in contracts units. If contract unit is not entered, then the stock unit will be retrieved as the contract unit. Once orders have been created for the inventory contract line it will no longer be possible to change the contract unit.

Cost price: Enter the cost price for the item. Cost price is defined for the cost unit of the item. This field is mandatory due to the fact that when you sell goods for this type of contract, you do not own the goods. There is no cost price for the item anywhere in the system. But when you sell the goods, there needs to be a way to find the cost of sales. Hence, this field is a mandatory entry.

The following fields are optional and dictate the validity period for the contract line:

Start date
End date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract line, your choices include:

Enter only a start date denoting from when the inventory contract line will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract line will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date for the inventory contract line.

See Duration of the inventory contracts above for more information.

The following fields are automatically set:

Auto-assign: This flag is set to YES by default. When the inventory contract line is selected during the auto-sourcing routine at sales order entry, it is this flag that determines whether or not the sales order line is to be automatically linked to the contract line or if the order handler is to be informed about the existence of the contract line in an information message. Keep this flag set to YES or change it to NO depending on your requirements. See Auto-assign setting on inventory contract lines above for more information.

Warehouse: The warehouse defined on the contract header is defaulted. It is possible to enter another warehouse than the defaulted one.

Click the Next button if you want to define sales price and/or purchase price information for the inventory contract line. (Tip: Other than the benefit of only paying for the goods once you have sold them, you may want some other kind of incentive to enter into this kind of business deal. To recoup the cost that you would bear to store this externally owned stock at your warehouse site, and assuming this is agreed upon by you and the supplier, click the Next button and define a purchase price that is lower than the normal purchase price). Otherwise, click OK to update the contract line. The log file for this line will be updated with the post “Contract line was created” along with the date and time it was created. Repeat the instructions from step 5 for all lines you want to add.

You must now activate the contract and then run the Supply CMI process on inventory contract line level, for every contract line, to initialize the contract line and thereby get it into your physical warehouse. The quantity will then be available for sale and/or for running other contract processes. See Activate and initialize the Supplier Consignment Stock (SCS) at wholesaler inventory contract below for instructions.

When running the Supply CMI process, a logistic purchase order will be created. This purchase order is only needed for the possibility to print a reception note and then receive the line. The lines on the purchase order will be set to FOC even though a purchase price must exist for the item. The purchase order will never be used in supplier invoice matching NOR will it affect cost accounting. It is important that there is an exact match of the following for the item on the inventory contract and the item/purchase price record in the Item file: Purchase price, Purchase currency, Purchase unit. These can be set up in the Item file or on the inventory contract. If they are not an exact match, you will be flagged during reception that the purchase price does not exist. Even though the line on an SCS-contract will always be set to FOC, a purchase price must exist.

Setup – Inventory contract for Supplier Consignment Stock (SCS) at wholesaler – Logistic handling only

With this type of inventory contract, the goods are owned by the supplier but located at your (the wholesaler) warehouse site. You are only responsible for the storage, dispatch and shipment of the goods.

Select the Work with inventory contracts menu item.
Click the Add option.
Define the following header information.

The following information is mandatory:

Inventory contract: If an extended number series was set up for inventory contracts in the DIS control file, you can either leave this field blank to let the system automatically assign the number, or manually enter the identity of the inventory contract.

Description: Enter the description of the inventory contract.

Contract type: Enter or select the SCS (Supplier Consignment Stock) panel value.

Supplier: Enter the supplier for the inventory contract.

Currency: The currency for the supplier on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the purchase price currency for inventory contract lines and when purchase orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Handler: Enter the ID of the handler for the inventory contract. This is normally the person that entered the inventory contract into the system.

Responsible: Enter the ID of the person responsible for the inventory contract. This could be different from the handler.

Cost centre: Enter the cost centre to which the inventory contract belongs. When a sales (i.e. customer delivery) or purchase order is created from the inventory contract, the order will inherit the cost centre from the inventory contract.

Warehouse: Enter the logistic SCS-warehouse identity that is set up in DC1 for this type of inventory contract.

Off-contract sales: Off-contract sales are not allowed for a Logistic SCS contract. Cannot be set to YES.

Logistic: Set this flag to YES.

The following fields are optional:

Start-end date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract, your choices include:

Enter only a start date denoting from when the inventory contract will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date.

See Duration of the inventory contracts above for more information.

Customer
Contract key

The following field is also optional:

Customer currency: It is possible to enter a customer currency without entering a customer. However, if you want to define sales prices on the Logistic SCS-contract lines you have to enter a customer currency.

If a customer was not defined on the contract header and you want to define exceptions for customers separately, for the following, select the Customer settings option and define the applicable setting per applicable customer:

Setting	Retrieval during sales order entry
Backlog	The system retrieves the backlog flag in the following sequence: When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel: The system first checks this Customer settings file. If the flag is set to YES or NO, it will be used for the order header. If the flag on customer settings level is not set to YES, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If that flag is set to YES or NO, it will be used for the order header. If the backlog flag on the contract header is blank, the flag from the sales order type is used. If no inventory contract is manually entered/linked during sales order creation, the backlog flag from the sales order type is used.

Setting

Retrieval during sales order entry

Backlog

The system retrieves the backlog flag in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If the flag is set to YES or NO, it will be used for the order header.
If the flag on customer settings level is not set to YES, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If that flag is set to YES or NO, it will be used for the order header.
If the backlog flag on the contract header is blank, the flag from the sales order type is used.

If no inventory contract is manually entered/linked during sales order creation, the backlog flag from the sales order type is used.

Highlight the Logistic SCS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel click the Add option to add a new line.
Complete the following fields:

Item: Enter the item for the inventory contract line.

Contract quantity

1. Enter the contract quantity	2. Leave the field blank
When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	When you leave this field blank it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

1. Enter the contract quantity

2. Leave the field blank

When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

When you leave this field blank it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Contract unit: This is the unit for the contract which can be manually entered here or automatically retrieved after clicking OK. The unit must be valid both as sales and purchase unit for the item. All sales and purchase orders will be created in contract unit. The conversion factor for the unit needs to result in even stock units. All quantities on the contract line will be stored both in stock units and in contracts units. If contract unit is not entered, then the stock unit will be retrieved as the contract unit. Once orders have been created for the inventory contract line it will no longer be possible to change the contract unit.

Cost price: Enter the cost price for the item. Cost price is defined for the cost unit of the item. This field is mandatory due to the fact that when you “sell” goods via a customer delivery order for this type of contract, you do not own the goods. There is no cost price for the item anywhere in the system. But when you “sell” the goods, there needs to be a way to find the cost of sales. Hence, this field is a mandatory entry.

The following fields are optional and dictate the validity period for the contract line:

Start date
End date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract line, your choices include:

Enter only a start date denoting from when the inventory contract line will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract line will expire. From this date the inventory contract cannot be used on any new customer delivery orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date for the inventory contract line.

See Duration of the inventory contracts above for more information.

The following fields are automatically set:

Auto-assign: This flag is set to YES by default. When the inventory contract line is selected during the auto-sourcing routine at sales order entry, it is this flag that determines whether or not the sales order line is to be automatically linked to the contract line or if the order handler is to be informed about the existence of the contract line in an information message. Keep this flag set to YES or change it to NO depending on your requirements. See Auto-assign setting on inventory contract lines above for more information.

Warehouse: The warehouse defined on the contract header is defaulted. It is possible to enter another warehouse than the defaulted one.

Click the Next button if you want to define sales price and/or purchase price information for the inventory contract line. Otherwise, click OK to update the contract line. The log file for this line will be updated with the post “Contract line was created” along with the date and time it was created. Repeat the instructions from step 5 for all lines you want to add.

You must now activate the contract and then either run the Supply CMI process on inventory contract line level, for every contract line, or link the inventory contract to a manually created purchase order to initialize the contract line and thereby get it into your physical warehouse. The quantity will then be available for “sale”. See Activate and initialize the Supplier Consignment Stock (SCS) at wholesaler inventory contract – Logistic handling only below for instructions.

When running the Supply CMI process, or linking the contract to manually created purchase order, a logistic purchase order will be created. This purchase order is only needed for the possibility to print a reception note and then receive the line. The lines on the purchase order will be set to FOC even though a purchase price must exist for the item. The purchase order will never be used in supplier invoice matching NOR will it affect cost accounting. It is important that there is an exact match of the following for the item on the inventory contract and the item/purchase price record in the Item file: Purchase price, Purchase currency, Purchase unit. These can be set up in the Item file or on the inventory contract. If they are not an exact match, you will be flagged during reception that the purchase price does not exist. Even though the line on a Logistic SCS-contract will always be set to FOC, a purchase price must exist.

Setup – Inventory contract for Wholesaler Consignment Stock (WCS) at customer

With this type of inventory contract, the goods are owned by you (the wholesaler) but physically located (externally) at your customer’s warehouse site. You have two choices when supplying the goods to your customer’s warehouse:

External supply – the goods that you want to physically store at your customer’s site need to first be bought from your supplier (by you) and then shipped to the customer by the supplier.
Internal supply – supply the goods internally via an IRO (i.e. move goods from one of your internally owned warehouses set up in your system (either a normal or a trade warehouse) to supply your WCS-warehouse (set up in your system).

Select the Work with inventory contracts menu item.
Click the Add option.
Define the following header information.

The following information is mandatory:

Inventory contract: If an extended number series was set up for inventory contracts in the DIS control file, you can either leave this field blank to let the system automatically assign the number, or manually enter the identity of the inventory contract.

Description: Enter the description of the inventory contract.

Contract type: Enter or select the WCS (Wholesaler Consignment Stock) panel value.

Customer: Enter the customer for the inventory contract.

Currency: The currency for the customer on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the sales price currency for inventory contract lines and when sales orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Handler: Enter the ID of the handler for the inventory contract. This is normally the person that entered the inventory contract into the system.

Responsible: Enter the ID of the person responsible for the inventory contract. This could be different from the handler.

Cost centre: Enter the cost centre to which the inventory contract belongs. When a sales or purchase order is created from the inventory contract, the order will inherit the cost centre from the inventory contract.

Warehouse: Enter the WCS-warehouse identity that is set up in DC1 for this type of inventory contract.

Valid for SMS: This field is only displayed if the DC1 Supplier Marketing Support application is active. Indicate if sales order lines that are linked to this inventory contract are to be valid for SMS rebates.

Off-contract sales

The following fields are optional:

Supplier: If you plan on sourcing the goods by purchasing the goods (i.e. by running the External supply CMI process to initialize a contract line), enter the external supplier. If you plan on sourcing the goods via an IRO (i.e. by running the Internal supply CMI process to initialize a contract line), enter the internal supplier.

