Customer Owned Inventory

[Former Member]

We handle a lot of customer owned material in the plant, some customer send pallets and we build according to the customeru2019s requirements on their pallets. Can someone please help me how to handle this situation from inventory and sales standpoint?

[Former Member · Accepted solution]

Normally, the customer provided component would be a non-valuated material. You would include the non-valuated material the bill of material of the finished product you ship to the customer so that it gets consumed.

[madlercm · Accepted solution]

In addition to what was already said, if you may get the same material from more than one customer, then it is recommended that you work in individual stock (sales order stock, MTO), and also take into consideration the physical separation and indentification of the materials.