Question

Auto Receive Intercompany Shipments

  • 4 May 2023
  • 3 replies
  • 110 views

Userlevel 1

Does anyone have a BPM they use to automatically create receipts for intercompany shipments immediately after shipment that would be willing to share how they set it up? 

We worked with a consultant today because our finance department is dictating we can’t ship at the end of the month to our other entities because if the receival happens in the next month, the books don’t balance. That does not make very good business sense especially when transit time can be up to 5 days. The consultant told us one of the best practices she has seen was companies writing BPM’s that upon shipment, the intercompany receipt it immediately completed and received into a holding warehouse until the product gets to the location. 

I was hoping someone on here would be willing to share what they have done to get this to work. I am new to writing BPM’s and can’t wrap my head around how to get this written. I am assuming it would take some code that I do not know how to write. If its too big of an ask, we can always hire a third party to do it, but if its fairly simple, I’d like to try to do it ourselves. 

Any help you might be willing to offer is appreciated. 


3 replies

Userlevel 3

As CFO, my preference is to show these as inventory in transit, because that is what it is.

Instead of pretending that they are at either location, simply write a report of inventory in transit to serve as your subledger, similar to stock status or WIP.

Userlevel 1

That would be my preference too but our head accountant is adamant that AP must = AR and there is no except for in transit. 

We do however have 2 entities that are in the same facility so an automated receival would save us time in that particular case. 

Userlevel 1

Not a BPM but it would be easy to write a BAQ to run at the end of the month with the transfers that will be in transit at the end of month. Then do a paste insert to receive them. It will still make it hard for your receiving folks when the physical receipt needs to happen at the other location but only with a small percentage of transfers.

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