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What is the best way to handle vendor consignment inventory in GP 10? Note that this is for a healthcare environment so the inventory will be consumed and not sold (so SOP is not involved)?
Thanks.
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Hi,
When you mentioned another materials mgt system, I have to change my suggestion.
I suggest you interface your binary systems direct to GP AP or GL module, do not use GP inventory anymore, you dont want to duplicate every inventory transactions and complicate things. Quantity, unit cost and warehouses should remain in your Binary, use GP in accounting your AP and GL.
Though my suggestion depends on how I understand your requirement and the information you have provided. A lot of things needs to be discuss still and I could be wrong.
Thanks for the responses. In this case I am working with a hospital so we would be using Binary Stream's Materials Management to record consumption and for the replenishment process (SOP would not be used at all). In speaking with Binary Stream they have been asked about this scenario before and they would be able to modify their product to track the cost of the items while allowing GP to process the transactions at a zero dollar cost. This would allow us to track the cost information but not update the general ledger until the invoice is entered (when the goods are consumed).
Vicky
suggested solution combining Mariano and Richard
additional premise:
you have the control on the stock level and replishment quantity.
unit price doesnot fluctuate more often.
solution:
first delivery create an inventory adjustment e.g. 10 qnty @ 10$ Unit cost into a consignment warehouse.
use the same account in your GL distribution, this will not update you GL but updates your inventory cost and qnty in consignment warehouse.
during consumption, e.g. 5 units you will create an inventory adjusment negative for the quantity consumed. use consumption expense account in your debit and temp liability account in your credit.
ask your supplier to replenish 5 qnty, you have the option to use PO or Receive without PO. use shipment/receiving 5 @ 10$ each then post, debit liability temp acct and credit AP. this will close your liability temp acct in GL and create an AP invoice in your AP subsidiary for you to pay and replenish your stock in inventory.
hi,
in you step 5 SOP invoice this will create AR subsidiary. this trnx will pile up, how will I get rid of this AR oustanding invoices?
Here is one method if YOU are controlling the stocking level:
Set the Order Point and Order Up to Point to the desired stocking level.
Perform Inventory adjustments to record consumption.
Pull the Purchase Advice Report and pay for items used. The report can be modified to show consumption (QOH vs stocking levels).
Adjust if desired the stocking levels. Reprint the purchase advice report and ask the vendor to restock to these levels.
Is your vendor(s) a rack jobber? Do they maintain the stocking levels and replenishment? You may need to simply pay their invoices for the amounts they list. Especially if the consumption is not properly reported.
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