Consuming goods from a Wholesaler Buffer Stock (WBS) inventory contract

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With this type of inventory contract the goods are owned by the supplier and physically located (externally) at the supplier’s warehouse site. The purpose of the contract is that the supplier promises to keep a certain quantity as a buffer for you, allowing you to be sure that the promised buffer always will be available.

If a Wholesaler Buffer Stock (WBS) inventory contract has been set up and initialized in your system, you can sell the promised buffer, that is physically stored at the supplier, to your customer via a back-to-back order. All other consumption related activities for the items managed by this type of contract must be triggered from the CMI process via the Work with inventory contract routine. For such a contract the following can be performed:

• Sell the goods via a BtB sales order
• Purchase the goods for your own replenishment
• Take over the ownership of the supplier-owned goods but keep the stock physically located (externally) at the supplier’s warehouse site
• Transfer to consignment

Sell the goods via a BtB sales order

When you want to sell from the promised buffer that is owned by the supplier and physically located (externally) at the supplier’s warehouse site, the sale will take place from a BtB sales order line via sales order entry but the order must be connected to the WBS inventory contract from which you want to sell the goods.

You can choose from the following to link the BtB sales order line to the WBS 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.
• If a sourcing policy was set up in your system, and it contains the warehouse used for WBS 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. Create your sales order and link the inventory contract to the line as per one of the choices above.

Click this link to expand and view the information that has been updated for the inventory contract after entering the BtB sales order line:

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 the BtB sales order line) Order line created (for the connected purchase order line) For those posts, the following is also listed: – The date they were created – The time they were created – Type of order (S for the BtB sales order and P for the connected purchase order) – Sales order number for the BtB sales order – Sales order type for the BtB sales order that was set up for this inventory contract type. The order type dictates the remaining steps in the Sales cycle. (Follow the remaining steps below). – Purchase order number for the connected purchase order – Purchase order type for the purchase order that was set up for this inventory contract type. The order type dictates the remaining steps in the Purchase cycle. (Follow the remaining steps below).	Reservations has increased and Available has decreased with the quantity on the sales order.	For the WBS-warehouse (for the Transit or Direct view that is accessed by clicking the Change view function key): Reservation and On order quantities have increased. For the Physical warehouse to which the WBS-warehouse is connected: Reservation and On order quantities have increased.	For the WBS-warehouse (for the BtB transit – Tick the Transit flag): On order and Reserved quantities have increased. For the Physical warehouse to which the WBS-warehouse is connected: On order and Reserved quantities have increased.

To process the order through the system, see Work flow for Back-to-Back (BtB) orders with transit delivery and Work flow for Back-to-Back (BtB) orders with direct delivery for instructions.

When the order line is received into your transit warehouse, the log file for the inventory line will be updated with the “Order line received” post. When the order line is pick confirmed, the log file for the inventory line will be updated with the “Order picked” post. The Disp not invoiced field will be updated with the quantity dispatched but not yet invoiced. When the order line is invoiced, the log file for the inventory line will be updated with the “Order line invoiced” post and the Disp not invoiced field will be reduced with the quantity that was invoiced. The following details for the inventory line will also be updated: On hand and Reservations quantity will have decreased and Consumed quantity will have increased.

Purchase the goods for your own replenishment

This process can be run when you want to use the promised buffer for your own replenishment, which means that you will physically bring the stock into your own Physical warehouse and become the owner of the stock. A normal purchase order will be created. When it resides in your own Physical warehouse you can sell the stock as you normally would for your own stock, without any connection to an inventory contract.

1. Select the Work with inventory contracts menu item.
2. Highlight the WBS-contract and click the Lines option.
3. Highlight the line and click the Purchase option.
4. You access the Create purchase order panel. Enter the WBS-warehouse in the Warehouse field. Keep the quantity as is or change to that applicable. You can choose to maintain the purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order. The WBS inventory contract is automatically linked to the purchase order line. Note: If anything on the purchase order is erroneous, you will access the panel where the error exists (Header or Line level) in the Work with purchase orders program after you click OK, where you will have to correct the errors and then click OK to create the purchase 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 post has been created: Order line created For this post, the following is also listed: – The date they were created – The time they were created – Type of order (in this case P for purchase order) – Purchase order number for the purchase order – Purchase order type for the purchase order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this Purchase procedure. (Follow the remaining steps below).	Reservations has increased and Available has decreased with the quantity on the purchase order.	For the WBS-warehouse: On order and Available quantities have increased. For the Physical warehouse to which the WBS-warehouse is connected: On order and Available quantities have increased.	For the WBS-warehouse: On order and Available quantities have increased. For the Physical warehouse to which the WBS-warehouse is connected: On order quantity has increased.

