Consuming goods from a Customer Deposit Stock (CDS) inventory contract

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With this type of inventory contract the goods are owned by the customer but physically located at your warehouse site.

If a Customer Deposit Stock (CDS) inventory contract has been set up and initialized in your system, all sales and re-purchasing for items managed by this type of contract must be done from and/or connected to the inventory contract depending on the procedure you want to perform. For such a contract the following can be performed:

• Dispatch the customer-owned goods to the customer and call off the dispatched quantity
• Re-purchase the goods from the customer

Dispatch the customer-owned goods to the customer and then call off the dispatched quantity

When the customer wants you to dispatch the goods that they already own, the call off has to take place in some way after the dispatch. You can do it using one of the following two alternatives:

• the CMI process (i.e. the Customer call off option on inventory contract line level)

  Or

• by manually creating the sales order (and sales order lines) and linking the CDS-contract to the sales order.

Either way, a logistic sales order will be created. All the lines will be set as free of charge and no financial transactions will be created.

1. Via the Customer call off CMI process
1. Select the Work with inventory contracts menu item.
2. Highlight the CDS-contract and click the Lines option to drill down to the inventory contract line level.
3. Highlight the applicable line and click the Customer call off option.
4. You access the Work with inventory contracts, Create customer call off order panel. Enter the quantity the customer wants to be dispatched. You can choose to maintain the sales order after creation by setting the Maintain order flag to YES. Click OK to create the customer call off (sales) order and return to the Work with inventory contracts, Lines panel. The inventory contract is automatically linked to the sales order line. Note: If anything on the sales order is erroneous, you will access Work with orders in error mode (Header or Line level) after you click OK, where you will have to correct the errors and then click OK to create the sales order.
2. (Or) Via manual creation of sales orders and sales order lines

Note: It is recommended to use the sales order type that has been set up for CDS-contracts. If you choose to use a different sales order type, it must be defined to update stock on hand, but must not update A/R, and it is recommended that the Pick list, Transport note and Invoice are printed. (Even though no financial transactions will be created, the invoice must be printed to set the order status to 60 and complete the order).

You can choose from the following to link the sales order line to the CDS inventory contract during sales order entry:

• Manually link the inventory contract on the Create new panel, the sales order header, alternatively on the sales order line. For the sales order line location, you can do this on the Order line, Main info panel, or on the Customer and item info, Line entry panel when creating a new sales order line using full entry mode (i.e. you clicked the Cust info function key on the Order lines panel). When such a reference is defined, the entered lines are validated against the inventory contract and the warehouse is retrieved from the inventory contract.

  A setting on the Inventory contract header controls the possibility to combine sales order lines (i.e. lines connected to an inventory contract and others not connected to an inventory contract) on a sales order when you define the contract number on the sales order header.

  If the Off-contract sales flag is set to YES, and the warehouse for the non-contract item is included and activated in your sourcing policy, a warning will be issued, (denoting that the item is not found on the inventory contract and that normal sourcing will take place), but you will be able to add sales order lines for non-contract items to the sales order as well as items from other inventory contracts.

  If the Off-contract sales flag is set to NO, an error message will be issued and it will not be possible to add a sales order line for a non-contract item to the sales order. It will also not be possible to add a sales order line for items from other inventory contracts. However, if this flag is set to NO and if the inventory contract is only defined on line level, it will still be possible to mix lines for this inventory contract together with non-contract items and/or items from other inventory contracts.

• Use the Inventory contract availability program. Click the Inventory contr availability program function on the Order lines panel. All contract lines with an available quantity for a specific inventory contract will be listed. The inventory contract can either be the contract which was referred to (on the Create new panel) when the sales order was created, or another inventory contract which can be defined on this panel. You can leave the quantity as is or enter the applicable quantity for the line and then select the line to create the sales order line.
• Enter a warehouse manually during sales order entry. When a sales order is created, it is possible to enter a default “From warehouse”. It is also possible to manually enter a warehouse on the sales order line panel. If the defaulted or entered warehouse is a CDS-warehouse, a search will take place to find the inventory contract automatically. This will be done even if auto-sourcing is not on for the sales order.
• If a sourcing policy was set up in your system, and it contains the warehouse used for CDS inventory contracts, and auto-sourcing is configured, you do not need to make a reference to the inventory contract during sales order entry. As a result of the auto-sourcing, the sales order line will be sourced using this inventory contract.
1. Select the Work with sales orders menu item.
2. On the Work with sales orders, Header view panel, add a sales order.
3. Create your sales order and link the inventory contract to the line as per one of the choices above.
4. On the Work with sales orders, Order lines panel, complete the mandatory information and click OK to create the item. The inventory contract is linked to the sales order line.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line (Highlight the line and click the Log file option)	Inventory contract line details (Highlight the line and click the Display option)	Time axis enquiry	Warehouse balance enquiry
The following posts have been created: Order line created For this post, the following is also listed: – The date it was created – The time it was created – Type of order (S for sales order) – Sales order number – Sales order type for the sales order that was set up for this CMI process and/or inventory contract type. The order type dictates the remaining steps in this Customer call off procedure. (Follow the remaining steps below).	Available quantity has been reduced by the quantity that is to be dispatched. Reservation quantity has been booked with the quantity on the call-off sales order line for the CDS-warehouse.	For the CDS-warehouse: Available quantity has decreased and Reservation quantity has increased. For the Physical warehouse that is connected to the CDS-warehouse: Available quantity has decreased and Reservation quantity has increased.	For the CDS-warehouse: Available quantity has decreased and Reserved quantity has increased. For the Physical warehouse that is connected to the CDS-warehouse: Available quantity has decreased and Reserved quantity has increased.

