party entiled to dispose and custodian

[Former Member]

Experts,

Can someone please explain the difference of party entiled to dispose and custodian.

I am aware Party entiled to dispose is the one who holds the title to the goods stored in the warehouse.

Please let me know the other differences. Thanks

[JuergenPitz · Accepted solution]

Hi,

you actually have to distinguish between three roles: Custodian, owner, and Party entitled to dispose.

The custodian is the owner of the warehouse and the one who has the physical access to the material (means he can hit is with a forklift).

The owner is the owner of the stock, means he is the one who can find the material in MMBE on plant and storage location level (looking at in in ERP terms).

The party entitled to dispose is the one who can tell the custodian what to do with material belonging to a certain owner. Now, when do you have that? Indeed, in consignment stock. But then the supplier is still the owner, the party entitled to dispose is the plant who has received the material.

The custodian is a role you actually do not see anywhere. Guess you found it and that is where the question comes from, you have to assign it to the warehouse. Usually this will be the same business partner you have for you plant (which will also be the owner, in case it is not consignment stock). The custodian is not in any postings or something. It gets interesting if you have a third-party who owns the warehouse and works for you - the question only is then why you run the warehouse management system for them?

The owner and party entitled to dispose always comes as information in the delivery.

That means that in the cases where you run your own warehouse and you have no consignment stock - all three are the same. The owner and the party entitled to dispose can be different if you have supplier consignment stock (not customer consignements, because that usually means that you have sent the material to the customer as consignment stock, but then it is not in your warehouse anymore).

Brgds

Juergen

[Former Member · Accepted solution]

Hi Juergen,

Thanks for the clarification. there are some further questions with this topic. need your inputs.

If there is a case where the physical warehouse and internal infrastructure is owned by a party XYZ who is executing & managing all the stock movements inside warehouse.

BP-XYZ is the custodian.

There are 3 plants who are directing the stock movements in the warehouse.  Then, there will be 3 parties entitled to dispose for their own stock and also they will be the owners, if it’s not a consignment stock.  BP-A, BP-B, BP-C.

There is consignment stock at plant A from vendor V1. (BP-V1)

In consignment stock situation: BP-V1  is the owner, Plant BP-A is the  Party entitled to dispose and  BP-XYZ is the custodian.

In normal stock situation: BP-A is both owner and party entitled to dispose  & BP-XYZ is the custodian.

Hope this is correct.

----

In both cases, is there any significance of custodian in the transactions being processed in the warehouse?

Why do we maintain custodian under Assign warehouse number in  IMG –EWM-masterdata?

How is the service provided by XYZ is paid by the parties entitled to dispose?  OR

Can/Does ewm track the data of warehouse transactions per party & time for which respective stock was stored in the warehouse, to link it with calculation of service fee payable by the parties? 

[JuergenPitz · Accepted solution]

Hi,

"In consignment stock situation: BP-V1  is the owner, Plant BP-A is the  Party entitled to dispose and  BP-XYZ is the custodian.

In normal stock situation: BP-A is both owner and party entitled to dispose  & BP-XYZ is the custodian.

Hope this is correct. "

Yes. Except that: you never see the custodian. It is not in any posting document whatsoever.

"In both cases, is there any significance of custodian in the transactions being processed in the warehouse?"

Not that I am aware off.

"Why do we maintain custodian under Assign warehouse number in  IMG –EWM-masterdata?"

Good question - except that you should never ask "why" in a SAP program . I think (personal opinion!) that it was build for 3PL who offer warehouse services, that they can make a use of it, but:

"How is the service provided by XYZ is paid by the parties entitled to dispose?  OR

Can/Does ewm track the data of warehouse transactions per party & time for which respective stock was stored in the warehouse, to link it with calculation of service fee payable by the parties?  "

there is nothing for this in the standard that I am aware of. You can of course use key figures and calcuate how much was done for certain stock, but there is not calculation of service fees available. This is usually something quite complex, depending on how much you moved, how much storage space was used, etc. and EWM has no calculation engine for this.

