When a product is sent for storage/fixing/enhancement at third parties' facilities, a control over these amounts is enabled.

As to third party's possession, there are two basic situations:

With inventory movement

In the first situation, the System moves PEPS Costs (first to leave, first to enter), while in the second, it does not move costs. So, the System controls:

• Amount of third parties in our possession
• Our amount of third parties

No inventory movement

For the control in the second situation, the field Third Party Possession saves the net balance of the product which belongs to the inventory  that is in third party's possession.

The file Third Party Possession enables analytical reports/queries on these movements.

To be able to use this routine, fill out field Third Party Possession in TIO with:

R  - Remittance

D  - Remittance Return

After entering an Inbound Document and place the pointer on the field Amount, the [F7] key can be used to choose the Tax Invoice through what products, now received, have left the company.

• Dispatch on Inflow is a dispatch from your customer: use Type B invoice and TIO with R in the field Third Party Possession..
• Dispatch on Outflow is a dispatch from your customer: use Type B invoice and TIO with R in the field Third Party Possession..
• Return on Inflow is the return of a dispatch already made to your supplier: use Type N invoice and TIO with D in the field Third Party Possession.
• Return on Inflow is the return of a dispatch already made to your supplier: use Type N invoice and TIO with D in the field Third Party Possession.

When sending products for enhancement, the following tasks must be performed:

1. Register an enhancement code in the structure;
2. Issue an invoice for the raw material referring to the dispatch for enhancement. This invoice will be saved to the third party possession balance file, for control, invoice by invoice.
3. Open a PO referring to the product that is the result of enhancement.
4. After receiving the material by the inbound document, enter the enhancement product code and the previous P.O. number, so a requirement of the same product is generated for this P.O..

To control the third party possession, you need the modules Invoicing, Purchases and Inventory/Costs.

Triangle Operation

The Triangle Operation consists in a transaction which involves more than 2 companies for an enhancement process.

 Example:

Company A sends a material to company B for enhancement and it sends to company C which must work and return the material directly to company A.

This way, the Remittance Tax Invoice for Enhancement is sent to company B while the Return Tax Invoice of this product is send by company C. The adjustment made in this routine enables materials in third parties, for a supplier, can be written-off by another supplier.

To use this concept, configure parameter Triangle Operation (Y/N)? in Sale Orders and Inbound Document routines. The parameters are accessed by key [F12].

In these cases, the origin Tax Invoice can be accessed, pressing key [F7]  on the field Amount, where all Product tax Invoices involving the Third Party Possession are displayed.