When the ownership of an item changes, payment is due andinvoicing is initiated. In traditional, non-VMI business scenarios, the ownership of anitem changes from the supplier to the customer after the customer has receivedthe item from the supplier. The customer must pay for the item on receipt ofthe goods. In various subcontracting scenarios, ownership will not changeduring any of the inbound or outbound warehousing processes. In such cases, theownership is customer owned. For further information on subcontractingscenarios, see Overview of subcontracting. In vendor managed inventory (VMI) scenarios, the ownership can be consigned. If the ownership is consigned, the ownership change is either time based or consumption based.
If a supplier delivers various items to a customer, a separateagreement or separate legal requirements may apply to each type of item. Fortime-based ownership change, the period of time is laid down in the terms andconditions of the contract between the customer and the supplier. For further information, see: Terms and conditions Ownership behavior, that is, if or when the ownership of thegoods changes from the supplier to the customer, is laid down in the contractbetween the business partners. The terms and conditions of the contracts can bedefined by item, business partner, and/or warehouse. For more information, refer to Overview of terms and conditions in the User Guide forTerms and Conditions (/guides/U9499AUS). Ownership behavior is defined in the Payment field of the Order Terms and Conditions (tctrm1130m000) session and the Time-based Ownership Change after Receipt and Time-based Ownership Change after last Transaction fieldsof the Logistics Terms and Conditions (tctrm1140m000) session. The Warehousing package uses the terms and conditions settings to determinehow to deal with ownership in warehouse handling. Note that the terminology used in the terms and conditionsdefined in Common differs from the Warehousing terminology:
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