Using Cross-Facility Orders
Designed for companies with multiple retail locations, Cross-Facility Orders allow items to be shipped from one Facility but invoiced/sold out of another. When a Cross-facility Order Type is selected, the system will use the Facility indicated in the "Invoicing Facility" field on the Misc 1 tab of the Sales Order header to determine the Facility in which the order will be invoiced or sold from. The Facility indicated in the "Facility" field on the General tab represents the shipping Facility.
Configuration
Cross-Facility Orders require the same items as detailed in Entering Sales Orders. In addition, there are three main items a company must consider prior to using Cross-Facility Orders, discussed below in the Process section.
Process
Configuring System Options
How will the Invoicing facility be determined or selected on the Cross-facility order?
There are three options: (1) the default Invoicing Facility assigned to the Ship-to, (2) if set, the Facility that the User creating the order is restricted to, or (3) if a user is not restricted, they may select any active Facility as the Invoicing Facility on the Misc 1 tab of the Cross-facility order.
What markup percent and options will be set?
- In Accounting > Options > Accounts Receivable tab - "Recognize Revenue on Cross-Facility Transfer" flag; If checked, the Shipping Facility on Cross-facility Sales Orders will be credited for the Cost of Goods Sold plus any Inter-company Markup Factors as defined on the Item Master record and the invoicing Facility record.
- In Inventory > Maintenance > Facilities - "IC Xfer Markup Type" and "Markup Factor"; The IC Xfer Markup Type is used to determine markup costs for Cross-Facility Orders invoiced from this Facility. The Markup Factor defines the percentage or dollar amount that will be applied when Cross-Facility Orders are shipped. If a Markup amount is entered on both the Item Master and Facility, both of these amounts will be added to the order price when setting the cost of the inventory in the shipping Facility.
- In Inventory > Item Master > General 2 tab - "IC Transfer Markup %" flag; Defines the percentage or dollar amount that will be added when Cross-Facility Orders are shipped depending on the Markup Type selected on the Sales tab of the invoicing Facility. If a Markup Factor is specified on the invoicing Facility record, that Markup Factor will be added to the Markup Factor in this field when setting the cost of inventory in the shipping Facility.
- In Facilities > Sales tab and Sales > Options > Shipping tab - "Transfer Cost Expression"; Option to define an expression used on Inter-Company Transfers and Cross Facility Orders to calculate and add a freight cost into a Lot's value. For Cross Facility Orders, the valuation occurs upon shipment. The field on Facilities takes priority over Sales Options. Additional information in available in the "Transfer Cost Expression" field description via Sales > Option > Shipping tab.
If markup percent and options are being used, what GL accounts will be charged?
- In-Transit Account - Required on the appropriate Item Master records. Asset account to be charged during the time when materials are in transit from one Facility to another via Inter-Company Transfer or Cross-Facility Sales Orders. The default for new items is set in the "In-Transit" field in Accounting > Options > Accounts Receivable tab.
- Cross-Facility Markup Account - Required only if including Markups on Cross-Facility Orders. Defines the account, usually a Revenue account, to be credited on Cross-Facility Sales Orders when the invoicing Facility gives a markup on the inventory shipped from the shipping Facility. Set in Accounting > Options > Accounts Receivable tab.
- Facility Elimination Account - Only required if choosing to recognize revenue on the transfer. Asset account charged to balance transactions between divisions. A net credit in the account indicates that the division is owed by other divisions. A net debit in the account indicates that the division owes other divisions. Also used when paying one division's payables with another division's cash, or receiving cash in on division while clearing another division's receivables. Set in Accounting > Options > Accounts Receivable tab.
- Note: The Facility Relationships table via Sales > Maintenance > Facility Relationships offers the ability to specify facility-specific elimination credit and debit accounts.
Creating the Sales Order
- Cross-facility Order processing begins with the selection of the appropriate Bill-to and Ship-to Customers. If the Ship-to Customer selected contains an Invoicing Facility, the Order type will automatically be set to "Cross-facility" and the appropriate Invoicing Facility will be defaulted in the "Invoicing Facility" field on the Misc 1 tab. If the selected Ship-to Customer does not contain an Invoicing Facility, users with appropriate access may select the "Cross-facility" Order Type.
- At this point, the selection of the appropriate shipping and invoicing Facilities depend on whether or not the user is restricted to a specific Facility. For restricted users, once a "Cross-facility" Order Type is selected, the "Facility" box on the General tab will open to allow for selection of the Facility where items will be shipped from and the "Invoicing Facility" on the Misc 1 tab will be set to the user's restricted Facility. For non-restricted users, the "Facility" box will always be open for selection. Non-restricted users will also need to select the correct invoicing Facility on the Misc 1 tab. Additional information regarding Restrictions is available via System > Maintenance > User Restrictions.
Shipping and invoicing the Order
Cross-Facility orders are shipped and invoiced the same as normal Sales Orders. For information on how to do this, refer to the Shipping Sales Orders and Invoicing Sales Orders pages.
Notes:
- Cross-Facility orders can only be shipped by a user with no Facility Restriction.
- During invoicing, the revenue will be posted according to System > Options and Master Data setup, discussed previously.
- A sample posting of the GL accounts used in the Cross-Facility process is available via DEACOM Basics > Sample Accounting Postings.
Processing credits cards using Cross-Facility Sales Orders
Cross-facility orders allow items to be shipped from one Facility but sold in another. When a Cross-Facility Order Type is selected, the system will use the Facility indicated in the "Invoicing Facility" field on the Misc 1 tab of the Sales Order header to determine in which Facility the order will be invoiced. The Facility indicated in the "Facility" field on the General tab represents the Shipping Facility.