Dear all
I want to know that In case of transfer order, where we can define the G/L accounts, which will be impacted in case of transfer order ?
In transfer Order there are only Tranfer-From, and Transfer-to fields, which are not associated with G/L accounts, as these are just locations.
Transfer orders only allow using items. If you want to make some kind o G/L accounts operations you should use General Journal.
Dear Nuno Maia,
Sorry, I am not agree with your statement, Transfer orders are also like Purchase order and Sales Order.
In Transfer Order , Receiving Party(location) should be debited and sending party(location) should be credited.
How to achieve this Without using General Jounral ?
When I posts a Transfer order , 4 G/L entry gets created in my system.
Goods-in-transit 100
Inventory adj. -100
stock-Delhi -100
Inventory adj. 100
I have newly joined this co. This is why I was confused, How these G/L accounts were associated with Transfer Order ?
Prakash, I assume you are using SKU.
As items could have a different unit cost per SKU, the application has to adjust the corresponding G/L accounts. That is the reason why you ahe the G/L entries.
People often forget the “value” behind an item and just count it. If you remove the item from you stock (-> InTransit) you have to remove the value from the G/L as well.
Each Item has an Inventory Posting Group attached.
In the Inventory Posting Group you define the inventory account, your stock if you like. This can be split by location, it really depends if you hold your GL inventory valuation by location or not. If you specify the same account you will see the value still moving in and out as at times the value maybe in-transit.
The balancing transaction comes from the General Product Posting Group, here the inventory adjustment is defined per item. This is not location specific so you should see the cost of the transction moving.
This is all pretty basic standard system processing and setup. I would strongly recommend you get yourself some basic training on Navision to help you along, you will not get everything you need from a forum like this, we can only do our best!
I assumed that you wanted to transfer G/L accounts. Such has in PO you can post directly to G/L accounts. Every Item operation will reflect to G/L accounts. Item transfer will be reflect to G/L has a positive adjustment and a negative adjustment.
Well, After discussing the matter with our Finance people, I came to know, that, In case of transfer Order, Inventory will be increased at receiving Place and Inventory will be decreased at sending Place. There won’t be any Financial impact. Cause, It is simple stock transfer from location to another location of a company.
Also, After posting the Transfer Order from first Place i.e. ship, It will be shown in Goods-in-Transit Account. When It will be receipt at receiving location, Goods-in-transit will become 0.
Dear all,
I want to know, Where the Goods-in-transit(COA) ledger account used to be assigned to a Transfer Order ?
In Inventory posting group and General Product Posting Group, there is nowhere Goods-in-Transit account mentioned.
So, Where and how to associate Goods-in-transit account to a transfer order ?
The Goods-in-Transit is a “location” not an account, any value in here will be your “inventory”. If you look in the Inventory Posting Setup you will see a location column, in here the in-transit location will be specified, and the “inventory account” is what you are referring to as your goods-in transit ledger account. It is simply the valuation account at a location so is no different to your main stores in this respect, it simply has stock in it that is valued.
Dear AdamRou
In my case, there is a COA ledger(goods in transit). When I am shipping an item through Transfer Order, It is affecting inventory account(which is mentioned in inventory posting group) and at the same time it is affecting COA ledger(goods in transit)
e.g.
100(value) inventory is shipped
inventory account(A)— -100
goods in transit----100
when I am receiving it at second location
inventory account(B)— 100
goods in transit ---- -100
Now goods in transit ledger has become 0
Now my question is How this goods in transit(COA) account is getting affected at the time of shipping and at the time of receving.
As, I have recently joined this company, I am not sure whether it is customization or in built functionality of Navision.
If it is customization, then I will consult my vendor. If not, then How it is affecting goods in transit(COA) as nowhere this goods in transit(COA) is mentioned or specified in setup.
I suggest you go to the Chart of Accounts and go to your goods in transit account, then select the account button and where used option.
As standard the two accounts hit are the inventory adjsutment and inventory accounts as I have previously discussed in the post. If your processing is not hitting the inventory adjustment account, but instead a hard-coded goods in transit account you cannot define anywhere then yes I would say this is a modification and yes you should consult your vendor regarding this.
Dear AdamRou,
Thanks a lottttttttttttttttt for your suggestion. Actually, It is there in inventory posting group. In inventory Posting group, we have defined in-transit-code as location and goods in transit(COA) ledger is associated with it.
I saw the “where used” option in COA then I came to know where this account is defined.
And one more thing, Transfer order is affecting inventory account, inventory adj. account, goods in transit accout.
I am really very thankful to you.