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party entiled to dispose and custodian

Experts,

Can someone please explain the difference of party entiled to dispose and custodian.

I am aware Party entiled to dispose is the one who holds the title to the goods stored in the warehouse.

Please let me know the other differences. Thanks

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1 Answer

  • May 22, 2014 at 01:42 PM

    Hi,

    you actually have to distinguish between three roles: Custodian, owner, and Party entitled to dispose.

    The custodian is the owner of the warehouse and the one who has the physical access to the material (means he can hit is with a forklift).

    The owner is the owner of the stock, means he is the one who can find the material in MMBE on plant and storage location level (looking at in in ERP terms).

    The party entitled to dispose is the one who can tell the custodian what to do with material belonging to a certain owner. Now, when do you have that? Indeed, in consignment stock. But then the supplier is still the owner, the party entitled to dispose is the plant who has received the material.

    The custodian is a role you actually do not see anywhere. Guess you found it and that is where the question comes from, you have to assign it to the warehouse. Usually this will be the same business partner you have for you plant (which will also be the owner, in case it is not consignment stock). The custodian is not in any postings or something. It gets interesting if you have a third-party who owns the warehouse and works for you - the question only is then why you run the warehouse management system for them?

    The owner and party entitled to dispose always comes as information in the delivery.

    That means that in the cases where you run your own warehouse and you have no consignment stock - all three are the same. The owner and the party entitled to dispose can be different if you have supplier consignment stock (not customer consignements, because that usually means that you have sent the material to the customer as consignment stock, but then it is not in your warehouse anymore).

    Brgds

    Juergen

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