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Processing of give-and-take

Processing of give-and-take raw materials is a procedure when an organization transfers stock and materials for processing to other organization in order to obtain the finished product. In this case the processing enterprise does not pay for the resulting materials and stock, but only performs the corresponding operation. Parties to the trade with give-and-take raw materials are the enterprise – owner of raw materials, of the one party, and the enterprise that is processing these materials, of the other party.

For suppliers of give-and-take raw materials, such an arrangement is advantageous because it allows them receiving finished product without having their own production facilities.

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