Inter - Company material Transfer......

Dear friends, One of our client’s has three different business units and carrying out all the transactions at each business unit. WIth the existing System, they are generating financial reports, for external reporting, per Business Unit and are able to generate consolidated report at the Company Level. In Navision , We are planning to create three companies with two of them as subsidiaries of the remaining Company. However, one of the problems what we forsee at this point is Transfer of Material from one company location to another company location. We feel creating intercompany purchase orders/sales order may be the one of the solutions. However, we request can anybody suggest a better way of dealing the intercompany transfers ( Considering financial implications)? Regards, Raja Sekhar Venumal

Hi Raja, If you are using intercompany Transfers (in AD), then the 3 companies must be set up as 3 seperate Locations under one single company. Fairly sure intercompany transfers will not function except within the same company. Most of the reporting allows segregation by location and where it doesn’t, you can invent new reports. Hope this helps, Bill

Hi, I did such function one time. It was quite complicated. I created additional document Inter-Company Transfer. This document posts Negative Adjustment for Shipment in one company and Positive Adjustment for receipt in another. The main problem was with Costing. This company wanted to use FIFO cost in the inter-company transfer. So we had to modify Adjust-Cost batch job.