Consignment Inventory - Customer provides materials for a Job

You must use Unique Item IDs

The most important principle for handling consignment items is that you use unique item IDs for these components.  If you mix these items with standard items you will ruin the inventory value in the system when these zero dollar items are averaged with quantities that do have value.

Consignment Processing

  1. Set up the Customer providing the materials as a Supplier 
  2. Create unique Item IDs for these consignment items from this Customer/Supplier
  3. Consider creating a special Item Category for these consignment items.  You may want to create an Item Category per Consignment Customer if you have multiple customers providing materials.
  4. Set the lead days as the typical procurement time to get these materials from this Customer/Supplier
  5. Set the Price to a Zero Price
  6. Add your consignment items to your Bill of Material just like standard components
  7. MRP will suggest a PO (with zero prices) to the Consignment Supplier when a Job is created for these components
  8. Receipt the PO and issue to the Job like a regular component
  9. PO Invoice match the zero price components to process the zero dollar invoice