Hi,
We have the following situation we are having a tough time to solve.
We purchase a liquid sauce in 1000L bulk containers from one supplier and ship that to a co-packer where it is bottled into 250ml & 500ml bottles and extra 1000L bulk inventory is stored for various time frames.
- One purchase order is created for the bulk 1000L raw goods
- Then at time of bottling another purchase order is created for the bottled products as needed. This purchase order has the cost for the bottles and the cost for the bottling itself.
- The product is then shipped to our 3pl warehouse where it is received
Up to now we have handled this by adding the cost of the raw goods to the overhead cost in business central and then doing a negative inventory adjustment on the used raw goods. Those raw goods are inventoried in a unique location in business central for the co-packer
Example We create a purchase order for the raw goods of 3000L, once it arrives at the co-packer we create a purchase order to them for 2000 500ml bottles and then do an inventory adjustment - 1000L on the raw goods. the 2000 bottles are shipped to our 3pl warehouse where they are received and we are left with 1000L raw goods that we warehouse at the co-packer
This of course creates some accounting problems and we would like to do this in a "correct" way.
We are in the midst of setting up an integration with our 3pl warehouse for purchase orders (today handled manually), as most of our goods are simply purchased from the manufacturer and received in by the 3pl warehouse this is a straight forward integration but the question is how to handle for the small number of items where we purchase the raw goods and send them to a co-packer.
In order to keep things simple we would like to be able to continue to create a purchase order for the bottled product that the 3pl warehouse handles via the integration as it would any other "standard" item but the question is how to then properly handle the raw goods.
Any help greatly appreciated.
Thanks
Joe
