hey hello everyone and welcome back to our Dy Erp channel so in this new episode we will discuss about the consignment Warehouse process in Microsoft Dynamics 365 finance and operation so uh in this episode we first discuss about the business process like what is the consignment Warehouse in which scenario we will utilize this uh Consignment warehouse and then after this we will see the demo in the for finance and operation how we can uh utilize this Consignment Warehouse process within the dhif fno system so let's first start with the business process so what is the consignment Warehouse first we'll see what is the consignment Warehouse process and then we'll discuss about the what is Consignment Warehouse so the consignment Warehouse process is the business Arrangement between the company or organization and with their supplier so where this our supplier is storing their uh inventory stock uh within the companies or organization's uh warehouse location physical warehouse location so this warehouse location called as a consignment warehouse location so let's say you have we have the supplier ABC we storing our stock within the usmf company's uh Consignment Warehouse so in this scenario we'll call this whole process as a consignment Warehouse process so here the advantage of this Consignment Warehouse is organization has the access of the inventory of the supplier or vendor so the organization not paying any uh money upfront or he won't doing any payment for the inventory receive upfront until he sells that particular inventory to the End customer this whole process called it as a consignment Warehouse process so here's the win-win situation for the both parties first organization will get the free access to the inventory which is not paying any upfront money and at the same time vendor reducing their holding cost because the physically he is not storing any stock in their own physical location it's all stored on the organization location so he's storing all the stock physical location of the retailer so he reducing the inventory holding cost so here we have completed the business process of the consignment wouse process so in the next step we'll see how we'll do this whole process in Microsoft Dynamics 365 finance and operation system so before moving uh to the demo part first we have some prerequisites set up to complete in Microsoft Dynamics 365 so let's first discuss the setups prerequisite setup and then we'll klickly jump into the demo so uh our first prerequisite is creating a release product with the enable owner tracking Dimension I'll show you that whole process uh in the system how we can create a new product with the tracking Dimension owner uh next important setup is of course choose the vendor who is acting as a consignment vendor like who is a supplying a consignment stock to us and the last we need to set up the inventory ownership within the system so once we done all these three setup we'll perform the consignment Warehouse demo so let's move to the system and first complete the prerequisite for this consentment Warehouse process so our first prerequisite is creating a new release product within the owner tracking Dimensions so for this we check the tracking Dimension is created in the system or not because I'm using the Microsoft data so most usually the tracking Dimension is already created but if if you are using the new system where the tracking Dimension owner is not created I'll show you the path how you can create that tracking Dimension within the system so for this we navigate to the product information management parameter collapse all inside the setup we have Dimension and variant group here we have the option of tracking Dimension groups so here you can see that as I said it's already created in the Microsoft data in your case you can directly click on this new button if this Dimension is not created you just click on this new Option and uh enter their name description and make sure this owner option is active owner parameter is active in your new tracking Dimension and the physically inventory and the financial inventory is also active so here we have done with the tracking Dimension group let's assign this new tracking Dimension group let's assign this tracking Dimension group to the release new release product so for this we again navigate to the tracking D product information management module so if if you are beginner and if you are not aware about how to create a product or what is tracking Dimension so you can check out our previous episode in the product D Information Management module I have already create multiple videos on this you can also check out that or I'll add the videos in the eye button so next we navigate to the release product section inside the product release products so here we'll create a new release product so for this example I enter the product number as a n enter the product name can just enter the wheels the retail category I just select R category any retail category uh next important part is the item model group so whenever you are using the item for the consignment Warehouse process you need to make sure that you select the moving average uh as a item model group if you are instead of selecting the moving average if you are select any other option system will give you an error so here I'm selecting the item model group as a moving average item group is any it's not in big things in the storage Dimension I'm selecting the site and warehouse and the last important part is the tracking Dimension group so in that scenario we are using this item for the consignment Warehouse so I'm selecting this tracking Dimension group is a owner the last is let's select the in units for with okay and I'm not entering the price over here for this we'll create a new trade agreement so let's click on okay our new release product is created now so here we have created a new release product wheels for this Consignment Warehouse process and we have selected the tracking Dimension group as a owner so next part is creating the trade agreement purchase trade agreement for this a new item but before creating the new purchase trade agreement we need to uh select the vendor for which vendor we are use particularly use for this Consignment Warehouse process so I just duplicate this tab again go to the procurement and sourcing module here in the vendor section I select the all vendor option uh so for this demonstration I'll choose the first vendor so I just copy this vender account go to the release product inside the purchase tab we have that option to create a trade agreement so I just click on this create Trade Agreement click on this new here I select the price adjustment click on this line in the account selection first we'll select the vendor in the account selection I just paste this in the item relation we'll select our new item which we created for this consent Manos process and the last is in the amount in currency we'll enter the amount so here we we