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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Customer Inventory Man...
Small and medium business | Business Central, N...
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Customer Inventory Management in BC after selling the item

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Posted on by MahGah 15,433

Hi

I came a cross a strange business need. Client want to sell and invoice the items to customer then ship it to them. But also client promised customer that will go to their inventory and cycle count the item and if it is under certain level it will replenishment the item. 

Hence, client want to keep the record of customer inventory in client's BC (in their own BC and not customer). I read the below article but cannot figure out 

1) How to sell, ship, and invoice these items then add them to customer location in BC. 

2) How to keep them as zero cost in BC for that location. I mean for each customer I cannot create new item with zero cost. 

3) How to count and reduce the inventory here. 

I appreciate your help 

http://www.olofsimren.com/consignment-inventory/

Categories:
Dynamics 365 Business Central
  • MahGah Profile Picture
    MahGah 15,433 on at
    RE: Customer Inventory Management in BC after selling the item

    Hi yzhums

    Thanks for your help. Usually, the method you have described will work. But in this case client sell the item first and invoice the customer. Than just check their inventory for replenishment. That is my challenge here.

  • MahGah Profile Picture
    MahGah 15,433 on at
    RE: Customer Inventory Management in BC after selling the item

    Thanks Mr Bruvik

    I appreciate it. I will try this and if I run to an issue I will ask for help.

  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 75,883 Super User 2024 Season 2 on at
    RE: Customer Inventory Management in BC after selling the item

    Hi, just add some info.

    I have encountered this need before. Large OEM companies generally have their own warehouse, which are managed by suppliers.

    What we did was just to add them as locations in BC.

    After purchasing to the main location, it is transferred to the customer location. (The inventory keeps a certain amount)

    After each inventory count (such as once a month), create a sales order and request it to the customer.

    Therefore, when moved to the customer location, the inventory still counts with the supplier. After the actual use, create an invoice.

    In this case, the system will be relatively simple to deal with.

    Hope this helps as well.

    Thanks.

    ZHU

  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 993 Super User 2024 Season 1 on at
    RE: Customer Inventory Management in BC after selling the item

    You can read more about the Intercompany functionality here:

    learn.microsoft.com/.../intercompany-manage

    Let me know if you need more info about the setup that you need.

    I have a sample setup in a Sanbox somewhere

  • MahGah Profile Picture
    MahGah 15,433 on at
    RE: Customer Inventory Management in BC after selling the item

    We are running on SaaS (online)

    I am not familiar with IC transactions. Hence, I am missing some points here.

    Can you please point me to the article that describe this step " When you post the invoice in the actual company there will automatically be created (and posted if you like) an purchase invoice in the new company.  No need to to anything extra for that. The only thing you need to do is to make sure the sales invoice is also sent to your actual customer."

    I think that is the part I do not know how to do. I mean I get I can create SO in actual company. But SO is for actual customer in actual company. Then how SO create those transactions. Unless I am creating SO for IC partner (customer that I setup as IC). Sorry if I am not making any sense here.

    I really appreciate your help

  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 993 Super User 2024 Season 1 on at
    RE: Customer Inventory Management in BC after selling the item
    [quote user="MahGah"]

    Inge M. Bruvik

    I love your idea. It is the best idea. Just to make sure I captured it correctly:

    1) Create new company

    2) Create -C items in that company.

    3) Create all customers as IC in actual company

    4) In other company create all customers and link each of them to correct location.

    Now to sell the item

    in actual company create the SO and sell the none C item. But if I ship this in SO inventory will go down. How I can create intercompany transfer order here? I mean I think I am double releveling inventory. But I think I am missing something here. What am I missing here?

    Thanks for your help

    [/quote]

    2) You do not really need to create them as C-Items. You can just copy the items from the actual company. Then you can also report to your customer their actual cost.

    4) When you post the invoice in the actual company there will automatically be created (and posted if you like) an purchase invoice in the new company.  No need to to anything extra for that. The only thing you need to do is to make sure the sales invoice is also sent to your actual customer.

    Are you running BC Online or On-Prem?

  • MahGah Profile Picture
    MahGah 15,433 on at
    RE: Customer Inventory Management in BC after selling the item

    NorthW

    I love your idea. It is the best idea. Just to make sure I captured it correctly:

    1) Create new company

    2) Create -C items in that company.

    3) Create all customers as IC in actual company

    4) In other company create all customers and link each of them to correct location.

    Now to sell the item

    in actual company create the SO and sell the none C item. But if I ship this in SO inventory will go down. How I can create intercompany transfer order here? I mean I think I am double releveling inventory. But I think I am missing something here. What am I missing here?

    Thanks for your help

  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 993 Super User 2024 Season 1 on at
    RE: Customer Inventory Management in BC after selling the item

    The -C idea will work with some customization i guess. But your item register and the location handling will be a bit messy.

    What if you define 1 extra company as i suggested and then have one location per customer in that company instead of putting the extra locations in the company you sell for.

    A cleaner solution i think and you can define 1500 IC partners so they automatically post to the correct location.

    A bit of setup you need to do - but i think all of that can be automated with some small customization.

    And then you can still do replenishment per location in the new company.

  • MahGah Profile Picture
    MahGah 15,433 on at
    RE: Customer Inventory Management in BC after selling the item

    Hi Mr Bruvik NorthW

    Thanks for your detailed response. I love the idea. But my challenge is they have more than 1500 customers and hence I may need to create more than 1500 companies.

    Do you think it is possible to create two items. One actual and one with -C at the end with "inventory value zero" on. Then for the -C create SKU in different locations (which each location is customer)? Then sell and ship the actual item. Then add those items in customer location using Item Journal and  -C item?

    I am honestly struggle with this request as well.

    Thanks for your help here

  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 993 Super User 2024 Season 1 on at
    RE: Customer Inventory Management in BC after selling the item

    I think what i would do in your case is to create a new company in Business Central and let the new company represent the customer.

    So when you sell to your customer you both send and invoice to the customer and make a inter company transaction to the new "customer company in BC".

    Then the customer company will be updated with all the items sold to the customer. Then you can do the cycle counting in the "customer company" and use the replenishment functionality there to send an inter company purchase order back to your clients company.

    Trying to achieve this in one Business Central company with out messing up both your accounting and your item costing is close to impossible i think.

    But there is no cost for creating a new BC company and let that represent your customers warehouse and define inter company transaction flow between them.

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