Message-ID: <17886161.1075842611259.JavaMail.evans@thyme>
Date: Thu, 31 Aug 2000 01:18:00 -0700 (PDT)
From: perry.roberts@enron.com
To: eric.gillaspie@enron.com
Subject: Re: Consignment Agreement for Victoria Warehouse
Cc: gerald.nemec@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: gerald.nemec@enron.com
X-From: Perry Roberts
X-To: Eric Gillaspie
X-cc: Gerald Nemec
X-bcc: 
X-Folder: \Gerald_Nemec_Dec2000_June2001_1\Notes Folders\All documents
X-Origin: NEMEC-G
X-FileName: gnemec.nsf

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