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[Lewis Rosenberg]

?Hello Everyone,

We have a shipping and billing challenge.

First, we are running #NAV2013R2 and our finished goods location is directed put-away and pick. 

Today we pick a sales order, register the whse pick, and then usually in the same day post the whse shipment and invoice the order.

Our desired future state is to create a whse shipment and pick as we do today.  Pick the order and register the pick.
We then want to ship the order, but move the inventory into a IN-TRANSIT location rather than have it leave the inventory in NAV.
We want to deplete the inventory and invoice the order when the customer received it.

I don’t see any way to incorporate a transfer order into our process and I would prefer not to add steps to the process.
The goal is to maintain ownership of the inventory until it is received by the customer.

We could perhaps register the pick and keep inventory in the shipping bin until it is time to invoice the order.  Upon customer receipt we could then post the shipment and invoice, however, it sounds like our finance team would like to be able to identify in-transit inventory vs. inventory that has been picked but not yet left the warehouse.

Is anyone else doing this?

???

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Lewis Rosenberg
IT Manager
Mars Fishcare
Chalfont PA
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BCUG/NAVUG All-Star
BCUG/NAVUG Board of Advisors, Chairperson
BCUG/NAVUG Programming Committee

Twitter: @RosenbergL
LinkedIn: https://www.linkedin.com/in/rosenbergl/
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[Bob Stahr]

Lewis,
Your instinct to want to use a stock transfer object in NAV to track inventory that has left your warehouse, but not yet arrived at your customer is understandable, and if there is data/reporting about what’s going on there that needs to be tracking would be good.  However, we have learned in adding automated steps (and exceptions for certain orders) it is better to minimize the objects created when just an additional status or a preference BIT field added would meet the business requirements. So,we have found simpler ways to keep everything on the SO that you might consider.

We have, similarly to your requirements, had some orders that when they are shipped should not be invoiced at ship time, a rule we just added is for Credit Card orders — when the customer places and e-comm order and gets a PRE-AUTH for $100 on the Credit card, then we have to drop part of the order from one partner and do a second shipment from our own warehouse, we were creating two separate invoices for the two+ shipments and two partial invoices and CC captures for say $25 and $75 — and to make things worse with sales tax and rounding for the two different invoices usually 24.97 and 75.01, so even when you added the two invoices together it often would not match up to the original $ amount that was PRE-AUTHED on the customers Credit card.    To solve this problem we considered first, an additional STATUS on the sales order that would go from “OPEN” to “RELEASED” to ~”PARTIALLY SHIPPED” to show a status that the order had begun shipping but was not done yet, and that the order was not yet invoiced.
We settled on actually adding two Bit fields, one o the sales order that is “Invoice on Shipment” (Yes/No) .When  set to “No” and our shipping application is posting shipments, the flag on the SO allows the shipment to be posted to the SO, but not to be INVOICED when the shipment is posted.
A second bit field was added at the “E commerce site configuration level” where we set processing rules for a number of things — you might have this at a Customer Card level in your environment — this second flag, or check box in the UI is “Invoice on Last Shipment Only”.(Yes/No)
The two fields set the preference on a given order, or eCommerce site integration to delay invoicing the customer until “the right time” for a given order.
For CC orders, the second
This was added to a “long line” of preference fields that control the business logic for specific e-commerce customers and how their orders are processed:
Screen Shot of E-comm settings screen
In retrospect, I think adding the BIT flag has worked better than adding either another object, like a PO being released to the drop shipper vendor or and additional STATUS to the SO status, because they are exceptions for some orders.   If all orders MUST go through a Shipped, in transit not yet delivered to customer step in order processing, it sounds like you could just add one more status of “SHIPPED” or   “IN TRANSIT” after “RELEASED” status before the SO’s are invoiced.

Either way you go, you could also add a daily /or hourly API call to UPS or whom ever the carrier was to see the tracking number go “Delivered” and automate the Invoice of the SO as soon that the carrier shows delivered status of the tracking number. — that would be sweet.
 

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Bob Stahr
Director ITS
Sunrise Identity
Bellevue WA
PRESENTING, 2018 Summit Session: PPM80 – We are Super Admins! Wednesday, October 17 2:30 PM – 3:30 PM
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[Lewis Rosenberg]

Thanks Bob,  You provided me with some things to think about.?

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Lewis Rosenberg
IT Manager
Mars Fishcare
Chalfont PA
———————————————–
BCUG/NAVUG All-Star
BCUG/NAVUG Board of Advisors, Chairperson
BCUG/NAVUG Programming Committee

Twitter: @RosenbergL
LinkedIn: https://www.linkedin.com/in/rosenbergl/
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[Amanda Mayer]

Lewis,

What is driving the desire to change this handling of the inventory and invoicing? If you are attempting to match revenue recognition to INCO terms (i.e. your inventory until received), I’d leave the SO shipped not invoiced until received and utilize the COGS Interim account to capture that value on the Balance Sheet instead of the Income Statement. If Expected Cost is turned on, it’ll Debit the COGS Interim Account and Credit the Inventory Account. By identifying the COGS Interim on the BS, you can still show the value of the inventory on your BS, track orders that are Shipped not Invoiced, but leave the warehouse functionality and changes completely out of it.

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Amanda Mayer
New View Strategies
Milwaukee WI
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[Lewis Rosenberg]

?Thanks, Amanda. We discussed that and I think that is what we’ll ultimately have to do.  I think to do anything with the physical flow of the inventory (Inventory > In Transit > Customer Receipt) will result in a complex enhancement.  We might be able to put some simpler controls in place as Bob suggested if we feel it is necessary.  I think we’re talking about using t the Requested Delivery Date field to invoice from so we should be able to batch invoice daily using that field.

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Lewis Rosenberg
IT Manager
Mars Fishcare
Chalfont PA
———————————————–
BCUG/NAVUG All-Star
BCUG/NAVUG Board of Advisors, Chairperson
BCUG/NAVUG Programming Committee

Twitter: @RosenbergL
LinkedIn: https://www.linkedin.com/in/rosenbergl/
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