How do we manage own stock stored at a vendors location?

Question

Hello all,
We have a number of inventory items that we have purchased but due to the vendor maintaining optimum storage conditions we have stored at the vendor.
This is sort of an opposite scenaro to the consignment process.
Is there a way of holding valuated stock against a vendor ?
- The obvious is a separate plant or storage location, but ideally we'd like to use the vendor number is a similar way to consigment stock only that the inventory would be valuated (and therefore paid for upfront and not on consumption).
We'll likely incurr a cost to transfer from the vendor's site to our site which suggests a seperate plant is appropriate as a transfer PO could be used with a freight condition to get the correct material value at our site.
All suggestions and comments welcome.
thank you
Steve.

Answer 1

Steve,
Check whether the below process will work for you.
As Jurgen suggested store the Stock as SC stock (Subcontracting stock at vendor location). By doing so the Stocks will be stored under the vendor number (as prefrerred by you). In order to handle the transportation cost during the tranfer of stocks to own site use Subcontracting PO and in BOM/ componenets maintain the material as a recursive item. If required you can maintain it as a free item (as there is no actual subcontacting charges involved). By doing a GR for the Subcon PO you can receive the stock at your own site and the SC stock would get consumed. The transportation costs too will be handled appropraitely by given them as the Header condition in the Subcon PO.
And as Jurgen indicated to optimize the process when the procurment is made for these materials the delivery address can be maintained as the Vendors addresss with the SC indicator checked.By doing so you can purchase and receive the Materials directly as SC stock.
Regards,
Kathir
Edited by: Kathiravan Jegatheesan on Apr 16, 2010 11:37 AM