With this type of inventory contract the goods are owned by you but physically stored at the supplier’s warehouse site.
If a Wholesaler Deposit Stock (WDS) inventory contract has been set up and initialized in your system, all sales, movements, and returns for items managed by this type of contract must be done from and/or connected to the inventory contract depending on the procedure you want to perform. For such a contract the following can be performed:
- Sell the goods
- Move the goods from the supplier’s warehouse site (set up in your system) to your own warehouse site
- Return the goods and ownership to the supplier
Sell the goods
Sales for a WDS inventory contract line will always take place as “normal” sales order lines using the Sales order entry routine. Since you own the goods, they are “considered” located in one of your warehouses (even though they are not physically located in one of your warehouses). This means that the sales order will run through the picking process, even though it has to be done by the personnel at the supplier’s warehouse. A “Dispatch request” document is produced instead of a pick list document. This has to be sent to the supplier, and when you receive a signal that the goods have been dispatched, the picking can be confirmed.
Note: It is recommended to use the sales order type that has been set up for WDS-contracts. If you choose to use a different sales order type, it must be defined to update stock on hand and it is recommended that the Pick list and Invoice are the only documents to print.
You can choose from the following to link the sales order line to the WDS inventory contract during sales order entry:
- Manually link the inventory contract on the Create new panel, the sales order header, alternatively on the sales order line. For the sales order line location, you can do this on the Order line, Main info panel, or on the Customer and item info, Line entry panel when creating a new sales order line using full entry mode (i.e. you clicked the Cust info function key on the Order lines panel). When such a reference is defined, the entered lines are validated against the inventory contract and the warehouse is retrieved from the inventory contract.
A setting on the Inventory contract header 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 you define the contract number on the sales order header.
If the Off-contract sales 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 you 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 the Off-contract sales 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 the 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.
- Use the Inventory contract availability program. Click 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 (on the Create new panel) when the sales order was created, or another inventory contract which can be defined on this panel. You can leave the quantity as is or enter the applicable quantity for the line and then select the line to create the sales order line.
- Enter 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 WDS-warehouse, a search will take place to find the inventory contract automatically. This will be done even if auto-sourcing is not on for the sales order.
- If a sourcing policy was set up in your system, and it contains the warehouse used for WDS inventory contracts, and auto-sourcing is configured, you do not need to make a reference to the inventory contract during sales order entry. As a result of the auto-sourcing, the sales order line will be sourced using this inventory contract.
- Select the Work with sales orders menu item.
- On the Work with sales orders, Header view panel, add a sales order.
- Create your sales order and link the inventory contract to the line as per one of the choices above.
- On the Work with sales orders, Order lines panel, complete the mandatory information and click OK to create the item. The inventory contract is linked to the sales order line.
- Print the pick list (i.e. Dispatch request), either via the Pick list option on the Work with sales orders, Header view panel or via the Print pick list menu item, and send it to the supplier.
- When you receive a signal from the supplier that the goods have been picked and dispatched, confirm the pick list for the WDS-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 WDS-warehouse, click the Select warehouse function key to change it to your WDS-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.
- Print the invoice, either via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item. When the invoice has been printed, the following log file post will be created for the inventory contract line: Order line invoiced. The Disp not invoiced quantity on the inventory contract line details will also be reduced with the quantity invoiced.
| 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 created If you consumed (i.e. sold) the entire quantity for the line, the following post has also been created: Contract line was closed For those posts, the following is also listed: – The date it was created – The time it was created – Type of order (in this case S for sales order) – Sales order number – Sales order type for the sales order that was set up for the inventory contract type. The order type dictates the remaining steps in the Sales procedure. (Follow the remaining procedure below). |
Available quantity has been reduced by the quantity that is to be dispatched.
Reservations quantity has been increased with the quantity on the sales order line for the WDS-warehouse. |
For the WDS-warehouse:
Reservation quantity has increased and Available quantity has decreased. |
For the WDS-warehouse:
Available quantity has decreased and Reserved quantity has increased. |
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.
| 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 |
On hand quantity has been reduced by the quantity picked.
Reservations quantity has been reduced by the quantity picked on the sales order line for the WDS-warehouse. Consumed quantity has been booked with the quantity picked. If the consumed quantity is equal to the contract quantity the line will be closed and no more sales can take place. Disp not invoiced quantity has been booked with the dispatched quantity that has not yet been invoiced. |
For the WDS-warehouse:
Net on hand and Reservation quantities have decreased. |
For the WDS-warehouse:
On hand and Reserved quantities have decreased. |
Move the goods from the supplier’s warehouse site to your own warehouse site
This CMI process can be run when you want to move the goods from the supplier’s warehouse site (that is set up in your system for this inventory contract type) to one of your own warehouse sites (either a normal or trade warehouse that is set up in your system). Since they are goods that are moved between two of your own warehouses (set up in your system), normal IRO orders will be created. It is only the SO-part of the IRO that affects the inventory contract, since it is the picking for this order that will consume from the contract. When you do the reception for the PO-part of this IRO, you are doing this for your own goods in your own warehouse. Hence the reception will not affect any inventory contract.
- 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.
- Highlight the applicable line and click the Transfer in-house option.
- You access the Work with inventory contracts, Create transfer to in-house order panel. Enter the To warehouse where you want to move the goods (must be either a normal or trade warehouse). If the internal customer/supplier information for the Logical (Trade) warehouse or Normal warehouse has been set up in the system, the Customer number (i.e. the internal customer) for the Logical (Trade) warehouse or Normal warehouse (i.e. the “To” warehouse) is defaulted. Keep the quantity as is or change to that applicable. 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 and return to the Work with inventory contracts, Lines panel. The inventory contract is automatically linked to the sales order line. Note: 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 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.
