Purchase Order and its relationship with customer property

D

debbie135

#1
Hello all

Would a customer PO be regarded as Customer Property and therefore require a mention in 7.5.4 please !

Debbie
 
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Q

qualitychic

#2
Re: Purchase Orders and it's relationship with customer property

I'm guessing the customer PO in this case is the PO that your customer gave you when they place an order. If this is the case, then this won't be regarded as customer property. Take a look at 7.2.

Customer property is for things like customer drawings, customer specs, customer testing equipment...
 

Jim Wynne

Staff member
Admin
#3
Re: Purchase Orders and it's relationship with customer property

Hello all

Would a customer PO be regarded as Customer Property and therefore require a mention in 7.5.4 please !

Debbie
Qualitychic's offered a good response, but I'd like to add that you don't have to "mention" any particular items "in" any clause of the standard; your documentation doesn't even have to reference clauses of the standard at all. If you do have customer-owned property, you don't have to cite all of it explicitly in your documentation. All you have to do is describe how customer-owned property is handled and preserved.
 
J

Jeff Frost

#4
Just a quickie reminder about customer property; it is any thing that the customer gives you to produce the product including what has been mention by others and any raw materials, components, and intellectual proprieties.
 

Wes Bucey

Prophet of Profit
#6
The engineering drawing which may accompany a purchase order for custom-made product WOULD be included under "customer property" in terms of caring for it by protecting it from damage, alteration, or loss. I believe Jim is correct in that no specific type of customer property needs to be entered in your documentation, merely the inclusive term "customer property."

That said, I have seen some obsessive-compulsive types add a definition of customer property. Some definitions I have seen include clauses like the following (remember - MOST organizations do NOT do this):
  • "any documents or physical items which the customer expects to be returned"
  • "documents, samples, or tooling provided or paid for by the customer which the customer expects returned upon request."
My personal opinion is that such additional detail is not wrong, but certainly not required.

:topic:In my own experience, I held "gold samples" of customer-provided products for years until the product became obsolete after engineering revisions. When I offered to return the samples, I received written notice the customer considered them "scrap" to dispose of as I saw fit. In the case of engineering drawings which became obsolete, I had a clause I added in my acceptance of contracts which allowed us to scrap the drawings unless the customer specifically requested return of the obsolete copy when issuing the new revision. This was simply because I didn't want any obsolete documents around to prevent their accidental use.
 
W

wmarhel

#7
A purchase order is a legal contract between the supplier and the customer. I would argue that it is the property of both since it addresses, or should, all the parameters, deliverables, and receivables required for both parties.

This is in addition to any non-disclosure agreements, or other legal requirements.

Wayne
 

Wes Bucey

Prophet of Profit
#8
I think "dual ownership" of a document is not really accurate. In the case of a manufacturing process, we often talk about the "ownership" of the process, but we really mean something closer to "responsibility for and commitment to a concept" than the type of ownership of an object.

In the case of a purchase order, buyer and seller share responsibility for complying with the terms, but the document itself has no intrinsic value other than as a memorandum of an agreement, whereas exhibits which accompany a purchase order are often described as being "attached to and made part of [this purchase agreement]" and may or may not be considered by buyer as "returnable property."

For the purposes normally used in business, I think "customer property" is commonly thought of as physical items (documents or "things") which are consigned to the temporary custody of the seller.
 
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