Currency: The currency for the supplier on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the purchase price currency for inventory contract lines and when purchase orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Start-end date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract, your choices include:

Enter only a start date denoting from when the inventory contract will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date.

See Duration of the inventory contracts above for more information.

Click the Next button if you want to define sales order related and/or purchase order default values for the inventory contract. Otherwise, click OK to update the contract header. The log file for this contract will be updated with the post “Contract was created” along with the date and time it was created, and the user ID who created the contract.

Highlight the WCS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel click the Add option to add a new line.
Complete the following fields:

Item: Enter the item for the inventory contract line.

Contract quantity

1. Enter the contract quantity	2. Leave the field blank
When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	When you leave this field blank it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

1. Enter the contract quantity

2. Leave the field blank

When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

When you leave this field blank it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Contract unit: This is the unit for the contract which can be manually entered here or automatically retrieved after clicking OK. The unit must be valid both as sales and purchase unit for the item. All sales and purchase orders will be created in contract unit. The conversion factor for the unit needs to result in even stock units. All quantities on the contract line will be stored both in stock units and in contracts units. If contract unit is not entered, then the stock unit will be retrieved as the contract unit. Once orders have been created for the inventory contract line it will no longer be possible to change the contract unit.

The following fields are optional and dictate the validity period for the contract line:

Start date
End date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract line, your choices include:

Enter only a start date denoting from when the inventory contract line will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract line will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date for the inventory contract line.

See Duration of the inventory contracts above for more information.

The following fields are automatically set:

Auto-assign: This flag is set to YES by default. When the inventory contract line is selected during the auto-sourcing routine at sales order entry, it is this flag that determines whether or not the sales order line is to be automatically linked to the contract line or if the order handler is to be informed about the existence of the contract line in an information message. Keep this flag set to YES or change it to NO depending on your requirements. See Auto-assign setting on inventory contract lines above for more information.

Warehouse: The warehouse defined on the contract header is defaulted. It is possible to enter another warehouse than the defaulted one.

You must now activate the inventory contract and then run either the External supply or the Internal supply CMI process on inventory contract line level, for every contract line, to initialize the contract line and thereby get the goods into your logical WCS-warehouse that is set up in your system. The quantity will then be available for sale and/or for running other contract processes. See Activate and initialize the Wholesaler Consignment Stock (WCS) at customer inventory contract below for instructions.

Setup – Inventory contract for Wholesaler Deposit Stock (WDS) at supplier

With this type of inventory contract, the goods are owned by you (the wholesaler) but physically stored externally at your supplier’s warehouse site.

Select the Work with inventory contracts menu item.
Click the Add option.
Define the following header information.

The following information is mandatory:

Inventory contract: If an extended number series was set up for inventory contracts in the DIS control file, you can either leave this field blank to let the system automatically assign the number, or manually enter the identity of the inventory contract.

Description: Enter the description of the inventory contract.

Contract type: Enter or select the WDS (Wholesaler Deposit Stock) panel value.

Supplier: Enter the supplier for the inventory contract.

Currency: The currency for the supplier on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the purchase price currency for inventory contract lines and when purchase orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Handler: Enter the ID of the handler for the inventory contract. This is normally the person that entered the inventory contract into the system.

Responsible: Enter the ID of the person responsible for the inventory contract. This could be different from the handler.

Cost centre: Enter the cost centre to which the inventory contract belongs. When a sales or purchase order is created from the inventory contract, the order will inherit the cost centre from the inventory contract.

Warehouse: Enter the WDS-warehouse identity that is set up in DC1 for this type of inventory contract.

Valid for SMS: This field is only displayed if the DC1 Supplier Marketing Support application is active. Indicate if sales order lines that are linked to this inventory contract are to be valid for SMS rebates.

Off-contract sales

The following fields are optional:

Start-end date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract, your choices include:

Enter only a start date denoting from when the inventory contract will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date.

See Duration of the inventory contracts above for more information.

Customer
Contract key

The following field is also optional:

Customer currency: It is possible to enter a customer currency without entering a customer. However, if you want to define sales prices on the WDS-contract lines you have to enter a customer currency.

Setting

Retrieval during sales order entry

Backlog

The system retrieves the backlog flag in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If the flag is set to YES or NO, it will be used for the order header.
If the flag on customer settings level is not set to YES, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If that flag is set to YES or NO, it will be used for the order header.
If the backlog flag on the contract header is blank, the flag from the sales order type is used.

If no inventory contract is manually entered/linked during sales order creation, the backlog flag from the sales order type is used.

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The system retrieves the terms of payment in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If a terms of payment is entered, it will be used for the order header. If a debtor exists, the settings are checked for the debtor.
If a terms of payment on customer settings level is not defined, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If a terms of payment is defined on that level, it will be used for the order header.
If the terms of payment on the contract header is blank, the setting from the Business partner file (for debtor if one exists) or the sales order type is used.

If no inventory contract is manually entered/linked during sales order creation, the terms of payment from the Business partner file or the sales order type is used.

Credit profile

This setting impacts the credit limit retrieval as well as the total open sales order balance calculation for the customer.

For credit limit retrieval:
The system retrieves the credit profile in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If a credit profile is entered, it will be used for credit limit retrieval.
If a credit profile on customer settings level is not defined, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If a credit profile is defined on that level, it will be used for credit limit retrieval.
If the credit profile on the contract header is blank, the setting from the Business partner file is used for credit limit retrieval.

If no inventory contract is manually entered/linked during sales order creation, the credit profile from the Business partner file is used for credit limit retrieval.

For total open sales order balance calculation:
It works as follows:

all orders with status less than 60 for this customer and assigned to the same contract
and
all invoiced orders for this customer and assigned to the same contract which are waiting in transaction files (not transferred to Financial application)

as follows:

+ Open orders for inventory contract
+ Invoiced not transferred for inventory contract
= Total balance

Highlight the WDS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel click the Add option to add a new line.
Complete the following fields:

Item: Enter the item for the inventory contract line.

Contract quantity

1. Enter the contract quantity	2. Leave the field blank
When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	When you leave this field blank it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

1. Enter the contract quantity

2. Leave the field blank

When you enter a contract quantity it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

When you leave this field blank it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Contract unit: This is the unit for the contract which can be manually entered here or automatically retrieved after clicking OK. The unit must be valid both as sales and purchase unit for the item. All sales and purchase orders will be created in contract unit. The conversion factor for the unit needs to result in even stock units. All quantities on the contract line will be stored both in stock units and in contracts units. If contract unit is not entered, then the stock unit will be retrieved as the contract unit. Once orders have been created for the inventory contract line it will no longer be possible to change the contract unit.

The following fields are optional and dictate the validity period for the contract line:

Start date
End date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract line, your choices include:

Enter only a start date denoting from when the inventory contract line will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract line will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date for the inventory contract line.

See Duration of the inventory contracts above for more information.

The following fields are automatically set:

Auto-assign: This flag is set to YES by default. When the inventory contract line is selected during the auto-sourcing routine at sales order entry, it is this flag that determines whether or not the sales order line is to be automatically linked to the contract line or if the order handler is to be informed about the existence of the contract line in an information message. Keep this flag set to YES or change it to NO depending on your requirements. See Auto-assign setting on inventory contract lines above for more information.

Warehouse: The warehouse defined on the contract header is defaulted. It is possible to enter another warehouse than the defaulted one.

You must now activate the inventory contract and then run the Supply CMI process on inventory contract line level, for every contract line, to initialize the contract line and thereby get the goods into your logical WDS-warehouse that is set up in your system. When this is done the quantity will be available for sales and/or the running of other contract processes. See Activate and initialize the Wholesaler Deposit Stock (WDS) at supplier inventory contract below for instructions.

Setup – Inventory contract for Customer Buffer Stock (CBS) at wholesaler

Goods are owned by you (the wholesaler) and located at your warehouse site. They will be placed in either a normal warehouse or in a logical trade warehouse that is linked to a physical warehouse. The purpose of a CBS inventory contract is to promise a specific customer that you will reserve a certain buffer for a specific item.

From a financial standpoint, you (the wholesaler) should gain something, somewhere in order to accept this kind of business deal. The following possibility is an example of how you could recoup the cost that you would bear to enter into such an agreement. It is up to you and the customer to agree about the solution.

Define a sales price on the inventory contract line that is higher than the normal sales price.

There are no CMI processes for this type of inventory contract since the goods that you are selling for such a contract are always internally owned. You must, however, set up an inventory contract. The inventory contract will be linked to the applicable sales order line in sales order entry.

The contract line will be initialized (i.e. updated with a reception date and the quantity available for sale) when the contract is activated or when a new line is added for an active contract. See Activate and initialize the Customer Buffer Stock (CBS) at wholesaler inventory contract below for instructions. As soon as the line is initialized, a corresponding temporary reservation will be created. This reservation is created with type 60 and is linked to the specific customer and to the contract line. The available quantity on the sales order line will always be equal to the remaining reserved quantity on the temporary reservation. The temporary reservation will not be possible to change or delete. If it shall be deleted, this must be done by changing or deleting the corresponding contract line.

As soon as an end user creates a sales order line for this customer with an item that is defined on an inventory contract, the sales order line will automatically be linked to the inventory contract line. Then the inventory contract line will be updated together with the corresponding temporary reservation.

When checking the warehouse balance for an item that is active on a CBS inventory contract, it will appear that the reserved quantity is not available for sale. This is true for all customers except for the customer that is defined on the inventory contract.

Select the Work with inventory contracts menu item.
Click the Add option.
Define the following header information.

The following information is mandatory:

Inventory contract: If an extended number series was set up for inventory contracts in the DIS control file, you can either leave this field blank to let the system automatically assign the number, or manually enter the identity of the inventory contract.

Description: Enter the description of the inventory contract.

Contract type: Enter or select the CBS (Customer buffer stock) panel value.

Customer: Enter the customer for the inventory contract for whom you want to reserve stock.

Currency: The currency for the customer on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the sales price currency for inventory contract lines and when sales orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Handler: Enter the ID of the handler for the inventory contract. This is normally the person that entered the inventory contract into the system.

Responsible: Enter the ID of the person responsible for the inventory contract. This could be different from the handler.

Warehouse: Enter the CBS-warehouse identity that is set up in DC1 for this type of inventory contract.

Valid for SMS: This field is only displayed if the DC1 Supplier Marketing Support application is active. Indicate if sales order lines that are linked to this inventory contract are to be valid for SMS rebates.

