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Consuming goods

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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. Click the applicable link under the related topics for 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.

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

Restrictions may be in place on the sale of either certain items, or to certain customers for an inventory contract. If sales restrictions have been set up for specific inventory contracts, you will be flagged during sales order entry. The severity of the restriction can vary; all dependent on how the system was set up. It controls how you are allowed to proceed with the order. See Work with restricted sales for more information.

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