Inventory held by third parties
In one sentenceGoods the business owns that are outside its warehouses, with a distributor, a rented warehouse or an agent, and that are part of its inventory.
Simply put
Ownership is the test, not location: your goods at a distributor or in a logistics company's warehouse are still your inventory.
At the year-end count, ask the party holding them for a confirmation, so you do not forget to include them.
Worked example
A factory counted its warehouses and found goods worth 500,000 SAR, and it has unsold goods worth 120,000 SAR with a distributor in another city.
Inventory in the factory's warehouses500,000 SAR
Inventory with the distributor120,000 SAR
Inventory shown in the statements500,000 + 120,000 = 620,000 SAR
Don't confuse it with
Consignment inventoryFor the distributor they are consignment goods it does not record, and for you they are inventory you record.
in FullScreen ERP
The system shows each item's balance in every warehouse in real time, with multiple warehouses and branches. Warehouses and items