3. Print the sales order confirmation document via the Order confirmation option on the Work with sales orders, Header view panel if the sales order type was defined to print this document. Otherwise go to the next step (Print the pick list).
4. Print the pick list, either via the Pick list option on the Work with sales orders, Header view panel or via the Print pick list menu item.
5. Confirm the pick list for the Physical warehouse (to which your CDS-warehouse is connected). (See About pick list confirmation for instructions regarding the two different routines that can be used to confirm the picking. The Work with pickings program is described below.)
1. Select the Work with pickings menu item.
2. You access the Work with pickings, Pickings view panel. The warehouse defined for your user profile is defaulted if defined there. If a warehouse is not defined for your user profile, then the main warehouse from the DIS control file is defaulted. If it is not your Physical warehouse that is connected to your CDS-warehouse, click the Select warehouse function key to change it to your Physical warehouse.
3. What you choose to do next depends on the situation. It could be that not everything is ready to be confirmed, requiring you to change the line quantity, or you can perform a full dispatch. Perhaps you need to define the zone/location from where to pick the goods. See Work with picking for more information about the tasks available.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line (Highlight the line and click the Log file option)	Inventory contract line details (Highlight the line and click the Display option)	Time axis enquiry	Warehouse balance enquiry
The following post has been created: Order line picked For this post, the following is also listed: – The date it was created – The time it was created – Type of order (S for sales order) – Sales order number – Sales order type for the sales order	On hand quantity has been reduced by the quantity picked. Reservation quantity has been reduced by the quantity picked on the call-off sales order line for the CDS-warehouse. Consumed quantity has been booked with the quantity picked.	For the CDS-warehouse: Reservation quantity has decreased. For the Physical warehouse that is connected to the CDS-warehouse: Reserved quantity has decreased.	For the CDS-warehouse: On hand and Reserved quantities have decreased. For the Physical warehouse that is connected to the CDS-warehouse: On hand and Reserved quantities have decreased.

6. Print the transport note via the Print transport notes menu item if the sales order type was defined to print this document. Otherwise go to the next step (Print the invoice).
7. Print the invoice, either via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item. Even though no financial transactions will be created, the Print invoices routine must be run for a customer call off order. Running this routine sets the order status to 60 and completes the order.

Re-purchase the goods from the customer

This process can be run if for some reason the customer decides that he no longer wants the goods and returns the goods to you. The process will create a credit sales order, which will work in the opposite way as the supply deposit order. The ownership transfer routine will also be used for this type of order, moving the goods from the CDS-warehouse to a logical (Trade) warehouse that is linked to the same Physical warehouse.

1. Select the Work with inventory contracts menu item.
2. Highlight the CDS-contract and click the Lines option to drill down to the contract line level.
3. Highlight the applicable line and click the Re-purchase option.
4. You access the Work with inventory contracts, Create re-purchase order panel. Enter the logical (Trade) warehouse into which you will receive the goods. You can choose to maintain the (credit) sales order after creation by setting the Maintain order flag to YES. Click OK to create the credit sales order and return to the Work with inventory contracts, Lines panel. The inventory contract is automatically linked to the sales order line. If anything on the sales order is erroneous, you will access Work with orders in error mode (Header or Line level) after you click OK, where you will have to correct the errors and then click OK to create the sales order.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line (Highlight the line and click the Log file option)	Inventory contract line details (Highlight the line and click the Display option)	Time axis enquiry	Warehouse balance enquiry
The following posts have been created: Order line created For this post, the following is also listed: – The date it was created – The time it was created – Type of order (S for sales order) – Sales order number – Sales order type for the (credit) sales order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this re-purchase procedure. (Follow the remaining steps below).	Available (for the CDS-warehouse) has been reduced with the quantity on the (credit) sales order. On return order has been updated with the quantity that was returned.	For the Physical warehouse: Available quantity has increased. On order quantity has increased. For the logical (Trade) warehouse into which the returned goods will be placed: Available quantity has increased. On order quantity has increased.	For the Physical warehouse: Available and On order quantities have increased. For the logical (Trade) warehouse (into which the returned goods will be placed): Available and On order quantities have increased.

