Overview

After receiving VMI, the company initiates business activities to consume VMI:

• For production activities
• For non-production activities
• For selling to third parties

Over a certain period of time, the company regularly generates a notification about VMI consumption for the vendor.

The notification schedule is agreed with the vendor in advance. For example, the vendor might agree to get notifications weekly or monthly.

Notifications only include information on the consumption of inventory that belongs to the vendor.

The vendor issues invoices to the company. The company receives and processes the invoices.

As a result of the process, the notification about VMI consumption is issued to the vendor, and a vendor invoice is processed.

Notify vendors about VMI consumption and process vendor invoices flowchart

Paths

How to review actual VMI consumption notifications

1. Go to Purchasing, click Purchasing reports, and then open the Vendor-managed inventory report under Purchasing.

2. Set a Period.

3. Select a Company and an Owner.

4. Generate the report.

5. Review the To redemption column.

6. Save the report.

Paths

How to send VMI consumption notifications to vendors

1. Send the saved report to the vendor.

2. Use any communication tools: phone, email, mail, a self-service portal, or interfaces with external systems.

3. Record this communication in Business Interactions.

4. Remind the vendor to issue an invoice for the current (billable) inventory consumption.

How to register vendor invoices for VMI consumption

1. Receive the requested invoice from the vendor.

From the workplace

Paths

1. Go to Sales and then click Purchase invoices — VMI to register under Subcontracting service delivered.

2. Select a Period, a Material provider, a Company, and a Warehouse.

3. Review the list of references, select one or several references, and click Create document.

From the list form

Paths

1. Go to Purchasing and then click Purchase documents (all) under Purchasing.

2. Click Create and select Purchase invoice — VMI.

How to fill vendor invoice header data

1. In the Purchase invoice — VMI document, click the Main tab.

2. Select a Vendor, a Counterparty, a Company, and a Contract.

3. Click the More tab.

4. Select a Price type if required.

5. Enter a reference Number and a date according to the source document.

6. Select an Incoming document name.

7. Fill the other required fields.

How to fill vendor invoice item data

1. In the Purchase invoice — VMI document, click the Goods tab.

2. Review the lines filled automatically.

3. Click Fill in prices → By vendor price type.

4. Review and correct the Price column.

5. Select a VAT rate column value for each line.

How to post vendor invoices

1. In the Purchase invoice — VMI document, click Post and close.

How to create payment requests

1. In the Purchase invoice — VMI document, click , and select Payment request.

The system will automatically:

• Create a new Payment request document.
• Fill it with data from the reference document, including Amount and an AP/AP object.

2. In the Payment request document, click the Main tab.

3. Fill the required fields. Pay special attention to the following items:

• Payee and their details
• Required Payment date
• Cash flow item
• Amount

4. Fill the Purpose of payment automatically or manually.

5. Define the document Priority.

6. Set the Opened status.

7. Post and close the payment request.