Customer Owned Inventory Best Practice

This is posted for information and idea sharing. I had a client who was looking for recommendations on how to handle Customer Owned Inventory and below is how I responded to their questions. Attachments are included to show how these solutions would work.

If your company has experience with Customer Owned Inventory please respond as to the business scenario involving Customer Owned Inventory and how you have adapted JDEdwards EnterpriseOne to address your specific business requirements.

QUESTION
Client has Customer Owned inventory on hand in its warehouse. The customer owned item is consumed through a service and is shipped out (returned) with a zero price on the customer item on the sales order but the client needs to add a line to the sales order for the freight and any value added services that were provided. Need to determine best approach for billing the customer for handling the product and for freight. Is there a best practice for how JDE handles this type of activity?