- 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.
- Confirm the pick list for the WDS-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 WDS-warehouse, click the Select warehouse function key to change it to your WDS-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.
- 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 reception note).
- Print the reception note for the IRO purchase order via the Reception 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 from the internal supplier for the Physical warehouse (to which your Logical (Trade) warehouse is connected) OR the normal warehouse. (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, Reception 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 (to which your logical (Trade) warehouse is connected) OR the normal warehouse, click the Select warehouse function key to change it to the applicable 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.
- Print the invoice for the IRO sales order, either 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.
| 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 created (for the IRO sales order) For this post, the following is also listed: – The date it was created – The time it was created – Type of order (S for IRO sales 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 Transfer to in-house procedure. (Follow the remaining steps below). |
Reservations with the quantity on the IRO sales order line for the WDS-warehouse
Available quantity has been reduced with the quantity on the IRO sales order line for the WDS-warehouse. |
For the WDS-warehouse:
Reservation quantity has increased and Available quantity has decreased. For the Physical warehouse (this is only updated if it is connected to a Trade warehouse): On order and Available quantities have increased. This is done when the IRO purchase order is created. For the Receiving warehouse, (i.e. the logical (Trade) warehouse or normal warehouse to which you are moving the goods): On order and Available quantities have increased. |
For the WDS-warehouse:
Reserved quantity has increased and Available quantity has decreased. For the Physical warehouse (this is only updated if it is connected to a Trade warehouse): On order quantity has increased. This is done when the IRO purchase order is created. For the Receiving warehouse, (i.e. the logical (Trade) warehouse or normal warehouse to which you are moving the goods): On order quantity has increased. |
| 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 the IRO sales order) For the above post, the following is also listed: – The date it was created – The time it was created – Type of order (in this case, S for IRO sales order) – IRO sales order number – IRO sales order type for the IRO sales order. |
On hand has decreased with the quantity that you picked on the IRO sales order line for the WDS-warehouse.
Reservations has decreased with the quantity that you picked on the IRO sales order line for the WDS-warehouse. Consumed has increased with the quantity that you picked on the IRO sales order line for the WDS-warehouse. |
For the WDS-warehouse:
Net on hand quantity has decreased. Reservation quantity has decreased. |
For the WDS-warehouse:
On hand and Reserved quantities have decreased. |
| Time axis enquiry | Warehouse balance enquiry |
| For the Physical warehouse (that is connected to the logical (Trade) warehouse) OR the normal warehouse:
Net on hand quantity has increased and On order quantity has decreased. For the Receiving warehouse, (i.e. the logical (Trade) warehouse or normal warehouse to which you moved the goods): Net on hand quantity has increased and On order quantity has decreased. |
For the Physical warehouse (that is connected to the logical (Trade) warehouse) OR the normal warehouse:
On hand quantity has increased and On order quantity has decreased. For the Receiving warehouse (i.e. the logical (Trade) warehouse or normal warehouse to which you moved the goods): Available and On hand quantities have increased and On order quantity has decreased. |
Return the goods and ownership to the supplier
This process can be run when you decide that you no longer want to own the goods that are located at the supplier’s warehouse site (the WDS-warehouse set up in your system for the inventory contract type). You want to send them back to the supplier, and give back the ownership to the supplier. A “normal” return order is created. The exception is that you do not have any goods that have to physically be returned from your own WDS-warehouse. But the reception routine has to run for the return order (unless the order type for the return order is defined for immediate return), to be able to get the correct update for the logical WDS-warehouse.
- 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.
- Highlight the line and click the Return to supplier option.
- You access the Work with inventory contracts, Create return to supplier order panel. Leave the quantity as is or change to that applicable. You can choose to maintain the (return) purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order and return to the Work with inventory contracts, Lines panel. The inventory contract is automatically linked to the purchase 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.
- Print the purchase order document via the Print order 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 Reception 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 (if the order type used for the return order is not set up with an immediate return). This must be done for your 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 WDS-warehouse, click the Select warehouse function key to change it to your WDS-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.
| 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 created 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 for the return purchase order – Purchase order type for the return purchase order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this Return to supplier procedure. (Follow the remaining steps below). |
Available has decreased with the quantity that you are returning for the WDS-warehouse.
On return order has increased with the quantity on the return purchase order line for the WDS-warehouse. |
For the WDS-warehouse:
Net on hand and Available quantities have decreased. |
For the WDS-warehouse:
Available quantity has decreased and Reserved quantity has increased. |
Catch weight handling
If the order line was flagged for Catch weight handling, you will access the Work with receptions, 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/purchase 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.
| 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) |
Warehouse balance enquiry | The following post has been created:
Order line received If you consumed (i.e. returned) the entire quantity for the inventory contract line, the following post has also been created: Contract line was closed For those 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 for the return purchase order – Purchase order type for the return purchase order. |
On hand has decreased with the quantity that you returned.
On return order has decreased with the quantity that you returned. Consumed has increased with the quantity that you returned. |
For the WDS-warehouse:
On hand and Reserved quantities have decreased. |
Related topics
- About consuming goods from Contract Managed Inventory (CMI)
- Consuming goods from a Customer Deposit Stock (CDS) inventory contract
- Consuming goods from a Supplier Consignment Stock (SCS) inventory contract
- Consuming goods from a Logistic Supplier Consignment Stock (SCS) inventory contract
- Consuming goods from a Wholesaler Consignment Stock (WCS) inventory contract
- Consuming goods from a Customer Buffer Stock (CBS) inventory contract
- Consuming goods from a Wholesaler Buffer Stock (WBS) inventory contract
- Consuming goods from a Deferred Indent Stock (DIS) inventory contract
- About DC1 Contract Managed Inventory (CMI)