When a certain product is sent to third parties for storage/repair/processing, a control over these amounts is provided.

In third-party possession, there are two basic cases:

With stock transaction

In the first case, a transaction of Costs FIFO (First In First Out) is made while the second case does not transact costs. Thus, the system controls:

• Third-party amount in our possession (B2_QTNP)
• Our amount in third-party possession (B2_QNPT)

Without stock transaction

For control in the second case, the field B2_QTER saves the net balance of our product that is in third-party possession and still belongs to our stock.

The file of Balance in Third-Party Possession aims at enabling queries/detailed reports about these transactions.

To use this routine, you must fill out the field Third-Party Possession in TIO with:

R  - Dispatch

D  - Dispatch Return

By entering an Inbound Invoice, placing the cursor on the field Amount, you can press [F7] to choose the Invoice through which the products received now left the company.

• Dispatch in Inflow: dispatch from customer, use invoice of type B and TIO with R in the field Third-Party Possession.
• Dispatch in Outflow: dispatch to supplier, use invoice of type B and TIO with R in the field Third-Party Possession.
• Return in Inflow: return of dispatch already made to supplier, use invoice of type N and TIO with D in the field Third-Party Possession.
• Return in Outflow: return of dispatch already made by the customer, use type N and TIO with D in the field Third-Party Possession.

You must note that the facts generating records in the detailed file of third-party possession are dispatches, both in inflow and outflow.

The following tasks are performed when a product is sent for processing:

1. Register a processing code in the structure.
2. Issue an invoice of the raw material concerning the dispatch for processing. This invoice is saved in the file of balance in third-party possession, for your control, invoice by invoice.
3. Open a PO concerning the product that will be the result of the processing.
4. By receiving the material through the inbound invoice, enter the processing product code and previous PO number. A request for the same product for the referenced PO can be generated.

To control third-party possession, the modules Invoicing, Purchases, and Inventory/Costs are required.

Triangular Operation

Triangular Operation consists of a transaction involving more than 2 companies for one processing event.

It can be exemplified as follows:

Company A sends material to company B for processing. Company B sends it to company C, which must do the work and return the material directly to company A.

Hence, the Dispatch Invoice for Processing is sent to company B while the Return Invoice of this material is sent by company C. The adjustment made in this routine enables materials in third-party possession, for a supplier, to be written off by another supplier.

To use this concept, configure the parameter Triangular Operation (S/N)? in Sales Order and Inbound Invoice. Parameters are accessed through [F12].

In these cases, the Origin Invoice can be accessed by pressing [F7] on the field Amount. All the Product Invoices involving Third-Party Possession are