Hello Everyone!I just had my registration two months ago so I'm new to the product and the community.
We have this client who marks up its items when transferring between departments, something that is unique and only now that I have heard of.
Does NAV 2013 or NAV 2013 R2 have this capability? As far as I know, inter-department transfers have no mark up.
Thank you very much! :)
You can create a specific section for the journal, so you can verify where the item movement came from. Another possibility is using a dimension for "mark" it. Any option is better than to modify the standard.
I assume that you mean "transfer at unit cost + markup"... well, no, that is not how the transfer in NAV is intended. Transfers in NAV are always at unit cost. There is special checking in the posting routines to ensure it.
What is possible, though, is to assign the transfer cost and the markup you want to have as Item Charges to the posted transfer shipment. That is supported by NAV. This implies you do the markup calculation by hand, or you make a customization for the markup calculation.
with best regards
Buenas Dias Miguel!
The item transfer would be made thru the Transfer module in InStore Management. Is it possible to have the item marked up once it is transferred?
Gutten Tag, Jens!
Yes, that's how it is. I already looked at the module and it is only on a cost-to-cost transfer basis so there's no mark up on the item.
I'll look into your suggestions then.
Thanks, Jens! :)
additional information: The markup should be posted as a purchase invoice (to another department... are they different permanent establishments/business units?). It might be also possible to post it as revaluation, but I'm not sure if this is a good idea.
It seems your suggestion might work!
I think we may set up an "item" in the item card for the mark ups. What we need to do then is automate the mark ups each time we choose a department as there are different mark up rates for different items and departments.
We also need to look into how the item received by that department will have a new cost before that department transfers it to another department or sells it to a customer. :)
Ah, but the departments are going to be treated as dimensions in NAV though.
Again, the transfers will be processed through the Transfer module in InStore Management. :)
I don't want to be the party pooper, but... Items are not the best idea for this type of process. Items have an inventory, but you don't need it. What you need is to attach the markup to the items moved, i.e. the incoming item ledger entries. An Item Charge should do what you require. Also, Items have a cost value... this can get you into problems, IMO.
And regarding departments as dimensions: For the billing of the markup you would need a customer and a vendor. So, you will need more than this.
- every department needs a dimension code, a customer and a vendor
- the customers and vendors need to have a separate posting group to keep your A/P and A/R clean
- All "department" customers and vendors should have the same payment method, with the payment method being set up with an associated G/L account. This will change the posting logic for the invoices to automatically "paying" the invoices against this account.
This way your markup is recorded as revenue (outgoing dept.), cost (incoming dept.) on the items moved, you have documents on every step of it, and you don't need to do additional clearing because it's no deal where cash has to change hands (i guess).
Nothing to it! I'm simply taking all the replies and help I get. The more replies the better, right? :)
I'll let you know what our team would come up with once I've relayed the replies from you and Miguel on this. I have to say, how our client's company operates is odd yet challenging.
Again, many thanks! ;)
"Mark-up" meaning profit?
Are they using the Transfer Order to transfer between departments? Apart from the IN localization, I do not know any other countries that would have a different price when doing transfers. If you will notice, Transfer Line table does not have any field related to Unit Cost or Unit Price.
Using Intercompany could address this scenario, like PO from IC becomes an SO to the IC partner. This becomes synonymous to "transfer selling" the item to the other department.
Yes, that's correct! Mark Up = Profit.
Using Intercompany could indeed address the issue if we were to treat the departments as company. Given the licensing our client procured this may not pull through, though.
Given the replies to this thread, I guess we'd go with the Transfer module route with customizations thrown in for the price and mark up.
Keep the replies pouring in, though! The more replies the better! Thank you! :)