Hello,
We have a customer (also a vendor) that has consolidated a lot of their sourcing into my company, and with it, they have had all the raw materials used at those companies shipped to us. We agreed to warehouse but not pay for those materials until we need them to produce their parts, and then we would pull quantities and issue them a PO and pay for the amounts we need. This has been working fine, but I would like to explore storing these raw materials inside a Consignment warehouse.
In order to do this, I am forced to enable the "Cost items at warehouse" option in Inventory Parameters. This is a non-reversible change, and I'm leery of doing this without more information. The Syteline help topic on this field does not mention anything that seems to be earth-shattering in terms of change for us, but I wonder if there are other repercussions that the help topic does not detail that I should take a deeper look into first? Does anyone have any insights into the use of a consignment warehouse and what its overall effects are?
My plan would be to only store the raw materials in that warehouse, and issue a PO against it, if that is possible, and be able to then receive that PO into our MAIN warehouse.
The biggest reason for wanting to do this is because the current consignment inventory we have is almost 2 years old and still not consumed, so I have 2-year-old open PO's that I would rather not have on our books.
If anyone can give more insight before I make this change, I would really appreciate it. Thanks!
Kirby Baker
