Transfer Order Posting

Dear all,

i have a small problem in posting of transfer order. let me explain it with a scenario.

Item A which has a unit cost of Rs 100 is transferred from Blue Location to Green Location with a structure which includes charges of Rs 100. when i do transfer shipmet the created GL entries are

Inventory - Rs -100

Inventory Adjmt - Rs 100

Inventory - Rs 100

Inventory Adjmt- Rs -100

Inventory - Rs 100

Charges - Rs -100

when i post the transfer receipt then the GL entries created are

Inventory - Rs 100

Inventory Adjmt - Rs -100

Inventory - Rs -100

Inventory Adjmt- Rs 100

Inventory - Rs -100

Charges - Rs 100

By this the charges which have credited in the first case is get debited in the second case. so the net change in the charges a/c is zero. so can you explain me this scenario whether it is correct or should i make any other configuration.

thanks in advance

Regards,

Srikanth

Transfer orders don’t support Item charges. How do you are making transfers? Using Journals?

What is the purpose of the charge element? A transfer order is designed to move stock internally within your business between location. You can affect the average cost by location which will ultimately alter teh cost depending upon the costing method. Essentially the cost of the item moves.

I guess item charges are related to costs during internal transfers. Legally you can’t add item charges to item cost during internal transfers (Portuguese law, I don’t know others).

But you can receive an invoice from a logistics company of items transfer and post it to a G/L account. I guess this is the objective.

thanks for ur reply…

for one of my client Octroi(Tax ) is applicable which is existing in one of the states in india. so during stock transfer from one location to another location they have to pay octroi and move the items. so in this case i took octroi as charges and assigned in the structure but its getting the above scenario

After making transfer order use revaluation journal to increase items costs, reflecting item charges.
You could also make transfer order and create a purchase order only with item charges applying to those items.

Actually it might also be used to move items to and from a subcontractor’s plant. At least so does the Italian localized application.