VMI Procurement Overview and Settings

Overview

VMI procurement is a process when your company accepts the vendor's goods to sell them or use for its own purposes with a deferred purchase of goods. If there was no sale or the company didn’t use the goods, they can be returned to the vendor.
To enable this setting, go to the Master data and settings > Purchasing > Purchase documents > VMI Procurement.

Terms of Purchase

To specify conditions for receiving goods from the vendor for safekeeping, register special terms of purchase:
  1. Go to Purchasing > Terms of purchase.
  2. Click Create.
  3. Select the VMI procurement transaction.
  4. Specify the Description and Company.
  5. Select a Vendor and a Counterparty (if applicable).
6. On the Purchase conditions tab, select a Currency.
7. If the price includes VAT, select the Price includes VAT checkbox.
8. Select a Vendor price type.
9. To register vendor prices automatically, select the Register vendor prices automatically (by default) checkbox.
10. Click Save and close.

Contracts

To specify terms of settlements with vendors for VMI procurement, register a contract with vendor:
  1. Go to Purchasing > Contracts with vendors.
  2. Click Create.
  3. Select the VMI procurement transaction.
  4. In the Description field, enter the contract name.
  5. Specify the Vendor, Counterparty, Company, and other.
  6. Select a Company account and a Seller account.
7. Click the AR/AP settings tab and select an AR/AP item:
  • Contract for debt and prepayment. Prepayment and Debt by invoice will be assigned and cleared on the Contract level.
  • By purchase invoices — VMI and VMI adjustments. Prepayment and Debt by invoice will be assigned and cleared on the invoice level.
8. Select the default Currency for AR/AP transactions under the contract.
9. Select the VAT taxation option:
  • If you select the Determined by the specified value checkbox, you can select a single VAT taxation option for all the transactions under the contract.
  • If you select the Determined in orders and invoices checkbox, you can disable autofilling of the default value.
10. If required, specify a VAT rate for payments.
11. Specify the Stock shortage recognition procedure:
  • Register adjustment. Write-off at the expense of the vendor or our expense. The VMI write-off is registered.
  • Register purchase invoice – VMI. Write-off at our expense, our AP increases.
12. Click Save and close.