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With this blog, I explain how you can work with externally-owned stock in SAP Business ByDesign.

Warehouse managers want sometimes to store products that are owned by another business partner, such as supplier or customer, for example to store products for demo purpose or for prototyping. The reason is they want to locate these products in the warehouse until they are returned or used.

Now, you can receive and withdraw externally-owned stock with a reference to the owning business partner, move it within the warehouse or change from restricted to un-restricted or set it in ‘inspection’ or the other way round.

With the help of the common task “New externally-owned stock adjustment” in the Physical Inventory Work Center, you can perform absolute quantity posting, receiving additional quantity, or issuing of externally-owned stock

New Externally-Owned Stock Adjustment

The resulting confirmation ID is also visible in the confirmation journal. It will not create a journal entry in finance since it is not in your ownership.

Furthermore, you can move the externally owned stock in the warehouse with the “Goods Movement” Common Task as well as change the restricted indicator or the “Change of Stock” Common Tasks in Internal Logistics Work Center. With selecting the check box ‘Externally-owned Stock’, the Owner ID field opens up.

Goods Movement enabled for externally-owned stock

Consequently, you can see in the stock overview the different owner. If there is no document ID tagged  – that reserves the externally-owned stock for Third-Party Order Returns or for repair – the above-mentioned activities can be processed.

Stock Overview with different owner (externally-owned stock)


Externally-owned stock is also available for externally-managed warehouses (Third-Party Logistics – 3PL). To use it manually with the “New Inventory Alignment of externally-managed location” Common Tasks, you need to enable the externally-owned stock indicator and the owner fields in personalization.

The externally-owned stock functionality

  • is not transferred to finance, since it is not in your ownership

  • is not considered in planning

  • is not available for outbound delivery processing, neither in source logistics area determination nor for manual selection

  • is not considered for physical inventory count

For a short system demo please have a look at this video.