Off-contract sales

The following fields are optional:

Start-end date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract, your choices include:

Enter only a start date denoting from when the inventory contract will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date.

See Duration of the inventory contracts above for more information.

Highlight the CBS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel click the Add option to add a new line.
Complete the following fields:

Item: Enter the item for the inventory contract line.

Contract quantity: Enter the quantity for the contract.

Contract unit: This is the unit for the contract which can be manually entered here or automatically retrieved after clicking OK. The unit must be valid both as sales and purchase unit for the item. All sales and purchase orders will be created in contract unit. The conversion factor for the unit needs to result in even stock units. All quantities on the contract line will be stored both in stock units and in contracts units. If contract unit is not entered, then the stock unit will be retrieved as the contract unit. Once orders have been created for the inventory contract line it will no longer be possible to change the contract unit.

The following fields are optional and dictate the validity period for the contract line:

Start date
End date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract line, your choices include:

Enter only a start date denoting from when the inventory contract line will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract line will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date for the inventory contract line.

See Duration of the inventory contracts above for more information.

The following fields are automatically set:

Auto-assign: This flag is set to YES by default. When the inventory contract line is selected during the auto-sourcing routine at sales order entry, it is this flag that determines whether or not the sales order line is to be automatically linked to the contract line or if the order handler is to be informed about the existence of the contract line in an information message. Keep this flag set to YES or change it to NO depending on your requirements. See Auto-assign setting on inventory contract lines above for more information.

Warehouse: The warehouse defined on the contract header is defaulted. It is possible to enter another warehouse than the defaulted one.

You must now activate the inventory contract to initialize the contract. See Activate and initialize the Customer Deposit Stock (CBS) at wholesaler inventory contract below for instructions. When this has been done the quantity will be available for sale.

Setup – Inventory contract for Wholesaler Buffer Stock (WBS) at supplier

Goods are owned by the supplier and located at the supplier’s warehouse site. The purpose of the contract is that the supplier promises the wholesaler to keep a certain quantity as a buffer, allowing the wholesaler to be sure that the promised buffer always will be available.

An inventory contract line will be initialized (i.e. updated with a reception date and the quantity available for sale and/or other contract processes) when the inventory contract is activated or when a new inventory contract line is added for an active inventory contract. See Activate and initialize the Wholesaler Buffer Stock (WBS) at supplier inventory contract below for instructions.

Select the Work with inventory contracts menu item.
Click the Add option.
Define the following header information.

The following information is mandatory:

Inventory contract: If an extended number series was set up for inventory contracts in the DIS control file, you can either leave this field blank to let the system automatically assign the number, or manually enter the identity of the inventory contract.

Description: Enter the description of the inventory contract.

Contract type: Enter or select the WBS (Wholesaler buffer stock) panel value.

Supplier: Enter the supplier for the inventory contract.

Currency: The currency for the supplier on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the purchase price currency for inventory contract lines and when purchase orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Handler: Enter the ID of the handler for the inventory contract. This is normally the person that entered the inventory contract into the system.

Responsible: Enter the ID of the person responsible for the inventory contract. This could be different from the handler.

Warehouse: Enter the logical WBS-warehouse identity that is set up in DC1 for this type of inventory contract.

Valid for SMS: This field is only displayed if the DC1 Supplier Marketing Support application is active. Indicate if sales order lines that are linked to this inventory contract are to be valid for SMS rebates.

Off-contract sales

The following fields are optional:

Start-end date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract, your choices include:

Enter only a start date denoting from when the inventory contract will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date.

See Duration of the inventory contracts above for more information.

Customer
Contract key

The following field is also optional:

Customer currency: It is possible to enter a customer currency without entering a customer. However, if you want to define sales prices on the WBS-contract lines you have to enter a customer currency.

Setting

Retrieval during sales order entry

Backlog

The system retrieves the backlog flag in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If the flag is set to YES or NO, it will be used for the order header.
If the flag on customer settings level is not set to YES, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If that flag is set to YES or NO, it will be used for the order header.
If the backlog flag on the contract header is blank, the flag from the sales order type is used.

If no inventory contract is manually entered/linked during sales order creation, the backlog flag from the sales order type is used.

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The system retrieves the terms of payment in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If a terms of payment is entered, it will be used for the order header. If a debtor exists, the settings are checked for the debtor.
If a terms of payment on customer settings level is not defined, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If a terms of payment is defined on that level, it will be used for the order header.
If the terms of payment on the contract header is blank, the setting from the Business partner file (for debtor if one exists) or the sales order type is used.

If no inventory contract is manually entered/linked during sales order creation, the terms of payment from the Business partner file or the sales order type is used.

Credit profile

This setting impacts the credit limit retrieval as well as the total open sales order balance calculation for the customer.

For credit limit retrieval:
The system retrieves the credit profile in the following sequence:

When an inventory contract is manually entered/linked on the Work with sales orders, Create new panel:

The system first checks this Customer settings file. If a credit profile is entered, it will be used for credit limit retrieval.
If a credit profile on customer settings level is not defined, the system checks for any default that is set on the contract header (i.e. the Work with inventory contracts, Sales and purchase information panel). If a credit profile is defined on that level, it will be used for credit limit retrieval.
If the credit profile on the contract header is blank, the setting from the Business partner file is used for credit limit retrieval.

If no inventory contract is manually entered/linked during sales order creation, the credit profile from the Business partner file is used for credit limit retrieval.

For total open sales order balance calculation:
It works as follows:

all orders with status less than 60 for this customer and assigned to the same contract
and
all invoiced orders for this customer and assigned to the same contract which are waiting in transaction files (not transferred to Financial application)

as follows:

+ Open orders for inventory contract
+ Invoiced not transferred for inventory contract
= Total balance

Highlight the WBS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel click the Add option to add a new line.
Complete the following fields:

Item: Enter the item for the inventory contract line.

Contract quantity: Enter the quantity for the contract.

Contract unit: This is the unit for the contract which can be manually entered here or automatically retrieved after clicking OK. The unit must be valid both as sales and purchase unit for the item. All sales and purchase orders will be created in contract unit. The conversion factor for the unit needs to result in even stock units. All quantities on the contract line will be stored both in stock units and in contracts units. If contract unit is not entered, then the stock unit will be retrieved as the contract unit. Once orders have been created for the inventory contract line it will no longer be possible to change the contract unit.

Cost price: Note: This field is only mandatory if you plan on running the Transfer to consignment CMI process to transfer the supplier-owned goods that are physically located (externally) to your logical SCS-warehouse set up in your system. This type of CMI process requires that a Supplier Consignment Stock (SCS) inventory contract is set up for the same supplier as on the WBS inventory contract. Cost price is always mandatory for an SCS inventory contract, but when running this Transfer to consignment CMI process for a WBS-contract line, the cost price must also be entered on the line that is to be transferred. It will only be used at transfer to consignment.

The following fields are optional and dictate the validity period for the contract line:

Start date
End date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract line, your choices include:

Enter only a start date denoting from when the inventory contract line will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract line will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date for the inventory contract line.

See Duration of the inventory contracts above for more information.

The following fields are automatically set:

Auto-assign: This flag is set to YES by default. When the inventory contract line is selected during the auto-sourcing routine at sales order entry, it is this flag that determines whether or not the sales order line is to be automatically linked to the contract line or if the order handler is to be informed about the existence of the contract line in an information message. Keep this flag set to YES or change it to NO depending on your requirements. See Auto-assign setting on inventory contract lines above for more information.

Warehouse: The warehouse defined on the contract header is defaulted. It is possible to enter another warehouse than the defaulted one.

You must now activate the inventory contract to initialize all contract lines. When this has been done the quantity will be available for sale.

Setup – Inventory contract for Deferred Indent Stock (DIS) at customer

Goods are owned by the supplier but physically located (externally) at the customer’s warehouse site.

You are only involved in the financial transactions. This means that you will be the one that:

sends the invoice to the customer
informs the supplier about the customer’s consumption
receives the supplier invoice

You do not have to be involved in any purchasing or logistics. You sell the goods at the sales price to the customer and then inform the supplier when the customer has consumed the goods.

From a financial standpoint, you should gain something, somewhere in order to accept this kind of business deal. As long as the invoice to the customer holds a higher price than what you get on the supplier invoice, you will make a profit. Somehow it has to be assured that this profit is high enough for you to take on the administrative work around creating the invoices.

The warehouse on the inventory contract line has to be a normal warehouse or a trade warehouse. But no stock on hand will ever be updated for a DIS-contract line; it is only important to select the correct warehouse with cost center in mind. The inventory contract line will be initialized (i.e. updated with a reception date and the contracted quantity available for sale or other contract processes) when the inventory contract is activated or when a new inventory contract line is added for an active inventory contract. See Activate and initialize the Deferred Indent Stock (DIS) at customer inventory contract below for instructions.

Select the Work with inventory contracts menu item.
Click the Add option.
Define the following header information.

The following information is mandatory:

Inventory contract: If an extended number series was set up for inventory contracts in the DIS control file, you can either leave this field blank to let the system automatically assign the number, or manually enter the identity of the inventory contract.

Description: Enter the description of the inventory contract.

Contract type: Enter or select the DIS (Deferred indent stock) panel value.

Customer: Enter the customer for the inventory contract.

Currency: The currency for the customer on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the sales price currency for inventory contract lines and when sales orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Supplier: Enter the supplier for the inventory contract.

Currency: The currency for the supplier on this inventory contract is retrieved. Leave as is, or change to another. The currency will be used as the purchase price currency for inventory contract lines and when purchase orders are created from the contract. It will not be possible to change the currency for the inventory contract if inventory contract lines have been created.

Handler: Enter the ID of the handler for the inventory contract. This is normally the person that entered the inventory contract into the system.

Responsible: Enter the ID of the person responsible for the inventory contract. This could be different from the handler.

Warehouse: Enter the normal or trade warehouse identity that is set up in DC1 for this type of inventory contract.

Valid for SMS: This field is only displayed if the DC1 Supplier Marketing Support application is active. Indicate if sales order lines that are linked to this inventory contract are to be valid for SMS rebates.

Off-contract sales

The following fields are optional:

Start-end date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract, your choices include:

Enter only a start date denoting from when the inventory contract will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date.

See Duration of the inventory contracts above for more information.

Highlight the DIS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel click the Add option to add a new line.
Complete the following fields:

Item: Enter the item for the inventory contract line.

Contract quantity: Enter the quantity for the contract.

