Situation: We have a new BP which is a National Account with about 30 stores. They want to order & receive merchandise from our network of Master Distributors (MDs), but they want us to invoice them. The shipments we make to our MDs will include merchandise for their other customers - merchandise will not be segregated since this National Account BP is buying the same products as the MDs regular customers. Once the MDs ship to & receive proof of delivery from the National Account's stores, the MDs will fax us the confirmation - at which point we will invoice the National Account for the merchandise. We will need to credit the MDs for the same # of units as well as give them a handling fee.

Problem:
We don't want the system to count the sale twice - once to the MD and once to the National Account. We would like COGS to reflect the true sale to the National Account. We also don't want to have to credit the MDs each time they ship to the National Account because the bank does not like to see a lot of credits on our books (line of credit is affected). We don't want to have to do Consignment because the merchandise won't be segregated at the MDs.

We considered the direct delivery process, but since no inventory movement is done at the invoicing level to the National Account, there is no entry for COGS.

Does anyone have a similar situation where they been able to have accounting & inventory flow correctly? We are on 5.0b.

Thanks,
Shirley

:confused:

Dear Shirley,

The correct flow actually is achieved using the crediting process to your MDs, but you don't want this. Another way to do it would be to buy the goods back from your MDs using purchase orders (BTW, direct delivery is a combo of purchase order - in your case to your MDs - and sales order - to your national account - . So in using direct delivery, you are actually issuing purchase order to your MDs anyway). Still thinking on other way to achieve this

Rgds,
Paul