Hello!
could you please help me in the following situation.
I have a trading company. There are 2 warehouses where the goods are located: Warehouse 1, where the goods are delivered from the supplier.
Warehouse 2, where the goods are delivered from warehouse 1 and then sold to the customer.
when the item is transferred from warehouse 1 to warehouse 2, its cost increases by delivery cost. So basically I have the same inventory stored on 2 warehouses at a different cost.
MY question is how can I account in Manager this cost increase?
thanks!
You can’t have the “same” inventory stored at both warehouses.
If the supplier delivers 10 units of Product A to warehouse 1 and you then transfer that inventory to warehouse 2, then that inventory can only exists in warehouse 2.
In effect warehouse 1 needs to transfer the inventory to warehouse 2 with a “Freight-In” component.
Firstly, is this internal delivery cost an actual expense or is it an arbitrary amount.
You could have different “Articles” in warehouse 1 and 2 and use production orders to change from one to the other, adding whatever extra costs you need on the production order
I thoughts about this, but doing this I would need to book some unreal sales or inventory w/f
thanks! I’ll try to use your idea.
regarding your question- this is actual delivery expenses that I incurred when transfer inventory from 1 to 2 warehouse
Yes, and some “unreal” purchases which would contra off the “unreal” sales.
It is all do able, but is it worth the effort.