The ownership of packaging materials in circulation between the supplier and the customer can vary, with either party potentially owning them.
Ownership
| Customer | Service Provider | Supplier |
|---|---|---|
| The customer owns the packaging materials and is responsible for supplying the required quantity to the suppliers. | The logistics service provider owns the returnable packaging materials and makes them available to customers or suppliers for a rental fee. | The supplier owns the packaging materials used to deliver products to customers. |
In practice, more complex scenarios can exist where each partner owns a partial quantity of the packaging materials in circulation. Therefore, scenario-specific analysis and process design might be required to have accurate stock valuation and financial posting.
To support these various scenarios, SAP offers two material types for packaging scenarios:
- VERP: packaging material with type VERP is managed on value and quantity basis.
- LEIH: packaging material with type LEIH is managed only on quantity basis.
SAP customers can define their own material type as a copy of LEIH or VERP to address additional specific scenarios.