Buy-out and aging

An ownership change buys vendor consignment stock into your own inventory without selling it. Use it when you want to keep stock that has been with you for a long time, or when you need the stock for something that only works with your own inventory: production, assembly, projects, warehouse picks or native reservations.

What an ownership change posts

When you post an ownership change, the app:

1. creates a purchase order to the vendor at the same location and bin, with one purchase line per document line and one item tracking line per serial, lot and package number it buys. The price comes from the vendor's purchase price list or, for Percent of Sales Price vendors, the vendor share;
2. posts the purchase order as Receive, so the units enter your inventory as normal item ledger entries;
3. writes Ownership Change entries that remove the units from the vendor's consignment stock.

From then on the units are your own stock. The purchase receipt is invoiced through the same settlement as consignment sales. See Settle with vendors.

Buy out stock

1. Search for Consignment Ownership Changes (or choose Consignment > Documents > Consignment Ownership Changes on the role center) and choose New. The new document is an ownership change. From Consignment Documents, choose New and set Document Type to Ownership Change instead.
2. Enter the Vendor No. and the Location Code.
3. Choose the stock: Get Consignment Stock, or enter the lines with the item, bin and quantity, and their serials or lots on Item Tracking Lines. Get Consignment Stock puts the chosen serials and lots of an item on one line as its item tracking lines.
4. Choose Post. The posted document in Posted Consignment Documents shows the Purchase Order No. that was created and the Purch. Receipt No., with actions to open them.

Buy out part now

An ownership change can be posted in parts, for example when you buy only some serial numbers of a line now. Lower Qty. to Handle on the line and, for a tracked item, set Qty. to Handle (Base) on Item Tracking Lines for the serials or lots you buy now; their total must equal the line's Qty. to Handle. Posting buys only that part, with a purchase order of its own. The document stays open with the rest: Quantity Handled shows what is bought, and Qty. to Handle proposes the rest. The last posting deletes the document.

Buy out automatically when stock is consumed

With Buy Out at Consumption on, you do not need to post the ownership change yourself before production, assembly or a project uses vendor stock. When you post a consumption journal or production journal, when components are flushed, when you post an assembly order, or when you post project usage of an item, the app checks the location of each line:

1. If your own stock there covers the quantity, nothing changes.
2. Otherwise the missing quantity is bought out of the vendors' consignment stock at that location and bin, with the same serial, lot and package numbers as the line. Without serial or lot numbers on the line, the oldest stock is taken first (the earliest expiring first when Auto-Assign Tracking is FEFO). Stock committed to consignment sales lines and blocked lots or serial numbers are never taken.
3. One ownership change per vendor is created and posted, exactly as if you had posted it yourself: purchase order, purchase receipt waiting for settlement, and Ownership Change entries. The consumption then uses the bought-out stock.

The posted ownership change shows the Consumption Source (Production, Assembly or Project) and the Consumption Source No., and its External Document No. is the document number of the consumption.

Turn it on in Consignment Setup with Buy Out at Consumption. On the vendor card, Buy Out at Consumption can be Use Setup, Yes or No, so you can allow it only for some vendors or exclude a vendor whose stock must always be bought out by hand.

Undoing or reversing the consumption does not undo the buy-out: the units come back as your own stock.

Aging rules

Each consignment vendor can have an aging rule in the Consignment group of the vendor card:

Field	What it does
Aging Period	How long the vendor's stock can stay on hand before the aging action applies, for example 90D
Aging Action	None: nothing happens. Notify: you get a notification and a role center cue. Propose Ownership Change: an ownership change is proposed for the aged stock. Propose Return: a return to vendor is proposed

The fields can be changed only for a consignment vendor.

Age is measured from the Received Date of the stock: the date of the original consignment receipt. Transfers and customer returns keep this date, so moving stock does not reset its age.

Choose Run Consignment Aging on Consignment Setup or Aged Consignment Stock to check now, or Schedule Aging Job on Consignment Setup to create a job queue entry that checks the open stock of each vendor with an aging rule. Proposed documents are created with status Open for you to review. The job never posts anything by itself. The Aged Consignment Stock cue and notification point to the stock that is due; choose Don't show again on the notification if you only want the cue.

To review proposals:

1. Open Consignment Ownership Changes or Consignment Returns to Vendor (both are also actions on Aged Consignment Stock).
2. Check the lines, remove what you want to keep on consignment, and post.

See aged stock yourself

Open Aged Consignment Stock for the entries that are older than their vendor's aging period, or run the Consignment Aging and Expiry report at any time. The report puts the stock that is open now into four age buckets since receipt and marks stock that expires soon; its Aging Date changes only how age is counted, not which stock is shown. For stock at an earlier date, use the Consignment Stock Report. See Find entries and reports.

Limits

• Without Buy Out at Consumption, production, assembly and project consumption of vendor stock needs an ownership change first. At Warehouse Mode locations it always does.
• An ownership change cannot receive stock at a location with directed put-away and pick. Move the stock to another location first.
• At a normal vendor consignment location, vendor stock is not handled by warehouse documents. Use Warehouse Mode at locations that need warehouse receipts, picks and shipments; there a buy-out is a transfer order to a location of your own.

What's next

Manage your own stock at customer sites: Customer consignment.