Inventory Transfer to External Branch

Inventory Control Menu -> External Branch Transfers Menu -> Inventory Transfer to External Branch

External Branch transfers occur when equipment is moved from one location to another, but the two locations are running on separate software applications or in separate companies.
e.g. 1 branch in Vancouver, and 1 branch in Toronto.

For other inventory transfer processing features, refer to options outlined in Inventory Transfer Methods Overview.

External Branch Transfers Overview:

With the External Branch processing each branch has its own inventory accounts and each branch is responsible for tracking their own inventory.
In order for the Head Office location to manage the transfers in the company wide books, the same Chart of Accounts, and Product Classes should be used by all external branches.

When equipment is transferred, it is useful to generate 3 copies of the transfer:

1 copy for the FROM Branch, kept for your records
1 copy for the TO Branch, to be sent immediately (and a Pick List goes with the equipment)
1 copy for the Head Office, to be sent immediately
Transfer Posting:
To facilitate the branch transfers, an inter-company inventory clearing account is setup for each Branch in the General Ledger usually as a Liability account.
When equipment is transferred out using Inventory Transfer to External Branch:
  • The product quantity is immediately removed from the inventory count in View Inventory Quantity Changes at the FROM Branch
  • An inventory transfer entry is automatically recorded on the Rental Journal which posts with Daily Close 3.

Example inventory transfer postings:

Rental Inventory is        CREDITED    Acct# 1300     with the original cost
Accum. Depreciation is     DEBITED    Acct# 1301     with the accumulated depreciation
Branch Inventory Clearing  DEBITED     Acct# 2900     with Net inventory transfer

The journal entry shows      Source = Transfer #
                             Reference = XFER TO "branch name"
                             Details = Product #, EXTERNAL TRANSFER

Receipt Posting:
When the inventory is received at the TO Branch, it is entered in External Branch Receipts usually based on the information on the Print External Transfers by Class.
When inventory receipt are entered in External Branch Receipts:

The inventory receipt entry looks like this:

Rental Inventory is         DEBITED    Acct# 1300    with the original cost
Accum. Depreciation is      CREDITED   Acct# 1301    with the accumulated depreciation
Branch Inventory Clearing   CREDITED   Acct# 2900    with Net inventory receipt

The journal entry shows       Source = Transfer #
                              Reference = FROM "branch name"
                              Details = Product #, EXTERNAL RECEIPT

Balanced Transactions for Completed Transfers:
If both branches record the transfer and the receipt, after each branch is consolidated into the Head Office General Ledger, the Branch Inventory Clearing account at the Head Office will net zero.
If it is not zero, then view the details in the clearing account to determine if a receipt is missing.

Refer to Consolidate Summarized G/L Trx's for details on Consolidating the General Ledger on an Oracle database.

All equipment transfers and receipts should be recorded, before the month end depreciation is run. The depreciation information on the Transfer Report is designed to ensure continuity of depreciation, even after the equipment has been transferred to another branch.

Note: The security by division feature as determined by Divisional Restricted Views, does NOT apply to External branch transfers.

Enter the External Branch Transfers being shipped as follows:

TRANSFER #
Accept the next available transfer number as controlled by the Last Used Transactions for RSBX, or enter a preferred transfer number.

A window is provided to view and select from previous transfers as outlined in Transfer Number Search.
Existing transfers can only be viewed as change mode is not permitted, due to the automatic journal entries which accompany a transfer record.


POSTING DATE
Accept today's date or enter the posting date which applies to this inventory transfer.
This date will be used on the inventory transfer transactions that post to the G/L in Daily Close 3.

Date Range Control:
 If the operator does not have the ability to over-ride the current date range, the transfer date will be checked to make sure the date is valid against the date ranges set as acceptable for module RSPM in Date Range Control.


FROM DIVISION
Enter the division that is transferring this inventory or select it from the drop-down list.
This becomes the Out division when the inventory transfer journal entry is posted.

TO COMPANY
Enter the Company Code for the TO Branch, or select the company from the drop-down list as setup in External Branch Transfer Company Codes.
The Company Code determines the inter-company inventory clearing account for the G/L posting.