Contract unit: This is the unit for the contract which can be manually entered here or automatically retrieved after clicking OK. The unit must be valid both as sales and purchase unit for the item. All sales and purchase orders will be created in contract unit. The conversion factor for the unit needs to result in even stock units. All quantities on the contract line will be stored both in stock units and in contracts units. If contract unit is not entered, then the stock unit will be retrieved as the contract unit. Once orders have been created for the inventory contract line it will no longer be possible to change the contract unit.

Cost price: Enter the cost price for the item. Cost price is defined for the cost unit of the item. This field is mandatory due to the fact that when you sell goods for this type of contract, you do not own the goods. There is no cost price for the item anywhere in the system. But when you sell the goods, there needs to be a way to find the cost of sales. Hence, this field is a mandatory entry.

The following fields are optional and dictate the validity period for the contract line:

Start date
End date

If you want to have a running agreement, leave both fields blank. If you want to define a time frame for the inventory contract line, your choices include:

Enter only a start date denoting from when the inventory contract line will be valid. You can define a start date in the future, thus making it easier to maintain inventory contracts by preparing them in advance.
Enter only an end date denoting the date when the contract line will expire. From this date the inventory contract cannot be used on any new sales orders. It means that if the order date is higher than the end date, the contract will not be seen as valid. Already created orders will, however, be possible to process through the system to the final status.
Enter both the start date and end date for the inventory contract line.

See Duration of the inventory contracts above for more information.

The following fields are automatically set:

Auto-assign: This flag is set to YES by default. When the inventory contract line is selected during the auto-sourcing routine at sales order entry, it is this flag that determines whether or not the sales order line is to be automatically linked to the contract line or if the order handler is to be informed about the existence of the contract line in an information message. Keep this flag set to YES or change it to NO depending on your requirements. See Auto-assign setting on inventory contract lines above for more information.

Warehouse: The warehouse defined on the contract header is defaulted. It is possible to enter another warehouse than the defaulted one.

You must now activate the inventory contract to initialize all contract lines. When this has been done the quantity will be available for sale.

About activating the inventory contracts and initializing the lines

Some CMI processes initialize the contract line for an activated inventory contract (i.e. make the Contract quantity on the contract line available for use), while others are used for specific tasks (e.g., purchase, selling, ownership transfer, in-house transfer). Every contract line you create for an inventory contract must be initialized in some way for the contracted quantity to become available for use.

The way you initialize a contract line differs depending on the type of inventory contract. This is described per inventory contract type.

For the following inventory contract type you must activate the Inventory contract and then run a specific CMI process on Inventory contract line level to initialize a contract line:

Customer Deposit Stock (CDS) at wholesaler

For the following inventory contract types you must activate the Inventory contract and then either run a specific CMI process on Inventory contract line level, or manually create a purchase order and link the inventory contract to the purchase order to initialize a contract line:

Supplier Consignment Stock (SCS) at wholesaler
Supplier Consignment Stock (SCS) at wholesaler – Logistic handling only
Wholesaler Consignment Stock (WCS) at customer
Wholesaler Deposit Stock (WDS) at supplier

For the following inventory contract types you do not run a specific CMI process on Inventory contract line level to initialize a contract line. This is because the goods for these inventory contract types are 1) already in the correct warehouse (when it concerns the Customer Buffer Stock and Wholesaler Buffer Stock inventory contract types), and 2) you are not involved in shipping the goods (when it concerns the Deferred Indent Stock inventory contract type). Instead, the contract line will be initialized (i.e. updated with a reception date and available for sale or other contract type processes) when the inventory contract is activated or when a new line is added for an active contract.

Customer Buffer Stock (CBS) at wholesaler
Wholesaler Buffer Stock (WBS) at supplier
Deferred Indent Stock (DIS) at customer

Click the applicable link below to expand and view the procedures.

Activate and initialize the Customer Deposit Stock (CDS) inventory contract

You must activate the inventory contract and then run the Supply deposit CMI process on Inventory contract line level to move the goods from the logical (Trade) warehouse to the logical CDS-warehouse to initialize a contract line.

Multiple receptions and contract quantity

The number of times a quantity can be received for the line, as well as if any quantity can be increased, is determined by a function in the Function control file.

Contract quantity	No contract quantity
If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	If no contract quantity was defined for the line, it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated, only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

Contract quantity

No contract quantity

If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

If no contract quantity was defined for the line, it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated, only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Activate the inventory contract

Select the Work with inventory contracts menu item.
Highlight the CDS-contract and either click the Activate option, or click the Change option to access the contract header and tick the Active box. The inventory contract is now activated. The following post has been created in the Log file (accessed by highlighting the inventory contract and clicking the Log file option) for the inventory contract: Contract was activated.

Run the Supply deposit CMI process to initialize the inventory contract line

Running this process will create a sales order that is used for financial purposes, since the customer is buying the goods from you (the wholesaler). Even though the goods are to remain physically in your warehouse, they have to be moved from the logical (Trade) warehouse (set up in your system) to a logical CDS-warehouse (set up in your system) that is linked to the same Physical warehouse.

This type of sales order will not run through the normal picking routines. Instead you must run the Confirm ownership transfer routine. The sales order will be available for ownership transfer when pick list printout is run. No pick list will be printed, but the sales order lines will be set to status 30. Running the ownership transfer routine will, from one panel, take care of the pick from the trade warehouse and the put away to the CDS-warehouse. Depending on the location/owner set-up it may be alright to leave the goods in the same warehouse location, or it may be required to move the goods to another location. As soon as the ownership has been transferred to the CDS-warehouse, the inventory contract line will be considered initialized and updated with a reception date. The quantity will then be available for sale.

Select the Work with inventory contracts menu item.
Highlight the CDS-contract and click the Lines option to drill down to the contract line level.
On the Work with inventory contracts, Lines panel, select the applicable line and click the Supply deposit option.
You access the Work with inventory contracts, Create supply (deposit) order panel. Enter the logical (Trade) warehouse from where the goods will be moved. If a contract quantity was defined on the line, keep the quantity or reduce it to that applicable. If a contract quantity was not defined on the line, enter that applicable. (Note: If the CMI-MULT function is not activated in the Function control file a contract line can only be initialized once. If you reduce the quantity it will not be possible to initialize the remaining quantity for the same line. It is suggested that the contract quantity for the line is reduced to the same quantity that is created for the order, and that a new contract line is created for the remaining quantity.) You can choose to maintain the sales order after creation by setting the Maintain order flag to YES. Click OK to create the sales order. The inventory contract is automatically linked to the order line. If anything on the sales order is erroneous, you will access Work with orders in error mode (Header or Line level) after you click OK, where you will have to correct the errors and then click OK to create the sales order.
You return to the Work with inventory contracts, Lines panel where the status of the inventory contract line has been updated to O (Order line created).

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following posts have been created:

– Order line created

– Contract line was opened

– For each of these posts, the following is also listed:

– The date it was created

– The time it was created

– Type of order (S for sales order)

– Sales order number

– Sales order type for the sales order that was set up for this CMI process and Inventory contract type. The order type dictates the remaining steps in this Supply deposit CMI process to initialize the inventory contract line. (Follow the remaining steps below).

Contract qty stock unit

On purchase order with the quantity on the sales order line for the logical CDS-warehouse.

For the Physical warehouse that is connected to the logical CDS-warehouse the following has been booked:

Available quantity has decreased and Reservation quantity has increased

For the Supplying warehouse (i.e. the logical (Trade) warehouse from which you are moving the goods), the following has been booked:

Available quantity has decreased and Reservation quantity has increased

For the Physical warehouse that is connected to the logical CDS-warehouse the following has been booked:

Available quantity has decreased and Reserved quantity has increased

For the Supplying warehouse (the logical (Trade) warehouse from which you are moving the goods) the following has been booked:

Available quantity has decreased and Reserved quantity has increased

Print the sales order confirmation document via the Order confirmation option on the Work with sales orders, Header view panel if the sales order type was defined to print this document. Otherwise go to the next step (Print the pick list).
Print the pick list, either via the Pick list option on the Work with sales orders, Header view panel or via the Print pick list menu item. No pick list will be printed but the status of the sales order will be set to 30 (i.e. the pick list has been printed for this line and is ready for pick list confirmation). The Reserved quantity for both the Supplying warehouse (the logical (Trade) warehouse) and the Physical warehouse that is connected to the CDS-warehouse has decreased by the quantity on the order. You must now transfer the ownership of the goods. See below.
Transfer the goods to the logical CDS-warehouse. You must now run the Confirm ownership transfer routine to transfer the goods from your logical (Trade) warehouse (set up in your system) to the logical CDS-warehouse (set up in your system).

Select the Confirm ownership transfer menu item.
You access the Ownership transfer confirmation, Supply deposit panel. The logical (Trade) warehouse from which you are moving the stock and the logical CDS-warehouse to which you are moving the stock is displayed. Enter the following:

Transferred quantity: Either click the Full transfer function key to put the Suggested quantity from the contract line into the Transferred quantity, OR manually enter the desired Transferred quantity.

If legal requirements stipulate that externally owned goods be stored separately from internally owned goods, (which is controlled by how you set up the system, i.e. the Location/ext owner field in the Work with warehouses file was set to YES, and no override was defined for the same field on item/warehouse level or business partner level), a physical transfer of the goods is needed when the change of ownership change occurs. If your CDS-warehouse was set up to separate the goods by owners (i.e. owner restriction), complete the following fields or click the Keep location function key.

From zone/location: You can manually complete these fields or highlight the line and click the Select from location option and then select the applicable From zone/location.

To zone/location

Accept the Suggested quantity or manually enter the Transferred quantity and click the Confirm function key.

Catch weight handling
If the order line was flagged for Catch weight handling, you will access the Work with pickings, Catch weights panel where you must enter the catch weight quantity for the order line. (See About catch weight handling for price units) The Quantity to add field displays the quantity that must be reported. Multiple catch weights can be entered for one order line, allowing you to have a separate weight for each individual item. All catch weights are then accumulated to be the price unit quantity for the order line and will also be used to re-calculate the order line value. As you report the quantity, the quantity in the Quantity to add decreases and the quantity in the Total actual qty and Total CW quantity fields increases. If a variance limit percentage range was set up for the item/sales unit that is under catch weight handling, and the entered catch weight quantity exceeds the variance range limit that is set up, you will access the Override allowed CW variance panel where you must enter your signature ID and the security code for the signature to accept the exceeding quantity and continue with catch weight entry. When the entire quantity has been reported, click the Confirm catch weight function key to confirm the entered catch weight quantity(ies). A validation will be performed to check that catch weight has been entered for the entire quantity.