5. Print the purchase order document via the Print order option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
6. Print the reception note via the Reception note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
7. Receive the line. You must run through the reception note confirmation to progress the purchase order through the system and close it. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.)
1. Select the Work with receptions menu item.
2. On the Work with receptions, Receptions 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 to which the WBS-warehouse is connected, 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 was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

Catch weight handling
If the order line was flagged for Catch weight handling, you will access the Work with receptions, 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/purchase 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.

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 received For this post, the following is also listed: – The date they were created – The time they were created – Type of order (in this case P for purchase order) – Purchase order number for the purchase order – Purchase order type for the purchase order	On hand and Reservations has decreased and Consumed has increased with the quantity received.	For the WBS-warehouse: Net on hand and Available quantities have increased and On order quantity has decreased. For the Physical warehouse to which the WBS-warehouse is connected: Net on hand and Available quantities have increased and On order quantity has decreased.	For the WBS-warehouse: Available and On hand quantities have increased and On order quantity has decreased. For the Physical warehouse to which the WBS-warehouse is connected: Available and On hand quantities have increased and On order quantity has decreased.

You can sell from this purchased stock using the normal sales order entry routine as you would for any other item, without any connection to the inventory contract.

Take over the ownership of the supplier-owned goods but keep the stock physically located (externally) at the supplier’s warehouse site

This process can be run when you want to purchase the promised buffer (or a part of the buffer), but keep the goods physically located (externally) at the supplier’s warehouse site. Goods that you own that are located at the supplier’s warehouse require an inventory contract of type WDS. (An existing WDS-contract for the same supplier as on the WBS-contract must exist). A new inventory contract line will be added to the WDS-contract when this process is run for the WBS inventory contract line. A purchase order, which is linked to the WDS-contract, will be created. The purchase order will be used for financial purposes, but must also update stock on hand since the purchased goods have to be received for the WDS-warehouse that is set up in your system.

1. Select the Work with inventory contracts menu item.
2. Highlight the WBS-contract and click the Lines option.
3. Highlight the line and click the Ownership takeover option.
4. You access the Create ownership takeover (purch) order panel. Keep the quantity as is or change to that applicable. Enter the WDS inventory contract in the New invent contract field denoting the WDS-contract to which the quantity will be transferred. A new inventory contract line will be created for the WDS-contract. The warehouse for the purchase order created will be retrieved from the WDS-contract. You can choose to maintain the purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order. The WDS inventory contract is automatically linked to the purchase order line. Note: If anything on the return purchase order is erroneous, you will access the panel where the error exists (Header or Line level) in the Work with purchase orders program after you click OK, where you will have to correct the errors and then click OK to create the purchase order.

For the WBS-contract, click this link to expand and view the information that has been updated:

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)
The following post has been created: Ownership takeover If you transferred the entire remaining quantity for the inventory contract line (i.e. no available quantity exists), the following post has also been created: Contract line was closed For these posts, the following is also listed: The date it was created The time it was created	On hand quantity has decreased with the quantity that was taken over. Consumed quantity has increased with the quantity that was taken over. Available has decreased with the quantity that was taken over.

For the WDS inventory contract, a new inventory contract line has been created.

For the WDS-contract, click this link to expand and view the information that has been updated:

Log file for the line (WDS) (Highlight the line and click the Log file option)	Inventory contract line details (WDS) (Highlight the line and click the Display option)	Time axis enquiry	Warehouse balance enquiry
The following posts have been created: Contract line was created Order line created For those posts, the following is also listed: – The date they were created – The time they were created – Type of order (in this case P for purchase order) – Purchase order number for the purchase order – Purchase order type for the purchase order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this Ownership takeover procedure. (Follow the remaining steps below).	On purchase order has increased with the quantity on the purchase order for the takeover.	For the WDS-warehouse: On order and Available quantities have increased.	For the WDS-warehouse: On order and Available quantities have increased.

5. Print the purchase order document via the Print order option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
6. Print the reception note via the Reception note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
7. Receive the line. This must be done for your WDS-warehouse even though you will not physically receive the goods on the line (since they will physically remain at your supplier’s site but you own them). You must run through the reception note confirmation to progress the purchase order through the system and close it. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.)
1. Select the Work with receptions menu item.
2. On the Work with receptions, Receptions 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 WDS-warehouse, click the Select warehouse function key to change it to your WDS-warehouse.
3. What you choose to do next depends on the situation. It could be that not everything was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

Catch weight handling
If the order line was flagged for Catch weight handling, you will access the Work with receptions, 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/purchase 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.

For the WDS-contract, click this link to expand and view the information that has been updated:

This item and quantity is now available for sale like any other item and quantity that you own but that is physically located (externally) at the supplier’s warehouse site and must be done via the WDS-contract. See Consuming goods from a Wholesaler Deposit Stock (WDS) inventory contract for the CMI processes that can be run for this type of contract.

