Offsetting PO line items

[mjasper]

I have not found what I consider an acceptable way to transfer inventory and cost it at the same time.  The solution I would have liked to have would be to have positive and negative PO Lines and then the ability to do a landed cost as well.  Then when I transfer 20 pallets of XYZ I can put PO line to the 3PL vendor for the new cost of the items that we will incur from them when they receive the stock.  (eg. receiving fees, put away and initial storage) placing the inventory now in that designated warehouse for fulfillment of related customer orders.  Then I add a negative 20 pallets of XYZ for the current cost of the items and not their location etc. (we use produmex).  Then if I use a seperate freight company to transfer the inventory it can use the landed costing to top off my unit cost at the 3PL location.  I have fiddled in test data but it will not allow me to have a negative PO qty.  I have used another ERP solution in the past that did allow me to both have postive and negative units on PO and then they netted to the ultimate vendor invoice I was going to pay for 3PL fees.  And then of course pay freight company if different using the Landed costs.  Seems like the cleanest way to do this surely it can be done somehow?

[BattleshipCobra]

Hello, I have read this a few times and want to help but it's really unclear to me.

You could just do multiple landed costs if you had landed costs X 3PL costs.  Even at different times you could keep adding cost to the stock.

Why are we wanting to do positive and negative rows on a PO?  Wouldn't you want the PO to match the GRPO to match the AP Invoice to pay it?

To adjust the inventory balance, the landed costs should be able to handle stock adjustment scenarios.  You could also use Inventory Revaluations.

I realize you have probably been staring at this issue and have been inside and out with your experimentation but if you could outline A) what you are trying to ultimately achieve and then B) maybe a more specific example I think it would help us to make suggestions.

Thanks!

[mjasper]

The objective is to move product XYZ and update the product unit cost for the transportation, Handling here and initial fees and handling at the 3PL. Releiving inventory at the main warehouse and increasing inventory counts with lot information from Produmex at the 3PL warehouse. Let's say XYZ is a case and it has a Main warehouse production cost of $10. Then we move it to th 3PL incurring $.25 in transportation, $.25 in Main warehouse handling and then $.50 in 3PL onboarding so that the XYZ case should now be in inventory there for $11. Seems like we should be able to do that with positive and negative lines on a PO. Have landed cost for transporation. increase value of item going to 3PL by amount of fees. Otherwise it looks to me like you do a transfer. Then revaluation for the cost to move. Enter an A/P item to get the 3 PL paid and transporation paid. None of which is linked together for any sort of audit trail. I guess in short I want to use the PO and then GRPO (with the negative line) as a replacement for the transfer and revaluation and to give better relationship visability as an audit trail...

[mjasper]

Sorry. I will start putting my notes in Word and proofread better before copy and paste here.

[BattleshipCobra]

I just did this for a customer using B1UP, they use a lot of 3PLs and they want to track cost like this.

I added a field for a carrier invoice to the transfer and then made an automated mechanism that divides the cost between the quantity and does an inventory revaluation in the background.  Everything is linked through "Referenced Documents" so it shows up on the relationship map.

[mjasper]

Does your B1up work around allow for multiple invoices? We are likely to have transportation from one vendor and then fees from the 3PL as well as our own internal warehouse time which admitedly will be nominal. I have to believe this is an issue for a number of SAP users as I think your crafting the workaround points out...

[BattleshipCobra]

My B1UP customization currently does not do multiple invoices.

They do landed costs for landed costs, this is just for carrier costs for transport from 3PL to production. They roll their other costs into production. I work with a ton of customers, this is not a common issue.

From an accounting standpoint it's overkill. This is a "nice-to-have" which I agree gives you a better degree of visibility but it's not an "add-on" I would publish.

But anyways, if you run B1UP you can do whatever you want (given some B1UP / SDK knowledge). But expecting SAP to change because it's your requirement, you will be waiting a loooong time. Hit me up on LinkedIn if you have more questions (http://linkedin.battleshipcobra.com/), check me out on YouTube (http://youtube.battleshipcobra.com) for SAP Business One videos.

[mjasper]

Thanks for the input. I will take it that the software requires modification to accomplish this simple task. AS to overkill. Yes I do go all the way down the rabbit hole and then back out what is reasonable after getting as full a perspective as I can. Consumer goods firms that are not truckload suppliers to major retailers are going to have to master 3PL channel and understanding the costs are more critical the slimmer the margins. I also have a friend that uses CMS that is struggling to simplify sending outwork. They would benefit from the positive and negative PO as well. They send a raw material out get the operation completed. Put the total of the component sent out as negative PO and then total of the new component at the original plus the cost to process and they account for the inventory and pay the vendor bill all in a process users know and use. Thanks again for your time have subscribed on YouTube and checked LinkedIN