We have recently implemented Consigned Inventory process on a pilot basis with one of WH1 Vendors. As per the consigned process Supplier will store the material in Vendor Hubs based on ASCP demand. Vendor Hubs are identified through oracle subinventory which is non asset subinventory. Vendors are responsible for accountability of the material until they store in vendor hubs.
When the actual requirement comes from WH! warehouse then the material will be transferred from Vendor Hub to WHI through regular transaction types either Subinventory Transfer or Move order transfer. Then oracle program Create Consumption Advice run and release the Blanket Release which will be used to make the payment to vendors for the material transferred to regular. There is a gap found in this process in terms of pricing. When Vendor stores the stock in Vendor Hubs, there could be a chance for change in BPA price based on the quarterly cost update. After the price update, material will be stored with new price in Vendor Hubs along with the stock with Old price. So when transfer to regular happens then system should pick old stock with old price and new stock with new price during payment to vendors. But this functionality is a gap in Oracle and it always takes the new price even for the item stored with old price. We need to develop a mechanism with &lsquo
;Create Consumption Advice program to validate the price of Vendor Hubs stock already transferred to regular, and then this program should release 2 or multiple BRs based on price level grouping. So that business can make payment to vendors for appropriate value.
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