Hello IFS community, we are having a customer related process which we struggle to find a working solution in IFS. Maybe someone has an idea how to map this process in IFS.We are an EMS company and manufacturer products for our customers. As typically we are buying all the needed raw materials ourselves. There are some cases where customer requests to buy additional material for securing demands and pays for this in advance. Basically, this means that customer becomes owner of this material and that’s like we want to set it up in IFS for two reasons: Legally we are forced to have the possibility to identify material that’s not our ownage and on the other hand we don’t want this material to count towards our inventory value. To achieve this the material have to be set to either ownership “customer owned” or “consignment”. Now we have two possible scenarios, but unfortunately none is working:Buy material at supplier with ownership “customer owned” and owner = related customer: This would work theoretically but unfortunately there is too much manual work needed to handle the process in daily work. On the one hand you must adjust every purchase order to set up owner correctly and on the other hand you have to manually adjust every shop order to change the ownership of the material to “customer owned”. Buy the material as “company owned” at supplier, receive it, virtually sell it to customer via customer order and afterwards receive it as “consignment” via purchase order with customer as supplier. In this case we have to setup two supplier for purchase part entries. One for the “normal” supplier with ownership “company owned” and one with “customer supplier” with ownership “consignment”. This is not working as we in Germany are forced to valuate raw material with weighted average. Therefor we have to set inventory valuation method to ”weighted average” for correct legal valuation of the receiving’s of the “normal supplier”. On the other hand IFS doesn’t allow to setup a consignment supplier when the part no is set to inventory valuation method ”weighted average”.Hopefully I described it somehow understandable.Many thanks in advance for additional help here.

Purchase and handling of material payed by customer

Hello IFS community,

we are having a customer related process which we struggle to find a working solution in IFS. Maybe someone has an idea how to map this process in IFS.

We are an EMS company and manufacturer products for our customers. As typically we are buying all the needed raw materials ourselves. There are some cases where customer requests to buy additional material for securing demands and pays for this in advance. Basically, this means that customer becomes owner of this material and that’s like we want to set it up in IFS for two reasons: Legally we are forced to have the possibility to identify material that’s not our ownage and on the other hand we don’t want this material to count towards our inventory value. To achieve this the material have to be set to either ownership “customer owned” or “consignment”. Now we have two possible scenarios, but unfortunately none is working:

Buy material at supplier with ownership “customer owned” and owner = related customer: This would work theoretically but unfortunately there is too much manual work needed to handle the process in daily work. On the one hand you must adjust every purchase order to set up owner correctly and on the other hand you have to manually adjust every shop order to change the ownership of the material to “customer owned”.
Buy the material as “company owned” at supplier, receive it, virtually sell it to customer via customer order and afterwards receive it as “consignment” via purchase order with customer as supplier. In this case we have to setup two supplier for purchase part entries. One for the “normal” supplier with ownership “company owned” and one with “customer supplier” with ownership “consignment”. This is not working as we in Germany are forced to valuate raw material with weighted average. Therefor we have to set inventory valuation method to ”weighted average” for correct legal valuation of the receiving’s of the “normal supplier”. On the other hand IFS doesn’t allow to setup a consignment supplier when the part no is set to inventory valuation method ”weighted average”.

Hopefully I described it somehow understandable.

Many thanks in advance for additional help here.

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Hello Daniel,

i think you posted this to the wrong group. This group is dedicated to the IFS Alliance product, not IFS Apps, IFS Cloud, Aurena, etc.

The members of this forum normally would not know how to answer your question for those products, only Alliance.

Though I know Alliance can manage customer owned stock, consigned warehouses or customer owned bins, my information does not extend to the other IFS products.

Daniel,

Can you give the version number of the software you are using? Your question is in the IFS Alliance Community, but it sounds from your question that it is relevant to IFS Cloud, IFS Apps 10, which is on a separate community.

Hello,

thanks for your answers.

I didn’t noticed that my post goes to Alliance group. My question is regarding IFS Apps 10. Can someone move it to the right group. It seems I am not able to do that.

Hello Daniel,

i have passed your request to the IFS Community administrators.

Kind regards,

Phil

Hello,

Did you ever get a resolution to this?

Interested to know as we have a very similar scenario at my company, and customer owned stock and consignment are also not possible for us.

Many thanks

Steph.

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