Where stock is centrally located in one entity but sold by more than one entity, it may be desirable to sell the stock without the need to first perform a traditional purchase and sale between entities beforehand. This may be to help consolidate purchasing power, centralise warehousing, or to remove the need to purchase new stock to fulfil an order where it is already in stock within one of the other company entities.
Setup
1.Set up Security for inter-company transfers.
Jobs:  |
Purchases:  |
2.Create an Item to be used for inter-company transfer sales ie: INT.SALE. If necessary, select those users who can perform transfers.
3.Enable Inter-company transfers in Options.
4.Set up price levels.
5.Apply the price level to all the company entities.
4.Create stock price templates that reflect the cost+% to be used for selling inter-company.
5.Apply the price templates to stock records. This can be done individually on each stock record, or via a filtered list.
Showing how to update all stock in the list
6.Update applicable locations to allow intercompany transfers. This is the location(s) required to be available to sell from via the different entities.
There is also a configuration option which allows sharing one or more stock locations between entities, as well as various areas of the job stock and stock selection functions within in Jim2.
Visibility of shared location via Available Stock window:
The image above shows that, whilst the order is for Company 4 (Entity 4), the additional stock location from Company 1 is displayed.
The operator can choose to select that location in the dropdown (as per the image below).
By selecting the alternative stock from the shared location, the stock line location is automatically updated on the jobs when OK is clicked by the user.
The user can complete the sale, virtually selling stock the entity does not yet own, and nothing further is required of the user.
At any time throughout the month, the Inter-Company Transfer functionality is then used to finalise the purchase and sale requirements to correctly transfer the stock, and appropriately update the underlying data to reflect the required arms-length intercompany transactions at a transfer price appropriate to your region.
The process creates bulk inter-company purchase orders and jobs, ready to be set to finished and invoiced, with minimal fuss or administrative overhead.
Stock Selection Update
Options allow for stock locations and stock attributes to be displayed to the user by default.
Inter-Company Stock Transfers
Much like the process above but, where the movement of stock is to be performed in bulk for whatever reason, and regardless of pending sale to customer, the operator can create and transfer stock from one company to another, again without the undue administrative overhead of manually creating purchase orders and opposing sales orders and invoices.
the example below shows how Company 4 has generated an Intercompany Purchase from Company 1.
When this purchase order is set to Received or Finished, the corresponding job for invoicing is created against Company 1.
The user now only needs to invoice the job to Company 4 to complete the transaction.
Jim2 will check if linked purchase orders have not been finished.
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It is not possible to Create Similar for inter-company purchase orders.
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When running a purchase order list, it is possible to filter the list by inter-company transfers.
Further information
CardFiles, Jobs, Quotes, Purchase Orders