@Tbandara what’s your purpose of holding customer owned stock? 

Normally customer owned stock is externally-owned stock that is supplied by a customer  with the intent that the material will be transformed (maintained, repaired, overhauled, or used as a component) and eventually returned to the customer.

Accounting transactions are not created for the inventory transactions because the parts are considered to have zero inventory value to the site company.

@EnzoFerrari It’s like keeping stock of a customer for storing until they collect it back. Inventory need to be tracked as customer own 

@Tbandara how did you receive them to the inventory? Did you do an ownership transfer in IFS from company owned to customer owned? 

@EnzoFerrari From Purchase order, for zero value. In Supplier for purchase part ownership is Customer owned.

@Tbandara if you used Order Code 6 (External Service Order) in the PO, it should create a CO in IFS to deliver the parts to the customer. 

See the help text. However it is aimed for the purposes I described above (repair, etc) only. Read more about ‘External repair Orders’ here: https://docs.ifs.com/ifsclouddocs/

Hi @Tbandara,
As Enzo, mentioned it could be received from an External Service Order and followed by a CO.
But even if not, you can deliver the part out using a customer order (OESHIP). But before you do the reservation, make sure you change the Ownership in CO line to Customer Owned. Then the Customer Owned part can be reserved and delivered. 
Part ownership in Part Serial will be still Customer Owned, with current position Issued.  
Hope this will help you. 

Did the suggestion help you @Tbandara ?

@EnzoFerrari @Vimukthi Mahakumbura Hi, Thank You for the insight. I issued the stock using the Customer order.