5. Print the sales order confirmation document via the Order confirmation option on the Work with sales orders, Header view panel if the sales order type was defined to print this document. Otherwise go to the next step (Print the pick list).
6. Print the pick list, either via the Pick list option on the Work with sales orders, Header view panel or via the Print pick list menu item if the sales order type was defined to print this document. Otherwise go to the next step (Transfer the goods to the logical (Trade) warehouse).
7. Transfer the goods to the logical (Trade) warehouse. You must now run the Confirm ownership transfer routine to transfer the goods from your CDS-warehouse (set up in your system) to the logical (Trade) warehouse (set up in your system).
1. Select the Confirm ownership transfer menu item.
2. You access the Ownership transfer confirmation, Repurchase panel. The CDS-warehouse from which you are moving the stock and the logical (Trade) warehouse to which you are moving the stock is displayed. Enter the following:

Transferred quantity

Either click the Full transfer function key to put the Suggested quantity from the contract line into the Transferred quantity, OR manually enter the desired Transferred quantity.

Enter the From zone/location and To zone/location. The From location can be selected via the Select from location option.

Accept the suggested quantity or manually enter the Transferred quantity and click the Confirm function key.

Catch weight handling
If the order line was flagged for Catch weight handling, you will access the Work with pickings, Catch weights panel where you must enter the catch weight quantity for the order line. (See About catch weight handling for price units) The Quantity to add field displays the quantity that must be reported. Multiple catch weights can be entered for one order line, allowing you to have a separate weight for each individual item. All catch weights are then accumulated to be the price unit quantity for the order line and will also be used to re-calculate the order line value. As you report the quantity, the quantity in the Quantity to add decreases and the quantity in the Total actual qty and Total CW quantity fields increases. If a variance limit percentage range was set up for the item/sales unit that is under catch weight handling, and the entered catch weight quantity exceeds the variance range limit that is set up, you will access the Override allowed CW variance panel where you must enter your signature ID and the security code for the signature to accept the exceeding quantity and continue with catch weight entry. When the entire quantity has been reported, click the Confirm catch weight function key to confirm the entered catch weight quantity(ies). A validation will be performed to check that catch weight has been entered for the entire quantity.

The goods are now moved from the CDS-warehouse to the logical (Trade) warehouse.

Click this link to expand and view the information that has been updated for the inventory contract:

Log file for the line (Highlight the line and click the Log file option)	Inventory contract line details (Highlight the line and click the Display option)	Time axis enquiry	Warehouse balance enquiry
The following posts have been created: Order line picked For this post, the following is also listed: – The date it was created – The time it was created – Type of order (S for sales order) – Sales order number – Sales order type for the sales order.	Available quantity has been reduced by the quantity transferred. On return quantity has been reduced by the quantity transferred. Consumed quantity has been booked with the quantity transferred. Disp not invoiced has been increased with the quantity transferred. It will be reduced after invoicing the re-purchase order.	For the CDS-warehouse: Available quantity has decreased. For the Physical warehouse that is connected to the CDS-warehouse: Available and On order quantities have decreased. For the logical (Trade) warehouse into which you moved the returned goods: On order quantity has decreased.	For the CDS-warehouse: Available and On hand quantities have decreased. For the Physical warehouse that is connected to the CDS-warehouse: Available and On order quantities have decreased. For the logical (Trade) warehouse into which you moved the returned goods: On hand quantities have increased. On order quantity has decreased.

8. Print the invoice, either via the Invoicing option on the Work with sales orders, Header view panel or via the Print invoices menu item. The Disp not invoiced field for the inventory contract details will be reduced.

Related topics

• About consuming goods from Contract Managed Inventory (CMI)
• Consuming goods from a Supplier Consignment Stock (SCS) inventory contract
• Consuming goods from a Logistic Supplier Consignment Stock (SCS) inventory contract
• Consuming goods from a Wholesaler Consignment Stock (WCS) inventory contract
• Consuming goods from a Wholesaler Deposit Stock (WDS) inventory contract
• Consuming goods from a Customer Buffer Stock (CBS) inventory contract
• Consuming goods from a Wholesaler Buffer Stock (WBS) inventory contract
• Consuming goods from a Deferred Indent Stock (DIS) inventory contract
• About IBS Contract Managed Inventory (CMI)