My Portfolio

Expense Item: Captive consumption of the organization   it will not be transferred (Stockable & Transactable ) to the inventory and hence  will   not hit the inventory valuation account . Inventory Item: it  will hit the inventory as well as inventory   valuation account  and it will be used in production of   finished goods.  Difference between expense item and inventory item Those Item that needs to maintain stock and tracking are inventory Items. Creating unique Item coding for each SKU's Non-Stock able Items that is direct IN & OUT, are expense items. For such items no need to create Item code for all. Only few codes can be created and in PR & PO description can be change For example Inventory items:  Machine parts, Raw Materials, Any Trading Items etc Expenses Items:  Assets, services, Projects, consumables (Office Stationery) etc. You cannot define an item as expense and inventoried at the same time. But you can define ...

Consigned Inventory:  Exists when inventory is in the possession of one party, but remains the property of another party (Manufacturer). Inventory physically at a customer site remains the financial possession of the vendor. The inventory is considered transferred when agreements specify it is physically consumed. The ownership transfer of the inventory can occur at the following places. Sub inventory transfer Back flush transactions Move order transfer Sales order pick Transfer of ownership transaction Inventory Setups:  After logging into INV responsibility do the following. Create a master item  (“ test_consigned_item “) with the following parameters. ( Items -> Master Items ) In the inventory Tab, please enable Inventory_Item, Stockable, Transactable flags. Reservable flag can also be turned on. In the BOM Tab, BOM Allowed flag is turned ON(My understanding is, this is an optional one). In the Costing Tab, “Costing Enabled” and “Inventory Asset Value” flags need to...

During a recent engagement with  a client using E-Business Suite R12 Project Manufacturing and R12 Inventory applications,   we encountered an issue with the handling of their inventory that they used in the production of their products and services to their customers. This company had a split of regular sales of production components that their customers used in the repair and replacements of their end products and in special services that were sold as a project. Due to this mix of both  project related manufacturing and the traditional discrete manufacturing,  the customer choose to keep the purchases of the materials segregated within their production facility. Purchases that were made to support a special project and task were received and stored in a separate location in the facility and then shipped to the customer site when all of the project’s product and services were complete. The dilemma occurred when they needed a specific component for a project and dete...