Transfer to consignment

This process can be run when you want to move the promised buffer that the supplier owns to your own warehouse site to sell on consignment. Goods that the supplier owns that are located at your warehouse require an inventory contract of type SCS. (An existing SCS-contract for the same supplier as on the WBS inventory contract must exist). A new inventory contract line will be added to the SCS-contract when this process is run for the WBS inventory contract line. A purchase order will be created. The purchase order, which is linked to the SCS-contract, will be a logistic purchase order (i.e. no bookkeeping transactions are created for this type of order, but the logistics handling with reception note, reception handling, QC routines and stock on hand update is the same). Since the supplier still owns the goods, no financial transactions will be created. The purchase order will be received as a normal reception since the goods have to be updated for the logical SCS-warehouse that is set up in your system, which is linked to a physical warehouse.

1. Select the Work with inventory contracts menu item.
2. Highlight the WBS-contract and click the Lines option.
3. Highlight the line and click the Transfer to consignment option.
4. You access the Create transfer to consignment order panel. Keep the quantity as is or change to that applicable. Enter the SCS inventory contract in the New invent contract field denoting the SCS-contract to which the quantity will be transferred. A new inventory contract line will be created for the SCS-contract. The warehouse for the purchase order created will be retrieved from the SCS-contract. You can choose to maintain the purchase order after creation by setting the Maintain order flag to YES. Click OK to create the purchase order. The SCS inventory contract is automatically linked to the purchase order line. Note: If anything on the return purchase order is erroneous, you will access the panel where the error exists (Header or Line level) in the Work with purchase orders program after you click OK, where you will have to correct the errors and then click OK to create the purchase order.

For the WBS-contract, click this link to expand and view the information that has been updated:

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)
The following post has been created: Transfer to consignment If you transferred the entire remaining quantity for the inventory contract line (i.e. no available quantity exists), the following post has also been created: Contract line was closed For these posts, the following is also listed: – The date it was created – The time it was created	On hand quantity has decreased with the quantity that was transferred. Consumed quantity has increased with the quantity that was transferred. Available has decreased with the quantity that was transferred.

For the SCS inventory contract, a new inventory contract line has been created.

For the SCS-contract, click this link to expand and view the information that has been updated:

Log file for the line (SCS) (Highlight the line and click the Log file option)	Inventory contract line details (SCS) (Highlight the line and click the Display option)	Time axis enquiry	Warehouse balance enquiry
The following post has been created: Order line created For this post, the following is also listed: – The date they were created – The time they were created – Type of order (in this case P for purchase order) – Purchase order number for the purchase order – Purchase order type for the purchase order that was set up for this CMI process and inventory contract type. The order type dictates the remaining steps in this Transfer to consignment procedure. (Follow the remaining steps below).	On purchase order has increased with the quantity on the purchase order for the transfer.	For the SCS-warehouse: On order and Available quantities have increased. For the Physical warehouse to which the SCS-warehouse is connected: On order and Available quantities have increased.	For the SCS-warehouse: On order and Available quantities have increased. For the Physical warehouse to which the SCS-warehouse is connected: On order and Available quantities have increased.

5. Print the purchase order document via the Print order option on the Work with purchase orders, Header view panel if the purchase order type was defined to print this document. Otherwise go to the next step (Print the reception note).
6. Print the reception note via the Reception note option on the Work with purchase orders, Header view panel. Note: Even though the purchase order type for this inventory contract is defined to print the reception note, it is only mandatory if you choose to receive the goods via the Work with receptions menu item, (which is described below). There are two other ways to perform a reception: 1. via the Receive replenishment line menu item, and 2. via the Work with purchase order reception menu item. The reception note printout is not mandatory if you choose those methods.
7. Receive the line. You must run through the reception note confirmation to progress the purchase order through the system and close it. (See About receiving goods for instructions regarding the three different routines that can be used to receive the goods. The Work with receptions program is described below.)
1. Select the Work with receptions menu item.
2. On the Work with receptions, Receptions 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 the Physical warehouse that is connected to your SCS-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 was shipped, requiring you to change the line quantity, or you can perform a full confirmation. Perhaps you need to define the zone/location of where to put the goods. Perhaps a batch ID needs to be defined. See Work with receptions for more information about the tasks available.

Catch weight handling
If the order line was flagged for Catch weight handling, you will access the Work with receptions, 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/purchase 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.

For the SCS-contract, click this link to expand and view the information that has been updated:

This item and quantity is now available for sale but must be done via the SCS-contract. See Consuming goods from a Supplier Consignment Stock (SCS) inventory contract for the CMI processes that can be run for this type of contract.

Related topics

• About consuming goods from Contract Managed Inventory (CMI)
• Consuming goods from a Customer Deposit Stock (CDS) inventory contract
• 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 Deferred Indent Stock (DIS) inventory contract
• About IBS Contract Managed Inventory (CMI)
• About processing Back-to-Back (BtB) orders