The goods are now moved from the logical (Trade) warehouse to the logical CDS-warehouse.

The ownership has been transferred to the logical CDS-warehouse, the inventory contract is now initialized and the quantity is available for sale but you should print the invoice (see the next step).

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created:

Order line picked

For this post the following is also listed:

– The date it was created

– The time it was created

– Type of order (S for sales order)

– Sales order number

– Sales order type for the sales order that was set up for this CMI process and Inventory contract type.

On purchase order has decreased by the quantity that you moved.

On hand (for the logical CDS-warehouse) has been updated with the quantity received.

Available (for the logical CDS-warehouse) has been updated with the quantity received.

Disp not invoiced has been updated with the quantity that was sold but not yet invoiced.

Reception date has been set.

For the Physical warehouse that is connected to the logical CDS-warehouse the following has been booked:

Available quantity has increased.

For the logical CDS-warehouse, the following has been booked:

Available quantity has increased.

For the Physical warehouse that is connected to the logical CDS-warehouse the following has been booked:

Available quantity has increased and Reserved quantity has decreased.

For the logical CDS-warehouse, the following has been booked:

Available and On hand quantities have increased.

For the Supplying warehouse (from which you are moving the goods) the following has been booked:

On hand and Reserved quantities have decreased.

Print the invoice, either via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item. The log file post for the line will be updated with “Order line invoiced” and the Disp not invoiced field on the inventory contract line will be decreased.

When the goods are to be dispatched to the delivery address stated by the customer, which is done via the Customer call off CMI process or by manually creating the sales order and linking to the CDS inventory contract, the system will create a logistic sales order which will not result in the creation of any invoice; just the logistic documents pick list and transport note.

Activate and initialize the Supplier Consignment Stock (SCS) at wholesaler inventory contract

You must activate the inventory contract and then initialize each applicable contract line. You can initialize a contract line via one of the following alternatives:

Run the Supply CMI process on Inventory contract line level
Or
Manually create the purchase order via the Work with purchase orders routine and link the applicable SCS-contract on the Purchase order maintenance panel. All purchase order lines added to this purchase order will be used to update the inventory contract. If an item is added to the purchase order and this item does not exist on the inventory contract, then an inventory contract line for this item will be created. You can use the purchase order type that has been connected to the Supply CMI process in the Inventory contract type table for this type of inventory contract, or another that is valid when creating logistic purchase orders for this type of inventory contract.

Either way, a logistic purchase order will be created. This purchase order is only needed for the possibility to print a reception note and then receive the line. The lines on the purchase order will be set to FOC even though a purchase price must exist for the item. The purchase order will never be used in supplier invoice matching NOR will it affect cost accounting. You send the delivery instruction to the supplier and when you have physically received the goods from the supplier, you run a reception to receive the line(s), as well as the quality control check process if the item on the purchase order line is flagged for quality control, thereby updating stock on hand for the warehouse. During the reception of a logistic purchase order, no financial transactions will be created since the goods are still owned by the supplier.

It is important that there is an exact match of the following for the item on the inventory contract and the item/purchase price record in the Item file: Purchase price, Purchase currency, Purchase unit. These can be set up in the Item file or on the inventory contract. If they are not an exact match, you will be flagged during reception that the purchase price does not exist. Even though the line on an SCS-contract will always be set to FOC, a purchase price must exist.

When you have it in your warehouse you can start to sell from the quantity. Each of the sales order lines linked to an SCS-contract are used to define the call off notification.

Multiple receptions and contract quantity

The number of times a quantity can be received for the line, as well as if any quantity can be increased, is determined by a function in the Function control file.

Contract quantity	No contract quantity
If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	If no contract quantity was defined for the line, it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated, only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

Contract quantity

No contract quantity

If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

If no contract quantity was defined for the line, it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated, only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Activate the inventory contract

Select the Work with inventory contracts menu item.
Highlight the SCS-contract and either click the Activate option, or click the Change option to access the contract header and tick the Active box. The Inventory contract is now activated. The following post has been created in the Log file (accessed by highlighting the inventory contract and clicking the Log file option) for the inventory contract: Contract was activated.

Create the logistic purchase order to initialize the contract line

Via the Supply CMI process

Select the Work with inventory contracts menu item.
Highlight the SCS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel, select the applicable line and click the Supply option.
You access the Work with inventory contracts, Create supply order panel. If a contract quantity was defined on the line, keep the quantity or reduce it to that applicable. If a contract quantity was not defined on the line, enter that applicable. (Note: If the CMI-MULT function is not activated in the Function control file a contract line can only be initialized once. If you reduce the quantity it will not be possible to initialize the remaining quantity for the same line. It is suggested that the contract quantity for the line is reduced to the same quantity that is created for the order, and that a new contract line is created for the remaining quantity.) You can keep the purchase order type that is defaulted for this type of order, or change to another valid order type. You can also choose to maintain the purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order. The inventory contract is automatically linked to the order line. If the item on the purchase order line requires a quality control check, make sure the Quality ctl flag on the Order line, Additional info 1 panel is set to YES. Note: If anything on the purchase order is erroneous, you will access the panel where the error exists (Header or Line level) in the Work with purchase orders program after you click OK, where you will have to correct the errors and then click OK to create the purchase order.
You return to the Work with inventory contracts, Lines panel where the status has been updated to O (Order has been created for at least one of the lines on the contract).

(Or) Via the Work with purchase order routine

Select the Work with purchase orders menu item.
On the Work with purchase orders, Header view panel, add a purchase order.
On the Purchase order maintenance panel, enter the inventory contract in the Inventory contract field and the purchase order type used for a logistic purchase order for this type of contract. The supplier must be the same supplier as on the inventory contract. Click OK.
Add the purchase order line. If the item on the purchase order line requires a quality control check, make sure the Quality ctl flag on the Order line, Additional info 1 panel is set to YES. Close the order. Note: If an item is added to the purchase order and this item does not exist on the inventory contract, then an inventory contract line for this item will be created.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following posts have been created:

– Order line created

– Contract line was opened

– For each of these posts the following is also listed:

– The date it was created

– The time it was created

– Type of order (in this case P for purchase order)

– Purchase order number

– Purchase order type for the purchase order that was set up for this CMI process and Inventory contract type. The order type dictates the remaining steps in this Supply CMI process to initialize the contract line. (Follow the remaining steps below).

Contract qty stock unit

On purchase order with the quantity on the purchase order line for the logical SCS-warehouse.

For the logical SCS-warehouse the following has been booked:

Available and On order quantities have increased.

For the Physical warehouse that is connected to the logical SCS-warehouse, the following has been booked:

Available and On order quantities have increased.

For the logical SCS-warehouse the following has been booked:

On order quantity has increased.

For the Physical warehouse that is connected to the logical SCS-warehouse, the following has been booked:

On order quantity has increased.

Print the purchase order document via the Print option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
Print the reception note via the Rec note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
Receive the line. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.) During the reception of a logistic purchase order, no financial transactions will be created.

Select the Work with receptions menu item.
You access the Work with receptions, Receptions view panel. The warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your Physical warehouse that is connected to your logical SCS-warehouse, click the Select warehouse function key to change it to your Physical warehouse.
What you choose to do next depends on the situation. It could be that not everything was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

If the order line is not flagged for a quality control check, the inventory contract line is initialized and the quantity is available for sale when the reception has been confirmed. If the order line was flagged for a quality control check, you must perform that procedure for your Physical warehouse. See About quality control of incoming goods for instructions. The inventory contract line is initialized and the quantity is available for sale after the quality control confirmation has been performed. You have the following choices with what you want to do with any rejected quantity on a non-conformity certificate. You can:
- Return it to the supplier.
- Sell it. See Sell the supplier-owned goods to your customer.
- Perform an NCC stock movement. See About non-conformity stock.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created if the purchase order line was not flagged for QC handling:

– Order line received

If the purchase order line was flagged for QC handling the following posts have been created:

– Order line is awaiting QC

– Quality control note confirmed

– Order line received

For this post the following is also listed:

– The date it was created

– The time it was created

– Type of order (in this case P for purchase order)

– Purchase order number

– Purchase order type for the purchase order that was set up for this CMI process and Inventory contract type.

On purchase has decreased by the quantity that you received.

On hand has been updated with the quantity that you received.

NCC quantity has been updated with the quantity on a non-conformity certificate.

Available has been updated with the quantity that you received minus the NCC quantity.

Reception date has been set.

For the logical SCS-warehouse the following has been booked:

On order quantity has decreased, and Net on hand quantity has increased with the quantity received (excluding any quantity on a non-conformity certificate).
Note: For the available quantity, the same quantity is available as described in the previous updates minus any quantity on a non-conformity certificate. However, depending on the delivery date for the PO, perhaps not all dates were updated as available. After the reception all dates have been updated as available.

For the Physical warehouse connected to the logical SCS-warehouse the following has been booked:

On order quantity has decreased, and Net on hand quantity has increased with the quantity received (excluding any quantity on a non-conformity certificate).
The same Note, as described above for the logical SCS-warehouse, applies for the Physical warehouse.

For the logical SCS-warehouse the following has been booked:

Available and On hand quantities have increased with the quantity received (excluding any quantity on a non-conformity certificate), and On order quantity has decreased.

For the Physical warehouse connected to the logical SCS-warehouse the following has been booked:

Available and On hand quantities have increased with the quantity received (excluding any quantity on a non-conformity certificate), and On order quantity has decreased.

Activate and initialize the Supplier Consignment Stock (SCS) at wholesaler inventory contract – Logistic handling only

You must activate the inventory contract and then initialize each applicable contract line. You can initialize a contract line via one of the following alternatives:

Run the Supply CMI process on Inventory contract line level
Or
Manually create the purchase order via the Work with purchase orders routine and link the applicable Logistic SCS-contract on the Purchase order maintenance panel. All purchase order lines added to this purchase order will be used to update the inventory contract. If an item is added to the purchase order and this item does not exist on the inventory contract, then an inventory contract line for this item will be created. You can use the purchase order type that has been connected to the Supply CMI process in the Inventory contract type table for this type of inventory contract, or another that is valid when creating logistic purchase orders for this type of inventory contract.

Either way, a logistic purchase order will be created. This purchase order is only needed for the possibility to print a reception note and then receive the line. The lines on the purchase order will be set to FOC even though a purchase price must exist for the item. The purchase order will never be used in supplier invoice matching, nor will it affect cost accounting. You send the delivery instruction to the supplier and when you have physically received the goods from the supplier, you run a reception to receive the line(s), as well as the quality control check process if the item on the purchase order line is flagged for quality control, thereby updating stock on hand for the warehouse. During the reception of a logistic purchase order, no financial transactions will be created since the goods are owned by the supplier.

