The consignment process in Oracle EBS R12 is having a white space in linking consigned and consumption PO due to which suppliers find it difficult to raise invoices/ do reconciliation against the correct consumption PO in the iSupplier portal or in other systems. Additionally, there is no separate PO number sequencing for consumption PO which makes it difficult for suppliers as they might use a different system for invoicing. Moreover, prices may change at the time of invoicing, and we need to adjust it in the PO in certain conditions. A custom logic needs to be added so that the consignment process in R12 can address this gap. This blog describes how a utility tool and reporting mechanism can be leveraged to tag consignment and consumption POs based on First Consignment-<tie to>-First-Consumption logic. This will help Buyers / Suppliers to reconcile Consumption and Consigned PO’s.

Business Consignment Current Process

Process/ Data Flow
Consumption Consignee Linking Utility

Consignment and Consumption Report

Consigned and Consumption PO data would be exported by BI utility tool from the backend into Excel and placed over in a network location. This BI utility tool will run on user demand.

Based on First Consignment-<tie to>-First-Consumption logic we are tagging Consignment PO with Consumption POs and listing on this report. This report helps in reconciling both Consumption and Consigned PO’s, taking Supplier, Supplier Site, Item and Consigned and Consumption Organization Code into consideration.

There are two concurrent programs – one to load the necessary data and the other to generate the report. The concurrent programs are designed in such a way to accommodate the ease of generating the report based on the input parameter given while submitting.

PO Consumption Consignee Linking Utility
When the program is run, it loads all the data related to the consumption and consignment purchase orders and links both accordingly based on the FIFO basis considering the creation date of the transaction (for consignee it will be receipt deliver transaction date and consumption it is po shipment creation date). Once the data is obtained, it is stored in the custom staging table for further usage.

Consignment and Consumption Report
When the program is run, it gathers the required data from the custom staging table based on the input parameters and generates the report. The report can be seen in the output once the program is successfully run.

Consigned and Consumption PO data would be exported by BI utility tool from backend into excel and place it over some path. On user demand, BI utility tool will run. This report helps in reconciling both Consumption and Consigned PO’s. We will tag consignment POs with Consumption POs on First-In-First-Out basis. Consignment PO and Consumption PO will be linked with the following:

1.         Item number

2.         Organization code

3.         Vendor Name

4.         Vendor site code

5.         Consigned and Consumption Plant Code

Input parameters

Output: Showing links between Consignment and Consumption PO

Below are the specific business needs that will be handled as part of this:

·         Consigned PO receipt Quantity and Consumption PO Quantity will have same value.

·         Multiple Consigned and Consumption POs linkages.

·         Consigned PO Cancellations.

·         Partial Receipts.

·         Corrections in PO after receiving.

·         Return to Consigned or Return to Vendor.

Conclusion
The solution brought in the following business benefits by streamlining processes:

·         Consignment-led procurement allows organization to optimize efficiency, cost savings.

·         It automated the entire procurement cycle from purchase order, Inventory cycles, throughput till settlement with supplier.

·         Buyers become more productive by eliminating repetitive transactions.

·         Oracle iSupplier Portal lets you collaborate online with all your suppliers via a web browser.

·         Helped related processes like VMI, other catalog purchases.

·         Business started using transactions like Sales Order issues, Backflush, Inter-organization transfers, Miscellaneous issues etc. in a more effective way.

·         The solution is scalable and can be secured via custom profile for specific orgs.