Dynamics 365 Consignment Inventory Improvements
According to the Urban Dictionary, “Consignment” means “to give over to the care of another; entrust.” Looking for an easier way to manage Consignment Inventory? Dynamics 365 for Operations has the solution.
With the addition of the “owner” inventory tracking dimension, Consignment inventory can now be set up and tracked from requirement to receipt, then on to use and finally payment. Only inventory quantities and transactions are tracked in Dynamics 365; no financial impact is recorded to general ledger until ownership is transferred. Consignment is now an activity on the Procurement and Sourcing Area Page where Replenishment Orders and Inventory Ownership can be managed.
The inventory can be reserved because it is counted as “on-hand” making inventory management more accurate and straight-forward. Consignment Inventory can also be moved around by simply using a Transfer Journal. And better yet, the Item Counting Journal can now be used to adjust inventory if the need arises.
To get started tracking Consignment Inventory in Dynamics 365 for Operations:
- Create a Tracking Dimension Group with the “Owner” tracking dimension activated.
- Define the Inventory Change Journal; the journal type will be Ownership Change
- Designate the consignment vendors as Inventory Owners
- Create Released Products established for consignment inventory with the new Tracking Dimension Group assigned
To make use of the Consignment Inventory functionality:
- Create Consignment Replenishment Orders
- Receive the product against the Replenishment Orders
- At the time of ownership change (consumption), Enter an Inventory Change Journal
- Process the Vendor Invoice when it is received, against the Consignment Purchase Order, which was generated automatically during the Inventory Change Journal process
Vendors can monitor the inventory through Vendor Collaboration. Here they can monitor on-hand inventory, consignment inventory consumption, and consignment inventory receipts.
Create Tracking Dimension Group
To create the Tracking Dimension Group, navigate to Product Information Management > Set Up > Dimension and Variant Groups > Tracking Dimension Groups
Check the Owner Tracking Dimension to activate it on the tracking dimension group desired. Also check the remaining check boxes to activate the additional functionality as needed.
Designate Inventory Owners
To Designate the Inventory Owners, navigate to Inventory Management > Set Up > Dimensions > Inventory Owners
Select the Vendor Account from the drop down, and the name will populate. The Owner will populate with the Vendor Account number, but should be re-entered to be something meaningful.
Consignment Replenishment Orders
To create the Consignment Replenishment Order, navigate to Procurement and Sourcing > Consignment > Consignment Replenishment Orders
Click “New” and complete Vendor information and consignment replenishment order reference. Click “OK”. Proceed to the replenishment order line details.
Inventory Ownership Change
To record the transfer of ownership at the time of consumption, navigate to Procurement and Sourcing > Consignment > Inventory Ownership Change
Choose the proper Journal Name from the drop down. Click “OK” and proceed to enter the line details.
Have other Microsoft Dynamics 365 for Operations inquiries or needs? Visit our Help Desk for AX page to see how our experts can help!
For more information please contact Ellipse Solutions at firstname.lastname@example.org or by calling our corporate office at (937) 312-1547.