Inventory Transfer to External Branch
Inventory Control Menu -> External
Branch Transfers Menu -> Inventory Transfer to External
Branch
External Branch transfers occur when equipment is moved from one
location to another, but the two locations are running on separate
software applications or in separate companies.
e.g. 1 branch in Vancouver, and 1 branch in Toronto.
For other inventory transfer processing features, refer to
options outlined in Inventory Transfer Methods
Overview.
External Branch Transfers Overview:
With the External Branch processing
each branch has its own inventory accounts and each branch is
responsible for tracking their own inventory.
In order for the Head Office location to manage the transfers in
the company wide books, the same Chart of Accounts, and Product
Classes should be used by all external branches.
When equipment is transferred, it is useful to generate 3 copies
of the transfer:
1 copy for the FROM Branch, kept for
your records
1 copy for the TO Branch, to be sent immediately (and a Pick List
goes with the equipment)
1 copy for the Head Office, to be sent immediately
- Transfer Posting:
- To facilitate the branch transfers, an inter-company inventory
clearing account is setup for each Branch in the General Ledger
usually as a Liability account.
When equipment is transferred out using Inventory Transfer to
External Branch:
- The product quantity is immediately removed from the inventory
count in View Inventory Quantity Changes
at the FROM Branch
- An inventory transfer entry is automatically recorded on the
Rental Journal which posts with Daily
Close 3.
Example inventory transfer postings:
Rental Inventory is CREDITED Acct# 1300 with the original cost
Accum. Depreciation is DEBITED Acct# 1301 with the accumulated depreciation
Branch Inventory Clearing DEBITED Acct# 2900 with Net inventory transfer
The journal entry shows Source = Transfer #
Reference = XFER TO "branch name"
Details = Product #, EXTERNAL TRANSFER
Receipt Posting:
- When the inventory is received at the TO Branch, it is entered
in External Branch Receipts usually based
on the information on the Print External
Transfers by Class.
When inventory receipt are entered in External
Branch Receipts:
The inventory receipt entry looks like this:
Rental Inventory is DEBITED Acct# 1300 with the original cost
Accum. Depreciation is CREDITED Acct# 1301 with the accumulated depreciation
Branch Inventory Clearing CREDITED Acct# 2900 with Net inventory receipt
The journal entry shows Source = Transfer #
Reference = FROM "branch name"
Details = Product #, EXTERNAL RECEIPT
Balanced Transactions for Completed Transfers:
- If both branches record the transfer and the receipt, after
each branch is consolidated into the Head Office General Ledger,
the Branch Inventory Clearing account at the Head Office will net
zero.
If it is not zero, then view the details in the clearing account to
determine if a receipt is missing.
Refer to Consolidate Summarized G/L
Trx's for details on Consolidating the General Ledger on an
Oracle database.
All equipment transfers and receipts should be recorded, before
the month end depreciation is run. The depreciation information on
the Transfer Report is designed to ensure continuity of
depreciation, even after the equipment has been transferred to
another branch.
Note: The security by division feature as determined by Divisional Restricted Views, does NOT apply
to External branch transfers.
Enter the External Branch Transfers being shipped as
follows:
-
- TRANSFER #
- Accept the next available transfer number as controlled by the
Last Used Transactions for RSBX, or enter
a preferred transfer number.
A window is provided to view and select from previous transfers
as outlined in Transfer Number Search.
Existing transfers can only be viewed as change mode is not
permitted, due to the automatic journal entries which accompany a
transfer record.
POSTING DATE
- Accept today's date or enter the posting date which applies to
this inventory transfer.
This date will be used on the inventory transfer transactions that
post to the G/L in Daily Close 3.
Date Range Control:
If the operator does not have the
ability to over-ride the current date range, the transfer date will
be checked to make sure the date is valid against the date ranges
set as acceptable for module RSPM in Date
Range Control.
FROM DIVISION
- Enter the division that is transferring this inventory or
select it from the drop-down list.
This becomes the Out division when the inventory transfer journal
entry is posted.
TO COMPANY
- Enter the Company Code for the TO Branch, or select the
company from the drop-down list as setup in External Branch Transfer Company Codes.
The Company Code determines the inter-company inventory
clearing account for the G/L posting.
INTERCO. ACCT #
- The inter-company account assigned to the To Company
will display for reference only.
