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Author's profile photo Iris Zimmermann

Externally-owned stock in SAP Business ByDesign

With this blog, I explain how you can work with externally-owned stock in SAP Business ByDesign.

Warehouse managers want sometimes to store products that are owned by another business partner, such as supplier or customer, for example to store products for demo purpose or for prototyping. The reason is they want to locate these products in the warehouse until they are returned or used.

Now, you can receive and withdraw externally-owned stock with a reference to the owning business partner, move it within the warehouse or change from restricted to un-restricted or set it in ‘inspection’ or the other way round.

With the help of the common task “New externally-owned stock adjustment” in the Physical Inventory Work Center, you can perform absolute quantity posting, receiving additional quantity, or issuing of externally-owned stock

New%20Externally-Owned%20Stock%20Adjustment

New Externally-Owned Stock Adjustment

The resulting confirmation ID is also visible in the confirmation journal. It will not create a journal entry in finance since it is not in your ownership.

Furthermore, you can move the externally owned stock in the warehouse with the “Goods Movement” Common Task as well as change the restricted indicator or the “Change of Stock” Common Tasks in Internal Logistics Work Center. With selecting the check box ‘Externally-owned Stock’, the Owner ID field opens up.

Goods%20Movement%20enabled%20for%20externally-owned%20stock

Goods Movement enabled for externally-owned stock

Consequently, you can see in the stock overview the different owner. If there is no document ID tagged  – that reserves the externally-owned stock for Third-Party Order Returns or for repair – the above-mentioned activities can be processed.

Stock%20Overview%20with%20externally-owned%20stock

Stock Overview with different owner (externally-owned stock)

 

Externally-owned stock is also available for externally-managed warehouses (Third-Party Logistics – 3PL). To use it manually with the “New Inventory Alignment of externally-managed location” Common Tasks, you need to enable the externally-owned stock indicator and the owner fields in personalization.

The externally-owned stock functionality

  • is not transferred to finance, since it is not in your ownership
  • is not considered in planning
  • is not available for outbound delivery processing, neither in source logistics area determination nor for manual selection
  • is not considered for physical inventory count

For a short system demo please have a look at this video.

 

 

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      9 Comments
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      Author's profile photo Former Member
      Former Member

      Hi, Iris Zimmermann

      Is it possible to transfer the ownership of a warehouse Identified Stock ID to a customer or manufacture items directly to the ownership of a customer? We would like to execute production at the end of which the output product would be placed in our inventory, but under the ownership of a customer.

      Author's profile photo Iris Zimmermann
      Iris Zimmermann
      Blog Post Author

      Hello Kasper,

      1st question: transfer ownership of a product with identified stock: You can do this in two steps a) reducing the warehouse stock with identified stock (evtl. with a sales order) and b) increasing the externally-owned stock per customer for the same product with identified stock.

      2nd question: You need to process your production and confirm the finished product as usual. As a second step you can post it to externally-owned by a customer. In between you might want to process a sales order for the financials.

      Hope this helps,

      Best regards,

      Iris

      Author's profile photo NANCY BENOIT
      NANCY BENOIT

      Hello

      I'm quit new using SAP, We are not using any Third party process. Is it mandatory to create an entry?  For exemple, a supplier is just sending me a demo, nothing was done previously In SAP, where should I start?  Because, When I tried ''New externally owned stock adjustement, none of that was working and I got some message error.

      Thanks for the help

      Author's profile photo Iris Zimmermann
      Iris Zimmermann
      Blog Post Author

      Hello Nancy,

      I cannot reproduce your error in our systems. The error message indicates that the owner party is not valid. Please check the business partner you are using again.

      In general, you do not have to use this externally-owned stock functionality. If your supplier is sending you a demo product, you can capture it now in the system if this is convenient for you.

      Best regards,

      Iris

      Author's profile photo Ramdutt Girdonia
      Ramdutt Girdonia

      Hello Iris,

      We are trying to do the Delta GR for externally owned stock, the product is batch and serial activated. System is behaving differently many a time, after putting all the details when we are maintaining the serial numbers the Actual Quantity is not getting updated in many instances and we have to redo the whole process again. I do have a recording of the issue, can I send that recording to any email to get it reviewed by you?

      Regards,

      Ramdutt

      Author's profile photo Iris Zimmermann
      Iris Zimmermann
      Blog Post Author

      Hello Ramdut,

      if you have these kind of issues, e.g. the actual quantity is not updated after maintaining the serial ID's, please create an incident to get it checked by support and development, since I could not reproduce the issue in my system.

      Best regards,

      Iris

      Author's profile photo Etienne REUX
      Etienne REUX

      Hello Iris,

       

      Thanks for this helpful topic.

      I Have a question .

      What is the best way to perform an outbound delivery on a externally owned stock , entry into stock by a externally stock adjustement ?

      We know that this is possible for an externally stock receive by a costumer return, but we dont know how to do it in this spécific case.

      Regards

      Etienne

      Author's profile photo Iris Zimmermann
      Iris Zimmermann
      Blog Post Author

      Hello Etienne,

      in the outbound delivery, you can use the externally owned stock only in the context of a (customer return for) repair process. Meaning, you can send the repaired product back to the customer.

      The enhancement we did and which is described above, refers to inventory management only. It is not included in the processes, neither inbound nor outbound.

      Best regards,

      Iris

       

      Author's profile photo Etienne REUX
      Etienne REUX

      Iris,

      Thank you for this clarification, it is very clear.

      Regards

      Etienne