10.11. Customer Custody Warehouses

The Customer Custody Warehouse functionality is available starting with version 13.09. The necessary definitions for implementing this functionality are described below:

• 1. Warehouse definition - client custody type, in the Warehouse & Locators window, following the rule:

     • it is mandatory to define the warehouses on the organization; 1 warehouse = 1 business partner; so that on an organization you can define a single client custody warehouse for one customer.

     • check the Client Custody checkbox. This will display the following field: Business Partner.

     • The Business Partner field indicates the customer for which the custody warehouse is defined.

     • off-balance sheet accounting - in the Accounting tab, indicate the accounts:

       • Product Asset - (8033)

       • Product COGS - (9607)

  2. Define new shipment document type that will simultaneously generate Internal Material Receipts, in the Document Type window:

     • Custody Document Type field- indicate an Internal Material Receipt type that will automatically be generated when completing the shipment.(only visible if you have selected Material Delivery in the Document BaseType field).

Phase I- selling and keeping the products in custody

1. Sales order - document type with the shipment from warehouse indication.

2. Shipment generated through the sales order document type with the indication of the loading document type for the corresponding client custody warehouse (Internal Material Receipt).

2.1. Internal Material Receipt - automatically generated at the completion of the shioment following the rule:

• • the Organization from the shipment;

  • custody-type warehouse from the respective organisation and the customer from the shipment;

  • sales order price list used to generate the shipment;

  • the products and quantities on the shipment lines, the price from the sales order;

  • off-balance sheet posting using the stock accounts: Product Asset 2 and Product COGS 2.

3. Customer Invoice- generated from the sales order according to the standard invoicing rules.

Phase II - delivering to the customer from the custody warehouse

4. Sales Order- document type for delivering from the customer's custody warehouse, with the "Complete Order" delivery rule (optionally of "Warehouse Order" subtype).

• • Warehouse - select the custody warehouse defined for the customer on the order, from the respective organization!

  • Press the Create lines from button to generate order lines:

    • the lines will be composed from all existing products with positive stock in the warehouse selected on the order;

    • the quantity will be the available quantity: it is assumed that you do not work with reservations, so that the available quantity will always be equal to the onhand quantity and the entire stock can be emptied;

    • the user can manually interfere and erase lines or diminish the quantities used for partial deliveries from the custody warehouse. .

5.Shipment - generated from the "No Invoice" sales order - only the custody warehouse will be discharged; off-balance sheet posting will be done if the delivered products have been given accounts that are identical to the ones defined at custody warehouse level for the Product Asset 1 and Product COGS fields.

Additional Rules:

• • On the shipment document used to generate the Internal Material Receipt: keep the code of the receipt.

• Keep the shipment code on the Internal Material Receipt generated from the shipment.

  • An Internal Material Receipt generated from a shipment does not accept Voiding, Reversing or Closing document actions.

  • Voiding a shipment that was used to generate an Internal Material Receipt will automatically lead to voiding the receipt; if the receipt voiding is not successful, the shipment voiding will also be stopped!

  • Reversing a shipment used to generate an Internal Material Receipt will automatically lead to reversing the receipt; if the receipt reversing is not successful, the shipment reversing will also be stopped!

Return Documents Workflow:

Determined based on the situations:

• • when the products are still in the client custody warehouse (i.e. they have not physically left): you can reverse the order which will lead to reversing the shipment, customer invoice and the generated Internal Material Receipt.

  • when the products have been shipped to the customer (i.e. they have left the client custody warehouse): you can subordinate the standard customer return (RMA Client). Note: the reverse method will not work, because the Internal Material Receipt has already been generated and shipped, so that you can no longer reverse the shipment!