Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2025-03-14
Steps: Set Up Consignment

Steps: Set Up Consignment

Enable Workday Inventory to procure, store, and issue consigned goods.
You can set up consignment-type contracts, requisitions, and purchase orders in the Procurement functional area. Then, set up consigned stocking locations in the Inventory functional area. When you do this, you can procure consigned goods and manage them using Workday Inventory.
Create consignment-type requisitions and purchase orders for:
  • Initial consignment, to procure at no cost.
  • Bill and replacement, to pay for consumed consigned goods in real time and replenish at no cost.
Also, create par-replenishment type requisitions for initial consignment, to procure at no cost.
Once you procure consigned goods at no charge, use bill and replace requisitions to replenish the consigned goods in par and inventory locations.
Any requisition type you select with consignment forces you to put away items in either standard inventory replenishment or par replenishment consigned locations. To avoid inventory transactions with zero cost at purchase, we recommend:
  • Using standard
    No Charge
     lines on your requisitions without selecting a consignment type requisition or purchase order.
  • Making manual accounting updates when you use those items if you select
    No Charge
     lines.
  1. Select
    Consignment
     to create a consignment-type supplier contract.
  2. Create consignment-type requisitions for:
    Initial consignment
    Select
    Consignment
     and
    Inventory Replenishment
    .
    Initial consignment in par locations
    Select
    Par Replenishment
     and
    Consignment
    .
    Bill and replacement
    Select
    Bill Only
     and
    Consignment
    .
    (Optional) You can also select
    Lot and Serial
     to add an enterable text field for lot and serial information on bill and replace requisitions.
  3. Create consignment-type purchase orders for:
    Initial consignment
    Select
    Consignment
    .
    Bill and replacement
    Select
    Bill Only
     and
    Consignment
    .
    (Optional) You can also select
    Lot and Serial
     to add an enterable text field for lot and serial information on bill and replace purchase orders.
    1. From the
      Spend Category
       prompt, select a stocked spend category.
    2. On the
      Inventory Site Options
       tab, set up your consigned stocking options in the
      Consignment Options
       section.
    3. On the
      Supplier Information
       tab, set up supplier pricing.
    When the supplier uses a different currency than the currency setup for inventory companies:
    • Create a header-level supplier contract with the currency the supplier accepts.
    • Add the contract on the
      Supplier Contract
       prompt on the
      Supplier Information
       tab.
    When you don't add the contract:
    • Bill and replace requisitions don't automatically source to purchase orders.
    • Manually enter the correct contract on requisition lines, to source the requisition.
    1. Access the
      Create Supplier Contract
       task.
    2. From the
      Contract Type
       prompt, select a consignment-type contract.
    3. In the
      Goods Lines
       section, enter the stocked purchase item.
    4. Enter the quantity of items your inventory can hold in the
      Consigned Quantity
       field.
  6. On the
    Replenishment
     tab, select
    Usage
     from the
    Consignment Orders Created By
     prompt.
  7. From the
    Goods Ownership
     prompt, select
    Consigned
    .
    1. From the
      Requisition Type (Consigned)
       prompt, select a bill and replace requisition.
    2. Select the
      Consigned
       check box for consigned goods held in par locations.
  9. Select a consignment-type requisition from the
    Requisition Type
     prompt.
  10. (Optional) From the related actions menu of the requisition, select
    Requisition
    Source Goods Lines
    .
    From the
    Default Purchase Order Type
     prompt, select a purchase order type that matches the requisition type.
    When you're sourcing a requisition for initial consignment in par locations, select a consignment-type purchase order for no charge.
    Security:
    Process: Sourcing - Goods
     domain in the Procurement functional area.
  11. When you don't source requisitions to purchase orders, select a consignment-type purchase order from the
    Purchase Order Type
     prompt to create ad hoc purchase orders.
  • When you set up consigned locations for the goods that you receive, Workday populates the put-away location on the
    Deliver To
     field on receipts.
  • Workday posts journal ledgers when you issue consigned goods from inventory.