Transfer Order Logic

Yahoo Archive
1
We implemented Transfer Orders a couple of years ago and were also
mystified by all the booking entries that they generate. We guessed,
right or wrong, that all the contra stuff was related to Multi-Company
functionality, which we do not use. Anyway, our goal was to get all
the "nonsense" bookings to wash. We are now on Vantage 8.03.403D, but
implemented Transfer Orders on Vantage 6.1).

We set-up a universal/default account for the entries we were not
interested in, specifically: A/P, A/R, Contra A/R, Contra A/P, Contra
Revenue, Contra Asset. We used 1201-00-000 Inventory Clearing
Corp. "Contra COS" required another default account because Vantage
would not allow us to enter an asset account. We also set-up an
Inventory In-transit account for each of our 5 plants which looked like
1220-00-000 Inventory In-Transit to Corporate, 1220-02-000 In-Transit
to California Plant, etc.

The Transfer Definitions for each of our 5 plants are identical with
the following 2 exceptions:

1)the "From Plant In Transit..." account reflects the Division of
the "To Plant" on the Transfer Definition. So if my From Plant is
Division "00" and my To Plant is "02", the "From Plant In Transit..."
account is 1220-02-000.

2) the "Division" on the Consolidation Eliminating Entry Accounts
reflects the Division of the From Plant.

We were successful in getting all the extra bookings to zero themselves
out and we haven't looked back since. Welcome to the world of Transfer
Orders!

Peter Dunbar
2
We'll be staring to use Transfer Order in the near future and I was trying to follow the logic behind it. Here's the setup:

Division GL
FromPlant = 10
ToPlant = 20

Chart GL
Inventory = 1200
In-Transit = 1205
COS = 4010
Contra COS = 4015
Sales = 3000
Contra Sales = 3005
AR Transfer = 1065
Contra AR = 1066
AP Transfer = 2102
Contra AP = 2103

So...we initiate a transfer of a $500 part. When the shipment is "shipped" we see the following GL Activity:

Chart Debit Credit
10-1200-00 500 (Debits Fromplant Inventory)
10-1205-00 500 (Credits Fromplant In Transit Inventory)

Perfect - love it....

Now we receive it and see the following GL Activity

Chart Debit Credit
10-1205-00 500 (Debits Fromplant In Transit Inventory)
20-1200-00 500 (Credits Toplant Inventory)

So far so good, I love it....but then it seems to go a bit nuts, in no particular order (it's all the same transaction):

Chart Debit Credit
00-1065-00 500 (Debit System Transfer AR)
00-1066-00 500 (Credit System Contra AR)
00-2103-00 500 (Debit System Contra AP)
00-4015-00 500 (Credit System Contra COS)
00-3005-00 500 (Debit System Contra Sales)
10-3000-00 500 (Credit Fromplant Sales)
10-4010-00 500 (Debit Fromplant COS)
20-2102-00 500 (Credit Toplant Transfer AP)

I really don't follow the logic here, I'm trying to figure out why the contra accounts & the transfer AR account all go the system level (ignoring the division).

I've been through the help file, through Epicweb and searched these forums, I can't get any full explanation of the above. Any help would be greatly appreciated.

Thanks,
Ken


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