have completed our trade agreement so even if you're not aware about how to create a trade agreement and what is the trade agreement uh then you can also check out my previous episode where I have detail explain about the trade agreements from for purchase price sales price discount journals and all this process so you can just check out that videos I'm not explaining this over here just post this journal so we have posted a journal now just let's go back to our item and quickly validate if we have missed anything no so we have completed our first prequisite uh creating the new item with the tracking diamension of owner and we have also completed our second prerequisite is selecting the vendor so we have uh selected this uh one1 uh vendor for this uh Consignment Warehouse process and the last thing is we need to set up the inventory ownership so for this I just close again go back to uh Inventory management module inside let me first see the inventory management module yeah so here is the inventory management module let's collapse this all inside Inventory management inquiries and reports tracking Dimension and the inventory owners so here we have that inventory owner option so here you can see that two owners is already added but our new vendor is not there which we use for the consignment warehouse and the third our Company ownership is already uh created if it's not there in your system just simply click on the new and select uh your current legal entity under which you are using this Consignment Warehouse process so here I'm just uh creating a new ownership of our for our vendor so just again copy this vendor account and paste over here yeah so that's it for this uh prerequisite we have completed uh all three prerequisite create a new item with the ownership tracking Dimension select the vendor and uh assign the ownership for this vendor so let's start with our uh demonstration for this uh Consignment full Consignment Warehouse process so now let's start into the consignment process in uh Dynamics 365 finance and operations so which means that we receive First Consignment inventory from our vendor to um our Consignment warehouse location so for this we navigate to the again navigate to the procurement sourcing module so under this we have the section of Consignment so uh we'll first choose the consignment replenishment order so we create first replenishment order to receive the stock from the vendor location to our uh Consignment warehouse location so for this we click on this Consignment replenishment orders so let's first create a new replenishment order so here just simp please select the vendor which we are going to use for this Consignment Warehouse process and that's it just click on Save here we also have that option to select site and Warehouse if you are not selecting the site and warehouse at the time of creation then you can directly select this site or location inside the line level so I'm just selecting over here uh so for this demonstration I'm selecting this uh Warehouse 12 for this Consignment warehouse but uh you can directly select your Consignment Warehouse so I'm con now I'm considering this 12 Warehouse as a my Consignment warehouse but in your scenario you can create a new Warehouse as a consignment Warehouse in the system and directly receive that stock in your Consignment Warehouse so we just click on this okay option so our new Consignment replenishment order is created now we'll add the line item in that order so we click on this add line option and select our new item which we have just created uh not this one okay and the item name is selected next step is select the quantity which we're going to receive at our Consignment Warehouse process and just save this option so here our new or Consignment order is created so when vendor ship their stock from their location and we receive our stock in the at the time of Consignment in the consignment warehouse location so at the time we'll do the product receip so for product receip we click on this product receip option here we also have that option to internal uh external product receip so here we have enter the reference number which is sent by the vendor on the delivery note for this demonstration select the any random number uh the next step is we'll select the quantity if vendor sent only 50 quantity in the first slot you can uh change the quantity over here so I have receive the 100 quantity so I'm assuming this 100 quantity is received in the first shipment so I just click on this okay so our product receipt is done so in the next step I'll show you the uh onand inventory of this item now so for this I just copy the item number again go back to our duplicate tab inside the module can go to our product information management module release products filter our product in the manage inventory section we have that option of onand inventory so here you can see that our new product Wheels first We'll add the site warehouse and the is the option of owner yeah so in the tracking Dimension you have that option of owner so I selected that option save this setup and click on okay so here you can see that under our new wheel item under site Warehouse 12 which is which we are assuming as our Consignment Warehouse uh 100 item is received but you can see that in the ownership section it sh showing the ownership as a vendor because it's still we have not paid any amount of front and it's still under the ownership of our vendor even it's physically located all the stock in our inventory it's still owned by the vendor not our organization so this stock of 100 is not part of the inventory cost calculation or moving cost calculation of our organization because it's owned by the vendor so uh so in this process we'll see how a consignment replenishment order is created and how we receive the stock so in the next step our organization usmf legal entity find the customer who is ready to buy the 60 item of that wheel so now here our usmf company is decided to consume that stock which is there in our Consignment Warehouse um so this cons so to First consume this stock first I need to transfer this ownership from our vendor to the usmf legal entity because now I had decided to consume that and sell it to the our new custo sell it to our customer so for this ownership change from the from vendor name to the organization name uh we have that one Journal which we need to post so to to see this process we again go back to our procurement and sourcing module collapse all inside the consignment Warehouse uh so first we'll use this consentment replenishment order for create order and receive the stock in inside our uh consentment weos process so the next option is inventory ownership change so we'll select this inventory ownership change so here first we need to create a journal so as I said I'm using the Microsoft data so the journal is already created but if you are new uh to the system or beginner to the system and don't know how to create a journal