Effectively managing inventory movement between related entities
Let’s face it, managing intercompany trading relationships and associated accounting requirements can all be tedious, repetitive and time consuming processes. This is even more prevalent in a high transaction volume environment that results in lots of inventory movement between related entities. International and multicurrency considerations can also add complexity to the mix.
How does someone go about streamlining these intercompany processes and reducing the risks of errors? Primarily by eliminating the manual duplication of entries across multiple entities and introducing an electronic transfer of data between the 2 companies’ set of books.
In a Microsoft Dynamics GP environment, this can be accomplished by using Nolan’s Intercompany POP to SOP. Designed for manufacturing and distribution companies that maintain a centralized inventory management system, Nolan’s IC POP SOP provides an automated loop that keeps purchase orders, sales orders, payments and receipts in balance between related entities.
Once an intercompany trading relationship is established, ordering of inventory items is easily initiated in one company with automatic generation of a sales order in the related company. Once the sales order goes through its standard allocation and fulfilment process, its transfer to an invoice automatically triggers the receipt of goods on the initial purchase order. With pre-defined pricing levels and GL account distribution, proper accounting and recognition of these intercompany sales transactions can take place.
By extending Microsoft’s Dynamics GP standard distribution functionality, Nolan’s Intercompany POP to SOP offers a robust solution for effective management of inventory movement between related entities.
By Carole D’Arcy, Senior Consultant with Nolan Business Solutions, an International Microsoft Dynamics GP ISV and NetSuite Provider.