Business Units / Departemental Inter Relationship

apickard

Dear all,
we have a situation such as the following -

Department A buys stock (let's say at $4.00) and will transfer/sell this stock to Department B. Department B will then sell this stock to the client (let's say at $6.00 - Sales price as default on Item Card). My issues are as follows -

1. Profits generated ($2.00) need to be shown as done by Department A.
2. If such stock is transferred from dept A in January, but Department B sells stock in March, Department A should show it's profits (as default on Item card) in January not March. Any related over/under profits as per actual sale to client are to be incurred by department B.

Any ideas how Navision can tackle such situation. #-o
Thanks in advance.

HsinChuMark

Hi there,

Consider to open two companies in the database, this is the easiest and most transparent way to show stock movements and costs (and hence profits) among business entities. You may want to use IC transactions handled automatically by NAV (purchase order from company A = sales order at company .

Mark

jannestig

have you looked at using responsability centers ?

"You can use the Responsibility Centre table to record information about your responsibility centre.

A responsibility centre can be a cost centre, a profit centre or an investment centre. Examples of responsibility centres are a sales office, a purchasing department for several locations, and a plant planning office.

You set up responsibility centres to help administer your business. For example, a responsibility centre can administer sales and purchases for one or more warehouses or distribution centres, where goods are handled and stored prior to use.

Each responsibility centre has a name (for example, the address of the regional office) as well as a code representing the name. You assign a code to a responsibility centre. This code can be used in the responsibility centre code fields elsewhere in the program.

For example, when you enter a responsibility centre code on purchase and sales documents it affects the address, dimensions, and prices on the documents. Entering a responsibility centre code on a Location card will mean that the location (for example, a warehouse or distribution centre) is administered by the responsibility centre represented by that code."

you could also do this by dimensions though you would have to keep tight control over cost /prices etc

apickard

Hi, just been following up this minute. Thanks a lot for your sharing ideas. I will have a thorough look at responsability centres since I've not been doing much with this functionality.

Regarding dimensions I've had also this idea but don't like since it's not a good way to handle sales/ transactions as mentioned above. As to Intercompanies, there are already related companies in this implementation so I don't wish to complicate it more.

If you have additional ideas, just throw them in. In the meantime will have a look at Resp Centres functionality. By the way any idea where to get more detailed info on the subject rather than just reading the manuals. Sometimes their examples are soooo trivial !!

Thanks a lot for your time