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Defining a Consignment Agreement for a Supplier

Before you can define consignment prices or start stocking consignment inventory, you must identify the supplier as having an active consignment agreement. This ensures that a consignment type purchase or price is not inadvertently entered for a supplier with whom you do not have a consignment agreement.

After you select the Activate consignment agreement option, the Activate consignment agreement dialog is displayed. On this dialog you can enter the reason for activating consignment support and a comment about the consignment agreement. This information is added to the supplier’s status change history for future reference.

To Activate a Consignment Agreement for a Supplier

1.	Select the site’s Purchasing view, Suppliers tab.

2.	On the Suppliers tab, right-click the supplier for which you need to activate a consignment agreement and select Activate Consignment Agreement. The Activate Consignment Agreement dialog appears.

3.	Select the reason that you are changing the status of the supplier from the list.

4.	Select the buyer who is responsible for the consignment agreement. The system uses this information to determine which approval routes are appropriate for approving consignment invoices.

5.	Enter any relevant comments in the Comment box.

6.	Click OK. The system now recognizes the supplier as a consignment supplier.

7.	If you haven’t already done so, you must create a consignment inventory group for the supplier. Each supplier that has consignment inventory must have its own inventory group. See Creating a Consignment Inventory Group for a Supplier.

8.	If the supplier’s inventory group and warehouse are set up, you can now select the resources that the supplier will provide and enter consignment prices for each resource. See Defining Consignment Resources and Prices for a Supplier.