It is important that there is an exact match of the following for the item on the inventory contract and the item/purchase price record in the Item file: Purchase price, Purchase currency, Purchase unit. These can be set up in the Item file or on the inventory contract. If they are not an exact match, you will be flagged during reception that the purchase price does not exist. Even though the line on a Logistic SCS-contract will always be set to FOC, a purchase price must exist.

When the supplier has physically shipped the stock to you, you receive the purchase order. When this has been completed, the inventory contract line will be initialized and the quantity will be available for “sale” (i.e. perform a customer delivery).

Multiple receptions and contract quantity

The number of times a quantity can be received for the line, as well as if any quantity can be increased, is determined by a function in the Function control file.

Contract quantity	No contract quantity
If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	If no contract quantity was defined for the line, it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated, only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

Contract quantity

No contract quantity

If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

If no contract quantity was defined for the line, it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated, only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Activate the inventory contract

Select the Work with inventory contracts menu item.
Highlight the Logistic SCS-contract and either click the Activate option, or click the Change option to access the contract header and tick the Active box. The Inventory contract is now activated. The following post has been created in the Log file (accessed by highlighting the inventory contract and clicking the Log file option) for the inventory contract: Contract was activated.

Create the logistic purchase order to initialize the contract line

Via the Supply CMI process

Select the Work with inventory contracts menu item.
Highlight the Logistic SCS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel, select the applicable line and click the Supply option.
You access the Work with inventory contracts, Create supply order panel. If a contract quantity was defined on the line, keep the quantity or reduce it to that applicable. If a contract quantity was not defined on the line, enter that applicable. (Note: If the CMI-MULT function is not activated in the Function control file a contract line can only be initialized once. If you reduce the quantity it will not be possible to initialize the remaining quantity for the same line. It is suggested that the contract quantity for the line is reduced to the same quantity that is created for the order, and that a new contract line is created for the remaining quantity.) You can keep the purchase order type that is defaulted for this type of order, or change to another valid order type. You can also choose to maintain the purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order. The inventory contract is automatically linked to the order line. If the item on the purchase order line requires a quality control check, make sure the Quality ctl flag on the Order line, Additional info 1 panel is set to YES. Note: If anything on the purchase order is erroneous, you will access the panel where the error exists (Header or Line level) in the Work with purchase orders program after you click OK, where you will have to correct the errors and then click OK to create the purchase order.
You return to the Work with inventory contracts, Lines panel where the status has been updated to O (Order has been created for at least one of the lines on the contract).

(Or) Via the Work with purchase order routine

Select the Work with purchase orders menu item.
On the Work with purchase orders, Header view panel, add a purchase order.
On the Purchase order maintenance panel, enter the inventory contract in the Inventory contract field and the purchase order type used for a logistic purchase order for this type of contract. The supplier must be the same supplier as on the inventory contract. Click OK.
Add the purchase order lines. If the item on the purchase order line requires a quality control check, make sure the Quality ctl flag on the Order line, Additional info 1 panel is set to YES. Close the order. Note: If an item is added to the purchase order and this item does not exist on the inventory contract, then an inventory contract line for this item will be created.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following posts have been created:

Order line created
Contract line was opened

For each of these posts the following is also listed:

The date it was created
The time it was created
Type of order (in this case P for purchase order)
Purchase order number
Purchase order type for the purchase order that was set up for this CMI process and Inventory contract type. The order type dictates the remaining steps in this Supply CMI process to initialize the contract line. (Follow the remaining steps below).

Contract qty stock unit
On purchase order with the quantity on the purchase order line for the logical SCS-warehouse.

For the SCS-warehouse the following has been booked:

Available and On order quantities have increased.

For the Physical warehouse that is connected to the logical SCS-warehouse, the following has been booked:

Available and On order quantities have increased.

For the logical SCS-warehouse the following has been booked:

On order quantity has increased.

For the Physical warehouse that is connected to the logical SCS-warehouse, the following has been booked:

On order quantity has increased.

Print the purchase order document via the Print option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
Print the reception note via the Rec note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
Receive the line. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.) During the reception of a logistic purchase order, no financial transactions will be created.

Select the Work with receptions menu item.
You access the Work with receptions, Receptions view panel. The warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your Physical warehouse that is connected to your logical SCS-warehouse, click the Select warehouse function key to change it to your Physical warehouse.
What you choose to do next depends on the situation. It could be that not everything was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

If the order line is not flagged for a quality control check, the inventory contract line is initialized and the quantity is available for “sale” (i.e. perform a customer delivery) when the reception has been confirmed. If the order line was flagged for a quality control check, you must perform that procedure for your Physical warehouse. See About quality control of incoming goods for instructions. The inventory contract line is initialized and the quantity is available for “sale” (i.e. perform a customer delivery) after the quality control confirmation has been performed. You have the following choices with what you want to do with any rejected quantity on a non-conformity certificate. You can:
- Return it to the supplier.
- “Sell it” (i.e. perform a customer delivery). See Dispatch the supplier-owned goods to the customer.
- Perform an NCC stock movement. See About non-conformity stock.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created if the purchase order line was not flagged for QC handling:

Order line received

If the purchase order line was flagged for QC handling the following posts have been created:

Order line is awaiting QC
Quality control note confirmed
Order line received

For this post the following is also listed:

The date it was created
The time it was created
Type of order (in this case P for purchase order)
Purchase order number
Purchase order type for the purchase order that was set up for this CMI process and Inventory contract type.

On purchase has decreased by the quantity that you received.
On hand has been updated with the quantity that you received.
NCC quantity has been updated with the quantity on a non-conformity certificate.
Available has been updated with the quantity that you received minus the NCC quantity.
Reception date has been set.

For the logical SCS-warehouse the following has been booked:

On order quantity has decreased, and Net on hand quantity has increased with the quantity received (excluding any quantity on a non-conformity certificate). Note: For the available quantity, the same quantity is available as described in the previous updates minus any quantity on a non-conformity certificate. However, depending on the delivery date for the PO, perhaps not all dates were updated as available. After the reception all dates have been updated as available.

For the Physical warehouse connected to the logical SCS-warehouse the following has been booked:

On order quantity has decreased, and Net on hand quantity has increased (excluding any quantity on a non-conformity certificate). The same Note, as described above for the logical SCS-warehouse, applies for the Physical warehouse.

For the logical SCS-warehouse the following has been booked:

Available and On hand quantities have increased with the quantity received (excluding any quantity on a non-conformity certificate), and On order quantity has decreased.

For the Physical warehouse connected to the logical SCS-warehouse the following has been booked:

Available and On hand quantities have increased with the quantity received (excluding any quantity on a non-conformity certificate), and On order quantity has decreased.

Activate and initialize the Wholesaler Consignment Stock (WCS) at customer inventory contract

You must activate the inventory contract and then initialize each applicable contract line. You can initialize a contract line via one of the following alternatives:

External supply

Run the External supply CMI process on Inventory contract line level
Or
Manually create the purchase order via the Work with purchase orders routine and link the applicable WCS-contract on the Purchase order maintenance panel. All purchase order lines added to this purchase order will be used to update the inventory contract. If an item is added to the purchase order and this item does not exist on the inventory contract, then an inventory contract line for this item will be created. You can use the purchase order type that has been connected to the External supply CMI process in the Inventory contract type table for this type of inventory contract, or another that is valid when creating purchase orders for this type of inventory contract.

Internal supply. Run the Internal supply CMI process on Inventory contract line level.

Multiple receptions and contract quantity

The number of times a quantity can be received for the line, as well as if any quantity can be increased, is determined by a function in the Function control file.

Contract quantity	No contract quantity
If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	If no contract quantity was defined for the line, it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated, only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

Contract quantity

No contract quantity

If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

If no contract quantity was defined for the line, it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated, only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Activate the inventory contract

Select the Work with inventory contracts menu item.
Highlight the WCS-contract and either click the Activate option, or click the Change option to access the contract header and tick the Active box. The Inventory contract is now activated. The following post has been created in the Log file (accessed by highlighting the inventory contract and clicking the Log file option) for the inventory contract: Contract was activated.

Create an external supply order to initialize the inventory contract line

This will create a normal purchase order that will have the customer’s warehouse as the delivery address. The purchase order will update stock on hand for your logical WCS-warehouse and also for financial purposes since you (the wholesaler) are purchasing the goods from the supplier. When the purchase order line is received, the contract line will be considered as initialized and updated with a reception date. Once initialized, the quantity can be sold.

Via the External supply CMI process

Select the Work with inventory contracts menu item.
Highlight the WCS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel, select the applicable line and click the External supply option.
You access the Work with inventory contracts, Create external supply order panel. If the supplier was defined on the contract header during the setup of the inventory contract, it will be defaulted here. Otherwise, enter the supplier from whom you are purchasing the goods. If a contract quantity was defined on the line, keep the quantity or reduce it to that applicable. If a contract quantity was not defined on the line, enter that applicable. (Note: If the CMI-MULT function is not activated in the Function control file a contract line can only be initialized once. If you reduce the quantity it will not be possible to initialize the remaining quantity for the same line. It is suggested that the contract quantity for the line is reduced to the same quantity that is created for the order, and that a new contract line is created for the remaining quantity.) You can keep the purchase order type that is defaulted for this type of order, or change to another valid order type. You can also choose to maintain the purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order. The inventory contract is automatically linked to the order line. Note: If anything on the purchase order is erroneous, you will access the panel where the error exists (Header or Line level) in the Work with purchase orders program after you click OK, where you will have to correct the errors and then click OK to create the purchase order.
You return to the Work with inventory contracts, Lines panel where the status of the inventory contract line has been updated to O (Order line created).

(Or) Via the Work with purchase order routine

Select the Work with purchase orders menu item.
On the Work with purchase orders, Header view panel, add a purchase order.
On the Purchase order maintenance panel, enter the inventory contract in the Inventory contract field and the purchase order type used for a purchase order for this type of contract. Click OK.
Add the purchase order lines and close the order. Note: If an item is added to the purchase order and this item does not exist on the inventory contract, then an inventory contract line for this item will be created.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following posts have been created:

Order line created
Contract line was opened

For each of these posts the following is also listed:

The date it was created
The time it was created
Type of order (in this case P for purchase order)
Purchase order number
Purchase order type for the purchase order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this External supply CMI process to initialize the contract line. (Follow the remaining steps below).