TRANSFERRED BY
- Accept the current Operator ID, or type in the correct Operator
ID.
This operator code is displayed in the Transfer
Number Search and prints on the Print
External Transfers Report by Class.
TRANSFER NOTES
- Use up to 60 characters for any notes on this transfer.
e.g. delivery shipment number, or method shipped, or other
authorization.
These print on the Print External Transfers
Report by Class and Pick List generated from Print External Transfers.
Transfer Details:
-
- SEQ
- A new sequence is generated for each entry to tack the
transactions in the transfer database table.
PRODUCT #
- Select the rental or sale product to be transferred or select
it from the Inventory Search window.
DESCRIPTION
- The product description displays.
LOC
- Select the location from which the inventory will be
transferred from the drop-down list.
The on hand quantity at each location is displayed for reference in
this drop-down.
CURRENT QTY
- The quantity currently at the selected location will
display.
A transfer cannot be for MORE than is currently at this
location.
TRANSFER QTY
- Enter the quantity to be transferred.
Asset Tag To Transfer:
- If the product being transferred is a rental item, a window
will automatically open to select a fixed asset tag and capture the
appropriate Accumulate Depreciation G/L Account, as follows:
- TRANSFER QUANTITY
- The total quantity being transferred on this transaction is
displayed.
- QUANTITY SELECTED
- The quantity for which Fixed Asset Tags have been selected is
displayed.
Before exiting this window, the Transfer Quantity needs to
equal the Quantity selected.
Tag Selection details:
- ASSET TAG#
- Select the Fixed Asset Tag to be relieved by the transfer
quantity from the drop-down list that displays Asset Tags available
for this rental product, with the quantity on each tag, and the
serial numbers.
QUANTITY
- Enter quantity to be transferred from this tag.
ACCOUNT TYPE & ACCOUNT #
- The following information for three G/L accounts display:
RENTAL INV: The inventory account is selected according to the
Product Class for this product and cannot be changed.
ACCUM DEPN: Window to look up and assign the correct Accumulated
Depreciation account that is associated with the Rental Inventory
Account displayed as the Rental Inv.
INTERCOMP : The Inter-company Inventory Transfer clearing
account, is based on the TO COMPANY CODE selected above and cannot
be changed.
AMOUNT & D/C
- RENTAL INV: The Original Cost will display as a C - Credit
ACCUM DEPN: The Accumulated Depreciation will display as a D -
Debit
INTERCOMP : The Net Transfer amount will display as a D -
Debit
Finished?
- Click ACCEPT when the require number of tags has been selected,
to exit the window and start the next product to transfer.
Serialized Sales Numbers To Transfer:
- If the product being transferred is a serialized sales product,
a window will automatically open to select the serial numbers, as
follows:
- XFR QTY
- The total quantity being transferred on this transaction is
displayed.
- SELECTED
- The number of Serial number selected is displayed.
Before exiting this window, the Xfr Qty needs to equal the
Selected.
Serial Number Selection details:
- SERIAL NUMBER
- Select the serial numbers from the drop-down list from the
serial numbers available at this location.
Note: If the serialized sales item has no serial numbers in the
window (i.e. uses "Time of Sale"), the serial numbers must first be
added manually in Sales Products.
Finished?
- Click ACCEPT when the require number of serial numbers has been
selected, to exit the window and start the next product to
transfer.
Finished?
- When the items to be transferred on this Transfer ticket are
completed, click ACCEPT to proceed or CANCEL to abort.
Confirmation:
- Select one of the options:
Note: Whenever the average cost for a product is changed, use
Post Product Average Cost Changes to print
an audit report and to generate the G/L postings for the change in
the Inventory value.
ACTIONS:
Additional actions provided by buttons on
the Inventory Transfer to External Branch screen
include:
- Print External Inventory Transfers or Picking Lists for the
Transfers:
Click the PRINT button to select and print a range of
transfer documents as outlined in Print
External Transfers.
-
Reverse and Delete an External Inventory Transfers:
To reverse the transfer postings in the G/L and to return the
product quantity to the location, click the DELETE
button to change the screen to "delete mode" then enter the
External Transfer number or select it from the Transfer Number Search window.
Confirmation is required.
Reversing journal transactions will be posted in the next
Daily Close 3.
Topic Keyword: RSBX01