Hey Everyone,
We have been live with 3 perpetual consignment inventories for a bit over a year now. Overall, it works well. A consignment that was once loosely managed, is now managed within our ERP which comes with many benefits. We use the consignment flag on the item location and also use a special GL account for the inventory items.
Our finance team has had a few concerns:
- A balance lives on the G/L, but the consignment is not owned. The inventory balance should be zero, but with the way Infor configures it the balance floats negative after the items are issued and then zeros out after the item is received. Could there be an easy way to maintain this at zero?
- How to reconcile the inventory. Our finance team is very insistent on being able to tie the balance to a report. That's challenging because the balances are negative and do not tie to the actual product on the shelf. One of the ideas I had was to use the Difference between ROP and SOH to get the amount used and requiring replenishment. This would be a negative balance. However, give a few errors by the team managing the inventory and then you get a difference between that total and the G/L total. The next question is do we try to reverse/fix the errors or can a G/L entry be made to true up the G/L. The consignment GL would get adjusted, but then what account would be used as the offset?
Interested if any of you have a consignment inventory in Infor and how you handle these two subjects.
Thanks,
Ben
