Dynamics Community Forum Thread Details

How to record goods in transit (on water) when importing

Hi All,

I've been trying to establish the best way record in transit quantities for overseas suppliers based on purchase orders and AP invoices. Once they ship the goods from their warehouse they send a shipping notice with AP invoice. We need to enter the AP Invoice for payment and account for in transit goods (once on board ownership changes). I can create a warehouse for in-transit stock and receipt into it, however not sure how this affect availability as when you key in a sales order, system would check orders or stock for main warehouse. Perhaps there is a better option

Thanks

Hello Anita75,

Thank you for posting on the Microsoft Dynamics 365 Business Central Forum.

The method you have described has been a method used from what I have seen. A Location Code for the ONBOARD-SHIP that is loaded and ownership is taken is where we complete the receipt so Invoicing of the Items can then take place. Overseas Vendros would have this OnBoard-Ship Location as the default. Then, a Transfer Order may be established or an Item Reclassification Journal processed to move the goods from the ONBOARD-SHIP Location to a local Location. The use of Stockkeeping Units (SKUs) to fulfill Main from OnBoard-Ship Location or an interim Local Location could work, although it depends on how extensive the inventory portfolio that uses overseas suppliers . If there are only a select set of Items that are shipped from overseas, you may want to have separate Locations to manage these transactions, but then transfer to the MAIN Corporate Warehouse Location as fulfilled from the intermediate receiving Location. My thought here is that you have OnBoard-Ship for the initial ownership transfer and invoicing. The warehouse would then receive the goods temporarily into DOCK Location through a Transfer Order to allow for receipt and inspection of the shipped goods from these overseas Vendors/suppliers. Then, fulfill the MAIN Location from DOCK after inspection takes place. The SKUs would be setup with Transfer for these Locations - ONBOARD/SHIP fulfills DOCK Location which fulfills MAIN. In that way, for Local Vendors, MAIN is the primary Location directly. For overseas Vendors, ONBOARD/SHIP is the default Location and fulfills DOCK, so that you can manage the additional Lead Time to make sure MAIN is fulfilled with the extended time to bring the goods from overseas.

The other option would be to use Prepayment Invoices to record the billing up front. Then, Receive the goods into the Main warehouse when the goods arrive and invoice the items at that time, which will then be offset by the Prepayment Invoice billed up front.

These are at least some options to consider. We'll see if any other customers or partners have feedback, as well. There are definitely various ways to manage the process.

Thank you.

Best Regards,

Tom

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