Hi Jeff,
You are increasing the value of your inventory, by changing the cost (in your example) to 1.25. I would offset this against the freight invoices that you receive, or your own freight costs if you do the physical transfer.
i.e. Code your transfer freight costs (invoiced or in-house) to a specific G/L account, and then journal your inventory gain (intransit delta) against this account. You may have differences in the G/L account (depends how accurate your cost differences are), but this is just a variance against standard.
Dave.
-----Original Message-----
From: mapics-l-bounces@xxxxxxxxxxxx [mailto:mapics-l-bounces@xxxxxxxxxxxx] On Behalf Of Jeff Snyder
Sent: 26 April 2011 16:43
To: mapics midrange
Subject: [MAPICS-L] Inv transfer Question.
Hey Group,
I have an account that has 2 physical plants. They transfer some component items from one to another. The issue is they would like to apply a different cost to the component at the receiving facility to include the freight cost.
We are discussing setting up 2 Sites (EPDM).
The question is we transfer the inventory from one to another, we do not sell it. example: if the cost is 1.00 at the production location, Plant A and 1.25 at the receiving location, Plant B. (Std Cost).
When we transfer the component we can credit Plant A's inventory for 1.00 and debit intransit for 1.00. (IW). What do we do when we receive at plant B? The inventory will be received at 1.25 (RW).
We could debit the Inv account - plant B, and credit another intransit - in for the 1.25. But how do we clear the delta at the end of the month between the two intransit accounts? (.25)
I think we would need to clear these two accounts with a journal entry and the delta hit an Inventory adjustment account. (add up IWs against RWs).
Any other thoughts?
Gathering info.
Thanks,
Jeff
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