Transfer Order and In-transit Location Costing

Alex_Chow

BlackTiger wrote:

Feature (looks like I was wrong in dates):
1. Receive items: 20.02.2008, 10pcs, 10LCY each, LOC1
2. Create transfer #1 and ship items with Posting/Shipment Date = 20.02.2008 to LOC2
3. Receive items: 21.02.2008, 10pcs, 15LCY each, LOC1
4. Create transfer #2 and ship items with Posting/Shipment Date = 21.02.2008 to LOC2
5. Go to transfer #1 and receive goods with Posting/Receipt date = 21.02.2008
6. Go to transfer #2 and receive goods with Posting/Receipt date = 21.02.2008
7. Adjust item costs

I see ther "prefect" 12.50 cost for all entries for LOC2 and outbound entries for "in-transit"! It's completely wrong. All entries must be costed using "exact costing" and not "averaged".

Transfer orders through "in-transit" location not always a "good", sometimes it's "evil". Very ofter "direct" transfers are enough.

NAV 4.0.3. I will try it in 5.0 later but don't excpect any changes.

Here is NAV 5.0 screenshot with "feature":
http://byfiles.storage.live.com/y1pKq0iukjgNXixhmdPIBwqUkL4GjgUxQle_iYs7oOfmaljBKTivEiARSD-yrh2zjdp8LdCgt-zPg4

This is an continuation of the post here:
http://www.mibuso.com/forum/viewtopic.p ... 5&start=15

Again, I do not see anything wrong. If you transfer the items in the same location, on the same day, it will be averaged out.

It's the same concept as if you waited until the 2 receipts arrived and put them on the same transfer order. When it arrives, the costing will be averaged out per that location as well.

Alex_Chow

BlackTiger wrote:

Just give me instructions how to return exactly "15.00" or "10.00" items back to "LOC1". Using "Transfer Order" of course.

1. Use a separate In-Transit location
2. Transfer the items with different dates

Yes, these are work arounds. But I understand your point.

Typically, in a normal business practice, managers do not transfer the same item out with 2 separate transfer orders to the same location on the same day. For one thing, their freight cost will be extraordinary high and the time and resource to put them together will be high as well.

If the locations are close together and can be transferred on the same day, you may even use the Item Reclass Journal in place of the transfer order since it dramatically reduces paperwork overhead.

Personally, I do not think the software is at fault here. Rather, it's an opportunity to consult and optimize your customer's business process by providing them consulting on how to better their bottom line.

NAV is like a hammer, if you choose to hit your finger with it, don't blame the hammer.