Abel Supplier Owned Stock

Posted on 20.02.2023 by Rik

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Supplier Owned Stock is inventory that’s held in your warehouse but still owned by your Supplier until you use it in manufacturing or sell it.

Materials consumed in manufacturing are the most common use of Supplier Owned Stock. But it can also be used for resale e.g. for “sale or return” situations.

Supplier Owned Stock is recorded in your ERP inventory in a dedicated “Supplier Owned Stock” branch at zero value.

The typical workflow is as follows:

  • Create a Supplier Order for the stock (which may be at zero cost).
  • Build a Supplier Delivery for the stock. The stock is held in the “Supplier Owned Stock” branch at zero value. Abel prevents the Supplier Invoice being raised at this stage.
  • When you are ready to consume the stock, use a Stock Transfer (PRTR) to move the stock from the “Supplier Owned Stock” branch to the manufacturing staging area or the despatch branch.
  • On post of the Stock Transfer, Abel automatically builds the Supplier Invoice using the Supplier and cost price from the inventory record.

An alternative workflow uses requisitions:

  • Raise a requisition for Supplier Owned Stock
  • Abel builds the Supplier Invoice automatically using the Supplier’s information for the Invoice transactions

This example shows the typical workflow:

  1. Supplier Delivery Transactions into Supplier Owned Stock.
  2. Stock transactions in the Supplier Owned Stock at zero value (i.e. quantity only)
  3. Transfer Transactions out of Supplier Owned Stock.

Transfers out of “Supplier Owned Stock” are configured to produce a Supplier Invoice. Abel maintains a link between the Transfer and the Supplier Invoice: