How to apply shipping costs to an Inventory Transfer in SAP Business One?

[former_member380634]

We have a warehouse location in Taiwan and we are shipping our own product from it to our warehouse in the USA. It is not a simple -5,000 items from Taiwan and +5,000 items in the US. Somehow we need to account for the shipping cost from Taiwan to the USA in our per unit cost in our inventory in the USA. The SAP method of Inventory Transfer does not include the extra cost of shipping from one warehouse to another. Anyone know how to do this?

Thank you.

[former_member380634]

Thank you all for your quick responses. When Inventory is Revalued as some are suggesting, what GL accounts should be used. I assume one side is a debit to the asset Inventory.

[kvbalakumar]

Hi numbersguy ,

If both the warehouses are in same database, then you can use any of the following options:

1. Transfer the goods, using Inventory Transfer. Then make a Inventory Revaluation document to increase the cost at Receiving warehouse (hope you activated "Item cost per warehouse" !)

2. As sandesh.shinde mentioned, you can make Sales and Purchase Transactions, provided you should have a Customer and Vendor for these transactions.

3. You can use, Goods Receipt and Goods Issue transactions where while making Goods Receipt document you can define the Unit Price (by including the Shipping cost).

My preferred-option is to go with Inventory Revaluation!

Regards,

Bala

[former_member380634]

You wrote:

Transfer the goods, using Inventory Transfer. Then make a Inventory Revaluation document to increase the cost at Receiving warehouse (hope you activated "Item cost per warehouse" !)

Where do I go in SAP Business One setup to see if this is activated?

[kvbalakumar]

Item cost per warehouse is not mandatory to reevaluate an item.

Anyway, the setting is available at Company Details -> Initialization tab

[former_member225732]

Dear Paul Schultz,

For proper Value calculation you can do Purchase and Sales Transactions accordingly.

Best Regards,

Sandesh Shinde

[former_member380634]

Can you send me an example of how this can be done considering the fact the that inventory in Taiwan is our and we are not really buying more of it just moving some from TW to our USA warehouse for selling. pschultz@afcinc.org

[msundararaja_perumal]

Do you maintain the US & Taiwan warehouse in the same database.

[former_member380634]

Yes, we maintain the items in one inventory database but use two separate warehouse codes.