Brgds

Juergen

[Former Member · Accepted solution]

Thanks a lot for your response.

[former_member804409 · Accepted solution]

Hi Juergen,

I have a question-

"The owner and party entitled to dispose always comes as information in the delivery."

Does that mean there is no need to assign a default party entitled to dispose to warehouse?

During Inbound delivery will vendor be automatically assigned as party entitled to dispose?

Is identification type CRM011 a prerequisite in business partner to assign a vendor as party entitled to dispose in inbound delivery?

What I understand is party entitled to dispose is your plant and you can default it in warehouse if you have only one warehouse assigned to a plant.The link between plant and party entitled to dispose is vendor.If I already have a vendor in ECC that has a plant assigned to it,i can use it to create party entitled to dispose.

But what, if I don't have any such vendor in ECC?What is the best practice?Should I create a dummy vendor with plant assigned to it in ECC and make it my party entitled to dispose in EWM ?Or I can use any vendor as default to create one?From consulting point of view what is the right approach ?

Regards,

Khushboo

[JuergenPitz · Accepted solution]

Hi,

"Does that mean there is no need to assign a default party entitled to dispose to warehouse?"

you should, but only in a single client warehouse (means: not, if the warehouse is run by a logistic service provider and he has material for several customers in this warehouse).

"During Inbound delivery will vendor be automatically assigned as party entitled to dispose?"

The vendor is never the party entitle to dispose.

"Is identification type CRM011 a prerequisite in business partner to assign a vendor as party entitled to dispose in inbound delivery?"

Yes, if I understand the question right.

"The link between plant and party entitled to dispose is vendor"

It can also be a customer.

"I already have a vendor in ECC that has a plant assigned to it,i can use it to create party entitled to dispose."

Yes.

"But what, if I don't have any such vendor in ECC?What is the best practice?Should I create a dummy vendor with plant assigned to it in ECC and make it my party entitled to dispose in EWM ?"

You need for EWM a vendor and a customer in ERP. Of of the BPs for it you assign the role CRM011 and this will be your default party entitled to dispose.

"Or I can use any vendor as default to create one?"

You wouldn't want to do that.

And you should also not ask this quesiton here AND open a new discussion with the same question.

Brgds

Juergen

[JuergenPitz · Accepted solution]

As this topic was touched anyway....

"How is the service provided by XYZ is paid by the parties entitled to dispose?  OR

Can/Does ewm track the data of warehouse transactions per party & time for which respective stock was stored in the warehouse, to link it with calculation of service fee payable by the parties?  "

With EWM9.3 the new feature of warehouse billing is available, so this answers this question with yes.

Warehouse Billing - What's New in SAP Extended Warehouse Management 9.3 - SAP Library

Best regards

Juergen

[former_member804409 · Accepted solution]

Thanks Juergen for the reply.I opened a new discussion for this the same day but no response .

I am still not clear with-

But what, if I don't have any such vendor in ECC?What is the best practice?Should I create a dummy vendor with plant assigned to it in ECC and make it my party entitled to dispose in EWM ?"

You need for EWM a vendor and a customer in ERP. Of of the BPs for it you assign the role CRM011 and this will be your default party entitled to dispose.

Do you mean to say in such case I should create a new vendor in system who can act as party entitled to dispose by assigning CRM011 to it?In my case Plant is my party entitled to dispose. Do you mean I need to create a new vendor and assign plant to it in ECC and use it ?

Regards,

Khushboo

[JuergenPitz · Accepted solution]

Hi,

"Do you mean to say in such case I should create a new vendor in system who can act as party entitled to dispose by assigning CRM011 to it?"

I mean what I wrote before: You need for EWM a vendor and a customer in ERP (for your plant). One (typo, sorry) of the BPs for it you assign the role CRM011 and this will be your default party entitled to dispose.

Brgds

Juergen

[former_member804409 · Accepted solution]

Thankyou Juergen!!!