Customer supplied Material

[Former Member]

How to receive customer supplied material to our inventory? I want to use the customer supplied material in my finished material production, How to track this material????

I can not create as non valuated material type to receive the goods. Because we also buy the same material from other vendors

Please suggest me the solution

Thanks

SUNIL

[Lakshmipathi]

In a manufacturing industry, normally for customer supplied products, separate material code will be there for easy identification and traceability. So as and when the manufacturer receives the component, first they will see whether it is free of charge of payable.

If free of charge, no problem, straightaway we can invoice the corresponding FERT material in which the component has been assembled. If it is chargable, accordingly, the selling price will differ and so the duty amount also.

To knock off the accounts both from customer angle and vendor angle, you will have to maintain the customer code in vendor master of that customer who you treat as a vendor. Similarly, in customer master, you have to assign this vendor code.

So in FI for the same customer / vendor, we can see what is payable and what is receivable. With this, they will update the payment.

thanks

G. Lakshmipathi