Assign Inventory Locations to Divisions

Currently we are able to assign inventory items to divisions, but this creates a problem in case multiple divisions use the same items.

Instead, it would be nice to have Locations assigned to Divisions which would then enable splitting up inventory by Division without creating duplicate items.

Locations also doesn’t have to be “physical” per se, it can also be serve as virtual stock keeping units.

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Two issues:

  1. Divisions may not always be split by location. For example a business may have a Manufacturing division and a Retail division covering many locations.

  2. There would also need to be some mechanism to split the supplier side of the transaction, other wise the inventory may allocate correctly but the corresponding AP will not be allocated correctly.

That’s true but not entirely. Retail sales happen in the showroom (that’s your retail location) and your wholesale takes place in the store (that’s your wholesale location).

The act of restocking your showroom from the stores corresponds to an inventory transfer in manager. You can do that, daily, monthly … whatever.

Even if there’s no physical location, you can create 1 store and as many virtual locations to store the sales and hold negative quantities until a transfer adjustment replenishes the negative quantities.

It’s not perfect but it does the job well enough (I personally haven’t seen a better setup elsewhere) and at least you don’t have to duplicate your inventory items to assign them directly to divisions.

I don’t know exactly how Manager would behave in that situation but I guess these kinds of problems will have to be sorted out as they arise.

If a manufacturing centre or a retail centre serves many locations in a business I wouldn’t assign a division to these centres. So the value of inventory items in these centres will only show in consolidated reports.