Costing When Doing Transfer Order

We have multiple locations (about 30 locations all over the US) but only 1 location is setup as In-Transit location. For some cases, when we do transfer order from one location (west coast) to the other location (east coast) → for example LA to NY; the cost amount from Posted Transfer Shipment to Posted Transfer Receipt were significantly changed. The following are the records that I captured from the system: LA → IN TRANSIT Posting Date Item Ledger Entry Type Entry Type Cost Amount (Actual) Source Code 1/18/2006 Transfer Direct Cost -6,314.11 TRANSFER 1/19/2006 Transfer Direct Cost 1,565.11 INVTADJMT Total Cost Amount for this transfer is -4,749 IN TRANSIT → NY Posting Date Item Ledger Entry Type Entry Type Cost Amount (Actual) Source Code 1/18/2006 Transfer Direct Cost 6,314.11 TRANSFER 1/19/2006 Transfer Direct Cost -39.68 INVTADJMT 1/19/2006 Transfer Direct Cost -782.56 INVTADJMT Total Cost Amount for this transfer is 5,491.87 We posted the transfer receipt right after we posted the transfer shipment, it means we posted both under the same day. I am thinking the cost changes are because of the system takes the average cost from In-Transit location instead from LA (Please correct my understandings). The funny thing is not happens to all the Transfer Order. Please help us to figure it out and what is causes the error? Do we need to also setup multiple IN-TRANSIT locations? Thanks, [:)] ZEN

Hi Zen, Did you run the Adiust Cost Item Entry Batch job??

What is the cost on the LA -GRN ?

Yes, we run the Adjust Cost Entry every day end. I am sorry Thomas, I don’t get your question. What do you mean by LA -GRN? ZEN

I cannot see it but what is the costing method, and do you use SKU’s?# Do you have average costing by location turned on?

It’s an Average Costing Method. Actually, I attached the records that you can see. Yes, the setup is turn on. ZEN

Sorry, you have average costing per location turned on? Are you saying the outbound and inbound costs are different after all adjustments posted? On version 4?

Steven, Both answers are YES. Version 3.60. ZEN

As it is 3.60 I can probably say with confidence it is an average costing and transfer issue in 3.6 [:D] I have not got access to that version at home but I did the following in 4.0 Created an average cost item with SKU’s and average costing by location turned on. I booked 1 into 1 location at £100 and one into another at £25. I then transfered the £25 item into the £100 location. The average cost at the £25 location became £0.00 and the average cost at the £100 location became £62.50 after the adjust cost item entries routine was run. The costs of the item held through the transfer and correctly adjusted the cost in the new location. Have you checked with Microsoft - it is probably a known 3.60 bug.

Steven, I also did the testing myself and everything works fine. The cost result was came out as expected. Like I said it happens occasionally. I believe there is some situations that trigger the error. I have no idea whether it’s a known issue bug or not. Probably somebody who has the same problem can share the experience to solve this problem. Thanks, ZEN

Hi Zen There were loads of issues with transfer orders in 3.60. Your best bet will be with Microsoft.

Hi Steven, I have reported this issue to our NSC but they haven’t reply me back for weeks. I think they are currently have short Programmer. Mean while, the auditor keep bugging us with this issue. Please somebody help. Thx, ZEN