Reputable Poster
Hi all!

A client wants to keep vendor owned inventory in stock and only pay then vendor when goods are shipped/invoiced to customer

The products need to be picked/packed together with other deliveries to same customer so cannot be set up as direct ship. However, we can hold the products in a different branch

Also, the client would like to hold the inventory with a cost as they require correct COGS accounting entries for the sales orders. The cost would be the same as supplier price against the vendor

I thought of using receipts routing to achieve this but the problem is that we cannot allow the inventory to go negative (The client uses average costing so negative inventory cannot be allowed and is turned of in all versions of P4205/P4312/P411x)

I would appreciate any tips and pointers on how to achieve this.
I was wondering if there is a "pay when paid" function for distribution or if we need to go for a customized solution.. like holding payments to supplier until goods are shipped (releasing tge quantity/amount by a custom UBE as products are shipped)

E1 9.0



It sounds like me as 'Consignment Process'.I believe you can cover this requirement by creating 'Transfer Order'.
Sales side for real Customer and Purchase side from Vendor (who actaully owns inventory).But in E1 we don't have
any standard report that creates Transfer Orders having huge volumes ,so it is better to modify R47011 to create
Transfer Orders for your requirement.Am writing this process assuming that you would create 'Transfer Orders' for only vendor owned inventory but not for other inventory which client owns.


Active Member
Yes, we also use a custom solution to satisfy this consignment process requirement. However, I would like to warn you that the standard R47011 program does not have the ability to create transfer orders. Since F47011/12 files dont have any place to hold the "transfer to" Branch, you cannot create ST/OT orders in BATCH mode using R47011. It would have to be entirely custom solution.



Yes..we have modified EDI. BSFN which is used in R47011 to create transfer order by using. F47012.URRF field for "To Branch blant" successfully.


Reputable Poster
Thanks for you comments. I think the transfer order approach is probably doable but we receive orders using different channels (EDI, BSSV, Manual) so that would complicate things for us

I will look into a custom solution. I'll see if we can split and release the receipt records in F43121 to match against a supplier invoice based on what we have sold of the inevntory

1. Receipt the goods to warehouse but "hold" the receipt in F43121 so it cannot be matched to supplier invoice. Use a different G/L class so we can separate the value from "normal" inventory

2. As we sell product, update F43121 every night to split and "release" receipts in F43121 to voucher match

3. Generate a report based on the "released" receipts and create a supplier invoice (self billing) to pay for these

Obviously, we need to make sure the supplier invoice does not have any price differences vs. the receipts as this would affect average cost