Contract qty stock unit
On purchase order with the quantity on the purchase order line for the logical WCS-warehouse.

For the logical WCS-warehouse the following has been booked:

Available and On order quantities have increased.

For the logical WCS-warehouse the following has been booked:

On order quantity has increased.

Print the purchase order document via the Print option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
Print the reception note via the Rec note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
Receive the line. This must be done for your logical WCS-warehouse even though you will not physically receive the goods on the line. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.)

Select the Work with receptions menu item.
You access the Work with receptions, Receptions view panel. The warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your logical WCS-warehouse, click the Select warehouse function key to change it to that warehouse.
What you choose to do next depends on the situation. It could be that not everything was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

When the reception has been confirmed, the inventory contract line is initialized and the quantity is available for sale.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created:

Order line received

For this post the following is also listed:

The date it was created
The time it was created
Type of order (in this case P for purchase order)
Purchase order number
Purchase order type for the purchase order that was set up for this CMI process and Inventory contract type.

On purchase has decreased by the quantity that you received.
On hand has been updated with the quantity that you received.
Available has been updated with the quantity that you received.
Reception date has been set.

For the logical WCS-warehouse the following has been booked:

On order quantity has decreased and Net on hand quantity has increased. Note: For the available quantity, the same quantity is available as described in the previous updates. However, depending on the delivery date for the PO, perhaps not all dates were updated as available. After the reception all dates have been updated as available.

For the logical WCS-warehouse the following has been booked:

Available and On hand quantities have increased and On order quantity has decreased.

Run the Internal supply CMI process to initialize the inventory contract line

This CMI process should be used when you want to move goods from one of your internally owned warehouses set up in your system (either a normal or a trade warehouse) to supply your logical WCS-warehouse (set up in your system). Moving goods between two warehouses that are owned by you (the wholesaler) is a normal IRO scenario. So running the internal supply process for an inventory contract line will create an Internal sales order (IRO sales order) that is linked to the inventory contract. The connected Internal purchase order (IRO purchase order) will also be linked to the inventory contract and once this IRO purchase order is received, the inventory contract line will be updated with a reception date and will be considered initialized and available for sale.

Select the Work with inventory contracts menu item.
Highlight the WCS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel, select the applicable line and click the Internal supply option.
You access the Work with inventory contracts, Create internal supply order panel. If the internal customer/supplier information for the logical WCS-warehouse has been set up in the system, the Customer number (i.e. the internal customer) for the logical WCS-warehouse (i.e. the “To” warehouse) is defaulted. The From warehouse can be defaulted if you have an internal supplier defined on the contract header and if this supplier has a warehouse defined on the Supplier file panel. Otherwise, enter the From warehouse (in your system) from which you want to move the goods to the “To” warehouse (i.e. the logical WCS-warehouse in your system). If a contract quantity was defined on the line, keep the quantity or reduce it to that applicable. If a contract quantity was not defined on the line, enter that applicable. (Note: If the CMI-MULT function is not activated in the Function control file a contract line can only be initialized once. If you reduce the quantity it will not be possible to initialize the remaining quantity for the same line. It is suggested that the contract quantity for the line is reduced to the same quantity that is created for the order, and that a new contract line is created for the remaining quantity.) You can choose to maintain the IRO sales order after creation by setting the Maintain order flag to YES. Click OK to create the IRO sales order. The inventory contract is automatically linked to the order line. Note: If anything on the IRO sales order is erroneous, you will access Work with orders in error mode (Header or Line level) after you click OK, where you will have to correct the errors and then click OK to create the IRO sales order. The corresponding IRO purchase order will automatically be created if the PO type is defined for direct printout of purchase order. Otherwise it has to be created from the Create IRO purchase order menu item.
You return to the Work with inventory contracts, Lines panel where the status of the inventory contract line has been updated to O (Order line created).

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following posts have been created:

Order line created (for the IRO sales order)
Contract line was opened (for the IRO sales order)
Order line created (for the IRO purchase order)

For each of these posts the following is also listed:

The date it was created
The time it was created
Type of order (S for IRO sales order, and P for IRO purchase order)
IRO sales order number
IRO sales order type for the IRO sales order that was set up for this CMI process and Inventory contract type. The order type dictates the remaining steps in this Internal supply CMI process to initialize the inventory contract line. (Follow the remaining steps below).
IRO Purchase order number
IRO Purchase order type for the IRO purchase order that was set up for this CMI process and Inventory contract type. The order type dictates the remaining steps in this Internal supply CMI process to initialize the contract line. (Follow the remaining steps below).

Contract qty stock unit
On purchase order with the quantity on the IRO purchase order line for the logical WCS-warehouse.

For the logical WCS-warehouse the following has been booked:

Available and On hand quantities have increased.

For the Supplying warehouse, (i.e. the logical (Trade) warehouse or normal warehouse from which you are moving the goods), the following has been booked:

Available quantity has decreased and Reservation quantity has increased.

For the Physical warehouse to which the supplying trade warehouse is connected, (if you used such a warehouse), or the normal warehouse (if you used such a warehouse), the following has been booked:

Available quantity has decreased and Reservation quantity has increased.

For the logical WCS-warehouse the following has been booked:

On order quantity has increased.

For the Supplying warehouse, (i.e. the logical (Trade) warehouse or normal warehouse from which you are moving the goods), the following has been booked:

Available quantity has decreased and Reserved quantity has increased.

For the Physical warehouse to which the supplying trade warehouse is connected, (if you used such a warehouse), or the normal warehouse (if you used such a warehouse), the following has been booked:

Available quantity has decreased and Reserved quantity has increased.

Print the IRO sales order confirmation document via the Order confirmation option on the Work with sales orders, Header view panel if the sales order type was defined to print this document. Otherwise go to the next step (Print the pick list).
Print the pick list, either via the Pick list option on the Work with sales orders, Header view panel or via the Print pick list menu item.
Confirm the pick list for the Physical warehouse to which your supplying trade warehouse is connected (if you used such a warehouse), or the normal warehouse (if you used such a warehouse). (See About pick list confirmation for instructions regarding the two different routines that can be used to confirm the picking. The Work with pickings program is described below.)

Select the Work with pickings menu item.
You access the Work with pickings, Pickings view panel. The warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your Physical warehouse that is connected to your supplying trade warehouse (if you used such a warehouse), or the normal warehouse (if you used such a warehouse), click the Select warehouse function key to change it to your Physical warehouse or your normal warehouse.
What you choose to do next depends on the situation. It could be that not everything is ready to be confirmed, requiring you to change the line quantity, or you can perform a full dispatch. Perhaps you need to define the zone/location from where to pick the goods. See Work with picking for more information about the tasks available. When picking has been confirmed, the following will be updated: In the Time axis enquiry, the Net on hand and Reservation quantities will decrease for the Physical warehouse that is connected to the logical WCS-warehouse, as well as the Supplying warehouse. In the Warehouse balance enquiry, the On hand and Reserved quantities will decrease for the Physical warehouse that is connected to the logical WCS-warehouse, as well as the Supplying warehouse.)

Print the transport note for the IRO sales order via the Print transport notes menu item if the sales order type was defined to print this document. Otherwise go to the next step (Print the IRO purchase order document).
Print the invoice for the IRO sales order via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item. No log file post is created for the inventory contract line.
Print the IRO purchase order document via the Print option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note for the IRO purchase order).
Print the reception note for the IRO purchase order via the Rec note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
Confirm the reception for the logical WCS-warehouse from the internal supplier. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.)

Select the Work with receptions menu item.
You access the Work with receptions, Receptions view panel. The warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your logical WCS-warehouse, click the Select warehouse function key to change it to that warehouse.
What you choose to do next depends on the situation. It could be that not everything was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

When the reception has been confirmed, the inventory contract line is initialized and the quantity is available for sale.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created:

Order line received (for the IRO purchase order)

For this post the following is also listed:

The date it was created
The time it was created
Type of order (in this case, P for IRO purchase order)
IRO purchase order number
IRO purchase order type for the IRO purchase order that was set up for this CMI process and Inventory contract type.

On purchase order decreased with the quantity that you received on the IRO purchase order line.
On hand with the quantity that you received on the IRO purchase order line.
Available with the quantity that you received on the IRO purchase order line.
Reception date has been set.

For the logical WCS-warehouse the following has been booked:

Available and Net on hand quantities have increased.
On order quantity has decreased.

For the logical WCS-warehouse the following has been booked:

Available and On hand quantities have increased.
On order quantity has decreased.

Activate and initialize the Wholesaler Deposit Stock (WDS) contract

You must activate the inventory contract and then initialize each applicable contract line. You can initialize a contract line via one of the following alternatives:

Run the Supply CMI process on Inventory contract line level
Or
Manually create the purchase order via the Work with purchase orders routine and link the applicable WDS-contract on the Purchase order maintenance panel. All purchase order lines added to this purchase order will be used to update the inventory contract. If an item is added to the purchase order and this item does not exist on the inventory contract, then an inventory contract line for this item will be created. You can use the purchase order type that has been connected to the Supply CMI process in the Inventory contract type table for this type of inventory contract, or another that is valid when creating purchase orders for this type of inventory contract.

Either way, an almost “normal” purchase order will be created, which will be used for financial transactions since you (the wholesaler) purchase the goods from the supplier. The purchase order must also run through a normal reception routine (or be created for a purchase order that is defined for direct receipt) in order to update the logical WDS-warehouse that is defined on the contract line. When the purchase order line is received, the contract line will be considered as initialized and updated with a reception date. The quantity will then be available for sale.

Multiple receptions and contract quantity

The number of times a quantity can be received for the line, as well as if any quantity can be increased, is determined by a function in the Function control file.

Contract quantity	No contract quantity
If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line. If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity. If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.	If no contract quantity was defined for the line, it works as follows: If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed. If that function is not activated, only one reception will be allowed for the contract line to initialize the line. A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives: Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out. Manually close the line without entering any contract quantity. Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed. Delete the line.

Contract quantity

No contract quantity

If a contract quantity was defined for the line it means that this quantity will be used to limit how much can be received for a line.

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to receive quantities for the same inventory contract line multiple times as long as the summarized quantity is not higher than the contract quantity limit. You will also be able to increase the contract quantity when needed and then perform a “supply” to initialize that increased quantity.
If the function is not activated only one reception will be allowed for the inventory contract line to initialize the line. Hence, if the entire contract quantity is not received you will not be able to perform another “supply” to receive the remaining quantity. In addition, you will not be able to increase the contract quantity.

