VMI Procurement Workflow

VMI Receipt

To plan VMI procurement, use a Purchase order document with the VMI procurement transaction:

Go to Purchasing > Purchase orders.
Click Create.
Select the VMI procurement transaction.
On the Main tab, fill the required fields: Vendor, Counterparty, Company, Contract, Terms of purchase, and Warehouse.

5. On the More tab, fill the required details.
6. On the Goods tab, specify a Requested delivery date.
7. Click Add the goods manually or click Fill > Select goods, double-click one or several items, and click Add to document.
8. To identify prices automatically, select lines and click Prices and discounts → Apply price type from Terms of purchase.
9. To apply a custom Price type:

Select lines, click Prices and discounts, and then click Select price type.
Manually select a price type from the list of Price types.

10. Click Post and close.

The actual goods receipt for safekeeping is registered with the VMI procurement document. You can register it based on the Purchase order or, if advanced warehouse management is used, based on the Goods receipt.

Go to Purchasing > Purchase orders.
Select the required order.
Click Generate > VMI procurement.
On the More tab of the VMI procurement document, enter the Incoming document number and the issue date according to the vendor's details.
Check whether other document data is correct.
Click Post and close.

Registering Goods Pick-up by Partners

In this process, the partner (a vendor or a principal) picks up goods that belong to them:

Go to Purchasing > Purchase documents (all).
Click Create > VMI pick-up request from vendor.
In the VMI pick-up request from vendor document, click the Main tab.
In the Transaction field, select VMI pick-up request from vendor.
On the Main tab, fill the following fields: Vendor, Counterparty, Company, Contract, Terms of purchase, and Warehouse.

6. On the More tab, select a Currency.
7. Fill the other required fields.

8. On the Goods tab, click Fill in and then click Select available VMI.
9. Select lines, enter quantity, and add them to the document.
10. Make necessary adjustments to the lines filled automatically.
11. Add a new line and fill the Items, Quantity, Price, and VAT rate columns.
12. Click Post and close.

You can also generate this document based on the VMI procurement document.

VMI Procurement Discrepancy Report

To register discrepancies identified upon accepting goods for safekeeping, use the VMI procurement discrepancy report. Discrepancies are recorded if the actual quantity of goods received to the warehouse does not correspond to the quantity of goods according to the VMI procurement document.

To use this option, enable it in Master data and settings > Purchasing and select the Receipt discrepancy reports checkbox.

To create a VMI procurement discrepancy report:

Go to Purchasing > Purchase documents (all).
Select the required VMI procurement and click Generate > Receipt discrepancy report.
On the Goods tab, change the Actual quantity for the goods without discrepancies. The system will calculate discrepancies automatically.
Click Discrepancy treatment and specify how you want to settle the discrepancy.
In case of shortage, you can:

Register. The receipt decreases be the amount of underdelivered goods.
Register and wait for subsequent delivery. The current receipt is reduced by the number of underdelivered goods. A new document is created to get the missing goods.
Wait for subsequent delivery without invoices. The undelivered goods are received to the warehouse without registering any documents.
Write off shortage. Missing goods are allocated to shortages.

6. In case of surplus, you can:

Register. The receipt increases be the amount of overdelivered goods.
Invoice the surplus and create Goods return. The receipt increases be the amount of overdelivered goods. Overdelivered goods are then returned to the vendor.
Return the surplus. Overdelivered goods are returned without registering any documents.
For income. Overdelivered goods are registered as other income.

7. Specify the In progress status and Post the document. Otherwise, it will be impossible to create the adjustment documents.
8. Click the Issue documents hyperlink below the registration options on the Main tab to see what documents you need to create further.

9. Create each document one by one.

10. Once you are done, change the VMI procurement discrepancy report status to Processed.
11. Click Post and close.

You will find the registered document in Purchasing > Purchase documents (all).

VMI pick-up request from vendor

To register discrepancies identified upon returning goods for safekeeping, use the VMI pickup discrepancy report. Discrepancies are recorded if the actual quantity of goods received by the vendor does not correspond to the quantity of goods according to the VMI pick-up request from vendor document.

To use this option, enable it in Master data and settings > Sales and select the Customer invoice disputes checkbox.

To create a VMI pickup discrepancy report:

Go to Purchasing > Purchase documents (all).
Select the required VMI pick-up request from vendor and click Generate > VMI pickup discrepancy report.

3. On the Goods tab, change the Actual quantity for the goods with discrepancies.
4. Click Discrepancy treatment and specify how you want to settle the discrepancy.
5. In case of shortage, you can:

Register. The transfer decreases by the amount of underdelivered goods.
Register and supply additionally. The transfer decreases by the amount of underdelivered goods. A new document is created to send the missing goods.
Supply additionally without registering. The undelivered goods are shipped from the warehouse without registering any documents.
Disregard the shortage. Missing goods are not shipped from the warehouse, and no documents are created.

