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Work with a vendor consignment warehouse

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A Vendor Consignment warehouse is a virtual warehouse where you track products that you hold on consignment from the vendor. Inventory remains in this warehouse until sold, and you do no not purchase inventory until sold.

Important
DDI recommends consulting with DDI Customer Care before adding or modifying any warehouse settings.

    1. Go to File > Company > Warehouse.
    2. Click New.
    3. The system assigns the next sequential warehouse code. Complete the Short Name and Address information.
    4. From the Warehouse Type list, choose Consign From Vendor. The Consign From Vendor Options appear.
    5. In the Consign Whse box, click and choose your primary physical warehouse, or whatever warehouse will store the vendor's stock.
    6. Make sure the Post to G/L check box remains cleared.

    7. Click Save.
    1. Go to Inventory > Inventory Adjustment.

    2. In the Initials box, choose your initials.
    3. In the Warehouse box, choose the vendor consignment warehouse that you just created.
    4. Select Adjusted as the Type. (You may also use physical.)
    5. Click Add Line Item and add the products and quantities that you want to store as part of the vendor consignment. See Adjust inventory quantities.
    6. Adjusting Inventory into the consignment warehouse will not make a general ledger entry.
    7. Click Save.

      You can now enter sales orders pulling inventory from this warehouse.

  3. When you enter a sales order for an item on the consignment, you will order from the selling warehouse. If this warehouse has insufficient inventory, Inform will pull from the Vendor Consignment warehouse.

    When you add this product with inventory split between the two warehouses, you will see a message informing you how much inventory will be pulled from which warehouse.

    Note that Inform will always backorder from the physical warehouse; not the vendor consignment warehouse.

  4. At the end of the month, week, or whatever the agreed time between the Company and Vendor have for replenishment, run the Inventory > Inventory Transactions Report for the consignment warehouse. This report shows all sales and transfers made from the consignment warehouse.

    When the Vendor confirms which items have been sold and at what prices, they will provide you with an AP Invoice.

    When the AP Invoice is created, it will not be linked to a PO; therefore, it is important to know that after saving, the GL distribution will go to Non-Inventory, rather than Inventory (If a Non-Inventory GL is set up on the Control Table).

    If you are using a Non-Inventory GL, the last step after entering the AP Invoice is to enter a Journal Entry (Accounting > General Ledger > Journal Entry) that will take the value out of Non-Inventory, and put it into Inventory.

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