How to Return Consigned Item After Consumption?

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In this Document

Goal
Solution
References

APPLIES TO:

Oracle Inventory Management - Version 11.5.10 to 12.1.3 [Release 11.5 to 12.1]

Information in this document applies to any platform.
FORM:RCVTXERE.FMB - Enter Returns GUI

GOAL

How to Return Consigned Item After Consumption?

SOLUTION

The problem is that the original item was originally received via a standard PO into
Consigned inventory. When the item was then consumed, the consumption release was kicked
off and the Consumption Advice Invoice created. There is no link between the 2 documents
(the standard po and the consumption advice release) as Document Reference (such as
contracts and price lists) are not permitted on orders for consigned material.

So now in Consigned Inventory there does not exist enough "on hand" in Consigned
Inventory. So what you will need to do is as follows:

1. Perform a Miscellaneous Issue to get the item out of regular inventory

a. Using INVENTORY responsibility:
b. Nav > Transactions > Miscellaneous Transactions > Miscellaneous Issue
c. Perform Miscellaneous Issue

2. Do a Miscellaneous Receipt to get the item in and then perform a Transfer To Consigned
a. Using INVENTORY responsibility:
b. Nav > Transactions > Miscellaneous Transactions > Miscellaneous Receipt
c. Perform Miscellaneous Receipt
d. Nav > Inventory > Transactions > Consigned Transactions
e. In Consigned Transactions form then perform Transfer to Regular

3. Then you will have quantity "on hand" in consigned inventory to perform a Return
4. Then perform the Return in the Receiving Returns form

5. Then you will need to perform a credit/debit memo to address the billing and accounting as
there is no accounting event associated for consigned receiving per functionality because
financial liability is deferred until ownership is transferred to your organization via the
consumption process.

Per the Oracle Inventory Consigned Inventory from Supplier Process Guide, Release 11i, Part
No. B10483-02 page 2-7:
You can return consigned materials to the supplier at any time. The return to vendor (RTV)
process is same as that for regular material. No accounting entries are generated for consigned
RTV transactions. However, if it is to be returned to the supplier, then any consumed material
must be transferred back to consigned stock

So you have to get the material back into Consigned Inventory...then perform the return.

This is based on development feedback per bug 8315585 and bug 8443014 who informed:
"The only way is to receive consigned material directly via misc rcpt form by changing the
owning party and then try to return it to vendor."

Further information of possible interest is available on the following note:

- Note: 406390.1 - FAQ: Using Consigned Inventory / Consumption Advise / Vendor

Managed Inventory (VMI)