6. In case of surplus, you can:

Invoice the surplus. The transfer increases be the amount of overdelivered goods.
Invoice the surplus and create Goods return. The transfer increases be the amount of overdelivered goods. Overdelivered goods are then returned to the warehouse.
Return the surplus. Overdelivered goods are returned to the warehouse without registering any documents.
Disregard the surplus. Overdelivered goods are not returned to the warehouse, and no documents are created.

9. Create each document one by one (if there are any).

10. Once you are done, change the VMI pickup discrepancy report status to Processed.
11. Click Post and close.

You will find the registered document in Purchasing > Purchase documents (all).

Purchase Invoice — VMI

After receiving VMI, the company initiates business activities to consume VMI, for example, selling to third parties. Over a certain period of time, the company regularly generates a notification about VMI consumption for the vendor. Based on notifications, the vendor issues invoices to the company.

The Purchase invoice — VMI document also allows you to write off the detected shortages of goods accepted for safekeeping at our expense. You need to issue this document if the Register purchase invoice – VMI option is selected in Stock shortage recognition procedure in the contract.

The shortage of goods accepted for safekeeping is registered with the following documents:

Stock shortage recognition.
Stock reclass.
Stock quality change.

Once one of the documents mentioned above (for example, Stock shortage recognition) is posted to reflect the shortage of goods accepted for safekeeping, you can register Purchase Invoice — VMI based on such document in a special workplace: Purchasing > Redemptions of goods to register.

Sending VMI consumption notifications to vendors

Go to Purchasing > Purchasing reports and then open the Vendor-managed inventory report.
Set a Period, a Company, and an Owner.
Generate the report.
Review the To redemption column.
Save the report.
Send the saved report to the vendor.
Record this communication in Quick menu > Business Interactions.
Receive the invoice from the vendor.

Creating Purchase invoice — VMI

Manually

Go to Purchasing > Purchase documents (all).
Click Create and select Purchase invoice — VMI.
On the Main tab, select a Vendor, a Counterparty, a Company, and a Contract.

4. On the More tab, select a Price type.
5. Enter a reference Number and a date according to the source document.
6. Select an Incoming document name.
7. Fill the other required fields.

8. On the Goods tab, click Fill > Select available VMI.
9. Select a line and fill the Quantity to register column in accordance with the actual VMI consumption to be invoiced.
10. Click Fill in prices > By vendor price type.
11. Review and correct the Price column.
12. Select a VAT rate column value for each line.
13. Click Post and close.

From the workplace

Go to Purchasing > Redemptions of goods to register.
Select the required reference or references and click Create document.

3. On the More tab, enter a reference Number and a date according to the source document.
4. Select an Incoming document name.
5. Fill the other necessary fields.

6. On the Goods tab, review the lines filled automatically. To fill the lines from scratch:

Clear all the lines.
Click Fill > Select available VMI.

7. Select a line and fill the Quantity to register column in accordance with the actual VMI consumption to be invoiced.
8. Click Fill in prices > By vendor price type.
9. Review and correct the Price column.
10. Select a VAT rate column.
11. Click Post and close.

To pay for the invoice, register an Outgoing payment from the bank or cash account.

VMI Adjustment

The VMI Adjustment document allows you to write off the detected shortages of goods accepted for safekeeping, and the goods were written off. You need to issue this document if the Register adjustment option is selected in Stock shortage recognition procedure in the contract. You can write off goods with or without compensation.

The shortage of goods accepted for safekeeping is registered with the following documents:

Stock shortage recognition.
Stock reclass.
Stock quality change.

Once one of the documents mentioned above (for example, Stock shortage recognition) is posted to reflect the shortage of goods accepted for safekeeping, you can register VMI adjustment report based on such document in a special workplace: Purchasing > Reports on VMI adjustment to register.

Creating VMI adjustments w/o compensation

Go to Purchasing > Reports on VMI adjustment to register.
Set a Company and a Vendor.
Select one or several lines and click Create document.
In the Business transaction field, select VMI adjustment w/o compensation.
Fill the following fields: Vendor, Counterparty, Company, and Contract.
On the More tab, fill the required fields.
On the Goods tab, review the lines filled automatically.
Click Post and close.

Creating VMI adjustments with compensation

Go to Purchasing > Reports on VMI adjustment to register.
Specify a Company and a Vendor.
Select one or several lines and click Create document.
In the Business transaction field, select VMI adjustment with compensation.
Fill the following fields: Vendor, Counterparty, Company, and Contract.
Fill the Expense item and Expense dimension fields.
On the More tab, fill the required fields.
On the Goods tab, review the lines filled automatically.
Specify a Price.
Click Post and close.

Monitoring VMI Procurement

Go to Purchasing > Purchasing reports and open the Vendor-managed inventory report.
Set a Period, a Company, and an Owner.
Click Generate.
In the Closing balance columns, find available VMI.
In the To redemption columns, analyze VMI consumption beyond production for the period.
In the Written off to production columns, analyze VMI consumption in production for the period.
In the Redeemed columns, analyze vendor invoices for the registered VMI consumption for the period.
In the To write off columns, find the registered VMI shortages.
In the Written off columns, find the issued VMI adjustment notes.