"Virtual", "Non-Conforming" Warehouse

[Frosty the Coder]

\"Virtual\", \"Non-Conforming\" Warehouse

I was asked about setting up a warehouse, to which we could transfer expired stock.
The warehouse wouldn't PHYSICALLY exist, it would merely "be there".

My thought is to copy the existing b/p into a new b/p, and transfer the inventory.

Is there a better approach to this?

Please AND Thanks
Gene

 

[tpayne]

Re: \"Virtual\", \"Non-Conforming\" Warehouse

That's a pretty simple solution and I don't think it will cause any problems.

Another way is to move the inventory to a Location for each item to identify the stock as Expired. However you need to make sure this inventory does not get included in the available qty etc. It should be easy to report on expired stock by selecting just this Location.

The nice thing about your solution is that the inventory is completely taken out of the business unit, but from an accounting viewpoint it might cause some issues, plus you need to maintain the Cost Center, extra Item/Branch records etc. By just transferring the inventory to a different location you eliminate a lot of that.

Hope this helps.
Tony

 

[Frosty the Coder]

Re: \"Virtual\", \"Non-Conforming\" Warehouse

My idea was shot down as there would still be a "cost" associated w/the item in the new b/p.
I don't understand how a "virtual" warehouse wouldn't have a "cost.

Gene

 

[curryj]

Re: \"Virtual\", \"Non-Conforming\" Warehouse

I think your idea will work fine. If the objective is to write off the cost of the expired inventory but still keep track of the quantities in a virtual warehouse, then you can set up your new "Expired" branch plant, and for each item you wish to put there, set up a standard cost in that branch of zero. (Assuming your system is set to have different costs by branch plant.)
Then you need to set up the 4141 AAI for the inventory transfer document type you're going to use to remove the inventory from the real branch plant and put it in the new one. This AAI specifies what GL account to use to charge the difference between the cost in the "from" branch and the cost in the "to" branch of a transaction.
Then you can process a simple inventory transfer transaction every time you want to write off expired inventory, and the process of moving it to the "Expired" branch will automatically make the journal entry to write off the cost.

 

[Frosty the Coder]

Re: \"Virtual\", \"Non-Conforming\" Warehouse

OUTSTANDING!
I will "refly" my idea w/this addl info.
Thank you VERY much.

Gene