Hi! I wanted to know if anyone has implemented the concepts of Vendor managed inventory(VMI) in Navision, if so, what was the extent of customisation that had to be carried out… Awaiting your repsonses… Regards Jyothi Mohan
A/ You will have to do some customization. b/ Not much. The extent depends on the direct, i.e. a/ is your client (as the Vendor) managing their customer’s inventory, or b/ is you client (as customer) having inventory managed by their vendor. a/ is easier, you basically create locations for each customer, and work from there. As the customer sells goods, you invoice the items out of that location. The big probelm here, is Transfers, these apear to be written with the intent of making them as functionaly different form a sales rder as humanly possible, so much functionality you may expect, just isn’t there. b/ The issue here will be how you manage the value of that inventory. 1/ You could bring it in at zero, and not track the value, 2/ you could bring it in at actual value, track with either FIFO or lot numbers (if 3.60) and then make sure it hits of balance sheet G/L accoutns or 3/ you can customize item cost tracking to track the cost without posting to the G/L. PS I have done all the above scenarious, they all work, it just depends on the clients actuall needs, but since you haven’t said what that is, I can’t help much more. Maybe you can let us in on the secret.
Hi David! Thanks for your message.That was a general query[:)], with no client in particular and I was asking in terms of option b/. Regards Jyothi Mohan
quote:
Originally posted by David Singleton
A/ You will have to do some customization. b/ Not much. The extent depends on the direct, i.e. a/ is your client (as the Vendor) managing their customer’s inventory, or b/ is you client (as customer) having inventory managed by their vendor. a/ is easier, you basically create locations for each customer, and work from there. As the customer sells goods, you invoice the items out of that location. The big probelm here, is Transfers, these apear to be written with the intent of making them as functionaly different form a sales rder as humanly possible, so much functionality you may expect, just isn’t there. b/ The issue here will be how you manage the value of that inventory. 1/ You could bring it in at zero, and not track the value, 2/ you could bring it in at actual value, track with either FIFO or lot numbers (if 3.60) and then make sure it hits of balance sheet G/L accoutns or 3/ you can customize item cost tracking to track the cost without posting to the G/L. PS I have done all the above scenarious, they all work, it just depends on the clients actuall needs, but since you haven’t said what that is, I can’t help much more. Maybe you can let us in on the secret.
quote:
a/ is easier, you basically create locations for each customer, and work from there. As the customer sells goods, you invoice the items out of that location. The big probelm here, is Transfers, these apear to be written with the intent of making them as functionaly different form a sales rder as humanly possible, so much functionality you may expect, just isn’t there.
Originally posted by David Singleton - 2003 May 29 : 17:50:09
david. can we regard a/ you mentioned as consignment sales?
Hi PH David has been away from this forum since March 10th. You may never get an answer to this question from him. I would say you could consider them as consignment sales, but that is my opinion and not his [:D]
Hi PH, From the accounting perspective, a/ can be interpreted in 2 ways a. The ‘sales’ and the ‘cost of goods’ undertaken on behalf of the third party (consignor) will be recorded in the books of accounts (of the consignee) as well as the commision earned. It will be termed as consignment sales and cost. Here the ownership of the goods remain with the consignor until they are sold. The consignee comes into the picture only when he sells the goods and realises the amount. b. The Invoicing will be done on behalf of the third party and only the commission earned will be recorded in the books of accounts a. is considered as consignment whereas b. is considered as indent sales. Cheers,