Customer Owned Stock is an Inventory Management feature whereby stock is made to order, purchased to order or transferred from your own stock, invoiced, then held in your warehouse until the customer requests it. Your customers can pre-order items for storage and later dispatch at short notice. It means you can guarantee your customers’ both certainty of supply and prompt delivery when they need it.
A key feature of Customer Owned Stock is that it’s held at zero value because your Customer already owns it.
Customer Owned Stock usually includes a customer order at both ends of the workflow. The first customer order initiates the manufacture, the purchase or the stock transfer. An invoice is raised. The stock is held in your warehouse customer stock location until a second customer order initiates dispatch of the requested quantity.
This example shows the stock transfer workflow for creating Customer Owned Stock:
- The process starts with a Customer Order
- A customer invoice is raised
- A stock transfer is raised
- The stock is held the Customer Owned Stock location for the particular Customer at zero value.
By contrast, the manufacturing workflow for creating Customer Owned Stock would be as follows:
- A special line type on the Customer Order identifies Customer Owned Stock items
- Abel builds the Manufacturing document automatically
- The Manufacturing close process puts the goods into Customer Owned Stock at zero value and invoices the Customer.
For more on Inventory Management refer to Consignment Stock.
