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Enron Mail |
Eric,
This looks good to me. One other aspect is the actual process vs what is described in the agreement. Let me give a brief synopsis of what transpires. You may want to make additional changes to the agreement. 1. Specifications, quantities and pricing are agreed upon between Matt Ligon/Daniel & Perry Roberts/HPL. 2. Purchase information records are created within Enron's SAP MM system that ties the specific material to a vendor and a price for consignment inventory purposes. 3. A purchase order is created to order in the initial consigned inventory. The purchase order reflects no values because the vendor still owns the material until it is needed by HPL or the term length agreed upon ends and the purchase order is linked to the purchase information record. 4. The material is received and becomes a vendor owned consigned inventory in our facility. 5. When the material is needed, it is issued out of inventory via a Goods Issue SAP entry. This causes a financial settlement transaction to be routed from SAP MM to Accounts Payable for payment to the vendor. 6. Restocking is made by issuing additional purchase orders for consignment. Thanks, Perry Eric Gillaspie@ECT 08/30/2000 06:35 PM To: Gerald Nemec/HOU/ECT@ECT cc: Perry Roberts/GCO/Enron@ENRON Subject: Consignment Agreement for Victoria Warehouse Gerald, For your review and comment is the attached is a red-line of the Victoria Warehouse Consignment Agreement. Eric Gillaspie 713-345-7667 Enron Building 3886
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