[Francis Schnyder]

Dear community,
We are using intercompany processes between our different country companies.
We wonder (and still could’t figure out) where the goods are during the transfer from one company to the other, which means between shipping posting in company A and receipt posting in company B.
There are the reports “Intercompany goods in transit transactions” and “Intercompany goods in transit totals” which show the goods in transit. But the goods don’t exist in any stock. Legally, with delivery terms “Ex Works”, they belong to the receiving company as soon as they have been sent out. But they are not visible neither in a warehouse nor on the financial account “Goods in stock”. From our point of view, intercompany goods in transit should be visible in a transit warehouse. 
Can anybody tell us either in which stock the goods are or should be, or what is wrong in our reasoning? 
Many thanks in advance!

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Francis Schnyder
D365 Global Application Manager SCM
SIGVARIS Group
Winterthur, Switzerland
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[Richard Wehmeyer]

Shipping removes the inventory and the value from the shipping company.
Receiving adds inventory and value to the receiving company.?
If shipping and receiving are not done simultaneously then there is no inventory as neither company recognizes the inventory.  In turn, each company does not recognize financial ownership of the goods.  This is not dissimilar from when a vendor ships product

If this is not acceptable there are a few approaches you could take:

Financial – set posting shipments to an account recognized as “[receiving company]-Shipped not invoiced” in the shipping company.  This can be recognized as an account owned by the receiving company and will contain ownership of goods in transit

Physical and financial- Set a receiving warehouse and turn on automatic receipt.  This shows physical and financial ownership of the goods in the receiving company in a sort of transit warehouse.  The real receiving process would then require a transfer out of the quarantine warehouse into stock.

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Richard Wehmeyer
PlayCore
Chattanooga TN
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[Francis Schnyder]

Hi Richard,
Thanks a lot for your input. Makes sense to me. I will forward to our finance and logistics responsables.

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Francis Schnyder
D365 Global Application Manager SCM
SIGVARIS Group
Winterthur, Switzerland
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[Ted Jillett]

?Francis;
We were having the same issues here, and came up with a solution, which may or may not work for you. This was actually recommended by our finance team. All items that are out of our control are received and reside in an (In-Transit) inventory location in the ending warehouse. Only when there is confirmation of physical receipt of goods will they then be transferred into a physical inventory location.

Don’t know if this will work for you or not, but seemed to solve many questions on where is the inventory from an operations, inventory, and financial prospective.

Good Luck.
Ted Jillett

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Ted Jillett
Business Systems Analyst, Manufacturing AX
Insulet Corporation
Acton MA
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[Andrew Lencsak]

Similar to Ted’s suggestion, you could register the Intercompany PO lines into the receiving warehouse/location. This will allow them to show in stock, however, if you have only registered them rather than posted the product receipt, there is no Financial date and no effect on the Ledger account since you don’t own the inventory yet. So you could use the separate Transit warehouse/location to segregate the inventory until it physically arrives. Then post the product receipt once the goods arrive giving the PO a physical date and General ledger transaction.

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Andrew Lencsak
Solution Architect
eBECS Limited
Atlanta GA
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[Francis Schnyder]

Many thanks to all of you for your very helpful input!

We would like to go for the way you all suggest: 
When the goods are shipped from the sending company, they are automatically received in a dedicated “transit” warehouse of the receiving company. As soon as the goods arrive physically, the receiving company transfers them from the transit warehouse to stock.

However, there is the requirement from our finance department that as long as the goods are in the “transit” warehouse, they also financially should be on a dedicated ledger account. Only when they are transferred to the normal stock, they should be visible on the standard ledger account for received goods.

How can we make this sure? Is it even possible?

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Francis Schnyder
D365 Global Application Manager SCM
SIGVARIS Group
Winterthur, Switzerland
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