Handling Multi-Site/Multi-Database Inventory Transfers

jeffs

We currently have our VISUAL system set up with three separte databases for three remote locations, US, UK and China. We often transfer inventory between locations. Our question is what is the best method for receiving inventory at the destination location to ensure that upon shipment from the sending location, the inventory is immediately owned by the destination.

We are currently exploring setting up the sending location as warehouses in the destination location, creating purchase orders for receipt in those new warehouse locations and then creating IBT's in the destination database from the sending warehouse locations to the destination warehouse locations.

This seems cumbersome, but more efficient than receiving a purchase order into an in transit location and then manually performing inventory transactions for each line item when the shipment finally arrives at the destination.

Are there other options for handling this sort of inventory and what are the out-of the box offerings for these sorts of scenarios?

Thank you.

unknown

We have a similar situation between our locations in the US, India, United Arab Emirates and Saudi Arabia. As far as I know, there is no out of the box functionality that Visual has when dealing with separate legal entities especially across different databases (like the Interbranch Transfer that works really nice for the same legal entity in a single database). As with everything it comes down to how much control and visibility you want. All we really care about, at this point in time, is the financial impact so here’s what we do:
- We have a purchase order and sales order between the two entities (each entity is a vendor and customer in each other's databases)
- The shipping entity ships as normal and bills the receiving entity
- At the end of the month if the receiving entity has not yet received the product they do a reversing Journal Entry to Debit an Inventory Intransit Account and Credit a Due To/Intercompany AP Account. This gives us the right Asset and Liability numbers for reporting purposes. If we had a partial receipt then we just journal the portion not yet received.

If you come up with a better idea please share. The bigger question is how do you handle elimination of profit in inventory during consolidation?