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Canceling a Consignment Agreement for a Supplier

You can cancel a supplier’s existing consignment agreement. Canceling a supplier’s consignment agreement has the following effects:

•	New consignment supplier resources and prices cannot be created for the supplier.

•	Existing consignment supplier resources and prices are no longer available for use on work order requirements, requisitions, or purchase order lines. The consignment supplier resources are not deleted.

•	New consignment purchase order lines cannot be placed with the supplier.

•	Any existing open consignment purchase orders are closed.

•	Receipt transactions cannot be entered for the supplier’s consignment orders.

•	Materials cannot be issued from or returned to the supplier’s consignment inventory. Existing consignment inventory can be removed from inventory through inventory adjustment transactions.

After you cancel a supplier’s consignment agreement, you can reactivate consignment support. However, reactivating consignment support does not completely undo the updates that occurred when the agreement was canceled. Some items require manual action to undo the updates:

•	The supplier’s existing supplier resources and prices are available for use again.

•	Existing consignment purchase orders are not reopened. If any of the purchase orders need to be reopened, you can reopen them using the PO and lines’ reopen options.

•	Receipt transactions can be entered for the reopened purchase order lines and any new consignment orders placed with the supplier.

To Cancel a Consignment Agreement for a Supplier

1.	From the Site window, select the Purchasing view and then the Suppliers tab.

2.	On the Suppliers tab, right-click the supplier for which you need to cancel a consignment agreement and select Cancel Consignment Agreement (this option is only available for suppliers with active consignment agreements). The Cancel Consignment Agreement dialog appears.

3.	Select the Reason that you are changing the status of the supplier from the list and enter any relevant comments.

4.	Click OK. The consignment agreement is canceled.