Overview

The vendor fills up the company's warehouse with consignment stock and VMI.

The document confirms items, quantity, and the contracted price of goods received from the vendor. It records the received goods at the warehouse and evaluates the conditional financial liability. In fact, the document does not increase any financial liabilities in the company's balance sheet as the goods are still the vendor's or consignor's property.

In some countries, companies need to account for off-balance assets and liabilities. In this case, the process and its documents can be used to create such kinds of financial accounting entries.

As a result of the process, the company stock is filled up by the vendor for consignment and VMI.

Fill up company stock by vendor flowchart

Paths

How to receive goods from vendor for consignment and VMI

1. Receive goods from the vendor for consignment and VMI under a purchase order.

How to create confirmation of goods receipt for consignment and VMI

1. Go to Purchasing and then click Process invoices received under Purchasing.

2. Click the Goods receipt control tab.

3. Click More actions and then click Configure list.

4. Add a new item in the filter and select Business transaction.

5. Select Consignment procurement and VMI procurement and apply the filter.

6. Review the list and references and select one or several Purchase order lines.

7. Click Register and select By receipt.

The system will automatically:

• Create a new document.
• Fill data on goods receipt.
• Set a reference link for the lines.

8. In the Vendor invoice document, click the Main tab.

9. Align header data with the source document.

10. Click the More tab.

11. Enter the Incoming document number and the issue date according to the vendor's details.

12. Align header data with the source document.

13. Click the Goods tab.

14. Edit the lines to align them with the source document.

How to post the document

1. In the Vendor invoice document, click Post and close.