I'll show you the full path how you can create the journal so to create a journal again we go back to our duplicate tab Inventory management section um let's collapse all inside setups we have that option of Journal names and we select the inventory journals so here you can see that inventory ownership change Journal is already created in a Microsoft data but if in your scenario it's not created just click on this new Option enter the name enter the description and make sure you select the journal type as a ownership change if you are not selected this type system not allow you to create uh or change the inventory Journal so we selected this and uh voucher series system automatically created the number sequence for this uh Journal so so important part is just select this ownership uh change so we again go back to our uh inventory ownership Journal so here we have creating the so here I'm creating the new Journal selected the journal names so I'm talking about this if you are new or beginner to the system or if you are not using the consignment Warehouse process uh before so you will see the blank option over here so you need to create a new journal and then then only this option is enabl for you so I just select this option click on okay so our new Journal is created header is there inside the line section we need to add the line for which for which item will change the ownership from uh vendor to our usmf uh company so for this I just click on this new Option inventory Journal I sorry I selected our new item this is our new item so in the next step we'll select the from site to site so I'm not selecting that because my Consignment Warehouse I want to consume this stock from the consignment Warehouse only if you're in in your scenario if you're Consignment Warehouse in another location and you want to consume this stock uh for sales or uh for sales order or some other other uh operation you can transfer that stock within from this from your Consignment Warehouse to your to your sales Warehouse so in that scenario I'm not uh change this stock so I'm selecting the from warehouse and two Warehouse is same so in in my scenario the from warehouse and two Warehouse is same uh from in ownership I'm selecting the vendor from which we have changed the ownership so I'm select the vendor and in the two section system automatically assign the usmf legal entity and here last in the second last column uh we have that option to select the quantity so in in my scenario only 60 uh quantity I want to consume for this uh to sell to the customers so I'm just selecting the 60 if you if in your scenario if you want to fully consume this stock you can fully consume this stock uh usually we have prefer to not consume the stock which is not required to consume because the anyhow the inventory comes into your ownership you the then this inventory is a part of all the inventory calculations or cost calculation or moving cost calculation so here I'm just selecting the 60 quantity in the line details we to change just save this option and post this journal so we have received this error how to resolve this for resolve this I need to set up the inventory posting account uh for this we get to the inventory management collapse all setups under the posting section we have that posting option so for this system giving me error that uh transaction type cost of purchase material received an item so for this I need to go to purchase order section uh cost of uh purchase material receive so here you can see that our new item uh item relation is not there so I just create a new and set the main account as a raw material inventory if you are not aware about the posting and if you're beginner and not aware how to set up the posting and what is posting you can just check out my channel I have already published one uh more detailed videos about this posting so we again navigate to the inventory change close this all error now we'll post this journal again yeah so our new Journal is posted you can see that our successfully post this journal and our new purchase order has been success sucessfully created so once you post this inventory ownership uh change Journal it's uh indirectly you are consuming the uh vendor stock or you are changing the ownership which means that you are procuring the stock from our vendor so system automatically create a new purchase order for this particular item within the with the quantity which we have selected under this uh Journal so let me copy this purchase order number and I'll show you the purchase order which is create automatically created by the sin steam so for this we now we get to the procurement and sourcing section let collapse all under the purchase order all purchase order filter with the purchase order number yeah so you can see that our new purchase order is created with the uh vend which we have selected under the consignment Warehouse process let's open this purchase order and here you can see that the quantity is also 60 and the status you can see that it's already received so why it's already received because we have already received that whole stock from the vendor location to the our location at the time of creating the replenishment order so system automatically CH create an order and automatically uh change the status of that order to receive so let me show you the uh on an inventory of the item now because previously the whole ownership is on the uh vendor level so we'll again navigate to the uh product information management release products select our uh select our item Inventory management on an inventory so here you can see that the new uh entry is cre created and for the 60 item and you can see that the new ownership is assigned to the uh usmf legal entity because we have received this stock in our uh Warehouse with the ownership change so now we can consume this stock for our sales order or any other processes so this is all uh Consignment Warehouse process so here first we uh completed our pre which we have created created a new item with the created a new item with the tracking Dimension ownership select the vendor third option is assign the ownership to the um vendor then we'll uh create a replenishment order to receive the stock from the vendor location to our Consignment warehouse location and once we have that requirement to consume this uh stock inside the uh Consignment Warehouse then we'll create a in inventory ownership journal and with this inventory ownership Journal system automatically created a purchase order to the particular vendor with the with the status of received so this is whole process of the consignment Warehouse uh within the D for finance and operation hope you understand whole the consignment Warehouse process if you still have any question you can ask me in the comment section and uh make sure you U you subscribe to my channel for the future videos and hit that Bell button to get the notification about our new future videos so thank you for watching