<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/wh/onlinemanual/000575" xml:lang="en">
   <Header>
      <Title>Logistic Service Providers (LSP) - Packaging Item
		Registration</Title>
      <Keyword type="header" order="d1e2992996">
         <Level1>Logistic Service Providers (LSP) - Packaging Item Registration</Level1>
         <Level2>shipping material accounts</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>Logistic Service Providers (LSP) are handled as a separate
		VMI/consignment type of warehouse in ERP Enterprise <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef>. Ownership of inventory rests with the supplier.</Paragraph>
   </AimSection>
   <Note>
      <SectionTitle>Note</SectionTitle>
      <List>
         <ListItem>
            <Paragraph>The logging of packaging item transactions at the moment of
			 consumption by the customer is not based on consumed stock point information
			 from the VMI/LSP warehouse. Packaging material transactions must be logged
			 separately from the regular item consumptions, and are processed during the
			 processing of sales consumptions.</Paragraph>
         </ListItem>
      </List>
      <Paragraph>In an LSP-based scenario, the consumption messages to the
		supplier are always sent by the LSP and never by the end customer (OEM).</Paragraph>
   </Note>
   <GeneralSection>
      <SectionTitle>Prerequisites</SectionTitle>
      <Paragraph>ERP Enterprise records the packaging item transactions only when the following
		occurs:</Paragraph>
      <List>
         <ListItem>
            <Paragraph>The <Link href="/baanerp/wh/wmd/whwmd0100s000#whwmd000.xpir" role="formfield">Extended Packaging Item Registration</Link> check box is
			 selected in the <GUIRef href="/baanerp/wh/wmd/whwmd0100s000" role="session">Master Data Parameters (whwmd0100s000)</GUIRef> session.</Paragraph>
         </ListItem>
         <ListItem>
            <Paragraph>The <Link href="/baanerp/wh/wmd/whwmd4505m000#whwmd405.acnt" role="formfield">Accountable</Link> check box is selected in the <GUIRef href="/baanerp/wh/wmd/whwmd4505m000" role="session">Packaging Items (whwmd4505m000)</GUIRef> session.</Paragraph>
         </ListItem>
         <ListItem>
            <Paragraph>The <Link href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.imgt" role="formfield">Inventory Management</Link> check box is cleared.</Paragraph>
         </ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <Important>
         <SectionTitle>Important!</SectionTitle>
         <Paragraph>There are two LSP scenarios in which ERP Enterprise receives the
		  consumption messages and updates associated packaging accounts:</Paragraph>
         <List>
            <ListItem>
               <Paragraph>The LSP (VMI) warehouse is directed/managed by and
				probably located at the customer's site.</Paragraph>
            </ListItem>
            <ListItem>
               <Paragraph>The LSP (VMI) warehouse is directed by a third party,
				possibly closely related to the supplier.</Paragraph>
            </ListItem>
         </List>
      </Important>
      <Paragraph>To indicate the applicable scenario, the <Link href="/baanerp/wh/wmd/whwmd2500m000#whwmd200.usmd" role="formfield">Update Shipping Material Account during</Link> field in the <GUIRef href="/baanerp/wh/wmd/whwmd2500m000" role="session">Warehouses (whwmd2500m000)</GUIRef> session presents you with the following choices:</Paragraph>
      <List>
         <ListItem>
            <GUIRef href="/baanerp/wh/domains/wmd.usmd#ship.to.vmi.wh" role="option">Shipment to VMI Warehouse</GUIRef>: Use when the LSP warehouse is managed by the
		  customer.</ListItem>
         <ListItem>
            <GUIRef href="/baanerp/wh/domains/wmd.usmd#consume.vmi.wh" role="option">Consumption by Customer</GUIRef>: Use when the LSP warehouse is directed by the supplier or a
		  closely related third party.</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Usage of option Shipment to VMI Warehouse- Scenarios</SectionTitle>
      <Paragraph>You must use the <GUIRef href="/baanerp/wh/domains/wmd.usmd#ship.to.vmi.wh" role="option">Shipment to VMI Warehouse</GUIRef> option when the following occurs:</Paragraph>
      <List>
         <ListItem>
            <Paragraph>When the shipping material accounts must be updated when the
			 goods leave the warehouse of the supplier to be shipped to the VMI (LSP)
			 warehouse. In ERP Enterprise, the
			 sales transfer orders are used for this VMI scenario to deliver the goods from
			 a supplier warehouse to a <Emphasis>VMI warehouse (LSP)</Emphasis>.</Paragraph>
         </ListItem>
         <ListItem>
            <Paragraph>When the shipping material account must be updated when the
			 consumption messages sent by the LSP never contain packaging information. The
			 shipping material accounts must be updated when goods are shipped (transferred)
			 from the supplier warehouse to the LSP warehouse.</Paragraph>
         </ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Usage of option Consumption by Customer- Scenarios</SectionTitle>
      <Paragraph>You must use the <GUIRef href="/baanerp/wh/domains/wmd.usmd#consume.vmi.wh" role="option">Consumption by Customer</GUIRef> option when the following
		occurs:</Paragraph>
      <List>
         <ListItem>
            <Paragraph>Shipping material accounts must be updated when the
			 consumption, by the customer/OEM, is processed. The consumption message sent by
			 the LSP (to the supplier) must contain all the necessary packaging
			 information.</Paragraph>
         </ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <Paragraph>The <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#whwmd200.usmd" role="manual">Update Shipping Material Account during</GUIRef> field on the
		ship-to VMI (LSP) warehouse, (to which goods are transferred) determines which
		scenario applies.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000458" role="manual">Vendor managed inventory</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000462" role="manual">Overview of VMI business scenarios</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/inr/whinr1115m000" role="session">Packaging Item Transactions (whinr1115m000)</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/wmd/whwmd4170m000" role="session">Shipping Material Accounts (whwmd4170m000)</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/wmd/whwmd4171m000" role="session">Shipping Material Accounting Scheme (whwmd4171m000)</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/wmd/whwmd4175m000" role="session">Packaging Item Balances by Shipping Material Account (whwmd4175m000)</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>