If no contract quantity was defined for the line, it works as follows:

If the CMI-MULT (CMI – Multiple reception) function is activated in the Function control file you will be able to constantly “supply” this line as needed.
If that function is not activated, only one reception will be allowed for the contract line to initialize the line.

A contract line without a contract quantity will never be automatically closed. If such a line shall no longer be used, you have the following alternatives:

Enter a contract quantity that is equal to the consumed quantity, which means that you are deciding that the line was sold out.
Manually close the line without entering any contract quantity.
Enter an end date which has passed. Even if the line is still open it will never be retrieved by the sourcing program, since the date has passed.
Delete the line.

Activate the inventory contract

Select the Work with inventory contracts menu item.
Highlight the WDS-contract and either click the Activate option, or click the Change option to access the contract header and tick the Active box. The inventory contract is now activated. The following post has been created in the Log file (accessed by highlighting the inventory contract and clicking the Log file option) for the inventory contract: Contract was activated.

Create the purchase order to initialize the contract line

Via the Supply CMI process

Select the Work with inventory contracts menu item.
Highlight the WDS-contract and click the Lines option to drill down to the inventory contract line level.
On the Work with inventory contracts, Lines panel, select the applicable line and click the Supply option.
You access the Work with inventory contracts, Create supply order panel. The supplier on the contract from whom you are purchasing the goods is defaulted. If a contract quantity was defined on the line, keep the quantity or reduce it to that applicable. If a contract quantity was not defined on the line, enter that applicable. (Note: If the CMI-MULT function is not activated in the Function control file a contract line can only be initialized once. If you reduce the quantity it will not be possible to initialize the remaining quantity for the same line. It is suggested that the contract quantity for the line is reduced to the same quantity that is created for the order, and that a new contract line is created for the remaining quantity.) You can keep the purchase order type that is defaulted for this type of order, or change to another valid order type. You can also choose to maintain the purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order. The inventory contract is automatically linked to the order line. Note: If anything on the purchase order is erroneous, you will access the panel where the error exists (Header or Line level) in the Work with purchase orders program after you click OK, where you will have to correct the errors and then click OK to create the purchase order.
You return to the Work with inventory contracts, Lines panel where the status has been updated to O (Order has been created for at least one of the lines on the contract).

(Or) Via the Work with purchase order routine

Select the Work with purchase orders menu item.
On the Work with purchase orders, Header view panel, add a purchase order.
On the Purchase order maintenance panel, enter the inventory contract in the Inventory contract field and the purchase order type used for a purchase order for this type of contract. The supplier must be the same supplier as on the inventory contract. Click OK.
Add the purchase order lines and close the order. Note: If an item is added to the purchase order and this item does not exist on the inventory contract, then a contract line for this item will be created.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following posts have been created:

Order line created

Contract line was opened

For each of these posts the following is also listed:

– The date it was created

– The time it was created

– Type of order (in this case P for purchase order)

– Purchase order number

– Purchase order type for the purchase order that was set up for this CMI process and Inventory contract type. The order type dictates the remaining steps in this External supply CMI process to initialize the contract line. (Follow the remaining steps below).

Contract qty stock unit

On purchase order with the quantity on the purchase order line for the logical WDS-warehouse.

For the logical WDS-warehouse the following has been booked:

On order and Available quantities have increased.

For the logical WDS-warehouse the following has been booked:

On order quantity has increased.

Print the purchase order document via the Print option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
Print the reception note via the Rec note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
Receive the line. This must be done for your logical WDS-warehouse even though you will not physically receive the goods on the line. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.)

Select the Work with receptions menu item.
You access the Work with receptions, Receptions view panel. The warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your logical WDS-warehouse, click the Select warehouse function key to change it to that warehouse.
What you choose to do next depends on the situation. It could be that not everything was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

When the reception has been confirmed, the inventory contract line is initialized and the quantity is available for sale.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created:

Order line received

For this post the following is also listed:

– The date it was created

– The time it was created

– Type of order (in this case P for purchase order)

– Purchase order number

– Purchase order type for the purchase order that was set up for this CMI process and Inventory contract type.

On purchase has decreased by the quantity that you received.

On hand has been updated with the quantity that you received.

Available has been updated with the quantity that you received.

Reception date has been set.

For the logical WDS-warehouse the following has been booked:

On order quantity has decreased and Net on hand quantity has increased.

For the logical WDS-warehouse the following has been booked:

On order quantity has decreased and Available and On hand quantities have increased.

Activate and initialize the Customer Buffer Stock (CBS) at wholesaler inventory contract

There are no CMI processes for this type of contract. The inventory contract line will be initialized (i.e. updated with a reception date and available for sale) when the contract is activated or when a new line is added for an active contract. As soon as the line is initialized, a corresponding temporary reservation will be created. This reservation is created with type 60 and is linked to the specific customer and to the contract line. The end user must use the sales order entry routine to sell the goods to the customers. The available quantity on the sales order line will always be equal to the remaining reserved quantity on the temporary reservation. The temporary reservation will not be possible to change or delete. If it shall be deleted, this must be done by changing or deleting the corresponding inventory contract line.

Activate the inventory contract

Select the Work with inventory contracts menu item.
Highlight the CBS-contract and either click the Activate option, or click the Change option to access the contract header and tick the Active box. The inventory contract is now activated and any contract lines are initialized (updated with a reception date and available for sale). The following post has been created in the Log file (accessed by highlighting the inventory contract and clicking the Log file option) for the inventory contract: Contract was activated.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line

(Highlight the line and click the Log file option)

Inventory contract line details

(Highlight the line and click the Display option)

Time axis enquiry

Warehouse balance enquiry

The following post has been created:

Contract line was created

For this post the following is also listed:

– The date it was created

– The time it was created

On hand has been updated with the quantity that is reserved for the customer.

Available has been updated with the quantity that is reserved for the customer.

Reception date has been set.

For the logical CBS-warehouse, or the normal warehouse (in which case it will not be linked to any physical warehouse), the following has been booked:

Reservation quantity has increased and Available quantity has decreased.

For the Physical warehouse that is connected to the logical CBS-warehouse the following has been booked:

Reservation quantity has increased and Available quantity has decreased.

For the logical CBS-warehouse, or the normal warehouse (in which case it will not be linked to any physical warehouse), the following has been booked:

Reserved quantity has increased and Available quantity has decreased.

For the Physical warehouse that is connected to the logical CBS-warehouse the following has been booked:

Reserved quantity has increased and Available quantity has decreased.

Activate and initialize the Wholesaler Buffer Stock (WBS) at supplier inventory contract

The inventory contract line will be initialized (i.e. updated with a reception date and available for sale or other contract type processes) when the contract is activated or when a new line is added for an active contract.

Activate the inventory contract

Select the Work with inventory contracts menu item.
Highlight the WBS-contract and either click the Activate option, or click the Change option to access the contract header and tick the Active box. The inventory contract is now activated and any contract lines are initialized (updated with a reception date and available for sale and/or other contract processes). The following post has been created in the Log file (accessed by highlighting the inventory contract and clicking the Log file option) for the inventory contract: Contract was activated.

Activate and initialize the Deferred Indent Stock (DIS) at customer inventory contract

Goods are owned by the supplier, but they are located at the customer’s warehouse site. You, the wholesaler, are only involved in the financial transactions. This means that you, the wholesaler, will be the one that sends the invoice to the customer, and informs the supplier about the customer’s consumption and receive the supplier invoice.

The inventory contract line will be initialized (i.e. updated with a reception date and available for sale or other contract type processes) when the inventory contract is activated or when a new inventory contract line is added for an active inventory contract.

Activate the inventory contract

Select the Work with inventory contracts menu item.
Highlight the DIS-contract and either click the Activate option, or click the Change option to access the contract header and tick the Active box. The inventory contract is now activated and any contract lines are initialized (updated with a reception date and available for sale and/or other contract processes). The following post has been created in the Log file (accessed by highlighting the inventory contract and clicking the Log file option) for the inventory contract: Contract was activated.

General information

Setting up the inventory contracts

Activating the inventory contracts and initializing the lines

General information

Duration of the inventory contracts

Linking contract keys to restrict sales from the inventory contract

Sales and purchase order related default values

Statuses

Availability control and auto-sourcing

Creating sales orders for items managed by inventory contracts

Auto-assign setting on inventory contract lines

Decrease the quantity on an inventory contract line

Consuming from an inventory contract line

Batch handling

Sales restrictions

Setting up the inventory contracts

Setup – Inventory contract for Customer Deposit Stock (CDS) at wholesaler

Setup – Inventory contract for Supplier Consignment Stock (SCS) at wholesaler

Setup – Inventory contract for Supplier Consignment Stock (SCS) at wholesaler – Logistic handling only

Setup – Inventory contract for Wholesaler Consignment Stock (WCS) at customer

Setup – Inventory contract for Wholesaler Deposit Stock (WDS) at supplier

Setup – Inventory contract for Customer Buffer Stock (CBS) at wholesaler

Setup – Inventory contract for Wholesaler Buffer Stock (WBS) at supplier

Setup – Inventory contract for Deferred Indent Stock (DIS) at customer

About activating the inventory contracts and initializing the lines

Activate and initialize the Customer Deposit Stock (CDS) inventory contract

Multiple receptions and contract quantity

Activate the inventory contract

Run the Supply deposit CMI process to initialize the inventory contract line

Activate and initialize the Supplier Consignment Stock (SCS) at wholesaler inventory contract

Multiple receptions and contract quantity

Activate the inventory contract

Create the logistic purchase order to initialize the contract line

Activate and initialize the Supplier Consignment Stock (SCS) at wholesaler inventory contract – Logistic handling only

Multiple receptions and contract quantity

Activate the inventory contract

Create the logistic purchase order to initialize the contract line

Activate and initialize the Wholesaler Consignment Stock (WCS) at customer inventory contract

Multiple receptions and contract quantity

Activate the inventory contract

Create an external supply order to initialize the inventory contract line

Run the Internal supply CMI process to initialize the inventory contract line

Activate and initialize the Wholesaler Deposit Stock (WDS) contract

Multiple receptions and contract quantity

Activate the inventory contract

Create the purchase order to initialize the contract line

Activate and initialize the Customer Buffer Stock (CBS) at wholesaler inventory contract

Activate the inventory contract

Activate and initialize the Wholesaler Buffer Stock (WBS) at supplier inventory contract

Activate the inventory contract

Activate and initialize the Deferred Indent Stock (DIS) at customer inventory contract

Activate the inventory contract

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