Non owned raw material in a production from a sales order

  • 9 August 2022
  • 2 replies

We are working with a customer that now needs to bring in material from a client. Example Muffler pipe that needs to be coated with a special surface as the production process.  We have set up a order type CI and bring the product in at no cost from the customer and added it as a material product in the process.  Is there a better way to handle inbound product that is brought in, non inventory, non owned, no value as part of the production process without having to create PO’s or in this case a SO configured as a CI - receipt for customer input.


thank you

2 replies

Userlevel 5
Badge +1

Depends on what the goals are, meaning, will inventory need to be stored onsite / inventoried for a period of time? Are there concerns with the current process that you’re trying to address? Are the parts lot or serial tracked?

I have personally found that a Purchase order issued to the customer at 0 cost for inventory worked best for similar situations. This informed the customer of when we needed to have the parts in hand to complete the work on time and also sped up the receiving process because the receiving team was able to receive, stock, and issue the part as normal.  

One question I have is how will receiving department know what the item is if it shows up on the dock without paperwork since there is no Purchase Order or Sales Order to receive the item against? 

Hope these questions help! 


Userlevel 7
Badge +2

@ASarkisian35 @munsellrandall93 I have seen multiple ways to handle this type of situation. 

We would need to understand the compete flow before we could advise. 


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