INTERCO. ACCT #
The inter-company account assigned to the To Company will display for reference only.

TRANSFERRED BY
Accept the current Operator ID, or type in the correct Operator ID.
This operator code is displayed in the Transfer Number Search and prints on the Print External Transfers Report by Class.

TRANSFER NOTES
Use up to 60 characters for any notes on this transfer.
e.g. delivery shipment number, or method shipped, or other authorization.
These print on the Print External Transfers Report by Class and Pick List generated from Print External Transfers.

Transfer Details:
SEQ
A new sequence is generated for each entry to tack the transactions in the transfer database table.

PRODUCT #
Select the rental or sale product to be transferred or select it from the Inventory Search window.

DESCRIPTION
The product description displays.

LOC
Select the location from which the inventory will be transferred from the drop-down list.
The on hand quantity at each location is displayed for reference in this drop-down.

CURRENT QTY
The quantity currently at the selected location will display.
A transfer cannot be for MORE than is currently at this location.

TRANSFER QTY
Enter the quantity to be transferred.

Asset Tag To Transfer:
If the product being transferred is a rental item, a window will automatically open to select a fixed asset tag and capture the appropriate Accumulate Depreciation G/L Account, as follows:
TRANSFER QUANTITY
The total quantity being transferred on this transaction is displayed.
QUANTITY SELECTED
The quantity for which Fixed Asset Tags have been selected is displayed.
Before exiting this window, the Transfer Quantity needs to equal the Quantity selected.

Tag Selection details:

ASSET TAG#
Select the Fixed Asset Tag to be relieved by the transfer quantity from the drop-down list that displays Asset Tags available for this rental product, with the quantity on each tag, and the serial numbers.

QUANTITY
Enter quantity to be transferred from this tag.

ACCOUNT TYPE & ACCOUNT #
The following information for three G/L accounts display:
RENTAL INV: The inventory account is selected according to the Product Class for this product and cannot be changed.

ACCUM DEPN: Window to look up and assign the correct Accumulated Depreciation account that is associated with the Rental Inventory Account displayed as the Rental Inv.

INTERCOMP : The Inter-company Inventory Transfer clearing account, is based on the TO COMPANY CODE selected above and cannot be changed.


AMOUNT & D/C
RENTAL INV: The Original Cost will display as a C - Credit
ACCUM DEPN: The Accumulated Depreciation will display as a D - Debit
INTERCOMP : The Net Transfer amount will display as a D - Debit

Finished?
Click ACCEPT when the require number of tags has been selected, to exit the window and start the next product to transfer.

Serialized Sales Numbers To Transfer:
If the product being transferred is a serialized sales product, a window will automatically open to select the serial numbers, as follows:
XFR QTY
The total quantity being transferred on this transaction is displayed.
SELECTED
The number of Serial number selected is displayed.
Before exiting this window, the Xfr Qty needs to equal the Selected.

Serial Number Selection details:

SERIAL NUMBER
Select the serial numbers from the drop-down list from the serial numbers available at this location.

Note: If the serialized sales item has no serial numbers in the window (i.e. uses "Time of Sale"), the serial numbers must first be added manually in Sales Products.


Finished?
Click ACCEPT when the require number of serial numbers has been selected, to exit the window and start the next product to transfer.

Finished?
When the items to be transferred on this Transfer ticket are completed, click ACCEPT to proceed or CANCEL to abort.

Confirmation:

Select one of the options:
  • Click Process Details to update the product quantity relieving the locations, and to write the transfer journal transaction that will post in the next Daily Close 3.

  • Click Abort External Transfer to cancel this transfer record.
    A Transfer number is "burned", but can be re-assigned manually if required.

Note: Whenever the average cost for a product is changed, use Post Product Average Cost Changes to print an audit report and to generate the G/L postings for the change in the Inventory value.

ACTIONS:
 Additional actions provided by buttons on the Inventory Transfer to External Branch screen include:

Topic Keyword: RSBX01
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