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How to handle Customer Owned materials

  • 1.  How to handle Customer Owned materials

    TOP CONTRIBUTOR
    Posted Mar 19, 2020 10:33 AM
    Hello All,

    I'm just looking to see how other companies handle Customer Owned materials in AX 2012 R3.  Do you handle them with a PO and receive them into your inventory at zero cost?  If that is not an option, what would be another way?

    Anyway, I would love to see how other companies does it?

    Thanks,

    Sam

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    Sam Clark
    Director of IT
    Team Technologies
    Morristown TN
    ------------------------------
    Academy - Online Interactive Learning from Experts


  • 2.  RE: How to handle Customer Owned materials

    TOP CONTRIBUTOR
    Posted Mar 20, 2020 08:15 AM
    ​Hi Sam,

    We have customer owned raw materials and finished goods, and that's exactly how we handle it.

    In AX2012, if we had materials where it was something we bought and something the customer supplied at no charge, we used different configurations to differentiate them. I think we had a small customization done to allow us to have different costs by configuration. We ran into issues initially with forgetting to set a $0 cost for the customer-owned configuration, and when it was consumed, AX would grab the cost for our ownership of the item.

    In order to manage the inventory, we also created inventory locations which matched the customer number, to help exclude customer-owned materials from our inventory reports (although really, configuration works for that too).

    In our current conversion to D365FO, we are going to unique item keys for all items by combining the current item number and the configuration. That will eliminate the customization, while still making it fairly easy to view our total on-hand for a material. Some of our shared materials are comingled in bulk tanks, so we need to be aware of the total on-hand in the tank, as well as what percentage everyone owns.

    I'm on the accounting side of things here so that's about the extent of my knowledge on the inventory side, but if you need more details, I'd be happy to see if I can get answers any questions you may have.

    Also, your auditors will probably want you to calculate a value for any customer-owned material you may have on hand at year end for risk exposure purposes.

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    Steve Latta
    Accountant
    Ortec, Inc.
    Easley SC
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: How to handle Customer Owned materials

    Posted Mar 23, 2020 06:26 AM

    Hi Sam

    Re: customer owned material , we never mingle it with the company ERP system. It was kept in a third party inventory system separate from Dynamics AX
    Hope this helps 




    Academy - Online Interactive Learning from Experts


  • 4.  RE: How to handle Customer Owned materials

    TOP CONTRIBUTOR
    Posted Mar 26, 2020 08:27 AM
    Morning,

    I have a follow up question.  Did you just create the PO internally so you could receive the material into AX, or did you send it to the customer?  What happens to us often, is just that a truckload of materials show up at the back door with no documents with it so we don't even know what it is, and then we are creating the PO to receive it.  I know this is more of a process issue than an AX issue, but that's where we are.

    Anyway, ideas are welcome.​

    Thanks,

    Sam

    ------------------------------
    Sam Clark
    Director of IT
    Team Technologies
    Morristown TN
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 5.  RE: How to handle Customer Owned materials

    TOP CONTRIBUTOR
    Posted Mar 27, 2020 09:35 AM
    We use Sales return orders (RMA) for customer property. If it arrives different than what the RMA indicates, we contact the customer to establish what the content actually is prior to doing an arrival journal. If you use arrival journals, they are not reversible (in AX2009, at least). Customer property is tagged with a wired on Red Tag indicating the disposition of materials. RedTag is a warehouse, and all locations in the RT warehouse correspond to the Red Tag. Makes tracking customer property easier.

    If the arrival needs to be returned to the vendor for repair/warranty claim, we pick it to a return PO.

    Of course you situation is different, so you'll want to create your own closed loop.

    ------------------------------
    Mark Prouty
    Programmer / Analyst
    ANGI Energy Systems
    Janesville WI
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 6.  RE: How to handle Customer Owned materials

    TOP CONTRIBUTOR
    Posted Mar 24, 2020 10:04 AM
    We take advantage of the fact that a PO arrival or SO pick record on hand but with no value. Most of what we handle are standard cost parts, so managing separate part numbers or configurations are not palatable (we have 6k active purchased items).
    At one time I explored setting up a separate site - that might be an option, since you should be able to easily control inventory cost by site.
    Another option to consider is to setup intercompany, or a distinct company w/o intercompany links.

    ------------------------------
    Mark Prouty
    Programmer / Analyst
    ANGI Energy Systems
    Janesville WI
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 7.  RE: How to handle Customer Owned materials

    D365UG/AXUG ALL STAR
    Posted Mar 25, 2020 07:47 AM
    I have done it as a zero cost item that is inventoried, and I have also done it as a separate site. I feel that separate site is easier. Then you can do a trasfer in when you need to use it. However as more customers want to get the advice of what their inventory at your company is daily, having it in inventory is a must.

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    Paul Martin
    Production Program Manager
    Elite Comfort Solutions, LLC
    Rutherfordton NC
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    Academy - Online Interactive Learning from Experts


  • 8.  RE: How to handle Customer Owned materials

    TOP CONTRIBUTOR
    Posted Mar 25, 2020 09:37 AM
    Thanks for all the help! ​

    ------------------------------
    Sam Clark
    Director of IT
    Team Technologies
    Morristown TN
    ------------------------------

    Academy - Online Interactive Learning from Experts


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