Question Status

Unanswered
jsc asked a question on 18 Jul 2009 5:34 PM

Hi, I am working with a client that recently installed GP10 AM.  They sell "widgets" on a wholesale and retail basis.  The structure is that they have two separate companies: A and B. All of the inventory is bought into A, but sold out of either A or B.

Two questions:

1.  How much customization (small, medium or large in term of hours) would be required for them to always see only the inventory quantities from company A irrespective of which company they are selling from?  So when they are entering a sales order in B, they must see the inv qty's from A to determine backorder status, etc...

2.  Pricing - they need to be able to have inventory priced on BOTH a fixed amount (for retail sales) and a cost plus % basis (for wholesale customers).  My understanding is that they MUST choose only one type of pricing.  Once again is this a customization that is even possible, and if yes, would it be small, medium or large in terms of effort?

Thanks much for the help, as the two issues above seem to be very significant problems in meeting the client's needs.

JSC

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Frank Hamelly responded on 18 Jul 2009 7:48 PM

JSC,

Are companies A and B separate legal entities?  If so, you're going to run into transfer pricing issues if Company B is selling Company A's assets.

** Please, if this answers your question, mark it as 'Answered' so others experiencing the same will know it resolved your issue. **

Frank E. Hamelly, MCP-GP, MCP-AX, MCITP, MCT, MVP

http://gp2themax.blogspot.com/

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Victoria Yudin responded on 19 Jul 2009 4:39 AM

JSC,

Before trying to customize this, I would recommend seeing if there are products out there that can accomplish what your customer is looking to do.  For intercompany inventory, take a look at MC2's Advanced Intercompany Transactions: http://www.mc2software.com/AITFeatures.aspx.  For pricing, take a look at either Extended pricing within GP or OmniPrice from Rockton: http://rocktonsoftware.com/products.aspx?p=7

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jsc responded on 19 Jul 2009 11:17 AM

Thanks for the replies:

From what I was able to see on the links, none of those will work, but I am not sure:

1.   Intercompany trans - The ability to see the inventory qty's and prices stored in Company A's database need to be transparent to the users.  It is not so much of a transaction issue as it is the modification of the Sales Order transaction forms to always only look at Company A's inventory and pricing, as opposed to Company B's (which will be empty).  Once the Sales Order is placed out of Company B, then all of the transactions need to be recorded to (a) transfer the inventory from A to B, and record the sales / cost of sales in Company B.

2.  Pricing - Extended pricing does not work because we need to have Sales Orders (which are not supported with Extended Pricing), and I was not able to see how to make it work using Extended Pricing, even if we did not use Sales Orders.

3.  The companies are legally separate entities, and we do have our accountant involved regarding the transfer pricing issues.

The above leads me back to customization, and I am really trying to see how big an effort it would be, or if it is even possible for the pricing issue.

JSC

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Victoria Yudin responded on 19 Jul 2009 11:56 AM

Fair enough.  Because of the amount of logic surrounding SOP transaction processing in GP, my gut feeling is that this would be a pretty hefty customization. 

Is this all just needed during Sales Order entry?  If so, perhaps an alternate solution may be to have a separate system (as opposed to GP) for order entry.  Maybe something like SalesPad: http://www.salespad.net/Products/tabid/54/Default.aspx.  Looks like it supports inventory lookup from multiple companies out of the box...not sure about the pricing, but that may also be something customizable within the product.  We don't have anyone using this, but I saw a demo a while ago and it looked really good.

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